How Targa's ExxonMobil Deal Could Extend Its Permian Growth Runway

ExxonMobil received approval for its Rose carbon-capture project in Texas, allowing storage of up to 53 million tons of CO2 over 13 years. The Railroad Commission of Texas voted 2-1 in favor, with dissent from one commissioner. The project aims to reduce emissions and is among the largest of its kind.

On September 17, Brent crude oil was around $103/barrel, WTI near $100. Chevron (CVX) reported Q2 earnings of $12.1B, with 20% year-over-year production growth. Chevron, Exxon (XOM), and ConocoPhillips (COP) are highlighted as strong energy sector investments due to their financial strength and production capabilities.

ExxonMobil has started a carbon capture project at Nucor's Louisiana facility, aiming to store 800,000 metric tons of CO2 annually. This is the company's third CCS project for a third party and part of its expanding Gulf Coast network, which could reduce emissions by over 100 million metric tons yearly. The project supports Nucor's carbon-reduction goals and follows regulatory approval for ExxonMobil's Rose carbon storage project.

Wood Group won a $200 million, five-year contract with ExxonMobil PNG for construction services on the PNG LNG project. The work involves maintaining and upgrading existing infrastructure, including plants and pipelines, to ensure reliable LNG supply to Asia. Over 200 Wood personnel will perform various technical services, building on a decade-long relationship with ExxonMobil PNG.

Stock futures rose Thursday, reversing Wednesday's selloff after the Fed's first rate hike in three years. Key events: Diamondback Energy's largest shareholder sold $2B in shares, ExxonMobil nears a deal in Venezuela, and Generac Holdings surged after a $2.4B Amazon deal. Lennar cut its home delivery target, citing housing market pressures. Brent crude fell below $105/barrel.

ExxonMobil is nearing a preliminary agreement to return to Venezuela, nearly 20 years after leaving. The deal, potentially signed this month, could involve investments in oil fields holding over 50 billion barrels. Venezuela aims to attract foreign capital to revive its oil industry. Exxon's return would mark a reversal from 2007, when its assets were nationalized. Discussions are ongoing, with no final agreement yet. According to the Wall Street Journal, the deal would initially allow Exxon to