by Steve St. Angelo
The global contagion that negatively impacted the oil industry couldn’t have come at a worse time for ExxonMobil. After the company increased its long term debt by $12 billion over the last year, ExxonMobil may have to borrow even more money to continue paying dividends and capital expenditures (CAPEX).
The reason ExxonMobil was forced to borrow $12 billion between the second quarter of 2019 and the first quarter of 2020 had to do with the nasty negative free cash flow the company accumulated. I explained this in the chart below, which I posted in my article, THE END OF A U.S. OIL GIANT: ExxonMobil’s Days Are Numbered: