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ExxonMobil (XOM) Earnings & Revenues Miss Estimates in Q1

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Exxon Mobil Corporation (XOM - Free Report) reported weak first-quarter 2019 results due to significant lower contributions from its downstream and chemical businesses.

This largest publicly-traded integrated energy company’s earnings per share of 55 cents lagged the Zacks Consensus Estimate of 75 cents. Moreover, the bottom line declined significantly from the year-earlier figure of $1.09.

Total revenues of $63,625 million fell short of both the Zacks Consensus Estimate of $67,927 million and the year-ago sales of $68,211 million.

Operational Performance

Upstream: Quarterly earnings came in at almost $3 billion, lower than $3.5 billion in the year-ago quarter. Affected natural gas prices on account of warmer weather along with less production of the commodity hurt the segment. A bleak crude pricing scenario as compared to the same in first-quarter 2018 also hampered the upstream business.

Total production averaged 3.981 million barrels of oil-equivalent per day (MMBOE/d), higher than 3.889 MMBOE/d a year ago.

Liquid production increased year over year to 2.327 million barrels per day (MMB/D) from 2.216 MMB/D, courtesy of the ramped-up activities in the prolific Permian Basin. However, natural gas production was 9.924 BCF/d (billions of cubic feet per day), down from 10.038 BCF/d in the year-ago period.

Downstream: The segment incurred a loss of $256 million against the year-ago quarterly profit of $940 million due to significant scheduled maintenance activities and the contraction in fuel margin.

ExxonMobil's refinery throughput averaged 3.9 million barrels per day (MMB/D), lower than the year-earlier level of 4.3 MMB/D.

Chemical: This unit contributed to the company’s $518 million profit, down from the marginally above $1 billion in the prior-year quarter, induced by a soft margin.


During the quarter under review, ExxonMobil generated cash flow of $8.5 billion from operations and asset divestments, down from almost $10 billion in the year-ago quarter. This energy giant returned $3.5 billion to its shareholders through dividends. Following its significant investment in the prolific Permian Basin in the United States, the company’s capital and exploration spending shot up 42% year over year to $6.9 billion.

Zacks Rank and Key Picks

Currently, ExxonMobil carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy space are ProPetro Holding Corp. (PUMP - Free Report) , Parsley Energy and TransCanada Corp. (TRP - Free Report) , each holding a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.   

The Zacks Consensus Estimate for Midland, TX-based ProPetro’s 2019 earnings is pegged at $2.42, indicating 21% growth over the year-ago reported figure. Next year’s forecast is $2.70, hinting at 11.5% growth.

The Zacks Consensus Estimate for Austin, TX-based Parsley’s 2019 earnings stands at $1.53, implying an 8.5% improvement over the prior-year reported numbers. Next year’s projection is $2.47, calling for 61.8% growth.

TransCanada flaunts a 100% track record of estimate outperformance over the last four quarters on average rate of 19%.

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