Exxon Mobil shares plunge to oversold territory at $111.42

In the United States, Goldman Sachs analyst Neil Mehta has assigned a Neutral rating to Exxon Mobil Corporation XOM, with a target price set at $125 per share. This analysis coincides with the company's recent unveiling of its Corporate Plan to 2030, which aims to boost additional earnings by $20 billion and increase cash flow by $30 billion within the same timeframe. Exxon Mobil is planning to enhance synergies from its acquisition of Pioneer by 50%, targeting over $3 billion annually, as well as growing its new business earnings to reach $3 billion. The company also disclosed its commitment to investing up to $30 billion in lower-emission technologies and has specified its capital expenditure plans. Exxon plans to allocate between $27 billion to $29 billion in capex for 2025, along with an annual investment range of $28 billion to $33 billion for the period from 2026 to 2030. Importantly, Exxon is looking to reduce its reinvestment rate down to 40%. The analyst emphasized that Exxon highlighted its differentiated position in the Permian Basin following the Pioneer acquisition, particularly with the use of non-sand proppants that are designed to improve overall well performance. Within the next year, Exxon is set to deploy its advanced recovery technology in over 200 wells, although there remain concerns surrounding supply chain constraints that could affect the timing of this deployment. Furthermore, while Goldman Sachs had initially estimated a production volume of 1.5 million barrels per day (bpd) for Guyana by 2030, Exxon has provided a more conservative forecast of 1.3 million bpd. As Exxon operates, it continues its focus on utilizing advanced seismic technologies and enhancing its high-performance computing capabilities to improve resource recovery and create additional value. The company maintains close collaboration with the Guyanese government regarding gas development projects, and analysts will closely track management's updates pertaining to ongoing LNG projects, particularly the notable Golden Pass project, due to historical challenges related to execution and timing. Overall, investor estimates for Exxon’s earnings per share suggest increasing profitability, with projected EPS of $7.91 in 2024, $8.35 in 2025, and $9.71 in 2026, indicating a potential for greater returns and performance in the coming years.