ExxonMobil is one of the world's largest oil and gas producers

ExxonMobil Corporation is a multinational energy company that explores for, produces, and sells crude oil, natural gas, and petroleum products. The company operates in more than 50 countries and employs over 60,000 people worldwide. You encounter ExxonMobil products most directly at the pump — the company owns and operates thousands of Exxon and Mobil gas stations across North America, and it supplies fuel to many independent stations as well.

ExxonMobil was formed in 1999 when Exxon Corporation and Mobil Corporation merged. Both companies trace their roots to Standard Oil, the oil monopoly broken up by the U.S. government in 1911. Today, ExxonMobil competes with other major oil producers like Chevron, Shell, and BP, and it is one of the largest publicly traded companies in the world by market value.

The company's business divides into three main segments: upstream (finding and extracting oil and gas from the ground), downstream (refining crude oil into gasoline and other products, and selling them), and chemical (making plastics, lubricants, and other petroleum-based materials). Most of what you buy at an Exxon or Mobil station comes from the downstream business.

Key Takeaways

  • ExxonMobil operates oil and gas fields, refineries, and thousands of gas stations under the Exxon and Mobil brands across North America and globally.
  • The company was created in 1999 from the merger of Exxon and Mobil, both descendants of the original Standard Oil company.
  • ExxonMobil makes money by extracting crude oil and natural gas, refining them into consumer products like gasoline and diesel, and selling those products at retail stations and to other businesses.
  • The company is publicly traded, meaning you can buy shares of stock in it through a brokerage account, and it pays dividends to shareholders.
  • ExxonMobil's operations and profits are affected by global oil prices, which fluctuate based on supply, demand, geopolitical events, and other factors.

How ExxonMobil makes money from oil and gas

ExxonMobil's core business is finding oil and natural gas underground, extracting it, and selling it. The upstream division operates oil fields and gas fields in places like the Gulf of Mexico, West Africa, Southeast Asia, and the Middle East. Once crude oil is extracted, it moves to refineries — large industrial facilities where the crude is heated and separated into different products based on weight and boiling point. Gasoline, diesel, jet fuel, heating oil, and liquefied petroleum gas (LPG) all come from this refining process.

The downstream division owns and operates these refineries and also owns the retail gas stations where consumers buy fuel. When you fill up at an Exxon or Mobil station, you are buying gasoline that ExxonMobil refined from crude oil it extracted. The company also sells fuel in bulk to airlines, shipping companies, and other industrial customers. The chemical division takes some of that refined crude and converts it into plastics, synthetic rubber, lubricants, and specialty chemicals used in manufacturing.

ExxonMobil's profit depends heavily on the price of crude oil. When crude prices are high, the company's upstream business generates more revenue. When prices fall, profits shrink. The company also faces costs for exploration (drilling test wells to find new reserves), extraction (operating the wells), refining (running the refineries), and distribution (transporting products to market). Competition from other oil companies, renewable energy sources, and changing fuel demand all affect how much ExxonMobil can earn.

ExxonMobil as a publicly traded company

ExxonMobil is a public corporation, which means it is owned by shareholders — people and institutions that own pieces of the company in the form of stock. You can buy ExxonMobil stock through a brokerage account at firms like Fidelity, Charles Schwab, or Vanguard. The stock trades on the New York Stock Exchange under the ticker symbol XOM.

As a shareholder, you own a fractional stake in the company's assets and earnings. If ExxonMobil becomes more valuable, your shares typically become worth more. The company also pays dividends — regular cash payments to shareholders, usually quarterly — from its profits. ExxonMobil has a long history of paying dividends and is considered a dividend stock, meaning investors often buy it for the steady income it provides rather than expecting rapid stock price growth.

ExxonMobil reports its financial results quarterly and annually to the U.S. Securities and Exchange Commission (SEC). These reports are public and show how much revenue the company earned, what it spent, and how much profit it made. Investors use these reports to decide whether to buy, hold, or sell the stock. The company's board of directors and executive leadership make decisions about where to invest money, which oil fields to develop, and how much cash to return to shareholders.

Where ExxonMobil operates around the world

ExxonMobil has significant operations on every continent except Antarctica. In the United States, the company operates oil and gas fields in the Gulf of Mexico and onshore in Texas, Oklahoma, and other states. It also runs major refineries in Louisiana, Texas, and California. The Exxon and Mobil gas station brands are visible across North America, with thousands of locations.

Internationally, ExxonMobil has major projects in the Middle East (Saudi Arabia, Qatar, United Arab Emirates), Africa (Angola, Nigeria, Equatorial Guinea), Southeast Asia (Indonesia, Malaysia, Papua New Guinea), and Europe (Norway, Russia). The company also operates in South America and Australia. Each country where ExxonMobil operates has its own regulations, tax rates, and political environment, which affects how the company does business and how much profit it can keep.

Large oil and gas projects often take years to develop. ExxonMobil might spend billions of dollars exploring a region, drilling test wells, building infrastructure, and obtaining permits before a single barrel of oil is produced. Once a field is operating, it can produce for decades. This long time horizon means ExxonMobil must make decisions based on predictions about future oil demand, future prices, and future regulations — predictions that often prove wrong.

How oil prices affect ExxonMobil's business

The price of crude oil is set by global supply and demand, not by ExxonMobil or any single company. When crude prices rise, ExxonMobil's upstream business (oil and gas extraction) becomes more profitable because the company sells the same amount of oil for more money. When crude prices fall, profits fall even if the company extracts the same volume. This price sensitivity means ExxonMobil's earnings can swing dramatically from year to year based on factors completely outside the company's control.

Geopolitical events, weather, economic recessions, and changes in energy policy all affect crude prices. A hurricane in the Gulf of Mexico can disrupt production and push prices up. A recession reduces demand for fuel and pushes prices down. A war or sanctions in an oil-producing country can restrict supply and raise prices. ExxonMobil cannot prevent these events, but it tries to manage risk by diversifying where it operates and by hedging — using financial contracts to lock in prices for some of its future production.

The shift toward renewable energy and electric vehicles also affects ExxonMobil's long-term outlook. As more people drive electric cars and more electricity comes from wind and solar, demand for gasoline and diesel may decline. ExxonMobil has begun investing in lower-carbon energy sources and carbon capture technology, but oil and gas still make up the vast majority of its business and profits.

ExxonMobil's environmental and regulatory challenges

Oil extraction, refining, and burning all produce greenhouse gas emissions that contribute to climate change. ExxonMobil faces pressure from governments, investors, and the public to reduce emissions and transition to cleaner energy. Many countries have set targets to reduce carbon emissions, and some have announced plans to phase out gasoline and diesel vehicles. These policies directly threaten ExxonMobil's core business.

The company also faces strict environmental regulations in every country where it operates. Refineries must control air and water pollution. Oil drilling must follow safety standards to prevent spills. Transporting oil by pipeline or ship carries the risk of accidents that can damage ecosystems. ExxonMobil invests billions in safety equipment and environmental compliance, and these costs reduce profits.

Lawsuits and regulatory investigations into ExxonMobil's climate impact are ongoing in multiple countries. Some investors and activists argue the company should move faster toward renewable energy. Others argue that oil and gas will remain essential for decades and that ExxonMobil should focus on producing them as cleanly as possible. These tensions shape the company's strategy and its relationship with governments and the public.

How to research ExxonMobil if you are considering investing

If you are thinking about buying ExxonMobil stock, start by reading the company's annual report and quarterly earnings reports, which are free and available on the ExxonMobil investor relations website. These documents explain what the company does, where it operates, what risks it faces, and how much money it made. The SEC's EDGAR database also has all of ExxonMobil's official filings.

Compare ExxonMobil to other oil companies like Chevron, Shell, and BP. Look at their profit margins, dividend yields, debt levels, and production volumes. Read analyst reports from investment banks and research firms — many are free through your brokerage. Check financial news sites like Bloomberg, Reuters, and the Wall Street Journal for reporting on the oil industry and ExxonMobil specifically.

Consider your own investment goals and risk tolerance. Oil stocks are volatile — their prices swing based on crude oil prices and global events. If you need stable, predictable returns, an oil stock may not be right for you. If you are concerned about climate change, investing in an oil company may conflict with your values. Talk to a financial advisor if you are unsure whether ExxonMobil stock fits your portfolio.

Frequently Asked Questions

What is the difference between Exxon and Mobil gas stations?

Exxon and Mobil are both brands owned by ExxonMobil Corporation since the 1999 merger. The company has kept both brand names and operates them as separate retail networks in different regions. From a customer perspective, both sell ExxonMobil fuel and offer similar services, though station locations and loyalty programs may differ slightly.

Does ExxonMobil pay dividends?

Yes, ExxonMobil pays quarterly dividends to shareholders. The dividend amount varies based on the company's profits and board decisions, but the company has a long history of paying dividends and has increased them most years. You receive dividends only if you own shares of the stock.

How much of the world's oil does ExxonMobil produce?

ExxonMobil is one of the largest oil producers globally, but it does not control a dominant share of world production. The company produces roughly 3 to 4 percent of global crude oil, depending on the year. Most oil is produced by national oil companies in the Middle East and Russia, not by private companies like ExxonMobil.

Is ExxonMobil investing in renewable energy?

ExxonMobil has announced plans to invest in lower-carbon technologies, including carbon capture and hydrogen, but these investments remain small compared to its oil and gas business. The company is moving slowly toward renewables because oil and gas are far more profitable and generate most of its cash flow.

Can I buy ExxonMobil stock directly from the company?

You can buy ExxonMobil stock through a brokerage account at any major investment firm. The company also offers a dividend reinvestment plan (DRIP) that allows shareholders to automatically reinvest dividends into more shares. You cannot buy stock directly from ExxonMobil without going through a broker.