Exxon (NYSE: XOM) has been appearing in the news quite frequently this week, and whilst the energy company seeks to earn the respect of its growing green investor base in the complex transition to clean energy – Exxon stock opened this morning with a loss of 0.5%.
Exxon announced today the start of its $400 million expansion project for its carbon capture facility in Wyoming – which is already the largest in the world – increasing the carbon captured to roughly 8 million metric tonnes. The landmark facility earned the company a reputation as climate-conscious, wary of the UN’s COP 26 approaching summit. The announcement came shortly after further involvement was agreed in the Acorn carbon capture project in Scotland.Â
Internal re-arrangements earlier this year saw Exxon pivot further towards eco-initiatives; appeasing the ESG-focused investor groups that have worked their way into the board of directors.Â
Yet the expansion of LaBarge isn’t the only talking point. The reassessment of an LNG development in Mozambique could stir up investor sentiment, or maybe it’s the success of its Guyanese off-shore oil refinery that is causing a stutter in the overall projection of climate-friendly practice.
Exxon has had a strong year, and investors should look forward to Axxon as a potentially undervalued stock. With oil prices continuing to shock nations, and carbon-neutrality edging its way further into industrial operations. Whether a clash of values has thrown clean energy bulls of the ball, or whether the market simply hasn’t reacted as expected – Exxon is trading with a daily loss of 0.75% at a price of $63.37.
