ExxonMobil (XOM) Expects Soft Gas Prices to Hurt Q2 Earnings

Group 1: Exxon Mobil Corporation (XOM) - Exxon Mobil Corporation expects a sequential decline in second-quarter earnings for 2024 due to soft natural gas prices, projecting a decrease of $300 million to $700 million [1] - The company anticipates that favorable crude pricing in the June quarter will offset the negative impact from natural gas prices [1] - Unfavorable changes in industry margins are expected to affect earnings from refining activities by $1.1 billion to $1.5 billion, excluding the impact of the acquisition of Pioneer Natural Resources [1] - The acquisition of Pioneer Natural Resources is projected to result in production of 500-550 thousand barrels of oil equivalent per day, impacting earnings from May 3 to June 30 [2] - The Zacks Consensus Estimate for XOM's earnings per share in the second quarter is $2.34, with a current Zacks Rank of 3 (Hold) [2] Group 2: Competitors and Industry Insights - Matador Resources Company has entered into a $1.91 billion agreement to expand its footprint in the Delaware Basin, expected to close in late third quarter of 2024, with projected production exceeding 180,000 barrels of oil equivalent per day [3] - Chevron Corporation generates most of its earnings from upstream operations and has a strong foothold in the Permian Basin, benefiting from minimum royalty payments and favorable cash flows [4] - SM Energy has agreed to acquire 80% of XCL Resources' oil and gas assets in the Uinta Basin for $2.04 billion, expected to close in September, which will enhance its inventory and oil production [4]