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ExxonMobil (XOM) Divests Stake in Gulf of Mexico Fields
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Exxon Mobil Corporation (XOM - Free Report) entered an agreement to divest its interest in the Gulf of Mexico’s Ursa and Princess fields.
Esperanza Capital Partners (“ECP”) and Andros Capital Partners are acquiring the stake as a joint venture (JV). The financial details of the deal have not been disclosed, marking a significant move for both buyers and the seller.
The JV between Esperanza Capital Partners and Andros Capital Partners is strategically aimed at the acquisition and further development of upstream assets in the deep-water regions of the Gulf of Mexico.
The divestment includes the current production from Ursa, which stands at 8,500 barrels of oil equivalent per day, primarily consisting of oil. The deal encompasses related infrastructure, notably the Ursa Tension Leg Platform host facility, further solidifying the JV's foothold in the region.
The Ursa field encompasses several Mississippi Canyon Federal OCS Blocks, including 765, 766, 808, 809, 810, 852, 853 and 854.
Once the transaction closes, Esperanza will secure a 15.96% interest in the Ursa field. The move is seen as a strategic divestiture for ExxonMobil, allowing the company to reallocate resources and focus on other priorities.
Esperanza Capital Partners views this acquisition as a transformative transaction that aligns with the firm's fundamental strategy laid out at its inception. This marks Esperanza’s third investment in the Gulf of Mexico, carried out in partnership with Cockrell Interests LLC.
In a separate development, Vista Energy, an Argentina-based shale-oil producer, is exploring the acquisition of assets from ExxonMobil to enhance its presence in Argentina’s Vaca Muerta formation, a key shale oil and gas reservoir. This potential acquisition underlines the global nature of the reshaping of the energy sector, as companies seek to optimize their portfolios and invest in strategic assets around the world.
The series of transactions highlights the dynamic nature of the energy sector, with key players continuously adjusting their strategies to navigate the complex landscape of global energy production and investment.
Zacks Ranks & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Valaris (VAL - Free Report) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, the company has worked in nearly every major offshore basin.
The Zacks Consensus Estimate for VAL’s 2024 EPS is pegged at $4.75. Valaris has witnessed upward earnings estimate revisions for 2024 in the past 60 days. VAL’s 2024 earnings are expected to soar 118.5% year over year.
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 and 2025 in the past seven days.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. The company’s 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. ET’s 2024 earnings are expected to rise 12.4% year over year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.
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ExxonMobil (XOM) Divests Stake in Gulf of Mexico Fields
Exxon Mobil Corporation (XOM - Free Report) entered an agreement to divest its interest in the Gulf of Mexico’s Ursa and Princess fields.
Esperanza Capital Partners (“ECP”) and Andros Capital Partners are acquiring the stake as a joint venture (JV). The financial details of the deal have not been disclosed, marking a significant move for both buyers and the seller.
The JV between Esperanza Capital Partners and Andros Capital Partners is strategically aimed at the acquisition and further development of upstream assets in the deep-water regions of the Gulf of Mexico.
The divestment includes the current production from Ursa, which stands at 8,500 barrels of oil equivalent per day, primarily consisting of oil. The deal encompasses related infrastructure, notably the Ursa Tension Leg Platform host facility, further solidifying the JV's foothold in the region.
The Ursa field encompasses several Mississippi Canyon Federal OCS Blocks, including 765, 766, 808, 809, 810, 852, 853 and 854.
Once the transaction closes, Esperanza will secure a 15.96% interest in the Ursa field. The move is seen as a strategic divestiture for ExxonMobil, allowing the company to reallocate resources and focus on other priorities.
Esperanza Capital Partners views this acquisition as a transformative transaction that aligns with the firm's fundamental strategy laid out at its inception. This marks Esperanza’s third investment in the Gulf of Mexico, carried out in partnership with Cockrell Interests LLC.
In a separate development, Vista Energy, an Argentina-based shale-oil producer, is exploring the acquisition of assets from ExxonMobil to enhance its presence in Argentina’s Vaca Muerta formation, a key shale oil and gas reservoir. This potential acquisition underlines the global nature of the reshaping of the energy sector, as companies seek to optimize their portfolios and invest in strategic assets around the world.
The series of transactions highlights the dynamic nature of the energy sector, with key players continuously adjusting their strategies to navigate the complex landscape of global energy production and investment.
Zacks Ranks & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. The three companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Valaris (VAL - Free Report) is the industry leader in offshore drilling services across all water depths and geographies. Operating a high-quality rig fleet of ultra-deepwater drillships, versatile semisubmersibles and modern shallow-water jackups, the company has worked in nearly every major offshore basin.
The Zacks Consensus Estimate for VAL’s 2024 EPS is pegged at $4.75. Valaris has witnessed upward earnings estimate revisions for 2024 in the past 60 days. VAL’s 2024 earnings are expected to soar 118.5% year over year.
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 and 2025 in the past seven days.
Energy Transfer (ET - Free Report) is a publicly traded limited partnership focused on diverse energy assets in the United States. The company’s 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. ET’s 2024 earnings are expected to rise 12.4% year over year.
Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.