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XOM for XTO - A Trip Down Memory Lane
Published Oct 30, 2020

XOM Market Capitalization Drop & the XTO Deal

Earlier this week, Exxon Mobil's ($XOM), market capitalization dropped below that of Chevron $CVX for the first time ever this week. Although XOM has since bounced back above CVX, there is no doubt XOM - and all of Energy - have had a tough run. Indeed, XOM was once the largest stock in the market measured by market capitalization. Today its market capitalization is 7% of $AAPL, the largest market capitalization company in the world.
At its peak in 2014, XOM market capitalization was roughly $425 billion versus $149 billion today, a 65% drop (Enterprise Value has dropped 50%)
XOM has faced similar challenges as other energy companies over the last decade - adjusting to the supply and cost impact of shale, volatile commodity prices, demand concerns and Energy investor fatigue, among other items, but its ill-timed acquisition of XTO Energy Inc. was a self-own. The deal was announced in December 2009.
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