- Exxon stock continues to surge higher on a great start to 2022
- Truist analyst reverts ‘sell' rating in a ‘shareholder friendly' change of heart
- Exxon Purchases 49.9% stake of biofuels company Biojet AS in eco-move
Overall, it’s been a fantastic year for oil and gas behemoth Exxon Mobil, with XOM stock showing an increase of around 65% over 2021. There are numerous bullish arguments for Exxon – strength in crude oil and natural gas prices should make for a formidable Q421, a sense of company confidence as dividends increase, analyst price changes, and the list doesn’t end there…
Today marked another promising move for the company; announcing the purchase of a 49.9% stake in Norweigan biofuels company Biojet AS. On the news, XOM stock opened in Tuesday’s trading with a gain of 1.2%, still teetering around the two-year highs that were broken last week following Truist analyst Neal Dingmann’s change of heart; raising the company’s rating and target price from sell in a ‘shareholder friendly’ move.
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However, the critical information that investors should be looking towards is Exxon’s green endeavor. Global pressures revolving around climate change are forcing energy sectors to introduce renewable, eco-friendly strategies. Exxon’s deal allows the purchase of as much as 3M barrels of Biojet’s biofuels annually – for use in passenger vehicles and heavy trucks.Â
Oil and gas kings that have long been perpetrators of damaging fossil fuels are starting to find their feet in a changing market. So much so, back in March 2021, a hedge fund forced Exxon to add new board members to facilitate this critical shift.Â
Exxon Mobil had an impressive year last year; and by the looks of it, things are set to continue in the same fashion. Investors will be looking towards Exxon’s Q4 release as the next major announcement for the company.Â