Exxon Mobil Corp (NYSE:XOM, ETR:XONA) shares fell Monday on indications from the oil supermajor that quarterly earnings would be weaker than expected.
An 8K filing indicated earnings per share (EPS) would be around $1.50-2.40 per share, mostly less than the consensus forecast of roughly $2.30 per share.
ExxonMobile said in the earnings considerations filing that earnings are likely to be hit by lower natural gas prices and refining margins.
This has led to a softer performance from the company's upstream arm.
The second-quarter numbers, the first since Exxon completed its $60 billion takeover of Pioneer Natural Resources, will be helped by higher crude oil prices, with oil earnings expected to rise by at least $300 million.
In the first quarter, earnings of $5.7 billion were generated but the Pioneer acquisition is expected to add 500,000-550,000 barrels of oil equivalent per day in the second quarter.
Lower refining margins "should be expected" said analysts at RBC Capital Markets, adding that "the hit from gas prices, as well as the earnings contribution from Pioneer were worse than we had modeled".