ExxonMobil's Financial Position: Here's What Investors Should Know

Group 1 - Exxon Mobil Corporation (XOM) generates the majority of its earnings from upstream operations, making it vulnerable to fluctuations in oil and natural gas prices [1][8] - The company has a strong balance sheet with a debt-to-capitalization ratio of 12.6%, indicating low exposure to debt capital [2][8] - This low debt exposure allows ExxonMobil to secure additional debt on favorable terms during uncertain times, enabling smooth operations and shareholder rewards [3] Group 2 - Other companies like Chevron Corporation (CVX) and EOG Resources Inc. (EOG) also maintain robust balance sheets, with debt-to-capitalization ratios of 16.7% and 12.7% respectively, allowing them to navigate unfavorable business environments [4] - XOM's shares have decreased by 5.7% over the past year, compared to a 0.5% decline in the industry [5] - The current valuation of XOM is reflected in its trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.25X, which is above the industry average of 4.45X [7] - Earnings estimates for XOM for 2025 have been revised upward, indicating positive sentiment [10]