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ExxonMobil (XOM) Double E Pipeline Gets FERC Proceed Signal

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Exxon Mobil Corporation’s (XOM - Free Report) Double E Pipeline recently received a favorable go-ahead from the Federal Energy Regulatory Commission (“FERC”). The project has received Notice to Proceed for construction and Implementation Plan approval from the regulatory body.

The project is a joint venture between ExxonMobil and Summit Midstream Partners, LP (SMLP - Free Report) . While ExxonMobil has a 30% interest in the pipeline, the remaining 70% operating stake is owned by Summit Midstream. The construction manager of the pipeline, Summit Midstream has also received rights-of-way on federal lands for the Double E Pipeline. Construction works will likely commence in the current quarter.

The 135.2-mile Permian Basin natural gas pipeline project is expected to be commissioned in fourth-quarter 2021. Last April, it received favorable environmental assessment from the FERC, following an environmental analysis, as the regulatory authority expected the pipeline to have minimal impact on the environment. The pipeline is expected to provide much relief to producers in the region, where natural gas comes as a buy-product of oil and huge flaring problems are faced.

The pipeline will transport natural gas from the northern Delaware Basin in Eddy County to Waha, TX and have a shipping capacity of 1,350 million cubic feet of natural gas per day. From the starting point, the commodity will be sent to the markets along the U.S. Gulf Coast and Mexico.

Price Performance

ExxonMobil has gained 40.5% in the past three months.

Zacks Rank & Other Stocks to Consider

The company currently carries a Zacks Rank #1 (Strong Buy). Other top-ranked players in the energy space include TC PipeLines, LP (TCP - Free Report) and Suncor Energy Inc. (SU - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TC PipeLines’ bottom-line estimates for 2021 have increased nearly 2% in the past 60 days.

Suncor’s sales for 2021 are expected to increase 16.5% year over year.

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