We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will ExxonMobil's Expanding LNG Portfolio Drive Long-Term Growth?
Read MoreHide Full Article
Key Takeaways
ExxonMobil's Golden Pass Train 1 produced first LNG and loaded its first export cargo in the second quarter.
XOM expects Golden Pass Train 1 to lift U.S. LNG exports ~5%, with all three trains adding ~15% capacity.
ExxonMobil is advancing LNG projects in Papua New Guinea and Mozambique to expand its global network.
ExxonMobil Corporation (XOM - Free Report) , the U.S. oil and gas giant, has an integrated business model spanning upstream operations, refining and trading. Since it derives the majority of its earnings from its upstream business, ExxonMobil continues to focus on its advantaged assets to grow its production and support earnings.
A key component of its advantaged assets includes its liquefied natural gas (LNG) portfolio. ExxonMobil is working to expand its LNG portfolio, which includes the Golden Pass LNG project in Sabine Pass, TX, a joint venture between ExxonMobil and QatarEnergy. On its first-quarter earnings call, the company noted that Train 1 at the Golden Pass LNG facility in Sabine Pass, TX, had achieved its first LNG production. It loaded its first export cargo from the LNG terminal in the second quarter of this year.
XOM has highlighted that the first train is expected to raise U.S. LNG exports by about 5% relative to 2025. Once all three trains come online, the facility is expected to increase the country's LNG export capacity by roughly 15%. Beyond Golden Pass, ExxonMobil is progressing LNG developments in Papua New Guinea and Mozambique, with final investment decisions expected in the near term. These projects will enable the company to diversify its sources of supply and strengthen its global LNG network.
In the long term, this should allow XOM to capitalize on the robust demand for LNG, driven by heightened energy security concerns and the expansion of data center infrastructure, while generating higher cash flows.
Other Energy Sector Players Banking on Growing LNG Demand
ConocoPhillips (COP - Free Report) and Venture Global, Inc. (VG - Free Report) are two global energy firms that can benefit from the rise in global demand for LNG.
One of the key growth drivers of COP’s LNG strategy is the Port Arthur LNG project, which is progressing steadily and is on track to deliver its first LNG in 2027. It is also focused on expanding its international LNG footprint through its Equatorial Guinea LNG operations. COP’s LNG strategy is expected to become a free cash flow growth engine, supported by rising global demand, strategic geographic positioning of its assets and energy security concerns across the globe.
Venture Global is one of the largest U.S.-based exporters of LNG and is currently operating and developing multiple LNG export projects in Louisiana. The company anticipates that the total production capacity across its projects will total approximately 68 million tons per annum, upon completion, with potential upside from optimization initiatives. Being an LNG export company, VG is expected to benefit from the rise in LNG demand, driven by the expansion of data centers, replacement of coal and the global shift toward lower-emission fuels.
XOM’s Price Performance, Valuation & Estimates
Shares of ExxonMobil have risen 39.7% over the past six months compared with the 38% gain of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.67X. This is above the broader industry average of 6.34X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen downward revisions over the past seven days.
View the Zacks #1 Rank List
Image: Bigstock
Will ExxonMobil's Expanding LNG Portfolio Drive Long-Term Growth?
Key Takeaways
ExxonMobil Corporation (XOM - Free Report) , the U.S. oil and gas giant, has an integrated business model spanning upstream operations, refining and trading. Since it derives the majority of its earnings from its upstream business, ExxonMobil continues to focus on its advantaged assets to grow its production and support earnings.
A key component of its advantaged assets includes its liquefied natural gas (LNG) portfolio. ExxonMobil is working to expand its LNG portfolio, which includes the Golden Pass LNG project in Sabine Pass, TX, a joint venture between ExxonMobil and QatarEnergy. On its first-quarter earnings call, the company noted that Train 1 at the Golden Pass LNG facility in Sabine Pass, TX, had achieved its first LNG production. It loaded its first export cargo from the LNG terminal in the second quarter of this year.
XOM has highlighted that the first train is expected to raise U.S. LNG exports by about 5% relative to 2025. Once all three trains come online, the facility is expected to increase the country's LNG export capacity by roughly 15%. Beyond Golden Pass, ExxonMobil is progressing LNG developments in Papua New Guinea and Mozambique, with final investment decisions expected in the near term. These projects will enable the company to diversify its sources of supply and strengthen its global LNG network.
In the long term, this should allow XOM to capitalize on the robust demand for LNG, driven by heightened energy security concerns and the expansion of data center infrastructure, while generating higher cash flows.
Other Energy Sector Players Banking on Growing LNG Demand
ConocoPhillips (COP - Free Report) and Venture Global, Inc. (VG - Free Report) are two global energy firms that can benefit from the rise in global demand for LNG.
One of the key growth drivers of COP’s LNG strategy is the Port Arthur LNG project, which is progressing steadily and is on track to deliver its first LNG in 2027. It is also focused on expanding its international LNG footprint through its Equatorial Guinea LNG operations. COP’s LNG strategy is expected to become a free cash flow growth engine, supported by rising global demand, strategic geographic positioning of its assets and energy security concerns across the globe.
Venture Global is one of the largest U.S.-based exporters of LNG and is currently operating and developing multiple LNG export projects in Louisiana. The company anticipates that the total production capacity across its projects will total approximately 68 million tons per annum, upon completion, with potential upside from optimization initiatives. Being an LNG export company, VG is expected to benefit from the rise in LNG demand, driven by the expansion of data centers, replacement of coal and the global shift toward lower-emission fuels.
XOM’s Price Performance, Valuation & Estimates
Shares of ExxonMobil have risen 39.7% over the past six months compared with the 38% gain of the composite stocks belonging to the industry.
Image Source: Zacks Investment Research
From a valuation standpoint, XOM trades at a trailing 12-month enterprise value to EBITDA (EV/EBITDA) of 9.67X. This is above the broader industry average of 6.34X.
Image Source: Zacks Investment Research
The Zacks Consensus Estimate for XOM’s 2026 earnings has seen downward revisions over the past seven days.
Image Source: Zacks Investment Research
XOM currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.