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ExxonMobil (XOM) May Explore Offshore Gas Blocks in Israel

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Exxon Mobil Corporation (XOM - Free Report) is thinking of exploring Israel as an oil and natural gas destination, according to Reuters. With this, the integrated player will be the first energy giant considering to explore resources in the nation, which is still in conflict with Gulf Arab states. 

The source added that the executives of ExxonMobil had conversations with energy minister of Israel in Houston to bid for exploration and production rights in the nation’s offshore resources. Israel is reportedly planning to conduct auctions for those blocks in June.

The largest publicly traded energy firm is now eying Israeli blocks since, over the last decade several big natural gas discoveries have been made in resources located off the coast of the country. In other words, those areas have now emerged as new prospective destinations for exploring oil and natural gas. The sub-sea rocks have huge resources — reportedly estimated at 75 trillion cubic feet of natural gas and 6.6 billion barrels of crude oil.  

If ExxonMobil can finally start operating in Israel, it will likely be able to produce huge natural gas volumes and meet the mounting clean energy demand in the global market much better.

Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Antero Resources Corporation (AR - Free Report) , Jones Energy Inc. (JONE - Free Report) and SemGroup Corporation . While Antero Resources sports a Zacks Rank #1 (Strong Buy), Jones Energy and SemGroup carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Antero Resources’ earnings beat the Zacks Consensus Estimate in two straight quarters.

Jones Energy expects 2019 earnings growth of 19% year over year.

SemGroup has average positive surprise of 85.4% for the preceding four quarters.

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