Here's How XOM Is Using CCS to Cut Emissions & Power Data-Driven World

Air quality is deteriorating across many regions due to rising emissions from transportation, heavy industry, and urbanization, posing serious risks to public health and the environment. As a result, improving air quality through cleaner fuels, stricter emission standards, and sustainable technologies has become a global priority. To meet these challenges, Exxon Mobil Corporation XOM is expanding its carbon capture and storage (CCS) operations along the U.S. Gulf Coast—a vital industrial and energy-producing corridor—as part of its Low-Carbon Business.

XOM expects to expand its footprint for capturing carbon emissions at industrial sources by launching multiple CCS projects in Texas and Louisiana in 2026. However, the CCS operations are expected to be carried out in partnership with Linde and Nucor.

Due to increased global demand for data and computing power, ExxonMobil plans to supply electricity using natural gas while capturing and storing the carbon emissions. This enables data centers to meet growing power needs with much lower emissions than traditional fossil-fuel power. By the end of 2026, XOM will decide whether to build its first low-carbon data center.

BP & CVX Are Involved in Reducing Emissions Like XOM

Other leading integrated energy giants Chevron Corporation CVX and BP p.l.c. BP are also investing in their low-carbon businesses to improve air quality. BP has CCS facilities in the U.K., while CVX has major CCS projects in Australia. To lower costs and emissions, BP can produce green hydrogen from low-cost renewable electricity or generate blue hydrogen by combining natural gas with carbon capture. Notably, Chevron surpassed 11 million tons of CO??? injected into underground storage by November 2025.

XOM’s Price Performance, Valuation & Estimates

ExxonMobil’sshares have gained 24.8% over the past year compared with the 17.2% improvement of the composite stocks belonging to the industry.

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 8.71X. This is above the broader industry average of 5.43X.

The Zacks Consensus Estimate for the to-be-reported quarter has been unchanged over the past seven days. Meanwhile, for 2025 and first-quarter 2026, XOM's earnings estimates have seen downward revisions.

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

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

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