Energy Name Surges Despite Leaked Plans to Grow C02 Output By 17%

Exxon's yearly emissions could rise 17% by 2025, according to leaked documents

Assistant Editor
Oct 5, 2020 at 3:31 PM
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The shares of Exxon Mobil Corporation (NYSE:XOM) are up 1.4% at $33.43 at last check, after Bloomberg reported that leaked internal documents revealed the blue-chip oil producer plans on increasing its annual carbon-dioxide emissions. Bloomberg elaborated by citing the documents, shedding light on the fact that Exxon's $210 billion long-term investment plan shows yearly emissions rising 17% by 2025 -- nearly the entire output of Greece. This comes at pressing time, with Exxon Mobil's sectors peers Shell and BP having committed to curbing emissions, and scientists and world leaders giving less than a decade to reverse climate change

XOM has had a rough go of it on the charts lately. In fact, the equity has fallen 52.1% in 2020, and its 10-day moving average has continually acted as a layer of resistance since mid-August. Exxon stock looked like it had a shot at toppling the trendline on August 11, when it notched its highest close since June. However, it quickly fell off, and has shed more than 25% since then.

XOM Chart October 5

Meanwhile, analysts are approaching Exxon stock with caution. In fact, 13 out of the 17 analysts in coverage sport a tepid "hold" rating, with two at a "strong buy" and the remaining two on the opposing end with a "strong sell." Meanwhile, the consensus 12-month target price of $46.11 is an 37.9% premium to current levels.  

Lastly, Options could be the way to go, for those looking to speculate on Exxon stock's next move. The equity's Schaeffer's Volatility Index (SVI) of 40% ranks in the 24th percentile of readings from the past 12 months. This means short-term options are attractively priced right now, from a volatility standpoint. 

 

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