ConocoPhillips (COP): Is the Exxon Mobil Corporation (XOM) Empire Crumbling?

Does that mean Exxon Mobil Corporation (NYSE:XOM) is a great investment? Maybe not, especially relative to some of its peers. This is a company that’s already trading at a premium to these peers. Its production growth rate is lower, and at 2.6%, it does have a lower dividend yield. For example, ConocoPhillips (NYSE:COP) projects to grow its production by 3% to 5% annually through 2017 while sporting a 4.5% dividend. Meanwhile, Chevron Corporation (NYSE:CVX) has a 3% dividend yield while it expects to grow its production 6% annually through 2017.

They aren’t alone in growing production faster than Exxon Mobil Corporation (NYSE:XOM). Joining them with a projected 5% annual growth is Royal Dutch Shell . The difference here is that Shell pays its investors a top dividend rate to wait for that growth to materialize, as its dividend yield comes in at more than 5%. Exxon’s dividend yield is the lowest of the bunch because it’s focused its capital on those share buybacks.

Sure, the company could spend more money to produce more energy, but instead it took a total return approach, which included dividend increases and share buybacks along with plenty of capital spent on future growth projects. Over the years, this path has served its investors well:

Source: ExxonMobil investor presentation.

That balanced approach will keep Exxon Mobil Corporation (NYSE:XOM) as the top energy holding for many investors for years to come. While it might not outperform those peers, it’s still likely to be a pretty good investment over the long term. The ExxonMobil empire is rock solid, if you ask me.

The article Is the ExxonMobil Empire Crumbling? originally appeared on Fool.com.

Fool contributor Matt DiLallo owns shares of ConocoPhillips. The Motley Fool recommends Chevron.

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