U.S. supermajor Exxon Mobil reportedly took part in private discussions with Russia's state energy firm Rosneft about returning to the massive Sakhalin oil and gas project if the Ukraine war peace process proceeds. Exxon Mobil stock was little changed Wednesday on the news, but a separate U.S. energy name surged in stock market action on Russia activity.
Exxon Mobil stock edged up around 1% during Wednesday's stock market, after the Wall Street Journal on Tuesday reported the company's discussions to return to Russia. The U.S. supermajor was one of the earliest investors in the Sakhalin Island project, but had to write down more than $4 billion after discontinuing operations in 2022. The WSJ reported Tuesday Exxon has maintained back-channel communications with Russian officials since exiting the country.
The news report comes nearly two weeks after President Vladimir Putin signed a decree that could allow foreign investors, including Exxon Mobil, to regain shares in the Sakhalin-1 oil and gas project, according to an Aug. 15 Reuters article.
WFRD Stock & AI
While Exxon Mobil stock gained 1% Wednesday, Weatherford International moved 3.4% higher to 63.68, continuing its advance since the Financial Times late Thursday reported the U.S. oil field services company is expanding its operations in Russia, despite tighter U.S. sanctions.
Weatherford International stock is up around 11% since the close of Thursday's stock market, following a 6.1% advance Friday. The oil field services stock found support at its 50-day moving average since June, and plowed past its 200-day moving average on Friday.
Melius Research analyst James West on Aug. 20 initiated coverage of Weatherford with a buy rating and 108 price target. That target represents 68% upside vs. current levels. West last week based his price target and buy designation primarily on how accelerating AI demand has turned the "energy & power" sector effectively into an AI category.
Exxon Mobil, Weatherford, SLB
Many oil names decided to leave Russia in 2022 following the beginning of the war in Ukraine, selling off assets as they did so. Exxon Mobil, BP, Shell, Baker Hughes and Halliburton were among the companies that exited Russia three years ago.
However, Weatherford and oil services giant SLB kept some of their Russian operations intact. The Financial Times on Thursday identified around 100 job postings by Weatherford in Russia since late February, when new U.S. sanctions targeting oil field services came into effect.
Meanwhile, SLB has posted 382 job listings in Russia since late February, according to the Financial Times.
SLB stock advanced 1.9% to 35.98 in Wednesday's stock market, gaining momentum since its 5.3% gain from Friday. U.S. oil prices made marginal gains Wednesday, increasing around 0.9% to $63.82 per barrel.
Weatherford International is incorporated in Ireland with its primary offices in Houston. The company entered Chapter 11 bankruptcy protection in July 2019. It emerged from bankruptcy five months later, and relisted on the Nasdaq in June 2021.
The company provides equipment and services for drilling, evaluation, well construction, completion and production in the oil and natural gas industry. Weatherford reports it has operations in more than 70 countries.
Weatherford stock has a 31 Composite Rating. WFRD shares also have a 36 Relative Strength Rating and a 30 EPS Rating.
Please follow Kit Norton on X @KitNorton for more coverage.
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