Down 11% in 1 Month With a 3.7% Yield, Is This High-Yield Dividend Stock Too Cheap to Ignore, and Worth Buying in 2025?

ExxonMobil's Financial Health and Debt Management - ExxonMobil's net long-term debt and leverage are at their lowest levels in a decade [2] - The company has very little net debt on its balance sheet, with low financial debt-to-equity and debt-to-capital ratios [14] - ExxonMobil used excess profits in recent years to pay down debt, avoiding dependence on debt [14][13] Strategic Investments and Cost Efficiency - ExxonMobil has ramped up capital spending, focusing on high cash-flow generation projects like the Permian Basin, Guyana, and LNG portfolio [2] - The company achieved $11 billion in structural cost savings between 2019 and Q3 2024, with an additional$7 billion expected by 2030 [7] - ExxonMobil now generates over 50% of its production from advantaged assets, aiming for 60% by 2030, which helps drive down production costs [15] Earnings and Cash Flow Projections - ExxonMobil expects to grow annual cash flows by $30 billion compared to 2024 and$50 billion since 2019, with earnings growth of $20 billion versus 2024 and$35 billion since 2019 [9] - The company forecasts $165 billion in surplus cash between 2025 and 2030, allowing for sizable dividend raises and buybacks [10] - At$55 per barrel Brent, ExxonMobil expects $110 billion in cash surplus, which could rise to$280 billion if Brent averages $85 [17] Dividend and Shareholder Returns - ExxonMobil has raised its dividend for 42 consecutive years, offering a 3.7$140 billion to shareholders through buybacks and dividends between 2019 and Q3 2024 [7] - ExxonMobil can fund its capital projects and dividends even if Brent prices drop to $35 through 2027 and$30 by 2030 [17] Low-Carbon Technology Investments - ExxonMobil is investing heavily in low-carbon technologies like carbon capture and storage and hydrogen [8] - The company believes carbon capture can help deliver lower emissions power for data centers, with projects detached from the grid [8] Market Performance and Valuation - ExxonMobil's stock price fell by 11.25% over the past month, while the S&P Energy Select Sector Index dropped by 10.60% [12] - The company has a price-to-earnings ratio of 13.3, making it an inexpensive stock based on earnings during a period of mediocre oil prices [16] Corporate Plan and Future Growth - ExxonMobil updated its corporate plan on Dec 11, extending its targets from 2027 to 2030 [5] - The company's plan is based on generating positive cash flow without relying on debt, setting clear expectations for investors [13] - ExxonMobil stands out as a well-rounded oil and gas company to buy in 2025, with a clear outline for future growth [4][6]