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ExxonMobil (XOM) to Receive Power From Peacock Solar Facility

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One year after Exxon Mobil Corporation’s (XOM - Free Report) petrochemical complex launch in South Texas, BP plc (BP - Free Report) is constructing a solar farm to provide renewable power to the facility.

The Peacock Solar facility, operated by BP, is anticipated to generate 187 megawatts of electricity. Peacock Solar is anticipated to become operational in the second half of 2024.

This electricity will be supplied to ExxonMobil’s Gulf Coast Growth Ventures plant. ExxonMobil and chemical firm Sabic invested $10 billion to develop the facility in Portland. XOM is the operator at the site.

The solar project is designed to directly supply power to a nearby chemical complex, which produces materials and plastics. Peacock Solar is expected to contribute 40% to the annual power requirements of the complex, thereby easing the burden on the state’s electrical grid.

The project aligns with BP’s strategy to expand renewable energy initiatives aimed at reducing carbon emissions from industrial facilities. This is part of a series of similar projects, including one supporting a steel mill in Colorado. BP intends to invest in and create facilities capable of generating 50 gigawatts of renewable energy by 2030.

Securing the agreement for and commencing construction of Peacock Solar is a pivotal step in advancing the transition to lower-carbon energy. It underscores BP’s commitment to accelerating the expansion of its solar generation capacity in the United States, reinforcing its investment in the country, and furthering its transformation into an integrated energy company.

The solar facility is expected to create 300 employment opportunities and is estimated to contribute more than $25 million in taxes within its initial 25 years of operation.

ExxonMobil’s expansion into petrochemicals serves to diversify its revenue streams, while simultaneously bolstering its environmental image, making it more appealing to environmentally-conscious customers and investors.

Price Performance

Shares of ExxonMobil have outperformed the industry in the past six months. The stock has gained 10% compared with the industry’s 9.3% growth.

 

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Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

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.

Matador Resources Company (MTDR - Free Report) is among the leading oil and gas explorers in the shale and unconventional resources in the United States. MTDR’s prime priorities include lowering debt, delivering free cashflows and maintaining or increasing dividends.

Matador Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for MTDR’s 2023 and 2024 earnings per share is pegged at $6.36 and $8.56, respectively.

Range Resources Corporation (RRC - Free Report) is among the top 10 natural gas producers in the United States. In the prolific Appalachian Basin, the company has a strong focus on stacked-pay gas projects.

Range Resources has witnessed upward earnings estimate revisions for 2023 and 2024 in the past 30 days. The consensus estimate for RRC’s 2023 and 2024 earnings per share is pegged at $2.10 and $2.94, respectively.

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