ExxonMobil flags $1.3B upstream Q3 hit from oil prices, offset by $4.5B refining-margin windfall; shares hit record high

What happened

ExxonMobil said in an SEC filing Friday that changes in oil (liquids) prices will lower its third-quarter upstream earnings by $1.3 billion versus the second quarter, when upstream earnings were $7.9 billion. But the same filing showed changes in refining margins adding roughly $4.5 billion to Q3 earnings on top of $4.1 billion in Q2, plus about a $0.3 billion boost from natural gas prices — more than offsetting the upstream hit. Exxon shares rose 1.5% to $177.32 on Friday, on pace to close at a record high, after gaining 45% year-to-date through Thursday as elevated oil prices from the U.S.-Iran conflict lifted the energy complex. The company will report official Q3 earnings on October 30.

Who’s affected

• ExxonMobil (XOM) — upstream earnings take a $1.3B hit from liquids-price changes, but refining margins add ~$4.5B and natural gas adds ~$0.3B, leaving the net snapshot positive; shares rose 1.5% to a record high. Chevron (CVX) — rose 1.9% in sympathy as the refining-margin tailwind applies across integrated majors. Energy sector broadly — the filing signals Q3 refining strength offsetting upstream softness for integrated oil majors.

Sources

reuters.combarrons.com