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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts
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To: Jacob Snyder who wrote (30652)7/15/2021 1:00:04 PM
From: robert b furman4 Recommendations

Recommended By
ajtj99
Bocor
candsrr
Jacob Snyder

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I have a large position in XOM already and it has been harder to get CVX on a dip of late.

I really like both, but XOM got hammered more. They got the boot out of the Dow and got a lot of bad press for the ESG director chairs.

That so far has made XOM the better value,

CVX has the stronger balance sheet AND actually increased their dividend through the pandemic. Thus a lower yield due to the stronger balance sheet. Both are Dividend Aristocrats, however XOM has not bumped their dividend for over a year. I think they might just bump it a bit this quarter and maintain the Aristocrat status. I'm of the thought that they have 8 quarters in which to make the bump to maintain the status.

Their last dividend increase to 87 cents happened on 5/10/2019. If they can keep that status (I'm not certain how that works) this quarter will surely be their last opportunity. Not sure on that at all.

I actually like XOM better for their plastics and chemical business. All of their domestic refineries are located on the Gulf of Mexico and are co-located with their own pipelines, steam crackers and joint venture plastics fabs with Sabic ( Saudi Arabia basic industries).

XOM has a huge holding in the Delaware portion of the Permian. Many thousands of acres that are contiguous and their plan of Cube drilling is state of the art and built with scale that will assure very low cost of shale oil.

Lastly their Guyana findings are huge and getting even bigger with exploratory drilling. They have a very excellent future of providing upstream reserves, fossil fuel to the US and Mexico midstreams, and exporting chemicals and plastics (their science of which has many patents and loyal customers) to the entire world.

With ESG influence, XOM will sell off their very wide global footprint and in a way come home to the America's which are far safer, while easily exporting products from the Gulf of Mexico.

I'm somewhat biased as I have had a marathon running best friend who worked for XOM since he was 18. They sponsored his college and he is now retired.

XOM is just such a solid company, that they one of the few companies that has fully funded their pensions. Over the years of running 50-70 miles together a week, he would talk about XOM's projects. They plan on low prices, and they plan on survival more than any other company I know of.

His employee stock ownership program was his greatest asset and it kept him comfortable his entire life - even 2020.

His confidence has held steady over the 35 plus years I've known him and that is a comfort for me personally as well.

I now have accumulated so much XOM, I need to diversify, even though the CVX dividend is a bit less. 6% on CVX is a very solid (best balance sheet of all the oil supers on a global basis) opportunity to me.

When things go heck, a fortress balance sheet is a reliable great comfort to me.

Hope that helps.

Bob
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