Exxon Mobil: Cheap At An 11x Multiple, Bigger Buybacks Possible In 2H


  • WTI crude oil remains in the upper $70s, performing well last week despite macro challenges.
  • Energy sector stocks continue to struggle compared to tech-related stocks, with XLE hitting 26-month relative lows versus the S&P 500.
  • I have a buy recommendation on ExxonMobil (XOM) due to an attractive valuation, its strong free cash flow, and the potential for shareholder-friendly initiatives following the acquisition of Pioneer.
  • Ahead of earnings next month, I outline key price levels to monitor.

ExxonMobil"s Baton Rouge Refinery, Louisiana, USA


WTI crude oil posted its best weekly performance in two months last week despite softer US inflation data, a strong US dollar, and a dismal performance from ex-US equities. While oil supply concerns remain apparent, both WTI and Brent have managed to

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.

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