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ExxonMobil (XOM) Begins Drilling First Lithium Well in Arkansas
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Exxon Mobil Corporation (XOM - Free Report) initiated lithium drilling operations in Arkansas, with the goal of establishing itself as a prominent supplier of lithium for electric vehicle (EV) battery manufacturers in the United States by 2030.
The company’s foray into the industry aligns with the growing focus on emerging technologies that seek to enhance global production of the ultralight metal. These technologies involve extracting lithium from salty brine deposits found globally and supplying it to battery manufacturers seeking new and abundant sources.
Lithium serves as a crucial component in the production of batteries for electric vehicles, cellphones and laptops. Extracting lithium from brine is considered a more environmentally-friendly approach compared with traditional mining methods. In the process, the saltwater is reinjected into the earth after lithium is extracted, contributing to a more sustainable and ecologically responsible practice.
In early 2023, ExxonMobil acquired the rights to 120,000 gross acres of the Smackover formation in southern Arkansas, considered one of the most prolific lithium resources of its type in North America. XOM’s acquisition placed it at the heart of an emerging lithium industry focused on scaling up profitable technology for extracting lithium from underground saltwater abundant in decommissioned oil fields in Arkansas.
ExxonMobil aims to commence lithium production in Arkansas, targeting a minimum production of 10,000 metric tons per year by 2026. This initial production is approximately sufficient to manufacture 100,000 EV batteries.
This year, the company has been actively drilling wells in Arkansas to analyze the extensive Smackover Formation. This geological formation, spanning from Florida to Texas, is abundant in lithium and bromine-rich brine. Additionally, the company has been experimenting with unproven direct lithium extraction technology, which is a key component for future commercial operations.
The company aims to achieve its initial lithium production in 2027 and is actively assessing global expansion opportunities. By 2030, ExxonMobil aims to generate sufficient lithium to meet the manufacturing demands of more than a million electric vehicles annually. Discussions with potential customers, including electric vehicle and battery manufacturers, are in progress.
Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of earnings of 27 cents per share. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from the figure reported in the third quarter.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of earnings of $1.59 per share. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend is up 40% from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.
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ExxonMobil (XOM) Begins Drilling First Lithium Well in Arkansas
Exxon Mobil Corporation (XOM - Free Report) initiated lithium drilling operations in Arkansas, with the goal of establishing itself as a prominent supplier of lithium for electric vehicle (EV) battery manufacturers in the United States by 2030.
The company’s foray into the industry aligns with the growing focus on emerging technologies that seek to enhance global production of the ultralight metal. These technologies involve extracting lithium from salty brine deposits found globally and supplying it to battery manufacturers seeking new and abundant sources.
Lithium serves as a crucial component in the production of batteries for electric vehicles, cellphones and laptops. Extracting lithium from brine is considered a more environmentally-friendly approach compared with traditional mining methods. In the process, the saltwater is reinjected into the earth after lithium is extracted, contributing to a more sustainable and ecologically responsible practice.
In early 2023, ExxonMobil acquired the rights to 120,000 gross acres of the Smackover formation in southern Arkansas, considered one of the most prolific lithium resources of its type in North America. XOM’s acquisition placed it at the heart of an emerging lithium industry focused on scaling up profitable technology for extracting lithium from underground saltwater abundant in decommissioned oil fields in Arkansas.
ExxonMobil aims to commence lithium production in Arkansas, targeting a minimum production of 10,000 metric tons per year by 2026. This initial production is approximately sufficient to manufacture 100,000 EV batteries.
This year, the company has been actively drilling wells in Arkansas to analyze the extensive Smackover Formation. This geological formation, spanning from Florida to Texas, is abundant in lithium and bromine-rich brine. Additionally, the company has been experimenting with unproven direct lithium extraction technology, which is a key component for future commercial operations.
The company aims to achieve its initial lithium production in 2027 and is actively assessing global expansion opportunities. By 2030, ExxonMobil aims to generate sufficient lithium to meet the manufacturing demands of more than a million electric vehicles annually. Discussions with potential customers, including electric vehicle and battery manufacturers, are in progress.
Zacks Rank & Other Key Picks
ExxonMobil currently carries a Zack Rank #2 (Buy).
Investors interested in the energy sector may look at the following companies that presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Oceaneering International, Inc. (OII - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which beat the Zacks Consensus Estimate of earnings of 27 cents per share. OII’s outperformance was largely due to the robust results in certain segments.
For the fourth quarter of 2023, OII anticipates a decline in EBITDA on relatively flat revenues from the figure reported in the third quarter.
Matador Resources Company (MTDR - Free Report) reported third-quarter 2023 adjusted earnings of $1.86 per share, which beat the Zacks Consensus Estimate of earnings of $1.59 per share. MTDR’s milestone led to better-than-expected third-quarter results, with the highest-ever total production averaging more than 135,000 barrels of oil and natural gas equivalent per day.
For the fourth quarter of 2023, Matador expects an average daily oil equivalent production of 145,000 BOE. The recent guidance indicates a 2% upward revision from the prior mentioned 143,000 BOE/D.
Liberty Energy (LBRT - Free Report) reported third-quarter 2023 earnings of 85 cents per share, which beat the Zacks Consensus Estimate of earnings of 74 cents per share. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impact of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable on Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend is up 40% from the previous quarter’s level. As part of its shareholder return policy, LBRT repurchased shares worth $29 million at an average price of $16.38 per share.