ExxonMobil (XOM) refining upside could offset lost earnings from its Middle East exposure, and the company could continue making acquisitions as the business grows, RBC Capital Markets said Monday.

The brokerage said it balances the company's strategic clarity and growth trajectory, as well as near-term refining exposure, against its valuation.

Along with many operators in the Permian basin, ExxonMobil continues to improve recovery rates. The recent midstream deal allows the company additional run-way on its gas takeaway from the basin, which may become an issue as gas-to-oil ratios rise and productivity improves, according to the note.

ExxonMobil CFO Neil Hansen noted the company was "unsatisfactorily lagging" LNG peers. RBC sees a path for the company to grow equity production to nearly 40 million tonnes per annum over the coming years, with sales likely to reach toward 50 million tonnes per annum by the end of the decade, the note added.

The brokerage expects ExxonMobil to consider acquiring some of Shell's (SHEL) Chemicals assets as it seeks to grow its presence.

RBC kept a sector perform rating on ExxonMobil, with a price target of $180.

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