Exxon Filing shows probable income when stocks shake from falling oil prices
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People put petrol in cars at an Exxon station
Eric Thayer / Getty Images
Exxon
Mobile (XOM) released an update of factors affecting fourth quarter results that suggest likely earnings when it reports February 1st. The stock is on the rise, even when oil prices fall.
At the end of Thursday, Exxon (ticker: XOM) sent a submission to the SEC listing the factors that will affect fourth-quarter earnings, including “market dynamics, seasonal patterns and planned activities.” There are many numbers divided into segments, but Wall Street quickly threw itself into the archive to calculate.
Credit Suisse analyst Manav Gupta notes that Exxon’s upstream business – the division dedicated to oil exploration and drilling – could increase by $ 2 billion or more, and combined with all the other changes, net income will be $ 8.25 billion, or $ 1.93. a share in the middle of the area. That would be well above Wall Street’s forecast of $ 1.72 and his own $ 1.64. As a result, Gupta raised its fourth-quarter estimate to $ 1.92.
The filing, says Gupta, should also be good news for the other oil companies in his coverage, including
Chevron
(CVX),
Suncor Energy
(HIS),
Cenovus energy
(CVE),
Imperial oil
(IMO), and
Canadian natural resources
(CNQ).
Barclays analyst Jeanine Wai came up with a slightly different midpoint, for $ 1.96 per share, but the result is the same – she raised her estimate. Wai now expects Exxon to earn $ 1.96, up from $ 1.80.
The news was good enough to lift the Exxon share, despite falling oil prices. WTI Crude futures, the US benchmark index, fell 1.3% to $ 76.02, but falling in pre-market trading, the Exxon stock was up 0.5% at. 10:48, though
Energy Select Sector SPDR ETF
(XLE) fell 0.1%.
Write to Ben Levisohn at ben.levisohn@barrons.com