Been offline for a couple days and had to go back and review. Curious but do you know what point I was trying to make as you mentioned in your previous post. Also you only commented on half the sentence about people complaining about the highs, but you ignored the part about also the lows.
Also I did not ignore dividends. In 2021 Exxon paid .87 per share. Less than 1 dollar. So unless you have 10s of thousands of shares the dividend is also not getting an average person rich.
PS. What years are the low years that we are supposed to feel bad for the oil companies?
You never got it which is why I called you a snob. I never complained (or cried) about the price of premium. I referenced a shell owned company raising certain prices in a time when gas is already high. It was a corporate reference, not a complaint which was your natural assumption about people.
FYI. The EPA estimate is also based on a per gallon markup of .75 cents which is higher than the standard .70 in Houston and much higher than many other parts of the country where markups can be as low as .30 per gallon for premium. It seems to have an agenda. Other than the Shell owned stations of Timewise, I have not seen anyplace that has a .75 markup or higher on premium or talked with any on other car forums that have referenced that high.
That was per quarter. Not for the full year. Exxon paid a dividend of $3.49/share in 2021. Exxon averaged ~$60/share in 2021 so thatâs a dividend yield of nearly 6%. Thatâs really substantial and shouldnât be ignored.
2020 was rough.
I donât want you or anyone else to feel sorry for the industry. I want people to not complain about the booms if they donât care about the busts. Itâs a cyclical industry.
Man, there have been a lot of rough years, honestly. Companies seem to be taking a little different approach now, but Iâve said that before. Reorgs and downsizing seems happen more often than not, and there were a ton of bankruptcies even before 2020.
If you bought XOM in 2020 when it dropped close to $33, your dividend would be 10%+
Of course, they were losing billions so you had to have a strong faith in the ability of XOM to recover. Since Iâve owned them since 1979, not a problem buying more.
Now they are doing buybacks and increasing dividends. Theyâve stayed ahead of inflation.
It stands going back to my original comment in reply to Red80âs âyou know funds for average peopleâs retirementsâ - I still contend the average person is not getting rich from the oil boom. The only people truly benefiting heavily are the oil companies execs, large stock holderâs and select others (Saudi royalty for example).
Even with a good dividend of $3.49, if the average person owns 1000 shares, that it is only $3490 in their account. Not rich. Not to mention I doubt many average people have single company shares. Average people usually might have IRA and 401Ks only, that are controlled in a fund, of which Exxon or Shell may be one of 100-200 other companies. Again, not like the oil company alone is making the average person rich.
Agree 2020 was a loss year for Exxon. Per this page, that is their only lose year out of the last 10 including 2015 and 2016. Granted only $7 billion in net profit is rough for anybody (tongue in cheek). Adding up all 10 years more than makes up for 2020. 2012 alone doubles profit over the losses from 2020.
Agree, recognizing good with bad is important, but not much bad with the oil companies that balances out where they could do good. Last I read was OPEC refusing to raise production because they like the high profits. Plus we have not even gotten into tax benefits and property benefits for the oil companies at federal or local levels (tax payer money).
A very complex topic that can be viewed from many different perspectives. Even when oil companies do bad, they impact others by causing down economies in many cases with their layoffs, so when the people are suffering along with the oil companies, not always much sympathy there either. More so when oil companies do well, but the people suffer higher gas prices combined with a period where few are seeing higher paychecks. All from an average person perspective which is not the people making 6 figure incomes and nice full retirement accounts.
The thing thatâs different about Exxon is that theyâre fully integrated and can make money on refining when the price of oil drops. 2020 was bad because all of their businesses suffered. At the same time, that diversification does limit their upside, at times. Historically, they havenât seen the share price swings that others have, and theyâve maintained the dividends.
Texas benefits from higher oil prices, even when it pinches the pocketbook. It pays for a good chunk of our infrastructure needs, especially in producing counties, and it has a huge impact on overall business health. To me, thatâs the upside of high fuel prices for most people moreso than investment opportunities.
Having lived in Texas most of my life, I see the same thing with the local environment when oil is high. Also the impact when oil is low on everything beyond just the direct oil companies.
