by Exxon Mobil, the largest U.S. oil producer, warned on Monday that lower oil and gas prices are expected to slash its second-quarter earnings by around $1.5 billion compared to the previous quarter.
The update, released ahead of official earnings reports, offers an early indication of how falling energy prices are weighing on the oil and gas sector. With Brent crude and U.S. natural gas both posting sharp declines in Q2, investors are bracing for weaker performance across the industry.
Earnings Impact:
- Exxon Mobil signals a $1.5 billion drop in second-quarter earnings compared to Q1.
- The decline is mainly due to lower oil and gas prices.
Market Conditions:
- Brent crude averaged $66.71 per barrel in Q2 — down 11% from Q1.
- U.S. natural gas prices fell by 9% over the same period.
- Increased OPEC+ crude supply contributed to the price decline.
Past Performance:
- Q1 upstream earnings: $6.8 billion.
- Q1 total profit: $7.71 billion.
Analyst Expectations:
- Wall Street expects $1.53 EPS (adjusted) for Q2, per LSEG data.
Sector Watch:
- Exxon’s update is seen as a bellwether for the oil and gas sector’s Q2 performance.
