The world's largest publicly traded oil giant, Exxon Mobil, produced fourth quarter numbers last week that would blow the top off of any thermostat.

The company stated that fourth quarter earnings jumped 63 percent mostly due to higher prices for crude oil and natural gas in the later part of 2003.

Exxon Mobil stated that it earned $6.65 billion or $1.01 per shares in the fourth quarter of 2003. These numbers are up considerably from the $4 billion figure one year earlier.

The overall summary for 2003 looked strong with total earnings of $21.51 billion, or $3.23 per share.

The only caveat in this otherwise impressive story was the punitive damage settlement amount of $6.75 billion that Exxon Mobil was ordered to pay to the thousands of fisherman and others affected by the 1989 Exxon Valdez oil spill in Alaska. Specifically the money is set aside for 32, 000 fisherman, Alaskan natives, landowners and municipalities and small businesses that were and still are deeply affected by an oil spill of over 11 million gallons in the area of Prince William Sound.

Exxon Mobil will most likely appeal the order by US district Judge Russell Holland, yet they still face an uphill battle and money will eventually have to be paid out.

Overall the energy section of your portfolio should be up considerably with the impressive rise in oil and natural gas. At this point individuals should take the time to meet with their respective financial advisors to possible take profits off the table from soaring stock prices.

The US markets are looking somewhat overvalued, and as mentioned earlier, perhaps taking some money out of profits is not a bad idea. Diversifying out of the US is a more common theme with investors as of late. Individuals may want to consider euro denominated preferred shares and Canadian equities as the US market attempts to regain its position on the world stage.

Before making any changes in your portfolio please take the time to get a professional opinion. For a confidential portfolio review, contact Paul M. Jenkins at 292-5000.