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Will ExxonMobil's (XOM) Upstream Business Aid Q1 Earnings?
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Exxon Mobil Corporation (XOM - Free Report) is geared up to release first-quarter 2021 results on Apr 30, before the opening bell. Since the integrated energy player has significant exposure to upstream business, the considerable improvement in oil price is likely to have aided the quarterly performance.
Upstream Business
ExxonMobil’s upstream businesses fall under core operations. This segment covers the company’s activities related to exploring, and developing of oil and natural gas resources. Notably, from upstream operations, within and outside the United Sates, the energy giant reported a loss of roughly $20 billion in 2020.
Upstream Performance in Q4
Non-U.S. Operation: During fourth-quarter 2020, ExxonMobil reported a loss of $1.7 billion from upstream activities outside the United States. This marked deterioration from the year-earlier profit of $6.1 billion owing to lower prices and volumes.
U.S Operation: From domestic operations, ExxonMobil reported a loss of $16.8 billion against the year-ago quarter’s profit of $68 million. Lower liquid prices hurt domestic operations.
Q1 Oil Price
In the first quarter of this year, the price of crude oil improved significantly, thanks to the rolling out of coronavirus vaccines, which brightened up the outlook of global fuel demand. In fact, the commodity’s price reached the pre-pandemic mark in the March quarter. Thus, the rise in oil price is likely to have aided the integrated energy firm’s upstream business.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,812 thousand barrels of oil equivalent per day (MBoE/D), suggesting a decline from the year-ago quarter’s 4,046 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for world-wide net crude oil and liquids production is pegged at 2,343 thousand barrels per day (MBbl/D), indicating a decline from 2,480 MBbl/D in the year-ago quarter.
Natural Gas Production: The Zacks Consensus Estimate for world-wide natural gas production available for sale is pegged at 8,802 million cubic feet per day (Mcf/d), implying a decline from 9,396 Mcf/d in first-quarter 2020.
Upstream Profit to Improve in Q1
Prices and production of commodities are the two key parameters that determine the fate of upstream operations. With oil equivalent production likely to have deteriorated, the significant improvement in oil price is expected to have more than offset the negative. Thus, the Zacks Rank #1 (Strong Buy) company’s earnings from upstream businesses are likely to have improved.
Non-U.S. Operation: The Zacks Consensus Estimate for earnings after taxes from non-U.S. upstream operations is pinned at $2,190 million, suggesting an improvement from $1,240 million reported in the year-ago quarter.
U.S. Operation: The Zacks Consensus Estimate for after-tax loss from upstream operations in the domestic region is pegged at $625 million, indicating an improvement from a loss of $704 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided the company’s earnings in the March quarter of 2021. Notably, the Zacks Consensus Estimate for first-quarter earnings of 59 cents per share suggests an improvement of 11.3% year over year. However, the Zacks Consensus Estimate for sales of $55.2 billion indicates a 1.8% year-over-year decrease owing to lower production.
Other big energy giants, with significant upstream exposure, that are gearing up to release quarterly results are ConocoPhillips (COP - Free Report) , Chevron (CVX - Free Report) and EOG Resources Inc (EOG - Free Report) . ConocoPhillips, Chevron and EOG Resources are scheduled to report on May 4, Apr 30 and May 6, respectively. While EOG Resources carries a Zacks Rank #2 (Buy), ConocoPhillips and Chevron carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
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Will ExxonMobil's (XOM) Upstream Business Aid Q1 Earnings?
Exxon Mobil Corporation (XOM - Free Report) is geared up to release first-quarter 2021 results on Apr 30, before the opening bell. Since the integrated energy player has significant exposure to upstream business, the considerable improvement in oil price is likely to have aided the quarterly performance.
Upstream Business
ExxonMobil’s upstream businesses fall under core operations. This segment covers the company’s activities related to exploring, and developing of oil and natural gas resources. Notably, from upstream operations, within and outside the United Sates, the energy giant reported a loss of roughly $20 billion in 2020.
Upstream Performance in Q4
Non-U.S. Operation: During fourth-quarter 2020, ExxonMobil reported a loss of $1.7 billion from upstream activities outside the United States. This marked deterioration from the year-earlier profit of $6.1 billion owing to lower prices and volumes.
U.S Operation: From domestic operations, ExxonMobil reported a loss of $16.8 billion against the year-ago quarter’s profit of $68 million. Lower liquid prices hurt domestic operations.
Q1 Oil Price
In the first quarter of this year, the price of crude oil improved significantly, thanks to the rolling out of coronavirus vaccines, which brightened up the outlook of global fuel demand. In fact, the commodity’s price reached the pre-pandemic mark in the March quarter. Thus, the rise in oil price is likely to have aided the integrated energy firm’s upstream business.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,812 thousand barrels of oil equivalent per day (MBoE/D), suggesting a decline from the year-ago quarter’s 4,046 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for world-wide net crude oil and liquids production is pegged at 2,343 thousand barrels per day (MBbl/D), indicating a decline from 2,480 MBbl/D in the year-ago quarter.
Natural Gas Production: The Zacks Consensus Estimate for world-wide natural gas production available for sale is pegged at 8,802 million cubic feet per day (Mcf/d), implying a decline from 9,396 Mcf/d in first-quarter 2020.
Upstream Profit to Improve in Q1
Prices and production of commodities are the two key parameters that determine the fate of upstream operations. With oil equivalent production likely to have deteriorated, the significant improvement in oil price is expected to have more than offset the negative. Thus, the Zacks Rank #1 (Strong Buy) company’s earnings from upstream businesses are likely to have improved.
Non-U.S. Operation: The Zacks Consensus Estimate for earnings after taxes from non-U.S. upstream operations is pinned at $2,190 million, suggesting an improvement from $1,240 million reported in the year-ago quarter.
U.S. Operation: The Zacks Consensus Estimate for after-tax loss from upstream operations in the domestic region is pegged at $625 million, indicating an improvement from a loss of $704 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided the company’s earnings in the March quarter of 2021. Notably, the Zacks Consensus Estimate for first-quarter earnings of 59 cents per share suggests an improvement of 11.3% year over year. However, the Zacks Consensus Estimate for sales of $55.2 billion indicates a 1.8% year-over-year decrease owing to lower production.
Exxon Mobil Corporation Price and EPS Surprise
Exxon Mobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote
Upcoming Releases of Other Energy Players
Other big energy giants, with significant upstream exposure, that are gearing up to release quarterly results are ConocoPhillips (COP - Free Report) , Chevron (CVX - Free Report) and EOG Resources Inc (EOG - Free Report) . ConocoPhillips, Chevron and EOG Resources are scheduled to report on May 4, Apr 30 and May 6, respectively. While EOG Resources carries a Zacks Rank #2 (Buy), ConocoPhillips and Chevron carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank stocks here.
Zacks Names “Single Best Pick to Double
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
You know this company from its past glory days, but few would expect that it’s poised for a monster turnaround. Fresh from a successful repositioning and flush with A-list celeb endorsements, it could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in a little more than 9 months and Nvidia which boomed +175.9% in one year.
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