We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ExxonMobil confirmed $13.5B in structural cost savings since 2019, targeting $18B by 2030.
BP logged $1.7B in cuts since 2023, aiming for $4-5B in structural savings by 2027-end.
TotalEnergies held steady cash flow despite a 10% oil price drop, crediting efficiency measures.
Exxon Mobil Corporation (XOM - Free Report) has set the industry standard for aggressive, long-term structural cost discipline, cementing its competitive edge as the energy landscape undergoes rapid change. In the second quarter of 2025, XOM confirmed cumulative structural cost savings of $13.5 billion since 2019, with clear execution on operational efficiencies, workforce streamlining, and digital transformation. The company is now targeting $18 billion in total structural savings by 2030. This relentless focus allows ExxonMobil to sustain high levels of investment, deliver robust shareholder distributions, and remain resilient — even amid periods of lower commodity prices.
BP & TTE Accelerate Cost Reductions Too
Like XOM, BP plc (BP - Free Report) and TotalEnergies (TTE - Free Report) are doubling down on multi-year cost transformation strategies.
Cost reductions are a pillar of BP’s turnaround. As of the first half of 2025, BP delivered $0.9 billion in fresh structural cost savings, bringing its cumulative total since 2023 to $1.7 billion. The company is on pace to reach its target of $4-$5 billion cuts by 2027-end. BP’s second-quarter report emphasized a tighter grip on spending, a holistic review of the business, and digitally driven process efficiencies — all strategic levers to improve profitability and strengthen investor confidence.
TotalEnergies' latest results highlighted ongoing “strict cost discipline” and recurring operational improvements across all business segments. Even as benchmark oil prices dropped 10%, TTE managed to keep cash flow nearly steady, attributing this to efficiency measures, supply-chain optimization and asset replacement strategies. TTE does not disclose a cumulative cost-out figure, but persistent quarterly cost controls are credited with supporting earnings resilience and funding growth.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have declined 4.6% over the past year against 1.8% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.24X. This is above the broader industry average of 4.35X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past 30 days.
Image: Bigstock
ExxonMobil's Structural Cost Savings Drive Market Leadership
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) has set the industry standard for aggressive, long-term structural cost discipline, cementing its competitive edge as the energy landscape undergoes rapid change. In the second quarter of 2025, XOM confirmed cumulative structural cost savings of $13.5 billion since 2019, with clear execution on operational efficiencies, workforce streamlining, and digital transformation. The company is now targeting $18 billion in total structural savings by 2030. This relentless focus allows ExxonMobil to sustain high levels of investment, deliver robust shareholder distributions, and remain resilient — even amid periods of lower commodity prices.
BP & TTE Accelerate Cost Reductions Too
Like XOM, BP plc (BP - Free Report) and TotalEnergies (TTE - Free Report) are doubling down on multi-year cost transformation strategies.
Cost reductions are a pillar of BP’s turnaround. As of the first half of 2025, BP delivered $0.9 billion in fresh structural cost savings, bringing its cumulative total since 2023 to $1.7 billion. The company is on pace to reach its target of $4-$5 billion cuts by 2027-end. BP’s second-quarter report emphasized a tighter grip on spending, a holistic review of the business, and digitally driven process efficiencies — all strategic levers to improve profitability and strengthen investor confidence.
TotalEnergies' latest results highlighted ongoing “strict cost discipline” and recurring operational improvements across all business segments. Even as benchmark oil prices dropped 10%, TTE managed to keep cash flow nearly steady, attributing this to efficiency measures, supply-chain optimization and asset replacement strategies. TTE does not disclose a cumulative cost-out figure, but persistent quarterly cost controls are credited with supporting earnings resilience and funding growth.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have declined 4.6% over the past year against 1.8% decline of the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.24X. This is above the broader industry average of 4.35X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past 30 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.