Exxon Mobil shares gain for a seventh straight session on Friday, oil major to sell Norwegian oil and gas assets for $4 billion

According to a report by Reuters, citing people with knowledge of the matter, Exxon Mobil Corp has agreed on a sale of its oil and gas assets in Norway for as much as $4 billion.

A later report by Norway’s Dagens Naeringsliv stated that the buyer was Var Energi, while an official announcement of the deal was expected at the end of this month.

Additionally, the sale process is to be run by investment bank Jefferies.

Exxon Mobil shares closed higher for a seventh consecutive trading session in New York on Friday. The stock went up 0.94% ($0.66) to $70.93, after touching an intraday high at $70.95, or a price level not seen since August 9th ($72.25).

Shares of Exxon Mobil Corporation have risen 4.02% so far in 2019 compared with an 18.82% gain for the benchmark index, S&P 500 (SPX).

In 2018, Exxon Mobil Corp’s stock went down 18.47%, thus, it again underperformed the S&P 500, which registered a 6.24% loss.

In June, Exxon Mobil said it was exploring a sale of its upstream portfolio in Norway, which includes minority stakes in over 20 fields operated by Equinor and Royal Dutch Shell.

According to Reuters, the energy company has already discussed a potential sale with several interested parties such as Aker BP, DNO and Equinor listed in Oslo, Lundin Petroleum listed in Stockholm, Var Energi as well as private equity company HitecVision.

In 2017, Exxon Mobil’s daily net production from fields off Norway reached 170 000 barrels of oil equivalent, the oil major’s website stated.

Analyst stock price forecast and recommendation

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Exxon Mobil’s stock price, have a median target of $81.00, with a high estimate of $108.00 and a low estimate of $73.00. The median estimate represents a 14.20% upside compared to the closing price of $70.93 on September 6th.

The same media also reported that at least 18 out of 25 surveyed investment analysts had rated Exxon Mobil’s stock as “Hold”, while 5 – as “Buy”. On the other hand, 1 analyst had recommended selling the stock.