Exxon Mobil: Prepare For A Potential $90 Oil Price Scenario

Envision ResearchInvesting Group LeaderFollow5ShareSavePlay(10min)Comment(1)SummaryExxon Mobil remains solid despite FQ4 earnings unevenness.FQ4 results kept showing declining topline amid pressured oil pricing, but new catalysts could shift the outlook.Geopolitical risks in Iran, low U.S. oil inventories, and ongoing SPR (Strategic Petroleum Reserve) refilling may drive oil prices higher, supporting XOM’s profit potential.Every $1 increase in oil price can yield ~$0.25 EPS improvement for XOM, a significant upside if oil approaches $90/barrel.Valuation risk persists with XOM trading at a 22x P/E versus a 15.8x historical average, but is well balanced by oil price recovery potential.Looking for a portfolio of ideas like this one? Members of Envision Early Retirement get exclusive access to our subscriber-only portfolios. Learn More » Lanier/iStock Unreleased via Getty Images XOM stock: FQ4 earnings report and geopolitical uncertainties I last covered Exxon Mobil Corporation (XOM) on Jan 14 with an article titled “Exxon Mobil: A Solid Hold Even If Venezuela Is Uninvestable”. The articleThis article was written byEnvision Research20.05K FollowersFollowEnvision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.