It was good news, as far as ExxonMobil (NYSE:XOM) shareholders were concerned. Shares ticked up fractionally in Tuesday afternoon’s trading as Exxon showed off a set of new plans that should improve the bottom line going forward in both oil and other energy products.
First, ExxonMobil came out conventionally with a plan to play to its strengths. It’s set to launch the Hammerhead project, an oil project in Guyana that would prove to be its seventh so far. It will deliver quite a bit of oil as well, with the Hammerhead project set to deliver as much as 180,000 barrels per day by itself by 2029. The project does depend on government approval, though, but with that kind of money on the table, it’s a pretty safe bet the Guyanese government will go for it.
Interestingly, though, the Hammerhead project will have the smallest output of any Guyana project under Exxon’s banners. This isn’t, however, to be interpreted as a sign that Guyana is running short of oil, reports noted.
Meanwhile, in Other Energies
ExxonMobil, as we know, is also looking to branch out into other energy markets besides oil, and it’s made a pretty substantial step on that front just recently. It arranged to offer up a hefty slug of lithium—as much as 100,000 metric tons of the stuff—to SK On, an electric vehicle battery maker operating out of South Korea.
The agreement is non-binding, and terms were kept close to the vest, but with lithium retailing for about $12.60 a kilogram, or about $12,600 a metric ton, it’s a pretty big deal. There were probably some discounts for a bulk purchase, which this clearly was, but SK On won’t be getting out of this without at least a nine-figure bill.
Is Exxon a Buy, Sell, or Hold?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XOM stock based on 10 Buys and five Holds assigned in the past three months, as indicated by the graphic below. After a 13.24% rally in its share price over the past year, the average XOM price target of $135.40 per share implies 18.64% upside potential.
