🤯 Have you seen our AI stock pickers’ 2024 results? 84.62%! Grab November’s list now.Pick Stocks with AI

ExxonMobil Ends Production From Sable Offshore Gas Project

Published 01/03/2019, 10:47 PM
Updated 07/09/2023, 06:31 AM
XOM
-
SPGI
-
NG
-
BCEI
-
UNT
-
TCP
-

Exxon Mobil Corporation (NYSE:XOM) recently announced the permanent closure of production activities in the Sable Island Offshore Energy Project. However, the largest publicly traded energy firm will continue to explore the resources.

The integrated player added that with the shutdown of the offshore gas project, the company will carry on operations associated to decommissioning and plugging of wells through 2019.

In the past years, production from the development — located off the coast of Nova Scotia — had been on the decline. In fact, few years back, ExxonMobil recognized that the productive life of the offshore natural gas development had almost reached its end. Investors should know that the output of raw gas from the project had been steadily declining after hitting peak production of 482 million cubic feet per day (MMcf/D) in December 2001, per S&P Global (NYSE:SPGI) Platts Analytics. The source added that the average daily production from the project plunged to 50 MMcf/D during the fourth quarter of 2018.

Headquartered in Irving, TX, ExxonMobil is involved in all phases of energy businesses — upstream, midstream and downstream businesses.

Over the last two years, ExxonMobil has been investing majority of its capital in upstream operations. The integrated energy player has the same plans for 2019. With the oil price scenario likely to remain weak till mid-2019, the company’s massive capital allocations are unlikely to generate handsome returns in the near term.

As a result, the stock carries a Zacks Rank #5 (Strong Sell). Meanwhile, a few better-ranked players in the energy space are Unit Corporation (NYSE:UNT) , Bonanza Creek Energy, Inc. (NYSE:BCEI) and TC PipeLines, LP (NYSE:TCP) . While TC PipeLines carries a Zacks Rank #2 (Buy), Bonanza and Unit sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

TC PipeLines beat the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 15.6%.

Bonanza will likely post earnings growth of 57.3% through 2019.

Unit Corporation surpassed the Zacks Consensus Estimate in three of the last four quarters, the average positive earnings surprise being 21.3%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>



TC PipeLines, LP (TCP): Free Stock Analysis Report

Unit Corporation (UNT): Free Stock Analysis Report

Exxon Mobil Corporation (XOM): Free Stock Analysis Report

Bonanza Creek Energy, Inc. (BCEI): Free Stock Analysis Report

Original post

Zacks Investment Research

Latest comments

Loading next article…
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.