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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 to release first-quarter 2022 results on Apr 29, before the opening bell. Since the integrated energy player has significant exposure to upstream business, a 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 oil and natural gas resources. From upstream operations within and outside the United States, the energy giant reported earnings of roughly $15.8 billion in 2021.
Upstream Q4 Performance
Non-U.S. Operation: For fourth-quarter 2021, ExxonMobil reported earnings of $4.3 billion from upstream activities outside the United States. This marked an improvement from the year-earlier loss of $1.7 billion owing to higher prices.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $1.8 billion, turning around from the year-ago quarter’s loss of $16.8 billion. Increased prices aided domestic operations.
Q1 Oil Price
In the March quarter of this year, the pricing of oil was much higher than the year-ago quarter. The significant improvement was owing to Russia’s violent and unprovoked invasion of Ukraine. Higher oil price was favorable for the exploration and production activities of ExxonMobil. Natural gas price was also healthier, thereby favoring XOM’s exploration and production businesses.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,837 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,787 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,426 thousand barrels per day (MBbl/D), indicating an improvement from 2,258 MBbl/D in the year-ago quarter.
Natural Gas Production: The Zacks Consensus Estimate for worldwide natural gas production available for sale is pegged at 8,501 million cubic feet per day (Mcf/d), implying a decline from 9,173 Mcf/d in first-quarter 2021.
Upstream Profit to Improve in Q1
Prices and the production of commodities are the two key parameters determining upstream operations' fate. With oil equivalent production likely to have surged, the significant improvement in oil price is expected to have acted as a catalyst. Thus, the Zacks Rank #1 (Strong Buy) ExxonMobil’s earnings from the 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 $4,921 million, suggesting an improvement from $2,191 million reported in the year-ago quarter.
U.S. Operation: The Zacks Consensus Estimate for after-tax earnings from upstream operations in the domestic region is pegged at $2,239 million, indicating a massive improvement from $363 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the March quarter of 2022. The Zacks Consensus Estimate for its first-quarter earnings of $2.25 per share suggests a massive improvement year over year. The same for sales of $87.6 billion indicates a 48.1% year-over-year increase.
Other big energy giants with significant upstream exposure that are gearing up to release quarterly results are ConocoPhillips (COP - Free Report) , BP plc (BP - Free Report) and EOG Resources (EOG - Free Report) .
ConocoPhillips is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.24 per share, suggesting a massive year-over-year improvement.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 3.
BP is scheduled to report first-quarter results on May 3. The Zacks Consensus Estimate for BP’s earnings is pegged at $1.41 per share, suggesting a significant year-over-year improvement.
EOG Resources has an Earnings ESP of 0.89% and a Zacks Rank #1.
EOG Resources is scheduled to release first-quarter earnings on May 5. The Zacks Consensus Estimate for EOG’s earnings is pegged at $3.69 per share, suggesting a massive year-over-year improvement.
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Will ExxonMobil's (XOM) Upstream Business Aid Q1 Earnings?
Exxon Mobil Corporation (XOM - Free Report) is geared to release first-quarter 2022 results on Apr 29, before the opening bell. Since the integrated energy player has significant exposure to upstream business, a 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 oil and natural gas resources. From upstream operations within and outside the United States, the energy giant reported earnings of roughly $15.8 billion in 2021.
Upstream Q4 Performance
Non-U.S. Operation: For fourth-quarter 2021, ExxonMobil reported earnings of $4.3 billion from upstream activities outside the United States. This marked an improvement from the year-earlier loss of $1.7 billion owing to higher prices.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $1.8 billion, turning around from the year-ago quarter’s loss of $16.8 billion. Increased prices aided domestic operations.
Q1 Oil Price
In the March quarter of this year, the pricing of oil was much higher than the year-ago quarter. The significant improvement was owing to Russia’s violent and unprovoked invasion of Ukraine. Higher oil price was favorable for the exploration and production activities of ExxonMobil. Natural gas price was also healthier, thereby favoring XOM’s exploration and production businesses.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,837 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,787 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,426 thousand barrels per day (MBbl/D), indicating an improvement from 2,258 MBbl/D in the year-ago quarter.
Natural Gas Production: The Zacks Consensus Estimate for worldwide natural gas production available for sale is pegged at 8,501 million cubic feet per day (Mcf/d), implying a decline from 9,173 Mcf/d in first-quarter 2021.
Upstream Profit to Improve in Q1
Prices and the production of commodities are the two key parameters determining upstream operations' fate. With oil equivalent production likely to have surged, the significant improvement in oil price is expected to have acted as a catalyst. Thus, the Zacks Rank #1 (Strong Buy) ExxonMobil’s earnings from the 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 $4,921 million, suggesting an improvement from $2,191 million reported in the year-ago quarter.
U.S. Operation: The Zacks Consensus Estimate for after-tax earnings from upstream operations in the domestic region is pegged at $2,239 million, indicating a massive improvement from $363 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the March quarter of 2022. The Zacks Consensus Estimate for its first-quarter earnings of $2.25 per share suggests a massive improvement year over year. The same for sales of $87.6 billion indicates a 48.1% year-over-year increase.
ExxonMobil Corporation Price and EPS Surprise
ExxonMobil 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) , BP plc (BP - Free Report) and EOG Resources (EOG - Free Report) .
ConocoPhillips has an Earnings ESP of 0.00% and is a Zacks #1 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips is scheduled to release first-quarter results on May 5. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.24 per share, suggesting a massive year-over-year improvement.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 3.
BP is scheduled to report first-quarter results on May 3. The Zacks Consensus Estimate for BP’s earnings is pegged at $1.41 per share, suggesting a significant year-over-year improvement.
EOG Resources has an Earnings ESP of 0.89% and a Zacks Rank #1.
EOG Resources is scheduled to release first-quarter earnings on May 5. The Zacks Consensus Estimate for EOG’s earnings is pegged at $3.69 per share, suggesting a massive year-over-year improvement.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.