Exxon Mobil Corporation ( XOM Quick Quote XOM - Free Report) won shareholders’ support for its energy transition strategies after receiving maximum votes against initiatives related to accelerating emission reduction, per a report by Reuters.
Energy companies have been under pressure amid the growing urgency to curb climate change. Nevertheless, this year has been a game-changer as major oil producers convinced investors with their proposals to lower carbon emissions. The instance can be attributed to concerns over the security of energy supplies and fuel prices overshadowing environmental challenges.
ExxonMobil shareholders disapproved a resolution submitted by the activist group, Follow This, urging rapid measures to curb climate change. In a preliminary voting session, only 28% shareholders supported the proposal to set and publish medium- and long-term targets to reduce emissions from ExxonMobil’s operations and energy products and reduce hydrocarbon sales.
ExxonMobil is actively investing in hydrocarbon production to prevent an energy crisis and the rising prices for consumers. The company’s directors previously suggested shareholders to vote against Follow This’ climate proposal as it believes scope 3 targets are not feasible to manage emissions.
Although ExxonMobil’s operational strategy received investors’ support, environmentalists scored a victory as shareholders demanded a better climate data analysis. It seeks an audited report evaluating the impact of the zero-carbon transition on the company’s finances.
The results imply a significant win for both investors and the world and a step-change in ensuring company accounts match climate rhetoric. ExxonMobil shareholders also supported the company’s executive compensation program.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Shares of ExxonMobil have outperformed the
industry in the past six months. The stock has gained 59.8% compared with the industry’s 44.5% growth. Image Source: Zacks Investment Research Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
Investors interested in the
energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here . Suncor Energy ( SU Quick Quote SU - Free Report) is Canada's premier integrated energy company. In the first quarter, the company distributed C$601 billion in dividends and paid out C$827 million in share repurchases.
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At the March-end quarter, cash and cash equivalents were $50.6 million, while long-term net debt outstanding amounted to $801.2 million. Centennial had a net debt to capitalization of 22.4%. Notably, CDEV’s debt-to-total capital ratio has persistently been lower than the industry from the last year, reflecting lower debt exposure. This can provide it with financial flexibility for growth projects.