Here's How XOM is Actively Involved in Improving Air Quality Via CCS

Exxon Mobil Corporation XOM is an integrated energy giant that generates a significant portion of its revenues from its upstream operations. With mounting concerns over carbon emissions and air quality, global energy demand is gradually shifting toward lower-carbon alternatives. In response, the company is ramping up investments in carbon capture and storage (CCS) initiatives.

In July 2025, XOM commenced the transportation and storage of CO2 from CF Industries’ Donaldsonville Complex, marking its first CCS project. Recently, the company has begun capturing carbon from its second commercial CCS project, the New Generation Gas Gathering (NG3) site in Gillis, LA. XOM plans to expand with two additional CCS projects under development, which are expected to come online in 2026.

ExxonMobil collects factory-produced gas across East Texas and Louisiana and sends it to the NG3 facility for treatment. At the site, the company plans to remove about 1.2 million tons per annum (MTA) of CO2 from the natural gas before it is transported to the Gulf Coast markets. With 3.2 MTA of CO2 contracted across its two active projects, XOM has secured about one-third of its total CCS capacity.

EQNR & CVX Are Improving Air Quality Via CCS Like XOM

Equinor ASA EQNR and Chevron Corporation CVX are other energy players involved in improving the air quality by removing CO2 via their CCS projects. Equinor and Chevron are working with TotalEnergies SE on the Bayou Bend CCS project in South Texas.

EQNR has secured licenses granting access to carbon storage capacity of up to 60 MTA. Equinor aims to build total CO2 transport and storage capacity in the range of 30 to 50 MTA by 2035.

CVX is evaluating a project to collect CO2 from its Pascagoula refining operations and safely sequester it in deep subsurface geological formations. Since its mid-2019 startup, Chevron’s Gorgon CCS project has surpassed 10 million tons of cumulative CO2 injections.

XOM’s Price Performance, Valuation & Estimates

ExxonMobil’s shares have gained 37.2% over the past year compared with the 31.8% improvement of the composite stocks belonging to the industry.

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From a valuation standpoint, XOM trades at a trailing 12-month enterprise-value-to-EBITDA (EV/EBITDA) of 9.9X. This is above the broader industry average of 6.19X.

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The Zacks Consensus Estimate for XOM’s 2026 earnings has been unchanged over the past seven days.

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ExxonMobil currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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