Alger Growth & Income Fund on Exxon Mobil Corporation
Thesis
Exxon Mobil gives the fund exposure to a large integrated energy company with oil and gas production, refining and chemicals operations. The company is the leading producer in the Permian Basin, operates a highly productive offshore development in Guyana and has pursued a multiyear structural cost-reduction program. Shares fell with crude prices as U.S.-Iran diplomatic progress removed much of the wartime supply premium and reduced the prospect of a near-term commodity-price earnings tailwind.
“It is the leading producer in the Permian Basin and operates one of the industry's most productive offshore developments in Guyana”
Key risks
- Lower crude prices as geopolitical supply risk fades