Exxon Mobil (XOM)
Integrated giant Exxon Mobil (XOM) actually has a lot to gain by having the Keystone XL approved.
First, XOM’s refineries in the Gulf are equipped to handle the heavy, sour crude that will be pumped downwards from Alberta. And even if the spread between WSC and WTI returns to a more historical range, XOM should still capture plenty of refining margin.
The other ace up Exxon’s sleeve is that it owns the bulk of Canadian oil sands producer Imperial Oil (IMO) — currently 70% of the shares outstanding. Imperial’s Kearl project in Alberta promises to be a monster and is already pumping out about 110,000 barrels per day from the oil sands. However, Exxon and Imperial estimate that they should be able to produce roughly 345,000 barrels per day by 2020. That could mean some hefty profits at XOM as it produces then refines all of that WCS crude oil.