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Exxon Mobil posted robust third-quarter results on Friday, driven by exceptional production in Guyana and the Permian Basin, though earnings declined from the same period last year.
The energy giant reported net income of $7.55 billion, or $1.76 per share, down from $8.61 billion, or $1.92 per share, in the third quarter of 2022. After adjusting for one-time items, earnings reached $1.88 per share, exceeding analysts’ expectations of $1.81 per share according to Zacks Investment Research.
Revenue for the quarter totaled $85.29 billion, falling short of Wall Street projections of $86.77 billion.
The company’s production figures were particularly impressive, with net production reaching 4.7 million oil-equivalent barrels per day, representing an increase of 1.1 million oil-equivalent barrels compared to the second quarter. Guyana operations surpassed 700,000 barrels per day, while the Permian Basin set a new record with production approaching 1.7 million oil-equivalent barrels daily.
Fellow oil major Chevron also reported better-than-expected earnings on Friday, posting third-quarter profits of $3.54 billion, or $1.82 per share. Adjusted earnings of $1.85 per share topped analysts’ forecasts of $1.66 per share, though Chevron, like Exxon, does not adjust its reported results for one-time events. Chevron’s revenue came in at $49.73 billion, below Wall Street’s projected $53.58 billion.
These results come against a backdrop of relatively stable oil prices, though the market saw some volatility last week when the United States announced significant new sanctions on Russia’s oil industry. The move aims to pressure Russian President Vladimir Putin toward negotiations to end the war in Ukraine.
Despite this recent spike, oil prices have remained comparatively low for several years. In mid-October, U.S. benchmark crude fell below $57 per barrel, reaching its lowest point since early 2021. While prices rose to nearly $79 per barrel earlier this year, analysts generally didn’t consider this level exceptionally high by historical standards.
The oil market’s relative stability can be attributed largely to strategic production decisions by OPEC+, the alliance of oil-exporting countries. Earlier this month, the group agreed to a modest increase in oil production, citing a steady global economic outlook. OPEC+ will boost output by 137,000 barrels per day in November, continuing a pattern of incremental increases throughout the year after announcing production cuts in 2023 and 2024.
Russia, a key non-OPEC member in the 22-country alliance, continues to play a significant role in global oil supply despite Western sanctions. The group’s next meeting is scheduled for Sunday, where members will assess market conditions and potentially adjust production targets accordingly.
For major oil companies like Exxon and Chevron, the ability to increase production in key regions like Guyana and the Permian Basin has helped offset the impact of lower oil prices, allowing them to exceed earnings expectations despite challenging market conditions.
Industry analysts will be closely monitoring OPEC+ decisions and geopolitical developments in the coming months, as these factors could significantly impact global oil supplies and prices. Meanwhile, the strong production figures from both Exxon and Chevron highlight the resilience of major energy companies in navigating market fluctuations through strategic investments in high-yield production regions.
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22 Comments
The Permian Basin continues to be a reliable growth engine for Exxon. Their ability to boost output in this prolific region is admirable.
Exxon’s diversified portfolio, with assets like Guyana, helps them weather market fluctuations. A prudent strategy for an integrated major.
The strong performance in Exxon’s upstream business, despite lower commodity prices, demonstrates their operational expertise. Shareholders must be pleased.
Exxon’s disciplined capital allocation seems to be paying off. Curious to see if they can sustain this momentum going forward.
Exxon’s ability to maintain robust production in the face of market volatility is commendable. Their diversified portfolio is serving them well.
Curious to see how Exxon’s sustainability initiatives, such as carbon capture, will impact their long-term competitiveness in the evolving energy landscape.
Impressive earnings for Exxon, driven by strong production in Guyana and the Permian. Good to see the energy giant capitalizing on these high-potential assets.
The Permian continues to be a key growth driver for Exxon. Curious to see how they balance returns with increased investment in this prolific basin.
Exxon’s quarterly results show their ability to adapt to changing market conditions. Diversification across assets like Guyana and the Permian seems to be paying off.
Curious to see how Exxon’s plans to increase renewable energy and carbon capture investments will impact their financial performance going forward.
Exxon’s strong performance in Guyana and the Permian Basin demonstrates their operational expertise. Shareholders will be pleased with these results.
It will be interesting to see how Exxon allocates capital between traditional oil and gas and emerging low-carbon technologies in the coming years.
Exxon’s strong production numbers, especially in Guyana, are a positive sign for the company’s future growth prospects. Their operational expertise is clearly evident.
It will be interesting to see how Exxon balances investment in traditional oil and gas with emerging low-carbon technologies like carbon capture.
Exxon’s earnings decline from last year is understandable given the volatile market conditions. But their production growth is an encouraging sign.
It will be interesting to see how Exxon’s investments in renewable energy and carbon capture technologies evolve alongside their core oil and gas business.
Exxon’s earnings report highlights their ability to navigate challenging market conditions. Their production growth is an encouraging sign for the company’s future.
Curious to see how Exxon’s sustainability initiatives, such as carbon capture, will impact their long-term competitiveness and financial performance.
Exxon’s ability to ramp up production in Guyana is certainly noteworthy. Developing new oil and gas resources is crucial for meeting global energy demand.
I wonder how Exxon’s Guyana operations compare to other majors’ projects in the region in terms of costs and returns.
Exxon’s strong production figures, despite some earnings pressure, demonstrate their operational excellence. Guyana and the Permian are clearly key to their success.
It will be interesting to see how Exxon’s investments in lower-carbon technologies like carbon capture evolve alongside their core oil and gas business.