ExxonMobil Reiterates Major Reforms Needed for Venezuela Oil Re-entry
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2h ago
0mins
Source: Yahoo Finance
- Challenging Investment Climate: ExxonMobil CEO Darren Woods stated that Venezuela is deemed 'uninvestable' due to weak legal protections and restrictive hydrocarbon laws, significantly dampening international investor interest in the country.
- Lessons from History: The company's history in Venezuela includes two asset expropriations, the most recent in the mid-2000s, with Woods emphasizing that any future re-entry plans must ensure stable legal and commercial frameworks to avoid repeating past losses.
- Technical Assessment Intent: Woods indicated that ExxonMobil would be willing to deploy a technical assessment team to evaluate the condition of oil fields and infrastructure if invited by the Venezuelan government and provided with adequate security, preparing for potential future investments.
- Significant Market Potential: Despite the challenges, Woods highlighted that Venezuela possesses some of the world's largest hydrocarbon resources, maintaining international oil companies' interest in its future development, framing the recovery of the country's oil production as both a commercial opportunity and a strategic issue.
Analyst Views on XOM
Wall Street analysts forecast XOM stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 131.08 USD with a low forecast of 115.00 USD and a high forecast of 156.00 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.
15 Analyst Rating
11 Buy
4 Hold
0 Sell
Moderate Buy
Current: 122.910
Low
115.00
Averages
131.08
High
156.00
Current: 122.910
Low
115.00
Averages
131.08
High
156.00
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.
