We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ExxonMobil and Shell Put Dutch Gas Joint Venture on Sale
Read MoreHide Full Article
Exxon Mobil Corporation (XOM - Free Report) and Shell plc (SHEL - Free Report) offered their Netherlands-based gas-producing joint venture, NAM, on sale amid soaring natural gas prices, per a Reuters report.
The divestment is part of the companies’ strategies to offload assets that are no longer significant to their operations.
In 1963, NAM started producing natural gas from the giant Groningen field, which has been a major gas source for the Netherlands and Europe for decades. NAM supplies 75% of the natural gas required by households and businesses in the Netherlands.
The divestment could fetch the integrated oil majors up to $1.5 billion. Per ExxonMobil and Shell, the gas supply crisis in Europe and the soaring natural gas prices could make the assets attractive to potential buyers.
The assets on sale involve the Exxon-Shell 50/50 joint venture’s offshore gas operations, including several fields and 20 offshore platforms. Beside this, the assets include three processing facilities and a network of pipelines.
In 2021, the assets on sale produced 2.4 million cubic meters per day of natural gas. With additional investment, the assets have the potential to raise the production capacity to 2.8 million cubic meters per day.
Since 2014, production from the giant Groningen field has been in a continuous decline. It is likely to fall further in the coming years. In 2018, the Dutch government decided that production at Groningen would be discontinued by 2030 after years of discussions and measures to curb production at the field.
The Groningen field is expected to shut down in 2023 or 2024, but its life could be extended. With the possible closure of the field, the companies could not predict a future in the Netherlands. After the government’s decision, the companies decided to divest their oil and gas fields in the Netherlands.
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 13.7% compared with the industry’s 1.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
Cheniere Energy Inc. (LNG - Free Report) is engaged in businesses related to liquefied natural gas. Ushering in good news for shareholders, LNG recently declared its inaugural quarterly dividend of 33 cents per share. The company’s decision to initiate a payout reflects the dramatic improvement in its fundamentals.
Cheniere Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum. LNG is expected to see earnings growth of 297.8% in 2022.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s debt-to-capitalization stands at just 16% compared with many of its peers that are hugely burdened with debts, accounting for around 50% of their total capital structure.
Liberty Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. LBRT is expected to see earnings growth of 266.7% for 2022.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ExxonMobil and Shell Put Dutch Gas Joint Venture on Sale
Exxon Mobil Corporation (XOM - Free Report) and Shell plc (SHEL - Free Report) offered their Netherlands-based gas-producing joint venture, NAM, on sale amid soaring natural gas prices, per a Reuters report.
The divestment is part of the companies’ strategies to offload assets that are no longer significant to their operations.
In 1963, NAM started producing natural gas from the giant Groningen field, which has been a major gas source for the Netherlands and Europe for decades. NAM supplies 75% of the natural gas required by households and businesses in the Netherlands.
The divestment could fetch the integrated oil majors up to $1.5 billion. Per ExxonMobil and Shell, the gas supply crisis in Europe and the soaring natural gas prices could make the assets attractive to potential buyers.
The assets on sale involve the Exxon-Shell 50/50 joint venture’s offshore gas operations, including several fields and 20 offshore platforms. Beside this, the assets include three processing facilities and a network of pipelines.
In 2021, the assets on sale produced 2.4 million cubic meters per day of natural gas. With additional investment, the assets have the potential to raise the production capacity to 2.8 million cubic meters per day.
Since 2014, production from the giant Groningen field has been in a continuous decline. It is likely to fall further in the coming years. In 2018, the Dutch government decided that production at Groningen would be discontinued by 2030 after years of discussions and measures to curb production at the field.
The Groningen field is expected to shut down in 2023 or 2024, but its life could be extended. With the possible closure of the field, the companies could not predict a future in the Netherlands. After the government’s decision, the companies decided to divest their oil and gas fields in the Netherlands.
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 13.7% compared with the industry’s 1.1% growth.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Cheniere Energy Inc. (LNG - Free Report) is engaged in businesses related to liquefied natural gas. Ushering in good news for shareholders, LNG recently declared its inaugural quarterly dividend of 33 cents per share. The company’s decision to initiate a payout reflects the dramatic improvement in its fundamentals.
Cheniere Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth and Momentum. LNG is expected to see earnings growth of 297.8% in 2022.
Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America. LBRT’s debt-to-capitalization stands at just 16% compared with many of its peers that are hugely burdened with debts, accounting for around 50% of their total capital structure.
Liberty Energy has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company currently has a Zacks Style Score of A for Growth, and B for Value and Momentum. LBRT is expected to see earnings growth of 266.7% for 2022.