ExxonMobil Corporation XOM has received the authorization to export liquefied natural gas to non-free trade agreement countries from its Alaska LNG terminal. The proposed project received conditional authorization from the U.S. Department of Energy to export up to 20 million metric tons per year of LNG for 30 years. Earlier, the company had permission to export only to countries with U.S. trade agreements.
The project would include a liquefaction facility, an 800-mile pipeline, up to eight natural gas compression stations and at least five take-off points for in-state gas delivery. It also includes a gas treatment plant on Alaska's North Slope.
ExxonMobil is the world’s largest publicly traded oil company, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses. Approximately four-fifth of Exxon Mobil’s earnings come from its operations outside the U.S.
ExxonMobil is one of the world’s best-run integrated oil companies given its track record of superior returns on capital employed. The energy giant has long been a core holding for investors seeking a defensive name with continued dividend growth. ExxonMobil is fairly active in its investment program.
The strength of ExxonMobil lies in its balanced operations, strong financial flexibility, steady improvement in efficiency and cost control. The company’s efforts to build an unconventional resource portfolio both in North America and overseas are aimed at increasing production through a wider exposure to large energy resources with long reserve life and low field declines. However, we are skeptical about the company’s near-term performance due to its muddled refining fortunes.
ExxonMobil currently carries a Zacks Rank #3 (Hold). For investors interested in the oil and gas sector, some better-ranked stocks are Pembina Pipeline Corporation PBA, LRR Energy LP LRE and WPX Energy Inc. WPX. All of these carry a Zacks Rank #1 (Strong Buy).
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