Here is Why Exxon Mobil (XOM) is an Absolute Favorite Among Billionaire Investors

With 16 billionaire investors in the Insider Monkey database at the end of Q1 2025, Exxon Mobil Corporation (NYSE:XOM) is included among The 5 Energy Stocks Billionaires are Quietly Piling Into.

Exxon Mobil Corporation (NYSE:XOM) is one of the largest integrated fuels, lubricants, and chemical companies in the world. The company operates facilities and markets products around the globe and explores oil and natural gas on six continents.

Exxon Mobil Corporation (NYSE:XOM)’s vast global scale, strong balance sheet, strict financial discipline, generous payouts, and aggressive growth make it the absolute favorite energy stock among billionaires. The oil and gas behemoth has increased its earnings at an annual rate of roughly 30% over the last five years, with its cash flow also rising at a CAGR of roughly 15% during the period. Exxon aims to continue this momentum, with a target to add a further $20 billion in earnings and $30 billion in cash flow by the end of the decade.

Exxon Mobil Corporation (NYSE:XOM) also remains focused on reducing costs, especially given the current low-priced environment. Since 2019, the company has achieved $12.1 billion in structural cost savings, outperforming its industry peers while helping to mitigate inflationary pressures and expansion costs. Moreover, Exxon continues to invest in efficiency, with a goal of achieving a break-even of $35 per barrel by 2027 and $30 per barrel by 2030.

Exxon Mobil Corporation (NYSE:XOM) is known for its commitment to shareholders, having distributed more than $125 billion in dividends and buybacks over the last five years. The company has announced plans to repurchase $20 billion in shares annually through 2026 and has raised its payouts for 42 consecutive years, putting it among the Best Dividend Stocks to Buy According to Billionaires.

If you are curious about the current state of the global energy industry and its top performers according to billionaires, take a look at the complete video here.

While we acknowledge the potential of XOM as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.