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ExxonMobil Post Q1 Earnings: Is the Stock Worth Buying Now?
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Key Takeaways
XOM topped Q1 EPS and revenue estimates, helped by Permian and Guyana output and cost savings.
WTI above $100 and EIA's higher 2026 WTI outlook are expected to support XOM's upstream earnings.
XOM targets 1.8M boe/d Permian production this year and cites low breakevens plus discoveries in Guyana.
Last Friday, Exxon Mobil Corporation (XOM - Free Report) announced first-quarter 2026 earnings that surpassed expectations, thanks to contributions from advantageous assets such as Permian and Guyana. Structural cost savings also contributed to the positive developments. The integrated energy giant mentioned that Permian, the most prolific basin in the United States, will remain the growth driver, brightening the overall business outlook.
Before analyzing the factors driving this positive outlook, let’s first review the first-quarter results.
XOM’s Q1 Earnings Snapshot
ExxonMobil reported earnings per share of $1.16 (excluding identified items), which beat the Zacks Consensus Estimate of $1.07. The bottom line declined from the year-ago level of $1.76.
Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) are two other prominent integrated energy companies. Both CVX and BP have already posted results.
High Oil Price to Aid Upstream Operations of XOM
The price of West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $87.41 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting ExxonMobil's exploration and production activities, which derive the majority of its earnings.
To provide a glimpse of the upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%. On the first quarter earnings call, XOM mentioned that it is staying aligned with its plan of growing its production in the most prolific basin to 1.8 million oil equivalent barrels this year.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Record production from both resources has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
XOM’s Solid Balance & Dividend Commitment
Investors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is significantly lower than the industry’s composite stocks.
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
What Should Investors Do Now?
The positive developments are getting reflected in the price chart. In the past six months, XOM has jumped 34.2%, outpacing the industry’s 32.2% growth. BP and CVX, two other integrated players in the same space, have gained 31.1% and 25.7%, respectively.
Price Chart
Image Source: Zacks Investment Research
Coming to the valuation story, XOM is trading at a premium, meaning investors are willing to pay more for the stock. On a relative basis, the stock is trading at a 10.19x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 6.78x. BP and CVX are trading at 3.46x and 9.82x, respectively.
Image Source: Zacks Investment Research
To conclude, considering the backdrop, it would be wise to bet on XOM right away, even at a premium. Currently, XOM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
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ExxonMobil Post Q1 Earnings: Is the Stock Worth Buying Now?
Key Takeaways
Last Friday, Exxon Mobil Corporation (XOM - Free Report) announced first-quarter 2026 earnings that surpassed expectations, thanks to contributions from advantageous assets such as Permian and Guyana. Structural cost savings also contributed to the positive developments. The integrated energy giant mentioned that Permian, the most prolific basin in the United States, will remain the growth driver, brightening the overall business outlook.
Before analyzing the factors driving this positive outlook, let’s first review the first-quarter results.
XOM’s Q1 Earnings Snapshot
ExxonMobil reported earnings per share of $1.16 (excluding identified items), which beat the Zacks Consensus Estimate of $1.07. The bottom line declined from the year-ago level of $1.76.
Total quarterly revenues of $85.14 billion beat the Zacks Consensus Estimate of $81.49 billion. The top line improved from the year-ago figure of $83.13 billion. For more details, read our article: ExxonMobil Q1 Earnings Beat Estimates on Higher Upstream Production.
Chevron Corporation (CVX - Free Report) and BP plc (BP - Free Report) are two other prominent integrated energy companies. Both CVX and BP have already posted results.
High Oil Price to Aid Upstream Operations of XOM
The price of West Texas Intermediate (“WTI”) crude is trading at more than the $100-per-barrel mark. The high price is being backed by ongoing tensions in the Middle East. The U.S. Energy Information Administration (“EIA”) in its latest short-term energy outlook projected WTI at $87.41 per barrel this year, higher than $65.40 last year. A highly favorable pricing environment for the commodity is likely to continue supporting ExxonMobil's exploration and production activities, which derive the majority of its earnings.
To provide a glimpse of the upstream assets, the company has a massive footprint in the Permian, the most prolific oil and gas play in the United States, and offshore Guyana. In the Permian, the integrated giant has been employing lightweight proppant technology and hence is capable of boosting its well recoveries by up to as much as 20%. On the first quarter earnings call, XOM mentioned that it is staying aligned with its plan of growing its production in the most prolific basin to 1.8 million oil equivalent barrels this year.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Record production from both resources has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
XOM’s Solid Balance & Dividend Commitment
Investors should also keep in mind that XOM has a strong balance sheet, on which it could rely during an unfavorable business environment. The debt-to-capitalization of ExxonMobil is significantly lower than the industry’s composite stocks.
Coming to the integrated energy giant’s dividend commitment story, over the past 43 years, ExxonMobil has been rewarding shareholders with annual dividend hikes at an average rate of 5.8%.
What Should Investors Do Now?
The positive developments are getting reflected in the price chart. In the past six months, XOM has jumped 34.2%, outpacing the industry’s 32.2% growth. BP and CVX, two other integrated players in the same space, have gained 31.1% and 25.7%, respectively.
Price Chart
Coming to the valuation story, XOM is trading at a premium, meaning investors are willing to pay more for the stock. On a relative basis, the stock is trading at a 10.19x trailing 12-month Enterprise Value to Earnings Before Interest, Taxes, Depreciation and Amortization (EV/EBITDA), which is a premium compared with the broader industry average of 6.78x. BP and CVX are trading at 3.46x and 9.82x, respectively.
To conclude, considering the backdrop, it would be wise to bet on XOM right away, even at a premium. Currently, XOM sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.