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ExxonMobil's (XOM) Yellowtail Project Gets Regulatory Nod

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Exxon Mobil Corporation (XOM - Free Report) has announced a final investment decision for the Yellowtail development, located off the coast of Guyana. The final investment decision followed the government and regulatory approvals.

In the Stabroek Block, this is the fourth and largest project of ExxonMobil. Commencing 2025, the key development will produce roughly 250,000 barrels of oil per day, as expected by ExxonMobil. The Yellowtail project that will utilize the ONE GUYANA floating production storage and offloading (FPSO) vessel will be developing an estimated resource of more than 900 million barrels of oil. ExxonMobil said that the development that is worth $10 billion will comprise six drilling sites and up to 26 production and 25 injection wells.

The ongoing activities of ExxonMobil related to exploration in offshore resources in Guyana have so far discovered a recoverable resource of more than 10 billion oil-equivalent barrels. In the Stabroek Block, ExxonMobil is the operator and has a 45% interest. Hess Corporation (HES - Free Report) is responsible for a 30% interest.

From offshore activities in Guyana, ExxonMobil and Hess will be gaining significantly. This is because Guyana is among the highest operating cash margin projects globally with a low-emission intensity. Hess is also expecting substantial free cashflow from the Gulf of Mexico upstream project. Like XOM, Guyana, which holds a world-class investment prospect, is a transformational opportunity for Hess.

Currently, ExxonMobil and Hess carry a Zacks Rank #3 (Hold).Two prospective players in the energy space are Devon Energy Corporation (DVN - Free Report) and Viper Energy Partners LP (VNOM - Free Report) . Both Devon Energy and Viper Energy Partners sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

In the United States, Devon Energy is a leading upstream player with a strong footprint in the prolific Delaware Basin. Devon Energy is also focused on returning capital to shareholders.

In the past seven days, Devon Energy has witnessed upward earnings estimate revisions for 2022.

In the prolific Permian and Eagle Ford shale play, Viper Energy has a net of 27,027 royalty acres. Operations in those undeveloped assets require zero capital requirement. This secures sustainable free cashflow for Viper Energy.

In the past seven days, Viper Energy has witnessed upward earnings estimate revisions for 2022.