Exxon Mobil Corporation XOM is set to release third-quarter 2023 results on Oct 27, before the opening bell. Since the integrated energy player has significant exposure to upstream business, the 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 $4.6 billion, excluding identified items, in the second quarter of 2023.
Upstream Q2 Performance
Non-U.S. Operation: In second-quarter 2023, ExxonMobil reported earnings of $3.7 billion, excluding identified items, from upstream activities outside the United States. This marked a decline from the year-earlier figure of $7.6 billion.
U.S Operation: From domestic operations, ExxonMobil reported a profit of $0.92 billion, down from $3.5 billion in a year-ago quarter.
Q3 Oil & Gas Price
The pricing scenario of oil and natural gas was impressive in the third quarter of this year. Per data provided by the U.S. Energy Information Administration, the average West Texas Intermediate crude prices per barrel in July, August and September were $76.07, $81.39 and $89.43, respectively. Although the prices were not as high as in the year-ago quarter, the commodity prices were impressive and healthy.
Like oil, natural gas prices in the September quarter were healthier than in the second quarter, aiding the exploration and production activities of XOM.
Upstream Profit to Improve in Q3
ExxonMobil, in its recent SEC filing, expressed optimism over higher oil and natural gas prices aiding its third-quarter earnings. XOM expects its upstream business’s earnings in the third quarter to be supported by $1.1-$1.9 billion sequentially, thanks to increased liquid and gas prices.
Earnings & Revenue Projections
The solid upstream business is likely to have aided ExxonMobil’s earnings in the September quarter of 2023. The Zacks Consensus Estimate for its third-quarter earnings of $2.39 per share suggests a significant decline year over year. The same for sales of $88 billion indicates a 21.5% decrease.
ExxonMobil, carrying a Zacks Rank #2 (Buy), has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Our proven model doesn’t predict 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 not the case here.
Exxon Mobil Corporation Price and EPS Surprise
Exxon Mobil Corporation price-eps-surprise | Exxon Mobil Corporation Quote
Stocks to Consider
Here are some firms worth considering, as these have the right combination of elements to beat on earnings in the upcoming quarterly reports:
Viper Energy Partners LP VNOM currently has an Earnings ESP of +15.11% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.
The partnership is scheduled to release third-quarter earnings on Nov 6. The Zacks Consensus Estimate for VNOM’s earnings is pegged at 40 cents per share, suggesting a decline from the year-ago figure.
Antero Resources Corporation AR has an Earnings ESP of +1,219.97% and is currently a Zacks #3 Ranked player.
The company is scheduled to release third-quarter results on Oct 25.
Antero Midstream Corporation AM has an Earnings ESP of +8.17% and is a Zacks #2 Ranked player at present.
Antero Midstream is scheduled to release third-quarter results on Oct 25. The Zacks Consensus Estimate for AM’s earnings is pegged at 21 cents per share, suggesting a year-over-year improvement of 5%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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