Exxon Mobil shares fall for a fifth straight session on Thursday, company abandons liquefied natural gas export project in Canada

December 21, 2018 10:56 am

Exxon Mobil Corporation (XOM) said on Thursday that it had withdrawn its Canadian WCC liquefied natural gas export project from an environmental assessment, thus, indicating that it has abandoned the project.

Exxon Mobil shares closed lower for a fifth consecutive trading session in New York on Thursday. It has also been the steepest daily loss since October 11th. The stock went down 3.04% ($2.15) to $68.63, after touching an intraday low at $68.06, or a price level not seen since August 24th 2015 ($66.55).

Shares of Exxon Mobil Corporation have retreated 17.95% so far in 2018 compared with a 7.71% drop for the benchmark index, S&P 500 (SPX).

In 2017, Exxon Mobil’s stock went down 7.33%, thus, it again underperformed the S&P 500, which registered a 19.42% return.

About 15 million tonnes of liquefied natural gas per year were expected to be produced via the WCC LNG export project in British Columbia, Canada. The project also envisaged a further production expansion of up to 30 million tonnes of LNG per year.

It was intended to include liquefaction and storage facilities for natural gas, loading facilities as well as third-party pipeline facilities.

Canada’s Environmental Assessment Agency has been examining the project since February 2015, Reuters reported.

“After careful review, Exxon Mobil and Imperial (Oil Resources Limited) have withdrawn the WCC LNG project from the environmental assessment process,” a spokesperson for Exxon Mobil was quoted as saying by the same media.

“We remain committed to our Canada operations and to ensuring the safe and reliable delivery of oil and gas to our customers,” the person said.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $87.00, with a high estimate of $115.00 and a low estimate of $70.00. The median estimate represents a 26.77% upside compared to the closing price of $68.63 on December 20th.

The same media also reported that 13 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 7 – as “Buy”. On the other hand, 4 analysts had recommended selling the stock.

Weekly Pivot Levels

By using the traditional method of calculation, the weekly levels of importance for Exxon Mobil Corporation (XOM) are presented as follows:

Central Pivot Point – $76.19
R1 – $77.59
R2 – $79.59
R3 – $80.99
R4 – $82.38

S1 – $74.19
S2 – $72.79
S3 – $70.79
S4 – $68.78

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