ExxonMobil Corporation (NYSE:XOM) recently reported fourth-quarter 2017 earnings — excluding the impact of U.S. Tax Reform and Impairments — from non-U.S. upstream operations of $2,578 million, which surpassed the Zacks Consensus Estimate of $2,424 million. The profits were also higher than the year-ago quarter’s $1,686 million.
From upstream activities within the domestic market, the company incurred an adjusted loss of $60 million, narrower than the Zacks Consensus Estimate of a loss of $114 million and the year-ago quarter adjusted loss of $193 million.
Increased price realizations from liquids drove upstream results, partially negated by lower oil equivalent production.
Q4 Upstream Operations
Oil-Equivalent Production: Production averaged 3.991 million barrels of oil equivalent per day (MMBOE/d), lower than 4.121 MMBOE/d in the year-ago quarter. The quarterly output also lagged the Zacks Consensus Estimate of 4.190 MMBOE/d, primarily because of field decline.
Liquid Production: The worldwide production of liquid — crude and natural gas liquid — was 2.251 million barrels a day, down from 2.384 million barrels in fourth-quarter 2016. Liquid production also fell below the Zacks Consensus Estimate of 2.379 million barrels a day.
Natural Gas Production: Natural gas production was 10.441 MMCF/d (millions of cubic feet per day), up from 10.424 MMCF/d in the year-ago period but below the Zacks Consensus Estimate of 10.794 MMCF/d.
Impact of Upstream Business on Q4 Results
Among all three business segments — Upstream, Downstream and Chemical — the company generated the maximum profit from upstream operations. Despite success in upstream activities, ExxonMobil failed to impress investors with lower-than-expected results.
The integrated energy player reported adjusted earnings of 88 cents per share, which missed the Zacks Consensus Estimate of $1.06. Also, the bottom line declined from the year-ago quarter level of 90 cents. (See more on ExxonMobil Misses Q4 Earnings on Lower Throughput.)
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation Price, Consensus and EPS Surprise | Exxon Mobil Corporation Quote
Zacks Rank & Stocks to Consider
ExxonMobil carries a Zacks Rank #3 (Hold). A few better-ranked players in the energy sector are Statoil (OL:STL) ASA (NYSE:STO) , Pioneer Natural Resources Company (NYSE:PXD) and Cabot Oil & Gas (NYSE:COG) . All these stocks sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Headquartered in Stavanger, Norway, Statoil is a major international integrated energy player. The company is expected to witness year-over-year earnings growth of 17.1% in 2018.
Headquartered in Irving, TX, Pioneer Natural Resources Company is an upstream energy firm. The company delivered an average positive earnings surprise of 67.6% for the preceding four quarters.
Headquartered in Houston, TX, Cabot is also an upstream energy company. The firm will likely see year-over-year earnings growth of 128.4% in 2018.
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Statoil ASA (STO): Free Stock Analysis Report
Exxon Mobil Corporation (XOM): Free Stock Analysis Report
Pioneer Natural Resources Company (PXD): Free Stock Analysis Report
Cabot Oil & Gas Corporation (COG): Free Stock Analysis Report
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