Track market-moving stories before they get noisy

3 Stocks to Buy and Hold for Higher Interest RatesExxonMobil NYSE: XOM Chief Financial Officer Neil Hansen said the company is relying on technology, project execution and operational performance to support long-term shareholder returns as energy markets navigate supply disruptions and higher refining margins.

Speaking at the Barclays Energy-Power Conference, Hansen said the company’s strategy is designed to operate across commodity-price cycles and changing energy systems. He cited ExxonMobil’s ability to execute major projects at lower cost and faster speed than competitors, as well as its efforts to centralize operating organizations across the enterprise.

Get ExxonMobil alerts:

Striking Oil: How the U.S. Play for Venezuela Fuels Supermajors“We want to be defined by what we do well, not necessarily by the products that we produce,” Hansen said.

Supply disruption shifts pressure toward refining Addressing the Middle East supply disruption and conditions surrounding the Strait of Hormuz, Hansen said the situation underscored the importance of affordable and reliable energy. He said market mechanisms have largely responded as expected, including releases from commercial and strategic inventories, higher supply from countries including the United States and Brazil, and demand destruction in chemicals and refining.

The 2026 Blueprint: 6 Stocks for a Brand New PortfolioFor the most part, oil prices have settled into a relatively range-bound environment, he said. However, ExxonMobil sees refining as the current pinch point in the energy system.

Hansen attributed higher refining margins partly to products not leaving the Middle East and reduced availability of crude needed by Asian refineries. He also cited developments involving Ukraine and Russia, as well as lower Chinese product exports.

He said ExxonMobil’s integrated model helps the company capture value as it moves among stages of the value chain. The company has organized itself around value chains spanning feedstocks, manufacturing, logistics and end consumers, while centralizing functions including supply chain, trading, technology, operations and project execution.

Hansen pointed to the company’s ability to qualify alternative crude supplies for Asian refining and chemical facilities during disruptions around the Strait of Hormuz as an example of how those capabilities can support operations.

Permian synergies exceed initial expectations Hansen said ExxonMobil’s acquisition of Pioneer Natural Resources has performed better than anticipated. The company initially expected to generate about $2 billion annually in synergies from the transaction, but has doubled that amount, according to Hansen.

He described the integration as a “best of both” approach, combining ExxonMobil’s technology and operating capabilities with practices it adopted from Pioneer. The company remains focused on raising recovery rates in the Permian Basin, where Hansen said only a relatively small portion of the resource in the ground is currently recovered.

ExxonMobil is advancing 40 complementary technologies intended to improve primary and secondary recovery and enhance capital efficiency, he said. Some of the technologies could produce equivalent volumes with fewer wells. Hansen reiterated the company’s objective of doubling recovery in the Permian and said its outlook for the asset remains optimistic.

On future acquisitions, Hansen said ExxonMobil can remain selective. The company will seek transactions where it can apply its capabilities to create substantially more value than the current owner, rather than pursuing deals simply to add volumes or assets.

LNG growth and Guyana cash flow Hansen said ExxonMobil continues to view the long-term fundamentals for liquefied natural gas as sound. While the company had expected near-term market length entering the year, he said Middle East developments have pushed that expectation out.

The company’s priority in LNG is to bring on advantaged, low-cost supply that can generate high returns, rather than to pursue geographic diversification for its own sake, he said. ExxonMobil’s portfolio includes operations and projects in the Middle East, Papua New Guinea, Mozambique and the U.S. Gulf Coast through Golden Pass.

Hansen also said ExxonMobil recently announced plans with Total in Papua New Guinea under which ExxonMobil will take operatorship and increase its equity interest.

In Guyana, Hansen said the company reached the “desaturation” of its cost bank faster than expected—about two years earlier, even after accounting for oil-price effects. He said the milestone reflects project execution and the performance of existing floating production, storage and offloading vessels.

ExxonMobil has recovered approximately $55 billion of costs in Guyana, Hansen said. While the development is expected to result in slightly lower entitled volumes—estimated at about 100,000 barrels per day beginning in the third quarter—he said it is expected to double free cash flow between 2025 and 2030.

The company’s fifth Guyana FPSO is already in the water, and ExxonMobil is working to advance a ninth vessel, he said. Hansen added that quicker cost recovery will increase receipts for the Guyanese government.

Focus extends beyond 2030 Hansen said ExxonMobil has growing confidence in its plan to add $25 billion in earnings and $35 billion in cash flow through 2030, with earnings growth moving closer to $30 billion. He said the company is also pursuing opportunities beyond that period, including LNG projects, frontier exploration, undeveloped discovered resources, Proxxima resins and graphite for batteries.

In Proxxima, Hansen said the company has demonstrated value in uses such as lighter rebar and coatings requiring fewer applications. ExxonMobil has made a final investment decision on a blend plant intended to produce up to 120,000 KTA of resins, he said. In graphite, the company is working with original equipment manufacturers to demonstrate faster battery charging, more capacity and longer duration.

Hansen said future structural savings are expected to come increasingly from ExxonMobil’s centralized organizational model and a new enterprise-wide system, rather than primarily from divestments.

About ExxonMobil (NYSE:XOM)Exxon Mobil Corporation, doing business as ExxonMobil, is an integrated energy company engaged in the exploration, development, production and marketing of crude oil and natural gas. Its upstream operations support oil and natural gas production in multiple regions worldwide, while its downstream businesses refine crude oil into fuels and other petroleum products for commercial, industrial and consumer markets.

Through its product solutions businesses, ExxonMobil manufactures and markets lubricants, specialty fluids, petroleum-derived products and chemical products, including commodity and performance chemicals used in packaging, automotive components, construction materials and other industrial applications.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

Should You Invest $1,000 in ExxonMobil Right Now?Before you consider ExxonMobil, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and ExxonMobil wasn't on the list.

While ExxonMobil currently has a Hold rating among analysts, top-rated analysts believe these five stocks are better buys.

View The Five Stocks Here

The AI boom extends far beyond the biggest tech names. Discover 10 companies supplying the memory, storage, networking, semiconductor manufacturing, and power infrastructure that make AI possible. Learn where the next wave of AI investment opportunities may emerge—and the key risks investors should watch as the global AI buildout accelerates.

Get This Free Report

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

ExxonMobil Holdings Corporation ("ExxonMobil") (NYSE: XOM) today announces that its wholly owned subsidiary, Pioneer Natural Resources Company (the "Offeror") is offering to purchase for cash any and all of its outstanding $1,100,000,000 1.900% Senior Notes due 2030 (the “2030 Notes”) and $1,000,000,000 2.150% Senior Notes due 2031 (the “2031 Notes”, and together with the 2030 Notes, the “Notes”).

Holders will receive a price equal to the Total Consideration based on the applicable Reference Yield and the applicable Fixed Spread plus Accrued Interest (each as defined below) (in the case of each of the 2030 Notes and the 2031 Notes, a "Tender Offer" and together, the “Tender Offers”).

Each Tender Offer is being made upon the terms and subject to the conditions set forth in the Offer to Purchase dated September 8, 2026 (the "Offer to Purchase"). Terms not defined in this announcement have the meanings given to them in the Offer to Purchase.

Upon the terms and subject to the conditions set forth in the Offer to Purchase, the Offeror is offering to purchase any and all of the Notes, as set forth in the table below. Notes purchased in the Tender Offers will be cancelled. Neither Tender Offer is conditioned on any minimum principal amount of Notes being tendered. The consummation of each Tender Offer is subject to, and conditioned upon, the satisfaction or waiver, where permitted, of the conditions discussed in the Offer to Purchase.

Title of Notes

Principal Amount

Outstanding

ISIN/CUSIP

Reference Security(1)

Fixed Spread(1)

Bloomberg Reference

Page

1.900% Senior Notes due 2030

$1,100,000,000

ISIN NO. US723787AQ06

CUSIP NO. 723787 AQ0

4.375% UST due August 31, 2031

30 bps

FIT1

2.150% Senior Notes due 2031

$1,000,000,000

ISIN NO. US723787AR88

CUSIP NO. 723787 AR8

4.375% UST due August 31, 2031

35 bps

FIT1

(1)

The "Total Consideration" per $1,000 principal amount of Notes of each series validly tendered at or prior to the Expiration Date and not validly withdrawn and accepted for purchase will be calculated as described in the Offer to Purchase using the applicable Fixed Spread. See "Description of the Tender Offers—Total Consideration" in the Offer to Purchase. The Total Consideration does not include accrued and unpaid interest on such Notes from the last interest payment date with respect to such Notes to, but not including, the Settlement Date (the "Accrued Interest"), which will be paid in addition to the Total Consideration.

Each Tender Offer will expire at 5:00 p.m., New York City time, on September 14, 2026, unless extended or earlier terminated (such date and time, as the same may be extended or earlier terminated, the "Expiration Date"). Holders who desire to participate in the Tender Offers must validly tender their Notes at or prior to the applicable Expiration Date. Tenders of Notes may be validly withdrawn at any time on or prior to the applicable Expiration Date but tenders will thereafter be irrevocable, except in certain limited circumstances where additional withdrawal rights are required by law.

Neither Tender Offer is conditioned on any minimum principal amount of Notes being tendered. Notes may be tendered only in principal amounts equal to the minimum denomination of $1,000 and integral multiples of $1,000 in excess thereof.

Upon the terms and subject to the conditions set forth in the Offer to Purchase, Holders who validly tender and who do not validly withdraw Notes at or prior to the applicable Expiration Date and whose Notes are accepted for purchase by the Offeror will receive the "Total Consideration". The Total Consideration payable for the Notes will be a price per $1,000 principal amount of Notes, calculated with reference to the Settlement Date, that would reflect a yield to the applicable maturity date of such Notes equal to the sum of (i) the applicable Reference Yield determined at the Price Determination Time, plus (ii) the applicable Fixed Spread. The Total Consideration payable for each of the 2030 Notes and the 2031 Notes will be determined as set out in the calculation in Schedule A to the Offer to Purchase.

The "Reference Yield" means the bid side yield to maturity, determined in accordance with market convention, of the applicable Reference Security, based on the bid price for the applicable Reference Security as reported on the applicable Bloomberg Reference Page at the Price Determination Time. The sum of the applicable Fixed Spread and the applicable Reference Yield is referred to as the "Repurchase Yield".

The "Price Determination Time" is expected to be 2:00 p.m., New York City time, on September 14, 2026.

In addition to the Total Consideration, Holders whose Notes are accepted for purchase will be paid the Accrued Interest on the Settlement Date. Interest will cease to accrue on the Settlement Date for all Notes accepted in either Tender Offer. The Settlement Date will promptly follow the Expiration Date and is expected to be September 16, 2026, which is the second business day after the Expiration Date, unless extended.

Holders are advised to check with any bank, securities broker or other intermediary through which they hold their Notes as to when such intermediary needs to receive instructions from a Holder in order for that Holder to be able to participate in either Tender Offer before the deadlines specified herein and in the Offer to Purchase. The deadlines set by any such intermediary and the Depository Trust Company for the submission and withdrawal of tender instructions will also be earlier than the relevant deadlines specified herein and in the Offer to Purchase.

The results of each Tender Offer are expected to be announced promptly following the Expiration Date. This press release will be available on https://corporate.exxonmobil.com/. Copies of the Offer to Purchase are available to holders of the Notes ("Holders") through the Tender and Information Agent, Global Bondholder Services Corporation at its website https://www.gbsc-usa.com/pioneer/ or by calling (212) 430-3774 (bank and brokers call collect) or (855) 654-2014 (all others please call toll-free).

The Dealer Manager for each Tender Offer is:

Citigroup
388 Greenwich Street, 4th Floor
New York, NY 10013
Toll-Free: +1 (800) 558-3745
Collect: +1 (212) 723-6106
Email: [email protected]
Attention: Liability Management Group

The Tender and Information Agent for each Tender Offer is:
Global Bondholder Services Corporation
65 Broadway – Suite 404
New York, New York 10006 Attn: Corporate Actions

Bank and Brokers Call Collect: (212) 430-3774
All Others Please Call Toll Free: (855) 654-2014
E-mail: [email protected]
Tender Offer Website: https://www.gbsc-usa.com/pioneer/

Non-U.S. Distribution Restrictions

United Kingdom. The communication of this announcement, the Offer to Purchase and any other documents or materials relating to either Tender Offer is not being made by and such documents and/or materials have not been approved by an "authorised person" for the purposes of section 21 of the Financial Services and Markets Act 2000 (as amended, the "FSMA"). Accordingly, such documents and/or materials are not being distributed to, and must not be passed on to, the general public in the United Kingdom. The communication of such documents and/or materials is exempt from the restriction on financial promotions under section 21(1) of the FSMA on the basis that it is only directed at and may only be communicated to and may only be acted upon by: (1) persons who are outside of the United Kingdom; (2) investment professionals falling within the definition contained in Article 19(5) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 (as amended, the "Order"); (3) those persons who are existing members or creditors of the Offeror or other persons falling within Article 43(2) of the Order; (4) a qualified investor as defined in paragraph 15 of Schedule 1 to the Public Offers and Admissions to Trading Regulations 2024 (“POATRs”), or (5) any other persons to whom such documents and/or materials may lawfully be communicated in accordance with the Order (all such persons together being referred to as "relevant persons"). This announcement and any other documents or materials relating to either Tender Offer are only available to relevant persons. Consequently, no disclosure document required by the FCA Product Disclosure Sourcebook (“DISC”) for offering, selling or distributing the Notes or otherwise making them available to retail investors in the UK has been prepared and therefore offering, selling or distributing the Notes or otherwise making them available to any retail investor in the UK may be unlawful under DISC and the Consumer Composite Investments (Designated Activities) Regulations 2024. This announcement and any other documents or materials relating to the Tender Offers have been prepared on the basis that the Offer to Purchase in the UK will be made pursuant to an exemption from the prohibition on offers to the public under POATRs. This announcement and any other documents or materials relating to the Tender Offers are not a prospectus for the purposes of the POATRs. Any person who is not a relevant person should not act or rely on this document or any of its contents. Any investment or investment activity to which this announcement relates are only available to relevant persons and will be engaged in only with relevant persons.

France. Neither Tender Offer is being made, directly or indirectly, in the Republic of France (other than to qualified investors as described below). This announcement, the Offer to Purchase and any other document or material relating to either Tender Offer may not be distributed to the public in the Republic of France and have only been, and shall only be, distributed in the Republic of France to qualified investors as defined in Article 2(e) of Regulation (EU) 2017/1129, as amended (the "Prospectus Regulation") and in accordance with Article L. 411-2, 1° of the French Code monétaire et financier. None of this announcement, the Offer to Purchase nor any other documents or materials relating to either Tender Offer have been or will be submitted for clearance to the Autorité des marchés financiers.

Italy. None of the Tender Offers, this announcement, the Offer to Purchase or any other documents or materials relating to either Tender Offer have been or will be submitted to the clearance procedure of the Commissione Nazionale per le Società e la Borsa ("CONSOB") pursuant to applicable Italian laws and regulations. Each Tender Offer is being carried out in the Republic of Italy ("Italy") as an exempted offer pursuant to article 101-bis, paragraph 3-bis of the Legislative Decree No. 58 of February 24, 1998, as amended (the "Financial Services Act") and article 35-bis, paragraph 4 of CONSOB Regulation No. 11971 of May 14, 1999, as amended. Holders or beneficial owners of the Notes that are resident or located in Italy can tender their Notes for purchase through authorized persons (such as investment firms, banks or financial intermediaries permitted to conduct such activities in Italy in accordance with the Financial Services Act, CONSOB Regulation No. 20307 of February 15, 2018, as amended, and Legislative Decree No. 385 of September 1, 1993, as amended) and in compliance with any other applicable laws and regulations and with any requirements imposed by CONSOB or any other Italian authority. Each intermediary must comply with applicable laws and regulations concerning information duties vis-à-vis its clients in connection with the Notes or the Offer to Purchase.

Belgium. None of this announcement, the Offer to Purchase nor any other documents or materials relating to either Tender Offer have been, or will be, submitted or notified to, or approved or recognized by, the Belgian Financial Services and Markets Authority ("Autorité des services et marchés financiers"/"Autoriteit voor Financiële Diensten en Markten"). Neither Tender Offer is being made in Belgium by way of a public offering within the meaning of Articles 3, §1, 1° and 6, §1 of the Belgian Law of April 1, 2007 on public takeover bids ("loi relative aux offres publiques d'acquisition"/"wet op de openbare overnamebiedingen"), as amended or replaced from time to time. Accordingly, neither Tender Offer may be, or is being, advertised and neither Tender Offer will be extended and this announcement, the Offer to Purchase and any other documents or materials relating to either Tender Offer (including any memorandum, information circular, brochure or any similar documents) may not, have not, and will not, be distributed or made available, directly or indirectly, to any person in Belgium other than to "qualified investors" ("investisseur qualifié"/"gekwalificeerde belegger") within the meaning of Article 2(e) of the Prospectus Regulation acting on their own account. Insofar as Belgium is concerned, each Tender Offer is made only to qualified investors, as this term is defined above. Accordingly, the information contained in this announcement, the Offer to Purchase or in any other documents or materials relating to either Tender Offer may not be used for any other purpose or disclosed or distributed to any other person in Belgium.

This announcement is for informational purposes only and is not an offer to purchase, a solicitation of an offer to purchase or a solicitation of consents with respect to any Notes. This announcement does not describe all the material terms of either Tender Offer and no decision should be made by any Holder on the basis of this announcement. The terms and conditions of each Tender Offer are described in the Offer to Purchase. This announcement must be read in conjunction with the Offer to Purchase. The Offer to Purchase contains important information which should be read carefully before any decision is made with respect to either Tender Offer. If any Holder is in any doubt as to the contents of this announcement, or the Offer to Purchase, or the action it should take, it is recommended to seek its own financial and legal advice, including in respect of any tax consequences, immediately from its stockbroker, bank manager, solicitor, accountant or other independent financial, tax or legal adviser. Any individual or company whose Notes are held on its behalf by a broker, dealer, bank, custodian, trust company or other nominee must contact such entity if it wishes to tender such Notes pursuant to either Tender Offer.

None of the Offeror, ExxonMobil, the Dealer Manager or their affiliates, or the Tender and Information Agent makes any recommendation, or has expressed an opinion, as to whether or not Holders should tender their Notes held by them pursuant to either Tender Offer, or refrain from doing so. Each Holder should make its own decision as to whether to tender its Notes and if so, the principal amount of the Notes to tender.

The Offeror has not filed this announcement or the Offer to Purchase with, and they have not been reviewed by, any federal or state securities commission or regulatory authority of any other country. No authority has passed upon the accuracy or adequacy of either Tender Offer, and it is unlawful and may be a criminal offense to make any representation to the contrary.

The Offer to Purchase does not constitute an offer to purchase Notes in any jurisdiction in which, or to or from any person to or from whom, it is unlawful to make such offer under applicable securities or blue sky laws. The distribution of the Offer to Purchase in certain jurisdictions is restricted by law. Persons into whose possession the Offer to Purchase comes are required by each of the Offeror, ExxonMobil, the Dealer Manager and the Tender and Information Agent to inform themselves about, and to observe, any such restrictions.

Cautionary note regarding forward-looking statements

Certain statements contained in this announcement are, or may be deemed to be, "forward-looking statements" (including for purposes of the safe harbor provisions for forward-looking statements contained in Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934).

Forward-looking statements give the Offeror’s current expectations and projections about future events, including strategic initiatives and future financial condition and performance, and so the Offeror’s actual results may differ materially from what is expressed or implied by such forward-looking statements. Forward-looking statements sometimes use words such as "expects," "anticipates," "believes," "targets," "plans," "intends," "aims," "projects," "indicates," "may," "might," "will," "should," "potential," "could" and words of similar meaning (or the negative thereof). All statements, other than statements of historical facts, included in this announcement are forward-looking statements. Such forward-looking statements include, but are not limited to, statements relating to future events; projections; descriptions of strategic, operating, and financial plans and objectives; statements of future ambitions and plans; future earnings power; potential addressable markets; and other statements of future events or conditions.

Any forward-looking statements made by or on behalf of the Offeror speak only as of the date they are made and are based upon the knowledge and information available to the Offeror on the date of this announcement. These statements and views may be based on a number of assumptions and, by their nature, involve known and unknown risks, uncertainties and other factors because they relate to events and depend on circumstances that may or may not occur in the future and/or are beyond ExxonMobil’s control or precise estimate. Subject to our obligations under U.S. law in relation to disclosure and ongoing information, we undertake no obligation to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

About ExxonMobil

ExxonMobil, one of the largest publicly traded international energy and petrochemical companies, creates solutions that improve quality of life and meet society’s evolving needs.

The corporation’s primary businesses - Upstream, Product Solutions and Low Carbon Solutions – provide products that enable modern life, including energy, chemicals, lubricants, and lower emissions technologies. ExxonMobil holds an industry-leading portfolio of resources, and is one of the largest integrated fuels, lubricants, and chemical companies in the world. ExxonMobil also owns and operates the largest CO2 pipeline network in the United States. In 2021, ExxonMobil announced Scope 1 and 2 greenhouse gas emission-reduction plans for 2030 for operated assets, compared to 2016 levels. The plans are to achieve a 20-30% reduction in corporate-wide greenhouse gas intensity; a 40-50% reduction in greenhouse gas intensity of upstream operations; a 70-80% reduction in corporate-wide methane intensity; and a 60-70% reduction in corporate-wide flaring intensity. To learn more, visit exxonmobil.com and ExxonMobil’s Advancing Climate Solutions.

Public Company Information: NYSE: XOM

View source version on businesswire.com: https://www.businesswire.com/news/home/20260908938146/en/

SummaryExxonMobil maintains a buy rating, supported by strong free cash flow, disciplined capex, and attractive valuation.Q2 saw record upstream output, $18.9B free cash flow, and $5.1B in buybacks, offsetting mixed earnings and refining weakness.Management targets $25B earnings and $35B cash flow growth by 2030, with advantaged assets driving production to 5.5M boe/d.Technicals remain bullish, with rising moving averages and RSI momentum; price target is updated to $179 based on 17x forward earnings. ridham supriyanto/iStock Editorial via Getty Images

ExxonMobil (XOM) continues to benefit from higher oil and product prices amid the ongoing conflict in Iran. For the year, WTI is up 59%, while shares of the largest US oil company are higher by

9.7K Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

Motiva Enterprises and Exxon Mobil Corp (XOM.N) are preparing their East Texas refineries for ​high winds and possible flooding as a developing tropical storm nears ‌the U.S. Gulf Coast, people familiar with plant operations said on Monday.

Motiva and Exxon have not reduced production at their Port Arthur and Beaumont, Texas refineries, respectively, but they ​have secured loose items and equipment that can be blown by high ​winds or drift in flood waters should those be produced ⁠by the developing storm expected to make landfall on Tuesday, the sources said.

Exxon ​spokesperson Kelly Davila said on Monday the company was monitoring the storm and ​both its Beaumont and Baytown, Texas, refineries continued to operate normally.

A Motiva spokesperson did not reply to a request for comment.

Cheniere Energy (LNG.N) and Freeport LNG said they were monitoring the ​storm. Cheniere added it would take steps to modify operations if necessary, ​but there had been no impact on production so far.

Cheniere operates liquefied natural gas plants ‌at Sabine ⁠Pass on the Texas-Louisiana border and Corpus Christi, Texas.

Freeport LNG's plant is in Freeport, Texas.

The U.S. National Hurricane Center forecasts the storm, currently called Tropical Depression 5, to become Tropical Storm Edouard before making landfall near Port Arthur ​on Tuesday.

Edouard is not ​expected to reach ⁠hurricane strength and is forecast to produce winds no more than 58 miles per hour (93 kph), according to the ​hurricane center.

Exxon on Monday afternoon activated its Incident Command System, ​the sources ⁠said.

Valero Energy Corp (VLO.N) has not modified operations at its 235,000-barrel-per-day (bpd) Port Arthur refinery, sources at the refinery said.

The Motiva Port Arthur refinery is the nation's largest with ⁠a ​crude oil processing capacity of 656,400 bpd. Exxon's ​Beaumont refinery can intake 612,000 bpd while the Baytown refinery, on the east side of Houston, can ​process 564,000 bpd.

Key Takeaways ExxonMobil posted record Q2 production and a 21.1% revenue beat, while adjusted EPS missed by 4.3%.Permian output topped 1.8M boe/d, while Guyana's fifth FPSO is set to add 250,000 bpd of capacity.Middle East disruptions cut about 10% of Q2 upstream output, adding near-term production risk for XOM. ExxonMobil Holdings Corporation (XOM - Free Report) paired sharply higher second-quarter revenues with record production marks, but adjusted earnings still missed expectations. The mix shows how volume growth and tighter product markets can lift results while costs and regional disruption remain material earnings variables.

Advantaged Permian and Guyana assets support future volumes and cash generation. Refining, chemicals and Middle East exposure, however, leave results sensitive to market conditions outside the company’s control.

XOM's Q2 Beat on Sales Came With an Earnings MissAdjusted earnings of $3.52 per share missed the Zacks Consensus Estimate of $3.68 by 4.3%. Revenues of $116 billion beat the consensus mark by 21.1% and increased 42.3% year over year.

Higher scheduled-maintenance expenses and increased depreciation weighed on earnings, while Middle East conditions disrupted production. The revenue beat therefore did not fully offset operating and cost pressures.

ExxonMobil Set New Upstream Production HighsUpstream production totaled 4.514 million oil-equivalent barrels per day in the second quarter. ExxonMobil’s broader plan shows production rising from 4.3 million oil-equivalent barrels per day (Moebd) in 2024 to 4.6 million year to date in 2026 and about 5.5 million by 2030. Advantaged assets increased from 52% of upstream production in 2024 to 59% year to date in 2026 and are planned at about 65% by 2030.

Image Source: ExxonMobil Holdings Corporation

Permian output exceeded a record 1.8 million oil-equivalent barrels per day, with management targeting a 9% production compound annual growth rate through 2030. The fifth Guyana floating production, storage and offloading vessel is slated to start in the fourth quarter, adding 250,000 barrels per day of capacity. Chevron Corporation (CVX - Free Report) also reported record U.S. upstream production of nearly 2.1 million oil-equivalent barrels per day in the second quarter.

XOM's Product Solutions Rebound Shows CyclicalityEnergy Products generated $4.10 billion of adjusted earnings as stronger refining conditions, optimization and structural savings supported results. Chemical Products adjusted earnings rose to $1.21 billion from $110 million in the first quarter.

The sequential gains also highlight cyclicality. Refining and chemical earnings remain exposed to margins, feedstock costs, trading results and supply conditions, leaving room for sharp swings as markets change.

ExxonMobil's Middle East Exposure Adds Q3 RiskMiddle East assets represent about 20% of ExxonMobil’s global oil-equivalent production. The conflict temporarily removed about 10% of total upstream production during the second quarter, making regional conditions an important near-term volume variable.

A full-quarter Strait of Hormuz closure in the third quarter could reduce Middle East production by about 750,000 oil-equivalent barrels per day versus 2025. Shell plc (SHEL - Free Report) reported Integrated Gas production of 631,000 oil-equivalent barrels per day in the second quarter, down from 909,000 in the first quarter as Qatar-related disruptions reduced volumes.

XOM's Cash Flow Supports Heavy Investment and ReturnsExxonMobil generated $17.2 billion of free cash flow while cash capital expenditures totaled $6.8 billion in the second quarter. That capacity supports continued investment in the Permian, Guyana and liquefied natural gas projects through volatile conditions.

Shareholder distributions reached $9.4 billion, including $4.3 billion of dividends and $5.1 billion of share repurchases. Net debt fell by more than $7 billion during the quarter, preserving financial flexibility for growth and capital returns.

XOM's Style Strength Tempers the Event RiskExxonMobil exits the quarter with a clear trade-off. Advantaged production growth and stronger Product Solutions earnings support cash generation, but commodity sensitivity and Middle East disruption can still reduce earnings visibility.

The stock currently carries a Zacks Rank #3 (Hold), which points to a neutral short-term stance. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Its Value Score of A, Growth Score of A, Momentum Score of A and VGM Score of A indicate favorable characteristics across all three styles, but the Style Scores complement rather than override the Zacks Rank.

Exxon Mobil
XOM -0.64% 76

, the integrated oil-and-gas titan, dropped approximately 1.3% to $162.97 Monday afternoon as crude sank more than 2%. Oil had rallied for two straight weeks as pressure on Iranian exports and restricted Gulf shipping tightened the supply outlook. Then the trade snapped back. The geopolitical premium was real—but never permanent.

Exxon's operating engine remains brutally strong. The company delivered second-quarter operating cash flow of $23.6 billion and free cash flow of $17.2 billion, powered by record Permian production and a massive refining network. That scale gives Exxon several ways to win. It does not need every barrel of oil to carry a crisis premium.

The valuation is where investors should stay sharp. Exxon's $162.97 share price sits 29.24% above its $126.10 GF Value estimate, signaling that plenty of strength may already be priced in. Sanctions could squeeze supply and reignite crude overnight. Weaker demand or diplomatic progress could unwind the premium just as quickly. Exxon can absorb an oil selloff better than most—but its stock will still feel the hit.

Check the Warning Signs for

XOM

now!

ExxonMobil (XOM -0.63%) highlighted in its second-quarter earnings report that it made a Final Investment Decision to expand Proxxima's blending capacity in Louisiana. Unless you follow ExxonMobil closely, and maybe even if you do, you probably have no idea what this material is. Launched in 2023, Proxxima is a proprietary polyolefin thermoset resin system that makes a range of products stronger and lighter than those made from alternative materials.

Here's why the continued expansion of its Proxxima business matters for ExxonMobil investors.

Image source: The Motley Fool.

What is Proxxima? Thermoset resin is a polymer material that permanently hardens through an irreversible chemical process. ExxonMobil used advanced polymer technology to produce a new range of resin systems designed to outperform existing materials. It's Proxxima products are two-part resin systems for composites, coatings, and neat molded polymer applications. They feature a liquid resin formulation for product performance plus a catalyst formulation designed for processing speed.

Proxxima is a high-performance alternative to traditional materials such as epoxy, polyurethane, vinyl ester, and polyester. It's adaptable, lightweight, and incredibly durable. It has a range of current applications, including wind turbine components, coating subsea pipelines, rebar, automotive parts, and industrial coatings.

Today's Change

(

-0.63

%) $

-1.04

Current Price

$

165.11

Proxxima is a big part of ExxonMobil's future Oil and gas remain ExxonMobil's core business. The oil giant plans to invest billions of dollars in the coming years to continue finding and developing new hydrocarbon resources.

However, ExxonMobil's business model is much more diversified than those of other energy companies. It also has refining, chemicals, and lower-carbon energy businesses. Its products solutions segment (energy, chemical, and specialty products) is a meaningful contributor to its earnings. These products generated a combined $9.8 billion in adjusted earnings during the first half of the year, compared to $15.5 billion in adjusted earnings from its upstream oil and gas business.

Proxxima is a small but growing specialty product category for ExxonMobil. The company completed the first phase of the Proxxima business scale-up last year. It completed the retrofit and expansion of a blending facility in Texas, which started operations in June 2025. It also finished a raw materials facility in Texas last year. The company is now moving forward with a 120,000-ton-per-year expansion of Proxxima's blending capacity in Louisiana. This project will add a significant supply to meet growing customer demand.

By 2030, Exxon expects its products solutions business to deliver $9 billion in earnings growth at constant margins compared to 2024's level, with high-value products and new businesses like Proxxima systems and carbon materials contributing 40% of its earnings growth potential. Longer-term, Exxon expects its growing new businesses, including Proxxima, will reach $13 billion in earnings by 2040. It sees a $100 billion future total addressable market opportunity for Proxxima systems and carbon materials.

Building an energy company for the future ExxonMobil will be an oil and gas company for years to come. However, the company is investing in building several new, lower-carbon businesses for the future, including Proxxima. That business is growing due to strong customer demand. It's a core part of Exxon's strategy to build a more diversified and lower-carbon energy company. This strategy is one of the many reasons that make it one of the top oil stocks to buy.

Dividends are great, but what's even better for long-term investors is knowing that they're holding shares of a company that's a true dividend stock, not just a stock that pays a dividend.

Companies become true dividend names by showing unwavering commitment to steadily increasing their payouts. One of the world's largest oil companies, ExxonMobil (XOM -0.63%), is certainly in that camp. ExxonMobil is on a 43-year run of increasing its payout. Those are increases shareholders can set their clocks by, and for those wondering, pencil in the energy stock's next dividend lift. It's likely to arrive in October, as it has over the past several years.

Image source: Getty Images.

Each of the company's 2023 through 2025 increases was $0.04 per share quarterly. That's not much, but those boosts add up over time. That consistency may have some on Wall Street banking on another increase of $0.03 to $0.04 a share, but ExxonMobil can deliver an "October surprise" -- and a positive one at that.

ExxonMobil can enhance dividend excellence In addition to the 43-year payout increase streak, ExxonMobil is the second-largest dividend payer in the S&P 500. Fortunately, a yield of 2.5% and a payout ratio of 52.5% imply two pivotal factors. First, the energy company isn't burdened by its dividend obligations. Second, there's room for payout growth.

How much growth? That's the $64,000 question, but there are credible reasons ExxonMobil could deliver a larger-than-expected dividend increase later this year. As the company noted last December, it was on pace to buy back $20 billion of its shares in 2025 and expected to maintain a similar cadence this year. Retire $40 billion worth of stock over two years, and any company's dividend tab will decline, making it easier to juice payouts to the upside.

ExxonMobil's status as an oil dividend stock royalty is further supported by cold, hard cash. Under its 2030 plan, the oil behemoth raised its 2024 to 2030 earnings and cash flow growth targets to $25 billion and $35 billion, respectively.

Today's Change

(

-0.63

%) $

-1.04

Current Price

$

165.11

Perhaps shortening the odds of a dividend surprise is ExxonMobil's expectation of $145 billion in "surplus cash flow" through 2030. That's based on $65-per-barrel Brent crude prices. Brent closed at nearly $89 on Aug. 20. If that oil contract remains elevated into the fourth quarter, it's possible (not promised) that ExxonMobil could put a little something extra in dividend investors' Halloween goody bags (the dividend increase is often announced around that holiday).

Competitive considerations Corporations are always competing with each other, but the competition isn't limited to business and generating sales. It extends to captivating investors' attention and their dollars. This is particularly true with dividend investors, and ExxonMobil likely knows as much.

These days, there's plenty of competition. Bond yields are high, and a slew of energy companies sport dividend yields well beyond ExxonMobil's 2.5%. Some of those companies boost payouts several times a year.

So while ExxonMobil's yield is more than double that of the S&P 500, that's not saying much, and the energy company may not want to rest on those "laurels." Amid stiff competition for dividend investors' capital, it might be prudent for ExxonMobil to go the extra mile with its next payout increase.

Key Takeaways XOM expects Permian production to reach 2.5 Moebd and total production to hit 5.5 Moebd by decade-end.ExxonMobil's fifth Guyana FPSO is on track for startup by year-end, supporting upstream production growth.XOM targets $25B in earnings growth and $35B in cash-flow growth between 2024 and 2030. ExxonMobil Holdings Corporation (XOM - Free Report) remains well-positioned for continued growth in earnings and cash flows, supported by its advantaged assets and focus on cost efficiency. The company’s earnings are primarily driven by its Upstream segment, aided by advantaged volume growth in Guyana and the Permian Basin. XOM expects its Permian production to reach 2.5 million oil equivalent barrels per day (Moebd) by the end of this decade, while total production is anticipated to reach 5.5 Moebd.

The company continues to invest in production growth from these advantaged upstream assets. In Guyana, ExxonMobil’s fifth FPSO is on track for startup by year-end, while the Longtail development is on the path to reach a final investment decision. New technology deployment and extended-reach development in the Permian Basin are anticipated to enhance well recovery and drive capital efficiency.

XOM’s structural cost savings have reached $16.3 billion since 2019. With the oil price environment remaining favorable for oil and gas producers, XOM is expected to benefit from its focus on production growth. The company intends to deliver approximately $25 billion of earnings growth and $35 billion of cash-flow growth between 2024 and 2030, supported by its advantaged assets, high-value product growth and further cost reductions.

Other Industry Majors With a Low-Cost Production ProfileConocoPhillips (COP - Free Report) and EOG Resources, Inc. (EOG - Free Report) are two other energy firms that own low-cost resource bases in the shale basins of the United States, supporting their profitability.

ConocoPhillips is involved in the exploration and production of crude oil, natural gas liquids (NGLs), bitumen and natural gas. The company boasts a strong asset base in the shale basins of the United States, including the Delaware Basin, Midland Basin, Eagle Ford and Bakken shale. These assets support low-cost production, which enables ConocoPhillips to maintain its profitability and generate free cash flow even during periods of low oil prices.

EOG Resources is a leading independent exploration and production company with operations focused on the prolific acres in the United States as well as several resource-rich international basins. EOG boasts a high-return, low-decline asset base and stands out among the low-cost producers in the United States. The company’s focus on maintaining a resilient balance sheet and lowering production costs should enable it to weather oil price volatility.

XOM’s Price Performance, Valuation & Estimates

Shares of XOM have gained 56.8% over the past year compared with the industry’s growth of 50.4%.

Image Source: Zacks Investment Research

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.27X. This is above the broader industry average of 5.82X.

Image Source: Zacks Investment Research

The Zacks Consensus Estimate for XOM’s 2026 earnings hasn’t seen any revisions over the past seven days.

Image Source: Zacks Investment Research

XOM, COP and EOG each currently carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ExxonMobil (XOM +1.13%) technically missed Wall Street's expectations for the second quarter. Adjusted earnings came in at $3.52 per share, just below the consensus estimate of $3.60. That was enough to trigger a negative reaction. But focusing only on the earnings miss overlooks what was arguably one of ExxonMobil's strongest operating quarters in years.

The company reported $14.5 billion in earnings and $14.7 billion in adjusted earnings, its highest quarterly earnings in roughly four years. ExxonMobil also generated $23.6 billion in cash flow from operations and $17.2 billion in free cash flow, giving it plenty of room to continue investing in growth while returning cash to shareholders.

Operations continue to improve Perhaps the most encouraging numbers weren't on the income statement at all. Exxon delivered its highest upstream production in more than two decades, excluding temporary Middle East disruptions. Production in the Permian Basin reached a record 1.8 million barrels of oil equivalent per day, while the company's fifth floating production vessel for Guyana is scheduled to begin operations in the fourth quarter, adding another 250,000 barrels per day of production capacity.

The downstream business also performed well. Exxon reported record diesel production, helping offset refinery maintenance earlier in the year. Chemical products earned $1.13 billion, while the Energy Products segment rebounded sharply to $5.47 billion after posting a loss during the previous quarter.

Image source: The Motley Fool.

All about the cash One reason Exxon continues separating itself from many competitors is its ability to generate cash across a wide range of commodity prices. During the quarter, the company returned $9.4 billion to shareholders through $4.3 billion in dividends and $5.1 billion in share repurchases. It also reduced net debt by approximately $7 billion, further strengthening an already healthy balance sheet.

Today's Change

(

1.13

%) $

1.79

Current Price

$

160.86

Meanwhile, management continues investing heavily in future production. Year-to-date capital expenditures reached $13 billion, supporting growth in the Permian Basin, Guyana, LNG projects, and higher-value chemical businesses. Exxon also says its cumulative structural cost savings have now reached $16.3 billion, exceeding the combined savings reported by its international oil major peers.

Looking beyond one quarter The earnings miss largely reflected factors that were difficult for analysts to model, including volatile commodity prices, refinery maintenance, and temporary production disruptions in the Middle East. CFO Neil Hansen said the company's underlying business remained strong despite those short-term headwinds.

Quarterly earnings estimates can fluctuate by a few cents for any number of reasons. But production growth, free cash flow, balance-sheet strength, and capital allocation are much better indicators of long-term performance. And Exxon appears to be executing well on all four.

The company continues to expand production from some of the world's lowest-cost oil assets, generate significant cash flow, reduce debt, and return billions of dollars to shareholders. Those are the numbers that ultimately determine long-term value. Yes, the earnings miss may have spooked some investors, but the company's underlying operating performance remains solid.

Key Takeaways ExxonMobil generated $23.6B of operating cash flow despite Middle East disruptions cutting output about 10%.XOM says Guyana recovered $55B of investment and costs, marking an inflection toward higher free cash flow.ExxonMobil's Permian output topped 1.8M oil-equivalent barrels per day as structural savings hit $16.3B. ExxonMobil Holdings Corporation (XOM - Free Report) used its second-quarter 2026 earnings call to stress portfolio resilience through Middle East disruption and stronger downstream margins. Management centered its message on Guyana cash flow, Permian growth and structural cost savings.

Adjusted EPS of $3.52 missed the Zacks Consensus Estimate of $3.68. Revenues of $116.01 billion topped the $Zacks Consensus Estimate of 95.80 billion. 

ExxonMobil Frames Disruption as an Execution TestChairman and CEO Darren Woods said temporary Middle East disruptions reduced upstream production by about 10%, yet ExxonMobil generated $14.5 billion of earnings and $23.6 billion of operating cash flow.

Woods said the integrated portfolio helped keep facilities running and avoid roughly $750 million of annual disruption costs through modeling, fleet reallocations, reformulation and alternate supply.

The company also generated $17.2 billion of free cash flow and returned $9.4 billion to its shareholders through dividends and share repurchases.

XOM Sees a Guyana Cash Flow InflectionWoods said Guyana recovered invested capital and operating costs nearly two years earlier than expected. Gross production reached roughly 900,000 barrels per day in the quarter.

Senior vice president and CFO Neil Hansen told a Wolfe Research analyst that the project has fully recovered $55 billion of investment and costs. Hansen characterized the production-entitlement change as an inflection toward higher free cash flow.

Woods said ExxonMobil is evaluating a ninth FPSO and sees four new exploration prospects identified with AI tools. The fifth FPSO remains on track to start production by year-end.

ExxonMobil Expects Refining Tightness to PersistWoods told a Goldman Sachs analyst that he expects a robust refining market as regional disruptions, lower Chinese exports and Russian refinery outages constrain available capacity.

Management stated that ExxonMobil has high-graded its refining portfolio toward lower supply costs and higher-value products. The company reported record second-quarter diesel production, while U.S. Gulf Coast refinery reliability exceeded 95%.

Hansen added Energy Products has grown from about 9% to roughly 23% of business-line earnings over five years, reflecting refining investments, portfolio high-grading and stronger trading capability.

XOM Pushes Permian Technology at ScaleWoods said Permian production exceeded 1.8 million oil-equivalent barrels per day, another record. He added that more than 40 technology developments are aimed at improving recovery and capital efficiency.

Hansen highlighted 83 four-mile wells drilled year to date and about 1,200 producing wells of at least three miles since 2020.

Woods told a Morgan Stanley analyst that successful technologies can be combined to improve recovery while reducing the number of wells required.

ExxonMobil Extends Structural Cost SavingsWoods said cumulative structural cost savings have reached $16.3 billion since 2019, supported by centralized organizations and tighter value-chain accountability.

Management also added that said ExxonMobil combined upstream operations with its global operations organization on July 1, creating a roughly 31,000-person group across more than 150 sites in 48 countries. Larger process and data platform rollouts are planned for 2027.

Hansen told a Wells Fargo analyst that ExxonMobil still targets $20 billion of cumulative structural savings by 2030. He said annualized 2026 cash operating expenses would be roughly even with 2019 despite inflation and growth.

XOM Keeps Focus on Value and Financial FlexibilityWoods closed with a value-over-volume posture focused on advantaged investments, integration, technology and resilience through disruption.

Hansen and Woods kept execution tied to reliable production, higher-value products, lower structural costs and disciplined shareholder returns.

ExxonMobil’s Zacks Signals Pair Strength With Hold RankXOM carries a Zacks Rank #3 (Hold). Its Value Score and Growth Score are A, Momentum Score is B and VGM Score is A, producing broadly favorable Style Scores. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Under the Zacks Style Scores framework, A and B are the stronger grades, while the Zacks Rank reflects earnings-estimate revision trends over one to three months. The Zacks Rank can change as analysts revise estimates after the just-reported results.

HomeEarnings AnalysisEnergy Analysis

SummaryExxonMobil delivers robust financials, with Q2 2026 revenue at $114.5B and net profit of $14.5B, yet shares trade flat due to market skepticism.Wall Street discounts XOM's current super-profits as cyclical, driven by geopolitical tensions, and applies a forward P/E of 13, reflecting expectations of normalization.XOM's diversified operations, low-cost extraction, and active buybacks ensure resilience and $30B+ annual net profit even at $60 oil, supporting long-term value.My rating is Hold: the stock's current premium and risk of correction on geopolitical de-escalation outweigh immediate upside; wait for tactical relief to add. JHVEPhoto/iStock Editorial via Getty Images

ExxonMobil (XOM) published financial indicators that, at first glance, should have sparked clear optimism. The revenue showed a strong growth. The net profit increased noticeably, and cash flows remain highly strong; however, the reaction of Wall Street turned out to

796 Followers

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.

For the quarter ended June 2026, Exxon Mobil Holdings (XOM - Free Report) reported revenue of $116.02 billion, up 42.3% over the same period last year. EPS came in at $3.52, compared to $1.64 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $95.8 billion, representing a surprise of +21.1%. The company delivered an EPS surprise of -4.35%, with the consensus EPS estimate being $3.68.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Exxon performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Oil-equivalent production per day: 4,514.00 KBOE/D versus 4,237.35 KBOE/D estimated by four analysts on average.Natural gas production available for sale per day - Europe: 274.00 Mcf/D compared to the 262.69 Mcf/D average estimate based on three analysts.Natural gas production available for sale per day - Africa: 117.00 Mcf/D versus the three-analyst average estimate of 113.79 Mcf/D.Natural gas production available for sale per day - Asia: 1,274.00 Mcf/D versus 1,147.92 Mcf/D estimated by three analysts on average.Revenues- Sales and other operating revenue- Specialty Products- Non-U.S.: $3.73 billion versus the two-analyst average estimate of $3.02 billion. The reported number represents a year-over-year change of +19.1%.Revenues- Sales and other operating revenue- Specialty Products- United States: $1.6 billion compared to the $1.66 billion average estimate based on two analysts. The reported number represents a change of +11% year over year.Revenues- Sales and other operating revenue- Upstream- United States: $8.2 billion compared to the $10.19 billion average estimate based on two analysts. The reported number represents a change of +38.1% year over year.Revenues- Sales and other operating revenue- Chemical Products- Non-U.S.: $4.34 billion versus $3.84 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +17.2% change.Revenues- Sales and other operating revenue: $114.53 billion compared to the $97.55 billion average estimate based on two analysts. The reported number represents a change of +44.1% year over year.Revenues- Other income: $595 million versus the two-analyst average estimate of $438.07 million. The reported number represents a year-over-year change of +4.9%.Revenues- Sales and other operating revenue- Specialty Products: $5.24 billion compared to the $4.68 billion average estimate based on two analysts. The reported number represents a change of +14.6% year over year.Revenues- Sales and other operating revenue- Energy Products: $89.54 billion compared to the $72.2 billion average estimate based on two analysts. The reported number represents a change of +49.3% year over year.View all Key Company Metrics for Exxon here>>>

Shares of Exxon have returned +13.4% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Takeaways ExxonMobil posted Q2 adjusted earnings of $3.52 and revenue of $116 billion, topping revenue estimates.ExxonMobil's upstream segment earned $9.19 billion, supported by Permian output above 1.8 million barrels.ExxonMobil generated $17.2 billion in free cash flow and reduced net debt by more than $7 billion. ExxonMobil Holdings Corporation (XOM - Free Report) has reported second-quarter 2026 adjusted earnings of $3.52, missing the Zacks Consensus Estimate of $3.68 by 4.3%. Revenues of $116 billion topped the consensus estimate of $95.8 billion by 21.1%. Adjusted earnings increased from $1.61 in the year-ago quarter, while revenues rose 42.3% year over year from $81.5 billion.

The lower-than-expected quarterly earnings can be attributed to higher expenses due to scheduled maintenance activities and increased depreciation tied to recent investments. The company faced production disruptions related to Middle East conditions.

The results were partially offset by strong operating execution, with upstream production reaching 4,514 thousand oil-equivalent barrels per day and record Permian output above 1.8 million oil-equivalent barrels per day. ExxonMobil highlighted portfolio strength, cost savings and supply-chain optimization as the key contributors to its results.

XOM Benefits From Upstream Production GrowthExxonMobil’s upstream segment remained a major earnings contributor, generating adjusted earnings of $9.19 billion in the second quarter. The company reported its highest upstream production in more than two decades, excluding Middle East disruptions, supported by strong reliability and growth from advantaged assets.

The Permian Basin was a key operational driver, with production exceeding 1.8 million oil-equivalent barrels per day. Management said that Permian growth is expected to support a planned 9% compound annual growth rate through 2030. The fifth Guyana FPSO also set sail, with production startup expected in the fourth quarter and capacity expected to increase by 250 thousand barrels per day.

ExxonMobil Captures Energy Product GainsXOM’s Energy Products segment delivered adjusted earnings of $4.10 billion, helped by stronger refining conditions, optimization efforts and structural savings. Energy Products sales volumes increased to 5,698 thousand barrels per day from 5,630 thousand barrels per day in the prior quarter.

The company achieved record second-quarter diesel production as global supply conditions tightened. Management noted that its integrated system helped redirect products and optimize assets during market disruptions. However, scheduled maintenance affected reported results during the quarter.

XOM Sees Chemical And Specialty RecoveryExxonMobil’s Chemical Products segment posted adjusted earnings of $1.21 billion, improving from $110 million in the first quarter. The company benefited from North American feedstock advantages and stronger chemical margins, with management citing reliability across its Gulf Coast manufacturing assets.

Specialty Products adjusted earnings reached $969 million, supported by higher basestock margins and growth in high-value products. The segment continued to offset pressure from Middle East disruptions through stronger product performance.

ExxonMobil Expands Investments While Cutting CostsXOM continued investing in growth opportunities, with cash capital expenditure of $6.8 billion during the quarter and $13 billion for the first six months of 2026. The company said that 2026 planned investments are 20% higher than the nearest international oil company, with spending focused on advantaged assets and high-value products.

Cost efficiency remained a significant earnings support. The company reported cumulative structural cost savings of $16.3 billion, which it said exceeded the combined savings reported by other international oil companies.

XOM Strengthens Cash Flow & Balance SheetExxonMobil generated $23.6 billion in cash flow from operating activities and $17.2 billion in free cash flow during the second quarter. Shareholder distributions totaled $9.4 billion, including $4.3 billion in dividends and $5.1 billion in share repurchases.

The company ended the quarter with cash and cash equivalents of $10.6 billion and long-term debt of $32.2 billion. ExxonMobil also reduced net debt by more than $7 billion during the second quarter, improving its net debt-to-capital ratio to 11%.

ExxonMobil Outlines Q3 ExpectationsXOM expects third-quarter upstream results to reflect lower Guyana net entitlement volumes of about 100 thousand barrels per day due to production-sharing adjustments. Management said that this change does not reflect weaker operating performance or lower gross production.

The company also expects corporate and financing expenses of $0.8-$1 billion in the third quarter. Scheduled maintenance in Product Solutions is expected to be lower than in the second quarter, while Middle East production impacts remain a key factor for the outlook.

Zacks Rank & Stocks to ConsiderExxonMobil currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are HF Sinclair Corporation (DINO - Free Report) , Valero Energy (VLO - Free Report) and Kinder Morgan Inc. (KMI - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 (Strong Buy) stocks here.

HF Sinclair’s operations are anchored by its refining business, which consists of seven complex refineries located across the Mid-Continent, Southwest, Rocky Mountains and Pacific Northwest regions. These facilities have a combined crude processing capacity of approximately 678,000 barrels per day, and are equipped to process discounted heavy and sour crude oils into higher-value refined products, including gasoline, diesel and jet fuel. The company’s renewables segment comprises the Artesia, Cheyenne and Sinclair renewable diesel facilities, which together have an annual production capacity of about 378 million gallons.

Valero is a leading refining player with a robust network of 14 refineries and a combined high-complexity throughput capacity of 3 million barrels per day, which distinguishes it from other independent refiners. Valero’s refineries have a combined Nelson Complexity Index of 11.5, which implies that they can process a wide variety of feedstocks, convert them into higher-value products and shift product yields according to market conditions.

Kinder Morgan operates one of North America's largest natural gas infrastructure networks, consisting of approximately 58,600 miles of transmission pipelines, 6,800 miles of gathering systems and 1,300 miles of natural gas liquids pipelines. KMI transports nearly 40% of U.S. natural gas production and controls more than 700 billion cubic feet of storage capacity, representing roughly 15% of the nation's total storage capacity.

A Guyanese flag flies outside the ExxonMobil offices, as Guyana's fast-growing economy is set to benefit from a reshaped global energy market due to the U.S.-Israeli war on Iran, in... Purchase Licensing Rights, opens new tab Read more

SummaryCompaniesHistoric development costs recouped two years earlier than expected, CFO saysGuyana and oil consortium to split remaining profit oil evenly under contract termsExxon will receive 100,000 bpd fewer ​in Q3, but free cash flow will riseHOUSTON, July 31 (Reuters) - An ‌ExxonMobil-led (XOM.N), opens new tab joint venture has recovered the billions of dollars it invested to develop a large oilfield in Guyana, its chief financial officer told Reuters, and the South American country will now receive more ​oil money.

Guyana's Stabroek Block, estimated to hold at least 11 billion barrels of ​oil equivalent, has become one of the top assets of the U.S. ⁠oil producer's portfolio since its discovery in 2015. Revenue from the field has made ​Guyana one of the fastest-growing economies in the world, with the country now producing more ​than 900,000 barrels per day.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

The joint venture's production sharing contract (PSC) with Guyana allowed Exxon and its partners to take up to 75% of the oil to cover their exploration and development costs.

The accumulated $55 billion ​invested since 2014 has been recouped about two years faster than expected because of ​the rapid development of the block, Exxon Chief Financial Officer Neil Hansen said in an interview.

"We brought ‌these ⁠investments on at an unprecedented pace and cost advantage," Hansen said.

Under the PSC, the consortium splits profit oil evenly with Guyana after recovering costs. Exxon will now book about 100,000 fewer bpd from the country as it enters the third quarter, but free cash ​flow will increase by ​2030 to twice ⁠the level seen in 2025, he said.

Exxon operates the Stabroek Block with a 45% interest. Chevron (CVX.N), opens new tab holds a 30% stake in the ​block after acquiring Hess Corp, the original partner in the consortium, ​and Chinese ⁠oil firm CNOOC (600938.SS), opens new tab holds 25%.

The consortium's fifth and sixth projects in the Stabroek Block — Uaru and Whiptail — are expected to begin oil production this year and next year, respectively.

Guyana, with a ⁠population of ​about 1 million people, still faces the challenge of ​diversifying its economy beyond oil. While many local businesses have thrived, residents continue to struggle with prolonged electricity blackouts ​and ailing infrastructure.

Reporting by Sheila Dang in Houston; Editing by Nathan Crooks and Tom Hogue

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Exxon Mobil (NYSE:XOM | XOM Price Prediction) enters its July 31 earnings report with 43 consecutive years of dividend growth and a $20 billion annual buyback program. Strong production from Guyana and the Permian, combined with higher oil prices during Q2, could give the energy giant another opportunity to extend its four-quarter earnings-beat streak.

Higher Oil Prices Could Drive Another Earnings Beat ExxonMobil has beaten EPS four straight quarters. Q1 2026 adjusted EPS came in at $1.16 versus $1.0074, a 15.15% beat, and Polymarket puts an 84.5% probability on another beat on July 31. Golden Pass LNG Train 1 loaded its first cargo in April 2026, Guyana output crossed 900,000 gross barrels per day, and the Permian hit a record 1.8M boed in Q4 2025. WTI traded between $80 and $114 during Q2, providing a strong upstream backdrop.

A 43-Year Dividend Growth Streak Meets a $20 Billion Buyback Exxon pays a 2.65% dividend yield, and the last hike (4% announced in Q3 2025) extended the 43-year growth streak. Layer the $20 billion 2026 repurchase program (with $4.9 billion executed in Q1) on top of the dividend, and total shareholder yield lands much higher than the visible dividend yield.

Exxon’s Balance Sheet Supports the Valuation XOM trades at a P/E of 23, an EV/EBITDA of 10.71, and a Price/Book of 2.51. These don’t seem like unreasonable multiples for a business that generated $26.13 billion in free cash flow in 2025 with Debt/Equity of just 0.168 and interest coverage of 56.28x. The stock’s beta sits at just 0.162, making it a low-volatility stock relative to the broader energy sector.

Exxon Looks Stronger Than Chevron on Cash Flow and Valuation Chevron (NYSE:CVX) trades at a P/E of 32 (versus XOM’s 23), rides a shorter 39-year dividend streak, and reported negative $1.55 billion of free cash flow in Q1 2026 as capex outran operating cash.

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Exxon Mobil didn't make the cut. Grab the names FREE today.

Chevron is also investing in recently acquired Hess assets, Guyana, the Gulf of Mexico, and the Permian Basin to support 7% to 10% production growth in 2026. That spending could strengthen future cash flow, but Exxon currently offers the more attractive combination of valuation, reported free cash flow, dividend history, and buyback scale.

The Headline Profit Decline Hides Stronger Underlying Earnings Exxon’s reported Q1 profit fell sharply, but the headline decline included billions of dollars in derivative timing effects and disruption costs. Excluding those items, underlying earnings increased to $8.77 billion from $7.58 billion. As CEO Darren Woods said on the Q1 call, “This quarter demonstrated that ExxonMobil is a fundamentally stronger company than it was just a few years ago, built to perform through disruption and across market cycles.”

Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and Exxon Mobil didn't make the cut. Grab the names FREE today.

Contact [email protected] for any questions or corrections.

Make no mistake: ExxonMobil (XOM 0.40%) remains the epitome of "big oil." The energy giant is one of the world's largest integrated oil and gas companies, with exploration projects, refineries, and retail energy operations worldwide.

However, while the "green wave" investing trend has lost momentum in recent years, don't assume ExxonMobil has completely abandoned its efforts to capitalize on it. Alongside efforts to maximize the profitability of its legacy business through measures like cost-cutting and a focus on high-return exploration opportunities, ExxonMobil has continued to commit billions to its "clean energy" projects.

Although these projects don't contribute much to the bottom line yet, in a little over a decade, they could become a secondary source of profitability for this blue chip dividend stock.

Image source: Getty Images.

ExxonMobil's lean, mean, hydrocarbon cash machine ExxonMobil has prioritized maximizing profitability in its legacy business. Why? For starters, the company wants to maintain its dividend growth track record. With 43 years of consecutive annual dividend growth under its belt, it's less than a decade away from becoming one of the Dividend Kings, or companies with over 50 years of consecutive dividend growth.

Alongside growing the dividend, which currently gives the stock a 2.9% forward yield, ExxonMobil also remains committed to another type of "return of capital" activity: share repurchases. Management is currently targeting $20 billion in annual buybacks. That's around 3.3% of the company's current market capitalization.

As share repurchases help increase a stock's underlying per-share value over time, ExxonMobil is, in essence, trying to maintain a mid-single-digit return baseline. Besides the return of capital, the company is trying to, as CEO Darren Woods recently put it, "produce more oil for less money," with another objective in mind. That would be to produce greater cash flow, not only to support dividend and buyback growth, but to fund ExxonMobil's "green pivot" as well.

Today's Change

(

-0.40

%) $

-0.58

Current Price

$

144.51

The longer-term payoff ExxonMobil's near-term objective for its efficiency efforts is to increase annual earnings and cash flow by $25 billion and $35 billion, respectively, compared with 2024 levels. Management anticipates hitting this goal by 2030. The company is ramping up profitability to sustain earnings and dividend growth and spur further price appreciation.

Over a longer time horizon, however, the company is also putting a lot of this cash into its "green wave projects." As part of its "2030 Plan," unveiled last December, ExxonMobil also announced plans to invest $20 billion in what it calls its "lower-emission investments" between 2025 and 2030, with 60% of this investment focused on reducing emissions for third-party customers. This includes not only investment in ExxonMobil's carbon capture and storage (CCS) projects, but also in its Proxxima resin systems project, and in its budding low-emissions hydrogen and domestically sourced lithium.

Make no mistake. ExxonMobil isn't trying to "green" up its image by investing heavily in the business. Alongside sustainability, the oil and gas giant also sees financial opportunity. As the company's management believes these businesses could generate up to $13 billion in additional earnings by 2040, consider ExxonMobil's "green wave" wager as a secondary catalyst for the stock in the long term.

In short, buy this energy stock for the 2.9% dividend and 2030 transformation today -- and hold it for the next big transformation down the road.

Key Takeaways XOM expects higher liquids prices to add about $3.5-$3.9 billion to Q2 earnings versus Q1 2026. ExxonMobil sees Energy, Chemical and Specialty Products margins boosting second-quarter earnings. Middle East disruptions hurt production, but supportive prices may still aid XOM's upstream profitability. Exxon Mobil Corporation (XOM - Free Report) , a U.S. oil and gas giant, has an integrated business model spanning upstream operations, refining and trading. The majority of its earnings are generated by its upstream segment. While the exploration and production business is vulnerable to fluctuations in oil and gas prices, the current business environment seems favorable for XOM’s upstream activities.

The conflict in the Middle East has disrupted global oil and gas flows, causing a major spike in crude prices, with the West Texas Intermediate benchmark surpassing the $100 per barrel mark in May 2026. In its latest 8-K filing, ExxonMobil has provided an update regarding its second-quarter results. The company indicated that higher crude prices and the impacts of the Middle East disruptions are expected to boost its second-quarter earnings compared with the first quarter. In fact, XOM estimates changes in liquids prices to add approximately $3.5-$3.9 billion to its earnings compared with first-quarter 2026.

Moreover, the company mentioned in its filing that the Energy Products and Chemical Products segments are expected to benefit from changes in margins. The Energy Products segment is expected to gain between $2 billion and $2.4 billion, while the Chemical Products segment is expected to witness an increase between $1 billion and $1.2 billion. The Specialty Products segment is forecasted to add approximately $300-$500 million to its earnings compared with first-quarter 2026. The gains in refining and chemicals margins likely reflect stronger industry margins in the second quarter. However, ExxonMobil noted that the ongoing conflict in the Middle East has caused production disruptions and operational shutdowns, partially offsetting these benefits. ExxonMobil is scheduled to release its second-quarter results on July 31.

The current market conditions, however, have changed significantly, and crude prices have retreated from the war-premium highs seen previously. Nevertheless, the current pricing environment remains supportive for ExxonMobil. Recent developments related to the conflict between the United States and Iran have again resulted in heightened uncertainty in global energy markets. The escalating geopolitical tensions may push oil prices higher in the near term, thereby supporting ExxonMobil’s upstream business. The company is well positioned to generate attractive upstream earnings and sustain its profitability, supported by its portfolio of low-cost, high-return advantaged assets in the Permian Basin and Guyana.

XOM’s Zacks Rank and Key PicksXOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Cenovus Energy (CVE - Free Report) , Par Pacific Holdings (PARR - Free Report) and FuelCell Energy (FCEL - Free Report) . While Cenovus Energy and Par Pacific currently sport a Zacks Rank #1 (Strong Buy) each, FuelCell Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada.  The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.

Par Pacific Holdings operates an integrated downstream energy business across the United States, with fuel retail operations in Hawaii, Washington, and Idaho, refining operations in Hawaii, Wyoming, Washington, and Montana, and a supporting logistics network. Its refineries have a combined crude oil throughput capacity of 219,000 barrels per day and produce gasoline, diesel, jet fuel, marine fuels, asphalt, and other petroleum products.

FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

Exxon Mobil logo and stock graph are seen through a magnifier displayed in this illustration taken September 4, 2022. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

CompaniesLAGOS, July 8 (Reuters) - ExxonMobil (XOM.N), opens new tab and its partners will invest $1 billion in the Usan ​Infill Project offshore Nigeria, a development expected ‌to add 40,000 barrels per day (bpd) of oil production, Nigeria's upstream regulator said on Wednesday.

The Nigerian Upstream ​Petroleum Regulatory Commission (NUPRC) said the investment ​marks a return to drilling activity by ⁠ExxonMobil affiliate Esso Exploration and Production Nigeria ​in the country, with the company's last drilling ​operation dating back to 2016.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

ExxonMobil's Nigerian affiliate, Esso Exploration and Production Nigeria, operates OML 138, which contains ​the Usan field under a production-sharing contract ​with NNPC Ltd.

ExxonMobil Nigeria Managing Director Jagir Baxi confirmed the ‌investment ⁠commitment at an oil conference in Abuja.

NUPRC Chief Executive Oritsemyiwa Eyesan said the Usan project is expected to deliver first production within ​18 months ​after seismic ⁠data identified the investment opportunity.

Nigeria is seeking to attract new upstream ​investment and raise crude oil production ​through ⁠development of offshore and onshore assets.

Separately, NUPRC presented 19 prospecting licences across deepwater, shallow-water and continental ⁠shelf ​acreage to successful bidders ​from the 2022/2023 Mini Bid Round and the 2024 Licensing ​Round.

Reporting by Isaac Anyaogu; Editing by Will Dunham

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Key Takeaways XOM and QatarEnergy signed a Cyprus deal affirming Glaucus and Pegasus discoveries as marketable.Cyprus says the offshore fields could hold 8-9 Tcf of gas, with FID expected by 2029.XOM expects first production by 2033 if the project proceeds as planned after appraisal and FEED. Exxon Mobil Corporation (XOM - Free Report) , a U.S.-based energy giant, and QatarEnergy have signed a deal with Cyprus affirming the prospects of two offshore natural gas discoveries as marketable, implying that these resources are large enough to be commercially developed. Per a Reuters report, the Declaration of Marketability was signed in Nicosia and is considered a significant milestone for Cyprus, as it facilitates the project's development. For Cyprus, this is a major step forward in its efforts to advance offshore gas discoveries into producing fields.

Project Progresses Toward FEED and Final Investment DecisionThe gas discoveries are located in two offshore blocks in the Glaucus and Pegasus gas fields. Cyprus has mentioned that the two discoveries could contain combined resources of approximately 8-9 trillion cubic feet (Tcf) of gas.This project is central to the country’s ambitions of establishing the Eastern Mediterranean as a reliable gas supplier to Europe.

ExxonMobil has stated that a final investment decision for the project is expected by 2029 and that, if the project proceeds according to plan, first production is expected by 2033. However, the report mentioned that the companies will first conduct additional drilling on the offshore fields to better understand their size and properties before progressing to the front-end engineering and ‌design (FEED) phase.

Egypt's Existing Infrastructure to Support CommercializationIn May 2026, QatarEnergy signed a preliminary agreement with XOM and the government of Egypt to study the commercialization of gas resources discovered in Cyprus via Egypt's existing natural gas and liquefied natural gas (LNG) facilities. The agreement was intended to help the companies and the Egyptian government understand how Egypt's existing gas infrastructure could be utilized to develop Cyprus’ natural gas resources and evaluate related business and growth opportunities. The agreement could also help the companies to utilize existing resources optimally to support increasing gas needs in domestic and international markets.

ExxonMobil has stated that natural gas from the Pegasus and Glaucus fields would most likely be transported to Egypt through a pipeline tie-back, thereby utilizing existing infrastructure and making the development cost-efficient. A similar approach is also being considered for other gas discoveries in Cypriot waters. The Aphrodite gas field, operated by Chevron, contains an estimated 3.5-4.5 Tcf of natural gas, while the Cronos gas field, operated by Eni and TotalEnergies, contains more than 3 Tcf of gas. Both fields may also be connected to Egypt's gas and LNG infrastructure through similar pipeline tie-backs, which could utilize the country's spare operating capacity.

Strategic Importance for Cyprus and Europe's Energy SecurityThe agreement marks a significant step toward unlocking Cyprus' offshore natural gas potential and enhancing the Eastern Mediterranean region’s potential to become an alternative gas supplier to Europe. The project is expected to provide a reliable source of natural gas for the continent, supporting the region's efforts to diversify energy supplies and enhance Europe’s long-term energy security.

XOM’s Zacks Rank and Key PicksXOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are Cenovus Energy (CVE - Free Report) , Par Pacific Holdings (PARR - Free Report) and FuelCell Energy (FCEL - Free Report) . While Cenovus Energy sports a Zacks Rank #1 (Strong Buy), Par Pacific and FuelCell Energy each carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks Rank #1 stocks here.

Cenovus Energy Inc. is a Canadian integrated energy company with operations spanning the upstream, midstream and downstream sectors. The company is involved in exploration and production from its low-cost oil sands and heavy oil assets in Canada.  The strategic MEG Energy acquisition is expected to boost Cenovus Energy's production levels in 2026.

Par Pacific Holdings is a Houston-based refining player with a combined refining capacity of 219,000 barrels per day, and operations spread across Hawaii, the Pacific Northwest and the Rockies. The company also operates 76 branded retail locations along with a logistics business segment.

FuelCell Energy is a clean energy company that offers scalable, reliable, low-carbon power solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company’s proprietary molten carbonate fuel cell systems generate electricity through an electrochemical process instead of burning fuel, reducing carbon emissions and minimizing the environmental impact of power generation. FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.

SummaryCompaniesExxon seeks compensation for property seized in 1960Trump allowed wave of US lawsuits against CubaExxon sued under US law called the Helms-Burton ActTrump administration supported Exxon in caseWASHINGTON, June 23 (Reuters) - The U.S. Supreme Court made it easier on Tuesday for U.S. companies to seek compensation from Cuba's government for property seized decades ago by former leader Fidel Castro's ​government, ruling in favor of ExxonMobil (XOM.N), opens new tab in its lawsuit against Cuban state-owned firm Corporación CIMEX.

In a 6-3 decision, the court said a legal defense called foreign sovereign immunity, ‌which generally prohibits U.S. lawsuits against foreign governments and their agents, is not available in cases like the one Exxon brought against CIMEX under a 1996 U.S. law called the Helms-Burton Act.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Conservative Justice Brett Kavanaugh, who authored the ruling, wrote that the 30-year-old federal law eliminates "the sovereign immunity of Cuban agencies and instrumentalities."

"The Helms-Burton Act authorizes private suits against Cuban agencies and instrumentalities — suits that would largely be nonstarters if subjected to the FSIA's requirements," Kavanaugh wrote, referring ​to the Foreign Sovereign Immunities Act of 1976.

The court's six conservative justices were in the majority. Justice Elena Kagan wrote a dissent that was joined by the court's two other ​liberal members.

Kagan said that the plaintiffs should be required to show that their suit was exempt from the Foreign Sovereign Immunities Act, arguing that, "Nothing in ⁠the text or 'architecture' of the Helms-Burton Act suggests that Congress abrogated the sovereign immunity of these defendants — much less that it did so with the requisite unmistakable clarity."

The Supreme Court reversed a lower ​court's 2024 ruling that CIMEX could invoke the sovereign immunity defense.

The decision removes a major obstacle Exxon faced in its 2019 lawsuit that accused CIMEX of unlawfully using a refinery and service stations that ​once belonged to Standard Oil, Exxon's corporate predecessor. The case will return to a lower court for further deliberations on CIMEX's potential liability.

A Helms-Burton Act provision called Title III permits lawsuits to be filed in U.S. courts against anyone who "traffics" in property confiscated by Cuba's communist government after the 1959 revolution that brought Castro to power. U.S. President Donald Trump's administration supported Exxon's appeal to the Supreme Court.

An Exxon spokesperson welcomed the court's decision on Tuesday, calling ​it "a critical moment in a 60-year effort to be compensated for what the Cuban government illegally seized."

"It reflects two things: the merits of our argument and the fact that our company will fight ​a good fight for as long as it takes," the spokesperson said.

The logo of Exxon Mobil Corporation is shown on a monitor above the floor of the New York Stock Exchange in New York, December 30, 2015. REUTERS/Lucas Jackson/File Photo/File Photo Purchase Licensing Rights, opens new tab

U.S.-CUBA TENSIONSThe ruling was issued at a rancorous time in U.S.-Cuban relations. The United States on May 20 brought murder charges against former Cuban President Raúl Castro, ‌Fidel's younger brother, ⁠in a major escalation in Trump's pressure campaign against Cuba's government.

Under Trump, the United States has effectively imposed a blockade on Cuba by threatening sanctions on countries supplying it with fuel, triggering power outages and exacerbating its worst crisis in decades.

Exxon's suit involved Fidel Castro's confiscation of all of the U.S. energy company's Cuban oil and gas assets in 1959, which represented a loss valued at $70 million at the time. Exxon's current claim is now valued at more than $1 billion because of interest and the potential for enhanced damages.

According to Exxon, its assets were transferred to CIMEX, Cuba's largest state-owned conglomerate. CIMEX ​continues to hold and profit from the confiscated ​property.

Exxon's lawsuit was part of a flood of ⁠about 40 cases filed under the Helms-Burton Act in 2019 and 2020 because of a change in U.S. policy toward Cuba during Trump's first term in office.

When it passed the Helms-Burton Act, Congress authorized the U.S. president to suspend Title III on national security grounds. The provision was then suspended ​by three presidents seeking to avoid diplomatic conflicts with allies like Canada and Spain whose companies have invested in Cuba. Trump lifted that suspension ​in 2019.

Lower court rulings had ⁠made it difficult for U.S. companies to prevail in such cases, with most lawsuits being dismissed on jurisdictional or procedural grounds.

CRUISE DISPUTEThe decision was one of two issued by the Supreme Court this year in cases involving the Helms-Burton Act and Cuba.

In the other case, the court delivered a setback on May 21 to four American cruise operators that contested $440 million in combined judgments in litigation brought by a U.S. company called Havana ⁠Docks Corporation ​accusing them of unlawfully using docks in Cuba that it built and were later seized.

The justices set aside a lower ​court's decision to throw out the judgments against Carnival (CCL.N), opens new tab, Norwegian Cruise Line Holdings (NCLH.N), opens new tab, Royal Caribbean Cruises (RCL.N), opens new tab and MSC Cruises that were awarded to Havana Docks. The Supreme Court's decision sent the case back to the lower court for it to consider other ​defenses offered by the cruise lines.

Reporting by Jan Wolfe; Editing by Will Dunham

Our Standards: The Thomson Reuters Trust Principles., opens new tab