Welcome to Extreme Investor Network, your go-to source for all things finance and investing. Today, we dive into the latest news from the world of Exxon Mobil Corp and their first quarter earnings report.
Exxon Mobil Corp recently reported a 28% year-on-year drop in first quarter profits, missing analysts’ estimates. Despite weaker refining margins and lower natural gas prices, the largest U.S. oil company posted earnings of $8.22 billion, or $2.06 per share, compared to $11.43 billion the previous year. The stock saw a slight dip in pre-market trading, down 2% to $118.50, as it fell short of Wall Street analysts’ consensus of $2.20 per share.
Earnings from oil and gas production fell 14% due to lower natural gas prices, while refining tumbled 67% on weaker margins. On the bright side, the chemicals business saw earnings more than double, thanks to lower input costs and higher margins. Despite the drop in profits, Exxon’s first quarter results were the second highest for a first quarter in the past decade.
Exxon’s capital spending was at its lowest in seven quarters, and the company managed to increase its structural cost savings by $400 million. Ending the quarter with $33.3 billion in cash, Exxon is in the process of closing a $60 billion deal for Pioneer Natural Resources. This acquisition will make Exxon the largest oil and gas producer in the top U.S. shale field, doubling its output to more than 1.3 million barrels of oil equivalent per day.
In addition to the deal with Pioneer, Exxon is in a dispute with Chevron and Hess over assets in Guyana, where the biggest oil finds in the past two decades have been made. The arbitration panel will decide if Exxon has preemption rights over Hess’ Guyana assets, which could impact Chevron’s proposed takeover of Hess.
Stay tuned to Extreme Investor Network for more updates on Exxon Mobil Corp and other major players in the finance and investing world. Don’t miss out on the latest news and insights to help you make informed decisions in the ever-changing financial landscape.
