Exxon Mobil reported an impressive profit for the third quarter, surpassing analysts’ forecasts, largely due to the positive impact of its recent acquisition of Pioneer Natural Resources.
The company posted earnings of $8.6 billion, equating to $1.92 per share, for the period ending September 30. This marks a slight decline from the previous year, when the Texas-based enterprise earned $9.07 billion, or $2.25 per share.
Despite this dip, the results were better than expected, as Exxon does not modify its reported figures based on extraordinary events, such as asset dispositions. Analysts from Zacks Investment Research had anticipated earnings of $1.91 per share.
Following the announcement, Exxon’s shares saw a near 2% increase in pre-market trading on Friday.
Total revenue for the quarter reached $90.02 billion; however, this fell short of the Wall Street estimate of $93.51 billion.
Additionally, Exxon achieved net production of 4.6 million barrels of oil equivalent per day during the third quarter, indicating a 5% rise from the previous quarter.
Recent trends in oil pricing have been downward, particularly after a recent Israeli attack on Iranian military locations, avoiding the nation’s oil fields. The overall sentiment suggests that oil prices are expected to continue to decrease, driven by an oversupply issue that typically puts downward pressure on market prices.
In July 2023, Exxon announced plans to purchase Denbury Resources for $4.9 billion, a company that has made strides in carbon capture and storage, positioning itself to take advantage of evolving U.S. climate regulations.
Three months later, the company disclosed intentions to invest $60 billion in acquiring Pioneer Natural Resources, a deal that was cleared by the Federal Trade Commission in May.
Exxon has also increased its quarterly dividend by 4% as part of its financial strategy.
In conjunction with Exxon’s announcements, Chevron Corp. declared its adjusted earnings at $2.51 per share, with total revenues amounting to $50.67 billion. Expectations among analysts had been set for a profit of $2.47 per share on $49.88 billion in revenue. Similar to Exxon, Chevron does not adjust its results for one-time events such as asset sales.
