Exxon Mobil shares close higher on Wednesday, Wall Street sharply raises Exxon’s profit outlook as natural gas prices surge

Analysts on Wall Street on Wednesday sharply raised Exxon Mobil Corp’s third-quarter earnings outlook, after the oil company disclosed a $2 billion profit gain from natural gas sales.

The disclosure indicated that Exxon’s third-quarter profit, to be reported later in October, could come in close to the record $17.9 billion profit in Q2, analysts stated.

The oil major could earn about $4 per share, compared with a second-quarter profit of $4.21 per share, according to analysts. Market consensus had pointed to $3.44 per share.

The company’s third-quarter profit from oil and gas production “will surpass record 2Q22 earnings with an implied mid-point of $11.8 billion,” according to analysts at Bank of America Securities. They believe the results set up Exxon for its first “meaningful” dividend increase in 3 years.

Gas prices have skyrocketed during the military conflict in Ukraine, as Europe seeks to substitute Russian pipeline gas supplies.

The shares of Exxon Mobil Corp (XOM) closed higher for a third consecutive trading session in New York on Wednesday. The stock went up 4.04% ($3.85) to $99.12, after touching an intraday high at $99.99. The latter has been a price level not seen since August 29th ($101.56).

The shares of Exxon Mobil Corporation have risen 61.99% so far in 2022 compared with a 20.62% loss for the benchmark index, S&P 500 (SPX).

In 2021, Exxon Mobil Corp’s stock went up 48.45%, thus, it again outperformed the S&P 500, which registered a 26.89% gain.

Analyst stock price forecast and recommendation

According to TipRanks, at least 7 out of 10 surveyed investment analysts had rated Exxon Mobil Corp’s stock as “Buy”, while 3 – as “Hold”. The median price target on the stock stands at $109.05.