Exxon Mobil Corporation (XOM)

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ExxonMobil (XOM), KBR Collaborate for Advanced PDH Technology
By: Zacks Equity Research | March 29, 2022

Exxon Mobil Corporation (XOM) will team up with engineering firm KBR, Inc. (KBR) to make considerable progress in the propane dehydrogenation (“PDH”) technology used to convert propane into propylene, which is involved in many petrochemical applications.

ExxonMobil develops and applies state-of-the-art technologies to help address the world’s growing energy requirements. Once combined with KBR's K-Pro PDH technology, ExxonMobil's new proprietary catalyst technology will be able to convert propane into propylene. The companies believe that the combined technology could result in financial savings compared with the existing PDH technologies. The combined technology is expected to boast significantly reduced energy consumption.

KBR is a global engineering, construction and services firm, supporting the market segments of global energy and international government services. The collaboration with ExxonMobil is beneficial for the company’s K-Pro customers and existing K-Pro licensees, who could have the potential to increase capacity and reduce operating expenses by upgrading to the new catalyst. The combined technology offering adds to KBR's existing portfolio of innovative and sustainable solutions.

The partnership will significantly reduce the time to commercialize ExxonMobil’s next-generation catalyst for PDH. The latest collaboration puts together more than 50 years of ExxonMobil's leadership in specialty catalyst development and KBR's expertise in technology development, plant design and construction. Notably, the companies did not reveal any financial details of the agreement.

Company Profile & Price Performance

Headquartered in Irving, TX, ExxonMobil is one of the leading integrated energy companies in the world.

Shares of ExxonMobil have outperformed the industry in the past six months. The XOM stock has gained 44.3% compared with the industry’s 34.5% growth.



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Zacks Rank & Key Picks

ExxonMobil currently carries a Zack Rank #3 (Hold).

Investors interested in the energy sector might look at the following companies that presently flaunt a Zacks Rank #1 (Strong Buy). You can see the complete list of today's Zacks #1 Rank stocks here.

Canadian Natural Resources Limited (CNQ) is one of the largest independent energy companies in Canada, which engages in the exploration, development and production of oil and natural gas. As of 2021-end, CNQ had 12.813 billion oil-equivalent barrels in total proved reserves.

Canadian Natural's earnings for 2022 are expected to increase 35.3% year over year. CNQ raised its dividend by 28% recently, reflecting strength in its cash flows. The company is counted as a 'Canadian Dividend Aristocrat' with an attractive yield. It has a solid track record of dividend hikes, increasing the payout for 22 consecutive years.

DCP Midstream Partners, LP (DCP) is a leading energy infrastructure firmwith a diversified portfolio of gathering, logistics, marketing and processing assets across nine states. DCP is currently valued at $7.2 billion.

DCP Midstream's earnings for 2022 are expected to surge 139% year over year. For the year ended Dec 31, 2021, DCP generated $122 million of excess free cash flow, 44% higher than the 2020 level of $85 million. This high level of excess free cash flow reflects the firm’s tremendous strength in operations.

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