Exxon Mobil Corporation XOM will announce its fourth quarter 2023 results on February 2, before the opening bell. Due to the integrated energy player’s significant exposure to the upstream business, favorable oil and natural gas prices are likely to have helped the quarterly performance.
The above businesses of ExxonMobil are core operations. This segment includes the company’s activities on exploration and development of oil and natural gas resources. From operations inside and outside the U.S., the energy giant reported earnings of $6.1 billion in the third quarter of 2023, excluding certain items.
Upstream Q3 Performance
Non-US Operation: In the third quarter of 2023, ExxonMobil reported $4.6 billion in earnings from operations outside the United States, excluding specified items. This represents a decrease of $8.7 billion compared to the previous year.
US Operation: From domestic operations, ExxonMobil reported a profit of $1.6 billion, up from $3.1 billion in the year-ago quarter.
Q4 Oil and Gas Price
According to the data provided by the US Energy Information Administration, the average spot prices of a barrel of West Texas Intermediate crude oil in October, November and December were 85.64, 77.69 and 71.90 dollars, respectively. Although prices were not as high as last year’s quarter, they were impressive and healthy with commodity prices above $70/bbl.
Natural gas prices were healthier in the December quarter than in the third quarter, helping XOM’s exploration and production activities.
Gas prices to support 4th-quarter earnings
ExxonMobil said in its latest SEC filing that it is optimistic that rising natural gas prices helped its earnings in the fourth quarter, but expects lower oil prices to offset the positive. It expects earnings from its upstream business to be $0.4 billion to $0.8 billion sequentially supported by higher gas prices in the fourth quarter, but hurt by $0.8 billion to $0.4 billion due to lower liquid prices.
Favorable oil and gas prices are likely to support ExxonMobil’s December 2023 earnings.
Carrying a Zacks Rank #3 (Hold), ExxonMobil has an Earnings ESP of +0.47%. You can spot the best stocks to buy or sell before the announcement with our Profit ESP Filter.
Our validated model predicts revenue growth for ExxonMobil this time. A combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 increases the chances of a profit, which is the case here.
Other stocks to consider
Here are some other firms worth considering, as they also have the right combination of elements to turn a profit in the upcoming quarterly reports:
Western Midstream Partners LP WES currently has an Earnings ESP of +6.96% and a Zacks Rank of #3. You can see Here’s a complete list of today’s Zacks #1 Rank stocks.
The partnership is scheduled to report fourth-quarter earnings on February 21. The Zacks Consensus Estimate for WES’s earnings was set at 78 cents per share, down from a year ago.
Williams WMB has an Earnings ESP of +1.82% and is currently a Zacks #3 ranked player.
The company is scheduled to announce its fourth quarter results on February 14.
Murphy USA Inc. MUSA has an Earnings ESP of +10.67% and is currently a Zacks #3 ranked player.
Murphy USA will report its fourth quarter results on February 7. The Zacks Consensus Estimate for MUSA’s earnings is set at $5.97 per share, which represents a year-over-year improvement of almost 15%.
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