Exxon Mobil was formed on November 30, 1999 by the merge of Exxon (formerly Standard Oil Company of New Jersey) and Mobil (formerly the Standard Oil Company of New York). This merged made ExxonMobil became the world’s 10th largest company by revenue, the seventh largest company publicly traded company by market capitalization and ranked ninth globally in the Forbes Global 2000 list in 2016. In 2014, ExxonMobil announced as the second most profitable company in the Fortune 500.
Exxon Mobil is one of the world’s largest integrated oil companies engaging in oil and gas exploration, production, supply, transportation, and marketing.
Researchers raised a reasonable question about the succeed of ExxonMobil. ExxonMobil was the largest non-government owned company in the oil and gas industry where they contributed three percent of the world’s oil and nearly two percent of the world’s total energy. They have evolved from a regional corporation to the largest trader of petroleum enterprise in the world. ExxonMobil has 38 oil refineries in 21 countries that make them become the biggest refinery of the world with 6.3 million barrels per day.
Since the announcement about the merged, Exxon shares increased 1.4% in the S&P 500 and 21% in the DJIA.
In 2005, ExxonMobil became the world’s largest publicly held corporation based on the revenue. In 2007, ExxonMobil corporation’s revenue reached $404.552 billion with a net income around $40.61 billion. After one year, in 2008, ExxonMobil announced a revenue of $459.58 billion and net income of $45.22 billion which is one of the biggest annual profit of the U.S. corporate history.
the company has a comparative advantage over its competitor due to economies of scale that help in reducing the production costs and technological advantage that helps in reducing these costs through optimal drilling and pipeline used in transporting their products. Exxon also spends a lot on research and development to manage the energy resources and reduce negative impact on the environment.
Studies show that a majority of mergers fail to enhance shareholder value