It seems like Exxon Mobil Corp. (NYSE: XOM) is located in just about every major oil and gas effort around the planet. After all, it is the largest American oil and gas company by far. Now Exxon is acquiring a crude oil terminal that will serve the growing Delaware Basin located within the Permian Basin. Financial terms of the deal were not disclosed.
What should matter to investors of Exxon and to investors who are targeting the Permian Basin is that Exxon said this is its first terminal in the Permian Basin to be anchored by the corporation’s newly acquired (announced in January) Delaware Basin acreage. That being said, Exxon’s market cap of $350 billion means that no single acquisition or asset sale is likely to make a meaningful difference in Exxon’s earnings individually.
Wednesday’s press release is said to establish Exxon as a key midstream provider in the rapidly growing Permian Basin and this crude oil terminal is permitted for 100,000 barrels per day of throughput. It is also said to have the ability to expand. The terminal provides transportation and storage options for Permian Basin producers and is located in Wink, Texas. Read more…