Exxon Mobil (XOM) -1.6% pre-market Friday despite beating Q3 adjusted earnings estimates, helped by higher oil and gas production in Guyana and the Permian Basin, and raising its quarterly dividend by 4% to $1.03/share from $0.99.
Q3 net profit fell to $7.55 billion, or $1.76/share, from $8.61 billion, or $1.92/share, in the year-earlier quarter, and revenues fell 5.2% Y/Y to $85.29 billion, attributed to weaker crude prices, bottom-of-cycle chemical margins, higher depreciation, growth costs, and lower base volumes from strategic divestments, partially offset by volume growth in Guyana and the Permian Basin, and additional structural cost savings; Q3 adjusted profit totaled $8.1 billion, or $1.88/share, exceeding Wall Street expectations.
Q3 cash flow from operating activities totaled $14.8 billion and free cash flow was $6.3 billion.
Exxon (XOM) said it expects this year’s capital spending, excluding acquisitions, to come in slightly below the low end of its $27 billion-$29 billion guidance range.
Q3 results benefited from the start-up of the 250,000 bbl/day Yellowtail development in Guyana, where the company broke a quarterly production record surpassing 700,000 bbl/day; in the Permian Basin, production also set a record of nearly 1.7 million bbl/day.
Total Q3 oil and gas production increased by 139,000 boe/day to 4.8 million boe/day.
Q3 earnings by segment: Upstream earnings rose to $5.68 billion from $5.4 billion in Q2, as higher volumes, driven by record production in Guyana and the Permian, structural cost savings, and stronger crude realizations were partially offset by lower base volumes; Energy Products rose to $1.84 billion from $1.36 billion in Q2, driven by stronger industry refining margins due to supply disruptions, higher volumes from record refinery throughput and advantaged projects growth; Chemical Products rose to $515 million from $293 million in Q2, helped by higher margins, record high-value product sales, and lower expenses; and Specialty Products fell to $740 million from $780 million in Q2, attributed to weaker margins and lower seasonal volumes.
“We delivered the highest earnings per share we’ve had compared to other quarters in a similar oil-price environment,” CEO Darren Woods said, noting the company has started up eight of its 10 key 2025 projects, with the remaining two on track. “No one else in our industry is executing at this scale, with this level of innovation, or delivering this kind of value.”
Benchmark Brent crude prices averaged $68.17/bbl in Q3, down 13% Y/Y and up 2% Q/Q.