Winter Storm Disrupts 10% of U.S. Natural Gas Production Along Gulf Coast
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: seekingalpha
- Natural Gas Disruption: An estimated 10% of U.S. natural gas production is offline due to freezing conditions, leading to supply tightness that could elevate prices and impact overall energy market stability.
- Chemical Plant Shutdowns: Goodyear (GT) shut down its Pasadena chemical plant ahead of the cold snap, while Exxon Mobil (XOM) took some units offline at its Baytown refinery, highlighting the direct impact of extreme weather on industrial operations.
- Surge in Demand: Heating fuel demand has surged by approximately 18 billion cubic feet during the cold snap, and despite the drop in natural gas output, the sharp increase in demand may lead to market price fluctuations, adding uncertainty to the energy supply chain.
- Transportation Issues: Energy Transfer (ET) reported receiving off-specification gas at its Permian Basin plant, complicating processing and transport as temperatures dropped, further exacerbating supply chain pressures.
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: 133.640
Low
114.00
Averages
132.17
High
158.00
Current: 133.640
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.
