The 2025 oil market tested even the strongest operators. Crude prices softened from 2024 highs, chemical margins weakened globally, and inflation continued to pressure operating costs. Yet despite those headwinds, ExxonMobil demonstrated why scale, asset quality, and execution discipline still matter.
Even with lower oil prices in 2025, ExxonMobil delivered excellent financial and operational results — anchored by record production, industry‑leading cost performance, and standout growth in the Permian Basin.
A Resilient Year in a Softer Price Environment
ExxonMobil closed 2025 with $28.8 billion in earnings and generated $52 billion in cash flow from operations, allowing the company to return more than $37 billion to shareholders through dividends and share repurchases.
While earnings declined year over year due to lower commodity prices and weaker chemical margins, the underlying business grew stronger. Structural cost savings, advantaged assets, and higher volumes offset much of the macro pressure.
The company’s transformation over the past several years — emphasizing capital discipline, integration, and technology — continues to deliver a more resilient earnings profile across cycles.
Record Production — Highest in Over 40 Years
One of the most notable achievements in 2025 was production.
ExxonMobil’s net production averaged 4.7 million barrels of oil equivalent per day, the company’s highest level in more than four decades. Fourth‑quarter volumes climbed even higher, reaching approximately 5.0 million boe/d.
This growth was not driven by short‑cycle spending or temporary activity spikes. It came from a deliberate focus on advantaged assets — primarily the Permian Basin, Guyana, and LNG — which now account for nearly 60% of total company production.
Among these, the Permian stood out.
The Permian: ExxonMobil’s Core Growth Engine
ExxonMobil’s Permian operations reached record production levels in 2025, averaging approximately 1.6 million boe/d — the highest in the company’s history.
The basin was a primary contributor to:
- Overall production growth
- Strong operating cash flow
- Improved corporate cost efficiency
As volumes ramped, ExxonMobil benefited from its unmatched scale across West Texas and New Mexico. Integrated development, centralized infrastructure, and consistent drilling execution allowed the company to grow output while maintaining capital discipline.
In the fourth quarter alone, Permian production climbed further, helping push companywide volumes to record quarterly levels.
This performance reinforces the basin’s role as ExxonMobil’s most important onshore asset — not just for growth, but for durability.
Why the Permian Matters Strategically
The Permian Basin provides ExxonMobil with several structural advantages:
- Low breakeven economics that remain competitive even in weaker price environments
- Long‑duration inventory supporting multi‑decade development
- Integrated infrastructure connecting upstream production directly to Gulf Coast refining, chemical, and export systems
- Operational scale that enables efficiency gains smaller operators cannot replicate
These advantages translate directly into cash flow stability — a critical differentiator in volatile markets.
In 2025, Permian growth helped offset price weakness elsewhere, reinforcing the basin’s role as a foundation asset rather than a cyclical lever.
Cash Flow Strength Enabled Shareholder Returns
Despite lower oil prices, ExxonMobil generated $26 billion in free cash flow during 2025.
That cash supported:
- $17.2 billion in dividends
- $20 billion in share repurchases
The company also increased its quarterly dividend by 4%, extending its dividend growth streak to 43 consecutive years — one of the longest records in the S&P 500.
This level of shareholder return underscores management’s confidence in the durability of its asset base and future cash generation.
Discipline Over Volume for Volume’s Sake
Importantly, ExxonMobil’s growth was not achieved through aggressive spending.
Capital expenditures totaled approximately $29 billion in 2025, and guidance for 2026 remains flat at $27–$29 billion, signaling a continued focus on returns rather than expansion for its own sake.
At the same time, the company has now achieved more than $15 billion in cumulative structural cost savings since 2019 — more than all other international oil companies combined.
This cost advantage enhances the value of every incremental barrel produced, particularly in assets like the Permian.
Looking Ahead: Permian, Guyana, and LNG
With Golden Pass LNG nearing startup, Guyana continuing to ramp production, and the Permian delivering steady growth, ExxonMobil enters 2026 positioned for improving earnings power — even if commodity prices remain volatile.
The Permian will remain central to that story:
- A reliable source of high‑return barrels
- A major contributor to corporate cash flow
- A foundation for long‑term capital efficiency
Final Takeaway
2025 reinforced a key reality in today’s oil and gas market:
Strong operators don’t rely on prices — they rely on asset quality.
Even with lower oil prices, ExxonMobil delivered excellent results by executing at scale, controlling costs, and leaning into its best assets.
And at the center of that performance stood the Permian Basin — operating at record levels, driving production growth, and underpinning the company’s cash‑flow strength as ExxonMobil moves into the next phase of its growth cycle.
