Exxon says rising oil and gas prices will give it an unexpected profit of at least $2.5 billion in the second quarter

Exxon Mobil Corp. said in a filing late Friday that it expects its second-quarter bottom line to rise by at least $2.5 billion from rising oil and gas prices, and billions more from higher margins for gasoline and other energy products.

Exxon XOM,
estimated between $1 billion and $1.4 billion above first quarter earnings due to crude oil price changes and between $1.5 billion and $1.9 billion from gas price changes.

Changes in margins for energy products could bring in between $4.4 billion and $4.6 billion in the quarter, plus between $700 million and $900 million from outstanding derivatives, the company said in the filing. Maintenance costs, a seasonal drop in natural gas demand, and other factors will partially offset this optimistic view.

Exxon shares rose 0.5% after the close on Friday after a 2.2% rise in regular trading. So far this year, Exxon shares are up 43%, while the S&P 500 index is down about 20%. SPX,

Exxon is expected to report second-quarter results in late July. Ahead of its first-quarter results in late April, the oil giant similarly told investors to expect billions more for its bottom line due to higher energy prices.

Analysts polled by FactSet expect the oil giant to report adjusted earnings of $2.96 per share on sales of $92.4 billion in the second quarter. This compares to adjusted earnings per share of $1.1 on sales of $67.7 billion in the second quarter of 2021.

The Biden administration and many others in Washington have called on Exxon and other energy companies to rein in gas prices. Last month President Joe Biden sent letters to major oil refiners urging them to take action to contain prices.

Exxon and rival Chevron Corp. cvx,
are the two remaining integrated energy companies in the US, meaning they produce oil and gas, and transport, store, and refine the hydrocarbons. ConocoPhillips spun off its refining business a decade ago and called it Phillips 66. PSX,
+2.90% Exxon says rising oil and gas prices will give it an unexpected profit of at least $2.5 billion in the second quarter

Brian Lowry

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