Exxon Mobil Corporation

XOM
Financial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$85.1B
Q1 2026 · +2.4% YoY
TTM ROIC
7.4%
FY2025 · ROCE = Net Income / Average Capital Employed (Total Assets - Current Liabilities) · WACC ~7% · Moat spread +0.5pp
DCF Fair Value
$122
Base case · WACC 7% · Terminal 1% · -23.75% vs. current price
Margin Profile
FCF 7.1%
FY2025
Net Debt
$16.0B
Cash $22.0B · Debt $38.0B · FY2025
Diluted Shares
4.14B
Q1 2026 · -4.8% (buyback)

Business Overview


ticker: XOM step: 01 generated: 2026-05-11 source: quick-research

Exxon Mobil Corporation (XOM) — Business Overview

Business Description

ExxonMobil is the largest U.S.-based integrated oil and gas major and one of the largest energy companies globally. It explores for and produces crude oil and natural gas, refines and markets petroleum products, manufactures specialty chemicals, and is building low-carbon businesses around carbon capture, hydrogen, and lithium. The $64.5B Pioneer Natural Resources acquisition (closed May 2024) made XOM the dominant Permian Basin producer; Guyana production (700K+ bpd in 2025) is a separate world-class growth engine.

Revenue Model

  • Upstream (~50% of earnings): Sale of crude oil and natural gas from producing assets in Permian Basin (~1.6M bpd in 2025), Guyana (~700K gross bpd), and global conventional/LNG operations
  • Product Solutions (~45% of earnings): Refining margins on fuels (gasoline, diesel, jet, marine), petrochemicals/polymers (PE, PP, PVC), lubricants (Mobil 1)
  • Low Carbon Solutions (~1%, growing): Carbon capture & storage contracts, hydrogen, lithium production (Arkansas facility launching 2026-27)
  • Specialty Products (~4%): Premium lubricants and branded specialty chemicals

Products & Services

  • Crude oil and natural gas: From Permian, Guyana, deepwater (US Gulf, Brazil), LNG (Golden Pass LNG first cargoes Q1 2026)
  • Refined fuels: Gasoline, diesel, jet, marine fuels, lubricants
  • Petrochemicals: Polyethylene, polypropylene, vinyls, performance chemicals
  • Mobil 1 / Esso / Exxon retail networks
  • CCS contracts: 9M metric tons CO2/year under contract from industrial customers
  • Lithium: Mountain Pass-style direct lithium extraction in Smackover formation (Arkansas) — target top supplier to North American EV market by 2027

Customer Base & Go-to-Market

  • Refiners and traders: Buy upstream crude (vertically integrated when possible)
  • Industrial / commercial customers: Buy refined products in bulk; chemical buyers across plastics, packaging, automotive
  • Retail consumers: Via ~12,000+ Exxon/Esso/Mobil-branded fuel stations globally (mostly licensee-operated)
  • CCS partners: Industrial emitters (cement, steel, chemicals) contracting for sequestration services
  • Future: EV battery manufacturers (lithium offtake)

Competitive Position

XOM is the most operationally and financially disciplined oil major, with the lowest unit costs in the Permian post-Pioneer integration ($3B+ annual synergies from cube-development drilling) and the world's largest oil discovery this century (Guyana). Moats include scale (largest IOC by capex), technology (proprietary CCS, lithium DLE, cube drilling, deepwater technology), and integrated value chain (upstream-refining-chemicals tying earnings stability across cycles). Faces "energy transition" valuation risk if Western policy intensifies, though current cycle has rewarded XOM's "double-down on hydrocarbons" strategy.

Key Facts

  • Founded: 1870 (Standard Oil); current entity via 1999 Exxon-Mobil merger
  • Headquarters: Spring (Houston metro), TX
  • Employees: ~62,000
  • Exchange: NYSE
  • Sector / Industry: Energy / Integrated Oil & Gas
  • Market Cap: ~$640B (May 2026)
  • CEO: Darren Woods (since 2017)
  • Dividend: $4 annual ($0.99/quarter), with 41+ consecutive years of dividend growth
  • Buybacks: $20B annual program

Financial Snapshot


ticker: XOM step: 04 generated: 2026-05-11 source: quick-research

Exxon Mobil Corporation (XOM) — Financial Snapshot

Income Statement Summary

Metric FY2023 FY2024 FY2025 YoY
Revenue $344.6B $339.2B $343.5B +1.3%
Earnings $36.0B $33.7B $28.8B -15%
Adjusted Earnings (ex-items) $36.6B $33.5B $30.1B -10%
EPS (diluted) $8.89 $7.84 $6.85 -13%
Upstream Earnings $21.3B $25.4B ~$22B -13%
Product Solutions Earnings $12.1B $4.2B ~$5B +20%

Production & Operations (FY2025)

Metric Value
Total Production 4.7M BOE/day (40-year high)
Permian Production 1.6M BOE/day
Guyana Production 700K+ gross bpd
Pioneer Synergies (annual) $3B+ (raised from $2B initial target)
Refining Throughput ~3.9M bpd

Cash Flow & Balance Sheet (FY2025)

Metric Value
Cash Flow from Operations $52.0B
Capital Expenditures ~$26B
Free Cash Flow ~$26B
Cash & Equivalents ~$22B
Total Debt ~$38B
Debt-to-Capital ~12% (lowest among super-majors)

Key Ratios (approximate, May 2026)

  • P/E (forward): ~13x | EV/EBITDA: ~7x | Dividend Yield: ~2.6%
  • Buyback Yield: ~3.1% ($20B annual program / ~$640B mkt cap)
  • ROIC: ~13% | FCF Yield: ~4%
  • Reserve Life Index: ~13 years

Growth Profile

XOM is in execution mode on its post-Pioneer growth plan — record production of 4.7M BOE/day in 2025, with management targeting >5M BOE/day by 2030 and ~$20B in additional earnings vs 2024 base case. Key projects: Golden Pass LNG (first cargo Q1 2026), additional Guyana FPSOs, expanded Permian cube development, and emerging Low Carbon (CCS contracts at 9Mt and ramping; Arkansas lithium 2027). Earnings sensitivity remains high to oil price (Brent has averaged $85-115 across 2025-2026 windows).

Forward Estimates

  • 2026E Revenue: ~$355B (depends on oil price assumption)
  • 2026E EPS: ~$8.50 (consensus, +24% — assumes Brent ~$85-95)
  • 2026E FCF: ~$32B (consensus)
  • 2030 Plan target: $20B incremental earnings + $30B incremental cash flow vs. 2024
  • Capex range 2026-2030: $27-29B annually

Capital Return

  • $20B/year share repurchase program ongoing
  • Dividend grown 41+ consecutive years (current ~$4/share annual)
  • Q1 2026 shareholder distributions: $9.2B
  • Target: returning $130B+ to shareholders by 2027

Deeper Financial Analysis

The fundamental tier adds 9 additional research dimensions for $XOM.

Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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Markdown: /stocks/xom/financials/md · → thesis · → memo