Exxon's Texas LNG Project Faces Major Setback As Lead Contractor Files For Bankruptcy
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation (NYSE:XOM) and Qatar Energy's Texas LNG project faces a major setback as lead contractor Zachry Holdings files for Chapter 11 bankruptcy. The $10 billion Golden Pass LNG project is now in jeopardy due to cost challenges and payment issues. Exxon, which owns a 30% stake, aims to support the project through completion. XOM shares are down 1.81%. Investors can also gain exposure via Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE).
May 22, 2024 | 4:19 pm
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NEGATIVE IMPACT
iShares U.S. Energy ETF, which includes Exxon Mobil, may experience short-term volatility due to the setback in Exxon's Texas LNG project.
IYE, which holds Exxon Mobil, could see some negative impact due to the uncertainty surrounding Exxon's Texas LNG project.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Energy Select Sector SPDR Fund, which includes Exxon Mobil, may see short-term volatility due to the setback in Exxon's Texas LNG project.
XLE, which holds Exxon Mobil, could see some negative impact due to the uncertainty surrounding Exxon's Texas LNG project.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Exxon Mobil's Texas LNG project faces a major setback as lead contractor Zachry Holdings files for Chapter 11 bankruptcy. This could delay the project and impact Exxon's future LNG production plans.
The bankruptcy of Zachry Holdings, the lead contractor for Exxon's Texas LNG project, introduces significant uncertainty and potential delays. This is likely to negatively impact Exxon's stock in the short term.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100