Strong Cash Flow Keeps ExxonMobil Ahead in a Volatile Energy Market

Exxon Mobil Corporation XOM continues to demonstrate robust financial strength built on consistent free cash flow generation across its integrated operations, including upstream, downstream and chemicals. During its second-quarter 2025 earnings release, ExxonMobil reported free cash flow of $5.4 billion. This strong cash flow supports the company’s ability to fund shareholder returns, reduce debt and make strategic investments in high-return projects despite commodity price volatility.

Unlike some peers who may rely heavily on upstream scale alone, ExxonMobil’s diversified global portfolio and operational scale provide it with substantial financial flexibility and resilience. This allows the company to pursue strong growth opportunities while maintaining a robust balance sheet, positioning it well to navigate the ongoing energy transition and market uncertainties.

CVX & SHEL Deliver Solid Cash Flow Too

Like XOM, Chevron Corporation CVX and Shell plc SHEL also report solid free cash flow.

Chevron reported about $4.9 billion in free cash flow. The company remains focused on expanding U.S. shale output, particularly in the Permian Basin, while also advancing large international projects that support long-term growth.

Shell, meanwhile, reported $6.5 billion in free cash flow for the quarter. Its strategy remains anchored to liquefied natural gas (“LNG”), where it maintains the world’s largest portfolio, alongside a trading and optimization business that adds earnings resilience.

XOM’s Price Performance, Valuation & Estimates

Shares of XOM have lost 6.1% over the past year against the industry’s loss of 2.3%.

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 7.02X. This is above the broader industry average of 4.32X.

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

ExxonMobil 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