Exxon Mobil to exit Russian operations; Shares rise 1.4% pre-market
The multinational oil and gas company Exxon Mobil Corp. (NYSE: XOM) is considering ending its oil and gas operations in Russia and halting further investment following Russia’s invasion of Ukraine, Reuters said citing a statement from the company. The company’s operations in Russia are worth more than $4 billion.
Under the plan, Exxon will cease operating three major oil and gas production facilities on Sakhalin Island and halt investment in a proposed multi-billion dollar LNG facility at the site. It manages the facilities on behalf of a consortium of Russian, Indian and Japanese companies.
The company said, “We deplore Russia’s military action that violates Ukraine’s territorial integrity and endangers its people.
Exxon is the latest Western company to abandon its Russian operations. Since Russia invaded Ukraine on February 24, several companies, including Shell (New York Stock Exchange: SHEL), BP (New York Stock Exchange: BP), Apple (NASDAQ: AAPL) and Boeing (NYSE: BA), withdrew from the transcontinental country.
Baytown hydrogen production facility
In addition, Exxon plans to set up a hydrogen production, carbon capture and storage facility at its Baytown, Texas site to reduce its carbon emissions.
ExxonMobil Low Carbon Solutions President Joe Blommaert said, “Hydrogen has the potential to dramatically reduce CO2 emissions in vital sectors of the economy and create valuable low-emission products that support life. modern.
The facility will have a daily hydrogen production capacity of one billion cubic feet. Additionally, the project’s carbon capture infrastructure will be able to transport and store up to 10 million metric tons of CO2 per year.
By using hydrogen at its Baytown olefins plant, Exxon would reduce the facility’s Scope 1 and 2 CO2 emissions by up to 30%. The company aims to achieve net zero greenhouse gas emissions by 2050.
Texas-based Exxon is engaged in the exploration, development and distribution of oil, gas and petroleum products. Its brands include Exxon, Mobil, Esso and ExxonMobil Chemical.
XOM stock was trading up 1.4% in Wednesday’s pre-market session at the time of writing.
On Feb. 28, Bank of America Securities analyst Doug Leggate maintained a buy rating on the stock and raised the price target from $105 to $110 (39% upside potential).
Overall, the stock has a moderate buy consensus rating based on 9 buys and 9 takes. The average XOM price target of $85.17 implies an upside potential of 7.6%. The shares have gained 49% over the past year.
Reviews of bloggers
Data from TipRanks shows that financial bloggers’ views are 94% bullish on Exxon, compared to the industry average of 72%.
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