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ExxonMobil (XOM) Closes Lea County Asset Sale to Empire
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Exxon Mobil Corporation’s (XOM - Free Report) affiliate XTO Holdings, LLC recently closed the divestment of some producing oil and gas assets in Lea County to Empire Petroleum Corporation. The divested assets are located in the Eunice Monument Field of the prolific Permian Basin. The price tag of the divestment was more than $16 million.
The divested assets include about 700 wells and 40,000 net acres of land. Net production from the assets is expected to be 1,100 barrels of oil equivalent per day. Of the total, 67% is expected to be crude oil. Empire Petroleum, a Tulsa-based upstream company, also received associated gathering assets through the transaction.
The latest divestment is in line with ExxonMobil’s plan of streamlining its portfolio to increase profitability. In the first quarter, the company generated cash flow of $7.6 billion from operations and asset divestments. Last February, it agreed to divest a chunk of upstream assets in U.K. central and northern North Sea region to NEO Energy for more than $1 billion.
Divesting its non-core assets will enable it to focus on more profitable resources, including core Permian assets offshore Guyana and others. Markedly, it increased its guidance for Guyana production to 800,000 barrels per day (bpd) by 2025 from the previous projection of 750,000 bpd by 2026. Furthermore, production is expected to reach 1 million bpd by 2027. The company’s fourth deepwater project in Guyana is expected to boost output.
Price Performance
The stock has gained 30% in the past year compared with 25.4% rise of the industry it belongs to.
Suburban Propane’s bottom line for 2021 is expected to rise 58.8% year over year.
Braskem’s bottom line for 2021 is expected to rise 231.3% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 40% year over year.
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The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
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ExxonMobil (XOM) Closes Lea County Asset Sale to Empire
Exxon Mobil Corporation’s (XOM - Free Report) affiliate XTO Holdings, LLC recently closed the divestment of some producing oil and gas assets in Lea County to Empire Petroleum Corporation. The divested assets are located in the Eunice Monument Field of the prolific Permian Basin. The price tag of the divestment was more than $16 million.
The divested assets include about 700 wells and 40,000 net acres of land. Net production from the assets is expected to be 1,100 barrels of oil equivalent per day. Of the total, 67% is expected to be crude oil. Empire Petroleum, a Tulsa-based upstream company, also received associated gathering assets through the transaction.
The latest divestment is in line with ExxonMobil’s plan of streamlining its portfolio to increase profitability. In the first quarter, the company generated cash flow of $7.6 billion from operations and asset divestments. Last February, it agreed to divest a chunk of upstream assets in U.K. central and northern North Sea region to NEO Energy for more than $1 billion.
Divesting its non-core assets will enable it to focus on more profitable resources, including core Permian assets offshore Guyana and others. Markedly, it increased its guidance for Guyana production to 800,000 barrels per day (bpd) by 2025 from the previous projection of 750,000 bpd by 2026. Furthermore, production is expected to reach 1 million bpd by 2027. The company’s fourth deepwater project in Guyana is expected to boost output.
Price Performance
The stock has gained 30% in the past year compared with 25.4% rise of the industry it belongs to.
Zacks Rank & Stocks to Consider
Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Some better-ranked players in the energy space include Suburban Propane Partners, L.P. (SPH - Free Report) , Braskem S.A. (BAK - Free Report) and PHX Minerals Inc. (PHX - Free Report) , each having a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Suburban Propane’s bottom line for 2021 is expected to rise 58.8% year over year.
Braskem’s bottom line for 2021 is expected to rise 231.3% year over year.
PHX Minerals’ bottom line for 2021 is expected to surge 40% year over year.
Breakout Biotech Stocks with Triple-Digit Profit Potential
The biotech sector is projected to surge beyond $775 billion by 2024 as scientists develop treatments for thousands of diseases. They’re also finding ways to edit the human genome to literally erase our vulnerability to these diseases.
Zacks has just released Century of Biology: 7 Biotech Stocks to Buy Right Now to help investors profit from 7 stocks poised for outperformance. Our recent biotech recommendations have produced gains of +50%, +83% and +164% in as little as 2 months. The stocks in this report could perform even better.
See these 7 breakthrough stocks now>>