News

: Exxon says rising oil and gas prices will net it a Q2 windfall profit of at least $2.5 billion

Exxon Mobil Corp. said in a filing late Friday it expects a boost of at least $2.5 billion to its bottom line in the second quarter from rising prices for oil and gas, with billions more coming from higher margins for gasoline and other energy products.

Exxon
XOM,
+2.23%

estimated between $1 billion and $1.4 billion over first-quarter profit due to crude-price changes and between $1.5 billion and $1.9 billion in changes in gas prices.

Changes in margins for energy products could bring between $4.4 billion and $4.6 billion in the quarter, plus between $700 million and $900 million from derivatives not yet settled, the company said in the filing. Maintenance expenses, seasonal natural gas demand drop and others items will offset some of that upbeat view.

Exxon stock rose 0.5% in the after-hours session Friday, after ending the regular trading day up 2.2%. So far this year, Exxon shares advanced 43%, contrasting with losses of around 20% for the S&P 500 index.
SPX,
+1.06%

Exxon is slated to report second-quarter earnings in late July. Ahead of its first-quarter results in late April, the oil giant similarly told investors to expect billions more to its bottom line because of higher energy prices.

Analysts polled by FactSet expect the oil giant to report adjusted second-quarter earnings of $2.96 a share on sales of $92.4 billion. That would compare with adjusted EPS of $1.1 on sales of $67.7 billion in the second quarter of 2021.

The Biden administration and many others in Washington have called on Exxon and other energy companies to rein in gasoline prices. Last month, President Joe Biden sent letters to major oil refiners to ask them to take action to curb prices.

Exxon and rival Chevron Corp.
CVX,
+1.19%

are the two remaining integrated energy companies in the U.S., meaning they produce oil and gas as well as transport, store, and refine the hydrocarbons. ConocoPhillips spun off its refining business a decade ago, naming it Phillips 66.
PSX,
+2.90%

What is your reaction?

Excited
0
Happy
0
In Love
0
Not Sure
0
Silly
0

You may also like

Leave a reply

Your email address will not be published.

More in:News