Why Exxon Mobil (XOM) is a Good Option to Invest in LNG

Exxon Mobil Corporation (NYSE:XOM) is included among the 12 Best LNG Stocks to Buy According to Hedge Funds.

Why Exxon Mobil (XOM) is a Good Option to Invest in LNG

Exxon Mobil Corporation (NYSE:XOM) controls a treasure trove of low-cost oil and gas and also boasts a leading LNG portfolio, producing 23 mtpa of LNG globally through its affiliates and joint ventures. The company also has four major LNG projects currently in progress and intends to roughly double the size of its LNG business to around 40 million tons per year by 2030.

A notable investment by Exxon Mobil Corporation (NYSE:XOM) in the sector is the 18 million mtpa Golden Pass terminal in Texas. The $10 billion joint venture with QatarEnergy is expected to start production by the end of 2025.

A behemoth of the global energy industry, Exxon Mobil Corporation (NYSE:XOM) has increased its earnings at an annual rate of roughly 30% over the last five years, with its cash flow also rising at a CAGR of roughly 15% during the period. The company intends to continue this momentum, with a target to produce an additional $20 billion in earnings and $30 billion in cash flow by 2030.

While we acknowledge the potential of XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has a 100x upside potential, check out our report about the cheapest AI stock.

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Disclosure: None.