A good article in Seeking Alpha why Exxon is good value. With price target of $ 86, a 3% reliable yield, double digit earning growth and diverse source of reserve (Imperial Oil – Canada (tar sand), LNG in Qatar, unconventional gas with its XTO acquisition) makes Exxon lower risk play on future of Oil.  Its Return on equity is 21% and uses its free cash flow of $ 27.7 billion to buy back $ 3 billion of outstanding shares every quarter (reduced shares outstanding by 26% from 2005-2009) while at the same time increasing dividends by 57%.

Finally, Exxon’s P/E multiple is trading at historical lows over past decade.