ExxonMobil Secures Contracts with SBM Offshore for FPSO Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 6 days ago
0mins
Should l Buy XOM?
Source: seekingalpha
Exxon Mobil Corp's stock rose by 3.00% as it reached a 52-week high amid a challenging market environment where the Nasdaq-100 and S&P 500 indices fell by 1.23% and 0.93%, respectively.
The increase in stock price is attributed to ExxonMobil securing contracts with SBM Offshore for front-end engineering and design studies related to a floating production, storage, and offloading vessel (FPSO). This project is expected to enhance ExxonMobil's production capacity significantly, with the FPSO designed to handle up to 1.2 billion standard cubic feet of gas per day and produce approximately 250,000 barrels per day of condensate. The collaboration demonstrates mutual trust and commitment, which is crucial for ExxonMobil's long-term energy development strategy.
This contract not only strengthens ExxonMobil's position in the energy sector but also highlights the company's resilience and ability to navigate through market volatility. Investors are likely to view this development positively, as it aligns with the company's strategy to enhance production capabilities and maintain robust dividend payouts.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 170.990
Low
114.00
Averages
132.17
High
158.00
Current: 170.990
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Capacity Expansion: The initial production unit will add 6 million metric tons per year of LNG capacity, and once fully operational, the facility will produce 18 million metric tons annually, significantly enhancing U.S. supply capabilities in the global energy market.
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- Market Sentiment Deterioration: The waning interest in energy stocks has led to a general decline in market sentiment, which could negatively impact the stock performance of related companies, especially ahead of upcoming economic data and earnings reports.
- Uncertain Industry Outlook: As global economic uncertainties increase, fluctuations in energy demand may adversely affect the profitability of energy companies, prompting investors to reassess their investment strategies in this sector.
- Shift in Investor Focus: Against the backdrop of declining energy stocks, investors may redirect their attention to other sectors, particularly those that tend to perform relatively well during economic slowdowns, thereby influencing capital flows.
See More
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- ExxonMobil's Integration Advantage: Through vertical integration, ExxonMobil controls the entire supply chain from oil extraction to refining and distribution, ensuring that incremental revenue flows directly to the bottom line during oil price spikes, avoiding profit margin squeezes often faced by traditional exploration companies.
- Chevron's Low-Cost Position: Supported by its low-cost position in the Permian Basin and Guyana assets, Chevron maintains robust profits by leveraging specialized refineries to process its own oil, reducing reliance on expensive raw materials and curtailing volatility in commodity prices.
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See More
