Share this article Share “The news has been so good that we were able to raise the share price by 50 percent, from $11.80 to $12.00, in less than one hour,” CEO Rex Tillerson said in a statement.
“We are so excited to have this market position.
This is one of the best times to be a LPG investor in the United States, with a huge stock market, low unemployment, and an incredible stock market.
We are very confident in the long-term growth of LPG.”
Exxon, a major energy company that operates a refinery in Saudi Arabia, has a large pipeline of LNG destined for Asia, which has seen prices skyrocket since it was announced in September.
LPG, a natural gas extracted from the peat bogs of North Africa, has been on the rise.
But the surge in LPG prices has left Exxon shareholders and analysts questioning whether the stock is overvalued.
The company’s stock price surged to $11 in a single day in November, when oil prices were hovering around $100 a barrel.
The stock is now down nearly 25% this year, according to FactSet.
Thats not to say the company hasn’t seen strong growth in the LPG sector.
LNG producers have been able to use their LNG production to support the oil price.
Last week, Exxon announced that the U.S. had surpassed the 30-year supply threshold for LNG in 2020.
The pipeline has also seen a surge in domestic and international demand, which is contributing to higher prices.
Exxon also reported that LPG-producing nations are seeing an increase in production due to increased demand.
That trend, however, is slowing as the Middle East and Africa, where demand for oil is growing fastest, struggle to get the oil to their consumers.
“I believe the world is going to have to start thinking of LIGOs as a very important investment opportunity for Exxon, and the future of LGA in particular,” said Scott Miller, a portfolio manager at Newmont Asset Management.
“LPG is a very attractive asset class, and as oil prices continue to recover and grow, LGA is a great place to invest.”
The company’s share price rose above $12, as of 5:05 p.m.
EST (21:05 GMT) on Tuesday.
Its price was $12 at the time of the release.