How might the U.S.-Israeli war affect Exxon Mobil's earnings?

Exxon Mobil anticipates that higher oil and gas prices due to the U.S.-Israeli conflict could boost its first-quarter upstream earnings by up to $2.9 billion.

What is the predicted impact on Exxon's downstream earnings?

Downstream earnings could be negatively impacted by about $5.3 billion, primarily due to timing effects related to accounting rules.

How has the war affected Exxon's production levels?

The company's first-quarter oil and gas production is expected to be 6% lower compared to the fourth quarter due to war-related disruptions.

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War's Oil Surge: Exxon May Gain Billions

8 Apr

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Summary

Higher oil prices may boost Exxon's earnings by $2.9 billion.
Downstream earnings could face a $5.3 billion impact due to timing.
War-related disruptions caused a 6% reduction in oil and gas production.

War's Oil Surge: Exxon May Gain Billions

Exxon Mobil has indicated that the ongoing U.S.-Israeli conflict impacting Iran could lead to a substantial increase in its first-quarter upstream earnings, potentially reaching $2.9 billion. This surge is attributed to the rise in oil and gas prices resulting from the hostilities and disruptions in the Middle East. The conflict, which began on February 28, caused oil prices to climb significantly, with some production fields ceasing operations after the closure of the Strait of Hormuz.

Conversely, Exxon's downstream earnings might see a negative impact of approximately $5.3 billion. This is partly due to timing effects related to accounting rules for its trading program, as highlighted by Chief Financial Officer Neil Hansen. He clarified that these impacts are temporary and are expected to resolve in later quarters as shipments are completed and underlying transactions finalize.