Exxon Mobil Corp

Exxon Mobil Corp operates as an integrated oil and gas company, generating revenue through the exploration, production, refining, and marketing of crude oil, natural gas, and petrochemical products.

The company is classified in the Integrated Oil & Gas industry within the Oil & Gas business sector, with a rule-based classification confidence of 0.98.

Exxon Mobil maintains a conservative capital structure with a debt-to-equity ratio of 0.15 and a current ratio of 1.04, indicating tight but adequate short-term liquidity. The balance sheet shows total assets of $464.4 billion against total liabilities of $203.4 billion, resulting in total equity of $254.4 billion. Long-term debt stands at $33.1 billion, while short-term debt is $6.2 billion, offset by cash and equivalents of $8.4 billion. The company generated operating cash flow of $8.7 billion in Q1 2026, supporting a free cash flow of $2.2 billion after capital expenditures of $6.5 billion.

Profitability metrics reflect a cyclical downturn, with a return on equity of 1.64% and return on assets of 0.9% for the period. The price-to-earnings ratio is elevated at 134.82, driven by a significant year-over-year decline in net income to $4.2 billion from $7.7 billion in Q1 2025. Earnings per share fell to $1.00 from $1.76 in the prior year period. The price-to-book ratio remains at 2.16, suggesting the market values the company's tangible asset base despite the earnings compression.

Revenue concentration is inherent to the integrated model, with total revenues of $85.1 billion in Q1 2026, up slightly from $83.1 billion in Q1 2025. Costs and other deductions rose to $78.2 billion from $71.5 billion, primarily driven by higher crude oil and product purchases of $51.8 billion compared to $46.8 billion in the prior year. Depreciation and depletion increased to $6.8 billion from $5.7 billion, reflecting ongoing investment in production assets.

The growth trajectory shows a contraction in profitability despite stable revenue. Net income attributable to ExxonMobil declined by 45.8% year-over-year. Operating cash flow decreased to $8.7 billion from $13.0 billion in Q1 2025, indicating pressure on cash generation amid higher working capital changes of -$1.8 billion. Capital expenditures increased to $6.5 billion from $5.9 billion, signaling continued investment in long-term projects despite near-term earnings headwinds.

Risk assessment highlights medium dilution risk and high liquidity risk flags, primarily due to the current ratio being close to the minimum comfort range and negative net cash position after subtracting total debt. The company faces commodity price volatility, as oil, gas, and petrochemical margins depend on global supply and demand dynamics. Source documents mention dilution or offering risk, warranting monitoring of share count changes.

Recent events include critical 8-K filings with material items related to executive departures, changes in financial statements, and other significant corporate actions.

Key takeaways

• Net income declined 45.8% YoY to $4.2B, driven by higher input costs and working capital pressures.
• Debt-to-equity ratio remains low at 0.15, providing financial flexibility despite tight current ratio of 1.04.
• Operating cash flow fell to $8.7B from $13.0B YoY, impacting free cash flow generation.
• Critical 8-K filings indicate significant corporate governance or operational changes requiring monitoring.
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• RATIONALES:
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• Current ratio is close to the minimum comfort range.
• Net cash is negative after subtracting total debt.
• Source documents mention dilution or offering risk.