address the BIG/RELEVANT financial decisions/facts the companie EXXON have made
ID: 1227610 • Letter: A
Question
address the BIG/RELEVANT financial decisions/facts the companie EXXON have made IN THE PAST 5 YEARS and coment on them.
for example: Exxon's issue with several directors possibly engaging in insider trading and two more
from CREDIBLE (i.e. New York times, Harvard Business Review) websites/news pages. In addition, take a look at the impact its had on the companies value and how it's fluctuated throughout the years.
And lastly, provide an overview of your companies stock price: past and present.(please include source)
Explanation / Answer
Exxon Mobile is the world's largest multinational oil and gas corporation situated in America. The headquarter is situated in Texas, United States. It is a well-known fossil fuel company worldwide. Early in 1990s, the company was using finance to conceal the science around climatic change. Exxel corporation was climate proofing its own facilities to try to avoid future of global warming, which its own scientists knew were unavoidable.
In the last year, the CEO of the company at shareholder meeting discussed about the changing climate and unplesant weather. He said that the world has to deal with such weather conditions sooner, thus, he considered of adopting new technologies to tackle such inclement weather conditions around the globe. The company also considered upon carbon prices, determining to increase the price range which would not cost company's development. Reserves will be still be recoverable. Putting a price on carbon may come up as the right investment decision.
Exxon's business plan is the intense problem. The company makes a huge amount of investment in questing for new hydrocarbons. Due to jump in oil prices, the capital spending was cut by almost 12% in 2015 and almost 25% in 2016. To bring up new projects and hydrocarbons, in 2015, the company was spending million dollars everyday. In 2016, the company is still spending billion dollars a year.
Back in 2009, the company bought XTO Energy (a company that specialize in the art of extracting gas from shale). In today's scenario, the Exxel corporation is known as the leading corporation in the oil and gas industry in America and a leader in natural gas market around the globe. Over the last 5 years, the company has made huge investments in introducing new technologies and searching for new hydrocarbons, in recovering oil and gas. Due to this, the company has positioned behind its competitors.
Seeing the downfall, the appropriate business strategy would be to reduce its exploration budget and focusing on the present oil fields on which the company has access into. To bring back shares and value in the stock market, the company should use the cash flow. The financial plan should be prepared keeping in view the following principles:
1. The company should adapt a simple financial structure capable of being managed easily.
2. The financial plan must be formulated and conceived by the management keeping in view the long-term needs of the corporation.
3. The management must look after the future requirements of capital for the business.
4. Accurate forecast must be made regarding the future scale of operations of the company.
5. The company should neither be starved of funds nor should have unnecessary spare funds.
6. The financial plan should keep in view the requirements of funds for contingencies likely to arise.
7. The financial plan should have a degree of flexibility also. Flexibility is helpful in making the changes or revising the plan according to pressure of circumstances with minimum possible delay. LIquidity must be adequate as it can act as a shock absorber.
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