The recent rise in gas prices in the United States likely has oil stock Exxon Mobil (NYSE:XOM) paying attention. But what it doesn’t have is eyes on a new acquisition that might give it an edge in the field. Though Exxon’s not thinking acquisitively, it’s still got investors sending shares up fractionally in Monday afternoon’s trading.
Reports note that Exxon is currently in a running battle with rival Chevron (NYSE:CVX) over Guyana, where substantial oil assets are on the table and waiting to be picked up. Thus, reports emerged that suggested Exxon was considering buying Hess (NYSE:HES) in a bid to gain an advantage in getting Guyanese oil. However, Exxon CEO Darren Woods noted that wasn’t the case, and Exxon doesn’t have much interest in acquiring Hess. In fact, Chevron is the one planning to pick up Hess, and Exxon isn’t going to try to beat Chevron to the punch.
What Else Doesn’t Exxon Want? ESG.
For a while, ESG—environmental, social, and corporate governance—was a guiding principle on Wall Street. However, it’s come under fire in recent days, and Exxon is dumping fuel on that particular fire itself. Woods recently discussed the need for oil, noting that fossil fuels were going to be part of the world’s energy needs, like it or not, and the idea that oil can simply, rapidly, and seamlessly be replaced with green alternatives is pretty much a pipe dream. Forget about net zero by 2050, says Woods; people don’t want to pay for it.
Is Exxon Mobil a Buy or Sell?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on XOM stock based on 11 Buys and six Holds assigned in the past three months, as indicated by the graphic below. After a 13.55% rally in its share price over the past year, the average XOM price target of $125.31 per share implies 11.6% upside potential.
