Exxon Mobil shares gain for a second straight session on Tuesday, company inks 20-year agreement with Zhejiang Energy of China

April 24, 2019 7:07 am

Exxon Mobil Corporation (XOM) announced earlier this week that it had inked a 20-year sale and purchase agreement, which envisages the supply of liquefied natural gas (LNG) to Zhejiang Provincial Energy Group of China. However, the oil and gas major did not disclose any price or timing details.

Exxon Mobil shares closed higher for a second consecutive trading session in New York on Tuesday. The stock went up 0.58% ($0.48) to $83.38, after touching an intraday high at $83.50, or a price level not seen since November 8th 2018 ($83.75).

Shares of Exxon Mobil Corporation have risen 22.28% so far in 2019 compared with a 17.03% gain for the benchmark index, S&P 500 (SPX).

In 2018, Exxon Mobil Corp’s stock went down 18.47%, thus, it underperformed the S&P 500, which registered a 6.24% loss.

Under the terms of the deal, Exxon Mobil Corp is to provide 1 million tonnes of LNG annually to China’s Zhejiang Energy.

According to a report by Reuters, a CNY 9 billion ($1.34 billion) receiving terminal for the ultra-chilled fuel is being established in Wenzhou (in the province of Zhejiang) by provincial government-backed Zhejiang Energy.

The terminal is expected to offer annual handling capacity of 3 million tonnes of LNG and is likely to begin operations as early as 2022. Beijing-based oil and gas company Sinopec will be Zhejiang Energy’s partner in the project.

“The gas supplies to the Zhejiang firm will come from Exxon’s portfolio production outside the U.S.,” Chen Zhu, managing director at Beijing-based oil and gas consulting firm SIA Energy, was quoted as saying by Reuters.

In 2018, Exxon Mobil had announced that it would begin delivering the LNG in the early 2020s.

According to CNN Money, the 19 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $84.00, with a high estimate of $105.00 and a low estimate of $75.00. The median estimate represents a 0.74% upside compared to the closing price of $83.38 on April 23rd.

The same media also reported that 14 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 8 – as “Buy”. On the other hand, 2 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 – $81.16
R1 – $81.80
R2 – $82.47
R3 – $83.11
R4 – $83.75

S1 – $80.49
S2 – $79.85
S3 – $79.18
S4 – $78.51

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