This morning Exxon Mobil (XOM) reported on its quarterly 2007 profits. While many oil companies moaned about rising oil prices, Exxon proved that $90 a barrel oil (and above) is not a bad thing for Big Oil profits. MarketWatch reports on the record profits for Exxon:

Exxon Mobil on Friday reported its most lucrative quarter ever, as profit neared the $12 billion mark on a slight rise in adjusted oil production, capping off a year of record crude-oil prices.

That's not to say that Exxon's profits couldn't have been higher. Exploration is becoming increasingly expensive for Big Oil (including Exxon, which spent 20 percent more in capital and exploration spending), as companies try to find untapped reserves of a dwindling resource.

But overall, Exxon beat the trends in some areas. In the U.S., refining and marketing business profit fell. But Exxon was one of the exceptions. Its R&M profit rose by $307 million. Exxon is also going against the trend in other areas as well. The company is notorious for refusing to invest in alternative energy, and for disregarding the environment. This seems to be working from a bottom-line standpoint. And don't forget that economic stimulus, if it does come, is likely to help oil prices rise again.

Additionally, Exxon is seen as having good value. Its share price is well below $90, offering good valuation. And it's still falling this morning. It might be a good time to buy XOM — if you don't mind supporting a company with a horrible environmental record.

Disclosure: I do not own Exxon stock.

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Photo:cackhanded, Creative Commons, Flickr