Exxon Mobil Corporation XOM, the oil and gas supermajor, has concluded the purchase of a floating production, storage, and offloading (FPSO) vessel from SBM Offshore. The FPSO Prosperity, working for ExxonMobil’s Payara field offshore Guyana, was acquired through the transaction.
While ExxonMobil has gained ownership of the vessel, SBM Offshore is responsible for its operations and maintenance activities. The transaction involves a total consideration of $1.23 billion in cash. The transaction was closed before the maximum lease term of the FPSO expired. The lease is set to expire in November 2025.
SBM Offshore has mentioned that the FPSO unit has been on hire since November 2023. It began production at XOM’s Payara field starting Nov. 14, 2023. The Payara development was the third oil project being developed in the prolific Starbroek Block offshore Guyana. SBM Offshore will carry out operations and maintenance for FPSO Prosperity until 2033 under an integrated operations and maintenance model. This approach is aimed at leveraging the extensive knowledge and experience of both SBM Offshore and ExxonMobil to manage the FPSO’s operations.
The net cash proceeds from the deal will be primarily used to repay project financing worth $0.9 billion. The FPSO Prosperity is one of the first vessels of its kind to have received the SUSTAIN-1 notation from the American Bureau of Shipping. This recognizes the vessel’s sustainability in terms of its design, operational excellence and documentation procedures.
XOM’s Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, The Williams Companies, Inc. WMB and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and FuelCell Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Williams Companies is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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Energy is the backbone of our economy. It’s a multi-trillion dollar industry that has created some of the world’s largest and most profitable companies.
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Williams Companies, Inc. (The) (WMB) : Free Stock Analysis Report
Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
FuelCell Energy, Inc. (FCEL) : Free Stock Analysis Report
Archrock, Inc. (AROC) : Free Stock Analysis Report
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