Exxon Mobil Corporation (NYSE: XOM) is currently involved in the legal fight with Macquarie Energy in Texas court. Both the firm has started an $11.7 million lawsuit over lost supplies during last month’s winter in the central US. Exxon disclosed that the heavy storm and emergency declaration by the states stopped the firm from fulfilling its supply obligation to Macquarie Energy.
Macquarie Energy is the second-largest U.S. gas marketer. The lawsuit was filed by the natural gas business of Exxon. XOM is requesting the Texas court to declare that the huge cyclone, triggered when a cold air mass moved the central US, was a natural catastrophe. Shares of Exxon went up 0.80% during the trading session of Wednesday.
Exxon Mobil Corporation’s share price went from a low point around $30.11 to briefly over $57.61 in the past 52 weeks, though shares have since pulled back to $56.52. XOM’s market cap has stayed high, reaching $40.01M at the time of writing.
The freezing weather has caused the spot gas at a west Texas hub to reach $203.50 per million mmBtu on Feb. 16. It also urged Texas and Louisiana to announce disasters and direct gas deliveries to the states’ power generators. Exxon and Macquarie have not yet provided the official statement. Macquarie had refused to accept the statement of a natural disaster by XOM.