Can Disciplined Cost Management Fuel ExxonMobil's Future?
ExxonMobil mentioned on its recent earnings call that it aims to slash its breakeven costs to $35 per barrel by 2027 and $30 per barrel by 2030. Thus, XOM's upstream operations, which derive the majority of earnings, will probably remain profitable even if there is a plunge in oil prices in the future. It can also be said that the integrated major stands to earn substantially more from its upstream business, reflecting its strong footprint in the most prolific Permian basin, when prices climb.
Importantly, XOM has aimed to lower its breakeven costs while maintaining its investment program. This will not only keep its operations profitable and resilient during a challenging business environment but also help it generate long-term value for shareholders while continuing to invest in major projects.
Other Upstream Firms With Low Breakeven Costs: CVX, EOG
According to Statista, a leading platform for data collection and visualization, the breakeven price in the Permian, especially in the Delaware and Midland sub-basins, is well below $40 per barrel. Hence, companies operating in the Permian, like Chevron Corporation CVX and EOG Resources Inc. EOG, are experiencing low breakeven prices.
In 2024, CVX conducted 80% of its development activities in the Delaware basin. Chevron plans to increase the development program in the Delaware basin to 85% this year. This simplifies CVX's strong focus on low breakeven-cost operations, enabling it to maximize its profit.
On its recent earnings call, EOG stated that it could easily handle all its planned spending for this year, even if oil prices trade in the low $50 per barrel. It means that to remain financially healthy, EOG does not need high oil prices.
XOM's Price Performance, Valuation & Estimates
Shares of XOM have declined 1% over the past year compared with the 2.8% fall of the composite stocks belonging to the industry.
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 6.77X. This is above the broader industry average of 4.14X.
The Zacks Consensus Estimate for XOM's 2025 earnings hasn't been revised over the past seven days.
XOM stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Chevron Corporation (CVX): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
EOG Resources, Inc. (EOG): Free Stock Analysis Report
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
CTV News
17 minutes ago
- CTV News
Timmins police hiring specialists in modernization push
Timmins police are hiring new support staff as part of a modernization push. The chief says the new roles will reduce officer paperwork and improve efficiency. The Timmins Police Service is undergoing a modernization effort, with Chief Sydney Lecky stating that the force is 'overdue' in updating its operations. As part of this initiative, the service is in the process of hiring a finance associate. The application period for the role closed on July 10 and submissions are currently under review. Lecky emphasized that this is one of several new positions being introduced to enhance the department's efficiency. The Timmins police have already hired a human resources manager and an IT professional, while additional roles – including records staff and team lead positions – are also being created. 15-TIM-FINANCE The Timmins Police Service is hiring a finance associate and other specialized team members including a human resources manager. Chief Sydney Lecky is shown at a meeting. (Lydia Chubak/CTV News Northern Ontario) Catching up with modern policing demands 'These are all positions that are just a key part of modern policing, and some of it's catch-up – it's all really catch-up,' Lecky said. He explained that the expansion is necessary to manage growing administrative and reporting responsibilities. 'Overall, it's just to deal with the growth and the accountability and the reporting requirements. It's not just about getting grants, but we have to report on the grants and how we're using the funds,' said Lecky. A strengthened support system, Lecky added, allows officers to focus more on policing rather than paperwork. Ontario chiefs advocate for broader policing role The Ontario Association of Chiefs of Police (OACP) supports this approach, acknowledging that administrative tasks are not what draw individuals to a career in law enforcement. The OACP is currently running a recruitment campaign called Answer The Call, aimed at attracting candidates who want to contribute beyond traditional law enforcement. 'Our police officers today are very eager to be part of the solution – a social solution where we can try and solve social problems,' said Joe Couto, OACP's director of government relations and communications. 'When we solve those social problems, they are much less likely to become criminal problems. Today's police officers really need to be in that mindset. Part of our campaign is to say, you could be more than just a law enforcer – you can be part of the solution to social issues, economic issues, poverty issues, all of the other issues.' Technology demands additional support Lecky highlighted that as officers increasingly rely on mobile workstations in their vehicles, they require robust support at the station – particularly with the upcoming installation of automated license plate readers and in-car cameras. He pointed out that these technologies generate substantial amounts of digital evidence, necessitating dedicated personnel to manage and process the data efficiently. These factors, the police board said, underscore the need for the newly created positions within the Timmins Police Service.
Globe and Mail
41 minutes ago
- Globe and Mail
Time to Buy Interactive Brokers (IBKR) Stock as Q2 Earnings Approach
Favorable quarterly reports from most of the large domestic banks are drawing attention to the financial sector, and Interactive Brokers IBKR is worthy of consideration ahead of its Q2 results on Thursday, July 17. Soaring nearly +100% in the last year, Interactive Brokers stock is up +35% year to date and looks poised for higher highs after hitting a 52-week peak of $60 a share in today's trading session. The automated global electronic broker is seeing supercharged trading volumes following an unprecedented rebound among the U.S. stock exchanges. Enhancing its product offerings, Interactive Brokers has recently launched IBKR InvestMentor, a microlearning app aimed at educating new investors and has expanded its ETF and cryptocurrency offerings to compete with competitors such as Charles Schwab SCHW and Robinhood Markets HOOD. Interactive Brokers Q2 Expectations Based on Zacks' estimates, Interactive Brokers' Q2 sales are expected to increase 8% to $1.34 billion compared to $1.23 billion a year ago. On the bottom line, Q2 EPS projections of $0.45 would be a slight increase from $0.44 a share in the prior year quarter. Furthermore, the Zacks ESP (Expected Surprise Prediction) indicates Interactive Brokers could surpass earnings expectations with the Most Accurate and recent estimates among Wall Street having Q2 EPS slated at $0.46 (Current Qtr below). Positive EPS Revisions & Steady Growth Most intriguing and alluding to the plausibility of more upside in IBKR is that earnings estimate revisions for Interactive Brokers have continued to trend higher following the announcement of its upgraded product offerings and investment tools. In the last week, fiscal 2025 and FY26 EPS estimates are up 4% and 3% respectively. Image Source: Zacks Investment Research Interactive Brokers' annual earnings are now expected to rise 4% this year and are projected to increase another 7% in FY26 to $1.97 per share. Reassuringly, this is accompanied by projections of steady sales growth with Interactive Brokers' top line expected to expand 3% in FY25 and forecasted to stretch another 6% next year to $5.73 billion. IBKR Valuation Comparison While the excitement for Interactive Brokers and Robinhood's innovative trading platforms has led to blazing performances for both of their stocks, it's noteworthy that IBKR still trades at a reasonable 32.4X forward earnings multiple compared to HOOD at 79.6X. In comparison, Interactive Brokers trades closer to their Zacks Financial-Investment Bank Industry average of 15.8X and Charles Schwab's 21.9X. Bottom Line Investors looking for exposure to the growth that many FinTech firms offer have a more affordable option with Interactive Brokers as opposed to Robinhood Markets. Appearing to be poised for higher highs ahead of its Q2 report, IBKR currently sports a Zacks Rank #1 (Strong Buy) and notably has an 'A' Zacks Style Scores grade for Momentum. 7 Best Stocks for the Next 30 Days Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops." Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Interactive Brokers Group, Inc. (IBKR): Free Stock Analysis Report The Charles Schwab Corporation (SCHW): Free Stock Analysis Report Robinhood Markets, Inc. (HOOD): Free Stock Analysis Report
Globe and Mail
42 minutes ago
- Globe and Mail
NW Natural Holdings Schedules Second Quarter Earnings Release and Conference Call for Tuesday, August 5
Northwest Natural Holding Company (NYSE: NWN) (NW Natural Holdings) announced today it will issue its second quarter 2025 earnings release and conduct an analyst conference call and webcast to review results at 8 a.m. Pacific Time (11 a.m. Eastern Time) on Tuesday, Aug. 5, 2025. To hear the conference by webcast, log on to NW Natural Holdings' corporate website at To hear the conference call by phone, please dial 1-833-470-1428 within the United States and enter the conference access code 546522. To access the conference replay, please call 1-866-813-9403 within the United States and enter the conference identification access code 198960. About NW Natural Holdings Northwest Natural Holding Company, (NYSE: NWN) (NW Natural Holdings), is headquartered in Portland, Oregon and has been doing business for over 166 years. It owns Northwest Natural Gas Company (NW Natural), SiEnergy Operating (SiEnergy Gas Utility), NW Natural Water Company (NW Natural Water Utility), NW Natural Renewables Holdings (NW Natural Renewables), and other business interests. NW Natural Holdings provides critical energy and delivers essential water and wastewater services to nearly one million customers across seven states. We have a longstanding commitment to safety, environmental stewardship, and taking care of our employees and communities. NW Natural Holdings was recognized by Ethisphere® for four years running as one of the World's Most Ethical Companies®. NW Natural consistently leads the industry with high J.D. Power & Associates customer satisfaction scores. NWN Gas Utility is a local distribution company that currently provides natural gas service to approximately 2 million people in more than 140 communities through approximately 807,000 meters in Oregon and Southwest Washington with one of the most modern pipeline systems in the nation. NW Natural owns and operates 21.6 Bcf of underground gas storage capacity in Oregon. SiEnergy Gas Utility is one of the fastest growing natural gas distribution utilities in the nation serving approximately 82,000 customers in the greater metropolitan areas of Houston, Dallas, and Austin, Texas. NWN Water Utility provides water distribution and wastewater services to communities throughout the Pacific Northwest, Texas, Arizona, and California. Today NW Natural Water serves an estimated 194,000 people through approximately 78,000 meters. Learn more about our water business. NW Natural Renewables is committed to leading in the energy transition by providing renewable fuels to support the utility, commercial, industrial and transportation sectors. Learn more about our renewable business. Additional information is available at
