U.S. Markets open in 7 hrs 49 mins

ExxonMobil (XOM) Decides to Develop Argentina's Oil Block

Zacks Equity Research
While higher y/y contribution from the U.S Land unit is likely to fuel Helmerich and Payne's (HP) fiscal Q3 earnings, tepid performance from Offshore and International Land units may ail results.

Exxon Mobil Corporation XOM recently announced its decision to develop an oil project in Argentina.  The long-term project will be conducted in the Bajo del Choique-La Invernada block and the energy firm estimates production of 55,000 oil equivalent barrels on a daily basis from it over the next five years.

ExxonMobil has an operatorship interest of 90% in the project. The remaining interest belongs to Gas y Petróleo del Neuquén.

ExxonMobil will be operating 90 wells to develop the oil project which will employ a central production facility. The produced oil will be transported through the Oldeval pipeline to refineries and export facilities.

This is the first phase development of the block and if successful, the company might consider investing in the second phase. ExxonMobil expects the development’s second phase to produce 75,000 oil equivalent barrels every day.

Investors should know that ExxonMobil’s decision to progress with the project, spreading across 99,000 acres, follows its successful Neuquén pilot venture. Stringent regulations have slowed operations of ExxonMobil in Argentina. Since the regulations have been hindering investments by foreign firms in the country’s energy market, Argentina, in a bold move a month ago, granted permits to several companies for exploring the country’s hydrocarbon reserves in 18 sites.

Headquartered in Irving, TX, ExxonMobil is an integrated energy firm and currently carries a Zacks Rank #3 (Hold). Meanwhile, a few better-ranked players in the energy sector are Apache Corporation APA, Ecopetrol S.A. EC and Anadarko Petroleum Corporation APC. Apache and Anadarko carry a Zacks Rank #2 (Buy) while Ecopetrol sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Apache has average positive earnings surprise of 6.6% for the last four quarters.

Ecopetrol is likely to witness earnings growth of 25.3% through 2019.

Anadarko Petroleum has average positive earnings surprise of 6.6% for the last four quarters.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce ""the world's first trillionaires,"" but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Ecopetrol S.A. (EC) : Free Stock Analysis Report
 
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Anadarko Petroleum Corporation (APC) : Free Stock Analysis Report
 
Apache Corporation (APA) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research