ExxonMobil Is Eyeing a Potential $8 Billion Bet on Shell's U.S. Chemical Plants. Here's What It Means for XOM Stock.

Shell is seeking buyers for its U.S. chemicals business, valued at up to $8 billion, with potential buyers including ExxonMobil, LyondellBasell, Apollo Global, and Kuwait Petroleum. The sale includes major facilities in Louisiana, Texas, and Pennsylvania. Shell reported second-quarter adjusted earnings of $9.84 billion, more than double the previous year, but is reducing debt and streamlining its portfolio.

ExxonMobil (XOM) and Chevron (CVX) reported strong Q2 earnings, with Chevron reporting $67.20B revenue and a record production, while ExxonMobil posted $14.5B earnings despite production disruptions. Over a decade, Chevron's dividend yield (3.39%) is higher than ExxonMobil's (2.46%), but ExxonMobil has a longer streak of consecutive annual raises (43 years). Chevron's Microsoft deal adds a new revenue stream. Investors must decide between ExxonMobil's durability and Chevron's higher yield.

NNPCL and partners Shell, Esso, and Agip signed addenda to advance the Bonga Southwest/Aparo project, aiming for a $21bn investment. The project could produce 175,000 barrels of oil and 140 million cubic feet of gas daily. NNPCL stated this milestone demonstrates the impact of government reforms in attracting deepwater investments.

Shell is exploring the sale of its U.S. chemicals assets, valued at up to $8 billion, with ExxonMobil, LyondellBasell, Apollo, and Kuwait Petroleum Corporation reportedly interested. The assets include four sites and a major Pennsylvania plant where Shell invested $14 billion. Shell's CEO Wael Sawan aims to divest underperforming assets, and the sale process is ongoing. European chemicals assets may also be sold, though for less.

Shell may sell its U.S. chemicals division for $8 billion, with ExxonMobil, LyondellBasell, Apollo, and Kuwait Petroleum among potential buyers. The division includes four plants producing chemicals for various products. Shell is focusing on oil and gas, having recently acquired ARC Resources for $13.6 billion.

ExxonMobil is deploying automated drilling rigs in the Permian Basin, aiming to transition half of its fleet by 2028. The company plans to increase production by 40% to 2.5 million barrels per day by 2030, focusing on efficiency and safety. Exxon's rival, Chevron, plans to maintain steady production.