Exxon Mobil Corporation XOM, the U.S.-based oil and gas giant, and its consortium partners, including Hess Corporation and CNOOC, have sought environmental permits from Guyana regarding new exploration projects in the region. ExxonMobil is gearing up for its eighth project in Guyana, known as the Longtail project, which will be the first one to produce gas that is not tied to oil production. Further, the energy giant has requested permits for the exploration of the Hamlet well in the prolific Starbroek Block offshore Guyana.

The company plans to boost its production capacity in Guyana to 940,000 barrels per day (bpd) this year. The production is anticipated to increase after the company completes upgrading two of its three floating oil production units and the fourth floating production vessel arrives in the region. The entire oil production in Guyana is managed by the ExxonMobil-led consortium. The consortium plans to ramp up production levels in the South American nation to more than 1.7 million bpd by the end of 2029.

Exxon Mobil’s fourth project in Guyana, Yellowtail, is scheduled to come onstream soon after the arrival of the floating production storage and offloading (FPSO) facility, constructed by SBM Offshore. The other projects, namely Uaru, Whiptail and Hammerhead, are expected to start between 2026 and 2029. The Longtail project is expected to raise the consortium’s production capacity by adding up to 250,000 bpd of crude and 1 billion cubic feet of gas per day.

The consortium also recently concluded an appraisal of its gas reserves that was long due. The study should help them evaluate the total amount of resources available for production accurately. A company spokesperson noted that the data gathered during the study will be fed into geological models and reservoir models. These models are intended to help XOM understand the kind of development that might be feasible for these resources. The findings from ExxonMobil’s study could also support a large development contract awarded to Fulcrum LNG by Guyana for the construction of the nation's first LNG project.

XOM’s Zacks Rank and Key Picks

XOM currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks from the energy sector are SM Energy SM, Sunoco LP SUN and Archrock Inc. AROC. SM Energy currently sports a Zacks Rank #1 (Strong Buy), while Sunoco and Archrock carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.

SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The increased production, combined with the favorable oil price environment, is expected to positively contribute to its bottom line.

Sunoco LP is one of the largest distributors of motor fuel in the United States. The partnership distributes fuel to independent dealers, commercial customers, convenience stores and distributors. Its current distribution yield is greater than that of the industry's composite stocks, providing unitholders with consistent returns.

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.

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