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Marathon (MRO) to Advance Guinea Gas Mega Hub With Chevron
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Marathon Oil (MRO - Free Report) recently announced that it has inked a heads of agreement (HOA) with the Republic of Equatorial Guinea and Noble Energy, a Chevron (CVX - Free Report) company. It did so through its affiliated company, Marathon E.G. Holding Limited. The deal is aimed at advancing the next phases (Phases II and III) of the Equatorial Guinea Regional Gas Mega Hub. Investors should know that Chevron got hold of the assets in the West African country, as part of its $5 billion acquisition of Noble Energy in 2020.
According to Marathon Oil chairman, president, and CEO, Lee Tillman, the announcement builds on the company’s successful partnership with the E.G. Government for more than 20 years, further leveraging and extending the life of E.G.'s world-class gas monetization infrastructure, including the crucial E.G. LNG facility, into the next decade.
Phase I of the abovementioned gas mega hub (GMH) was effectively completed with the tieback of the Alen Field to Punta Europa, which began delivering gas in February 2021. Alen gas is processed through the LNG facility, owned by Equatorial Guinea LNG Holdings Ltd. (E.G. LNG, MRO 56% interest) and the onshore Liquified Petroleum Gas (LPG) factory operated by Alba factory LLC (MRO 52% stake).The announced HOA draws on the success of Phase I, uniting all stakeholders around the essential commercial principles to advance the GMH’s Phases II and III.
The processing of gas from the Alba Unit (MRO 64% interest) will take place under new contractual conditions beginning Jan 1, 2024, following the expiration of the old Henry Hub-linked Alba sales and purchase deal at the end of this year.
Phase II is anticipated to considerably increase the company's E.G. profits and cash flow while also materially increasing MRO's exposure to LNG pricing on a global scale. Gas processing from the Aseng Field is anticipated to become easier by Phase III of the GMH at Punta Europa infrastructure.
The GMH can be further expanded through the expedited monetization of cross-border wet gas fields, owing to a recently established bilateral treaty between E.G. and Cameroon on cross-border oil and gas development. In addition to its commercial advantages, the expanded development also guarantees future fuel gas volumes for E.G.'s power production requirements and creates long-term job prospects for Equatoguineans.
Two top-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) and Par Pacific Holdings Inc. (PARR - Free Report) , both sporting a Zacks Rank #1.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.
Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 barrels per day of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, PARR has witnessed an upward revision in earnings estimates for 2023 and 2024.
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Marathon (MRO) to Advance Guinea Gas Mega Hub With Chevron
Marathon Oil (MRO - Free Report) recently announced that it has inked a heads of agreement (HOA) with the Republic of Equatorial Guinea and Noble Energy, a Chevron (CVX - Free Report) company. It did so through its affiliated company, Marathon E.G. Holding Limited. The deal is aimed at advancing the next phases (Phases II and III) of the Equatorial Guinea Regional Gas Mega Hub. Investors should know that Chevron got hold of the assets in the West African country, as part of its $5 billion acquisition of Noble Energy in 2020.
According to Marathon Oil chairman, president, and CEO, Lee Tillman, the announcement builds on the company’s successful partnership with the E.G. Government for more than 20 years, further leveraging and extending the life of E.G.'s world-class gas monetization infrastructure, including the crucial E.G. LNG facility, into the next decade.
Phase I of the abovementioned gas mega hub (GMH) was effectively completed with the tieback of the Alen Field to Punta Europa, which began delivering gas in February 2021. Alen gas is processed through the LNG facility, owned by Equatorial Guinea LNG Holdings Ltd. (E.G. LNG, MRO 56% interest) and the onshore Liquified Petroleum Gas (LPG) factory operated by Alba factory LLC (MRO 52% stake).The announced HOA draws on the success of Phase I, uniting all stakeholders around the essential commercial principles to advance the GMH’s Phases II and III.
The processing of gas from the Alba Unit (MRO 64% interest) will take place under new contractual conditions beginning Jan 1, 2024, following the expiration of the old Henry Hub-linked Alba sales and purchase deal at the end of this year.
Phase II is anticipated to considerably increase the company's E.G. profits and cash flow while also materially increasing MRO's exposure to LNG pricing on a global scale. Gas processing from the Aseng Field is anticipated to become easier by Phase III of the GMH at Punta Europa infrastructure.
The GMH can be further expanded through the expedited monetization of cross-border wet gas fields, owing to a recently established bilateral treaty between E.G. and Cameroon on cross-border oil and gas development. In addition to its commercial advantages, the expanded development also guarantees future fuel gas volumes for E.G.'s power production requirements and creates long-term job prospects for Equatoguineans.
Zacks Rank & Key Picks
Currently, Marathon Oil carries a Zack Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Two top-ranked stocks for investors interested in the energy sector are CVR Energy (CVI - Free Report) and Par Pacific Holdings Inc. (PARR - Free Report) , both sporting a Zacks Rank #1.
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023.
Par Pacific, a growth-oriented company, combines knowledge of corporate financing with experience in the oil and gas sector. With 94,000 barrels per day of active refining capacity and a logistical system that includes an SPM, storage, barges, pipelines and trucking operations, PARR owns and manages one of Hawaii's biggest energy networks. Over the past 30 days, PARR has witnessed an upward revision in earnings estimates for 2023 and 2024.