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Exxon Mobil Announces Major Oil Discovery Offshore Guyana

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Oil major Exxon Mobil Corporation (XOM - Free Report) has recently announced a promising deepwater oil find on the prolific Stabroek Block at Snoek well, located offshore Guyana. This marks the company’s third such discovery on the Stabroek Block, after Liza and Payara discoveries.

The 82 feet, high quality oil bearing sandstone reservoir – Snoek well – was drilled by Exxon Mobil affiliate Esso Exploration and Production Guyana Ltd using Stena Carron drillship. Post the completion of the drilling of Snoek well, Stena Carron drillship has resumed boring the Liza-4 well.  

Esso Exploration and Production is responsible for all Exxon Mobil’s drilling projects in the Guyanese waters, including its previous discoveries at Liza and Payara. Esso Exploration and Production Guyana is the chief operator of the Stabroek Block owning 45% of the stake. Hess Guyana Exploration Ltd. and CNOOC Nexen Petroleum Guyana Limited hold 30% and 25% interests respectively.

Zacks Rank and Key Pick

Irving, TX-based ExxonMobil (XOM - Free Report) is the world’s largest publicly traded oil company, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses.

Shares of ExxonMobil has underperformed the Zacks categorized Oil & Gas-International Integrated industry in the last one year. During the aforesaid period, while ExxonMobil stock gained less than 1%, the broader industry improved 10%.

ExxonMobil’s dividend yield is one of the lowest among major energy firms.

The company currently carries Zacks Rank #4 (Sell).

Better-ranked players from the same industry include YPF S.A. (YPF - Free Report) , Repsol, S.A. (REPYY - Free Report) and Statoil ASA . All the three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1(Strong Buy) Rank stocks here.

YPF posted a positive earnings surprise of 53.47% in the last quarter.

Repsol reported positive average earnings surprise of 46.34% in the preceding four quarters.

Statoil Is expected to generate year over year growth of 1694.4% growth in its earnings in 2017.

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