Why Exxonmobil’s (Xom) Stock Has Increased by 74.3% In a Year

Exxon Mobil Corporation NYSE:XOM

Exxon Mobil Corporation (NYSE:XOM)

In the last 30 days, Exxon Mobil Corporation (NYSE:XOM) has seen increases in its 2022 and 2023 profit estimates.

The company, which presently has a Zacks Rank #2 (Buy), has increased 74.3% over the past year, outperforming the industry’s composite stocks’ 45.1% growth.

Aspects that Favor the Stock

The price of West Texas Intermediate crude has increased significantly over the past year and is currently trading at about $90 per barrel. ExxonMobil’s (NYSE:XOM) upstream businesses benefit from the rising oil prices because the company has a pipeline of important projects in the Permian, the most productive basin in the US.

The Permian Basin contains a sizable inventory of well sites, which has improved ExxonMobil’s production prospects. Additionally, the company made a number of exceptional oil discoveries at the Stabroek Block, located offshore of Guyana. The region has recoverable resources worth 11 billion oil-equivalent barrels, according to ExxonMobil.

ExxonMobil profits from its high refinery utilization, much like upstream companies. In the first quarter of 2023, the refinery’s capacity will increase by 250,000 barrels per day as a result of the Beaumont Refinery development. ExxonMobil’s (NYSE:XOM) capacity for U.S. Gulf Coast refining will rise by roughly 17% as a result of the development.

ExxonMobil is firmly in favor of making the switch to a future with less emissions. Over the next six years, it intends to invest more than $15 billion in programs aimed at cutting emissions. Notably, XOM’s new emission-reduction programs included four significant opportunities for carbon capture and storage.

Future capital returns to shareholders and strong balance sheet maintenance are priorities for the company. ExxonMobil (NYSE:XOM) has $39.5 billion in long-term debt as of June 30, 2022, and total cash and cash equivalents of $18.9 billion. When compared to other integrated majors, the company has substantially reduced debt exposure.

As a result, ExxonMobil, one of the most alluring players in the integrated energy sector, is set to experience significant growth in the near future.

Additional Important Picks

The following businesses, which now carry a Zacks Rank #1, are worth considering for investors with an interest in the energy sector (Strong Buy). The complete list of today’s Zacks #1 Rank stocks is available here.

Corporation EQT One of the largest natural gas producers in the US, EQT is a pure-play Appalachian explorer. It anticipates a free cash flow of $2.2-$2.5 billion in 2022, an increase from the $934.7 million reported in the previous year.

In the last 30 days, EQT Corp has seen increases in its 2022 and 2023 earnings estimates. The company now has a Momentum Zacks Style Score of A and a Growth Zacks Style Score of B. Earnings growth of 323.9% is anticipated for EQT in 2022.

Liquefied natural gas is the main business activity of Cheniere Energy Inc. LNG. LNG has announced its first quarterly dividend, which will be worth 33 cents per share, which is wonderful news for shareholders. The decision to start a dividend by the corporation is a result of the fundamentals significantly improving.

In the last 30 days, Cheniere Energy has seen increases in its profit estimates for 2022 and 2023. The company now has an A for Growth Zacks Style Score. In 2022, earnings growth of 308.7% is anticipated for LNG.

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About the author: I'm a financial freelance writer keen on the latest market developments which i articulate with writing stock updates, press releases and investor news. As a person i live by the code of a sustainable human existence and a carbon neutral universe. When off work, i spend time reading non-fiction books, flying drones, and outdoor cycling.