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XOM trades at 7.02X EV/EBITDA, above the industry average of 4.32X.
Exxon Mobil Corporation (XOM - Free Report) continues to demonstrate robust financial strength built on consistent free cash flow generation across its integrated operations, including upstream, downstream and chemicals. During its second-quarter 2025 earnings release, ExxonMobil reported free cash flow of $5.4 billion. This strong cash flow supports the company’s ability to fund shareholder returns, reduce debt and make strategic investments in high-return projects despite commodity price volatility.
Unlike some peers who may rely heavily on upstream scale alone, ExxonMobil’s diversified global portfolio and operational scale provide it with substantial financial flexibility and resilience. This allows the company to pursue strong growth opportunities while maintaining a robust balance sheet, positioning it well to navigate the ongoing energy transition and market uncertainties.
CVX & SHEL Deliver Solid Cash Flow Too
Like XOM, Chevron Corporation (CVX - Free Report) and Shell plc (SHEL - Free Report) also report solid free cash flow.
Chevron reported about $4.9 billion in free cash flow. The company remains focused on expanding U.S. shale output, particularly in the Permian Basin, while also advancing large international projects that support long-term growth.
Shell, meanwhile, reported $6.5 billion in free cash flow for the quarter. Its strategy remains anchored to liquefied natural gas (“LNG”), where it maintains the world’s largest portfolio, alongside a trading and optimization business that adds earnings resilience.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have lost 6.1% over the past year against the industry’s loss of 2.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.02X. This is above the broader industry average of 4.32X.
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
Strong Cash Flow Keeps ExxonMobil Ahead in a Volatile Energy Market
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) continues to demonstrate robust financial strength built on consistent free cash flow generation across its integrated operations, including upstream, downstream and chemicals. During its second-quarter 2025 earnings release, ExxonMobil reported free cash flow of $5.4 billion. This strong cash flow supports the company’s ability to fund shareholder returns, reduce debt and make strategic investments in high-return projects despite commodity price volatility.
Unlike some peers who may rely heavily on upstream scale alone, ExxonMobil’s diversified global portfolio and operational scale provide it with substantial financial flexibility and resilience. This allows the company to pursue strong growth opportunities while maintaining a robust balance sheet, positioning it well to navigate the ongoing energy transition and market uncertainties.
CVX & SHEL Deliver Solid Cash Flow Too
Like XOM, Chevron Corporation (CVX - Free Report) and Shell plc (SHEL - Free Report) also report solid free cash flow.
Chevron reported about $4.9 billion in free cash flow. The company remains focused on expanding U.S. shale output, particularly in the Permian Basin, while also advancing large international projects that support long-term growth.
Shell, meanwhile, reported $6.5 billion in free cash flow for the quarter. Its strategy remains anchored to liquefied natural gas (“LNG”), where it maintains the world’s largest portfolio, alongside a trading and optimization business that adds earnings resilience.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have lost 6.1% over the past year against the industry’s loss of 2.3%.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.02X. This is above the broader industry average of 4.32X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past seven days.
Image Source: Zacks Investment Research
ExxonMobil stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.