ExxonMobil (NYSE: XOM) US$154.77

We’re sure must MM members remember the phrase “Drill baby drill” coined by the President to flag pipeline approvals, LNG export expansion, and rolling back EPA restrictions, all being constructive for US energy majors. ExxonMobil Corporation (XOM US) and Chevron Corporation (CVX US) are the direct beneficiaries, with XLE the ETF alternative. The complication in 2026 has been the US-Iran conflict creating volatile oil prices; however, the policy tailwind is intact.

The policy assistance in the US is in stark contrast to our own, and the underperformance by Woodside (WDS) has been the result. Unfortunately, we see no reason for this performance differential to change; our preferred oil and gas play into Christmas is XOM, although it doesn’t come with the franking credits of WDS.

• While Oil prices will come under pressure on any resolution in the Middle East, we still believe that XOM is well placed to benefit from Trump’s pro-energy policies.