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ExxonMobil (XOM) to Invest $291M for Gippsland Gas Output Hike
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Exxon Mobil Corporation’s (XOM - Free Report) Australia-based subsidiary, Esso Australia Pty Ltd., reached a final investment decision to increase natural gas production from the Gippsland Basin Kipper field in southeastern Australia.
The move is part of ExxonMobil’s attempt to address the potential shortages in the supply of domestic natural gas. The Gippsland Basin Kipper field is operated by the Gippsland Basin Joint Venture (JV). Notably, Esso Australia operates the JV, with a 50% ownership interest.
The Gippsland Basin Kipper field is estimated to produce 30 petajoules (PJ) in 2023. ExxonMobil will invest $291 million to produce an additional 200 PJ of natural gas in the next five years. The company did not provide any details on the type of field development activities that will take place.
The Gippsland Basin has been a major supplier to Australia’s east coast domestic market. However, Australian regulators have cautioned that eastern Australia could see a natural gas shortage from 2026, as the maturing gas fields in the basin are drying up. This is driving the demand for liquefied natural gas (LNG) imports.
Additional production from the Gippsland Basin will be developed ahead of five proposed LNG import terminals, looking to serve the same market. One of the terminals has started preliminary construction activities.
ExxonMobil’s investment to increase Gippsland gas production will ensure reliable and affordable gas supply to Australia homes and businesses. The company is proceeding with funding decisions to commence production from the Turrum field offshore Victoria. There is an adequate amount of gas remaining there and ExxonMobil is working to unlock its full value.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 46.1% compared with the industry’s 36.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently sports a Zack Rank #1 (Strong Buy).
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. At present, TTE has more than 12 years of proved reserves and more than 20 years of proved and probable reserves. Of the proved reserves, 60% is gas and 40% is oil.
TotalEnergies’ earnings for 2022 are expected to increase 31.1% year over year. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. As of Dec 31, 2021, cash and equivalents were $21,342 million, which was enough to address the current borrowings of $13,645 million.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that primarily engages in the exploration, development and production of oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent (MMBOE), up from the 2020-end level of 752 MMBOE.
Devon’s earnings for 2022 are expected to surge 81.3% year over year. The company’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value. In 2021, Devon returned $1,315 million to shareholders as dividends, which included fixed and variable dividends.
Petrobras (PBR - Free Report) is one of the largest publicly-traded Latin American oil companies, which dominates Brazil’s oil and gas sector. At the end of 2021, Petrobras had cash and cash equivalents of $10,480 million. Free cash flow for 2021 was up 36.7% year over year to $31,466 million.
Petrobras’ earnings for 2022 are expected to grow 55.5% year over year. Petrobras, with a huge debt burden, has laid strong emphasis on its debt reduction in its recent five-year business management plan (2022-2026) to strengthen its credit rating. As the company focuses on regaining its financial footing by selling assets and curtailing debt load, it has lowered the gross debt below its 2022 target of $60 billion in the third quarter of 2021, well ahead of time.
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ExxonMobil (XOM) to Invest $291M for Gippsland Gas Output Hike
Exxon Mobil Corporation’s (XOM - Free Report) Australia-based subsidiary, Esso Australia Pty Ltd., reached a final investment decision to increase natural gas production from the Gippsland Basin Kipper field in southeastern Australia.
The move is part of ExxonMobil’s attempt to address the potential shortages in the supply of domestic natural gas. The Gippsland Basin Kipper field is operated by the Gippsland Basin Joint Venture (JV). Notably, Esso Australia operates the JV, with a 50% ownership interest.
The Gippsland Basin Kipper field is estimated to produce 30 petajoules (PJ) in 2023. ExxonMobil will invest $291 million to produce an additional 200 PJ of natural gas in the next five years. The company did not provide any details on the type of field development activities that will take place.
The Gippsland Basin has been a major supplier to Australia’s east coast domestic market. However, Australian regulators have cautioned that eastern Australia could see a natural gas shortage from 2026, as the maturing gas fields in the basin are drying up. This is driving the demand for liquefied natural gas (LNG) imports.
Additional production from the Gippsland Basin will be developed ahead of five proposed LNG import terminals, looking to serve the same market. One of the terminals has started preliminary construction activities.
ExxonMobil’s investment to increase Gippsland gas production will ensure reliable and affordable gas supply to Australia homes and businesses. The company is proceeding with funding decisions to commence production from the Turrum field offshore Victoria. There is an adequate amount of gas remaining there and ExxonMobil is working to unlock its full value.
Company Profile & Price Performance
Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.
Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 46.1% compared with the industry’s 36.8% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently sports a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might also look at the following companies that presently flaunt a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
TotalEnergies SE (TTE - Free Report) is among the top five publicly traded global integrated oil and gas companies based on production volumes, proved reserves and market capitalization. At present, TTE has more than 12 years of proved reserves and more than 20 years of proved and probable reserves. Of the proved reserves, 60% is gas and 40% is oil.
TotalEnergies’ earnings for 2022 are expected to increase 31.1% year over year. TTE is managing long-term debt quite efficiently and trying to keep the same at manageable levels. Its debt to capital has been declining over the past few years. As of Dec 31, 2021, cash and equivalents were $21,342 million, which was enough to address the current borrowings of $13,645 million.
Devon Energy Corporation (DVN - Free Report) is an independent energy company that primarily engages in the exploration, development and production of oil and natural gas. At 2021-end, Devon had proved developed and undeveloped reserves of nearly 1,625 million barrels of oil equivalent (MMBOE), up from the 2020-end level of 752 MMBOE.
Devon’s earnings for 2022 are expected to surge 81.3% year over year. The company’s board approved an increase in the dividend rate to $1, payable to shareholders on Mar 31, 2022. Management approved variable and fixed dividends for shareholders to further enhance the shareholder value. In 2021, Devon returned $1,315 million to shareholders as dividends, which included fixed and variable dividends.
Petrobras (PBR - Free Report) is one of the largest publicly-traded Latin American oil companies, which dominates Brazil’s oil and gas sector. At the end of 2021, Petrobras had cash and cash equivalents of $10,480 million. Free cash flow for 2021 was up 36.7% year over year to $31,466 million.
Petrobras’ earnings for 2022 are expected to grow 55.5% year over year. Petrobras, with a huge debt burden, has laid strong emphasis on its debt reduction in its recent five-year business management plan (2022-2026) to strengthen its credit rating. As the company focuses on regaining its financial footing by selling assets and curtailing debt load, it has lowered the gross debt below its 2022 target of $60 billion in the third quarter of 2021, well ahead of time.