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 analysts' expectations of $1.82 a share.
Brent crude prices were $68.17 on average in the third quarter of this year, down 13% over the same period a year ago.
Exxon is the largest U.S. oil company. It has highlighted its impressive portfolio of assets and technologies that it claims can increase oil recovery rates. This will allow it to make profits during times of low crude oil 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."
Exxon shares fell 1.4% during pre-market trading.
The production totaled 4.8 millions barrels of oil-equivalent per day (boepd), up from 4.6million boepd during the second quarter.
Woods stated 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 oil field in the United States produced a record-breaking 1.7 million barrels per day of oil. Meanwhile, production from the lucrative Guyana Oilfield exceeded 700,000 boepd.
Profits in the refining sector totaled $1.8 billion.
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 its guidance range of $27 billion to $30 billion.
The company incurred restructuring costs of $510 million during the quarter.
The global oil industry has had a difficult year. OPEC+ increased their oil production, while a U.S. led tariff war clouded the outlook of the growth in the world and the oil demand. This has caused oil prices to fall by a third quarter compared to a year ago.
The average price of natural gas in the United States has risen by 38% since last year. Sheila Dang reports from Houston. (Editing by Sonali and Mark Potter.
(source: Reuters)