Engine No. 1 Activist Presentation Deck
Not just a climate issue - a valuation issue for all long-term
investors
●
The market ascribes a higher
growth multiple to companies
positioned to capture value in
a decarbonizing world, and a
declining terminal value and
increased cost of capital to
ExxonMobil and peers who are
poorly positioned for the future
Major decisions at the
Company - from capital
allocation to diversification to
compensation - are still driven
by a long-term view the market
is increasingly rejecting
• While the cyclical nature of
demand continues to create
short-term investment
opportunities, the longer-term
risk is clear
3.0x
2.5x
2.0x
1.5x
Beh
1.0x
0.5x
P/B Multiples
"Tesla is a bet on the long term and
Exxon is a bet on the short term." -
Wall Street Journal (March 9, 2021)
-
Dec
2015
Dec
2016
Dec
2017
Exxon Mobil
S&P Global Clean Energy Index
Quote Source: James Mackintosh (March 9, 2021). Tesla v. Exxon is the Perfect Recovery Bet. The Wall Street Journal.
Source: Bloomberg. P/B ratio is based on 12 month forward book value estimates compiled by Bloomberg.
Dec
2018
Dec
2019
3.1x
1.2x
1.1x
Dec
2020
S&P Global Energy (Oil&Gas) Index
REENERGIZE
EXXON//
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