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ExxonMobil (XOM) Announces Gulf Coast Chemical Facility Start-Up

Exxon Mobil Corporation XOM and joint venture partner Saudi Basic Industries Corp. (or Sabic) began operations at their petrochemical manufacturing facility in San Patricio County, TX.

ExxonMobil and Saudi Arabia-based chemical firm Sabic invested $10 billion to develop the facility in Portland through their 50/50 joint venture, Gulf Coast Growth Ventures. XOM is the operator at the site.

The Gulf Coast manufacturing facility specializes in producing ethane-derived petrochemicals. It will produce materials suitable for packaging, agricultural film, construction materials, clothing and automotive coolants.The facility involves an ethane steam cracker, with an estimated production capacity of 1.8 million metric tons of ethylene per year. Notably, the ethane steam cracker is intended to be the largest in the world.

The ethylene will be used as feedstock for the two polyethylene units on site. Each unit has a production capacity of 650,000 metric tons per year. Beside this, it can be used in the facility’s monoethylene glycol unit, which can produce 1.1 million metric tons per year.

ExxonMobil and Sabic have an extensive presence in Houston and have collaborated on petrochemical projects for decades. The facility’s construction began in the third quarter of 2019 and created an estimated 6,000 high-paying construction jobs.

ExxonMobil and Sabic developed the chemical facility ahead of time and under budget. The commissioning of the facility will help address the rising demand for performance products globally, while providing significant investment in the U.S. Gulf Coast.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of ExxonMobil have outperformed the industry in the past three months. The XOMstock has gained 13.7% compared with the industry’s 4.8% growth.

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Zacks Investment Research

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Zacks Rank & Other Key Picks

ExxonMobil currently flaunts a Zack Rank #1 (Strong Buy).

Investors interested in the energy sector might look at the following companies that also presently sport a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BP plc BP, based in London, the U.K., is a fully integrated energy company, with a strong focus on renewable energy. BP has a strong portfolio of upstream projects, which has been backing impressive production growth.

BP is expected to see an earnings growth of 19% in 2022. The company announced that before declaring results for the December-end quarter, it intends to execute an additional $1.25 billion of share repurchases. BP continues to anticipate buying back $1 billion worth of shares every quarter, considering Brent crude price at $60 per barrel. On the dividend front, BP projects a hike in the annual dividend per ordinary share of 4% through 2025.

Eni SPA E is among the leading integrated energy players in the world. Its upstream operations involve the exploitation and production of oil and natural gas resources. Eni also engages in refining hydrocarbons and distributing the end products in 71 nations. Apart from providing natural gas, the company generates and sells electricity.

Eni is expected to see an earnings growth of 34% in 2022. The company currently has a Zacks Style Score of B for both Value and Growth. Eni beat the Zacks Consensus Estimate three times in the last four quarters and missed once, with an earnings surprise of 0.43%, on average.

Equinor ASA EQNR is one of the premier integrated energy companies in the world, with operations spreading across 30 countries. Over the years, EQNR has developed its expertise to expand upstream operations outside of conventional offshore resources to the prolific shale oil and gas plays.

Equinor is expected to see an earnings growth of 17% in 2022. EQNR’s key strategy is to capitalize on the renewable energy space and align operations with the Paris Climate Agreement. Thus, to combat climate change, the company is investing actively in renewable energy projects, comprising power generation from solar and wind energy. Equinor expects to boost its production capacities from renewables to 4-6 GW by 2026.


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