Exxon Mobil saw a stable week as its stock traded around the $78 level while our pre-earnings price estimate for the company remains stable at $93, which implies a 18% premium over its current market price. The industry received positive news as independent crude oil and natural gas exploration and production firm Nobel Energy posted earnings that beat market estimates.
Exxon’s activity in Iraq received a boost earlier this week as the Iraqi government agreed to a multi-billion dollar oilfield water injection plant to boost production rates after months of delay due to disagreements over costs.  Exxon has been selected to lead the effort to build the plant on behalf of major oil corporation firms with operations in the U.S. including BP, Russian Lukoil and Eni from Italy. The common water injection system is required to boost production rates in Iraq’s giant southern field.
A recent report quoting Thamer Ghadhban, one of the top advisers to Iraq’s Prime Minister, pegged Exxon’s costs to develop the ‘supergiant’ West Qurna I at $50 billion.  We will look to cover the impact of Iraqi operations on Exxon’s earnings in the future