Can ExxonMobil Navigate Market Turbulence With Its Strong Balance Sheet?

Exxon Mobil Corporation XOM is one of the world’s largest integrated energy companies with operations spanning upstream, downstream and chemicals. Like other oil and gas majors, ExxonMobil is exposed to commodity price volatility. However, the company’s strong balance sheet provides resilience during periods of market uncertainty, allowing it to sustain operations and shareholder returns even when crude prices are under pressure.

With a debt-to-capitalization ratio of just 12.2%, ExxonMobil carries substantially less debt than the broader industry’s 41.06%. At the end of the first quarter of 2025, ExxonMobil reported $30 billion in cash and marketable securities, reflecting a healthy liquidity position.

Coupled with diversified global operations and disciplined capital spending, ExxonMobil is well-positioned to generate robust cash flows and navigate commodity cycles effectively.

COP & CVX Also Have Healthy Balance Sheets

Like XOM, ConocoPhillips COP and Chevron Corporation CVX also have lower debt exposure.

The debt-to-capitalization of COP is 26.7%, while that of CVX is 16.5%. Thus, despite having significant exposure to exploration and production activities, both COP and Chevron can lean on their balance sheet to combat periods of low oil prices.

XOM’s Price Performance, Valuation & Estimates

Shares of XOM have plunged 4.3% over the past year compared with the industry’s 2.3% decline. 

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.93X. This is above the broader industry average of 4.36X.

The Zacks Consensus Estimate for XOM’s 2025 earnings has been revised upward over the past seven days.

XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research