On Friday, July 10, Exxon Mobil Corp. (XOM), the world’s largest publicly traded oil company, gained a permit from Norway’s top petroleum resources regulatory agency, the Norwegian Petroleum Directorate (NPD), to drill wellbore 25/8-17 in production license 027 D.

The Texas-based oil giant plans to drill wildcat wells (well drilled in an area where no current oil or gas production exists) on the license using semi-submersible facility Bredford Dolphin. Exxon Mobil has a 50% operated interest in the production license 027 D, which was awarded in December 2007. Well 25/8-17 is located just south of the company’s Jotun field project in North Sea and is the second well drilled on the production license.

One of the largest oil and gas producers on the Norwegian continental shelf, Exxon’s recent award demonstrates its global approach to the identification and pursuit of quality hydrocarbon resources and exploration opportunities.

We currently have a Buy recommendation on this large-cap integrated player. Exxon Mobil’s relatively low-risk energy conglomerate business structure, its fortress balance sheets, ample free cash flow even in a low price environment and growing dividends are well suited for uncertain times like these. Our other Buy-rated name in this space is Chevron Corp. (CVX).

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