Exxon rises to all-time high but sees Q3 earnings hit from lower oil prices

Exxon Mobil (NYSE:XOM) +1.1% in early trading Friday to an all-time intraday high $124.16, as crude oil futures extend gains in their best week since March 2023 with the market bracing for a possible strike by Israel on Iran’s crude facilities in retaliation for the ballistic missile attack earlier this week.

Exxon’s (XOM) rise comes despite saying lower oil prices and refining margins could reduce Q3 by as much as $2B compared with Q2, partly mitigated by gains from timing effects and a reduction in scheduled maintenance at refineries.

The company disclosed in an SEC filing that lower liquids prices likely reduced its Q3 upstream earnings by $600M-$1B and weaker refining margins also could knock $600M-$1B off Q3 results.

Goldman Sachs reaffirmed its Neutral rating on Exxon (XOM), noting the company’s implied EPS of ~$1.92/share comes in slightly below the bank’s projection of $2.01 and the FactSet consensus of $1.96.