Exxon Mobil Launches Carbon Capture Project in Louisiana
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 27 2026
0mins
Source: seekingalpha
- Project Launch: Exxon Mobil (XOM) has commenced a carbon capture and storage project with CF Industries (CF) in Louisiana, aiming to transport and store up to 2 million metric tons of CO2 annually, marking a significant step in the company's low-carbon technology initiatives.
- Customer Expansion: Exxon has signed agreements with AtmosClear and Lake Charles Methanol II to transport and store a combined 2 million metric tons of CO2 from their projects, increasing its CCS customer base to six and bringing the total contracted CO2 volume to approximately 9 million tons per year.
- Future Developments: The company plans to advance multiple CCS projects across Texas and Louisiana, targeting a final investment decision on its first low-carbon data center by the end of 2026, demonstrating its commitment to sustainable development.
- Collaborative Prospects: Exxon is also set to begin CCS operations with Linde (LIN) and Nucor (NUE) later this year, further enhancing its market position in carbon management.
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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: 155.290
Low
114.00
Averages
132.17
High
158.00
Current: 155.290
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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- Legal Background: The advisory firms have sued the Attorney General over a Texas law requiring disclosure of non-financial factors, arguing it violates their First Amendment rights, and they won preliminary injunctions last summer, highlighting the legal complexities involved.
- Advertising Strategy: Exxon plans to run full-page ads in major newspapers like the Wall Street Journal to emphasize that the proxy firms did not disclose their litigation with the Texas Attorney General, aiming to garner investor support for its relocation plans.
- Shareholder Voting: Shareholders of ExxonMobil will vote on the relocation plans at the company's annual meeting on May 27, with the strategic decision directly impacting its operations in Texas and investor confidence.
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- Legal Background: The advisory firms have sued the Attorney General over a Texas law requiring disclosure of non-financial factors, arguing it violates their First Amendment rights, and they won preliminary injunctions last summer, highlighting the legal complexities involved.
- Advertising Strategy: Exxon plans to run full-page ads in major newspapers like the Wall Street Journal to emphasize that the proxy firms did not disclose their litigation with the Texas Attorney General, aiming to garner investor support for its relocation plans.
- Shareholder Voting: Shareholders of ExxonMobil will vote on the relocation plans at the company's annual meeting on May 27, with the strategic decision directly impacting its operations in Texas and investor confidence.
See More
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- Earnings Beat: Occidental Petroleum reported Q1 earnings of $1.06 per share, significantly surpassing Wall Street's expectation of $0.59, although management acknowledged that better performance was possible, indicating potential in a high oil price environment.
- Oil Price Impact: With oil prices surging 85% in 2026, most of the increase occurred after March, resulting in Occidental only benefiting briefly from high prices in Q1, leading analysts to raise Q2 expectations to $1.58 per share.
- Hedging Challenges: Occidental's hedging strategy created headwinds in Q1, as it faced similar losses to Exxon and Chevron despite being less exposed to the Middle East, impacting short-term profitability.
- Strategic Restructuring: By selling its downstream business at the beginning of 2026, Occidental avoided the weak performance seen in refining operations, demonstrating effective strategic adjustments to optimize its business structure in a rising oil price environment.
See More
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- Oil Price Surge Context: The geopolitical conflict in the Middle East has driven oil prices up by 85% in 2026; however, major oil companies like Occidental Petroleum (OXY) have not fully benefited, reflecting the complex impacts of regional exposure, timing, and hedging activities.
- Occidental's Earnings Beat: Occidental Petroleum reported earnings of $1.06 per share in Q1, significantly exceeding Wall Street's expectation of $0.59, although management acknowledged that the company could have performed better, indicating market expectations for future performance.
- Hedging Activity Impact: Occidental's hedging strategy negatively impacted its Q1 results, despite lower exposure to the Middle East, leading to short-term earnings pressure; however, improvements are anticipated in Q2 as hedged shipments are delivered.
- Competitor Performance Variance: ExxonMobil (XOM) and Chevron (CVX) also faced hedging impacts in Q1, achieving earnings of $1.16 and $1.41 per share respectively, both surpassing expectations, but incurring hedging losses of $700 million and $2.9 billion, highlighting the differing strategies companies employ to navigate market volatility.
See More
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- Market Supply Warning: ExxonMobil CEO Darren Woods warns that the market is not fully recognizing the supply disruptions from the geopolitical conflict in the Middle East, suggesting that even after the conflict ends, it may take a long time for energy markets to normalize, potentially affecting investor confidence in energy stocks.
- Devon Energy Cash Flow Outlook: Devon Energy indicates that if West Texas Intermediate (WTI) crude reaches $90 per barrel, its free cash flow yield is projected at 15%, and if it rises to $100, the yield increases to 18%, highlighting the significant impact of high oil prices on its financial performance.
- Diamondback Energy Stability: Although Diamondback Energy did not provide detailed figures, it noted that at $90 WTI, its free cash flow yield could also reach 15%, demonstrating its profit potential during rising oil prices, and both companies being U.S.-based mitigates production risks from Middle Eastern conflicts.
- Long-Term Demand Outlook: The Middle East conflict may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term catalyst for both Devon and Diamondback that extends beyond the current industry upheaval.
See More
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- Supply Disruption Warning: ExxonMobil CEO Darren Woods warns that the current supply disruptions due to geopolitical conflicts in the Middle East may last longer than expected, indicating that the market has not fully recognized this issue, which could affect investor confidence and market stability.
- Oil Price Impact Analysis: Devon Energy states that if West Texas Intermediate (WTI) crude reaches $90, its free cash flow yield is projected at 15%, and if oil prices rise to $100, the yield increases to 18%, highlighting the significant impact of rising oil prices on its financial performance.
- Geopolitical Risk Avoidance: Both Devon and Diamondback Energy are U.S.-based companies, meaning their production is unaffected by geopolitical conflicts, allowing investors to benefit from rising oil and gas prices without the uncertainties of geopolitical risks, enhancing their investment appeal.
- Long-Term Demand Outlook: The conflict in the Middle East may prompt countries to reassess energy security, potentially leading to a permanent increase in demand in stable regions like the U.S., providing a long-term growth catalyst for both Devon and Diamondback, despite the likelihood of future oil price declines.
See More
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- Market Supply Warning: ExxonMobil CEO Darren Woods warns that the market is not fully recognizing the supply disruptions caused by geopolitical conflicts in the Middle East, suggesting that energy markets may not return to normal until 2027, which could influence investor decisions regarding energy stocks.
- Devon Energy's Cash Flow Potential: Devon Energy indicates that with West Texas Intermediate (WTI) crude at $90 per barrel, its free cash flow yield is projected at 15%, and if oil prices rise to $100, the yield could increase to 18%, highlighting the significant positive impact of rising oil prices on its financial performance.
- Diamondback Energy's Stability: While Diamondback Energy did not provide detailed figures, it noted that a $90 WTI price should yield a 15% free cash flow, indicating that it will similarly benefit from rising prices, enhancing its attractiveness to investors.
- Geopolitical Investment Advantage: Both Devon and Diamondback are based in the U.S., meaning geopolitical conflicts do not affect their production, allowing investors to benefit from rising oil and gas prices without uncertainty, and potentially gaining long-term growth momentum from increased energy security demand.
See More
