$Exxon Mobil(XOM)$ Exxon Mobil shares have handily outperformed the Zacks Oil and Gas - Integrated - International industry over the past year (+85.5% vs. +55.6%). The company’s bellwether status and optimal integrated capital structure that has historically produced industry-leading returns make it a relatively lower-risk energy sector play.

The firm has made more than 30 discoveries in offshore Guyana since 2015. ExxonMobil also has a strong presence in the prolific Permian Basin, where it expects to boost production volumes by 25% in 2022. The energy major has significantly lower debt exposure than composite players belonging to the industry. XOM recently reported strong third-quarter earnings owing to higher prices and production, and strong refining margins.

However, the company has been constantly bearing the brunt of increasing expenses, adversely affecting the income. Also, the aggressive capital budget remains a headwind for the company. As such, the stock warrants a cautious stance