ExxonMobil (XOM) Receives Award Worth $77M Against Venezuela
Exxon Mobil Corporation XOM received an award of $77 million in a long-term claim against Venezuela.
In 2007, ExxonMobil’s oil projects Cerro Negro and La Ceiba were expropriated by Venezuela, which resulted in extensive international arbitration cases.
The federal court will commence an auction process to sell shares in PDV Holding, one of the parents of Venezuela-owned oil refiner Citgo Petroleum, to repay claims against Venezuela.
ExxonMobil previously had not engaged in the case brought by miner Crystallex International, which attracted several other companies seeking to attach their claims.
In recent years, creditors, who owed billions of dollars from expropriations and defaults by Venezuela, moved to U.S. courts to implement court rulings and arbitration awards against the country.
A minimum of 20 companies filed summaries to participate in the auction starting in October. The court received claims totaling some $10 billion.
ExxonMobil mentioned three awards that it has received since 2007, which are $179 million for La Ceiba, $1.4 billion for Cerro Negro, and $9 million for production and export curtailments at Cerro Negro. Part of the claims has been paid over time.
Price Performance
Shares of ExxonMobil have outperformed the industry in the past three months. The stock has gained 3.8% compared with the industry’s 2.1% growth.
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Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector might look at the following companies that presently carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Crestwood Equity Partners LP CEQP projects an adjusted EBITDA of $780-$860 million for this year.
In the past three months, Crestwood’s shares have risen 4.5%. The Zacks Consensus Estimate for CEQP’s 2023 and 2024 earnings per share is pegged at $1.56 and $1.96, respectively.
Dril-Quip Inc. DRQ is valued at more than $950 million. In the past three months, its shares have risen 14.8%.
The Zacks Consensus Estimate for Dril-Quip’s 2023 and 2024 earnings per share is pegged at 27 cents and 64 cents, respectively.
Evolution Petroleum EPM is worth $320 million. In the past three months, its shares have risen 29.4%.
The Zacks Consensus Estimate for EPM’s 2023 and 2024 earnings per share is pegged at $1.11 and $1.08, respectively.
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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
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