Two of the best managed oil companies show that the Momentum trade has just begun to enter the oil patch. The move began in mid-Dec 2025 with Exxon(XOM) and has yet to reflect in EOG(EOG). It is reflected in XOM’s excellent financial report in the face of WTI declining for 2yrs. Yet, XOM has maintained historically high Gross, Operating and Net Income metrics across the period due to its excellent management team. That investors suddenly are willing to price XOM to the highest Pr/Sales, ~2x, in the last 15yrs indicates with other industrial companies being repriced similarly that we are witnessing a gross market psychology shift towards industrials.
