1. Exxon Mobil Corporation (NYSE:XOM)
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest integrated energy companies, engaged in the exploration, production, refining, and marketing of crude oil, natural gas, and petroleum products. With operations spanning six continents, XOM has a significant presence in major oil-producing regions, including the Permian Basin, offshore Guyana, and the Middle East. Its upstream segment focuses on crude oil and natural gas extraction, while its downstream business operates a vast refining and petrochemical network, supplying fuels, lubricants, and chemicals to global markets. The company is also a major player in LNG and is investing in carbon capture, hydrogen, and biofuels as part of its long-term energy strategy. Despite expanding into lower-carbon initiatives, crude oil remains central to XOM’s operations. The US-based company ranked 7th on our recent list of 10 Companies That Are Buying Back Their Stock in 2025.
Exxon Mobil Corporation (NYSE:XOM) delivered strong 2024 results with earnings of $34 billion, marking their third-highest result in a decade despite softer market conditions. The company generated cash flow from operations of $55 billion and achieved a ROCE of 13%. In the Upstream segment, the company achieved the highest-ever production from advantaged assets and the highest liquids production from their overall portfolio in more than 40 years. The Permian Basin operations delivered record production from both Heritage ExxonMobil assets and Pioneer assets, with production expected by management to grow from 1.5 million oil-equivalent barrels per day at the end of 2024 to 2.3 million barrels per day by 2030. In Guyana, the company achieved record production, reaching 650,000 barrels per day in just 10 years.
Looking forward, Exxon Mobil Corporation (NYSE:XOM) expects to bring online several major projects in 2025 that will deliver more than $3 billion in earnings potential in 2026 at both constant and current prices and margins. The company plans to build an even more advantaged asset portfolio with 60% of Upstream production from advantaged assets by 2030. Management expects to generate $20 billion more in earnings and $30 billion more in cash flow by 2030 while taking an additional $6 billion in cost out of the business. XOM is also developing new technology-driven businesses, such as Proxxima products and carbon materials, which creates opportunities to expand beyond traditional fuels and chemicals into higher growth, higher-margin markets that are decoupled from commodity price fluctuations. All in all, the management outlook is highly optimistic and largely immune to short-term oil price developments.
Overall Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the 11 best crude oil stocks to buy right now. While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap.
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