Exxon Mobil Corp (NYSE:).’s proposal to reactivate its idle Santa Ynez Unit (SYU) offshore platforms via a 2022 trucking plan has been turned down on Wednesday. The decision was made by US District Judge Dolly M. Gee and the Santa Barbara County Board of Supervisors, including Board Chair Joan Hartmann. The refusal was based on safety concerns, climate crisis considerations, and potential risks of oil spills.
The SYU has remained non-operational since a catastrophic pipeline rupture occurred in 2015. The repair process is estimated to continue for an additional five years. Exxon’s proposition entailed the annual deployment of 25,000 tanker trucks on Highway 101 and Route 166. This plan sparked significant community opposition due to the associated risks.
Despite the setback, Exxon Mobil Corp., with a market cap of 479.18B USD as per InvestingPro data, remains a prominent player in the Oil, Gas & Consumable Fuels industry. The company has consistently increased its earnings per share and has raised its dividend for 40 consecutive years, according to InvestingPro Tips. Furthermore, Exxon’s stock generally trades with low price volatility, which could be an attractive feature for conservative investors.
The case is officially known as Exxon Mobil Corp. v. Santa Barbara County Board of Supervisors in the Central District of California. The rejection marks a significant setback for Exxon in its efforts to resume operations at the SYU offshore platforms.
Notably, Exxon’s P/E ratio stands at 9.55, indicating it is trading at a low price relative to near-term earnings growth. The company’s revenue for LTM2023.Q2 was 367.98B USD, with a Gross Profit Margin of 34.38%. However, it’s worth noting that revenue growth has been slowing down recently.
InvestingPro also highlights that Exxon’s cash flows can sufficiently cover interest payments and the company operates with a moderate level of debt. This financial stability, combined with a dividend yield of 3.13%, could make the company an appealing choice for income-focused investors.
For those interested in the company’s future performance, five analysts have revised their earnings upwards for the upcoming period, suggesting optimism about the company’s profitability. For more insights, you can find additional tips at InvestingPro’s page dedicated to Exxon Mobil Corp. here.
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