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ExxonMobil (XOM) Taps Oil From SPR for Baton Rouge Refinery

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Exxon Mobil Corporation (XOM - Free Report) will receive crude oil from the Strategic Petroleum Reserve (SPR). Jennifer M. Granholm, U.S. Secretary of Energy, has authorized the release of 1,500,000 barrels of crude oil to the integrated energy major from the SPR.

The authorization is meant for exchanging oil from the U.S strategic reserve with Baton Rouge refinery of ExxonMobil in Baton Rouge, LA. Thus, any logistical hazards of carrying crude oil to the Hurricane Ida-affected regions will get alleviated.

Hurricane Ida battered New Orleans and much of southeast Louisiana after making landfall on Sunday. Power was out, trees were downed and the regular crude oil supply was destroyed. Ahead of the hurricane, there was a shut-down of significant refining capacities and like many other fuel producers, ExxonMobil also shut down its Louisiana-based processing units of crude oil. Now, the integrated energy giant is restarting its Baton Rouge refinery.

Based in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy space include Whiting Petroleum Corporation (WLL - Free Report) , Continental Resources, Inc. (CLR - Free Report) and PDC Energy, Inc. (PDCE - Free Report) . While Whiting Petroleum and Continental Resources sport a Zacks Rank #1, PDC Energy carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Whiting Petroleum has witnessed upward earnings estimate revisions for 2021 in the past 30 days.

Continental is expected to witness earnings growth of 256% in 2021.

PDC Energy is likely to see earnings growth of 111.8% in 2021.