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ExxonMobil Expects Earnings Boost in Q1 From Higher Commodity Prices
XOMExxonMobil(XOM) ZACKS·2025-04-04 17:25

Group 1 - Exxon Mobil Corporation (XOM) anticipates that higher commodity prices for oil and natural gas will positively impact its first-quarter 2025 earnings, with a forecasted increase of 900millioncomparedtothepreviousquarter[1][3]Brentcrudepricesaveraged900 million compared to the previous quarter [1][3] - Brent crude prices averaged 74.98 per barrel in the first quarter, reflecting a 1.3% increase quarter over quarter, but a 9% decrease year over year [2] - Natural gas prices in the U.S. were approximately 30% higher in the first quarter of 2025 compared to the fourth quarter of 2024, which is expected to contribute positively to ExxonMobil's earnings [2][5] Group 2 - ExxonMobil is projected to report an adjusted profit of 1.70pershareinthefirstquarterof2025,withearningsreleasescheduledforMay2,2025[4]Thecompanyderivesasignificantportionofitsincomefromoilandgasproduction,anditsearningsarehighlyinfluencedbycommoditypricing[5]Strongeroilrefiningmarginsareexpectedtocontributeanadditional1.70 per share in the first quarter of 2025, with earnings release scheduled for May 2, 2025 [4] - The company derives a significant portion of its income from oil and gas production, and its earnings are highly influenced by commodity pricing [5] - Stronger oil refining margins are expected to contribute an additional 300-$700 million to earnings relative to the previous quarter [3] Group 3 - ExxonMobil currently holds a Zacks Rank 3 (Hold), with better-ranked stocks in the energy sector including Archrock Inc. (AROC), Nine Energy Service (NINE), and Kinder Morgan, Inc. (KMI) [6] - Archrock focuses on midstream natural gas compression and generates stable fee-based revenues [7] - Nine Energy Service provides onshore completion and production services across key U.S. basins, positioning the company for long-term growth due to sustained demand for oil and gas [8] - Kinder Morgan operates a resilient midstream business model driven by take-or-pay contracts, ensuring consistent earnings and reliable capital returns [9]