Exxon Mobil Rakes In Billions from Guyana Oil Deal, Net Margin Tops Chip Giant: Report
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corporation (NYSE:XOM) and its partners, including Hess Corporation (NYSE:HES) and CNOOC, have generated $6.33 billion from their oil venture in Guyana, with Exxon reporting a net profit of $2.9 billion. The consortium's net margin of 56% surpasses that of NVIDIA Corporation (NASDAQ:NVDA). The venture's revenue rose by 23% in 2023, and production is expected to increase with the addition of three more vessels. Investors can gain exposure to Exxon via Energy Select Sector SPDR Fund (NYSE:XLE) and iShares U.S. Energy ETF (NYSE:IYE).
June 25, 2024 | 1:22 pm
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NEUTRAL IMPACT
NVIDIA's net margin of 49% was surpassed by the 56% net margin of the Exxon-led consortium in Guyana.
While NVIDIA's net margin was mentioned for comparison, the news primarily focuses on the oil sector, making the impact on NVIDIA neutral.
CONFIDENCE 80
IMPORTANCE 50
RELEVANCE 50
POSITIVE IMPACT
Hess Corporation earned $1.88 billion from the Guyana oil venture, contributing to the consortium's overall success.
Hess's substantial earnings from the Guyana venture indicate strong performance and potential for future growth.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 80
POSITIVE IMPACT
Investors can gain exposure to Exxon Mobil's success via the iShares U.S. Energy ETF.
IYE's performance is likely to benefit from Exxon's strong earnings and high net margin from the Guyana oil venture.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Investors can gain exposure to Exxon Mobil's success via the Energy Select Sector SPDR Fund.
XLE's performance is likely to benefit from Exxon's strong earnings and high net margin from the Guyana oil venture.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 70
POSITIVE IMPACT
Exxon Mobil's Guyana oil venture generated $6.33 billion, with a net profit of $2.9 billion and a net margin of 56%, surpassing NVIDIA's 49%.
Exxon's significant profit and high net margin from the Guyana oil venture are positive indicators for the company's financial health and future earnings potential.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100