Why ExxonMobil stock jumped today

A profitable partnership with a large state-owned oil company can increase the profits of oil and gas titanium.

What happened

ExxonMobil shares (XOM 6.22%) rose by 6.2% on Tuesday after the energy giant struck a deal with QatarEnergy to increase liquefied natural gas (LNG) production.

So that
Under the terms of the agreement, ExxonMobil will receive a 6.25% stake in the Qatar-based North Field East project worth $29 billion. The cooperation aims to help increase the capacity to produce LNG in the Middle East country from 77 million tons to 110 million tons by 2026.
“We look forward to working closely with ExxonMobil to implement this global project and fulfill our commitment to provide people with cleaner energy in all corners of the world,” said QatarEnergy CEO Saad Sherida Al-Qaabi in a press release.

The deal is at a time when governments around the world are seeking natural gas from reliable suppliers after Russia cut supplies to a number of European countries in the wake of the war with Ukraine. Qatar and ExxonMobil hope to help meet the growing need for a stable supply of natural gas in the coming years.

That now
Bullish remarks by Credit Suisse analyst Manav Gupta probably also contributed to ExxonMobil’s Tuesday rally. Gupta praised the company’s commitment to increasing oil and gas production over the next decade. ExxonMobil invested heavily even as many of its competitors cut their costs. As a result, the company now has some of the best assets in the energy industry.
Gupta, in turn, assigned ExxonMobil shares a rating of “improved”. Now he estimates that the shares of energy titanium will grow by about 37% to $125.