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Can ExxonMobil Navigate Market Turbulence With Its Strong Balance Sheet?
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Key Takeaways
ExxonMobil's debt-to-capitalization ratio is 12.2%, well below the industry average of 41.06%.
The company holds $30B in cash and marketable securities, boosting liquidity and stability.
XOM trades at 6.93X EV/EBITDA, above the industry average, with earnings estimates revised upward.
Exxon Mobil Corporation (XOM - Free Report) is one of the world’s largest integrated energy companies with operations spanning upstream, downstream and chemicals. Like other oil and gas majors, ExxonMobil is exposed to commodity price volatility. However, the company’s strong balance sheet provides resilience during periods of market uncertainty, allowing it to sustain operations and shareholder returns even when crude prices are under pressure.
With a debt-to-capitalization ratio of just 12.2%, ExxonMobil carries substantially less debt than the broader industry’s 41.06%. At the end of the first quarter of 2025, ExxonMobil reported $30 billion in cash and marketable securities, reflecting a healthy liquidity position.
Coupled with diversified global operations and disciplined capital spending, ExxonMobil is well-positioned to generate robust cash flows and navigate commodity cycles effectively.
COP & CVX Also Have Healthy Balance Sheets
Like XOM, ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) also have lower debt exposure.
The debt-to-capitalization of COP is 26.7%, while that of CVX is 16.5%. Thus, despite having significant exposure to exploration and production activities, both COP and Chevron can lean on their balance sheet to combat periods of low oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have plunged 4.3% over the past year compared with the industry’s 2.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.93X. This is above the broader industry average of 4.36X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past seven days.
Image: Bigstock
Can ExxonMobil Navigate Market Turbulence With Its Strong Balance Sheet?
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) is one of the world’s largest integrated energy companies with operations spanning upstream, downstream and chemicals. Like other oil and gas majors, ExxonMobil is exposed to commodity price volatility. However, the company’s strong balance sheet provides resilience during periods of market uncertainty, allowing it to sustain operations and shareholder returns even when crude prices are under pressure.
With a debt-to-capitalization ratio of just 12.2%, ExxonMobil carries substantially less debt than the broader industry’s 41.06%. At the end of the first quarter of 2025, ExxonMobil reported $30 billion in cash and marketable securities, reflecting a healthy liquidity position.
Coupled with diversified global operations and disciplined capital spending, ExxonMobil is well-positioned to generate robust cash flows and navigate commodity cycles effectively.
COP & CVX Also Have Healthy Balance Sheets
Like XOM, ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) also have lower debt exposure.
The debt-to-capitalization of COP is 26.7%, while that of CVX is 16.5%. Thus, despite having significant exposure to exploration and production activities, both COP and Chevron can lean on their balance sheet to combat periods of low oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have plunged 4.3% over the past year compared with the industry’s 2.3% decline.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.93X. This is above the broader industry average of 4.36X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past seven days.
XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.