Exxon Mobil Corporation XOM hinted that higher commodity prices for oil and natural gas will likely positively impact its first-quarter 2025 earnings, per a Reuters report. Additionally, increased oil refining margins are expected to boost its first-quarter earnings. The company forecast an increase in earnings of $900 million from that reported in the previous quarter.
In the first quarter, Brent crude prices came in at an average of $74.98 per barrel, suggesting a 1.3% increase quarter over quarter. However, year over year, the benchmark price witnessed an approximate decrease of 9%. Natural gas prices in the United States were approximately 30% higher in first-quarter 2025 as compared to the fourth quarter of 2024.
Being one of the largest energy firms in the United States, XOM’s earnings snapshot is closely followed by analysts to understand the broader industry performance. In an SEC filing, the company hinted that stronger oil refining margins should contribute an additional $300-$700 million to its earnings relative to the previous quarter.
Per the estimates shown by London Stock Exchange Group (“LSEG”), a leading global firm that provides financial markets data, ExxonMobil is projected to report an adjusted profit of $1.70 per share in the first quarter of 2025. The company is slated to release its first-quarter earnings on May 2, 2025.
ExxonMobil derives major part of its income from the production of oil and gas. The company’s earnings are highly influenced by the commodity pricing environment. According to data from the U.S. Energy Information Administration, the Natural Gas Henry Hub Spot price is expected to rise further in 2025, which should contribute positively to its earnings. Meanwhile, Brent crude prices are projected to remain relatively flat, providing stability in revenues.
XOM’s Zacks Rank & Key Picks
XOM, the U.S. oil and gas supermajor, currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks from the energy sector are Archrock Inc. AROC, Nine Energy Service NINE and Kinder Morgan, Inc. KMI. Archrock currently sports a Zacks Rank #1 (Strong Buy), and Nine Energy Service and Kinder Morgan carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
Nine Energy Service provides onshore completion and production services for unconventional oil and gas resource development. The company operates across key prolific basins in the United States, including the Permian, Eagle Ford, MidCon, Barnett, Bakken, Rockies, Marcellus and Utica, as well as throughout Canada. With a sustained demand for oil and gas in the future, the need for NINE’s services is anticipated to increase, which should position the company for growth in the long run.
Kinder Morgan is a leading North American midstream player with a stable and resilient business model, largely driven by take-or-pay contracts, which ensure consistent earnings and facilitate reliable capital returns to its shareholders.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report Kinder Morgan, Inc. (KMI): Free Stock Analysis Report Archrock, Inc. (AROC): Free Stock Analysis Report Nine Energy Service, Inc. (NINE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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