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.
Reasons to Retain ExxonMobil (XOM) in Your Portfolio Now
Read MoreHide Full Article
Over the past seven days,Exxon Mobil Corporation (XOM - Free Report) has witnessed no earnings estimate revisions for 2024 and 2025. This leading integrated energy player has a Zacks Rank #3 (Hold) at present.
What's Favoring the Stock?
The West Texas Intermediate crude is currently trading at more than the $75-per-barrel mark. The favorable trajectory in oil prices is a boon for ExxonMobil’s upstream operations. In the Permian Basin – the most prolific oil and gas resource in the United States – and offshore Guyana, ExxonMobil has a solid pipeline of profitable projects.
The prominent integrated energy player recently completed the acquisition of Pioneer Natural Resources, a major oil producer in the Permian Basin, significantly expanding its footprint in the region. As a result of the acquisition, the combined entity will now have a footprint of more than 1.4 million net acres across the Delaware and Midland sub-basins. ExxonMobil has estimated the resource potential at 16 billion barrels of oil equivalent.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Thus, in the upstream business front, ExxonMobil’s prospects appear solid.
XOM has a strong balance sheet, hence it can withstand adverse business environments. XOM has a total debt-to-capitalization of almost 16%. Compared to the 24.4% debt-to-capitalization of composite stocks belonging to the industry, ExxonMobil is better off.
Risks
However, in terms of dividend yield, XOM has consistently lagged composite stocks belonging to the industry over the past year. Also, the energy giant’s upstream operations are highly exposed to extreme volatility of oil and gas prices.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Shutterstock
Reasons to Retain ExxonMobil (XOM) in Your Portfolio Now
Over the past seven days,Exxon Mobil Corporation (XOM - Free Report) has witnessed no earnings estimate revisions for 2024 and 2025. This leading integrated energy player has a Zacks Rank #3 (Hold) at present.
What's Favoring the Stock?
The West Texas Intermediate crude is currently trading at more than the $75-per-barrel mark. The favorable trajectory in oil prices is a boon for ExxonMobil’s upstream operations. In the Permian Basin – the most prolific oil and gas resource in the United States – and offshore Guyana, ExxonMobil has a solid pipeline of profitable projects.
The prominent integrated energy player recently completed the acquisition of Pioneer Natural Resources, a major oil producer in the Permian Basin, significantly expanding its footprint in the region. As a result of the acquisition, the combined entity will now have a footprint of more than 1.4 million net acres across the Delaware and Midland sub-basins. ExxonMobil has estimated the resource potential at 16 billion barrels of oil equivalent.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Thus, in the upstream business front, ExxonMobil’s prospects appear solid.
XOM has a strong balance sheet, hence it can withstand adverse business environments. XOM has a total debt-to-capitalization of almost 16%. Compared to the 24.4% debt-to-capitalization of composite stocks belonging to the industry, ExxonMobil is better off.
Risks
However, in terms of dividend yield, XOM has consistently lagged composite stocks belonging to the industry over the past year. Also, the energy giant’s upstream operations are highly exposed to extreme volatility of oil and gas prices.
Stocks to Consider
Better-ranked energy companies include Sunoco LP (SUN - Free Report) , ProPetro Holding Corp. (PUMP - Free Report) and Vista Energy SAB de CV (VIST - Free Report) . All the stocks carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Sunoco, the leading independent fuel distributor in the United States, has a stable business model and relatively lower exposure to commodity price volatility. This is because the partnership distributes fuel to branded distributors under long-term contracts.
The business scenario for ProPetro Holding is bright, given the current favorable oilfield service demand. Thus, it secures handsome cashflows as it is a leading provider of pressure pumping and other complementary services. For 2024 and 2025, ProPetro Holding has witnessed upward earnings estimate revisions over the past 30 days.
Vista Energy, a leading exploration and production company, has a significant presence in Vaca Muerta, a highly productive shale oil and gas play outside of North America. The company has set an ambitious goal of achieving net-zero emissions by 2026.