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ExxonMobil (XOM) Commences Fawley Oil Refinery Work in UK
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Exxon Mobil Corporation (XOM - Free Report) is set to complete a $1-billion expansion project for diesel production at its Fawley oil refinery in 2024.
Located near Southampton, Hampshire, on England’s south coast, the Fawley oil refinery stands as the largest and oldest among the six operational refinery sites in the UK. The facility processes 270,000 barrels of crude per day.
ExxonMobil plans to incorporate a new hydrogen plant into Britain’s largest oil-processing complex, a move that could open avenues for the development of sustainable aviation fuel. The unit is designed to operate on natural gas.
The refinery is poised to increase low-sulfur diesel production by 40%. Referred to as the Fast project, it is expected to achieve full production in 2025, coinciding with the planned cessation of low-sulfur diesel production at the Grangemouth refinery in Scotland.
ExxonMobil has been working for years on the Fawley diesel facility. The company paused work on the Fawley diesel facility due to Covid-induced drop in fuel demand. In Europe, diesel profits now exceed historical averages due to Russia sanctions impacting the region’s major external supplier.
Although UK diesel demand has not fully recovered to pre-pandemic levels, the country depends on imports for approximately half of its consumption. The Fawley project has the potential to reduce imports by up to a quarter.
The expanded facility is expected to commence production in 2024. ExxonMobil initially projected nearly 45% increase, equivalent to 38,000 barrels per day, in ultra-low sulfur diesel production when it made the final investment decision in 2019.
Earlier this month, XOM obtained funding from the UK government to investigate sustainable aviation fuel production at Fawley. If the project progresses, it could meet 20% of the UK’s sustainable aviation fuel requirements by 2030.
The hydrogen plant at Fawley is set to be part of the Solent cluster, a collaborative effort among companies focused on decarbonizing the industry. XOM’s significant investment aims to decrease Britain’s dependence on imported fuel and reduce emissions linked to global transport.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zack Rank #3 (Hold).
Murphy Oil Corporation (MUR - Free Report) possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies, and independent E&P group.
The company has a long history of increasing the value of its shareholders, courtesy of steady cash flows. Its board of directors approved a 10% increase in the quarterly dividend rate beginning in the first quarter of 2023, taking the total annualized figure to $1.10 per share. MUR’s current dividend yield is 2.57%, better than the Zacks S&P 500 Composite's average of 1.7%.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. Suncor boasts an impressive supply-chain network, owning significant oil sands and conventional production platforms.
Suncor's robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. Notably, SU recently hiked its dividend by 5% to 54.5 Canadian cents per share (over the prior quarter) and increased the buyback authorization to roughly 10% of its public float.
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. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise 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) Commences Fawley Oil Refinery Work in UK
Exxon Mobil Corporation (XOM - Free Report) is set to complete a $1-billion expansion project for diesel production at its Fawley oil refinery in 2024.
Located near Southampton, Hampshire, on England’s south coast, the Fawley oil refinery stands as the largest and oldest among the six operational refinery sites in the UK. The facility processes 270,000 barrels of crude per day.
ExxonMobil plans to incorporate a new hydrogen plant into Britain’s largest oil-processing complex, a move that could open avenues for the development of sustainable aviation fuel. The unit is designed to operate on natural gas.
The refinery is poised to increase low-sulfur diesel production by 40%. Referred to as the Fast project, it is expected to achieve full production in 2025, coinciding with the planned cessation of low-sulfur diesel production at the Grangemouth refinery in Scotland.
ExxonMobil has been working for years on the Fawley diesel facility. The company paused work on the Fawley diesel facility due to Covid-induced drop in fuel demand. In Europe, diesel profits now exceed historical averages due to Russia sanctions impacting the region’s major external supplier.
Although UK diesel demand has not fully recovered to pre-pandemic levels, the country depends on imports for approximately half of its consumption. The Fawley project has the potential to reduce imports by up to a quarter.
The expanded facility is expected to commence production in 2024. ExxonMobil initially projected nearly 45% increase, equivalent to 38,000 barrels per day, in ultra-low sulfur diesel production when it made the final investment decision in 2019.
Earlier this month, XOM obtained funding from the UK government to investigate sustainable aviation fuel production at Fawley. If the project progresses, it could meet 20% of the UK’s sustainable aviation fuel requirements by 2030.
The hydrogen plant at Fawley is set to be part of the Solent cluster, a collaborative effort among companies focused on decarbonizing the industry. XOM’s significant investment aims to decrease Britain’s dependence on imported fuel and reduce emissions linked to global transport.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Murphy Oil Corporation (MUR - Free Report) possesses one of the best upstream portfolios among the domestic oil and natural gas integrated companies, and independent E&P group.
The company has a long history of increasing the value of its shareholders, courtesy of steady cash flows. Its board of directors approved a 10% increase in the quarterly dividend rate beginning in the first quarter of 2023, taking the total annualized figure to $1.10 per share. MUR’s current dividend yield is 2.57%, better than the Zacks S&P 500 Composite's average of 1.7%.
Suncor Energy, Inc. (SU - Free Report) is Canada’s premier integrated energy company. Suncor boasts an impressive supply-chain network, owning significant oil sands and conventional production platforms.
Suncor's robust liquidity position will allow it to sustain its dividend, even if oil prices stay lower for longer. Notably, SU recently hiked its dividend by 5% to 54.5 Canadian cents per share (over the prior quarter) and increased the buyback authorization to roughly 10% of its public float.
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. The Denver, CO-based oil and gas equipment company’s outperformance reflects the impacts of strong execution and increased service pricing.
Liberty’s board of directors announced a cash dividend of seven cents per common share, payable Dec 20, 2023, to stockholders of record as of Dec 6, 2023. This dividend reflects a 40% rise 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.