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ExxonMobil (XOM) Q2 Earnings Beat Estimates, Revenues Miss

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Exxon Mobil Corporation’s (XOM - Free Report) second-quarter 2022 earnings per share of $4.14 — excluding identified items — beat the Zacks Consensus Estimate of $3.80 and improved from the year-ago profit of $1.10.

Total revenues of $115,681 million missed the Zacks Consensus Estimate of $118,033 million but jumped from the year-earlier figure of $67,742 million.

The strong earnings were owing to higher realized commodity prices and solid refinery utilization, offset partially by increased ethane feed costs in North America.

Exxon Mobil Corporation Price, Consensus and EPS Surprise

Exxon Mobil Corporation Price, Consensus and EPS Surprise

Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote

Operational Performance

Upstream

The segment of ExxonMobil reported quarterly earnings of $11,371 million, improving from $3,185 million in the year-ago quarter. Higher commodity prices primarily drove this upside.

Operations in the United States recorded a profit of $3,749 million, skyrocketing from $663 million in the June quarter of 2021. The company reported a profit of $7,622 million from non-U.S. operations, improving from $2,522 million in the year-ago quarter.

Production: ExxonMobil’s total production averaged 3,732 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,582 MBoe/d a year ago.

Liquid production increased to 2,298 thousand barrels per day (MBbls/d) from 2,200 MBbls/d in the prior-year quarter. The outperformance was owing to higher production, primarily in the United States and Asia. Natural gas production was 8,606 million cubic feet per day (Mmcf/d), up from 8,294 Mmcf/d a year ago due to higher output from Europe.

Price Realization: In the United States, ExxonMobil recorded crude price realization of $107.78 per barrel, significantly higher than the year-ago quarter’s $63.29. The same metric for non-U.S. operations rose to $103.15 per barrel from $60.52.

Natural gas prices in the United States were recorded at $6.49 per thousand cubic feet (Mcf), higher than the year-ago quarter’s $2.78. Also, in the non-U.S. section, the metric improved to $19.68 per Mcf from $6.76.

Energy Products

The segment of ExxonMobil recorded a profit of $5,273 million against a loss of $856 million a year ago due to strong refinery utilization.

Chemical Products

This unit of ExxonMobil recorded a $1,076-million profit, down from earnings of $2,200 million in the year-ago quarter on increased ethane feed costs in North America.

Specialty Products

This unit of ExxonMobil recorded a $417-million profit, down from earnings of $750 million in the year-ago quarter, primarily on a decline in basestock industry margins.

Financials

During the quarter under review, ExxonMobil generated cash flow of $20,902 million from operations and asset divestments. The company's capital and exploration spending was $4,609 million.

At the end of second-quarter 2022, ExxonMobil’s total cash and cash equivalents were $18,861 million, and long-term debt amounted to $39,516 million.

Zacks Rank & Other Stocks to Consider

ExxonMobil currently carries a Zacks Rank #2 (Buy). Other top-ranked stocks that investors could look into include EOG Resources (EOG - Free Report) , BP plc (BP - Free Report) and Continental Resources, Inc. (CLR - Free Report) . While EOG Resources and Continental Resources carry a Zacks Rank #2, BP sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

EOG Resources, a leading oil and natural gas exploration and production company, is well placed to capitalize on the crude rally.

EOG Resources is strongly committed to returning capital to shareholders. Since its transition to premium drilling, the company has returned more than $10 billion in cash to stockholders. With the employment of premium drilling, EOG Resources will be able to reduce its cash operating costs per barrel of oil equivalent, thereby aiding its bottom line.

High oil prices are aiding BP’s upstream operations. The sizable refining and marketing operations of BP will protect it if the crude pricing scenario turns unfavorable again.  In 2022, it is likely to witness earnings growth of 106.5%. Over the past few quarters, BP has successfully been reducing long-term debt.

Continental Resources is also a leading upstream energy company with proven reserves in North Dakota and Oklahoma. The oil inventories of the company are among the best in the industry.

Headquartered in Oklahoma City, Continental Resources is likely to see earnings growth of 154.7% in 2022.