Exxon Mobil (XOM.N) announced on Monday that changes in oil prices are expected to boost the company’s second-quarter upstream earnings by $300 million to $700 million compared to the first quarter. This comes as Exxon completes its $60 billion acquisition of Pioneer Natural Resources, making it the largest oil producer in the Permian basin.
However, the oil major also stated that changes in gas prices are anticipated to decrease its quarterly upstream earnings by $300 million to $700 million compared to the first quarter. In the first quarter ended March 31, Exxon had posted $5.7 billion in upstream earnings.
The strong performance in the second quarter is primarily driven by the surge in global oil prices, which have risen significantly in recent months. This is expected to provide a significant lift to Exxon’s bottom line, offsetting the expected decline in natural gas earnings.
The acquisition of Pioneer Natural Resources has also strengthened Exxon’s position in the Permian basin, the largest oil-producing region in the United States. The combined operations will make Exxon the largest oil producer in the Permian, further solidifying its dominance in the region.