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ExxonMobil (XOM) Projects Asset Write-Down to Ail Q4 Results

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Zacks Equity Research
·2 min read
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Exxon Mobil Corporation XOM, in a regulatory filing, announced that its results for the December quarter are likely to be favoured by higher margins from the chemical business, and improved prices for oil and natural gas.

However, the integrated energy giant warned that asset write-down of up to $20 billion will overshadow the positive developments. Importantly, the company has made sequential comparisons while putting forward projected numbers for the December quarter.

Since the prices of oil and natural gas have improved in the fourth quarter, ExxonMobil projects the upstream business’ results to improve by $200 million to $1 billion sequentially. For the September quarter, the company reported a loss of $383 million from its oil and gas operations.

Moreover, the chemical business unit is likely to witness an improvement in operating profit by $200 million to $400 million in the December quarter relative to the September quarter of 2020, thanks to higher chemical margin. However, the company expects the refining business to incur loss in the fourth quarter.

Investors should note that the range for impairment charge of assets, comprising mostly natural gas properties, has been narrowed from the prior estimation of $17-$20 billion, thanks to its regulatory filings.

Exxon Mobil Corporation Price

Exxon Mobil Corporation Price
Exxon Mobil Corporation Price

Exxon Mobil Corporation price | Exxon Mobil Corporation Quote

Currently, ExxonMobil carries a Zacks Rank #3 (Hold). Meanwhile, some better-ranked players in the energy space include Summit Midstream Partners, LP SMLP, DCP Midstream, LP DCP and HighPoint Resources Corporation HPR. While Summit Midstream carries a Zacks Rank #2 (Buy), DCP Midstream and HighPoint sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Summit Midstream has seen upward earnings estimate revisions for 2020 in the past seven days.

DCP Midstream has seen upward estimate revisions for 2020 earnings in the past 30 days.

HighPoint is likely to see earnings growth of 167.5% in 2020.

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Exxon Mobil Corporation (XOM) : Free Stock Analysis Report
 
Summit Midstream Partners, LP (SMLP) : Free Stock Analysis Report
 
DCP Midstream Partners, LP (DCP) : Free Stock Analysis Report
 
HIGHPOINT RESOURCES CORP (HPR) : Free Stock Analysis Report
 
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