[HOUSTON] ExxonMobil beat Wall Street estimates for third-quarter earnings on Friday (Oct 31), underpinned by higher oil and gas production in Guyana and the Permian Basin which offset lower oil prices.
Adjusted earnings during the July-to-September quarter were US$8.1 billion, or US$1.88 per share, beating the analyst consensus estimate of US$1.82 per share, according to data compiled by LSEG.
Brent crude prices averaged US$68.17 in the third quarter, down about 13 per cent from the same period last year.
Exxon, the top US oil producer, has highlighted its portfolio of prolific assets and technology, which it says can improve oil recovery rates, allowing it to reap profits even during periods of lower crude prices.
“We delivered the highest earnings per share we’ve had compared to other quarters in a similar oil-price environment,” Exxon CEO Darren Woods said in a statement.
He said production records were set in both the Permian Basin and Guyana, where the Yellowtail development was started up four months ahead of schedule and under budget.
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“We’ve now started up eight of our 10 key 2025 projects, with the remaining two on track,” Woods said.
Exxon paid US$4.2 billion in dividends and repurchased US$5.1 billion worth of shares during the quarter. It is on track to meet its annual share buyback target of US$20 billion.
The company raised its fourth quarter dividend by 4 per cent to US$1.03 per share.
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Production from the Permian Basin, the biggest US oil field, was a record 1.7 million barrels of oil equivalent per day (boepd), while output from the lucrative Guyana oilfield surpassed 700,000 boepd.
During the quarter, Exxon acquired assets to begin producing synthetic graphite for batteries.
Excluding acquisitions, Exxon said it expects its capital expenditure this year to be slightly below the low end of its US$27 billion to US$29 billion guidance range.
The company recorded US$510 million in restructuring costs during the quarter.
Global oil producers have experienced a rocky year as Opec+ has increased its oil output while a US-led tariff war has clouded the outlook for global growth and oil demand, driving oil prices down in the third quarter from a year earlier.
However, average US natural gas prices rose about 38 per cent from last year. REUTERS
