Exxon Mobil Corp Stock Forecast:

According to the analysis of 22 analysts, the average target price for Exxon Mobil Corp (XOM:NYE) over the next 12 months is USD 128.47. The average analyst rating for the stock is “Buy.” However, Stock Target Advisor‘s own analysis rates the stock as “Neutral,” based on 6 positive signals and 7 negative signals. At the most recent closing, XOM’s stock price was USD 106.91. Over the past week, the stock price has increased by +1.43%, over the past month by +1.54%, and over the last year by +26.06%.

Exxon Mobil Corp. News:

Exxon Mobil Corp. announced on Wednesday that its second-quarter operating profits had experienced a significant decline. According to a regulatory filing, the company cited lower natural gas prices and weaker oil refining margins as the primary factors behind this downturn.

Operating earnings for the second quarter plummeted to approximately $7.8 billion, a substantial drop from the $17.85 billion recorded during the same period the previous year. The sharp decline can be attributed to the extraordinary surge in oil and gas prices in the prior year, driven by geopolitical tensions following Russia’s invasion of Ukraine. This geopolitical event had temporarily inflated global energy prices, resulting in record-level profits for many energy companies.

Exxon Mobil‘s second-quarter performance also fell short of its record-breaking first-quarter profit of $11.4 billion, as estimated by various business units compiled by Reuters. The company’s core business of pumping oil and gas, which constitutes its largest and most profitable segment, experienced a decline of approximately $2.2 billion in profits compared to the first quarter. This decline is particularly concerning as it highlights the challenges faced by the company in maintaining profitability amidst volatile market conditions.

One of the major contributing factors to the decline in operating profit was the drop in natural gas prices, which reduced Exxon Mobil’s earnings by approximately $2 billion. Lower natural gas prices have been a consistent theme in recent times, driven by factors such as increased production, reduced demand due to environmental concerns, and the growing adoption of renewable energy sources. These factors have resulted in a supply-demand imbalance in the natural gas market, putting downward pressure on prices and adversely impacting the profitability of companies heavily invested in this sector.