ExxonMobil’s Golden Pass LNG Project Gets Three-Year Extension Amidst Contractor Bankruptcy
Exxon Mobil Corporation (XOM) and Qatar Energy’s Golden Pass LNG plant have received a much-needed boost. The plant, situated at the Sabine Pass site, has been granted a three-year extension to complete the Golden Pass LNG facility. This news comes as a relief following the earlier bankruptcy filing by the lead contractor, Zachry Holdings, earlier this year.
The Golden Pass LNG project is one of two major U.S. LNG facilities poised to significantly increase the country’s LNG supply capacity within the next year. The extension is attributed to delays caused by the contractor’s bankruptcy. Zachry Holdings, whose project share was valued at a hefty $5.8 billion, cited cost challenges due to a change order and billing schedule discrepancies. Despite ongoing negotiations with Golden Pass LNG for additional funding, the company ultimately declared bankruptcy.
ExxonMobil’s Recent Activities: Exploration Success and Earnings Update
Beyond the Golden Pass LNG project, ExxonMobil has been making headlines for its exploration successes. The company, along with HELLEniQ ENERGY, recently completed Phase 1 of offshore Crete exploration, gathering an impressive 7,789 km of seismic data. However, ExxonMobil also acknowledged that fluctuating oil prices are expected to impact its third-quarter upstream earnings, leading to a projected decline of $(1.0) billion to $(0.6) billion compared to the previous quarter.
ExxonMobil Stock Outlook for 2024: Technical Analysis and Investment Strategies
Analysts on Wall Street typically use earnings growth and fundamental research to value and forecast stock performance. But many traders rely on technical analysis to predict share price trends. Some investors look to trends to project future stock movement. One popular method utilizes moving averages and trend lines to gauge long-term stock prospects.
Investors often consider a stock above its moving average a bullish signal, suggesting potential upward price movement. By extending the trend line, they can estimate future price levels if the trend persists. According to Benzinga Pro, ExxonMobil’s 200-day moving average currently sits at $113.54, which is below the current share price of $119.72. This position is considered bullish by many traders.
Traders generally view a stock above its moving average as a positive indicator, while a drop below the average is seen as a negative signal. Trend lines can be helpful tools for investors to make educated guesses about future stock price movements, assuming prevailing conditions remain stable.
Current Price Action:
As of the last check on Friday, XOM shares are up 0.22% at $119.85.
Investing in ExxonMobil:
Investors seeking exposure to ExxonMobil can consider ETFs such as EA Series Trust Strive U.S. Energy ETF (DRLL) and SPDR Select Sector Fund – Energy Select Sector (XLE).