ExxonMobil Holdings (NYSE:XOM) shares are trading about 2% higher on Thursday as traders react to the Trump administration’s planned rollback of Biden-era methane regulations, which could reduce compliance costs for U.S. oil and gas producers.
Methane is a potent greenhouse gas, and the oil and gas sector is a major source of methane emissions.
Environmental groups, including the Sierra Club, criticized the planned rollback, while EPA Administrator Lee Zeldin said the changes address concerns from energy producers that the existing regulations are unworkable.
Also, the Global crude benchmarks jumped over 4% today amid the ongoing Middle East conflict.
EPA Methane-Rule Rollback
The Environmental Protection Agency (EPA) plans to propose changes to Biden-era methane regulations governing oil and gas operations, including rules for marginal wells, large-leak detection and associated-gas flaring.
The agency estimates the proposed changes could save oil and gas producers $45 billion annually. ExxonMobil is among the publicly traded oil and gas operators that could potentially benefit from lower regulatory compliance costs.
The EPA also plans to revisit rules governing associated gas, which is produced alongside crude oil and may be flared when producers cannot capture or transport it economically. The Biden administration’s 2024 methane rules included a phased requirement to eliminate routine flaring of associated gas from new oil wells.
The EPA said the upcoming proposal would also create separate approaches for certain marginal wells and introduce changes to requirements covering covers, closed vent systems and control devices.
XOM earnings preview and analyst price-target outlook
Looking further out, the next major catalyst for the stock arrives with the October 30, 2026 (estimated) earnings report.
- EPS Estimate: $3.75 (Up from $1.88 YoY)
- Revenue Estimate: $102.02 Billion (Up from $85.29 Billion YoY)
- Valuation: P/E of 21.1x (Suggests fair valuation relative to peers)
Analyst Consensus & Recent Actions: The stock carries a Buy rating with an average price forecast of $171.92. Recent analyst moves include:
- Wells Fargo: Downgraded to Equal-Weight (Target $182.00) (October 1)
- TD Cowen: Buy (Raises Target to $180.00) (September 28)
- Piper Sandler: Neutral (Raises Target to $185.00) (September 3)
Top ETF exposure: WR, HDV, and FTXN weightings in XOM
- Corgi U.S. War Machine ETF (NASDAQ:WR): 8.67% Weight
- iShares Core High Dividend ETF (NYSE:HDV): 8.29% Weight
- First Trust Nasdaq Oil & Gas ETF (NASDAQ:FTXN): 7.00% Weight
Significance: Because XOM carries such a heavy weight in these funds, any significant inflows or outflows for these ETFs will likely force automatic buying or selling of the stock.
XOM Price Action: ExxonMobil Holdings shares were up 2.34% at $167.89 at the time of publication on Thursday, according to Benzinga Pro data.
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