Exxon Mobil Corporation (XOM, Financial) has entered a significant agreement with Calpine Corporation, a leading U.S. electricity producer specializing in natural gas. This collaboration focuses on transporting and permanently storing up to 2 million metric tons of carbon dioxide annually from Calpine’s Baytown Energy Center, a cogeneration facility situated near Houston.
This initiative is part of the Baytown Carbon Capture and Storage Project, which aims to capture the facility's CO2 emissions. This step is intended to facilitate the continuous supply of low-carbon electricity to customers in Texas, as well as providing steam to nearby industrial operations. Through this agreement, ExxonMobil now counts Calpine as its sixth carbon capture and storage (CCS) customer, which raises the company's total contracted CO2 storage capacity to approximately 16 million metric tons annually.
The captured CO2 from Calpine's facility will be integrated into ExxonMobil's extensive CO2 pipeline network. Notably, this system, which stands as the largest of its kind globally, is strategically located along the U.S. Gulf Coast. It plays a crucial role not only in enhanced oil recovery efforts but also in the permanent sequestration of carbon dioxide.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 25 analysts, the average target price for Exxon Mobil Corp (XOM, Financial) is $124.54 with a high estimate of $144.00 and a low estimate of $93.00. The average target implies an upside of 16.06% from the current price of $107.31. More detailed estimate data can be found on the Exxon Mobil Corp (XOM) Forecast page.
Based on the consensus recommendation from 28 brokerage firms, Exxon Mobil Corp's (XOM, Financial) average brokerage recommendation is currently 2.3, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Exxon Mobil Corp (XOM, Financial) in one year is $95.29, suggesting a downside of 11.2% from the current price of $107.31. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Exxon Mobil Corp (XOM) Summary page.
