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 Signs Deal With CF Industries to Make Blue Ammonia
Read MoreHide Full Article
Exxon Mobil Corporation (XOM - Free Report) entered an agreement with fertilizer maker CF Industries Holdings, Inc. (CF - Free Report) to produce blue ammonia, which is expected to help decarbonize hard-to-abate industrial facilities.
Illinois-based CF Industries is a leading producer of nitrogen fertilizer in North America. One of the company’s principal nitrogenous fertilizer products is ammonia. With the latest agreement, CF wants to produce ammonia from low-carbon blue hydrogen, which is hydrogen produced from natural gas through carbon capture and storage (CCS).
CF Industries is investing $200 million to manufacture a carbon dioxide (CO2) dehydration and compression unit at its Louisiana complex to process emissions from its ammonia production. CF intends to market up to 1.7 million tons of blue ammonia per year through CCS operations.
Per the terms of the deal, ExxonMobil will transport CO2 from CF Industries’ Donaldsonville ammonia production facility to a geologic storage site in Louisiana. XOM will transport and store underground 2 million metric tons of CO2 per year. The project will likely be up and running in early 2025.
Oil and gas companies are getting actively involved in CCS projects, as it offers a transition pathway for the rapid and effective reduction of CO2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Thus, the use of CCS in reducing industrial emissions offers an excellent opportunity.
ExxonMobil will develop a 125,000-acre storage site in Vermilion Parish for the CCS project. The companies could prevent significant volumes of CO2 from releasing into the atmosphere per year. This will be equivalent to replacing 700,000 gasoline-powered cars to electric vehicles.
The agreement is part of ExxonMobil’s plan to invest $15 billion in low-carbon projects by 2027. About $9 billion will be spent for emission reduction at the company’s sites, while the remainder will be used for carbon capture, hydrogen and biofuels.
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 12.1% against the industry’s 3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently flaunts a Zack Rank #1 (Strong Buy).
Patterson-UTI Energy, Inc. (PTEN - Free Report) is one of the largest North American land drilling contractors, having a big, high-quality fleet of drilling rigs. PTEN’s debt-to-capitalization as of the end of the second quarter was 35.8%, quite conservative versus 38.8% for the sub-industry to which it belongs.
Patterson-UTI has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company has a Zacks Style Score of A for Growth and Momentum. PTEN is expected to see earnings growth of 120.2% for 2022.
MPLX LP (MPLX - Free Report) is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX LP is a master limited partnership engaged in providing a wide range of midstream energy services, including fuel distribution solutions.
MPLX beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 3%. The company has a Zacks Style Score of B for Value and Growth. MPLX is expected to see earnings growth of 14.7% for 2022.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ExxonMobil Signs Deal With CF Industries to Make Blue Ammonia
Exxon Mobil Corporation (XOM - Free Report) entered an agreement with fertilizer maker CF Industries Holdings, Inc. (CF - Free Report) to produce blue ammonia, which is expected to help decarbonize hard-to-abate industrial facilities.
Illinois-based CF Industries is a leading producer of nitrogen fertilizer in North America. One of the company’s principal nitrogenous fertilizer products is ammonia. With the latest agreement, CF wants to produce ammonia from low-carbon blue hydrogen, which is hydrogen produced from natural gas through carbon capture and storage (CCS).
CF Industries is investing $200 million to manufacture a carbon dioxide (CO2) dehydration and compression unit at its Louisiana complex to process emissions from its ammonia production. CF intends to market up to 1.7 million tons of blue ammonia per year through CCS operations.
Per the terms of the deal, ExxonMobil will transport CO2 from CF Industries’ Donaldsonville ammonia production facility to a geologic storage site in Louisiana. XOM will transport and store underground 2 million metric tons of CO2 per year. The project will likely be up and running in early 2025.
Oil and gas companies are getting actively involved in CCS projects, as it offers a transition pathway for the rapid and effective reduction of CO2 emissions beyond what can be achieved by alternative methods like electrification and renewable fuels. Thus, the use of CCS in reducing industrial emissions offers an excellent opportunity.
ExxonMobil will develop a 125,000-acre storage site in Vermilion Parish for the CCS project. The companies could prevent significant volumes of CO2 from releasing into the atmosphere per year. This will be equivalent to replacing 700,000 gasoline-powered cars to electric vehicles.
The agreement is part of ExxonMobil’s plan to invest $15 billion in low-carbon projects by 2027. About $9 billion will be spent for emission reduction at the company’s sites, while the remainder will be used for carbon capture, hydrogen and biofuels.
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 12.1% against the industry’s 3% decline.
Image Source: Zacks Investment Research
Zacks Rank & Other Key Picks
ExxonMobil currently flaunts a Zack Rank #1 (Strong Buy).
Investors interested in the energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Patterson-UTI Energy, Inc. (PTEN - Free Report) is one of the largest North American land drilling contractors, having a big, high-quality fleet of drilling rigs. PTEN’s debt-to-capitalization as of the end of the second quarter was 35.8%, quite conservative versus 38.8% for the sub-industry to which it belongs.
Patterson-UTI has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days. The company has a Zacks Style Score of A for Growth and Momentum. PTEN is expected to see earnings growth of 120.2% for 2022.
MPLX LP (MPLX - Free Report) is a master limited partnership that provides a wide range of midstream energy services, including fuel distribution solutions. MPLX LP is a master limited partnership engaged in providing a wide range of midstream energy services, including fuel distribution solutions.
MPLX beat the Zacks Consensus Estimate for earnings in the prior four quarters, delivering an earnings surprise of 3%. The company has a Zacks Style Score of B for Value and Growth. MPLX is expected to see earnings growth of 14.7% for 2022.