Exxon Mobil (XOM) Valuation Update Following Strategic BASF Hydrogen Technology Partnership Announcement

Exxon Mobil is teaming up with BASF in a strategic partnership to develop methane pyrolysis technology for producing low-emission hydrogen and solid carbon. This initiative draws on existing natural gas infrastructure and could open new opportunities in the industrial hydrogen market.

See our latest analysis for Exxon Mobil.

Exxon Mobil’s newly announced partnership with BASF has drawn investor attention, with the 30-day share price return climbing 6.05 percent. Momentum has been picking up in recent months. The stock has delivered a solid 4.02 percent total shareholder return over the past year, suggesting confidence in both its short-term moves and longer-term prospects.

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With shares recently gaining momentum, analysts and investors alike are asking whether Exxon Mobil’s growth prospects are fully reflected in its current price, or if there is still a compelling buying opportunity ahead.

Most Popular Narrative: 9.8% Undervalued

At $119.03 per share, Exxon Mobil trades well below the $132.00 fair value calculated in the most widely discussed narrative. The analysis points to deep fundamental changes reshaping the company's outlook.

The market currently undervalues the durability of XOM's cash flow, the significant synergies from the Pioneer acquisition, and the long-term potential of its Low Carbon Solutions business. Under CEO Darren W. Woods, ExxonMobil has strategically shifted from a volume-focused producer to a value-oriented leader. The investment thesis rests on three core pillars: dominant, low-cost upstream assets, disciplined capital allocation, and a pragmatic energy transition strategy.

Read the complete narrative.

Curious what exactly drives this valuation jump? The growth story hinges on three bold bets. One of them may flip industry assumptions on their head. Unpack the logic and see the numbers others are missing.

Result: Fair Value of $132.00 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, commodity price swings and ESG concerns remain significant risks that could quickly change investor sentiment around Exxon Mobil’s growth story.

Find out about the key risks to this Exxon Mobil narrative.

Build Your Own Exxon Mobil Narrative

If you see things differently or want to dive into the numbers yourself, it takes just a few minutes to craft your own view and narrative in your own way. Do it your way

A good starting point is our analysis highlighting 3 key rewards investors are optimistic about regarding Exxon Mobil.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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