XOM – Market expectations are for a positive Uniform ROA inflection, but management may be concerned about operating expenses, emission reduction, and liquidity

• Exxon Mobil Corporation (XOM:USA) currently trades at a discount relative to UAFRS-based (Uniform) assets, with a 0.8x Uniform P/B. Even at these levels, the market is pricing in expectations for profitability to inflect positively, but management may be concerned about reducing expenses, executing their emission reduction plans, and their current liquidity position
  
• Specifically, management may lack confidence in their ability to further reduce operating expenses, execute their new emission reduction plans, and continue expanding their carbon capture initiatives. Furthermore, they may have concerns about the oil and gas pricing environment, the continued impact of the pandemic on their business operations, and their current liquidity position. Moreover, management may lack confidence in their ability to deploy new lower-emitting energy technologies, capitalize on clean energy product opportunities, and secure advantageous investments