ExxonMobil (XOM) Announces Bluefin Oil Discovery in Guyana
Exxon Mobil Corporation XOM has made a groundbreaking announcement, revealing a significant oil and gas discovery in the prolific Stabroek block offshore Guyana.
The new find, dubbed Bluefin, marks the company's first announced discovery in the South American country for 2024, promising to further boost its oil production capabilities.
Located in the southeastern part of the Stabroek block, the Bluefin well was drilled in 4,244 feet of water by the Stena Drillmax drillship. It encountered approximately 197 feet of hydrocarbon-bearing sandstone, signaling a substantial addition to ExxonMobil’s resources in the area. However, the company has not yet estimated the recoverable reserves from this particular discovery.
The Stabroek block, spanning an impressive 6.6 million acres, has been a hotspot for ExxonMobil since its major discovery there in 2015. This area is reported to contain more than 11 billion barrels of recoverable oil and gas, making it a key asset in the company's portfolio. The Bluefin discovery adds to the more than 30 finds since 2015 in the Stabroek block.
ExxonMobil began crude production in Guyana in 2019. The company’s current production levels have reached around 650,000 barrels per day, with plans to double this to 1.2 million barrels per day by 2027. Such growth would elevate Guyana to the production levels of OPEC member Angola, signaling a major shift in the global oil landscape.
In addition to its oil ventures, ExxonMobil is exploring the possibility of establishing its first offshore natural gas production in Guyana. This initiative, close to the maritime border with Suriname, represents the seventh project by the consortium in Guyana.
The Bluefin discovery and ExxonMobil’s ambitious development plans in Guyana exemplify the significant role that the South American nation is beginning to play in the international oil and gas industry. As ExxonMobil continues to develop these resources, the world will undoubtedly watch Guyana transform into a major player in the energy market.
Price Performance
ExxonMobil shares have outperformed the industry in the year-to-date period. The stock has gained 13.4% compared with the industry’s 6.1% growth.
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Zacks Ranks & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies mentioned below. These two companies presently sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
RPC Inc. RES derives strong and stable revenues from diverse oilfield services that include pressure pumping, coiled tubing and rental tools. In 2023, the company paid out $34.6 million in dividends, whereas share repurchases totaled $21.1 million.
The Zacks Consensus Estimate for RPC’s 2024 and 2025 earnings per share (EPS) is pegged at 88 cents and $1.13, respectively. The company has a Zacks Style Score of A for Growth and Value.
Murphy USA Inc. MUSA is a leading independent retailer of motor fuel and convenience merchandise in the United States.
The Zacks Consensus Estimate for MUSA’s 2024 and 2025 EPS is pegged at $25.58 and $25.36, respectively. The company has a Zacks Style Score of B for Value, Growth and Momentum. It has witnessed upward earnings estimate revisions for 2024 and 2025 in the past 30 days.
Global Partners GLP is a leading operator of gasoline stations and convenience stores. Over the past 30 days, GLP has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
The Zacks Consensus Estimate for Global Partners’ 2024 and 2025 earnings per share is pegged at $3.90 and $4.47, respectively. GLP currently has a Zacks Style Score of A for Value, and B for Growth and Momentum.
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