Should Investors Worry About ExxonMobil if Oil Prices Slip in 2026?

According to data from OilPrice.com, the price of West Texas Intermediate (WTI) crude is trading above $65 per barrel, which is favorable for the upstream operations of Exxon Mobil Corporation XOM. However, the U.S. Energy Information Administration (“EIA”) projects the spot average WTI price for 2026 at $53.42 per barrel, lower than $65.40 for 2025, owing to rising oil inventories. With XOM generating a king-size earnings from upstream operations, can it combat the softness in oil prices?

The advantageous assets where XOM is operating include the Permian, the most prolific basin in the United States and offshore Guyana resources. Although the assets have cost advantages, lower oil prices are likely to hurt profits. However, unlike many other companies, ExxonMobil can rely on its strong balance sheet.

ExxonMobil’s exposure to debt capital is significantly lower than that of the composite stocks belonging to the industry. The integrated energy giant can lean on its robust financials to navigate the low pricing environment, such as securing debt capital on favorable terms when the business scenario turns unfavorable.

CVX & EOG Can Also Brave Business Uncertainty

Chevron Corporation CVX and EOG Resources Inc. EOG are two leading energy companies with a strong presence in exploration and production activities. The softness in crude prices will likely hurt the bottom line of both CVX and EOG.

CVX and EOG have strong balance sheets like XOM. Debt-to-capitalization of Chevron and EOG is relatively lower than the industry, suggesting a considerably lower exposure to debt capital. Hence, they can brave the uncertainty of the business environment.

XOM’s Price Performance, Valuation & Estimates

ExxonMobil shares have gained 34.6% over the past year compared with the 25.8% improvement of the composite stocks belonging to the industry.

 

Image Source: Zacks Investment Research

 

From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.59X. This is above the broader industry average of 5.94X.

 

Image Source: Zacks Investment Research

 

The Zacks Consensus Estimate for XOM’s 2026 earnings has seen upward revisions over the past 30 days.

 

Image Source: Zacks Investment Research

 

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