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Here's Why ExxonMobil (XOM) is an Attractive Investment Bet
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Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy player. Over the past 30 days, the firm, carrying a Zacks Rank #2 (Buy), has witnessed upward earnings estimate revisions for 2023 and 2024.
What's Favoring the Stock?
The price of West Texas Intermediate crude is currently higher than the $85-per-barrel mark. The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. In the Permian Basin – the most prolific oil and gas resource in the United States – and offshore Guyana, ExxonMobil has a solid pipeline of profitable projects.
In order to have a dominant presence in the Permian, ExxonMobil has entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources . Pioneer Natural is one of the foremost oil producers operating in the Permian Basin, the most prolific basin in the industry. With the deal closure, Permian production of the integrated energy major will more than double to 1.3 million barrels of oil equivalent per day (MMBoE/D). Furthermore, ExxonMobil projected that this production figure will rise to an impressive 2 MMBoE/D by 2027.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Thus, in the upstream business front, it could be said that ExxonMobil’s prospect is solid.
XOM has a strong balance sheet, so it can withstand adverse business environments. XOM has a total debt-to-capitalization of 16.7%. Compared to the 24.8% debt-to-capitalization of composite stocks belonging to the industry, ExxonMobil is better off.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of both economic expansion and recession. Over the past seven days, the stock has witnessed upward earnings estimate revisions for this year.
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Here's Why ExxonMobil (XOM) is an Attractive Investment Bet
Exxon Mobil Corporation (XOM - Free Report) is a leading integrated energy player. Over the past 30 days, the firm, carrying a Zacks Rank #2 (Buy), has witnessed upward earnings estimate revisions for 2023 and 2024.
What's Favoring the Stock?
The price of West Texas Intermediate crude is currently higher than the $85-per-barrel mark. The positive trajectory in oil price is a boon for ExxonMobil’s upstream operations. In the Permian Basin – the most prolific oil and gas resource in the United States – and offshore Guyana, ExxonMobil has a solid pipeline of profitable projects.
In order to have a dominant presence in the Permian, ExxonMobil has entered into a staggering $59.5 billion all-stock deal to buy Pioneer Natural Resources . Pioneer Natural is one of the foremost oil producers operating in the Permian Basin, the most prolific basin in the industry. With the deal closure, Permian production of the integrated energy major will more than double to 1.3 million barrels of oil equivalent per day (MMBoE/D). Furthermore, ExxonMobil projected that this production figure will rise to an impressive 2 MMBoE/D by 2027.
In Stabroek Block, located off the coast of Guyana, ExxonMobil has made many major discoveries that significantly improve its production outlook. The advantaged growth projects of Guyana have lower greenhouse gas intensity than most of the oil and gas-producing resources across the globe. Thus, in the upstream business front, it could be said that ExxonMobil’s prospect is solid.
XOM has a strong balance sheet, so it can withstand adverse business environments. XOM has a total debt-to-capitalization of 16.7%. Compared to the 24.8% debt-to-capitalization of composite stocks belonging to the industry, ExxonMobil is better off.
Other Stocks to Consider
Other top-ranked players in the energy space include Kinder Morgan, Inc. (KMI - Free Report) and Murphy USA Inc. (MUSA - Free Report) . Both the stocks carry a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
With its operating interests in oil and gas pipeline networks spread across 83,000 miles, Kinder Morgan is a leading energy infrastructure company in North America. It derives most of its earnings from take-or-pay contracts, generating stable fee-based revenues.
Murphy USA is a renowned retailer of gasoline and convenience goods, distinguished by its adaptable business model that effectively enhances profitability during periods of both economic expansion and recession. Over the past seven days, the stock has witnessed upward earnings estimate revisions for this year.