Exxon Mobil Expands Production Footprint with Trump Administration Support
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 18h ago
0mins
Source: Benzinga
- Production Expansion: Exxon Mobil is expanding its production footprint in several OPEC-linked nations, with support from the Trump administration facilitating negotiations in Iraq, Libya, and Algeria, highlighting the positive impact of U.S. foreign policy.
- Competitive Advantage: Following U.S. sanctions on Venezuela, Exxon and Chevron are seizing opportunities in the country, potentially gaining an edge over European rivals like Shell and TotalEnergies, thereby strengthening their market position.
- Strong Stock Performance: Exxon Mobil's stock is currently trading 10.8% above its 20-day simple moving average and 24.4% above its 100-day moving average, with a 37.26% increase over the past 12 months, indicating a robust upward trend.
- Technical Indicator Analysis: Although the relative strength index (RSI) is at 75.02, suggesting an overbought condition and potential pullback risks, the MACD remains above its signal line, indicating sustained bullish momentum, prompting investors to be cautious of possible market corrections.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 146.080
Low
114.00
Averages
132.17
High
158.00
Current: 146.080
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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- Competitive Advantage: Following U.S. sanctions on Venezuela, Exxon and Chevron are seizing opportunities in the country, potentially gaining an edge over European rivals like Shell and TotalEnergies, thereby strengthening their market position.
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- Supply Risk Escalation: The U.S. capture of former Venezuelan President Maduro on narcoterrorism charges raised market concerns about potential supply disruptions, while escalating tensions between the U.S. and Iran could further impact oil prices, contributing to the rise in ExxonMobil's stock.
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- Market Rebound: Following a downturn in 2022, the Dow rebounded nearly 13% in 2023, with this breakthrough occurring against the backdrop of the index climbing over 1,100 points, demonstrating a robust market recovery.
- Changing Economic Landscape: Despite concerns over Trump's tariff policies and the impact of AI spending, the market has shown resilience, indicating investor optimism regarding future economic growth.
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- Major Investment Projects: The Socrates project in Ohio is set to come online in the second half of this year, generating 440 megawatts of power, with Meta Platforms signing a purchase agreement, highlighting its strategic importance in meeting data center power demands.
- Future Growth Targets: The company aims to grow its EBITDA at a rate of 5% to 7% annually, with analysts watching to see if it will raise this target at the upcoming analyst day, further driving long-term growth.
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- Production Expansion: Exxon Mobil is expanding its production footprint in several OPEC-linked nations, with support from the Trump administration facilitating negotiations in Iraq, Libya, and Algeria, highlighting the positive impact of U.S. foreign policy.
- Competitive Advantage: Following U.S. sanctions on Venezuela, Exxon and Chevron are seizing opportunities in the country, potentially gaining an edge over European rivals like Shell and TotalEnergies, thereby strengthening their market position.
- Strong Stock Performance: Exxon Mobil's stock is currently trading 10.8% above its 20-day simple moving average and 24.4% above its 100-day moving average, with a 37.26% increase over the past 12 months, indicating a robust upward trend.
- Technical Indicator Analysis: Although the relative strength index (RSI) is at 75.02, suggesting an overbought condition and potential pullback risks, the MACD remains above its signal line, indicating sustained bullish momentum, prompting investors to be cautious of possible market corrections.
See More
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- Focus on Wealth Preservation: Post-layoff, wealth creation takes a backseat to wealth preservation strategies, as financial planners recommend maintaining a substantial emergency fund to cover essential expenses like rent and insurance, thereby mitigating risks during market volatility.
- Income-Focused ETFs Gain Traction: With salary income halted, investors are turning to ETFs designed for cash flow, such as iShares Core U.S. Aggregate Bond ETF and Vanguard Total Bond Market ETF, which can modestly supplement cash reserves during unemployment, although they are not substitutes for regular paychecks.
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