KEY TAKEAWAYS
- ExxonMobil said it expects to take an up to a $900 million hit to its upstream earnings in the fourth quarter versus the previous three months amid falling oil prices.
- Lower liquids prices are set to bring down its upstream earnings by between $500 million to $900 million in the fourth quarter of 2024 compared with the third quarter.
- The forecasted earnings hit comes at a time when demand for oil is soft and there is an oversupply of the commodity.
ExxonMobil (XOM) said it expects to take an up to a $900 million hit to its upstream earnings in the fourth quarter versus the previous three months amid falling oil prices.
Lower liquids prices are set to bring down its upstream earnings by between $500 million to $900 million in the fourth quarter of 2024 compared with the third quarter, the oil giant said in a filing with the Securities and Exchange Commission (SEC).
The forecasted earnings hit follows the oil company’s announcement last month that it is doubling down on its commitment to pumping more oil and gas. The long-term plan focuses on taking advantage of its nearly $60 billion purchase of Pioneer Natural Resources last year, it said.
Q4 Forecast Comes Amid Oil Glut
ExxonMobil’s forecast is also happening at a time when demand for oil is soft and there is an oversupply of the commodity. Last month, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced they will keep voluntary production cuts of 2.2 million barrels per day (B/D) in place until the end of March.
ExxonMobil shares are falling about 0.5% in premarket trading Wednesday and have declined around 4% in the past month.
:max_bytes(150000):strip_icc()/GettyImages-2173246357-22d1d28fffa748cd89ac078b48fb44ab.jpg?w=1200&resize=1200,0&ssl=1&description=ExxonMobil+Says+Lower+Oil+Prices+Will+Hit+Q4+Earnings){kind=link}