The ratings on ExxonMobil Corp. reflect the company's excellent business risk profile, which is characterized by an outstanding competitive position in all facets of the oil and gas industry, and its minimal financial risk. Irving, Texas-based Exxon operates in many segments of the energy industry, but its exploration and production (E&P) unit is by far the most important contributor to profitability and cash flow. At year-end 2008, Exxon's proved reserves totaled more than 22 billion barrels of oil equivalent (boe)--the largest among the supermajors. A long reserve life (over 15 years) and a large resource base (estimated at 72 billion boe), from which future commercial projects are likely to arise, mitigate depletion risk. Exxon has not sacrificed competitiveness for size.
