XOM - Is ExxonMobil's $20 Billion Writedown Bad News for LNG Stocks?
Earlier this month, oil giant ExxonMobil (NYSE: XOM) announced that it was going to take a massive $20 billion writedown . A substantial portion of that writedown is tied to a big investment the company made in natural gas a number of years ago that worked out terribly. At the same time, the company's management has decided to prioritize its capital investments going forward, focusing on oil assets it thinks will deliver the best returns.
On the Dec. 2 edition of "The Wrap" on Motley Fool Live , host Jason Hall took a look at this big move and its implications for American LNG export stocks, specifically Tellurian (NASDAQ: TELL) and NextDecade (NASDAQ: NEXT) . The two are still years away from generating any revenue. Both are counting on big investors, including oil majors like ExxonMobil, to help fund construction of their export facilities. Will they be able to raise the money? Check out the video below for more.
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Is ExxonMobil's $20 Billion Writedown Bad News for LNG Stocks?