Refining continues to do the heavy lifting for ExxonMobil
XOM•ExxonMobil exceeded analysts’ quarterly profit estimates on Friday, as surging refining margins lifted earnings from the operation to levels comparable with its higher-margin upstream businesses. The median price target from 28 brokerages is $180.50.
1. Refining supports earnings
ExxonMobil’s strong downstream business is helping offset production disruptions linked to the Middle East conflict, Morgan Stanley said, adding that the company is positioned to benefit from tight petroleum products markets. Morningstar said ExxonMobil’s large refining footprint leaves it well placed to benefit from strong refining margins, which it expects to stay elevated amid refinery outages and tight inventories.
2. Analysts see resilience
Evercore ISI said ExxonMobil could help bolster the longer-term upstream outlook and continue strengthening its strategic position versus peers. RBC Capital Markets said the company is well placed to weather oil market volatility and maintain strong refining margins, backed by its scale and long-term charters.
