How ExxonMobil Keeps Rewarding Shareholders Across Various Oil Cycles

Core Insights - Exxon Mobil Corporation (XOM) generates most of its earnings from upstream operations, making it vulnerable to commodity price volatility. However, it has consistently returned capital to shareholders [1][6]. Group 1: Dividend and Share Buybacks - ExxonMobil has increased dividend payments for 43 consecutive years, ranking as the second-largest dividend payer among S&P 500 companies. The company is expected to buy back $20 billion of its shares in 2025 and maintain this pace in the following year [2][6]. Group 2: Financial Resilience - Despite its vulnerability, ExxonMobil has demonstrated resilience through various business cycles, attributed to its access to low-cost oil and natural gas resources and a strong balance sheet. The company's debt-to-capitalization ratio is 13.6%, significantly lower than the industry average of 29.2% [3][6]. Group 3: Comparison with Peers - Other companies like Diamondback Energy Inc. (FANG) and ConocoPhillips (COP) also show resilience due to lower debt exposure. FANG's debt-to-capitalization is 26.3%, while COP's is 26.6%. Both companies operate in the Permian Basin, which helps them navigate low oil prices [4]. Group 4: Stock Performance and Valuation - XOM shares have increased by 19.9% over the past year, outperforming the industry average of 15.3%. The stock trades at an EV/EBITDA of 8.40X, above the industry average of 5.31X [5][8][6]. Group 5: Earnings Estimates - The Zacks Consensus Estimate for XOM's 2026 earnings has seen upward revisions recently, with current estimates at $6.95 for the year, up from $6.93 a week ago [10][11].