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.
Will Strong Oil Prices Boost ExxonMobil's Energy Business?
Read MoreHide Full Article
Key Takeaways
ExxonMobil's upstream-heavy portfolio benefits from higher crude prices and strong operating margins.
ExxonMobil's low-cost Permian Basin and offshore Guyana assets support profitability across price cycles.
XOM may benefit from EIA's WTI forecast of $88.32 per barrel in 2026 compared with $65.40 per barrel in 2025.
Exxon Mobil Corporation (XOM - Free Report) is an integrated energy giant spanning the entire oil and gas value chain, from exploration and production to refining and marketing. The company generates substantial revenues from these upstream operations, making its overall business model highly sensitive to the volatility of global crude prices. With West Texas Intermediate (“WTI”) crude prices trading above $80 per barrel, according to oilprice.com, amid ongoing geopolitical tensions and conflict in the Middle East, ExxonMobil is operating in a favorable commodity-price environment that supports higher margins.
The bulk of the well-known integrated giant’s upstream resources are concentrated in the Permian Basin, the most prolific basin in the United States and offshore Guyana. These advantaged assets have very low production costs, which allow XOM to maintain strong margins even during periods of soft crude prices. This cost advantage firmly positions ExxonMobil to maximize profitability in the robust crude-price environment.
The U.S. Energy Information Administration (“EIA”) also projects a sustained favorable pricing environment in its short-term energy outlook. The EIA estimates that WTI crude prices will average $88.32 per barrel in 2026. This is significantly higher than the $65.40 per barrel recorded in 2025. The combination of an advantaged resource base and resilient EIA forecasts positions ExxonMobil to capitalize on favorable market conditions.
Will YPF & CVE Benefit From Higher Crude Prices?
As major energy players focused on exploration and production,Chevron Corporation (CVX - Free Report) and Cenovus Energy Inc. (CVE - Free Report) have business models that are highly exposed to crude price volatility. Chevron benefits from high-quality upstream assets, including a strong footprint in the Permian Basin, while Cenovus operates a highly diversified portfolio across Canada and the United States. Given their extensive asset bases, CVX and CVE are well-positioned to benefit from elevated crude prices.
XOM’s Price Performance, Valuation & Estimates
ExxonMobil shares have gained 30.7% over the past year compared with 33.5% growth 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 9.74X. This is above the broader industry average of 6.4X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has remained constant over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Will Strong Oil Prices Boost ExxonMobil's Energy Business?
Key Takeaways
Exxon Mobil Corporation (XOM - Free Report) is an integrated energy giant spanning the entire oil and gas value chain, from exploration and production to refining and marketing. The company generates substantial revenues from these upstream operations, making its overall business model highly sensitive to the volatility of global crude prices. With West Texas Intermediate (“WTI”) crude prices trading above $80 per barrel, according to oilprice.com, amid ongoing geopolitical tensions and conflict in the Middle East, ExxonMobil is operating in a favorable commodity-price environment that supports higher margins.
The bulk of the well-known integrated giant’s upstream resources are concentrated in the Permian Basin, the most prolific basin in the United States and offshore Guyana. These advantaged assets have very low production costs, which allow XOM to maintain strong margins even during periods of soft crude prices. This cost advantage firmly positions ExxonMobil to maximize profitability in the robust crude-price environment.
The U.S. Energy Information Administration (“EIA”) also projects a sustained favorable pricing environment in its short-term energy outlook. The EIA estimates that WTI crude prices will average $88.32 per barrel in 2026. This is significantly higher than the $65.40 per barrel recorded in 2025. The combination of an advantaged resource base and resilient EIA forecasts positions ExxonMobil to capitalize on favorable market conditions.
Will YPF & CVE Benefit From Higher Crude Prices?
As major energy players focused on exploration and production,Chevron Corporation (CVX - Free Report) and Cenovus Energy Inc. (CVE - Free Report) have business models that are highly exposed to crude price volatility. Chevron benefits from high-quality upstream assets, including a strong footprint in the Permian Basin, while Cenovus operates a highly diversified portfolio across Canada and the United States. Given their extensive asset bases, CVX and CVE are well-positioned to benefit from elevated crude prices.
XOM’s Price Performance, Valuation & Estimates
ExxonMobil shares have gained 30.7% over the past year compared with 33.5% growth 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 9.74X. This is above the broader industry average of 6.4X.
The Zacks Consensus Estimate for XOM’s 2026 earnings has remained constant over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.