ExxonMobile (New York Stock Exchange:XOM) First-quarter operating profit eased from record levels last year, according to a 8-K presentation released on Tuesday, as oil and gas prices cooled compared to the last quarter of 2022.
Q1 Operating profit from the oil and gas business is expected to fall between $1 billion and $1.8 billion from a cumulative $8.2 billion in the fourth quarter of 2022, while unsettled derivatives could affect earnings. earnings between $1.8 billion and $2.2 billion in the most recent quarter.
Lower oil prices are expected to hit upstream earnings by $600M-$1B in Q1 compared to Q4, and lower natural gas prices should wipe $400M-$800M of upstream earnings, According to the document.
Exxon (XOM) shares closed -0.9% in trading on Tuesday, giving back some of the gains from the initial reaction to OPEC’s production cuts.
Seeking Alpha contributor Leo Nelissen says Exxon Mobil (XOM) is a big winner from production cuts, but Stone Fox Capital believes investors should “sell the OPEC+ scam.”