Question: Assuming the 3 major financial risks faced by ExxonMobil include Commodity Risk, Foreign Currency Risk and Interest Rate Risk.. Given the above schedule, DISCUSS the outlook (forecast) over the hedging horizon, for each underlying variable and identify whether it will present a risk to the firm. You need to provide adequate evidence to support the justification for your responses.

Background ExxonMobil Corporation (NYSE: XOM) is an American multinational and is one of the world's largest, oil and gas companies. They operate facilities or market products all over the world and explore oil and natural gas on six continents. Their business is divided into chemical, downstream and upstream. Please note that the below energy schedule refers to ExxonMobil's upstream (i.e. oil and gas explorers/producers) activities. Assume ExxonMobil has the following energy related production, revenue and financing schedule. Crude Oil - Expected production Quantity Representative Index/underlying Jan - 2022 235,000 barrels Natural Gas - Expected production Quantity Feb-2022 12 billion cubic feet* Foreign Revenue From Brazil - expected in 3 months 23,450,530 BRL Liabilities Commercial paper - Maturity - 6 months to be issued in 3 months' time. US$12,525,350 Eurodollars * 1 mmBTU = 1000.00 cubic feet Background ExxonMobil Corporation (NYSE: XOM) is an American multinational and is one of the world's largest, oil and gas companies. They operate facilities or market products all over the world and explore oil and natural gas on six continents. Their business is divided into chemical, downstream and upstream. Please note that the below energy schedule refers to ExxonMobil's upstream (i.e. oil and gas explorers/producers) activities. Assume ExxonMobil has the following energy related production, revenue and financing schedule. Crude Oil - Expected production Quantity Representative Index/underlying Jan - 2022 235,000 barrels Natural Gas - Expected production Quantity Feb-2022 12 billion cubic feet* Foreign Revenue From Brazil - expected in 3 months 23,450,530 BRL Liabilities Commercial paper - Maturity - 6 months to be issued in 3 months' time. US$12,525,350 Eurodollars * 1 mmBTU = 1000.00 cubic feet