Exxon Mobil Q4 Outlook: Upstream Gains, Energy Products Struggle, Up To $2.6B Impairments Expected
Portfolio Pulse from Lekha Gupta
Exxon Mobil Corp (NYSE:XOM) expects Q4 results to be influenced by gas price fluctuations, with a positive impact on upstream earnings of $0.4 to $0.8 billion, but a negative impact from liquid prices in the same range. Specialty and chemical products earnings are projected to benefit from industry margin variations, while the Energy Products segment is anticipated to suffer a negative impact of $(1.7) to $(1.5) billion. Unsettled derivatives could affect upstream earnings by negative $0.3 billion to positive $0.1 billion. Upstream impairments of $2.4 to $2.6 billion are expected due to idle assets in California. XOM shares are up by 0.81% at $103.17.
January 05, 2024 | 4:10 pm
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NEUTRAL IMPACT
Exxon Mobil anticipates a mixed Q4 with positive upstream earnings from gas prices, offset by negative impacts from liquid prices and Energy Products margins. Impairments of up to $2.6 billion are expected for idle assets.
The mixed results in different segments of Exxon Mobil's business suggest a neutral short-term impact on the stock price. The positive news of upstream gains may be offset by the negative impacts in other areas and the substantial impairments. The slight increase in share price indicates a cautiously optimistic market response, but the full impact will depend on the final Q4 results.
CONFIDENCE 90
IMPORTANCE 85
RELEVANCE 100