Exxon Mobil Corporation XOM is in talks to divest its entire network of 59 gasoline stations in Singapore to Aster Chemicals and Energy, a joint venture between global commodities giant Glencore and Indonesia’s Chandra Asri Group, according to a Bloomberg report. The deal, if finalized, could be valued at around $1 billion.
XOM Looks to Optimize Capital Allocation
A sale would mark a strategic shift for ExxonMobil, enabling it to redeploy capital toward higher-growth opportunities. The move aligns with CEO Darren Woods’ broader strategy to streamline the company’s downstream portfolio and concentrate on high-return investments, particularly in upstream oil and gas production and low-carbon initiatives.
XOM’s Longstanding Presence in Singapore
ExxonMobil has operated in Singapore for more than 130 years, primarily under the Esso brand. While the gas station divestiture would mark a significant change, the company maintains a sizable footprint in the city-state, including a refinery, chemical and lubricant manufacturing plants, a fuel terminal and an LPG bottling facility.
Aster Expands Regional Footprint With Another Energy Acquisition
According to the report, Aster Chemicals and Energy has been actively expanding its presence in Southeast Asia’s energy sector. Its recent acquisitions include Shell’s Singapore refining and chemicals assets, as well as Chevron Phillips Singapore Chemicals’ polyethylene manufacturing facility on Jurong Island. Winning the bid for ExxonMobil’s retail network would further consolidate Aster’s position in the region’s downstream market.
Discussions are currently centered on finalizing the price and transaction structure. While no definitive agreement has been announced, the potential exit underscores ExxonMobil’s global restructuring efforts and Aster’s growing appetite for Southeast Asia’s energy infrastructure.
XOM’s Zacks Rank & Key Picks
XOM currently carries a Zack Rank #3 (Hold).
Investors interested in the energy sector may look at a few better-ranked stocks like The Williams Companies, Inc. WMB, W&T Offshore, Inc. WTI and Oceaneering International, Inc. OII, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Williams Companies’ strong base business performance and strategic expansions, such as the $1.6 billion Socrates project, further boost its outlook. Additionally, Williams’ increased dividend, robust pipeline, and favorable credit rating upgrade suggest a solid foundation for long-term growth.
The Zacks Consensus Estimate for WMB’s 2025 EPS is pegged at $2.11.
W&T Offshore benefits from its prolific Gulf of America assets, which offer low decline rates, strong permeability and significant untapped reserves. The company’s acquisition of six shallow-water fields in the GoA added 18.7 million barrels of proved reserves and 60.6 million barrels of proved plus probable reserves. The firm is focused on strategically allocating capital toward organic projects, which should boost its production outlook. WTI has a Value Score of B.
Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. With a geographically diverse asset portfolio and a balanced revenue mix between domestic and international operations, the company effectively mitigates risk. As a leading provider of offshore equipment and technology solutions to the energy sector, OII benefits from strong relationships with top-tier customers, ensuring revenue visibility and business stability.
The Zacks Consensus Estimate for OII’s 2025 EPS is pegged at $1.79. The company has a Value Score of B.
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Williams Companies, Inc. (The) (WMB): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report W&T Offshore, Inc. (WTI): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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