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ExxonMobil (XOM) Considers Divestment of Vaca Muerta Assets
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Exxon Mobil Corporation (XOM - Free Report) is reportedly contemplating the sale of its oil and gas assets in Argentina’s lucrative Vaca Muerta shale region. This development indicates a major shift in the U.S. energy giant’s focus in South America.
ExxonMobil’s assets in Argentina encompass stakes in seven oil and gas blocks in the Vaca Muerta region. The sale process began last year, with ExxonMobil exploring options for a potential $1-billion sale of these shale assets. The process seems to be advancing, with binding offers reportedly presented at the beginning of February.
The Vaca Muerta, known as the world’s second-largest shale gas reserve and fourth-largest for shale oil, has been a beacon of potential for turning Argentina into an energy powerhouse. The region is crucial for Argentina’s ambition to curb dependence on expensive imports, especially amid its ongoing economic crisis.
Vista Energy, the second-largest shale oil producer in Argentina behind the state-owned YPF, has publicly expressed interest in acquiring ExxonMobil’s Vaca Muerta assets. Vista’s CEO, Miguel Galuccio, acknowledged the attractiveness of these assets and confirmed the company’s interest.
Argentina’s economic landscape plays a significant backdrop to this potential transaction. The country, under its new right-wing libertarian president, Javier Milei, is grappling with a severe economic crisis, characterized by more than 250% inflation, dwindling foreign currency reserves and stringent capital controls to stabilize the peso. These challenges have posed difficulties for companies operating in the country despite the government’s efforts to boost investment in Vaca Muerta.
ExxonMobil’s potential divestment from the Vaca Muerta shale region indicates a strategic reevaluation of its global assets amid Argentina’s complex economic situation. The outcome of this sale could have far-reaching implications for both ExxonMobil’s portfolio and Argentina’s energy sector.
Zacks Rank & Stocks to Consider
Currently, ExxonMobil carries a Zack Rank #3 (Hold).
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.58. The company has a Zacks Style Score of A for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.44. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days. The company has a Zacks Style Score of A for Value.
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ExxonMobil (XOM) Considers Divestment of Vaca Muerta Assets
Exxon Mobil Corporation (XOM - Free Report) is reportedly contemplating the sale of its oil and gas assets in Argentina’s lucrative Vaca Muerta shale region. This development indicates a major shift in the U.S. energy giant’s focus in South America.
ExxonMobil’s assets in Argentina encompass stakes in seven oil and gas blocks in the Vaca Muerta region. The sale process began last year, with ExxonMobil exploring options for a potential $1-billion sale of these shale assets. The process seems to be advancing, with binding offers reportedly presented at the beginning of February.
The Vaca Muerta, known as the world’s second-largest shale gas reserve and fourth-largest for shale oil, has been a beacon of potential for turning Argentina into an energy powerhouse. The region is crucial for Argentina’s ambition to curb dependence on expensive imports, especially amid its ongoing economic crisis.
Vista Energy, the second-largest shale oil producer in Argentina behind the state-owned YPF, has publicly expressed interest in acquiring ExxonMobil’s Vaca Muerta assets. Vista’s CEO, Miguel Galuccio, acknowledged the attractiveness of these assets and confirmed the company’s interest.
Argentina’s economic landscape plays a significant backdrop to this potential transaction. The country, under its new right-wing libertarian president, Javier Milei, is grappling with a severe economic crisis, characterized by more than 250% inflation, dwindling foreign currency reserves and stringent capital controls to stabilize the peso. These challenges have posed difficulties for companies operating in the country despite the government’s efforts to boost investment in Vaca Muerta.
ExxonMobil’s potential divestment from the Vaca Muerta shale region indicates a strategic reevaluation of its global assets amid Argentina’s complex economic situation. The outcome of this sale could have far-reaching implications for both ExxonMobil’s portfolio and Argentina’s energy sector.
Zacks Rank & Stocks to Consider
Currently, ExxonMobil carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Murphy USA Inc. (MUSA - Free Report) is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 EPS is pegged at $25.58. The company has a Zacks Style Score of A for Growth and B for Value. It has witnessed upward earnings estimate revisions for 2024 in the past seven days.
Subsea 7 S.A. (SUBCY - Free Report) helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 91 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. SUBCY’s 2024 earnings are expected to soar 277% year over year.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. Its core operations involve natural gas midstream services, transportation, storage, crude oil facilities and marketing assets.
The Zacks Consensus Estimate for ET’s 2024 EPS is pegged at $1.44. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days. The company has a Zacks Style Score of A for Value.