Exxon Mobil Earnings Beat Street in Q3, Helped by Pioneer Natural Acquisition

Exxon Mobil’s third-quarter profit beat analysts’ expectations as the oil and gas giant was helped by investments from its recent acquisition of Pioneer Natural Resources.

Exxon earned $8.6 billion, or $1.92 per share, in the three months ended Sept. 30. A year earlier, the Spring, Texas-based company earned $9.07 billion, or $2.25 per share.

The results beat Wall Street’s expectations, although Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts surveyed by Zacks Investment Research had forecast earnings of $1.91 per share.

Shares were up nearly 2% before the market opened Friday.

Revenue was $90.02 billion, below Wall Street’s estimate of $93.51 billion.

Exxon’s net production reached 4.6 million barrels of oil equivalent per day in the third quarter, up 5% from the previous quarter.

Oil prices recently fell after a retaliatory strike Israel Attacks on Iran are targeting military targets, not the oil fields of the world’s seventh-largest oil producer. The long-term expectation is that oil prices will decline rather than rise. This is because the balance between supply and demand has shifted toward supply, a dynamic that typically pushes oil prices down.

In July 2023, Exxon announced it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered into carbon capture and storage and could benefit from it. changes in US climate policy.

Three months later, the company said it would spend $60 billion on the shale operator. Natural Resources Pioneer. This deal got permission from the Federal Trade Commission in May.

Exxon increased its quarterly dividend by 4%.

Also on Friday, Chevron Corp. reported adjusted earnings of $2.51 per share on revenue of $50.67 billion. Wall Street was expecting earnings of $2.47 per share on revenue of $49.88 billion. Like Exxon, Chevron does not adjust its reported results based on one-time events such as asset sales.