Yahoo Finance ExxonMobil (XOM) Contemplates Divesting LNG Offshore Terminal
Exxon Mobil Corp XOM is planning to sell its majority stake in the Rovigo LNG plant offshore Italy, as part of its strategy to get rid of non-core assets, per media reports. The company sharpened its focus on its core assets and continued investments in advantaged growth projects in the Permian and Guyana, where output increased more than 30% year over year.
ExxonMobil’s subsidiary, ExxonMobil Italiana Gas S.r.l., owns more than 70% of the terminal, also known as Adriatic LNG; Qatar Energy owns 22%; and Italy's Snam owns roughly 7%. Nevertheless, Snam has the right of first refusal in the event a partner decides to divest.
Per media reports, ExxonMobil mentioned that although it was verifying market interest, it had neither identified a buyer nor made any decision about a prospective sale.
According to the company, any transaction would not affect its LNG imports into the Adriatic LNG terminal or its interest in serving as a natural gas supplier in the Italian and European markets.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks for investors interested in the energy sector are CVR Energy CVI and Valero Energy Corporation VLO, each sporting a Zacks Rank #1, and Murphy USA Inc. MUSA, carrying a Zacks Rank #2 (Buy).
CVR Energy, a diversified holding company with its main office in Sugar Land, TX, is an independent refiner and marketer of high value transportation fuels. Over the past seven days, CVI has seen an upward revision in earnings estimates for 2023 and 2024.
Valero Energy is a global manufacturer and marketer of transportation fuels and petrochemical products. With 15 refineries spread across Canada, the United States and the United Kingdom, it has a daily refining capacity of 3.1 million barrels. Over the past 30 days, VLO has seen an upward revision in earnings estimates for 2023 and 2024.
Murphy USA operates stations close to Walmart supercenters and sells low-cost, high-volume fuel. This helps the company to get a lot more business than its competitors. Another significant competitive advantage for the firm is its access to product distribution centers and pipelines, which helps control costs in the intensely competitive retail sector. Over the past 30 days, MUSA has witnessed an upward revision in earnings estimates for 2024.
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