ExxonMobil CorporationXOM is reportedly holding discussions for the acquisition of a refining and petrochemical complex in Singapore. The company, through this buyout, aims to enhance the production of fuel and chemical in Asia. However, no deal has been inked to date.
The U.S oil giant is in talks with the receiver for Singapore-based Jurong Aromatics Corporation Pte Ltd. regarding the purchase of the Jurong Island properties of the latter. Per Reuters, Jurong Aromatics Corporation placed itself into receivership in Sep 2015, and Exxon Mobil is likely to acquire the bankrupt company.
The accord, if successful, will increase Exxon Mobil's paraxylene capacity to 1.8 million tons, annually.
Irving, TX-based ExxonMobil is the world's largest publicly traded oil company, engaged in oil and natural gas exploration and production, petroleum products refining and marketing, chemicals manufacture, and other energy-related businesses.
ExxonMobil is the world's best run integrated oil company based on its track record of high return on capital employed. It has long been a core holding for investors seeking defensive as well as continued dividend growth.
Despite its strong fundamentals, ExxonMobil's shares underperformed the Oil & Gas-International Integrated industry in the last six months. During the aforesaid period, the stock lost 6.1% compared with 0.8% decrease for the broader industry.
Some better-ranked players in the energy sector include Antero Resources Corporation AR , Pioneer Natural Resources Company PXD and Energy Transfer Equity, L.P. ETE . Antero Resources and Pioneer Natural sport a Zacks Rank #1 (Strong Buy) while Energy Transfer carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Antero Resources' earnings beat the Zacks Consensus Estimate in all the prior four quarters with an average positive earnings surprise of 239.10%.
Pioneer Natural's earnings surpassed the Zacks Consensus Estimate in three of the prior four quarters with an average positive earnings surprise of 21.86%.
Energy Transfer is expected to witness year-over-year earnings growth of 42.12% in 2017.
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