West Texas Intermediate (WTI) crude oil is currently trading above $85 per barrel, according to Oilprice.com. While this is lower than the recent peak of over $100 per barrel, the price remains favorable for ExxonMobil Holdings Corporation (XOM). The company's exploration and production activities, which drive most of its earnings, are benefiting from this pricing environment.
ExxonMobil has a strong presence in the Permian Basin, the most productive oil and gas region in the United States, and offshore Guyana. In the Permian, the company is using advanced drilling techniques and artificial intelligence to enhance production efficiency and reduce costs. In Guyana, ExxonMobil has made several significant oil and gas discoveries, reinforcing its positive production outlook. Both regions have low breakeven costs, contributing to the company's strong financial performance.
Other major oil companies like Chevron Corporation (CVX) and ConocoPhillips (COP) are also poised to benefit from the high oil prices. ConocoPhillips, which generates a substantial portion of its revenue from crude oil, has low-cost drilling opportunities in the Permian, Eagle Ford, and Bakken regions. Chevron is experiencing production growth in the Permian, positioning it well to capitalize on the current oil price environment.
ExxonMobil's stock has increased by 40.4% over the past year, outperforming the industry's growth of 34.9%. The company's trailing 12-month enterprise value to EBITDA (EV/EBITDA) ratio stands at 7.87X, which is higher than the industry average of 5.96X. However, the Zacks Consensus Estimate for ExxonMobil's 2026 earnings has seen downward revisions over the past week. Despite this, ExxonMobil currently holds a Zacks Rank #2 (Buy).