RBC Capital keeps a Sector Perform rating and $135 price target on Exxon Mobil (XOM) but lowers the firm’s Q2 EPS view to $2.00 from $2.15 following the company’s 8-K filing assessing market-based factors, also calling the disclosed datapoints “disappointing relative to expectations”. The key reasons for the weakness included weaker refining margins, which look like a more severe decline than industry refining margin markers would suggest, along with deal accounting relating to the Pioneer Natural (PXD) acquisition that led to some one-off change of control changes as well as the write-up of some of Pioneer’s assets which has resulted in higher depreciation than forecasted, the analyst tells investors in a research note.
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