Mobile

Latoya Price

Mgmt 460

Prof. Collett

Research Paper

ExxonMobil or Exxon Mobil Corporation is an American gas and oil corporation. It was formed in 1999 emerging from two major oil companies Exxon and Mobil. Both Exxon and Mobil were descendants of the John D Rockefeller Corporation. In 1911, the Supreme Court of the United States made standard Oil split into thirty-four companies. At that time Exxon was called Jersey Standard, and Mobile was called Socony.

Over the next couple of decades both of these companies grew substantially. Jersey Standard (Exxon) produced a 50 % share in Humble Oil and Refining Company, and Socony (Mobil) purchased 45 % interest in Magnolia Petroleum Company. It was in 1998, that Exxon and Mobil decided to become one company. They signed a $737 billion dollar agreement to merge and be called ExxonMobil Corporation. They were considered the largest company on the planet. This merge was completed in November 30, 1999. It was also said to be the largest merger in U.S. History. In 2000, the company sold refinery in Benicia, California and 340 Exxon-branded stations to Valero. In 2005 due to rising oil prices Exxon Mobil surpassed General Electric which at the time was the largest corporation. By the end of 2005 their profits were around 36 billion dollars in annual income. This was a 42% increase from the previous year.

In 2005, ExxonMobil surpassed Wal-Mart as the world's largest publicly held corporation when measured by revenue, although Wal-Mart remained the largest by number of employees. ExxonMobil's $340 billion revenues in 2005 were a 25.5 percent increase over their 2004 revenues. ExxonMobil has committed roughly 0.4% of their profits (0.04% of total revenue) towards researching alternative energy, significantly less than other leading oil companies.

In 2006, Wal-Mart recaptured the lead with revenues of $348.7 billion against ExxonMobil's $335.1. ExxonMobil continues to lead the world in both profits ($39.5 billion in 2006) and market value ($460.43 billion). As the cost per gallon of gasoline has continued to rise, there is criticism of the petroleum industry in general and ExxonMobil in particular, about their profitability, although their profit margin of 10% remains well under other sectors such as pharmaceuticals and banking.

Financial Data

Financial Data USD millions[15]

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