ZACKS·2025-12-19 14:00Core Viewpoint - The article discusses the impact of declining oil prices on major energy companies, particularly Exxon Mobil Corporation (XOM), Chevron Corporation (CVX), and EOG Resources Inc (EOG), while highlighting their strong financial positions that may help them navigate the current market challenges [2][4]. Group 1: Exxon Mobil Corporation (XOM) - The price of West Texas Intermediate (WTI) crude is currently slightly above $56 per barrel, down from approximately $70 per barrel a year ago, negatively affecting XOM's upstream business [2]. - XOM operates in advantageous locations such as the Permian Basin and offshore Guyana, but lower oil prices are expected to impact profits despite these cost advantages [2]. - XOM's debt to capitalization ratio is 13.6%, significantly lower than the industry average of 28.7%, allowing it to secure debt capital on favorable terms during unfavorable business conditions [3]. Group 2: Chevron Corporation (CVX) and EOG Resources Inc (EOG) - Both CVX and EOG are also experiencing challenges due to the softness in crude prices, which is affecting their bottom lines [4]. - CVX has a debt to capitalization ratio of 17.52%, while EOG's is 20.26%, indicating lower exposure to debt capital and a capacity to withstand business uncertainties [5]. Group 3: Price Performance and Valuation - XOM shares have increased by 15.4% over the past year, outperforming the industry composite stocks, which improved by 13.7% [6]. - XOM's trailing 12-month enterprise value to EBITDA (EV/EBITDA) is 7.62X, higher than the industry average of 4.69X, indicating a premium valuation [6]. - The Zacks Consensus Estimate for XOM's 2025 earnings has not seen any revisions in the past week, suggesting stability in earnings expectations [6].