Exxon Mobil has what Texans would call a “high class problem”—too much money and a richly-valued stock.
Cash is piling up for all oil majors, but none as prolifically as Exxon. That adds pressure on the oil giant to spend it wisely. The company said Friday that its net income was $11.4 billion in the first quarter, handily beating Wall Street estimates. Lower oil and natural-gas prices dragged upstream earnings down compared with the fourth quarter, but higher production volume offset that slightly. Earnings in all of its segments were higher than analyst expectations except for its chemicals segment, where industry margins remain below the 10-year range. Exxon generated $11.4 billion worth of free cash flow in the quarter and its cash balance grew to $32.7 billion, the highest since 2008.
