Workflow
ExxonMobil(XOM)
icon
Search documents
ExxonMobil Challenges Colonial Pipeline's Fuel Shipping Plan
ZACKS· 2025-03-20 13:35
Group 1 - Exxon Mobil Corporation (XOM) has formally protested Colonial Pipeline's proposed changes to fuel shipping terms, claiming potential disruptions to supply chains and increased costs for shippers and consumers [1][3] - Colonial Pipeline, which operates a 5,500-mile pipeline from the U.S. Gulf Coast to the East Coast, seeks FERC approval to eliminate simultaneous shipments of different gasoline grades and reduce the number of grades transported, arguing that these changes will enhance efficiency and increase fuel shipments [2][4] - ExxonMobil argues that the proposed changes would negatively affect the gasoline supply chain by removing a grade it supplies and increasing costs to meet new fuel specifications, while also criticizing Colonial's plan to blend fuel and supply cheaper grades at destination markets [3][4] Group 2 - Colonial Pipeline stands by its proposal, asserting that it will optimize its system, enhance fuel availability, and minimize operational slowdowns, while claiming that any price fluctuations from the revisions would be minimal and temporary [4][5] - The outcome of the regulatory dispute between ExxonMobil and Colonial Pipeline could significantly impact fuel transportation dynamics along the critical Gulf Coast-to-East Coast corridor [5] Group 3 - ExxonMobil currently holds a Zacks Rank 3 (Hold), while other energy sector stocks like Archrock Inc. (AROC), NextDecade Corporation (NEXT), and Oceaneering International, Inc. (OII) have better rankings, with Archrock rated 1 (Strong Buy) and the others rated 2 (Buy) [6] - Archrock focuses on midstream natural gas compression and generates stable fee-based revenues [7] - NextDecade is positioned in the LNG market with its Rio Grande LNG project in Texas, benefiting from growing demand for LNG and strategic investments in infrastructure [8] - Oceaneering International provides integrated technology solutions across the offshore oilfield lifecycle, maintaining a balanced revenue mix and strong relationships with top-tier customers [9]
Chevron's High Confidence Is Driving It to Wager Over $2 Billion That It Will Close This Needle-Moving Acquisition
The Motley Fool· 2025-03-19 22:41
In late 2023, Chevron (CVX 1.98%) made a bold move by agreeing to acquire Hess (HES 2.38%) for $53 billion. The transaction will enhance and extend the company's production and free cash flow growth outlook into the next decade. However, that deal hasn't closed yet because of a dispute with rival ExxonMobil (XOM 1.54%) over its lucrative partnership with Hess in offshore Guyana. The oil giants are battling in court over the deal. Chevron is so confident it will win that it recently bought about 5% of Hess' ...
3 Energy Stocks With Cheap Valuations and Big Returns Ahead
MarketBeat· 2025-03-19 12:21
From tariffs to cuts in government spending, American markets are facing significant uncertainty, and some investors fear a recession could be on the horizon. While the future outlook remains uncertain, some investors are taking current dips in pricing as an opportunity to add sometimes volatile energy stocks to their portfolios.  The energy sector is highly volatile, but some winners are experiencing price dips that suggest a temporary overcorrection. These stocks now trade at P/E ratios below 20, making t ...
ExxonMobil Integrates 4D Seismic Tech for Faster Oil Discovery
ZACKS· 2025-03-17 15:25
Core Insights - Exxon Mobil Corporation (XOM) is enhancing its oil and gas exploration capabilities by integrating 4D seismic technology with its high-performance computing system, Discovery 6, which is expected to reduce seismic processing times and improve subsurface imaging [1][2][4] Group 1: Technology Integration - The integration of 4D seismic technology with Discovery 6 supercomputer, developed in collaboration with Hewlett Packard Enterprise and NVIDIA, aims to provide up to four times the computational power compared to its predecessor, Discovery 5 [2][6] - The use of 4D seismic imaging allows ExxonMobil to create high-resolution time-lapse models of underground reservoirs, leading to more accurate predictions of oil and gas movements [3][8] - The elastic full wavefield inversion (eFWI) technology will significantly reduce the seismic data processing time from months to weeks, enhancing subsurface imaging [4][6] Group 2: Financial Implications - ExxonMobil estimates that these technological advancements could unlock over $1 billion in potential value from its first six floating production storage and offloading (FPSO) units in Guyana's Stabroek Block [5] - The company is focused on increasing efficiency while maintaining capital discipline, aligning with its broader strategic goals [5][8] Group 3: Future Developments - Discovery 6 is scheduled for installation in the first half of 2025 and will feature energy-efficient direct liquid cooling to optimize performance [6][7] - The investment in Discovery 6 represents a significant leap in computational capabilities, following the recognition of Discovery 5 as the 16th fastest supercomputer globally in 2022 [7]
Should You Buy ExxonMobil While It's Below $115?
The Motley Fool· 2025-03-16 15:00
Company Overview - ExxonMobil is one of the largest integrated energy companies globally, with a market capitalization of $475 billion, emphasizing diversification in its business model [2][4]. - The company engages in oil and natural gas production, transportation, and processing through its extensive global facilities, which helps mitigate volatility in the energy sector [3][4]. Investment Considerations - The stock has recently pulled back about 10% from its post-pandemic peak, currently trading below $115 per share, raising questions about whether it is a good time to buy [1][10]. - Exxon's business model and strong balance sheet, characterized by a low debt-to-equity ratio, position it well to withstand energy price fluctuations and support its dividend [5][6]. Dividend Performance - Exxon has a notable 42-year streak of annual dividend increases, indicating its resilience and ability to provide returns to shareholders even during market volatility [6][8]. - The current dividend yield is 3.6%, which is lower than historical levels, suggesting that a yield closer to 5% would present a more attractive entry point for investors [9][10]. Market Timing - Investors not currently seeking energy exposure may benefit from waiting for a more significant industry downturn to secure a better price and yield [7][9]. - While Exxon is a solid company for energy exposure, historical data shows that the stock has been cheaper with higher yields in the past, indicating potential advantages in waiting for a more favorable market condition [10].
What If Trump's Energy Plan Fails? These 3 Energy Giants (and Their Dividends) Will Be Just Fine.
The Motley Fool· 2025-03-16 13:10
Donald Trump is a polarizing political figure, and he has come into office with a long list of plans. While not every president is as polarizing as Trump, every single president comes into office with plans. That's the key investment issue to think about, whether or not the current energy plan -- Trump's energy plan -- succeeds in its goals or fails. If you're looking to own an energy stock for more than the next four years, you'll probably want to consider these three energy giants.1. ExxonMobil's dividend ...
ExxonMobil Bets on Natural Gas in Guyana's Eighth Project
ZACKS· 2025-03-14 15:05
Group 1: ExxonMobil's Longtail Project - ExxonMobil is doubling down on natural gas development with its eighth oil project offshore Guyana, the Longtail project, which is set to produce up to 1.5 billion cubic feet per day of natural gas and 290,000 barrels per day of condensate [1] - The Longtail development includes the Longtail, Tripletail, and Turbot discoveries, representing ExxonMobil's continued expansion in Guyana's offshore fields, with current production exceeding 650,000 barrels per day from six operational projects [2] - The Longtail project is expected to supply gas for onshore industries, including fertilizer and aluminum production, as well as power generation for data centers [4] Group 2: Guyana's Energy Landscape - Guyana has estimated reserves of over 11 billion barrels of oil equivalent in the Stabroek Block and has become a key crude oil exporter since ExxonMobil's initial discovery in 2015 [3] - ExxonMobil is pivoting towards gas development, evaluating new opportunities such as gas-to-power projects and potential liquefied natural gas exports [3] - A final investment decision on the Longtail development is planned for 2026, with first production targeted by 2029, which could reshape Guyana's energy landscape and position the country as a major natural gas player [5] Group 3: Investment Opportunities - Investors interested in the energy sector may consider stocks like Antero Resources Corporation and EOG Resources, Inc. [5] - Antero Resources is one of the fastest-growing natural gas producers in the U.S., with a strong production outlook due to its strategic acreage in the Appalachian Basin [6] - EOG Resources has an attractive growth profile and maintains a strong balance sheet, with numerous untapped high-quality drilling sites in premier oil shale plays [7]
All It Takes Is $3,500 Invested in Each of These 3 High-Yield Dividend Stocks to Help Generate Over $500 in Passive Income per Year
The Motley Fool· 2025-03-11 10:30
Core Viewpoint - The article highlights three high-yield dividend stocks: Chevron, ExxonMobil, and Whirlpool, emphasizing their potential to provide passive income through dividends, especially during market downturns [1][2]. Group 1: Chevron - Chevron offers a forward dividend yield of 4.5% and has increased its dividend for 38 consecutive years, indicating strong management commitment to shareholders [3][4]. - The company maintains a conservative net debt-to-EBITDA ratio of 0.4, showcasing its financial stability despite oil price volatility [5]. - Future free cash flow growth is anticipated due to asset development and acquisitions, positioning Chevron well for continued dividend increases [6]. Group 2: ExxonMobil - ExxonMobil has a dividend yield of 3.8% and has raised its dividend for 42 consecutive years, making it a solid choice for dividend investors [12]. - The company plans to grow annual cash flows by $30 billion based on a $65 per barrel Brent crude oil price, indicating a focus on sustainable financial planning [11]. - Despite lower oil prices affecting margins, ExxonMobil's diversified operations and long-term investment strategy support its dividend sustainability [10][12]. Group 3: Whirlpool - Whirlpool presents a speculative investment opportunity with a high dividend yield of 7.7%, but faces challenges due to a weak housing market and consumer spending [14][15]. - The company has $1.85 billion of its $6.6 billion net debt maturing this year, raising concerns about the sustainability of its dividend [16]. - Management expects to generate $500 million to $600 million in free cash flow in 2025 and plans to sell a stake in Whirlpool India to improve its financial position [17].
XOM Trades at Premium Valuation: Should You Buy the Integrated Stock?
ZACKS· 2025-03-10 14:06
Valuation and Market Position - Exxon Mobil Corporation (XOM) is currently trading at a premium valuation of 6.88x trailing 12-month EV/EBITDA compared to the industry average of 4.20x, indicating strong market confidence in its prospects [1] - The elevated price necessitates a thorough assessment of the company's fundamentals, growth potential, and prevailing market conditions to determine if the valuation is justified [3] Growth Drivers - ExxonMobil has significantly transformed its upstream portfolio through the acquisition of Pioneer Natural Resources, gaining 1.4 million net acres and an estimated 16 billion barrels of oil equivalent resource [4] - The company expects production from the Permian Basin to increase to 2.3 million MMBoE/D by 2030, driven by improved drilling and production techniques [5] - Guyana operations have achieved a production rate of 650,000 barrels per day within 10 years of the initial oil discovery, further enhancing ExxonMobil's growth prospects [5] Financial Strength and Strategy - ExxonMobil's integrated business model provides protection against oil price declines, supported by its extensive refining and chemical operations [7] - The company has a lower debt-to-capitalization ratio of 13.36% compared to the industry average of 27.79%, allowing it to enhance its financial position and repay pandemic-related debt [8] - ExxonMobil plans to generate $165 billion in surplus cash flow from 2025 to 2030, which will support increased shareholder distributions and enhance its track record of delivering consistent shareholder value [10] Commitment to Sustainability - ExxonMobil plans to invest $30 billion in low-carbon solutions from 2025 to 2030, focusing on carbon capture and storage networks and hydrogen facilities [11] - The strategy aligns with global energy transition goals while leveraging ExxonMobil's expertise to deliver strong returns, with 65% of investments targeting third-party emission reductions [11] LNG Market Opportunity - The recent approval for an export extension at the Golden Pass LNG project positions ExxonMobil to capitalize on growing global demand for LNG, particularly in Asia and Europe [12] - The project, developed in partnership with QatarEnergy, allows for the export of up to 2.57 billion cubic feet per day, enhancing long-term revenue potential [12] Market Challenges - Despite positive developments, uncertainties remain regarding ExxonMobil's premium valuations, as much of its upstream production is still dependent on fossil fuels, making it vulnerable to regulatory challenges [13] - The company faces scrutiny from environmental groups and stakeholders advocating for cleaner energy solutions, which could impact its operations [14] - Over the past year, ExxonMobil's stock gained only 3.4%, underperforming the industry's composite stocks, which improved by 4.5% [15]
ExxonMobil Signature Polymers to Showcase Innovative Solutions that can offer recycling benefits at PLASTIMAGEN MEXICO 2025
GlobeNewswire News Room· 2025-03-10 14:00
SPRING, Texas, March 10, 2025 (GLOBE NEWSWIRE) -- ExxonMobil today announced its participation in PLASTIMAGEN MEXICO 2025 (booth #1529), taking place March 11-14 in Mexico City. Making its Latin American trade show debut, ExxonMobil's Signature Polymers brand will showcase innovative solutions and technologies that support a more circular economy for plastics and help address evolving industry needs across multiple sectors, including consumer and industrial packaging, hygiene and medical, construction, agri ...