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 SheetsLike 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 & EstimatesShares of XOM have plunged 4.3% over the past year compared with the industry’s 2.3% decline. Image Source: Zacks Investment ResearchFrom 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.Image Source: Zacks Investment ResearchThe 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.One Big Gain, Every Trading DayTo help you take full advantage of this market, you’re invited to access every stock recommendation in all our private portfolios - for just $1.Zacks private portfolio services that closed 256 double and triple-digit winners in 2024 alone. That’s about one big gain every day the market was open. Of course, not all our picks are winners, but members have seen recent gains as high as +627% +1,340%, and +1,708%.Imagine how much you could profit with a steady stream of real-time picks from all our services that cover a number of strategies to suit a variety of investing and trading styles.See Stocks Now >>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 Chevron Corporation (CVX): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report ConocoPhillips (COP): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks