ExxonMobil Holdings Corporation (NYSE:XOM) stock was trading mostly flat on Friday as the energy giant announced a $12.5 billion investment in its latest offshore Guyana development.
ExxonMobil Advances $12.5 Billion Guyana Project
On Thursday, ExxonMobil announced a final investment decision for its Longtail development after securing government and regulatory approvals.
The project marks the eighth development in Guyana’s Stabroek block and is expected to begin production in 2030.
Longtail will feature a floating production vessel capable of processing 1.2 billion cubic feet of gas daily and producing up to 250,000 barrels of condensate per day.
The development will include approximately 45 subsea wells.
ExxonMobil currently produces about 900,000 barrels of oil daily from four Stabroek projects. Production is expected to exceed 1 million barrels per day after the Uaru project starts in the fourth quarter.
See More:
Top Value Stocks
Strong Earnings Support Analyst Outlook
ExxonMobil recently reported third-quarter adjusted earnings of $4.23 per share, beating the $4.08 analyst estimate.
Revenue reached $113.16 billion, topping expectations of $103.10 billion.
Following the results, Wells Fargo analyst Sam Margolin maintained an Equal-Weight rating and raised his price forecast from $182 to $189. Evercore ISI analyst Stephen Richardson maintained an Outperform rating and increased his price forecast from $185 to $200.
More recently, Bernstein maintained an Outperform rating but lowered its price forecast to $186 on Nov. 12. Freedom Broker raised its price forecast to $162 on Nov. 6 while maintaining a Hold rating. Citigroup increased its price forecast to $175 on Nov. 4 while maintaining a Neutral rating.
The stock currently carries a Buy consensus rating with an average price forecast of $184.83.
Technical Indicators Signal Longer-Term Strength
ExxonMobil shares remain above their 50-day, 100-day and 200-day simple moving averages (SMAs), indicating a positive longer-term trend.
However, the stock trades 2.6% below its 20-day SMA of $175.37, suggesting weaker near-term momentum.
The relative strength index (RSI) stands at 49.35, indicating neutral momentum.
Key resistance sits near $188.50, while support is around $155.50.
Benzinga Edge Rankings reinforce the positive longer-term outlook, assigning ExxonMobil a momentum score of 87.98 and a value score of 77.31.
XOM Price Action
XOM Price Action: ExxonMobil Holdings shares were down 0.19% at $169.46 at the time of publication on Friday, according to Benzinga Pro data.
Image via Shutterstock
