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ExxonMobil (XOM) Agrees to Develop North Field East Project

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Exxon Mobil Corporation (XOM - Free Report) recently announced that it has entered into an agreement with QatarEnergy. The accord entails the further development of the North Field East project of Qatar.

The agreement, which was declared at QatarEnergy’s headquarters in Doha, will be responsible for expanding the yearly LNG production of Qatar to 110 million tons from 77 million tons. The expansion of the capacity will be conducted by 2026.

Included in the deal terms, ExxonMobil and QatarEnergy will form a new joint venture (JV). In the JV, the companies will become partners, with QatarEnergy having 75% interest and ExxonMobil holding the remaining 25% stake. In the entire North Field East project, the JV will have 25% ownership interests.

The deal seems lucrative for both the companies since the demand for LNG is mounting, with LNG being a cleaner burning fuel than coal and easier to transport. 

Currently, ExxonMobil carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are Antero Resources (AR - Free Report) ), Whiting Petroleum and Cheniere Energy, Inc. (LNG - Free Report) . All the stocks sport a Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources is a leading upstream energy player with a strong presence in the gas-rich prolific Appalachian Basin in West Virginia and Ohio. In the past 60 days, Antero Resources has witnessed upward earnings estimate revisions for 2022 and 2023.

The substantial exposure to improving commodity price is a huge positive for Antero Resources.

Whiting Petroleum is a leading upstream energy company and the top producer of crude oil in North Dakota. With oil prices improving rapidly, Whiting Petroleum is expected to continue generating handsome cash flows while maintaining a healthy balance sheet.

Headquartered in Denver, CO, Whiting Petroleum has witnessed upward earnings estimate revisions for 2022 and 2023 in the past 30 days.

Prospects for Cheniere Energy look bright since the firm is a leading producer and exporter of liquefied natural gas (LNG - Free Report) in the domestic market. Cheniere Energy is well-positioned to capitalize on the improving demand for LNG.

In 2022, Cheniere Energy is likely to see earnings growth of more than 260%.


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