Energy Earnings Bonanza: ExxonMobil, Chevron and Phillips 66 Earnings Previews
Oct 24, 2023
It has been an exciting time in oil markets recently and the fun isn’t over yet. ExxonMobil (XOM), Chevron (CVX) and Phillips 66 (PSX) are set to report corporate fiscal results before the bell on Friday, Oct. 27. Meanwhile, oil prices continue to fall despite ongoing tensions in the Middle East.
Exxon is expected to post third-quarter earnings per share of $2.36 on an adjusted basis from $94.15 billion in revenue. Analysts, according to Bloomberg data, have grown increasingly optimistic over the past month, with those consensus figures up 5% and 3.3%, respectively.
Crude oil prices rose throughout the quarter to as high as $95 per barrel, which explains the increase in earnings per share (EPS) from Q2’s $1.94 per share figure. Investors will also be keyed into details over how executives plan to leverage the assets from Pioneer Natural Resources (PXD), a major Permian Basin operator.
The $60 billion all stock deal will double ExxonMobil’s footprint in the coveted U.S. oil and gas field, which should help the company’s upstream segment significantly. As of Tuesday, XOM is down 7.5% on a month-to-date basis, and the stock currently holds an implied volatility rank (IVR) of 41.7.
Chevron’s Q3 earnings are expected to cross the wires at $3.67 per share on an adjusted basis from $51.21 billion in revenue. As with XOM, analysts are more optimistic than they were last month, with the EPS and revenue estimates—per Bloomberg data—growing by 10.5% and 3.8%, respectively.
CVX is down nearly 6% in October, likely because of the 8% pullback in crude oil prices. However, oil prices should remain supportive over the short- to mid-term and help to underpin Chevron’s earnings. The Energy Information Administration (EIA) predicts an average brent spot price of $95 per barrel in 2024.
Chevron also made news recently with its announcement to acquire Hess Corp. (HES) in a deal valued at $53 billion. Hess, like Pioneer (PXD), is another large player in the Permian but also has assets in Guyana, one of the fastest-growing oil fields in the world. The company will acquire 30% ownership of the 11 billion barrels of oil equivalent, according to a statement from Chevron.
Phillips 66 will join XOM and CVX on Friday to report Q3 earnings. According to Bloomberg, analysts expect EPS to come in at $4.81 per share on an adjusted basis from $40.1 billion in revenue.
PSX’s estimates have fallen over the past month, however, with a 5.3% reduction to its EPS figure. The drop could stem from foreseen weakness in its chemicals segment, which makes up about 20% of its business, compared to less than 10% for XOM and CVX.
The stock price is down 6.18% for October and holds an IVR of 43.8 as of Tuesday afternoon
Thomas Westwater, a tastylive financial writer and analyst, has eight years of markets and trading experience. @fxwestwater
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