ExxonMobil Shares Surge 17.5% in January Amid Oil Price Rally
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Should l Buy XOM?
Source: Fool
- Oil Price Surge: In January, Brent crude prices rose by 16% and WTI by 14%, marking the first monthly gain in six months, which propelled ExxonMobil's stock up by 17.5%, significantly outperforming the S&P 500's 1.4% increase, highlighting the strong correlation between oil prices and stock performance.
- Supply Risk Escalation: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges raised market concerns about potential supply disruptions, while escalating tensions between the U.S. and Iran could further impact oil prices, contributing to the rise in ExxonMobil's stock.
- Outstanding Financial Performance: ExxonMobil's late January earnings report revealed industry-leading earnings of $28.8 billion and cash flow from operations of $52 billion last year, achieving the highest oil and gas production in over 40 years, which supported $37.2 billion in shareholder cash distributions, underscoring its unique position in the industry.
- Strategic Investment Returns: By investing in low-cost, high-margin assets and achieving structural cost savings, Exxon delivered 10 key projects last year, adding $3 billion to its annual earnings potential, and expects $25 billion in earnings growth and $35 billion in cash flow growth by 2030, further solidifying its market leadership.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 147.590
Low
114.00
Averages
132.17
High
158.00
Current: 147.590
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ExxonMobil Shares Surge 17.5% in January Amid Oil Price Rally
- Oil Price Surge: In January, Brent crude prices rose by 16% and WTI by 14%, marking the first monthly gain in six months, which propelled ExxonMobil's stock up by 17.5%, significantly outperforming the S&P 500's 1.4% increase, highlighting the strong correlation between oil prices and stock performance.
- Supply Risk Escalation: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges raised market concerns about potential supply disruptions, while escalating tensions between the U.S. and Iran could further impact oil prices, contributing to the rise in ExxonMobil's stock.
- Outstanding Financial Performance: ExxonMobil's late January earnings report revealed industry-leading earnings of $28.8 billion and cash flow from operations of $52 billion last year, achieving the highest oil and gas production in over 40 years, which supported $37.2 billion in shareholder cash distributions, underscoring its unique position in the industry.
- Strategic Investment Returns: By investing in low-cost, high-margin assets and achieving structural cost savings, Exxon delivered 10 key projects last year, adding $3 billion to its annual earnings potential, and expects $25 billion in earnings growth and $35 billion in cash flow growth by 2030, further solidifying its market leadership.
See More
Surge in U.S. Layoffs Alters Investment Strategies
- Surge in Layoffs: January saw over 108,000 layoffs in the U.S., marking the worst start to the year since 2009, with hiring plans plummeting to record lows, indicating heightened economic uncertainty according to Challenger, Gray & Christmas.
- Focus on Wealth Preservation: Post-layoff, wealth creation takes a backseat to wealth preservation strategies, as financial planners recommend maintaining a substantial emergency fund to cover essential expenses like rent and insurance, thereby mitigating risks during market volatility.
- Income-Focused ETFs Gain Traction: With salary income halted, investors are turning to ETFs designed for cash flow, such as iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF, which can modestly supplement cash reserves during unemployment, although they are not substitutes for regular paychecks.
- Gradual Investment Approach: Investing severance packages all at once exposes individuals to market timing risks; thus, gradual allocation strategies are advised to smooth entry points, especially when job searches extend longer than anticipated, ensuring liquidity amid economic uncertainty.
See More
Energy ETFs Transition with LNG Market Growth
- Earnings Impact: Mixed Q4 earnings from major oil producers have led to a nearly 4% drop in ConocoPhillips (NYSE:COP) shares, primarily due to lower realized oil prices affecting year-over-year earnings, despite steady production growth.
- LNG Project Progress: ConocoPhillips highlighted advancements in liquefied natural gas (LNG) initiatives, including developments in Qatar and the Port Arthur LNG project, indicating a strategic pivot towards global gas markets that is expected to positively influence future earnings.
- ETF Investment Trends: Many flagship energy funds are heavily weighted towards large integrated producers, while globally focused products like the iShares Global Energy ETF (NYSE:IXC) include international LNG leaders such as Shell, providing investors with indirect exposure to the expanding global gas trade.
- Stable Shareholder Returns: Despite earnings pressures, shareholder payouts remain robust across the energy sector, with dividends and share repurchases by large producers continuing to enhance the yield profile of energy ETFs, indicating a transition in the sector rather than deterioration.
See More
Diamondback Energy Stock Breakout
- Shareholder Return Commitment: Diamondback Energy is committed to returning at least 50% of quarterly free cash flow to shareholders, having returned $892 million through dividends and share buybacks by Q3, showcasing strong cash flow management.
- Stable Dividend Growth: Since initiating its dividend in 2018, FANG has grown its payout by 7.2% annually, currently offering a 2.42% annual yield, alongside an $8 billion share buyback authorization, reflecting the company's ongoing commitment to shareholders.
- Cost Structure Advantage: With a breakeven price of $30 per barrel and a dividend maintenance price of $37, significantly below the current $65 oil price, FANG demonstrates its ability to remain profitable even in low oil price environments, enhancing its competitive edge.
- Strong Technicals: FANG trades above both the 50-day and 200-day moving averages, indicating robust upward momentum, with the next key resistance around $170-$172; a breakout here would further solidify its market position.
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ExxonMobil Acquires FPSO ONE GUYANA for $2.32bn
- Acquisition Finalized: ExxonMobil's subsidiary, ExxonMobil Guyana, has completed the acquisition of FPSO ONE GUYANA for approximately $2.32 billion, finalizing the transaction before the maximum lease term ends in August 2027, thereby securing operational control in Guyana.
- Significant Financial Impact: The majority of the net cash proceeds from this transaction have been allocated to fully repay $1.74 billion in project financing, significantly reducing SBM Offshore's net debt and enhancing its financial stability.
- Optimized Operational Model: ONE GUYANA will operate under an integrated operations and maintenance model, with SBM Offshore overseeing operations until 2035, leveraging combined expertise to ensure enhanced operational efficiency.
- Robust Production Capacity: The FPSO is designed to initially produce an average of 250,000 barrels of oil per day, with a gas treatment capacity of 450 million cubic feet per day and the ability to inject 300,000 barrels of water daily, further driving development potential in the Stabroek block.
See More
Amazon's Stock Drops Ahead of Earnings Report
- Amazon Earnings Preview: Amazon is set to release its earnings report on Thursday, with its stock dropping 2.4% ahead of the announcement, indicating cautious investor sentiment that may impact short-term market confidence.
- Alphabet's Strong Performance: Alphabet exceeded Wall Street expectations in its fourth-quarter earnings report released on Wednesday, although its stock fell about 1% in after-hours trading; the projected capital expenditures for 2026 are expected to reach between $175 billion and $185 billion, nearly double that of 2025, reflecting a strong commitment to future growth.
- Qualcomm's Disappointing Guidance: Qualcomm reported quarterly earnings that surpassed expectations, yet its stock fell 9% in after-hours trading due to disappointing forward guidance, highlighting investor concerns about future performance, with shares down nearly 13% year-to-date in 2026.
- Strong Consumer Staples Sector: The Consumer Staples Select Sector SPDR ETF (XLP) has risen for four consecutive days, gaining over 1% each day and hitting new highs in the past three sessions, indicating strong performance in 2026 with over 12% growth year-to-date, making it the third-best performing sector in the market.
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ExxonMobil Shares Surge 17.5% in January Amid Oil Price Rally
- Oil Price Surge: In January, Brent crude prices rose by 16% and WTI by 14%, marking the first monthly gain in six months, which propelled ExxonMobil's stock up by 17.5%, significantly outperforming the S&P 500's 1.4% increase, highlighting the strong correlation between oil prices and stock performance.
- Supply Risk Escalation: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges raised market concerns about potential supply disruptions, while escalating tensions between the U.S. and Iran could further impact oil prices, contributing to the rise in ExxonMobil's stock.
- Outstanding Financial Performance: ExxonMobil's late January earnings report revealed industry-leading earnings of $28.8 billion and cash flow from operations of $52 billion last year, achieving the highest oil and gas production in over 40 years, which supported $37.2 billion in shareholder cash distributions, underscoring its unique position in the industry.
- Strategic Investment Returns: By investing in low-cost, high-margin assets and achieving structural cost savings, Exxon delivered 10 key projects last year, adding $3 billion to its annual earnings potential, and expects $25 billion in earnings growth and $35 billion in cash flow growth by 2030, further solidifying its market leadership.
See More
Surge in U.S. Layoffs Alters Investment Strategies
- Surge in Layoffs: January saw over 108,000 layoffs in the U.S., marking the worst start to the year since 2009, with hiring plans plummeting to record lows, indicating heightened economic uncertainty according to Challenger, Gray & Christmas.
- Focus on Wealth Preservation: Post-layoff, wealth creation takes a backseat to wealth preservation strategies, as financial planners recommend maintaining a substantial emergency fund to cover essential expenses like rent and insurance, thereby mitigating risks during market volatility.
- Income-Focused ETFs Gain Traction: With salary income halted, investors are turning to ETFs designed for cash flow, such as iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF, which can modestly supplement cash reserves during unemployment, although they are not substitutes for regular paychecks.
- Gradual Investment Approach: Investing severance packages all at once exposes individuals to market timing risks; thus, gradual allocation strategies are advised to smooth entry points, especially when job searches extend longer than anticipated, ensuring liquidity amid economic uncertainty.
See More
Energy ETFs Transition with LNG Market Growth
- Earnings Impact: Mixed Q4 earnings from major oil producers have led to a nearly 4% drop in ConocoPhillips (NYSE:COP) shares, primarily due to lower realized oil prices affecting year-over-year earnings, despite steady production growth.
- LNG Project Progress: ConocoPhillips highlighted advancements in liquefied natural gas (LNG) initiatives, including developments in Qatar and the Port Arthur LNG project, indicating a strategic pivot towards global gas markets that is expected to positively influence future earnings.
- ETF Investment Trends: Many flagship energy funds are heavily weighted towards large integrated producers, while globally focused products like the iShares Global Energy ETF (NYSE:IXC) include international LNG leaders such as Shell, providing investors with indirect exposure to the expanding global gas trade.
- Stable Shareholder Returns: Despite earnings pressures, shareholder payouts remain robust across the energy sector, with dividends and share repurchases by large producers continuing to enhance the yield profile of energy ETFs, indicating a transition in the sector rather than deterioration.
See More
Diamondback Energy Stock Breakout
- Shareholder Return Commitment: Diamondback Energy is committed to returning at least 50% of quarterly free cash flow to shareholders, having returned $892 million through dividends and share buybacks by Q3, showcasing strong cash flow management.
- Stable Dividend Growth: Since initiating its dividend in 2018, FANG has grown its payout by 7.2% annually, currently offering a 2.42% annual yield, alongside an $8 billion share buyback authorization, reflecting the company's ongoing commitment to shareholders.
- Cost Structure Advantage: With a breakeven price of $30 per barrel and a dividend maintenance price of $37, significantly below the current $65 oil price, FANG demonstrates its ability to remain profitable even in low oil price environments, enhancing its competitive edge.
- Strong Technicals: FANG trades above both the 50-day and 200-day moving averages, indicating robust upward momentum, with the next key resistance around $170-$172; a breakout here would further solidify its market position.
See More
ExxonMobil Acquires FPSO ONE GUYANA for $2.32bn
- Acquisition Finalized: ExxonMobil's subsidiary, ExxonMobil Guyana, has completed the acquisition of FPSO ONE GUYANA for approximately $2.32 billion, finalizing the transaction before the maximum lease term ends in August 2027, thereby securing operational control in Guyana.
- Significant Financial Impact: The majority of the net cash proceeds from this transaction have been allocated to fully repay $1.74 billion in project financing, significantly reducing SBM Offshore's net debt and enhancing its financial stability.
- Optimized Operational Model: ONE GUYANA will operate under an integrated operations and maintenance model, with SBM Offshore overseeing operations until 2035, leveraging combined expertise to ensure enhanced operational efficiency.
- Robust Production Capacity: The FPSO is designed to initially produce an average of 250,000 barrels of oil per day, with a gas treatment capacity of 450 million cubic feet per day and the ability to inject 300,000 barrels of water daily, further driving development potential in the Stabroek block.
See More
Amazon's Stock Drops Ahead of Earnings Report
- Amazon Earnings Preview: Amazon is set to release its earnings report on Thursday, with its stock dropping 2.4% ahead of the announcement, indicating cautious investor sentiment that may impact short-term market confidence.
- Alphabet's Strong Performance: Alphabet exceeded Wall Street expectations in its fourth-quarter earnings report released on Wednesday, although its stock fell about 1% in after-hours trading; the projected capital expenditures for 2026 are expected to reach between $175 billion and $185 billion, nearly double that of 2025, reflecting a strong commitment to future growth.
- Qualcomm's Disappointing Guidance: Qualcomm reported quarterly earnings that surpassed expectations, yet its stock fell 9% in after-hours trading due to disappointing forward guidance, highlighting investor concerns about future performance, with shares down nearly 13% year-to-date in 2026.
- Strong Consumer Staples Sector: The Consumer Staples Select Sector SPDR ETF (XLP) has risen for four consecutive days, gaining over 1% each day and hitting new highs in the past three sessions, indicating strong performance in 2026 with over 12% growth year-to-date, making it the third-best performing sector in the market.
See More
