Exxon Mobil's Record Output and Global Expansion Plans Boost Valuation

Exxon Mobil reported its highest Q2 production in 25 years, with over half coming from high-return, advantaged assets. The company has expansion plans in China, Singapore, and the UK, expected to add over $3 billion to earnings by 2026. Analysts note Exxon Mobil is at a critical inflection point for future growth plans. The share price has risen 11% in 3 months and is up 2.5% from a year ago. The most popular narrative suggests Exxon Mobil's shares are undervalued, trading at a noticeable discount to estimated fair value.

Exxon Mobil Corporation (NYSE:XOM) reported its highest Q2 production in 25 years, with over half of the production coming from high-return, advantaged assets. The Texas-based company, formed in 1999 through the merger of Exxon Corporation and Mobil Corporation, is one of the world’s largest publicly traded international energy and chemical companies. On August 1, 2025, Exxon Mobil announced its Q2 2025 earnings, boasting the highest Q2 production since its foundation over 25 years ago [1].

The company also announced expansion plans in China, Singapore, and the UK, which are expected to drive over $3 billion in earnings by 2026. Analysts have increased their price targets following these results, with UBS, for instance, raising its price target from $130 to $143 while retaining a Buy rating for Exxon Mobil [1].

Exxon Mobil's Vice President of Corporate Strategic Planning, Darrin L. Talley, sold 2,158 shares in a transaction valued at $238,351 on August 25, 2025. The company's dividend yield currently stands at 3.54%, with a favorable payout ratio of 55.68% [1].

Nomura Holdings Inc. recently reduced its stake in Exxon Mobil by 55%, leaving it with 25,382 shares valued at approximately $3 million as of its latest SEC filing. The company's most recent earnings report showed it beating analysts' expectations, with $1.64 EPS on revenue of $81.51 billion, albeit down 12.4% from the previous year [3].

Exxon Mobil's share price has risen 11% in the last three months and is up 2.5% from a year ago. The most popular narrative suggests that Exxon Mobil's shares are undervalued, trading at a noticeable discount to estimated fair value.

References:
[1] https://finance.yahoo.com/news/price-target-hikes-insider-sale-054522402.html
[3] https://www.marketbeat.com/instant-alerts/filing-nomura-holdings-inc-lowers-position-in-exxon-mobil-corporation-xom-2025-09-02/