Exxonmobil Case Study

Improved Essays
Show More
ExxonMobil Corporation is one of the world’s largest oil companies. Their worldwide operations consist of four major divisions including Upstream, Downstream, Chemical, and Natural Gas and Power Marketing divisions. The upstream division consists of capturing all resource types such as a combination of oil and gas projects (“Learn about ExxonMobil’s upstream operations,” n.d.). The downstream division consists of refining and distributing products from crude oil and other segments such as fuels and lubricants (“Learn about downstream operations at ExxonMobil,” n.d.). The chemical division deals with products such as packaging materials, plastic bottles, solvents, and a countless array of goods (“Learn about ExxonMobil Chemical,” n.d.). The natural gas and power marketing division is just what it sounds like. This division promotes all ExxonMobil products worldwide and is charged with growing the company (“Learn about Natural Gas and Power Marketing at ExxonMobil,” n.d.).
Any business decision within each division affects the entire company in many areas including their weighted average cost of capital. The cost of capital has a major influence over a company’s operations and profitability (Easley & O’Hara, 2004, pg. 1553). One way that companies can influence their cost of capital is “by affecting the precision and quantity of information available to …show more content…
286). There are various benefits to using WACC including any interest payments associated with the debt is tax-deductible (Beech & Thayser, 2015, pg. 30). However, When ExxonMobil acquired XTO Energy in 2009 for $41 billion, it was acquired by a combination of preferred stock and common stock (“Exxon Mobil Corporation and XTO Energy Inc. Announce Agreement | ExxonMobil News Releases,”

Related Documents

  • Improved Essays

    Enron Pipelines Case Study
    • 198 Words
    • 1 Pages

    Enron Pipelines Case Study

    In the beginning of the 80’s, business between gas producers and pipelines were made through “take-or-pay” contracts, in which pipelines “agreed either to purchase a predetermined quantity at a given price or be liable to pay the equivalent amount in case of failure to honor that contract”; this price was basically fixed during the life of the contract but can be adjusted with inflation. Since the pipelines where tied to contracts, they used the same model with their clients and issued similar contracts that assured a long-term stability for their business. Enron was founded in 1985 by Kenneth Lay through a merge between two natural gas pipeline companies: Houston Natural Gas and Omaha-based Internorth. The result of the merge put Enron as…

    • 198 Words
    • 1 Pages
    Improved Essays
    Read More
  • Improved Essays

    Dakota Access Pipeline Case Study
    • 687 Words
    • 3 Pages

    Dakota Access Pipeline Case Study

    The Dakota Access Pipeline is a 1168-mile crude oil pipeline crossing North Dakota to Illinois. The Standing Rock Sioux Tribe is a federally recognized American Indian indigenous community that has a reservation in North and South Dakota, which has asked for an injunction of the construction of the pipeline, arguing that the construction and the operation of the pipeline threatens the Tribe’s environmental and economic well-being, as well as damaging and destroying sites that has great historic, religious and cultural significance to the Tribe. The Tribe brings forth the case on the basis that the U.S. Army Corps of Engineers has abdicated its statutory responsibility to ensure that the construction and operation of the pipeline do not harm historically and culturally significant sites. One authorization allows the construction of the pipeline underneath Lake Oahe which is approximately half a mile upstream of the Tribe’s reservation, and another authorization allows the pipeline to discharge into waters at multiple locations in the Tribe’s ancestral lands. US District Judge James E. Boasberg, however, says the tribe failed to show that it would suffer injury from the Dakota Access Pipeline and wrote…

    • 687 Words
    • 3 Pages
    Improved Essays
    Read More
  • Great Essays

    Dakota Access Pipeline Case Study
    • 1359 Words
    • 6 Pages

    Dakota Access Pipeline Case Study

    Introduction Recently Dakota Access pipeline is running the headlines. Native American tribes and their partners, drove by the Standing Rock Sioux, have been challenging the Dakota Access pipeline, a venture that would transport oil from the Bakken oil fields in North Dakota and Montana over the Plains to Illinois. The nonconformists, numbering in the thousands and including individuals from several distinct tribes, contend that finishing the pipeline would profane hereditary grounds, undermine the water supply, and unjustifiably trouble the Standing Rock Sioux tribe, which is probably not going to profit by any financial advancement that goes with the venture. Energy Transfer Partners, the enterprise behind the pipeline, recommends the venture…

    • 1359 Words
    • 6 Pages
    Great Essays
    Read More
  • Decent Essays

    Case Study: The Dakota Access Pipeline
    • 194 Words
    • 1 Pages

    Case Study: The Dakota Access Pipeline

    The Dakota Access Pipeline (DAPL) is a pipeline that was designed to transport oil 1200 miles from Bakken, North Dakota to central Illinois. However, representatives of more than 200 hundred Indian tribes, who call themselves water protectors, are protesting the DAPL. The protesters feel the pipeline could threaten sacred lands and Indian burial grounds near the Standing Rock Sioux reservation. The DAPL was originally planned to pass near the state’s capital of Bismarck.…

    • 194 Words
    • 1 Pages
    Decent Essays
    Read More
  • Improved Essays

    Bp Oil Spill Case Study
    • 942 Words
    • 4 Pages

    Bp Oil Spill Case Study

    FACTORS The BP oil spill directly affected the health of the environment in very harmful ways. In an account of the environmental losses regarding the BP oil spill, a famous writer for the Washington Post, Kevin Nance (2015), illustrates a reflection of the consequences in the wake of this disaster: “We remember the giant oil slick burning on the water, blackening the beaches, clogging the marshlands, choking and killing the fish and wildlife.” Many forms of wildlife suffered throughout this highly preventable incident, ruining fragile ecosystems permanently, despite the endless efforts of engineers and environmental specialists. Even 5 years after this spill, the consequences are still prevalent and largely noticeable.…

    • 942 Words
    • 4 Pages
    Improved Essays
    Read More
  • Improved Essays

    The Oil Boom In Oklahoma
    • 702 Words
    • 3 Pages

    The Oil Boom In Oklahoma

    The influx of population led to Oklahoma Territory to join with Indian Territory to become a State in 1907. It is in this climate of hopeful settlers and subdued Indian tribes that the Oil Boom would occur. Although some students will have gaps in the basic knowledge of Oklahoma history, it is important to give a broad review of key aspects of the beginning of the rise of oil and natural gas of the 20th and 21st century. This is to include the rise in the demand of oil during World War I and increasing exploration in the supply of oil and natural gas throughout Oklahoma. Additionally, oil and natural gas are the biggest industry in Oklahoma, which includes the refinement and production of petroleum products that are not just gasoline or diesel fuel.…

    • 702 Words
    • 3 Pages
    Improved Essays
    Read More
  • Improved Essays

    Case Study Graincorp
    • 1472 Words
    • 6 Pages

    Case Study Graincorp

    5.2. Valuation Input Weighted Average Cost of Capital (WACC) would serve as one of the valuation input for this two-stage DCF model. WACC itself explain…

    • 1472 Words
    • 6 Pages
    Improved Essays
    Read More
  • Improved Essays

    Exxon Mobil Corporation: The Case Of Oil Spills
    • 834 Words
    • 4 Pages

    Exxon Mobil Corporation: The Case Of Oil Spills

    On March 24, 1989, one of the worst recorded oil spills occurred in Prince William Sound, Alaska (Seitel, 2011, p.100). A 987-foot tanker from Exxon Mobil Corp., the Exxon Valdez, spilled 260,000 barrels of oil after the intoxicated ship captain “ran aground on a reef 25 miles southwest of the port of Valdez” (Seitel, 2011, p.101). The oil spill damaged over 1,300 square miles of coast line and caused the death of various sea life, including over 4,000 Alaskan sea otters (Seitel, 2012, p.101). Exxon Mobil’s public relations approach to the crisis received criticism and the mistake affected the company nearly twenty years later.…

    • 834 Words
    • 4 Pages
    Improved Essays
    Read More
  • Improved Essays

    Case Study: The Keystone XL Pipeline
    • 894 Words
    • 4 Pages

    Case Study: The Keystone XL Pipeline

    The Keystone XL Pipeline is the proposed last segment of the greater Keystone Pipeline project owned by TransCanada which would run from Hardisty, Alberta (in Canada) to Steele City, Nebraska. The proposed pipeline would carry oil sands from Canada to refineries on the Gulf Coast (Cama and Wilson 14).This pipeline would utilize a bitumen-harvesting process which is more environmentally damaging and less efficient than the tradition oil drilling process. Additionally, the pipeline has been controversial due to the environmental hazards tin its operation (Issitt). One of the major groups of protestors to the Keystone Pipeline are Native American Tribes including the Northern Arapaho Tribe, Yankton Sioux Tribe, and Blackfeet tribe. Their feelings…

    • 894 Words
    • 4 Pages
    Improved Essays
    Read More
  • Improved Essays

    Case Study: GE International, Inc.
    • 732 Words
    • 3 Pages

    Case Study: GE International, Inc.

    GE International, Inc.(GEII) and CSC (Computer System Consultant) are two computer based companies. I represent CSC who received a contract opportunity from GEII to reprogram their computers with new software and update to the latest version. Various requirements from both the sides were discussed and iterated. However, after conferring with the senior manager of GEII, CSC finds that there are budget conflicts. This case study will show how the negotiation between GEII and CSC brings up new ways of accomplishing an agreement for the budget conflict.…

    • 732 Words
    • 3 Pages
    Improved Essays
    Read More
  • Great Essays

    Pacific Oil Company Case Study
    • 1661 Words
    • 7 Pages

    Pacific Oil Company Case Study

    Fontaine and Gaudin did not really object successfully or forcefully to the hardball tactics employed by Hauptmann and Zinnser. However, they were correct in noting the extreme importance of this contract for Pacific Oil, and some contract with Reliant, even a bad one, is likely better than no contract at all. Even so, Fontaine and Gaudin were not nearly forceful enough, and should have noted that they were making significant concessions already and were unwilling to go further. Hauptmann and Zinnser were using hardball tactics, and their style can thus be described as competitive.…

    • 1661 Words
    • 7 Pages
    Great Essays
    Read More
  • Great Essays

    Case Analysis: Tactics Of The Pacific Oil Company
    • 1557 Words
    • 7 Pages

    Case Analysis: Tactics Of The Pacific Oil Company

    In 1979, the Pacific Oil Company began its relationship with the Reliant Corporation, an association of immense consequence for both organizations. Lewicki chronicled this case in Lewicki, Saunders, and Barry (2010, pp. 582-609). Two multinational industrial giants, these companies had much to gain through a contract for the sale of vinyl chloride monomer from the Pacific Oil Company (or simply Pacific) to the Reliant Corporation (or simply Reliant). When representatives from the companies went to renegotiate the contract in 1984, a series of arduous deliberations started that would last for two years and culminated in an impasse for Pacific’s management.…

    • 1557 Words
    • 7 Pages
    Great Essays
    Read More
  • Superior Essays

    Exxon Mobil Porter's Five Forces Analysis
    • 2906 Words
    • 12 Pages

    Exxon Mobil Porter's Five Forces Analysis

    As a largest oil & gas company in the world with approximate 2015 revenues of $259 billion, ExxonMobil operates in three market segments: upstream, downstream and chemicals. ExxonMobil's mission is to be the premier petroleum and petrochemical company in the world 7. To deliver on that mission requires each of the three market segments, upstream, downstream and chemical, to be premier among their competition. Overall Corporate Strategy With relentless attention to the operational excellence, safe, reliable, efficient operations and reducing the risk by applying the highest operational standards…

    • 2906 Words
    • 12 Pages
    Superior Essays
    Read More
  • Decent Essays

    Case Analysis Of Exxon Mobil
    • 768 Words
    • 4 Pages

    Case Analysis Of Exxon Mobil

    ExxonMobil has expanded its horizon across the globe with established large extracting and refining low cost facilities in more than 17 countries like Indonesia, Brazil, Europe and Asian markets. Due to its size and strength the company is able to drive away the smaller companies by producing more volume at a fairly lower cost per unit The volume of oil production are carried out through specialized machines, highly skilled labor which is virtually impossible for small and startup companies to mimic. Specially, the integration between Exxon 's refineries and chemical manufacturing facilities is an advantage that no one can replicate. Approximately 13 of Exxon 's refineries totaling 3.4 mmbbl/d, or 63% of its capacity, are joint refining and chemical…

    • 768 Words
    • 4 Pages
    Decent Essays
    Read More
  • Improved Essays

    Cost Accounting Essay
    • 1292 Words
    • 6 Pages

    Cost Accounting Essay

    The use of accounting in the business field to measure an entity in many aspects regarding financial information is crucial in modern day. Tracking how a business obtain, spends, and invest their financial assets are key indicators for not only external users such as investors and creditors, but internal users such as management departments. To plan for future endeavors, one must understand their present capabilities. Through extensive research, we can establish why cost accounting is important to the success of the firm, various methods of cost accounting, and how they are used.…

    • 1292 Words
    • 6 Pages
    Improved Essays
    Read More

Related Topics

Ready To Get Started?
Discover
Company
Follow
©2024 Cram.com
Privacy Policy |  About Ads |  Site Map |  Advertise  | 
  • Cookie Settings