To some investors, Exxon Mobil (NYSE:XOM) may not look like a promising stock. The company may struggle in the short term as it ramps up investments, which could drag its earnings and free cash flows. But it will likely bounce back in the long term as the invebstments begin to pay off. Additionally, Exxon Mobil offers an attractive dividend, which may grow by 5% in subsequent years. The company may also launch a major share buyback program. Therefore, I believe investors can get decent returns from Exxon Mobil stock in the long run. The recent weakness in the stock can be a buying opportunity.
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The company’s operational performance hasn’t been great. It has found it difficult to maintain production at 4 million boe per day. In fact, the company produced less than 4 million boe per day in each of the last four quarters. In the first quarter of 2018, Exxon Mobil’s output clocked in at 3.89 million boe per day, down from 4.15 million boe per day in the corresponding period last year.
