Exxon Mobil Approving Fifth Oil Production Project in Guyana, Largest and Most Expensive to Date
January 18, 2023
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The company operates in a range of sectors, including exploration and production, refining, marketing, and petrochemicals. Recently, Alistair Routledge, head of Exxon Mobil ($NYSE:XOM)’s Guyana operations, has confirmed that the company is in the process of approving its fifth oil production project in Guyana. This project, the Uaru oilfield, will be the company’s largest and most expensive to date, with a cost of around $12 billion and a peak output of ~250K bbl/day. This exceeds the $10 billion cost of the fourth project. The Uaru oilfield project features several innovative technologies and approaches. For instance, the project has employed an advanced seismic survey system to obtain more detailed images of the subsurface. The project has also employed new drilling techniques, including hydraulic fracturing, which is expected to increase production efficiency.
Additionally, the project will use advanced technology to monitor production and reduce the environmental impact of operations. Exxon Mobil expects that the Uaru oilfield project will help to further strengthen its presence in Guyana. This will be beneficial for both Exxon Mobil and Guyana as it will bring economic growth and job opportunities to the country. Further, it will help to ensure energy security by providing a reliable source of energy for many years to come. This project is expected to bring significant economic growth and job opportunities for locals, as well as a reliable source of energy for many years to come.
Market Price
The current media coverage of the news is mostly negative. Although the project is expected to be a significant source of revenue for the company, it will also increase its environmental footprint in the region. The news of the project has had an immediate effect on the stock market, as Exxon Mobil stock opened at $113.4 and closed at $112.9, down by 0.2% from its previous closing price of 113.2. This is a relatively small decrease in share price, but it still serves as an indication that investors are wary of the potential risks associated with such an expansive project. Exxon Mobil has put forth a great deal of resources into this project, as it seeks to capitalize on the abundant oil reserves in Guyana. This is a major undertaking for the company, and it will require significant investment in order to ensure its success.
However, the potential rewards for Exxon Mobil can be substantial if the project is successful. Thus far, Exxon Mobil has made significant progress in its efforts to develop oil production in Guyana, and it appears that this latest venture will be no exception. Despite the current negativity in the media coverage, Exxon Mobil remains confident that this project will be beneficial for both itself and the region as a whole. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Exxon Mobil. More…
| Total Revenues | Net Income | Net Margin |
| 386.82k | 51.86k | 13.4% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Exxon Mobil. More…
| Operations | Investing | Financing |
| 76.3k | -11.5k | -38.14k |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Exxon Mobil. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 370.15k | 177.11k | 42.55 |
Key Ratios Snapshot
Some of the financial key ratios for Exxon Mobil are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 14.0% | 54.3% | 18.5% |
| FCF Margin | ROE | ROA |
| 15.4% | 24.6% | 12.1% |
VI Analysis
Investors seeking to invest in a reliable and low risk stock should consider EXXON MOBIL. VI App has analyzed the company’s fundamentals and given it a low risk rating, indicating that it is a safe investment. The app has identified two risk warnings in the income sheet and balance sheet, which investors can access after registering with VI App. Investing in a company means trusting its performance and long-term potential. EXXON MOBIL has demonstrated its ability to consistently generate returns for its shareholders, making it a good option for investors looking for a safe bet. The company’s financial health is strong and it has been able to maintain stable growth in recent years. Its stock price has remained relatively steady over time, which is a sign that the fundamentals of the company are sound. EXXON MOBIL is well-diversified in terms of its product offerings, which helps it remain resilient in the face of economic uncertainty. This also allows the company to maximize its profits by taking advantage of market opportunities as they arise. The company also has an experienced management team that has been able to successfully navigate the changing business environment. EXXON MOBIL is well-positioned to benefit from long-term growth opportunities. Its fundamentals indicate that it is capable of delivering consistent returns to its shareholders while minimizing risk. Investors who are looking for a safe and low-risk stock should consider EXXON MOBIL as a viable option. More…
VI Peers
The oil and gas industry is a highly competitive sector. The largest oil companies in the world, Exxon Mobil Corp, Chevron Corp, BP PLC, and Hess Corp, are all vying for market share. These companies have different strengths and weaknesses, and each is trying to outmaneuver the others in order to gain an advantage.
– Chevron Corp ($NYSE:CVX)
Chevron is an American energy company with a market cap of 313.46B as of 2022. Chevron is engaged in every aspect of the oil, natural gas, and geothermal energy industries, including exploration, production, refining, marketing, and transportation. Chevron also has interests in chemicals, mining, and power generation. Chevron’s return on equity was 16.97% as of 2022.
– BP PLC ($LSE:BP.)
HSBC Holdings plc is a British multinational banking and financial services holding company headquartered in London, United Kingdom. It is the world’s fourth-largest bank by total assets and the largest in Europe with total assets of US$2.374 trillion. HSBC traces its origin to a hong in Hong Kong, and its present form was established in London by the Hongkong and Shanghai Banking Corporation to act as a new group holding company in 1991. The last surviving member of the Hong Kong banking conglomerate, The Hongkong and Shanghai Banking Corporation Limited, was renamed HSBC Holdings plc in May 1999.
As of March 2018, HSBC is organized into four business groups: Commercial Banking, Global Banking and Markets, Retail Banking and Wealth Management, and HSBC Holdings. HSBC has a dual primary listing on the Hong Kong Stock Exchange and London Stock Exchange, and is a constituent of the Hang Seng Index and the UK FTSE 100 Index. As of 6 July 2012, it had a market capitalization of £102.7 billion, the second-largest company listed on the London Stock Exchange, after Royal Dutch Shell. It has secondary listings on the New York Stock Exchange, Euronext Paris, and the Bermuda Stock Exchange.
In 2015, HSBC was investigated by the US Senate for allegedly facilitating money laundering for drug cartels and terrorist groups. The allegations date back to 2002 and HSBC’s involvement with Mexican drug lord Osiel Cárdenas Guillén. On 11 December 2015, HSBC agreed to pay US$1.256 billion to settle the charges.
– Hess Corp ($NYSE:HES)
Hess is a leading international independent energy company engaged in the exploration and production of crude oil and natural gas. Hess has a market cap of $37.9 billion as of 2022 and a return on equity of 29.47%. The company has a long history of success in the oil and gas industry, and its operations are primarily focused in the United States, the United Kingdom, Norway, Denmark, Malaysia, and Indonesia. Hess is committed to providing its shareholders with value through a combination of strong operating performance, disciplined capital management, and a commitment to sustainable development.
Summary
Exxon Mobil is investing in its fifth oil production project in Guyana, which is its largest and most expensive venture to date. Despite the high cost of the project, analysts are optimistic about its potential. The oil and gas giant has a strong track record in developing resources in the region, and the new project is expected to yield positive returns for shareholders.
However, the project has received mostly negative media coverage due to its environmental impact and potential risks. Although investors should be aware of these factors, the long-term prospects for Exxon Mobil in the region remain strong.
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