ExxonMobil In 'Preservation Mode,' Cramer Says After Q3 Report

On CNBC Friday morning, Jim Cramer shared his opinions on ExxonMobil’s third-quarter earnings report and what’s in store for the oil company going forward.

Cramer On Exxon Mobil: Jim Cramer pointed to the fall in the price of oil and Exxon Mobil Corporation (NYSE: XOM) struggling.

“They’re in preservation mode.”

Cramer said the price of oil is not going up, but natural gas might.

Related Link: Exxon Mobil’s Dividend Yield Hits 10%: What Investors Need To Know

Cramer On XTO Acquisition: In 2009, Exxon Mobil paid $41 billion to acquire XTO Energy. Cramer said he was critical of the deal, for which he believes Exxon overpaid. 

In the third-quarter report, Exxon announced that it may take a $25-billion to $30-billion impairment charge on its dry gas portfolio. The company plans to complete its assessment in the fourth quarter.

When asked what Exxon would be doing with that cash if it didn’t acquire, Cramer said the company would probably have spent it on buybacks and dividends as it usually does. 

Cramer On ExxonMobil's Future: As part of the earnings report, Exxon highlighted its progress in reducing emissions.

Exxon partnered with Global Thermostat on a joint venture to “bring to scale breakthrough technology that removes carbon dioxide directly from the atmosphere.”

Cramer said that when "Exxon decides to get out of the oil industry, [there's] not much there."

XOM Price Action: Shares of ExxonMobil were down 0.67% at $32.75 at last check Friday.