Can ExxonMobil's Permian Growth Keep Driving Upstream Momentum?

Shell is considering the sale of its US chemical assets, potentially worth up to $8 billion. ExxonMobil, LyondellBasell, Apollo, and Kuwait Petroleum have shown interest. The assets include four facilities producing chemicals for various industries. Shell aims to focus on upstream oil and gas production.

ExxonMobil has allocated about $4 billion for local content in Mozambique's Rovuma LNG project, according to the Confederation of Business Associations. The project, led by ExxonMobil in partnership with ENI and CNPC, is expected to generate $150 billion in revenue over 30 years. A $250 million pipe contract was recently awarded, signaling project progress. The CTA urges Mozambican firms to meet ExxonMobil's standards to qualify for tenders.

Morgan Stanley raised its price target for ExxonMobil (XOM) to $177, citing strong refining margins and growth prospects. The stock has gained 34% this year, with Q2 earnings showing record profits and high cash flow. However, geopolitical risks and normalization of energy prices could impact future performance.

Shell is receiving bids for its US petrochemical business, potentially worth $8 billion, from rivals like LyondellBasell and ExxonMobil, as well as private equity firms. The sale may include Shell's ethylene and polyethylene complex in Pennsylvania and other sites. LyondellBasell has a history of acquiring new plants at lower prices, while ExxonMobil is already in related businesses. Kuwait Petroleum may be interested in Shell's ethylene oxide derivatives.

Exxon Mobil (XOM) shares dropped 1.1% to $162.20 as crude prices fell 3%, erasing the Iran premium. Q2 earnings were $14.5B, with $17.2B in free cash flow, and $9.4B returned to shareholders. The stock is 28.55% above its GF Value estimate, potentially vulnerable to sustained oil price declines.

Exxon Mobil (XOM) and LyondellBasell (LYB) are among potential bidders for Shell's (SHEL) US chemicals assets, valued at up to $8B. Other interested parties include Apollo and Kuwait Petroleum Corporation. The portfolio includes four facilities, with Shell seeking to divest weaker-performing operations. Shell is also reviewing European chemicals assets for potential sales.