BUZZ-Street View: Exxon's cost savings measures, volume growth to boost earnings
Exxon Mobil's shares rose to $114.40 premarket, driven by anticipated cost savings and volume growth. The company expects third-quarter crude price changes to impact upstream earnings between negative $100 million and positive $300 million. Stronger refining margins could add $300 million to $700 million to earnings. Analysts from BMO and UBS highlight structural cost savings and volume growth from the Yellowtail project as potential tailwinds, while Piper Sandler notes larger-than-expected negative timing effects in the upstream segment.
Shares of energy major Exxon Mobil (XOM.N) rise marginally to $114.40 premarket
Exxon says changes in crude price over the third-quarter to impact upstream earnings from negative $100 million to as much as a positive $300 million
XOM adds stronger margins in the refining business could boost earnings by $300 million to $700 million, compared to Q2
SAVINGS BOOST
BMO Capital Markets (“market perform”, PT: $123) says structural cost savings of the company could be a tailwind, along with the advantaged volume growth from its Yellowtail project in Guyana which started up earlier this year
UBS (“buy,” PT: $143) says the SEC filing didn’t include factors such as growing upstream volumes, ongoing cost reduction efforts, and its shift towards higher value, all seen as potentially providing an upside to XOM
Piper Sandler says the impact of around $200 million of negative “timing effects” in the upstream segment was larger than anticipated, even as implied refining was slightly above its estimate
