Energy

Exxon Mobil profits will likely miss fourth-quarter-earnings estimates by close to 20%, one analyst argued as he trimmed his numbers. While Exxon Mobil expects changes in gas prices to improve earnings by up to $400 million, the global energy company anticipates losses in other segments, according to a regulatory form the company filed with the U.S. Securities and Exchange Commission. Mizuho analyst Nitin Kumar noted that a weakness in upstream liquids pricing, energy products margins, and chemicals margins “appear to be weighing on results.” Exxon expects lower liquids prices to reduce upstream earnings by $500 million to $900 million from the third quarter. Exxon reported net income of $8.6 billion in the third quarter, with $6.2 billion attributed to upstream activity. The midpoint of Exxon’s implied fourth-quarter earnings-per-share range of $1.03 to $1.88 is 18% below Mizuho’s prior estimate of $1.79, and 17% below Wall Street’s consensus of $1.76, Kumar […]

Goldman Sachs analyst Neil Mehta expressed views on Exxon Mobil Corporation’s (NYSE:XOM) trading update reported yesterday. The oil giant anticipates changes in oil prices to reduce fourth-quarter upstream earnings Q/Q by $(0.9) billion to $(0.5) billion. Conversely, changes in gas prices are expected to impact its upstream results by between $0.0 billion and $0.4 billion. On the other hand, Exxon Mobil projects that variations in industry margins will impact energy products earnings by $(0.7) billion – $(0.3) billion, specialty products earnings by $(0.1) billion – $0.1 billion, and chemical products earnings by $(0.5) billion – $(0.3) billion. The analyst writes that implied EPS at the midpoint was ~$1.50, below their estimate of $1.80 and FactSet consensus of $1.76. The difference is mainly due to weaker-than-expected results in the Upstream, Downstream, and Chemicals segments, adds the analyst. Mehta writes that implied Upstream earnings were ~$5.7 billion at the mid-point, below their estimate of

Exxon’s refining margins were down in 3Q, but CEO Darren Woods says on a call with analysts that the oil giant is fundamentally changing its approach to its refining process in order to optimize its operations. The company’s cost-savings push, which has resulted in $11.3 billion in cost cuts since 2019, is helping to achieve this goal, he says: “A great example in the refining business has been centralization of the maintenance approach that we’re doing, not just in turnarounds but in our routine day-to-day maintenance.” This move has added value and lowered costs through consolidation and effective execution, Woods says. The company’s 3Q profit falls on lower energy prices and narrowing margins.

The following is a summary of the Exxon Mobil Corporation (XOM) Q3 2024 Earnings Call Transcript: Financial Performance: ExxonMobil announced Q3 earnings of $8.6 billion, marking one of the best third quarters in the past decade. Year-to-date earnings in 2024 for the Energy Products business have doubled compared to the same period in 2019. The company achieved structural cost savings of $5 billion across the Product Solutions business since 2019. Business Progress: Continued portfolio optimization through divesting less advantaged sites, leading to a reduction in total refinery count to an expected 15 by year-end. Implemented significant improvements in product yield and efficiency, exemplified by the Rotterdam Advanced Hydrocracker and Beaumont expansion. Advanced long laterals drilling in the Pioneer acquisition, with plans for the first ever 20,000-foot laterals. Opportunities: Inaugurated an agreement with Mitsubishi for low carbon ammonia and equity participation, enhancing the development of a new energy value chain in

How Analysts Size Up Companies Edited by These reports, excerpted and edited by Barron’s, were issued recently by investment and research firms. The reports are a sampling of analysts’ thinking; they should not be considered the views or recommendations of Barron’s. Some of the reports’ issuers have provided, or hope to provide, investment-banking or other services to the companies being analyzed. Exxon Mobil — XOM-NYSE Overweight — Price $117.75 on May 14 by Morgan Stanley Following the close of the Pioneer Natural Resources acquisition on May 3, we are resuming coverage of Exxon Mobil at Overweight. The company’s scale and integration across the energy, chemicals, and emerging low-carbon value chains support sustainable competitive advantages, above-average growth, and a differentiated value proposition within the energy sector and the broader market. While the stock has outperformed year to date, it still trades at a 55% discount to the broader market, nearly double