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ExxonMobil Takes Over Offshore Oil & Gas Resources in Egypt

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Exxon Mobil Corporation (XOM - Free Report) recently announced the acquisition of oil and gas resources, spreading across more than 1.7 million acres, located off the coast of Egypt. Of the total acquired resources, 1.2 million acres are in the North Marakia offshore block, while 543,000 acres are situated in the North East El Amriya Offshore block.

In both the blocks, the leading integrated energy player will have operating interests of 100%. The company expects operations to commence in 2020. Notably, the takeover of seismic data is part of ExxonMobil’s operations.

ExxonMobil has primarily been involved in marketing fuels, lubricants and specialties in Egypt since 1902, representing the company’s leading downstream presence in the nation. Hence, with the award, the company has diversified its portfolio of energy business in Egypt.

Roughly 10 months back, the energy major had made world-class natural gas discoveries off the coast of Cyprus. Hence, with the purchase of upstream acres in Egypt, ExxonMobil has strengthened its presence in exploration operations in Eastern Mediterranean. Investors should know that the significant reserve base in Eastern Mediterranean resources has every potential to supply huge gas volumes to Europe, thereby lowering the continent’s excessive reliance on Russian gas.

Headquartered in Irving, TX, ExxonMobil currently carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space are Murphy USA Inc (MUSA - Free Report) , California Resources Corporation (CRC - Free Report) and CNX Resources Corporation (CNX - Free Report) . While Murphy USA sports a Zacks Rank #1 (Strong Buy), California Resources and CNX Resources carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Murphy USA’s earnings beat the Zacks Consensus Estimate in three of the prior four quarters.

California Resources’ earnings beat the Zacks Consensus Estimate in three of the past four quarters.

CNX Resources’ earnings surpassed the Zacks Consensus Estimate in two of the prior four quarters. It has a positive earnings surprise of 34.8%, on average, for the trailing four quarters.

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