ExxonMobil Eyes Woodside Energy for Next Major Acquisition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Source: Fool
- Acquisition Potential: ExxonMobil, after completing its $60 billion acquisition of Pioneer Natural Resources, is reportedly considering Woodside Energy, which produced a record 198.8 million barrels of oil equivalent and generated $12.98 billion in revenue in 2025, highlighting its strong growth potential in the liquefied natural gas (LNG) market.
- Project Progress: Woodside's Scarborough project is over 96% complete and is on track to deliver its first LNG cargo in Q4 2026, positioning it as a significant new source of LNG supply in Australia, thereby enhancing its production capacity and market competitiveness.
- Financial Outlook: Woodside expects its LNG production to reach approximately 40 million tons annually by 2032, with annual operating cash flow projected to increase from about $5 billion today to roughly $9 billion, showcasing its robust future performance that attracts ExxonMobil's interest.
- Acquisition Challenges: Despite Woodside's market value being around $40 billion, a potential acquisition would face political scrutiny and execution risks, particularly as its Louisiana LNG project encounters commercialization challenges, necessitating ExxonMobil to carefully assess the feasibility of such a deal.
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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: 141.860
Low
114.00
Averages
132.17
High
158.00
Current: 141.860
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.
Exxon Mobil Submits New Exploration Plan for Guyana's Stabroek Block
- New Exploration Plan: Exxon Mobil (XOM) has submitted a new exploration and appraisal program to the Guyana Environmental Protection Agency, which could involve drilling up to 35 new wells, with operations set to commence in 2028 and run through 2033, indicating the company's long-term commitment to resource development in the region.
- Environmental Impact Assessment: Although the proposed project will not significantly impact the environment and thus does not require an environmental impact assessment, a cumulative impact assessment must be filed, reflecting the company's cautious approach to environmental compliance and helping to maintain its public image.
- Economic Growth Driver: Exxon’s operations in the Stabroek block are driving rapid economic growth in Guyana, with current crude oil production exceeding 900,000 barrels per day and on track to expand to 1.7 million barrels per day by 2030, further solidifying its position in the global energy market.
- Ownership Structure: Exxon Mobil holds a 45% stake in the block, operating alongside Chevron (CVX) with 30% and China's CNOOC with 25%, highlighting its significant role in international energy collaboration.
See More
ExxonMobil Eyes Woodside Energy for Next Major Acquisition
- Acquisition Potential: ExxonMobil, after completing its $60 billion acquisition of Pioneer Natural Resources, is reportedly considering Woodside Energy, which produced a record 198.8 million barrels of oil equivalent and generated $12.98 billion in revenue in 2025, highlighting its strong growth potential in the liquefied natural gas (LNG) market.
- Project Progress: Woodside's Scarborough project is over 96% complete and is on track to deliver its first LNG cargo in Q4 2026, positioning it as a significant new source of LNG supply in Australia, thereby enhancing its production capacity and market competitiveness.
- Financial Outlook: Woodside expects its LNG production to reach approximately 40 million tons annually by 2032, with annual operating cash flow projected to increase from about $5 billion today to roughly $9 billion, showcasing its robust future performance that attracts ExxonMobil's interest.
- Acquisition Challenges: Despite Woodside's market value being around $40 billion, a potential acquisition would face political scrutiny and execution risks, particularly as its Louisiana LNG project encounters commercialization challenges, necessitating ExxonMobil to carefully assess the feasibility of such a deal.
See More
ExxonMobil Pursues Expansion in LNG Business with Potential Woodside Acquisition
- Clear Acquisition Target: Following its $60 billion acquisition of Pioneer Natural Resources, ExxonMobil is reportedly eyeing Woodside Energy, which achieved a record production of 198.8 million barrels of oil equivalent and generated $12.98 billion in revenue in 2025, highlighting its strong growth potential in the LNG market.
- Project Progressing Well: Woodside's Scarborough project is over 96% complete and is on track to deliver its first LNG cargo in Q4 2026, positioning it as a significant new source of LNG supply in Australia and enhancing its competitive edge in the market.
- Optimistic Financial Outlook: Woodside expects its LNG production to reach approximately 40 million tons annually by 2032, with annual operating cash flow projected to increase from about $5 billion today to roughly $9 billion, indicating sustainable growth amid rising global energy demand.
- Acquisition Risk Considerations: Despite Woodside's market value of around $40 billion, a potential acquisition would face political scrutiny and execution risks, particularly given the commercialization challenges facing its Louisiana LNG project, prompting ExxonMobil to carefully evaluate the feasibility of such a deal.
See More
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- Ongoing Energy Market Crisis: Despite the imminent end of the conflict, the energy facilities in the Middle East have suffered extensive damage, leading to a slow recovery in Gulf oil and gas production, with current oil prices remaining above pre-war levels, suggesting that this premium may persist in the near future.
- E&P Companies Outlook: Amidst oil price volatility, exploration and production companies like ExxonMobil, ConocoPhillips, and EOG Resources are maintaining profitability through their advantaged assets in Guyana and the Permian Basin, positioning themselves favorably for future market conditions.
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See More
Exxon Mobil Submits New Exploration Plan for Guyana's Stabroek Block
- New Exploration Plan: Exxon Mobil (XOM) has submitted a new exploration and appraisal program to the Guyana Environmental Protection Agency, which could involve drilling up to 35 new wells, with operations set to commence in 2028 and run through 2033, indicating the company's long-term commitment to resource development in the region.
- Environmental Impact Assessment: Although the proposed project will not significantly impact the environment and thus does not require an environmental impact assessment, a cumulative impact assessment must be filed, reflecting the company's cautious approach to environmental compliance and helping to maintain its public image.
- Economic Growth Driver: Exxon’s operations in the Stabroek block are driving rapid economic growth in Guyana, with current crude oil production exceeding 900,000 barrels per day and on track to expand to 1.7 million barrels per day by 2030, further solidifying its position in the global energy market.
- Ownership Structure: Exxon Mobil holds a 45% stake in the block, operating alongside Chevron (CVX) with 30% and China's CNOOC with 25%, highlighting its significant role in international energy collaboration.
See More
ExxonMobil Eyes Woodside Energy for Next Major Acquisition
- Acquisition Potential: ExxonMobil, after completing its $60 billion acquisition of Pioneer Natural Resources, is reportedly considering Woodside Energy, which produced a record 198.8 million barrels of oil equivalent and generated $12.98 billion in revenue in 2025, highlighting its strong growth potential in the liquefied natural gas (LNG) market.
- Project Progress: Woodside's Scarborough project is over 96% complete and is on track to deliver its first LNG cargo in Q4 2026, positioning it as a significant new source of LNG supply in Australia, thereby enhancing its production capacity and market competitiveness.
- Financial Outlook: Woodside expects its LNG production to reach approximately 40 million tons annually by 2032, with annual operating cash flow projected to increase from about $5 billion today to roughly $9 billion, showcasing its robust future performance that attracts ExxonMobil's interest.
- Acquisition Challenges: Despite Woodside's market value being around $40 billion, a potential acquisition would face political scrutiny and execution risks, particularly as its Louisiana LNG project encounters commercialization challenges, necessitating ExxonMobil to carefully assess the feasibility of such a deal.
See More
ExxonMobil Pursues Expansion in LNG Business with Potential Woodside Acquisition
- Clear Acquisition Target: Following its $60 billion acquisition of Pioneer Natural Resources, ExxonMobil is reportedly eyeing Woodside Energy, which achieved a record production of 198.8 million barrels of oil equivalent and generated $12.98 billion in revenue in 2025, highlighting its strong growth potential in the LNG market.
- Project Progressing Well: Woodside's Scarborough project is over 96% complete and is on track to deliver its first LNG cargo in Q4 2026, positioning it as a significant new source of LNG supply in Australia and enhancing its competitive edge in the market.
- Optimistic Financial Outlook: Woodside expects its LNG production to reach approximately 40 million tons annually by 2032, with annual operating cash flow projected to increase from about $5 billion today to roughly $9 billion, indicating sustainable growth amid rising global energy demand.
- Acquisition Risk Considerations: Despite Woodside's market value of around $40 billion, a potential acquisition would face political scrutiny and execution risks, particularly given the commercialization challenges facing its Louisiana LNG project, prompting ExxonMobil to carefully evaluate the feasibility of such a deal.
See More
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- Oil Price Decline: Following the preliminary deal between the U.S. and Iran, which is set to be formalized with a memorandum of understanding in Switzerland on Friday, oil prices have sharply dropped from last month's highs of $100 per barrel, with WTI crude futures closing at $76.05 per barrel on June 16, indicating a trend towards conflict de-escalation and normalization of energy flows.
- Strait of Hormuz Reopening: The signing of the memorandum is expected to reopen the Strait of Hormuz, ending the U.S. naval blockade of Iranian ports, a critical chokepoint that accounts for nearly one-fifth of global oil flows, which will significantly improve the global oil and gas supply chain.
- Ongoing Energy Market Crisis: Despite the imminent end of the conflict, the energy facilities in the Middle East have suffered extensive damage, leading to a slow recovery in Gulf oil and gas production, with current oil prices remaining above pre-war levels, suggesting that this premium may persist in the near future.
- E&P Companies Outlook: Amidst oil price volatility, exploration and production companies like ExxonMobil, ConocoPhillips, and EOG Resources are maintaining profitability through their advantaged assets in Guyana and the Permian Basin, positioning themselves favorably for future market conditions.
See More
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- Oil Price Decline: Brent crude oil fell below its 200-day moving average for the first time since February, down over 27% in the past month, which puts pressure on energy stocks and may affect the earnings outlook for related companies.
See More
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- REIT Advantages: Realty Income achieved a 9% revenue growth to $5.7 billion in 2025, and its diverse tenant mix reduces risk, making it appealing for risk-averse investors with the highest dividend yield of 5.2% on this list.
- Energy Stock Resilience: ExxonMobil, a giant in the oil and gas sector, has a dividend yield of 2.9% and saw its stock surge 26% over the past year, demonstrating its stability as it rose 80% when the S&P 500 fell by 19% in 2022, showcasing its risk mitigation capabilities.
- Portfolio Diversification: Investing in these low-volatility stocks allows investors to effectively reduce exposure to market fluctuations, particularly in the context of rising valuations, thereby enhancing the resilience of their investment portfolios.
See More
