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Will ExxonMobil's (XOM) Upstream Business Aid Q1 Earnings?
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Exxon Mobil Corporation (XOM - Free Report) is set to release first-quarter 2023 results on Apr 28, before the opening bell. Since the integrated energy player has significant exposure to upstream business, favorable 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 in exploring and developing oil and natural gas resources. From upstream operations within and outside the United States, the energy giant reported earnings of $8.8 billion, excluding identified items, in the fourth quarter of 2022.
Upstream Q4 Performance
Non-U.S. Operation: In fourth-quarter 2022, ExxonMobil reported earnings of $6.3 billion, excluding identified items, from upstream activities outside the United States. This marked an improvement from the year-earlier figure of $4.6 billion.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $2.5 billion, up from roughly $2 billion in a year-ago quarter.
Q1 Oil & Gas Price
Compared to the prior-year quarter, the pricing scenario of oil was not healthier. But, the crude pricing environment, although not as good as a year ago, was still highly favorable for exploration and production activities for firms like ExxonMobil. A favorable commodity pricing scenario is likely to have aided XOM’s oil and oil equivalent production.
However, the pricing scenario of natural gas was significantly lower in the first quarter of this year than the prior-year quarter. This might have hurt XOM’s gas production.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,797 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,675 MBoE/D. Our estimate for the metric is pegged at 3,822.1 MBoE/D, indicating a year-over-year increase.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,413 thousand barrels per day (MBbl/D), indicating an improvement from 2,266 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 8,269 million cubic feet per day (Mcf/d), implying a decline from 8,452 Mcf/d in first-quarter 2022.
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, favorable oil price is expected to have acted as a catalyst. Thus, the Zacks Rank #3 (Hold) firm’s earnings from the upstream businesses are expected to have improved.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the March quarter of 2023. The Zacks Consensus Estimate for its first-quarter earnings of $2.65 per share suggests a significant improvement year over year. The same for sales of $96.04 billion indicates a 6.1% increase.
ExxonMobil has an Earnings ESP of +0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our proven model predicts an earnings beat for ExxonMobil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat, which is exactly the case here.
Here are some other firms worth considering, as these, too, have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Enterprise is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for its earnings is pegged at 61 cents per share.
TechnipFMC plc (FTI - Free Report) currently has an Earnings ESP of +16.26% and a Zacks Rank #3.
TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 3 cents per share, suggesting an increase from the prior-year reported figure.
Magellan Midstream Partners LP has an Earnings ESP of +0.14% and is currently a Zacks #3 Ranked player.
Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.18 per share, suggesting an increase from the prior-year reported figure.
Image: Bigstock
Will ExxonMobil's (XOM) Upstream Business Aid Q1 Earnings?
Exxon Mobil Corporation (XOM - Free Report) is set to release first-quarter 2023 results on Apr 28, before the opening bell. Since the integrated energy player has significant exposure to upstream business, favorable 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 in exploring and developing oil and natural gas resources. From upstream operations within and outside the United States, the energy giant reported earnings of $8.8 billion, excluding identified items, in the fourth quarter of 2022.
Upstream Q4 Performance
Non-U.S. Operation: In fourth-quarter 2022, ExxonMobil reported earnings of $6.3 billion, excluding identified items, from upstream activities outside the United States. This marked an improvement from the year-earlier figure of $4.6 billion.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $2.5 billion, up from roughly $2 billion in a year-ago quarter.
Q1 Oil & Gas Price
Compared to the prior-year quarter, the pricing scenario of oil was not healthier. But, the crude pricing environment, although not as good as a year ago, was still highly favorable for exploration and production activities for firms like ExxonMobil. A favorable commodity pricing scenario is likely to have aided XOM’s oil and oil equivalent production.
However, the pricing scenario of natural gas was significantly lower in the first quarter of this year than the prior-year quarter. This might have hurt XOM’s gas production.
Forecast for Q1 Oil & Gas Production
The Zacks Consensus Estimate for first-quarter production is pegged at 3,797 thousand barrels of oil equivalent per day (MBoE/D), suggesting an improvement from the year-ago quarter’s 3,675 MBoE/D. Our estimate for the metric is pegged at 3,822.1 MBoE/D, indicating a year-over-year increase.
Production of Crude & Natural Gas Liquids: The consensus estimate for worldwide net crude oil and liquids production is pegged at 2,413 thousand barrels per day (MBbl/D), indicating an improvement from 2,266 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 8,269 million cubic feet per day (Mcf/d), implying a decline from 8,452 Mcf/d in first-quarter 2022.
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, favorable oil price is expected to have acted as a catalyst. Thus, the Zacks Rank #3 (Hold) firm’s earnings from the upstream businesses are expected to have improved.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the March quarter of 2023. The Zacks Consensus Estimate for its first-quarter earnings of $2.65 per share suggests a significant improvement year over year. The same for sales of $96.04 billion indicates a 6.1% increase.
ExxonMobil has an Earnings ESP of +0.55%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our proven model predicts an earnings beat for ExxonMobil this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of an earnings beat, which is exactly the case here.
Exxon Mobil Corporation Price and EPS Surprise
Exxon Mobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote
Other Stocks to Consider
Here are some other firms worth considering, as these, too, have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Enterprise Products Partners L.P. (EPD - Free Report) currently has an Earnings ESP of +0.28% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
Enterprise is scheduled to release first-quarter earnings on May 2. The Zacks Consensus Estimate for its earnings is pegged at 61 cents per share.
TechnipFMC plc (FTI - Free Report) currently has an Earnings ESP of +16.26% and a Zacks Rank #3.
TechnipFMC is scheduled to release first-quarter earnings on Apr 27. The Zacks Consensus Estimate for its earnings is pegged at 3 cents per share, suggesting an increase from the prior-year reported figure.
Magellan Midstream Partners LP has an Earnings ESP of +0.14% and is currently a Zacks #3 Ranked player.
Magellan Midstream is scheduled to release first-quarter results on May 04. The Zacks Consensus Estimate for its earnings is pegged at $1.18 per share, suggesting an increase from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.