The good news about oil stock Exxon Mobil (XOM) is that it is not resting on its laurels, content to merely pump out the same amount of oil. It is currently looking to expand one major project around Guyana right now. But this did not sit well with investors for some reason, who sent shares slipping modestly downward in Wednesday afternoon’s trading.
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Exxon Mobil is at the tip of the spear on this one, but there is, reports note, an entire consortium of producers looking to get new environmental permits out of the Guyanan government for an eighth project in the region. This one will focus on natural gas generation that is not immediately connected to oil production, as well as one to explore another well in its substantial territory.
Exxon Mobil has already been active in the production field, having bolstered two of the three floating facilities it has in operation down there. It also plans to bring a fourth vessel online, which would boost its total production to close to 940,000 barrels per day. The good news here is that the Guyanan government has been actively pressing Exxon Mobil for more natural gas production, as it wants the material for electrical power generation.
Colorado Lawsuit
But the picture is not totally rosy for Exxon Mobil. The Colorado Supreme Court just heard arguments yesterday about plans for Boulder County to sue Exxon Mobil for “…allegedly misleading the public about the threats presented by climate change.” This case goes all the way back to 2018, and looks for Exxon to pay damages for things like floods and wildfires. How the court plans to pin those charges directly on Exxon, meanwhile, is unclear.
Exxon has been trying to get the case moved to federal court pretty much since its inception, but the Supreme Court turned down a hearing for the case. And the Boulder District Court turned down attempts to dismiss the case as well. Now, the Colorado Supreme Court is taking it on, and should it not revoke the district court ruling, then the trial may be about to begin.
Is Exxon Mobil Stock a Good Buy Right Now?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XOM stock based on 14 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 9.64% rally in its share price over the past year, the average XOM price target of $133.88 per share implies 23.88% upside potential.
