Much of the rest of the corporate -- and non-corporate -- world is trying to curb carbon emissions. That includes Exxon’ competitors, such as BP (BP) - Get Report and Royal Dutch Shell (RDS.A) - Get Report.
The emissions would result from Exxon’s $210 billion investment plan, according to internal documents obtained by Bloomberg.
The increased emissions would amount to 21 million metric tons per year.
Morningstar analyst Allen Good is bullish on Exxon.
In August after Exxon’s second-quarter earnings report, he reiterated that “we have long argued, and the historical returns support our contention, that Exxon is the highest-quality integrated overall (operating and assets) and that its downstream and chemicals segments are key differentiators.”
Thus, “it stands to reason it should invest to maximize those advantages. However, integrated oils have a spotty record of delivering on long-dated volume and return targets. Execution risk is thus high. That said, Exxon is one of the better operators and developers in the world, and its plan includes a high portion of operated projects, increasing the chances for success, in our view.”
Good puts fair value for the stock at $74. It recently traded at $33.33, up 1.1%. The shares have dropped 52% this year.
Exxon swung to a second-quarter net loss of $1.1 billion from profit of $3.1 billion in the year-earlier quarter. The covid-19 pandemic prompted government-ordered lockdowns and travel restrictions, hammering energy demand.