ExxonMobil (NYSE: XOM) is one of the world’s largest integrated energy companies. With oil and natural gas prices rising in January, ExxonMobil’s stock joined an industry-wide rally. The company’s 17% price advance, however, is built on more than just oil prices. Here’s why Exxon investors should be upbeat about the company’s long-term outlook.
Although Exxon’s business spans the entire energy value chain, there’s no way around the fact that oil and natural gas prices have a huge impact on investor perception of ExxonMobil stock. With Brent Crude prices up around 17% in January, it is hardly surprising that Exxon’s stock rose by a similar amount.
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That’s the proximal cause of Exxon’s advance, but it isn’t the only fact that investors need to know about the business. Notably, Exxon reported earnings on Jan. 30. There were several very positive takeaways.
At the top level, earnings were down year over year, largely due to weaker oil and gas prices. This helps explain why the January oil rally led to a price advance for Exxon. However, dig a little deeper, and you’ll see that Exxon actually increased its production by roughly 9% in 2025, which is a big number. Notably, the company brought 10 projects online in the year.
Producing more oil is how energy companies like Exxon grow over the long term. However, that’s just the first prong of the company’s growth plan. Management is also focusing on the most profitable oil opportunities it has, which it calls advantaged production. In 2025, advantaged production accounted for 59% of the company’s total production, up seven percentage points from 2024.
Oil prices are important — and volatile. But the real reason to be excited about Exxon is that it is investing in its business to become a bigger and better company in the future. January provided the earnings evidence that it is achieving those ends. Sure, oil was the catalyst for the month-long rally, but don’t let that overshadow the real story powering Exxon’s long-term success.
In the end, it is the fundamental strength of Exxon’s business that will support its ability to continue paying a growing dividend. After over four decades of annual dividend increases, January’s earnings release suggests that investors can comfortably collect Exxon’s 2.7% yield with the expectation of more dividend growth to come.
