Exxon Mobil Corp. signaled on Sept. 30 that higher oil and gas prices would boost third-quarter earnings by as much as $1.5 billion over the second quarter.
Natural gas prices in the U.S. have more than doubled this year and oil prices are up 52% as energy demand recovers from the COVID-19 pandemic.
Exxon Mobil also has been cutting costs and laying off personnel following a historic loss in 2020. Lower costs coupled with the recent rebound in oil and gas have driven profit sharply higher.
Natural gas prices should give the U.S. oil producer the largest increase in operating profit in the quarter, the company signaled in a corporate filing. Profit from natural could rise between $500 million-900 million this quarter over last, it said.
U.S. natural gas prices were trading at almost $6 per MMBtu on Sept. 30.
Healthier refining margins could add from $500 million to $700 million in operating profits this quarter. Exxon Mobil quarter results will be posted on Oct. 29.
Chemical margins, on the other hand, could cut operating profit by between $200 million and $400 million in the quarter, the company said in the filing.
It also said unsettled derivatives could reduce operating profit from oil and gas production by between $100 million-500 million in the period.
Last year, the company suffered a $680 million loss in the third quarter on lower oil prices and production volumes.
Exxon Mobil shares closed on Sept. 30 at $58.82, up 43% this year.
Recommended Reading
Hess Midstream Announces 10 Million Share Secondary Offering
2024-02-07 - Global Infrastructure Partners, a Hess Midstream affiliate, will act as the selling shareholder and Hess Midstream will not receive proceeds from the public offering of shares.
EQT CEO: Biden's LNG Pause Mirrors Midstream ‘Playbook’ of Delay, Doubt
2024-02-06 - At a Congressional hearing, EQT CEO Toby Rice blasted the Biden administration and said the same tactics used to stifle pipeline construction—by introducing delays and uncertainty—appear to be behind President Joe Biden’s pause on LNG terminal permitting.
TC Energy’s Keystone Back Online After Temporary Service Halt
2024-03-10 - As Canada’s pipeline network runs full, producers are anxious for the Trans Mountain Expansion to come online.
Enbridge Announces $500MM Investment in Gulf Coast Facilities
2024-03-06 - Enbridge’s 2024 budget will go primarily towards crude export and storage, advancing plans that see continued growth in power generated by natural gas.
Plains All American Names Michelle Podavin Midstream Canada President
2024-03-05 - Michelle Podavin, who currently serves as senior vice president of NGL commercial assets for Plains Midstream Canada, will become president of the business unit in June.