ExxonMobil Corporation (XOM) shares are on the rise today, fueled by the company’s latest earnings guidance and recent volatility in oil prices. While the oil giant anticipates a decrease in third-quarter upstream earnings due to fluctuations in oil prices, the impact is expected to be partially offset by positive contributions from gas prices and changes in industry margins.
ExxonMobil projects that changes in oil prices will reduce its upstream earnings by $1.0 billion to $0.6 billion quarter-over-quarter. However, variations in gas prices are expected to impact its upstream results by between $(0.2) billion and $0.2 billion. The company also forecasts that industry margin shifts will affect energy products earnings by $(1.0) billion-$(0.6) billion and both specialty products earnings and chemical products earnings by $0.0 billion-$0.2 billion each.
Analysts, according to Benzinga Pro, are expecting ExxonMobil to report third-quarter adjusted earnings per share of $1.97 and revenues of $96.136 billion. It’s worth noting that oil prices had been trending downward before experiencing a surge this week amid escalating tensions in the Middle East. Oil prices climbed on Wednesday, driven by concerns about potential supply disruptions in the region and warnings from the Organization of the Petroleum Exporting Countries (OPEC) and its allies.
Investors interested in gaining exposure to ExxonMobil can consider ETFs like the EA Series Trust Strive U.S. Energy ETF (DRLL) and Westwood Salient Enhanced Energy Income ETF (WEEI).
In premarket trading on Friday, XOM shares are up 0.75% at $123.50.
