Energy ProductsNarrow moat

ExxonMobil (XOM) — moat facet

Three cents of earnings on each dollar of fuel, and a March 2026 quarter that lost $1.3 billion before June earned $5.5 billion.

Energy Products is ExxonMobil's largest segment by far in revenue and one of the thinnest by margin. It sold $268,451 million to outside customers in 2023, $260,967 million in 2024 and $244,536 million in 2025.1

Energy Products earnings ($m)$12,142m2023$4,033m2024$7,423m2025-$1,262mQ1 2026$5,465mQ2 2026ExxonMobil Form 10-K FY2025 and Q2 2026 10-Q; Q1 2026 is the half less Q2
A $1.3 billion loss and a $5.5 billion profit, three months apart.

What is inside the segment is refining and the sale of fuels, aromatics and catalysts and licensing.2 Most of what it sells it first buys: crude and product purchases were 63% of the company's costs in 2025.3

Earnings swing with the refining margin. The segment earned $12,142 million in 2023, $4,033 million in 2024 and $7,423 million in 2025.4 On 2025's sales that is about 3.0 cents of earnings per dollar.5 The 2025 recovery came mainly from margin, which added $1.8 billion on robust demand and supply disruptions, with structural cost savings adding $0.6 billion.6

It is paid the spread between crude and products, which ExxonMobil does not set. Capital employed was $37,683 million and the return 19.7% in 2025, up from 11.7%.7

The first half of 2026 showed how much of that spread is timing. The segment earned $5,465 million in the June quarter, against $1,366 million a year earlier, on $3,180 million of stronger refining margins.8 But first-half earnings were $4,203 million, so the March quarter was a loss of about $1,262 million, with the non-U.S. business losing about $1,923 million.910

The outlook is a smaller refining system outside North America; the page Nine Per Cent Less Oil Refined, Four Times the Money covers what the June quarter did to throughput.

This is a narrow moat: integration and scale in a business priced by others. The figure to follow is the segment's return on capital employed, 19.7% in 2025. A return to 2024's 11.7% at normal margins would show 2025 was the cycle, not the company.

Moat trajectory: Widening

June 2026 quarter earnings of $5,465M against $1,366M on refining margins, after a loss in the March quarter.

The number that tests this moat
Reported
Energy Products return on average capital employed
19.7% in 2025, from 11.7% in 2024

A return to 2024's level at normal margins would show 2025 was the cycle, not the company.

Source: ExxonMobil Form 10-K FY2025 ↗
References
  1. Moat Explorer calcIt sold $268,451 million to outside customers in 2023, $260,967 million in 2024 and $244,536 million in 2025.
    Moat Explorer sum of the U.S. and non-U.S. columns of the segment note in Exxon Mobil Corporation Form 10-K FY2025 - sales and other operating revenue to external customers 2023-2025: Energy Products $268,451M/$260,967M/$244,536M, Upstream $25,574M/$37,131M/$39,389M, Chemical Products $22,265M/$22,896M/$22,209M, Specialty Products $18,407M/$18,253M/$17,771M; non-U.S. Upstream intersegment revenue $36,769M against external $13,993M in 2025 — FY2023-FY2025 · publ. February 2026 · source ↗
  2. ReportedWhat is inside the segment is refining and the sale of fuels, aromatics and catalysts and licensing.
    Exxon Mobil Corporation Form 10-K FY2025 - segment financial results 2023-2025: earnings Upstream $21,308M/$25,390M/$21,354M (U.S. $5,063M, non-U.S. $16,291M in 2025), Energy Products $12,142M/$4,033M/$7,423M, Chemical Products $1,637M/$2,577M/$800M (non-U.S. -$103M), Specialty Products $2,714M/$3,052M/$2,857M; 2025 average capital employed and return: Upstream $209,934M 10.2% (U.S. $118,142M 4.3%, non-U.S. $91,792M 17.7%), Energy Products $37,683M 19.7% (11.7% in 2024), Chemical Products $29,510M 2.7% (U.S. 6.4%, non-U.S. -0.7%), Specialty Products $8,073M 35.4% (U.S. 59.3% from 77.4%, non-U.S. 27.4%); 2025 earnings drivers by segment; segment product descriptions; Pioneer merger closed 3 May 2024; one-dollar Brent sensitivity; crude and product purchases 63% of costs — FY2023-FY2025 · publ. February 2026 · source ↗
  3. ReportedMost of what it sells it first buys: crude and product purchases were 63% of the company's costs in 2025.
    Exxon Mobil Corporation Form 10-K FY2025 - segment financial results 2023-2025: earnings Upstream $21,308M/$25,390M/$21,354M (U.S. $5,063M, non-U.S. $16,291M in 2025), Energy Products $12,142M/$4,033M/$7,423M, Chemical Products $1,637M/$2,577M/$800M (non-U.S. -$103M), Specialty Products $2,714M/$3,052M/$2,857M; 2025 average capital employed and return: Upstream $209,934M 10.2% (U.S. $118,142M 4.3%, non-U.S. $91,792M 17.7%), Energy Products $37,683M 19.7% (11.7% in 2024), Chemical Products $29,510M 2.7% (U.S. 6.4%, non-U.S. -0.7%), Specialty Products $8,073M 35.4% (U.S. 59.3% from 77.4%, non-U.S. 27.4%); 2025 earnings drivers by segment; segment product descriptions; Pioneer merger closed 3 May 2024; one-dollar Brent sensitivity; crude and product purchases 63% of costs — FY2023-FY2025 · publ. February 2026 · source ↗
  4. ReportedThe segment earned $12,142 million in 2023, $4,033 million in 2024 and $7,423 million in 2025.
    Exxon Mobil Corporation Form 10-K FY2025 - segment financial results 2023-2025: earnings Upstream $21,308M/$25,390M/$21,354M (U.S. $5,063M, non-U.S. $16,291M in 2025), Energy Products $12,142M/$4,033M/$7,423M, Chemical Products $1,637M/$2,577M/$800M (non-U.S. -$103M), Specialty Products $2,714M/$3,052M/$2,857M; 2025 average capital employed and return: Upstream $209,934M 10.2% (U.S. $118,142M 4.3%, non-U.S. $91,792M 17.7%), Energy Products $37,683M 19.7% (11.7% in 2024), Chemical Products $29,510M 2.7% (U.S. 6.4%, non-U.S. -0.7%), Specialty Products $8,073M 35.4% (U.S. 59.3% from 77.4%, non-U.S. 27.4%); 2025 earnings drivers by segment; segment product descriptions; Pioneer merger closed 3 May 2024; one-dollar Brent sensitivity; crude and product purchases 63% of costs — FY2023-FY2025 · publ. February 2026 · source ↗
  5. Moat Explorer calcOn 2025's sales that is about 3.0 cents of earnings per dollar.
    Moat Explorer calculation from ExxonMobil's Form 10-K FY2025 and Q2 2026 10-Q: segment shares of external sales and of segment earnings, earnings per dollar of sales, and the March 2026 quarter as the six months less the June quarter — 2025 to Q2 2026 · publ. 2026-09-23 · source ↗
  6. ReportedThe 2025 recovery came mainly from margin, which added $1.8 billion on robust demand and supply disruptions, with structural cost savings adding $0.6 billion.
    Exxon Mobil Corporation Form 10-K FY2025 - segment financial results 2023-2025: earnings Upstream $21,308M/$25,390M/$21,354M (U.S. $5,063M, non-U.S. $16,291M in 2025), Energy Products $12,142M/$4,033M/$7,423M, Chemical Products $1,637M/$2,577M/$800M (non-U.S. -$103M), Specialty Products $2,714M/$3,052M/$2,857M; 2025 average capital employed and return: Upstream $209,934M 10.2% (U.S. $118,142M 4.3%, non-U.S. $91,792M 17.7%), Energy Products $37,683M 19.7% (11.7% in 2024), Chemical Products $29,510M 2.7% (U.S. 6.4%, non-U.S. -0.7%), Specialty Products $8,073M 35.4% (U.S. 59.3% from 77.4%, non-U.S. 27.4%); 2025 earnings drivers by segment; segment product descriptions; Pioneer merger closed 3 May 2024; one-dollar Brent sensitivity; crude and product purchases 63% of costs — FY2023-FY2025 · publ. February 2026 · source ↗
  7. ReportedCapital employed was $37,683 million and the return 19.7% in 2025, up from 11.7%.
    Exxon Mobil Corporation Form 10-K FY2025 - segment financial results 2023-2025: earnings Upstream $21,308M/$25,390M/$21,354M (U.S. $5,063M, non-U.S. $16,291M in 2025), Energy Products $12,142M/$4,033M/$7,423M, Chemical Products $1,637M/$2,577M/$800M (non-U.S. -$103M), Specialty Products $2,714M/$3,052M/$2,857M; 2025 average capital employed and return: Upstream $209,934M 10.2% (U.S. $118,142M 4.3%, non-U.S. $91,792M 17.7%), Energy Products $37,683M 19.7% (11.7% in 2024), Chemical Products $29,510M 2.7% (U.S. 6.4%, non-U.S. -0.7%), Specialty Products $8,073M 35.4% (U.S. 59.3% from 77.4%, non-U.S. 27.4%); 2025 earnings drivers by segment; segment product descriptions; Pioneer merger closed 3 May 2024; one-dollar Brent sensitivity; crude and product purchases 63% of costs — FY2023-FY2025 · publ. February 2026 · source ↗
  8. ReportedThe segment earned $5,465 million in the June quarter, against $1,366 million a year earlier, on $3,180 million of stronger refining margins.
    ExxonMobil Form 10-Q, quarter to 30 June 2026 - segment earnings Q2 2026 against Q2 2025: Upstream $7,927M/$5,402M (price +$4,650M, advantaged volume +$1,140M, Middle East volume -$1,060M), Energy Products $5,465M/$1,366M (margin +$3,180M), Chemical Products $1,131M/$293M (margin +$980M, advantaged volume -$130M; non-U.S. $532M), Specialty Products $956M/$780M (U.S. $287M, non-U.S. $669M); six months Upstream $13,664M, Energy Products $4,203M (non-U.S. $555M), Chemical Products $1,241M, Specialty Products $1,607M — Q2 2026 · publ. August 2026 · source ↗
  9. ReportedBut first-half earnings were $4,203 million, so the March quarter was a loss of about $1,262 million, with the non-U.S. business losing about $1,923 million.
    ExxonMobil Form 10-Q, quarter to 30 June 2026 - segment earnings Q2 2026 against Q2 2025: Upstream $7,927M/$5,402M (price +$4,650M, advantaged volume +$1,140M, Middle East volume -$1,060M), Energy Products $5,465M/$1,366M (margin +$3,180M), Chemical Products $1,131M/$293M (margin +$980M, advantaged volume -$130M; non-U.S. $532M), Specialty Products $956M/$780M (U.S. $287M, non-U.S. $669M); six months Upstream $13,664M, Energy Products $4,203M (non-U.S. $555M), Chemical Products $1,241M, Specialty Products $1,607M — Q2 2026 · publ. August 2026 · source ↗
  10. Moat Explorer calcBut first-half earnings were $4,203 million, so the March quarter was a loss of about $1,262 million, with the non-U.S. business losing about $1,923 million.
    Moat Explorer calculation from ExxonMobil's Form 10-K FY2025 and Q2 2026 10-Q: segment shares of external sales and of segment earnings, earnings per dollar of sales, and the March 2026 quarter as the six months less the June quarter — 2025 to Q2 2026 · publ. 2026-09-23 · source ↗
Sources
Generated September 23, 2026