XOM · 8-K · 20261016PR000013

Timing Effects on Earnings

ExxonMobil Holdings Corp · 2026-10-16 · Importance 50 · Surprise 42 · No source text

ExxonMobil reported 2Q 2026 adjusted earnings of $14.7 billion after excluding $2.5 billion of estimated timing effects. For 3Q 2026, estimated timing effects were negative $2.5 billion, including negative $1.9 billion in Energy Products and negative $0.7 billion in Upstream, partially offset by rounding. The timing effects primarily reflected mark-to-market accounting for financial derivatives before associated physical hydrocarbon and finished-product shipments are recognized.

Key facts

• Memo: 3Q26 Estimated timing effects: $(0.7) billion, $(1.9) billion, $(2.5) billion shown in the memo table. source
• Estimated external impacts on operations for 3Q2026 versus 2Q2026: $(0.1) billion, $(0.4) billion, $(0.1) billion totaling $(0.6) billion. source
• Estimated day effect (more days in 3Q26 versus 2Q26): $0.2 billion, $0.1 billion, $0.3 billion. source
• Change in other factors (e.g., entitlements, sales timing, tax impacts) estimated impact for 3Q2026 versus 2Q2026: $(0.9) billion and $(0.9) billion shown in the table. source
• Estimated timing effects included in 2Q26 adjustments: $0.1 billion in Upstream and $(2.5) billion in Energy Products totaling $(2.5) billion estimated timing effects. source
• The Company excludes estimated timing effects from adjusted earnings because estimated timing impacts are expected to unwind in subsequent periods. source
• The Company states: "In periods of rising prices, the timing effects are typically negative, while in periods of decreasing prices, the timing effects are typically positive." source

Impact estimates