XOM Warns of Q4 Upstream Earnings Hit Over Lower Liquids Prices

Exxon Mobil Corporation XOM, an integrated energy giant, has provided an update regarding its fourth-quarter results in a recent SEC filing. The company has stated that the decline in liquids prices may have a negative impact of nearly $800 million to $1.2 billion on its upstream earnings compared to the third quarter. XOM has also mentioned that changes in gas prices, which include the impact of shifts in natural gas realizations, may result in a swing ranging from a negative $300 million to a positive $100 million on a sequential basis.For Energy Products, XOM estimates that changes in industry margins are expected to have a positive impact of nearly $300-$700 million, whereas for Specialty Products, the company expects to add up to $200 million in incremental earnings compared with the third quarter. Notably, the changes in industry margins signify the estimated impact of market and margin movements on crude and petroleum products, specialty basestocks and chemicals applicable to prior period volumes, inclusive of trading effects. For Chemical Products, the company estimates a negative impact of $200-$400 million due to the changes in industry margins compared to Q3 2025.The integrated energy company earns a major portion of its earnings through the Upstream business. The West Texas Intermediate crude price has dropped significantly in 2025 compared with 2024, and at present, crude oil prices continue to trade below the $60 per barrel mark. The negative impact on the upstream segment due to changes in liquids and gas prices is anticipated to weigh down on the company’s fourth-quarter results. According to the Zacks Consensus Estimate, XOM is expected to report earnings of $1.63 per share in the fourth quarter and revenues of $85.13 billion.XOM’s Zacks Rank and Key PicksXOM currently carries a Zacks Rank #3 (Hold).Some top-ranked stocks from the energy sector are Subsea7 S.A. SUBCY, Oceaneering International OII and FuelCell Energy FCEL. While Subsea7 currently sports a Zacks Rank #1 (Strong Buy), Oceaneering and FuelCell carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.Subsea7 helps build underwater oil and gas fields. It is a leading player in the global offshore energy industry, providing engineering, construction and related services at offshore oil and gas fields. The long-term outlook for energy demand remains positive, and Subsea7’s focus on cost-efficient deepwater projects strengthens the position of its subsea business.Oceaneering International delivers integrated technology solutions across all stages of the offshore oilfield lifecycle. The company is a leading provider of offshore equipment and technology solutions to the energy industry. OII’s proven ability to deliver innovative, integrated solutions supports ongoing client retention and new business opportunities, ensuring steady revenue growth.FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum 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 Exxon Mobil Corporation (XOM): Free Stock Analysis Report Oceaneering International, Inc. (OII): Free Stock Analysis Report FuelCell Energy, Inc. (FCEL): Free Stock Analysis Report Subsea 7 SA (SUBCY): 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