Yahoo Finance ExxonMobil (XOM) Resumes Joliet Refinery After 3-Week Outage
ExxonMobil Corporation XOM, a U.S. energy major, has initiated the restart of several units at its Joliet, IL, refinery following a three-week outage caused by a power failure. The 251,800-barrel-per-day (bpd) facility, which was shut down in mid-July due to a storm-induced power outage, produces approximately 9 million gallons of gasoline and diesel daily.
During the outage, 16 units, including a vacuum distillation unit and a catalytic cracker unit, were adversely impacted. According to media reports, the sudden shutdown required careful assessment to determine if any damage had occurred to the refinery’s infrastructure.
The Joliet refinery’s outage had a notable effect on the oil market, particularly on the discount of heavy crude from Canada to West Texas Intermediate (WTI). The facility is a major consumer of Canadian heavy crude, and the shutdown widened the price discount. However, with the refinery now in the process of restarting, the price difference has begun to narrow. It decreased to around $13 per barrel from $15, in anticipation of increased demand.
The U.S. Environmental Protection Agency issued an emergency waiver last week to alleviate fuel shortages in four states impacted by the supply disruption due to the refinery's closure. The resumption of the Joliet refinery is expected to ease these shortages and stabilize the regional fuel market.
Zacks Rank & Key Picks
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SM Energy Company SM, Northern Oil and Gas, Inc. NOG and Hess Corporation HES. While SM Energy currently sports a Zacks Rank #1 (Strong Buy), Northern Oil and Gas and Hess carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
The Zacks Consensus Estimate for SM’s 2024 EPS is pegged at $7.09. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
Northern Oil and Gas’ core operations are focused on three leading basins of the United States — the Williston, Permian and the Appalachian. The upstream operator uses a unique nonoperating business model, which helps it to lower costs and increase cash flow.
The Zacks Consensus Estimate for NOG’s 2024 EPS is pegged at $5.18. The company has a Zacks Style Score of A for Value. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Hess operates primarily in two areas — the Bakken shale and the Stabroek project offshore Guyana. It is currently in the process of being acquired by supermajor Chevron in an all-stock deal worth $53 billion. HES currently has a Growth Score of A.
The Zacks Consensus Estimate for 2024 and 2025 EPS is pegged at $10.97 and $12.55, respectively. The company has witnessed upward earnings estimate revisions for 2024 in the past 30 days.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
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Northern Oil and Gas, Inc. (NOG) : Free Stock Analysis Report
