Exxon shares hit an all-time high

On Friday, October 21, Exxon Mobil Corp shares reached a new high. The reason is the oil price surge. As a consequence, analysts raised their forecasts on the long-run earnings of the largest U.S. oil corporation.

Exxon Mobil holds the first positions among the major oil companies in terms of profit indicators this year. During the pandemic, the corporation doubled its oil investments while the cost of energy hit a twenty-year low. European oil giants cut their expenses, focusing on renewable energy projects. 

The market rally in 2020 acted as a vindication for Exxon CEO Darren Woods to invest in oil. Its value has fallen dramatically at that time. Woods said the company wasn’t trying to compete with other industry players pursuing solar and wind power.

Exxon's strategy included proper cash flow management that turned out to be the right corporate choice. The company continues to do what it's good at. This is reported by Brian Mulberry, portfolio manager at research firm Zacks Investment Management.