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How ExxonMobil's Integrated Business Model Supports Dividend Growth
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Key Takeaways
XOM's integrated model supports its strategy of sustainably increasing dividends across cycles.
Record hydrocarbon output in Guyana and expanding Permian assets drive XOM's upstream growth.
Downstream, chemicals and specialty products help stabilize XOM's earnings and cash flows.
Exxon Mobil Corporation (XOM - Free Report) , a leading global energy company, has an integrated business model with robust upstream operations as well as downstream and chemicals businesses. The integrated business model keeps its earnings stable across various market cycles. This enables the company to generate stable cash flows and maintain dividend payouts.
ExxonMobil has rewarded shareholders with dividend hikes for 43 consecutive years, including the quarterly increase for the fourth quarter of 2025. XOM has raised its dividend to $1.03 per share in the fourth quarter, a 4% increase from the dividend of 99 cents per share paid in the third quarter of 2025. The company follows a strategy of sustainably increasing its dividends so that it can continue rewarding shareholders across any market cycle, regardless of the commodity price environment.
The company’s upstream business, which contributes to the majority of its earnings, continues to grow on the back of its most advantaged assets in the Permian Basin and offshore Guyana. The hydrocarbon production in Guyana has reached record levels, surpassing 700,000 barrels per day. In the Permian Basin, one of the prolific shale basins in the United States, the company has purchased more than 80,000 net high-quality acres in the Midland Basin from Sinochem Petroleum. These developments are expected to strengthen ExxonMobil’s long-term production profile and support its profitability.
At the same time, its involvement in refining, chemicals and specialty products acts as a cushion against upstream earnings volatility. Together, these factors are expected to enable ExxonMobil to deliver stable profits and continue returning strong cash flows to shareholders.
Other Integrated Majors with a High Dividend Yield
Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) also have an integrated business model with a robust upstream presence. Notably, both integrated majors maintain peer-leading dividend yields. Currently, CVX has a dividend yield of 4.55%, while BP’s yield is 5.53%.
XOM’s Price Performance, Valuation & Estimates
Shares of ExxonMobil have risen 13.7% over the past six months compared with the 15.9% improvement of the composite stocks belonging to 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 7.6X. This is above the broader industry average of 4.9X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has not seen any revisions over the past seven days.
Image: Bigstock
How ExxonMobil's Integrated Business Model Supports Dividend Growth
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) , a leading global energy company, has an integrated business model with robust upstream operations as well as downstream and chemicals businesses. The integrated business model keeps its earnings stable across various market cycles. This enables the company to generate stable cash flows and maintain dividend payouts.
ExxonMobil has rewarded shareholders with dividend hikes for 43 consecutive years, including the quarterly increase for the fourth quarter of 2025. XOM has raised its dividend to $1.03 per share in the fourth quarter, a 4% increase from the dividend of 99 cents per share paid in the third quarter of 2025. The company follows a strategy of sustainably increasing its dividends so that it can continue rewarding shareholders across any market cycle, regardless of the commodity price environment.
The company’s upstream business, which contributes to the majority of its earnings, continues to grow on the back of its most advantaged assets in the Permian Basin and offshore Guyana. The hydrocarbon production in Guyana has reached record levels, surpassing 700,000 barrels per day. In the Permian Basin, one of the prolific shale basins in the United States, the company has purchased more than 80,000 net high-quality acres in the Midland Basin from Sinochem Petroleum. These developments are expected to strengthen ExxonMobil’s long-term production profile and support its profitability.
At the same time, its involvement in refining, chemicals and specialty products acts as a cushion against upstream earnings volatility. Together, these factors are expected to enable ExxonMobil to deliver stable profits and continue returning strong cash flows to shareholders.
Other Integrated Majors with a High Dividend Yield
Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) also have an integrated business model with a robust upstream presence. Notably, both integrated majors maintain peer-leading dividend yields. Currently, CVX has a dividend yield of 4.55%, while BP’s yield is 5.53%.
XOM’s Price Performance, Valuation & Estimates
Shares of ExxonMobil have risen 13.7% over the past six months compared with the 15.9% improvement of the composite stocks belonging to the industry.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.6X. This is above the broader industry average of 4.9X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2025 earnings has not seen any revisions over the past seven days.
Image Source: Zacks Investment Research
XOM and BP each currently carry a Zacks Rank #3 (Hold) while CVX has a Zacks Rank #4 (Sell). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.