The Governments on Both Sides of the BarrelNarrow moat

ExxonMobil (XOM) — moat facet

Landlord, tax authority, partner and collector — and the state takes more from a barrel than the owners do.

The counterparty that appears most often in ExxonMobil's accounts is not a customer at all. It is a state, and it appears in four different roles, sometimes simultaneously.

Who gets what from a year of ExxonMobil, in $m25,167Other taxes and duties11,504Income tax28,844Shareholders (net income)17,231Dividends paidThe state took $36,671m against $28,844m left for the owners.
Landlord, tax authority, partner, collector and price regulator — often the same counterparty.

As landlord, it grants the right to produce. Oil and gas exploration and production rights are acquired from mineral interest owners through leases, and in the United States those owners include federal and state governments as well as private holders1. Outside the United States the arrangement is usually a production sharing contract: in Guyana the Petroleum Activities Act 2023 authorises the government to license and enter petroleum agreements, with production periods of twenty years for an oil field and thirty for a gas field, each renewable for up to ten more2. In Angola, Block 15 amended its production sharing agreement to extend the licence to 20373.

As tax authority, it takes a large share of the result. ExxonMobil paid $11,504 million of income tax in 2025 on $41,268 million of pre-tax income4 — and separately reported $25,167 million of other taxes and duties5, principally excise and similar levies collected on fuel. Those two lines together are $36,671 million, against $28,844 million kept by shareholders. The state takes more from a barrel than the owners do.

As collector, it uses ExxonMobil as its agent. Excise and similar taxes on products sold are reported on a gross basis where the corporation is not considered an agent for the government, appearing in both revenue and costs6. A meaningful slice of what looks like ExxonMobil's revenue is money passing through on its way to a treasury.

As partner and regulator, it sets the terms and can change them. The risk factors list increases or changes in taxes, duties or government royalty rates including retroactive claims, punitive taxes on oil, gas and petrochemical operations, windfall profit taxes, global minimum taxes, and price controls7.

This is the most powerful counterparty relationship ExxonMobil has, and it is entirely one-sided. The measure is the tax take as a share of pre-tax income — 27.9 per cent in 2025, 28.3 per cent in 2024, 29.2 per cent in 20238 — plus the other taxes and duties line, which at $25,167 million is larger than any segment's earnings except Upstream's.

Moat trajectory: Holding steady

Income tax took 27.9 per cent of pre-tax income in 2025 against 29.2 per cent in 2023, and other taxes and duties were $25,167 million. Governments have taken roughly this share of a barrel for decades, and the risk factors say plainly that the terms can be changed retroactively.

The number that tests this moat
Reported
Government take against shareholder earnings
$36,671 million against $28,844 million

Income tax of $11,504 million plus other taxes and duties of $25,167 million, against what was left for the owners. The state takes more from a barrel than the shareholders do, and the risk factors list retroactive claims, windfall profit taxes and price controls among the ways that share can change.

Source: Exxon Mobil Corporation Form 10-K, fiscal year 2025 ↗
References
  1. ReportedOil and gas exploration and production rights are acquired from mineral interest owners through leases, and in the United States those owners include federal and state governments as well as private holders.
    Exxon Mobil Corporation Form 10-K for FY2025, Items 1 and 2 — Business and Properties: oil and gas production and reserves tables, wells drilling, the review of principal ongoing activities by region (United States, Canada/Other Americas incl. Guyana and Brazil, Europe, Africa, Asia, Australia/Oceania), lease and production-sharing terms including the Guyana Petroleum Activities Act 2023, employees, and the list of lower-emission and new business opportunities. — FY2025 · publ. February 2026 · source ↗
  2. ReportedOutside the United States the arrangement is usually a production sharing contract: in Guyana the Petroleum Activities Act 2023 authorises the government to license and enter petroleum agreements, with production periods of twenty years for an oil field and thirty for a gas field, each renewable for up to ten more.
    Exxon Mobil Corporation Form 10-K for FY2025, Items 1 and 2 — Business and Properties: oil and gas production and reserves tables, wells drilling, the review of principal ongoing activities by region (United States, Canada/Other Americas incl. Guyana and Brazil, Europe, Africa, Asia, Australia/Oceania), lease and production-sharing terms including the Guyana Petroleum Activities Act 2023, employees, and the list of lower-emission and new business opportunities. — FY2025 · publ. February 2026 · source ↗
  3. ReportedIn Angola, Block 15 amended its production sharing agreement to extend the licence to 2037.
    Exxon Mobil Corporation Form 10-K for FY2025, Items 1 and 2 — Business and Properties: oil and gas production and reserves tables, wells drilling, the review of principal ongoing activities by region (United States, Canada/Other Americas incl. Guyana and Brazil, Europe, Africa, Asia, Australia/Oceania), lease and production-sharing terms including the Guyana Petroleum Activities Act 2023, employees, and the list of lower-emission and new business opportunities. — FY2025 · publ. February 2026 · source ↗
  4. ReportedExxonMobil paid $11,504 million of income tax in 2025 on $41,268 million of pre-tax income — and separately reported $25,167 million of other taxes and duties, principally excise and similar levies collected on fuel.
    Exxon Mobil Corporation Form 10-K for FY2025, consolidated financial statements — statement of income, balance sheet, statement of cash flows and statement of changes in equity including the common stock share activity table. — FY2025 · publ. February 2026 · source ↗
  5. ReportedExxonMobil paid $11,504 million of income tax in 2025 on $41,268 million of pre-tax income — and separately reported $25,167 million of other taxes and duties, principally excise and similar levies collected on fuel.
    Exxon Mobil Corporation Form 10-K for FY2025, consolidated financial statements — statement of income, balance sheet, statement of cash flows and statement of changes in equity including the common stock share activity table. — FY2025 · publ. February 2026 · source ↗
  6. ReportedExcise and similar taxes on products sold are reported on a gross basis where the corporation is not considered an agent for the government, appearing in both revenue and costs.
    Exxon Mobil Corporation Form 10-K for FY2025, notes to the consolidated financial statements — Note 3 Disclosures about Segments and Related Information (segment revenue, intersegment revenue, segment income, additions to property plant and equipment, total assets, geographic revenue and the revenue-from-contracts disaggregation), Note 7 Litigation and Other Contingencies, and Note 20 Mergers and Acquisitions covering Pioneer Natural Resources and Denbury. — FY2025 · publ. February 2026 · source ↗
  7. ReportedThe risk factors list increases or changes in taxes, duties or government royalty rates including retroactive claims, punitive taxes on oil, gas and petrochemical operations, windfall profit taxes, global minimum taxes, and price controls.
    Exxon Mobil Corporation Form 10-K for FY2025, Item 1A Risk Factors — supply and demand, economic conditions, other demand- and supply-related factors, other market factors, government and political factors, access limitations, lack of legal certainty, regulatory and litigation risks, and the climate change and energy transition discussion. — FY2025 · publ. February 2026 · source ↗
  8. Moat Explorer calcThe measure is the tax take as a share of pre-tax income — 27.9 per cent in 2025, 28.3 per cent in 2024, 29.2 per cent in 2023 — plus the other taxes and duties line, which at $25,167 million is larger than any segment's earnings except Upstream's.
    Moat Explorer calculation from ExxonMobil's reported figures. Crude oil and product purchases of $184,248 million against total costs and other deductions of $290,970 million is 63.3% (2024: $199,454m of $300,712m = 66.3%; 2023: $193,029m of $291,799m = 66.2%). Intersegment revenue of $121,005 million against gross segment revenue of $452,209 million is 26.8%. Depreciation and depletion of $25,993 million against sales of $323,905 million is 8.0% (2023: $20,641m of $334,697m = 6.2%). Income tax of $11,504 million on pre-tax income of $41,268 million is 27.9% (2024: $13,810m of $48,873m = 28.3%; 2023: $15,429m of $52,783m = 29.2%). Revenue outside ASC 606 of $96,996 million of $323,905 million is 29.9% (2024: 27.7%; 2023: 23.4%). The three downstream segments sum to $17,493m (2023), $9,662m (2024) and $11,080m (2025), a rise of $1,418m in 2025 against an Upstream fall of $4,036m. Refinery throughput of 3,979 against production of 4,736 thousand barrels a day is 0.84. Specialty Products earned $2,857m on 7,791 thousand tonnes ($367/t) against $3,052m on 7,666 ($398/t). Free cash flow of $51,970m less $28,358m is $23,612m against distributions of $17,231m plus $20,273m = $37,504m. Energy Products averaged $7.9 billion a year across 2023-2025. — FY2023-FY2025 · publ. September 2026 · source ↗
Sources
Generated September 23, 2026