We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Will ExxonMobil's (XOM) Upstream Business Aid Q2 Earnings?
Read MoreHide Full Article
Exxon Mobil Corporation (XOM - Free Report) is set to release second-quarter 2022 results on Jul 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 $7.7 billion, excluding identified items, in the first quarter of 2022.
Upstream Q1 Performance
Non-U.S. Operation: In first-quarter 2022, ExxonMobil reported earnings of $5.4 billion, excluding identified items, from upstream activities outside the United States. This marked an improvement from the year-earlier figure of $2.2 billion.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $2.4 billion, skyrocketing from $363 million in a year-ago quarter.
Q2 Oil Price
The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.
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. These are likely to have aided the company’s second-quarter performance.
Forecast for Q2 Oil & Gas Production
The Zacks Consensus Estimate for second-quarter production is pegged at 3,710 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,582 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,336 thousand barrels per day (MBbl/D), indicating an improvement from 2,200 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 8,279 million cubic feet per day (Mcf/d), implying a decline from 8,294 Mcf/d in second-quarter 2021.
Upstream Profit to Improve in Q2
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 #2 (Buy) firm’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 $6,653 million, suggesting an improvement from $2,522 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 $3,020 million, indicating a massive improvement from $663 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the June quarter of 2022. The Zacks Consensus Estimate for its second-quarter earnings of $3.53 per share suggests a massive improvement year over year. The same for sales of $112.2 billion indicates a 65.6% 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 second-quarter results on Aug 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.75 per share, suggesting a massive year-over-year improvement.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 1.
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for its earnings is pegged at $2.20 per share, suggesting a significant year-over-year improvement.
EOG Resources has an Earnings ESP of -18.04% and a Zacks Rank #2.
EOG Resources is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for EOG’s earnings is pegged at $3.44 per share, suggesting a massive year-over-year improvement.
Image: Bigstock
Will ExxonMobil's (XOM) Upstream Business Aid Q2 Earnings?
Exxon Mobil Corporation (XOM - Free Report) is set to release second-quarter 2022 results on Jul 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 $7.7 billion, excluding identified items, in the first quarter of 2022.
Upstream Q1 Performance
Non-U.S. Operation: In first-quarter 2022, ExxonMobil reported earnings of $5.4 billion, excluding identified items, from upstream activities outside the United States. This marked an improvement from the year-earlier figure of $2.2 billion.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $2.4 billion, skyrocketing from $363 million in a year-ago quarter.
Q2 Oil Price
The pricing scenario of West Texas Intermediate (WTI) crude was considerably higher in the second quarter of this year compared to the year-ago period. Per data from the U.S. Energy Information Administration, the monthly WTI crude spot prices for this year’s April, May and June were $101.78 per barrel, $109.55 per barrel and $114.84 per barrel, respectively. The commodity prices were higher than last year’s prices of $61.72 per barrel, $65.17 per barrel and $71.38 per barrel, respectively. The significant crude price improvement was primarily supported by the invasion of Ukraine by Russia.
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. These are likely to have aided the company’s second-quarter performance.
Forecast for Q2 Oil & Gas Production
The Zacks Consensus Estimate for second-quarter production is pegged at 3,710 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,582 MBoE/D.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,336 thousand barrels per day (MBbl/D), indicating an improvement from 2,200 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 8,279 million cubic feet per day (Mcf/d), implying a decline from 8,294 Mcf/d in second-quarter 2021.
Upstream Profit to Improve in Q2
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 #2 (Buy) firm’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 $6,653 million, suggesting an improvement from $2,522 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 $3,020 million, indicating a massive improvement from $663 million in the year-ago quarter.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the June quarter of 2022. The Zacks Consensus Estimate for its second-quarter earnings of $3.53 per share suggests a massive improvement year over year. The same for sales of $112.2 billion indicates a 65.6% increase.
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) , BP plc (BP - Free Report) and EOG Resources (EOG - Free Report) .
ConocoPhillips has an Earnings ESP of +1.21% and is a Zacks #3 Ranked player. You can see the complete list of today’s Zacks #1 Rank stocks here.
ConocoPhillips is scheduled to release second-quarter results on Aug 4. The Zacks Consensus Estimate for COP’s earnings is pegged at $3.75 per share, suggesting a massive year-over-year improvement.
BP has an Earnings ESP of 0.00% and a Zacks Rank of 1.
BP is scheduled to report second-quarter results on Aug 2. The Zacks Consensus Estimate for its earnings is pegged at $2.20 per share, suggesting a significant year-over-year improvement.
EOG Resources has an Earnings ESP of -18.04% and a Zacks Rank #2.
EOG Resources is scheduled to release second-quarter earnings on Aug 4. The Zacks Consensus Estimate for EOG’s earnings is pegged at $3.44 per share, suggesting a massive year-over-year improvement.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.