ExxonMobil and Enterprise Products Partners are two energy giants with diverging outlooks amid softer oil prices. West Texas Intermediate crude is hovering around $70 per barrel, down from over $100 in May, which is expected to hurt ExxonMobil's upstream earnings despite its cost-advantaged Permian and Guyana assets. In contrast, Enterprise Products' midstream business generates stable fee-based revenues from its 50,000-mile pipeline network, making it less vulnerable to commodity price swings. Enterprise Products trades at a trailing 12-month EV/EBITDA of 11.29 times, a premium over ExxonMobil's 9.13 times, reflecting investor preference for midstream stability. Both stocks carry a Zacks Rank of 3, or Hold.
Exxon Mobil CorpSofter oil prices (WTI around $70) are expected to hurt ExxonMobil's upstream earnings despite cost advantages.
Enterprise Products Partners LPEnterprise Products' fee-based midstream revenues are stable and less vulnerable to oil price declines, which is favorable compared to upstream peers.