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Energy giant Exxon Mobil has seen pressure beyond falling energy prices. The company could also face a bitter proxy battle, a potential regulatory probe, and investors focused on climate change.
Dean Mouhtaropoulos/Getty Images
All eyes will be on
Exxon Mobil
as the oil giant reports earnings on Tuesday.
While investor attention will be focused on Exxon’s (ticker: XOM) fourth-quarter financial results, Wall Street will be looking for signs of how the company plans to forge ahead amid what could become a bitter proxy battle.
Engine No. 1, an investment firm launched last year, recently nominated four directors to Exxon’s board, saying that it “needs new members who have proven success positioning energy companies for today as well as tomorrow.” Separately, The Wall Street Journal reported that Exxon may be looking to add members to its board and ramp up its sustainability efforts. An announcement could come with the earnings release.
Exxon issued a statement on Wednesday that said it has engaged with Engine No. 1 since mid-December, and will evaluate the firm’s nominees “in line with the corporation’s by-laws.” The energy giant declined to comment further.
Exxon, once the world’s largest company, has been facing pressure elsewhere, as well. It’s expected to post a loss in the quarter due to falling energy prices. Also, the Securities and Exchange Commission is reportedly investigating a whistleblower complaint that Exxon overvalued holdings in the Permian Basin. Exxon has said that such claims are “demonstrably false.”
Not to mention the increasing pressure Exxon and peers face on the climate-change front. Institutional investors such as BlackRock (BLK) are demanding more disclosure on how energy firms plan to reduce greenhouse-gas emissions.
Write to Carleton English at carleton.english@dowjones.com