Latest news with #ExxonMobil
Yahoo
an hour ago
- Business
- Yahoo
Geopolitical Chaos Paves Way for ExxonMobil, Chevron, and ConocoPhillips to Capitalize
Oil prices paused their recent climb this week as tensions between Israel and Iran appear to be easing, and crucially, the Strait of Hormuz remains operational. However, given that both parties have already violated the terms of the U.S.-led ceasefire, it would be premature to assume that lasting stability will be achieved in the region. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter With the Middle East remaining a potential flashpoint, investors may want to stay prepared for renewed volatility in energy markets. In this context, established energy leaders such as ExxonMobil (XOM), Chevron (CVX), and ConocoPhillips (COP) offer a strategic way to maintain exposure to potential upside in oil prices amid geopolitical uncertainty. These three energy giants could be the key to navigating volatility while gaining exposure to a potential oil price shock that would significantly boost earnings and revenues, despite its detrimental impact on international trade and consumer prices. For many income-focused investors, ExxonMobil is a core holding. Its massive daily output of around 4 million barrels makes it one of the most reliable names in energy. Furthermore, its diversified portfolio, ranging from upstream exploration in places like Guyana to downstream refining, means it is not just banking on crude prices remaining high. Recent moves, such as its $59.5 billion acquisition of Pioneer Natural Resources last year, have also significantly increased its Permian Basin output, positioning it to produce low-cost shale oil even if prices decline, as we saw this past week. Recently, Exxon has been vocal about the Israel-Iran tensions, with CEO Darren Woods noting the Strait of Hormuz's critical role in global oil flows, as approximately one-third of seaborne crude oil passes through it. If that chokepoint gets squeezed if tension re-escalates, Exxon's global supply chain could face hiccups, but its ability to redirect through pipelines, such as Saudi Arabia's to the Red Sea, should give it an edge. Regardless, with a 42-year track record of uninterrupted annual dividend increases, Exxon has demonstrated its ability to navigate even the most challenging times in the sector, all while maintaining a reliable and growing dividend. Currently, most analysts are bullish on XOM stock. The stock has a Moderate Buy consensus rating, based on nine Buy and six Hold ratings assigned over the past three months. No analyst rates the stock a sell. XOM's average stock price target of $123.40 implies ~13% upside over the next twelve months. Chevron produces around 3 million barrels per day, but what really sets it apart is its balanced strategy. Its Gulf of Mexico operations and Tengiz project in Kazakhstan keep the oil flowing. At the same time, its $53 billion acquisition of Hess Corporation last year added Guyana's high-margin Stabroek block to its arsenal. Moreover, beyond oil, Chevron is investing in renewables like hydrogen and carbon capture, which could help cushion it against long-term energy shifts. The Israel-Iran ceasefire has calmed oil markets, but Chevron is set to benefit again from higher oil prices if tensions peak, while today's LNG deal with Energy Transfer (ET) shows the energy giant is doubling down on gas exports, a smart hedge if you can me in case crude takes a hit. It's worth noting that Chevron is also less exposed to Strait of Hormuz risks than pure Gulf producers, thanks to its global footprint and pipeline access, such as the UAE's Fujairah terminal. On Wall Street, Chevron stock carries a Moderate Buy consensus rating based on 10 Buy, six Hold, and two Sell ratings. CVX's average stock price target of $159.50 implies almost 11% upside potential over the next twelve months. ConocoPhillips is the scrappy underdog of the trio, with a heavy focus on U.S. shale and unconventional plays. Its $22.5 billion acquisition of Marathon Oil last year strengthened its positions in the Permian and Eagle Ford, enhancing its low-cost production capacity. Boasting about 2.3 million barrels per day, COP is leaner than Exxon or Chevron but quick to ramp up output when prices climb. That makes it an ideal option for those who want to bet on short-term oil price spikes. The Israel-Iran conflict hasn't, of course, directly impacted Conoco's U.S.-centric operations; however, a Strait closure could still send global prices soaring, and Conoco will be ready to capitalize on the opportunity if tensions resume. Further, its Alaskan Willow project, slated to add 180,000 barrels per day by 2029, demonstrates that management is committed to long-term oil production (long oil). In my view, COP's high-quality assets make it a prime pick if Middle East volatility pushes Brent above $80 again. ConocoPhillips is currently covered by 18 Wall Street analysts, most of whom hold a bullish outlook. The stock carries a Strong Buy consensus rating with 16 analysts assigning a Buy, and only two a Hold rating over the past three months. COP's average price target of $113.50 suggests approximately 26% upside potential over the next twelve months. The Israel-Iran ceasefire may have taken some heat out of oil prices, but expecting long-term stability feels premature. ExxonMobil, Chevron, and ConocoPhillips each bring something unique to lean on for those who want to remain long oil: Exxon's global muscle, Chevron's enduring diversification, and Conoco's shale-fueled agility. With the Strait of Hormuz still a flashpoint and both sides itching to break the truce, these oilers are well-placed to capitalize on any price surges. Substantial dividends and smart plays (from recent acquisitions to bets on alternatives) make them dependable portfolio anchors. And if tensions flare up again in the Middle East, these three could deliver standout gains. Disclaimer & DisclosureReport an Issue Sign in to access your portfolio
Wall Street Journal
4 hours ago
- Business
- Wall Street Journal
The Oil Tycoon and the Philosopher Threatening Big Oil's Carbon Capture Plans
Exxon Mobil, Occidental Petroleum OXY -1.30%decrease; red down pointing triangle and other oil giants are expected to receive billions of dollars of incentives to collect and bury carbon emissions. Texas oil billionaire Ben 'Bud' Brigham and pro-fossil-fuels activist Alex Epstein want to turn off the tap. Brigham, a serial entrepreneur and libertarian from Austin, is urging President Trump and the Republicans who are considering slashing a host of energy incentives to go further and nix tax credits for carbon capture. He says there is no climate disaster on the horizon, and that funneling public money into a nascent technology is a gift to oil behemoths.
American Press
19 hours ago
- Science
- American Press
Local educators present cutting-edge energy-themed research projects
Michael Romine teaches gifted students in grades second through eighth, and algebra and pre-calculus dual enrollment college courses for Jefferson Davis parish schools. (Special to the American Press) The energy at Sowela Technical Community College Oakdale campus on Friday morning was energized as 40 teachers prepared to show off their energy-themed research projects. Over the past week, teachers from Allen Parish and the surrounding school districts participated in the STEM Energy Professional Development Program, a collaboration between the Sowela, Allen Parish School Board, Exxon Mobil, Rice University's Tapia Center and Future Use of Energy in Louisiana (FUEL). The participating teachers are from all disciplines, from high school technology educators to elementary English teachers. They spent their week developing a project on one of four energy-related topics: wind power, solar power, carbon capture sequestration and heat transfer. Led by facilitators from the Tapia Center, the teachers participated in hands-on activities relating to the themes before splitting off into groups to choose one topic to center their project around, all while getting paid. The end result is not only a complete project, but a fully-developed and adaptable curriculum, complete with lesson plans for four lessons, rubrics and every necessary documentation to implement the project in any classroom. Heather Cross is an educator at Fairview High School who teaches gifted courses and middle school English language arts. Like her peers, she was encouraged to sign up for the professional development course by her administrators. She wasn't fully aware of the scope of work she would need to complete at the STEM Energy Professional Development Program Showcase, which she called an 'amazing' experience. Her group developed a project about carbon capture sequestration, with a focus on scientific research. The curriculum will encourage students to research carbon sequestration and form their own scenic-backed opinions. The project culminates into a hands-on model that lets students simulate the process of carbon sequestration. The work done by the teachers is a step to make STEM more accessible and intersectional for students. She said the reality is that STEM education does not have to be expensive or exclusive. Since her group's project is research-based, she will be able to incorporate the lessons into her ELA class by focusing the lessons on research, fact-validation and claim-building. 'You don't have to have the fanciest equipment or spend the most money,' she said. 'With a little bit of innovation and creativity, you can make STEM happen within your classroom.' Mike Butler, public and government affairs manager, ExxonMobil, said STEM is at the core of ExxonMobil's community outreach, and the work of the teachers is 'truly inspirational.' The projects they completed lets students know they, too, can succeed in an industrial STEM field, he said. 'We believe that exposing students to science, technology, engineering and mathematics is a way to inspire these young minds, and that anyone can have a career, a meaningful future.' The program was funded by a $100,000 grant from FUEL, a new state coalition which resulted from a large-scale grant from the National Science Foundation. The goal of FUEL is to compete for and secure $160 million in energy innovation investment in Louisiana over the next 10 years, which is key to the state's future prosperity, said Lacy McManus, director of workforce development, FUEL. Over six months, FUEL has worked to determine which 'levers' need to be pulled to accomplish that goal, and educating the workforce is a priority. 'When it comes to workforce development, every single one of you (teachers) is one of those levers,' she said. 'Our teachers and your understanding of what is happening overall in Louisiana in the energy space, the ability to communicate that back to your students, to your administrators, that is absolutely vital.' Sowela is an institution known for simultaneously developing a trained workforce and employment pipelines for several employment sectors — including industry, one of Louisiana's main economic drivers. But Sowela does more than just provide technical education, said Sowela Chancellor Niel Aispenwall. The college is on a mission to create a culture of continuous learning. 'We also encourage our students not to end with us, continue their education and get as much knowledge as they can.' Michael Romine, who is always seeking opportunities to learn more about incorporating STEM into the classroom, said this program was right up his alley. He teaches gifted students in grades second through eighth, and algebra and pre-calculus dual enrollment college courses for Jefferson Davis parish schools. Over the week, he was able to learn about problem-based learning, where students identify a problem and conceive a solution. 'I've been reading about problem-based learning my whole career, but I never really understood it until this week,' he said. 'They did a fantastic job of developing the programming channels. … I'm already starting to think of other things I can do in the future.' Both Cross and Romane agreed that the STEM Energy Professional Development Program was a unique professional development opportunity. 'Typically professional development presents you with a skill,' Cross said. 'However, with this professional development … it's ready to go. If I want to teach this the first day of school, I can teach this the first day of school.' The ready-to-go curriculum is just one of the benefits, Romane added. The teachers had an opportunity to bond with their peers, network and grow as professionals in an exciting and collaborative space. 'We've got a diverse group of teachers in there. We've got a teacher who taught English now doing science. We've got new teachers. We've got new teachers,' he said. 'It they do something like this again, I'd love to do it again.'
Yahoo
a day ago
- Business
- Yahoo
Exxon Mobil: $55 Brent is Fine; Open to M&A, Including Permian
'Uncertainty' is the word for the oil market today and a single 24-hour snapshot of the price of WTI is an illustration, an Exxon Mobil senior vice president said. 'We've had perhaps the shortest oil spike in the history of the oil markets,' Jack Williams said at a J.P. Morgan energy conference June 24. 'It started on a Sunday evening; ended by Monday morning.' The WTI-August contract on CME Group closed June 20 for the weekend at $74, up from about $68 a week earlier before Israel launched daily attacks on Iranian targets. The U.S. joined in on June 21, dropping bunker-buster bombs onto underground Iranian nuclear infrastructure. The contract resumed trading at 4 p.m. CDT June 22, opening at $78/bbl. The following afternoon on June 23, after Israel and Iran agreed to a cease-fire, the contract fell to $64/bbl, which was the price on June 11. Williams said, 'So I mean, I think it's really hard to predict near term where things are going to go. We have a lot of volatility out there.' Exxon can weather sub-$70 WTI, though, he said. 'We think we're well positioned and ready in that kind of environment." And, of course, if prices improve 'we'll benefit pretty hugely with the production we have going on.' The $470-billion market cap, international and integrated energy major's five-year plan is based on mid-cycle prices of about $65 Brent. Still, at $55 Brent, 'we generate $110 billion of surplus cash after dividends and capex,' Williams said. 'So we certainly can withstand lower pricing and that would be for an extended period of time over that entire period [into 2030].' Exxon Mobil's net debt to capital is 7%. 'So sitting very, very good there.' Some $24 billion of divestments 'got us really down to our fighting weight. So we're in really good shape.' If Exxon varied from its five-year plan, 'it would be because we see a really, really good attractive opportunity in front of us—not because we need to because of market conditions kind of forcing, kind of tying our hands. 'We're, of course, keeping our head up and looking around for opportunities and we'll take advantage of those as they present themselves.' The operator bought Permian Basin pureplay Pioneer Natural Resources in May 2024 for $64.5 billion in stock and debt assumption, picking up 721,000 boe/d, 53% oil. Post-closing results have been surprising—to the upside—Williams said. 'What we didn't factor in enough is the quality of the Pioneer workforce, work processes, what they were doing and the reverse synergies we're going to get from that. 'So we certainly had a pleasant surprise there with the quality of what Pioneer brought to the corporation.' Exxon has increased its estimate of Permian Basin operational savings from the Pioneer deal from $2 billion a year to $3 billion due to synergies. 'I would say that's looking really good, really positive,' Williams said. Meanwhile, though, digesting the Pioneer acquisition hasn't 'boxed us in at all in terms of having too much of the organizational firepower working on that.' Exxon is 'pretty wide open in terms of the ability to do … more acquisitions,' he added. It's looking for deals that are 'one plus one equals three. We're looking for value. We have to be able to add significant value.' Within the Permian Basin, there are small deals to be done too. 'With the Pioneer acreage and our legacy [Permian] acreage, we have a lot of areas where we can do some trades around the edges so we can do real win-wins or some bolt-on acquisitions around the edges … that we bring a lot of value.' Sign in to access your portfolio
CNBC
a day ago
- Business
- CNBC
Exxon Mobil CEO: EU's CSDDD is some of the worst legislation I've seen passed anywhere
Darren Woods, Exxon Mobil chairman and CEO, joins 'Squawk Box' to discuss the recent moves in oil prices, if current prices will stick around and much more.
