This Energy Dividend Stock Just Slashed 2,000 Jobs. Should You Sell Shares Here?

Core Insights - The oil industry is experiencing significant changes, including production cuts and layoffs, with ExxonMobil planning to cut 2,000 jobs, about 3 to 4% of its workforce [1] Financial Performance - ExxonMobil reported earnings of $7.1 billion last quarter, with shareholder returns totaling $9.2 billion, despite facing declining oil prices and increased market consolidation [2][7] - The company generated $11.5 billion in cash flow from operating activities and $5.4 billion in free cash flow, indicating strong operational efficiency [7] Market Conditions - November WTI crude prices have dropped to a four-month low, while Brent crude is trading below $66, as global oil supplies continue to rise [2] - OPEC+ is considering a supply increase of 500,000 barrels per day, which could further pressure the oil market [2] Shareholder Returns - ExxonMobil's dividend remains attractive, with a forward annual payout of $3.96 per share, yielding 3.47% [4] - The company returned $9.2 billion to investors in the last quarter, including $4.3 billion in dividends and $5.0 billion in share repurchases [8] Stock Performance - Year-to-date, ExxonMobil has gained 3.71%, but its 52-week performance shows a decline of 8.20%, closing at $111.53 recently [5] - The company has a market value of $480.7 billion, with a forward P/E ratio of 17.06, indicating a premium valuation compared to the sector median of 12.72 [6]