Exxon Mobil Corp.'s oil and gas producing and refining businesses will report operating losses in the second quarter, it said in a regulatory filing on July 2, setting the stage for the company to post another quarterly loss this year.
Oil prices are down 35% since January as the COVID-19 pandemic slashed demand and a global glut forced widespread production cuts. Rivals Royal Dutch Shell Plc and BP Plc have disclosed massive spending cuts and write-downs due to the price drop.
Exxon Mobil faces a loss for the quarter of $2.3 billion, or 57 cents per share, according to estimates from Refinitiv IBES. It would be the second this year after a $610 million first-quarter deficit. Results are due out July 31.
The filing did not refer to asset writedowns. However, in a change from prior quarterly updates, Exxon Mobil noted the list may not include all charges. Shell outlined an up to $22 billion charge and BP an up to $17.5 billion write-down on the oil demand and price drops.
Exxon Mobil's oil and gas operations will swing to a loss compared with the first quarter because of sharply lower prices. That drop reduced the unit's operating profit by between $2.5 billion and $3.1 billion, the company said in its investor snapshot of operations.
Refining results will fall by between $800 million and $1.l billion compared with the first quarter on weaker margins and logistics differentials, it said.
The second quarter for all companies will be "dismal" due to oil and gas prices, refining margins and production, said Jennifer Rowland, analyst with Edward Jones.
Exxon Mobil last quarter cut output by up to 400,000 bbl/d and capex by 30%, much of it in its shale business.
Shares have fallen about 38% this year. They were up 47 cents at $44.18 in premarket trading on July 2.
Recommended Reading
Aris CEO Brock Foresees Consolidation as Need for Water Management Grows
2025-02-14 - As E&Ps get more efficient and operators drill longer laterals, the sheer amount of produced water continues to grow. Aris Water Solutions CEO Amanda Brock says consolidation is likely to handle the needed infrastructure expansions.
Halliburton, Sekal Partner on World’s First Automated On-Bottom Drilling System
2025-02-26 - Halliburton Co. and Sekal AS delivered the well for Equinor on the Norwegian Continental Shelf.
E&P Highlights: March 3, 2025
2025-03-03 - Here’s a roundup of the latest E&P headlines, from planned Kolibri wells in Oklahoma to a discovery in the Barents Sea.
How DeepSeek Made Jevons Trend Again
2025-03-25 - As tech and energy investors began scrambling to revise stock valuations after the news broke, Microsoft Corp.’s CEO called it before markets open: “Jevons paradox strikes again!”
TGS to Reprocess Seismic Data in India’s Krishna-Godavari Basin
2025-01-28 - TGS will reprocess 3D seismic data, including 10,900 sq km of open acreage available in India’s upcoming 10th Open Acreage Licensing Policy (OALP) bid round blocks.