JPM | US Energy: US Calls Off Attacks, 75 Vessels Cross Bab El Mnadeb, "Tank Bottoms" Note, US Land Activity, Well Productivity Tracker, Zinc 4yr High, API Opposes Biofuel Legislation

Research evidence excerpt

JPM | US Energy: US Calls Off Attacks, 75 Vessels Cross Bab El Mnadeb, "Tank Bottoms" Note, US Land Activity, Well Productivity Tracker, Zinc 4yr High, API Opposes Biofuel Legislation

to accelerate and complete its share purchases under the program prior to year end. IMO reported refining

utilization of 76% (vs. JPMe of 83%), which was influenced by the planned turnaround at Strathcona and unplanned

downtime during the quarter. In conjunction with the 2Q26 print, IMO also updated its refinery throughput guidance for 2026

to 375 kpbd (from 400kpbd), which reflects the unplanned downtime during the year and a short-term rail logistics issue at

Strathcona, which is targeted to be resolved by the end of the year.

Exxon Mobil Corp - 2Q26 First Take - ALERT- Arun Jayaram here

• JPM View: Stock Reaction - Slightly Negative. Given the outstanding earnings results from its pure-play refining peers such

as VLO, we believe the market was baking in the potential for an upside earnings surprise given the strength and advantages

of XOM’s global refining footprint. As such, we anticipate a slightly negative reaction to the print, which featured an

uncharacteristic earnings miss relative to JPMe and the Street in the first quarter that featured XOM’s new EPS reporting

structure excluding timing affects. The earnings miss reflected lower Energy Products results relative to expectations. The

silver lining was a significantly higher cash flow and FCF print, which we believe should neutralize the lower earnings results.

2Q26 CFO ex-working capital was 14% above our forecast, while FCF ex-working capital of $19.3bn exceeded our forecast

by 26%. We note that XOM’s 2Q26 cash flows had a $2.1bn tailwind, which we believe was primarily associated with

affiliate payments.