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Will Elevated Crude Prices Enhance ExxonMobil's Cash Flows?
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Key Takeaways
ExxonMobil's low-cost Permian and Guyana operations position it to benefit from elevated crude oil prices.
XOM is using advanced drilling techniques and AI to boost Permian production volumes while lowering costs.
XOM shares gained 53.3% in a year, outperforming the industry, while its 2026 earnings estimates rose.
West Texas Intermediate (“WTI”) crude is currently trading above $90 per barrel according to data from Oilprice.com. Although the commodity price recently declined from the high mark of more than $100 per barrel, the pricing environment of the commodity is still favorable to continue supporting ExxonMobil Holdings Corporation’s (XOM - Free Report) exploration and production activities, which generate the majority of its earnings.
XOM 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 new drilling techniques and artificial intelligence to boost and optimize production volumes at lower cost structures.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Robust production from both assets has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
Will CVX & COP Also Gain From High Oil Prices?
Like XOM, Chevron Corporation (CVX - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the strength in oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company, much like other energy giants such as XOM and CVX.
The upstream energy giant also has low-cost drilling opportunities across the Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks bright.
Chevron has been witnessing growth in production volumes, thanks to its footprint in the Permian. CVX is thus well-poised to gain from prevailing high oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have gained 53.3% over the past year compared with the industry’s growth of 49.5%.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.59X. This is above the broader industry average of 6.06X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past 30 days.
View the Zacks #1 Rank List
Image: Bigstock
Will Elevated Crude Prices Enhance ExxonMobil's Cash Flows?
Key Takeaways
West Texas Intermediate (“WTI”) crude is currently trading above $90 per barrel according to data from Oilprice.com. Although the commodity price recently declined from the high mark of more than $100 per barrel, the pricing environment of the commodity is still favorable to continue supporting ExxonMobil Holdings Corporation’s (XOM - Free Report) exploration and production activities, which generate the majority of its earnings.
XOM 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 new drilling techniques and artificial intelligence to boost and optimize production volumes at lower cost structures.
In Guyana, XOM has made several oil and gas discoveries, further highlighting its solid production outlook. Robust production from both assets has been aiding its top and bottom lines. In both resources, the breakeven costs are low.
Will CVX & COP Also Gain From High Oil Prices?
Like XOM, Chevron Corporation (CVX - Free Report) and ConocoPhillips (COP - Free Report) will benefit from the strength in oil prices. Let’s delve a little deeper.
With COP generating a significant proportion of revenues from crude oil, the high price of the commodity is extremely favorable for the leading oil and gas exploration and production company, much like other energy giants such as XOM and CVX.
The upstream energy giant also has low-cost drilling opportunities across the Permian, Eagle Ford and Bakken that could be successfully developed over two decades. Thus, the outlook for ConocoPhillips’ upstream operations looks bright.
Chevron has been witnessing growth in production volumes, thanks to its footprint in the Permian. CVX is thus well-poised to gain from prevailing high oil prices.
XOM’s Price Performance, Valuation & Estimates
Shares of XOM have gained 53.3% over the past year compared with the industry’s growth of 49.5%.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.59X. This is above the broader industry average of 6.06X.
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past 30 days.
ExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.