Exxon exceeds Q3 profit expectations on higher Guyana and Permian production
Exxon Mobil surpassed Wall Street expectations for the third quarter earnings on Friday. This was due to higher oil and natural gas production in Guyana, and the Permian basin which helped offset lower oil prices.
LSEG data shows that adjusted earnings for the quarter July-September were $8.1 billion or $1.88 a share. This was higher than the consensus analyst estimate of $1.82 a share.
Brent crude prices were $68.17 on average in the third quarter of this year, a drop of about 13% compared to the same period a year ago.
Exxon is the largest U.S. oil company. It has highlighted its impressive portfolio of assets and technologies, which, it claims, can improve oil recovery, allowing for it to make profits during times of low crude prices.
Exxon CEO Darren Woods stated in a press release that "we delivered the highest earnings-per-share we've ever had compared to previous quarters under a similar oil price environment."
He claimed that production records had been set in the Permian basin and Guyana where the Yellowtail project was launched four months early and on budget.
Woods stated that eight of the 10 projects for 2025 have been started, and two are on track.
Exxon distributed $4.2 billion as dividends, and purchased $5.1 billion of shares in the third quarter. The company is on target to reach its annual buyback goal of $20 billion.
The company increased its dividend for the fourth quarter by 4%, to $1.03 a share.
The Permian Basin oilfield, the largest in the United States, produced a record-breaking 1.7 million barrels equivalent per day (boepd), and the Guyana oilfield, which is highly profitable, exceeded 700,000 boepd.
Exxon purchased assets during the quarter to start producing synthetic graphite used in batteries.
Exxon expects capital expenditures this year, excluding acquisitions to be at the lower end of the $27 billion-$29 billion range.
The company incurred restructuring costs of $510 million during the quarter.
Oil prices have fallen in the third quarter of last year due to a tariff war led by the United States. The average U.S. gas price rose 38% over the past year. Sheila Dang, Houston reporter; Nathan Crooks, Sonali Paul and Nathan Crooks edited the report.
(source: Reuters)