ExxonMobil Returns to Venezuela as Israeli Firm Eyes Stake in Venezuelan Oil Producer

Bernstein kept its Outperform rating on ExxonMobil but cut its price target to $186 from $193, a 3.6% reduction. This suggests an 11.6% upside from the Nov 11 close of $166.71. Recent analyst targets for the company range from $162 to $213.

ExxonMobil is evaluating seven areas in Venezuela for potential oil and gas projects under a non-binding agreement with the Venezuelan government and PDVSA. The areas include undeveloped fields, mature assets, and an exploration block, with discussions focused on heavy oil opportunities in the Orinoco Belt. The agreement grants ExxonMobil exclusive rights for one year to negotiate terms and examine data. The company's return faces unresolved ownership questions involving Russian interests.

ExxonMobil has filed a confidential legal challenge to the EU's carbon capture rules, according to the Financial Times. The company initiated arbitration proceedings over the EU's Net-Zero Industry Act, which requires major oil and gas firms to develop CO₂ storage capacity by 2030. Exxon argues the rules impose unrealistic timelines and increase energy costs. The EU is preparing a response. The dispute reflects broader tensions between Brussels and the energy industry over climate regulations.

ExxonMobil is evaluating seven areas in Venezuela for potential energy projects under a non-binding agreement with the Venezuelan government and PDVSA. The deal, signed on Monday, grants Exxon exclusive negotiation rights for one year. The areas include undeveloped fields, mature regions, and an exploration block, with some located in the Orinoco Belt. Exxon's return could benefit from synergies with its operations in Guyana and Trinidad and Tobago.

ExxonMobil (XOM) raised its quarterly dividend 4% to $1.07, extending its streak to 44 years. Chevron (CVX) has raised dividends for 39 years, with a higher 3.5% yield. Both dividends are well-covered by free cash flow, but fiscal 2025 saw thinner coverage. Exxon plans $20B in buybacks for 2027, while Chevron's dividend growth outpaced Exxon's from 2020-2025.

U.S. oil and gas stocks rose Wednesday as crude prices climbed 3% due to Iran tensions. Brent futures gained $2.77 to $94.26, WTI added $2.27 to $88.31. Exxon Mobil (XOM) rose 1.3%, Chevron (CVX) gained 0.85%, and others like Devon Energy and EOG Resources climbed 0.9% to 2%. An ING analyst cited Middle East supply and US-Iran conflict uncertainty as factors.