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Exxon Mobil: Valuation Limits Upside

Oil majors do not have a good track record of mega-projects execution but what differentiate Exxon Mobil (NYSE:XOM) from many of its peers is its disciplined approach and the fact that the company has already completed major chunk of its spend on megaprojects. Today the company is reaping fruits of its disciplined investment with mega projects contributing to higher unit margins and capex falling year-over-year. Yes,the sharp decline in oil prices will mask some of the underlying improvement, but still XOM with its strong balance sheet and resilient earnings remains one of the most stable stocks in the current downturn. However, I believe the valuation fully reflects these positive…