Learning to like borscht
Probably most intriguing at Exxon Mobil Corporation (NYSE:XOM) is its cascading relationship with Russia’s giant state-controlled oil company, Rosneft. Two years ago, the companies hatched an agreement to explore the Kara Sea in the Russian Arctic, along with the Black Sea. At the same time, Rosneft received stakes in a number of Exxon’s projects in the Gulf of Mexico, onshore in the U.S., and in Canada.
During the past quarter, as Rosenthal noted, the companies’ “strategic cooperation agreement” was expanded further to cover another 150 million acres in the Chukchi, Laptev, and Kara Seas. Rosneft also was cut in for a quarter interest in Exxon Mobil Corporation (NYSE:XOM)’s Point Thompson natural gas and condensate project in Alaska, and the companies may team up in the construction of a $15 million liquefied natural gas plant on Russia’s Pacific coast.
If you think about it, by selling its portion of the TNK-BP joint venture to Rosneft during the quarter BP plc (ADR) (NYSE:BP) obtained a 20% ownership interest in the big Russian company. It therefore has also garnered an interest in all of the abovementioned projects.
A Foolish takeaway
On Friday, also in part due to lower crude prices, Chevron Corporation (NYSE:CVX), which has been considered more compelling than Exxon in many quarters, saw its net income for the quarter dip by 4.5%. Nevertheless, given the continuously expanding world in which they operate, I’m inclined to watch the big integrated companies carefully. Exxon Mobil Corporation (NYSE:XOM) should hardly be shunted aside.
The article ExxonMobil’s Quarter Was Really Very Solid originally appeared on Fool.com and is written by David Smith.
Fool contributor David Smith owns shares of Chesapeake Energy and BP (ADR). The Motley Fool recommends Chevron and has the following options on Chesapeake Energy: long Jan. 2014 $20 calls, long Jan. 2014 $30 calls, and short Jan. 2014 $15 puts.
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