Shell, Occidental Petroleum And Exxon Mobil Rise In Monday Premarket: What's Going On?
Written by Emily J. Thompson, Senior Investment Analyst
Source: Benzinga
OPEC+ Production Increase: OPEC+ has decided to maintain an output increase of 411,000 barrels per day for July, leading to a significant rise in oil prices, with Brent crude futures up by 2.95% and U.S. West Texas Intermediate crude up by 3.49%.
Market Implications: The decision comes amid competitive tensions between major oil companies like Chevron and Exxon Mobil over valuable oil resources, indicating potential impacts on the broader energy market despite Kazakhstan's refusal to cut production.
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Analyst Views on XOM
Wall Street analysts forecast XOM stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for XOM is 132.17 USD with a low forecast of 114.00 USD and a high forecast of 158.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
12 Buy
7 Hold
0 Sell
Moderate Buy
Current: 137.580
Low
114.00
Averages
132.17
High
158.00
Current: 137.580
Low
114.00
Averages
132.17
High
158.00
About XOM
Exxon Mobil Corporation is an energy provider and chemical manufacturer. The Company’s principal business involves exploration for, and production of, crude oil and natural gas; the manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima systems, carbon materials, and lithium. Its Upstream segment explores for and produces crude oil and natural gas. The Energy Products, Chemical Products, and Specialty Products segments manufacture and sell petroleum products and petrochemicals. Energy Products segment includes fuels, aromatics, and catalysts and licensing. Chemical Products segment consists of olefins, polyolefins, and intermediates. Specialty Products segment includes finished lubricants, basestocks and waxes, synthetics, and elastomers and resins.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Exxon Mobil's Q4 Earnings Outlook Amid Market Challenges
- Earnings Forecast: Analysts project Exxon Mobil's Q4 EPS at $1.68 with revenues around $82.28 billion, as lower upstream prices may weigh on results, but robust refining and record production in Guyana and the Permian Basin are expected to provide critical earnings support.
- Refining Resilience: Despite market headwinds, Exxon reported $7.5 billion in earnings in Q3, driven by record refinery throughput and over $14 billion in structural cost savings since 2019, showcasing the strength of its integrated business model.
- Venezuela Opportunity: With the Trump administration urging U.S. oil majors to rebuild Venezuela's energy sector, Exxon leadership is open to evaluating re-entry, although experts caution about historical risks of expropriation in this politically volatile environment.
- Future Growth Strategy: The company reaffirmed its “League of Our Own” strategy, with 10 major project startups expected to contribute over $3 billion in additional earnings by 2026, while maintaining a $20 billion annual share buyback program to return significant value to shareholders.
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Exxon and Chevron Set to Release Q4 Earnings Amid Investment Uncertainty
- Earnings Preview: Exxon (XOM) and Chevron (CVX) are set to release their Q4 earnings on January 30, as investors weigh Wall Street's emphasis on spending discipline against President Trump's push for significant investment in Venezuela's oil sector.
- Exxon Outlook: Analysts expect Exxon to report an EPS of $1.69, reflecting a 1.2% year-over-year increase, with revenue estimates at $81.67 billion, down 2.1% year-over-year; the company has beaten EPS estimates 88% of the time over the past two years, indicating strong earnings stability.
- Chevron Export Plans: Chevron plans to ramp up Venezuelan crude exports to the U.S. to 300,000 bpd in March, a significant increase from 100,000 bpd in December, despite facing short-term capital requirements and political uncertainty, yet the long-term potential remains promising.
- Investment Rating Analysis: Analysts rate both Exxon and Chevron as 'buy', but while Chevron's acquisition of Hess adds growth, its annualized upside is only 8.2% compared to Exxon's 17.6%, highlighting differences in capital allocation discipline between the two companies.
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