I'm Not Selling ExxonMobil, Even With Oil Prices Where They Are
Key Points
ExxonMobil's stock has increased by 33% since the start of the year, driven by soaring oil prices.
In the second quarter, the oil and gas giant's free cash flow surpassed $17 billion.
The company continues to reward shareholders through dividends and share repurchases.
- 10 stocks we like better than ExxonMobil ›
The ongoing conflict in Iran has sent oil prices soaring, and ExxonMobil (NYSE: XOM) stock has surged. Since the start of the year, the oil and gas stock has gained 33%.
Amid ongoing geopolitical uncertainty, Brent Crude still trades near $90 per barrel. Despite the elevated oil prices and the prospect of a ceasefire, I wouldn't sell ExxonMobil stock. Here's why.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
ExxonMobil posted stellar second-quarter results
ExxonMobil, with its massive integrated oil and gas business, has done quite well amid elevated oil and fuel prices. In the second quarter, Exxon's production (excluding the Middle East) reached its highest level in two decades, at 4.1 million barrels of oil equivalent per day.
During the period, the company's cash flow from operations exceeded $23 billion, while free cash flow exceeded $17 billion. This free cash flow helps fund share buybacks and dividends, as well as capital for investment opportunities. ExxonMobil returned $9.4 billion to shareholders in the quarter, including $4.3 billion in dividends.
Image source: The Motley Fool.
The oil and gas giant has laid the foundation for long-term growth
While near-term results were excellent, ExxonMobil is building for the long haul. Over the past several years, ExxonMobil has taken steps to improve its efficiency and profitability. As part of this, the company has invested in low-cost assets, predominantly in the Permian Basin. The company is also investing in technology to improve extraction abilities, boosting production while lowering costs.
As a result, ExxonMobil targets a breakeven point of $35 per barrel in its Permian assets by 2027 and a $30 breakeven point by 2030. In Q2, Permian production reached a record of over 1.8 million oil-equivalent barrels per day. The company projects volume here to grow 9% compounded annually through 2030.
ExxonMobil has taken steps to improve efficiency, and its low breakevens make it an appealing stock, even if oil prices decline from here. That, and its 43-year streak of growing dividends, make ExxonMobil an attractive energy stock for long-term investors.
Should you buy stock in ExxonMobil right now?
Before you buy stock in ExxonMobil, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and ExxonMobil wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $430,571!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,399,268!*
Now, it’s worth noting Stock Advisor’s total average return is 986% — a market-crushing outperformance compared to 214% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
See the 10 stocks »
*Stock Advisor returns as of August 28, 2026.
Courtney Carlsen has positions in ExxonMobil. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
Recommended Articles
