• 2 days Retail On Pace For Most Bankruptcies And Store Closures Ever In One Year: BDO
  • 10 minutes America Could Go Fully Electric Right Now
  • 4 days Majors Oil COs diversify into Renewables ? What synergies forget have with Solar Panels and Wind Tirbines ? None !
  • 3 hours Clean Energy Is Canceling Gas Plants
  • 16 hours GAME CHANGER: MIT Startup Commonwealth Fusion says Commercial Product by early 2030s ! THIS CHANGES EVERYTHING..
  • 5 hours Rethinking election outcomes for oil.
  • 7 hours The Leslie Stahl/60 Minutes Interview with President Trump
  • 2 days America's Frontline Doctors - Safely Start Living Again!
  • 16 hours OP article : "Trump blasts Biden Fracking Plan . . . "
  • 3 hours Australia’s Commodities Heartland Set for Major Hydrogen Plant
  • 7 hours Video Evidence that the CCP controls Joe Biden
  • 18 hours Biden denies fracking ban
  • 2 days Is the coal industry on the way out?
  • 2 days "COVID Kills Another Oil Rally" by Tom Kool 10/16/2020
  • 3 days Conoco Pledges ‘Net-Zero’ Emissions in Break With U.S. Rivals

Exxon Gets Kicked Out Of The Dow Jones Industrial Average

Exxon is being kicked out of the Dow Jones Industrial Average index, where it has had a place since 1928. The reason: the Dow needed to make space for other, more valuable companies—and Apple’s stock split, CBS News reports.

The change will be effective on August 31.

Exxon, which was the oldest member of the index for the last two years after Dow removed GE, has been one of the most valuable companies in the U.S. and the world for decades. That is until Big Tech showed up and began changing the world, its stock reflecting this change by swelling market caps.

When Apple recently passed the $2-trillion valuation mark for a few hours, it became the most valuable company in the world.

Meanwhile, Big Oil—and Exxon specifically—hasn’t been faring all that well. Energy, which featured solidly on the index and in people’s lives a few decades ago, is being booted out by technology—Exxon’s replacement on the DJIA is a software company, Salesforce.

And then there is the climate change narrative and the accusations that Exxon knew about it but did not do anything about it. And it is not doing anything about it still, according to critics, unlike European supermajors, which are all but racing towards renewables.

Meanwhile, the double blow from the Saudi price war and the pandemic hit the world's largest public oil company hard. Exxon reported two quarterly losses this year, blaming oil prices and the effect of the pandemic on oil’s fundamentals. It is reducing its production in the face of lower demand and adjusting its spending plans like its peers to weather the worst of the crisis.

In the end, however, it is just about its share price. At a little over $42 a piece at the time of writing, Exxon is just too cheap for the DJIA, cheaper than the only other remaining energy company on the index: Chevron. Chevron is trading above $82 per share.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News