⚠ The Cash Pile Fell Fifty-Four Per Cent in One YearModerate threat

ExxonMobil (XOM) — threat to the moat

Cash fell fifty-four per cent in a year the company generated fifty-two billion dollars from operations.

ExxonMobil's cash and equivalents went from $23,187 million at the start of 2025 to $10,681 million at the end of it1 — a fall of $12,506 million, or fifty-four per cent, in a year the company generated $51,970 million from operations2.

Cash and equivalents at year end, in $m29,640202231,568202323,187202410,68120252022 excludes restricted cash. The 2025 fall funded distributions above free cash flow.
A standing option to buy assets in a downturn, spent on a buyback in a falling-price year.

The arithmetic of where it went is not complicated. Operating cash flow $51,970 million, less $28,358 million of additions to property, plant and equipment, less $17,231 million of dividends, less $20,273 million of common stock acquired, plus $3,158 million of asset sale proceeds, plus a net addition of debt and other financing items3. The distributions exceeded what the business generated after investment, and the balance came out of the account.

That is a choice rather than a problem, and it is worth being precise about the scale. Even after the drawdown, ExxonMobil holds more cash than most companies in this collection have market value, and it could borrow tens of billions at investment-grade rates tomorrow. The company's own framing is that it strengthened the balance sheet in the second quarter of 20264, and net debt to capital of 11.0 per cent is conservative by any standard5.

The cost is optionality. The 2023 and 2024 cash positions — $31,568 million and $23,187 million6 — was a standing option to buy assets in a downturn without asking anybody's permission. That is the option ExxonMobil exercised on Denbury and, in stock, on Pioneer. At $10,681 million it is a smaller option.

The direction has stabilised: cash was $10,588 million at the end of June 2026, essentially flat over the half, on free cash flow of $19,935 million against $18.6 billion of distributions7.

Watch free cash flow after distributions. It was negative by roughly $14 billion in 2025 and positive by about $1.3 billion in the first half of 20268. A second consecutive year of negative coverage, at a lower oil price, would be the signal that the buyback is being funded rather than earned.

References
  1. ReportedExxonMobil's cash and equivalents went from $23,187 million at the start of 2025 to $10,681 million at the end of it — a fall of $12,506 million, or fifty-four per cent, in a year the company generated $51,970 million from operations.
    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 ↗
  2. ReportedExxonMobil's cash and equivalents went from $23,187 million at the start of 2025 to $10,681 million at the end of it — a fall of $12,506 million, or fifty-four per cent, in a year the company generated $51,970 million from operations.
    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 ↗
  3. ReportedOperating cash flow $51,970 million, less $28,358 million of additions to property, plant and equipment, less $17,231 million of dividends, less $20,273 million of common stock acquired, plus $3,158 million of asset sale proceeds, plus a net addition of debt and other financing items.
    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 ↗
  4. ReportedThe company's own framing is that it strengthened the balance sheet in the second quarter of 2026, and net debt to capital of 11.0 per cent is conservative by any standard.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  5. ReportedThe company's own framing is that it strengthened the balance sheet in the second quarter of 2026, and net debt to capital of 11.0 per cent is conservative by any standard.
    Exxon Mobil Corporation Form 10-K for FY2025, Financial Information summary — sales and other operating revenue, net income, earnings per share, return to average equity, working capital, additions to property plant and equipment, long-term and total debt, debt and net debt to capital, equity per share, research and development, and the number of regular employees. — FY2025 · publ. February 2026 · source ↗
  6. ReportedThe 2023 and 2024 cash positions — $31,568 million and $23,187 million — was a standing option to buy assets in a downturn without asking anybody's permission.
    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 ↗
  7. ReportedThe direction has stabilised: cash was $10,588 million at the end of June 2026, essentially flat over the half, on free cash flow of $19,935 million against $18.6 billion of distributions.
    ExxonMobil Holdings Corporation second-quarter 2026 earnings release (Exhibit 99.1 to Form 8-K of 31 July 2026) — earnings and volume summary by segment on both a GAAP and an adjusted basis, cash flow from operations excluding working capital, free cash flow, cash capital expenditures by segment, structural cost savings, adjusting items, and the chief executive's commentary. — Q2 2026 · publ. 31 July 2026 · source ↗
  8. Moat Explorer calcIt was negative by roughly $14 billion in 2025 and positive by about $1.3 billion in the first half of 2026.
    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