Exxon Mobil Corporation XOM, the U.S. oil and gas giant, has an integrated business model spanning upstream operations, refining and trading. XOM continues to strengthen its production outlook through its diversified global asset base, as it derives the majority of its earnings from its upstream business. Notably, the company is increasing production from its most advantaged assets in Guyana and the Permian Basin.
In the Permian Basin, ExxonMobil is leveraging proprietary technologies that improve the efficiency of the hydraulic fracturing process and enhance recovery rates at its wells. The company intends to raise its full-year production from the prolific basin to 1.8 million oil equivalent barrels through the remainder of 2026. In Guyana, the company is advancing several projects at the Stabroek Block, including Uaru, Whiptail and Hammerhead. The Uaru project is expected to commence operations toward the end of this year, further increasing output in Guyana.
ExxonMobil’s advantaged upstream assets are characterized by a lower emissions profile and low production costs, which make them extremely profitable during periods of high oil prices. The current oil price scenario, supported by geopolitical tensions in the Middle East, stands to benefit ExxonMobil’s upstream segment through stronger commodity price realizations, boosting profitability and cash flow generation. While disruptions in the Middle East affected its overall production, the company noted that production growth from the Permian Basin and Guyana assets largely offset those impacts. XOM's portfolio of advantaged assets enhances its resilience during volatile times and supports long-term shareholder value creation.
What Drives COP and EOG's Competitive Edge
ConocoPhillips COP and EOG Resources, Inc. EOG are two global energy firms that can thrive even during challenging commodity price environments.
ConocoPhillips’ portfolio includes assets in the prolific shale basins of the United States, the Canadian oil sands and conventional assets in Asia, Europe and the Middle East, which support low-cost production. Notably, in the U.S. Lower 48, COP has an advantaged inventory position that can support operations at low break-even costs. Higher crude prices directly enhance ConocoPhillips’ profitability and strengthen its cash flow profile.
EOG Resources is a leading independent exploration and production company with operations focused on prolific acreage in the United States as well as several resource-rich international basins. EOG boasts a high-return, low-decline asset base and stands out among the low-cost producers in the United States. Since the company’s production is mainly weighted toward crude oil and condensates, EOG stands to directly benefit from higher crude prices.
XOM’s Price Performance, Valuation & Estimates
Shares of ExxonMobil have risen 47.8% over the past year compared with the 47.2% increase 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 10.06X. This is above the broader industry average of 6.5X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past seven days.
Image Source: Zacks Investment Research
XOM, COP and EOG each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report
ConocoPhillips (COP): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).