2024-06-27 11:06:53 ET
Summary
- Exxon Mobil and partners had a record-breaking profitable fiscal year in Guyana with the widest margins in the industry for a major project.
- Discovering oil in offshore Guyana took years and lots of money. There were many failures before there was oil found.
- The Sixth FPSO project, Whiptail, is underway and expected to be in production in fiscal year 2027, contributing to a future total production of 1.5 million BOD.
- The Hess interest is becoming more valuable with every FPSO that begins production, and really with every approved FPSO project.
- Competitively advantaged assets that last a long time are very similar to a competitive moat.
Exxon Mobil ( XOM ) and partners reported to the government of Guyana a very profitable fiscal year, as follows:
New government data shows Guyana's agreement with the Exxon-led consortium (XOM) that includes Hess (HES) and Cnooc ( OTCPK:CEOHF ) generated $6.33B for the partners last year.
The combined net margin for the three companies totaled 56%, greater than the 49% earned by chipmaker Nvidia in its most recent fiscal year.
Read the full article on Seeking Alpha
For further details see:
Exxon Mobil: Gaining A Competitive Edge With Cost Advantaged Assets