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ExxonMobil (XOM) Decides to End Long-Term Ties With Russia

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Exxon Mobil Corporation (XOM - Free Report) announced that it has commenced the process of discontinuation of operations at Sakhalin-1 and plans to make no new investments in Russia.

With the exit from the key oil and gas project, located off the eastern coast of Russia, ExxonMobil is concluding its operations in Russia that spanned over decades. Thus, ExxonMobil is aligning its interests with the business communities across the world that are isolating Russia over its violent and unprovoked invasion of Ukraine.

Another energy player that recently announced its decision to quit Russia is BP plc (BP - Free Report) . The company announced its stake withdrawal from Russia’s oil and gas company Rosneft after more than a 30-year stretch in the country.

BP was one of the biggest foreign investors in Russia. The British energy giant has been facing immense pressure from the U.K. government to offload its stake in Russia.

In a separate release, ExxonMobil announced that this year its capital budget is in the band of $21 billion to $24 billion. Also, through 2027, XOM expects capital spending in the range of $20 billion to $25 billion. Apart from spreading over capital spending over potential upstream and other projects, ExxonMobil will invest in reducing greenhouse gas emissions in its operations.

Annual Investor Day presentations also outlined XOM’s plan for annual structural reductions of $9 billion per year by 2023 in comparison to 2019.

Currently, ExxonMobil sports a Zacks Rank #1 (Strong Buy). Other prospective players in the energy space include ConocoPhillips (COP - Free Report) and Chevron Corporation (CVX - Free Report) . While ConocoPhillips sports a Zacks Rank #1, Chevron carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Considering production and proved reserves, ConocoPhillips is one of the leading upstream energy players. In the past 30 days, ConocoPhillips has witnessed upward earnings estimate revisions in the past 30 days.

ConocoPhillips’ estimate for earnings for 2022 is pegged at $9.74 per share, suggesting a year-over-year increase of 62.1%.

In the Permian basin, Chevron has a strong footprint. The majority of Chevron’s assets in the most prolific basin of the United States have minimal royal payments, thereby securing handsome cashflows in the long run.

In the past 30 days, Chevron has witnessed upward earnings estimate revisions for 2022.

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