The Zacks Analyst Blog Highlights ExxonMobil, Shell and BP

For Immediate ReleaseChicago, IL – July 16, 2025 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include: ExxonMobil XOM, Shell SHEL and BP BP.Here are highlights from Tuesday’s Analyst Blog:Big Oil's Q2 Outlook: Downstream Gains, Upstream PainsThe upcoming earnings reports for big oil and energy companies will tell a story of two different worlds. On the one hand, we will likely see lower profits from simply drilling for oil and gas (or the 'upstream' side of the business). On the other hand, businesses that refine crude oil into products like gasoline and make chemicals (known as 'downstream') might show surprising strength.Major players like ExxonMobil, Shell and BP have already given us hints. They are seeing profits squeezed from falling oil and gas prices. So, as these companies share their results in the coming weeks, everyone will be watching their ability to control costs, how well their refineries performed, and if demand for energy is truly recovering.ExxonMobil: Leaning on Refineries to Counter Lower PricesExxonMobil, the world's largest integrated energy company, expects its second-quarter earnings to take a hit because of lower oil and gas prices. The American supermajor recently warned that its upstream earnings could fall by as much as $1.9 billion from the first-quarter level. This big drop is mostly due to oil prices bringing in $1.2 billion less, and natural gas prices adding up to a $700 million hit. Data from the U.S. Energy Information Administration ("EIA") confirms this trend: WTI crude oil averaged just $63.54 in April and $68.17 in June, down from $75.74 in January.But it's not all bad news for ExxonMobil. It might actually see a modest boost from its refining and chemical businesses, with refining profits potentially adding between $100 million and $500 million. However, planned maintenance work and other timing issues could lessen those gains. With the Zacks Consensus Estimate for ExxonMobil's EPS down nearly 33% from last year to $1.44, the pressure is squarely on its non-drilling segments to stabilize the overall results.BP: Production Up, But Prices DownLondon-based BP is heading into its second-quarter earnings with a mixed bag of expectations. On the bright side, the Zacks Rank #3 (Hold) company expects to pump out more oil and gas than initially predicted, and even more than it did in the first quarter. This boost is largely thanks to higher output from their U.S. shale operations. However, BP has also warned that lower crude oil prices will hit its drilling profits hard, by about $800 million. Weaker natural gas prices are also expected to weigh on earnings, though to a lesser extent.You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.Where BP might really shine is in its refining business. It anticipates refining profits jumping from $15.20 per barrel in the first quarter to $21.10 in the second. This could potentially boost its "customers and products" segment by $300 million to $500 million. Plus, BP expects its total debt to dip below the first-quarter level of $27 billion, indicating sound financial management. With the consensus EPS mark at 60 cents (down 40% from last year), any gains from refining will be vital in cushioning the blow from weaker oil and gas prices.Shell: Navigating Headwinds With Refining StrengthEurope's largest oil company, Shell, is also facing a challenging quarter, with several parts of its business dealing with headwinds. The company expects second-quarter average production for its Integrated Gas division to be 900,000–940,000 barrels of oil equivalent per day compared with 927,000 achieved in the January-March period. LNG output is now expected to be between 6.4 million and 6.8 million tons, and gas trading results are likely to be weaker than in the first quarter. On the traditional drilling side, production is expected to decline to 1.66 million–1.76 million barrels of oil equivalent per day, due to both scheduled maintenance and the sale of its Nigerian SPDC assets.Still, Shell's refining margins look strong, rising from $6.20 per barrel in the first quarter to $8.90 per barrel in the second. This is supported by better utilization of its refineries. However, the company's chemicals business is expected to report a loss due to unplanned shutdowns at its Monaca plant. Shell's renewables and energy solutions segment's bottom line will likely be between $400 million loss and $200 million profit. The Zacks Consensus Estimate for Shell's EPS is pegged at $1.44, down 27% from last year, as the company relies on its marketing and refining arms to offset broader weakThe Outlook: Silver Linings for Energy InvestorsAs is evident, the refining side of the energy business is showing remarkable strength. Companies like ExxonMobil, BP and Shell are seeing much better profits from turning crude oil into fuels and other products. That's why, despite the pressure on oil and gas drilling operations due to lower prices, the second-quarter outlook for energy investors isn't entirely gloomy.Looking ahead, global demand for oil remains steady, with summer travel and increased electricity use driving higher consumption. Demand for natural gas in the United States is also growing stronger, thanks to mid-summer heat and improving flows of LNG exports. As companies maintain discipline in their supply and excess inventories slowly return to normal levels, the stage could be set for firmer prices in the second half of 2025.Research Chief Names "Single Best Pick to Double"From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpMedia ContactZacks Investment Research800-767-3771 ext. 9339support@zacks.com                                      https://www.zacks.com                                                 Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.Only $1 to See All Zacks' Buys and SellsWe're not kidding.Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity.Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone.See Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report BP p.l.c. (BP): Free Stock Analysis Report Exxon Mobil Corporation (XOM): Free Stock Analysis Report Shell PLC Unsponsored ADR (SHEL): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks