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ExxonMobil (XOM) Forms Second Crude Pipeline JV With Sentinel

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Exxon Mobil Corporation (XOM - Free Report) has entered a joint venture (JV) with Sentinel Midstream, a pipeline operator. The collaboration aims to establish pipeline connectivity between crude oil terminals in Louisiana.

The JV, named Enercoast Midstream Louisiana, marks the second collaborative effort between ExxonMobil and Sentinel Midstream.

ExxonMobil has made significant contributions to Enercoast, introducing two crude oil pipelines. The first is a 16-inch outer diameter pipeline stretching from St. James to Anchorage, while the second is a 16-inch pipeline originating from Raceland and St. James, delivering to Anchorage.

By utilizing the delivery points in Anchorage, these pipelines will establish crucial connections, linking the ExxonMobil Baton Rouge, Placid and Delek Krotz Springs refineries.

Sentinel Midstream provided cash to secure a majority equity position in the joint venture. As part of the agreement, Sentinel will act as the operator of the JV. The company is set to lead initiatives to commercialize capacity on Enercoast’s system and simultaneously explore opportunities to expand its operational presence in Louisiana.

In its role as the operator, Sentinel brings to the table a seasoned and result-driven management team. This team has a demonstrated record of maximizing value, while upholding core values such as safe, reliable operations and environmental stewardship.

Sentinel’s responsibilities include spearheading initiatives to market capacity on Enercoast’s system and actively seeking opportunities to expand its operational presence in Louisiana.

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.

EOG Resources (EOG - Free Report) boasts an appealing growth profile, delivers upper-quartile returns and is guided by a disciplined management team.

EOG Resources has a strong focus on returning capital to shareholders. From 1999 through 2024, the company is committed to raising its regular dividend at a compound annual growth rate of 21%. EOG has never suspended or lowered its dividend, even during business turmoil, reflecting solid underlying business.

Liberty Energy (LBRT - Free Report) offers hydraulic fracturing services to onshore upstream energy companies across multiple basins in North America.

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.

PBF Energy Inc. (PBF - Free Report) has one of the most complex refining systems in the United States, boasting a high Nelson Complexity Index of 12.7.

Compared with composite stocks belonging to the industry, the leading upstream energy company’s debt-to-capitalization ratio has been consistently lower over the past few years. The company boasts a robust liquidity position, with a cash balance of $1.9 billion, which is more than sufficient to cover its long-term debt of $1.2 billion. This underscores the company’s strong financial liquidity.

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