ExxonMobil managed to outperform analyst estimates in terms of its earnings report for the third quarter and registered the highest figures in terms of the output it achieved from producing oil since 1981. According to Exxon’s chief executive Darren Woods, that had occurred through greater output from Guyana as well as from strategic assets in the Permian Basin.
The net income was $8.61 billion, or $1.92 per share, in the quarter, Exxon said. That’s above analysts’ estimates of $1.88 per share, and it had revenue of $90 billion. The company said that its net income fell 5% from the same period last year but was substantial.
Higher production volumes did help ExxonMobil make a mark in a tough climate where refining margins and natural gas prices have been under tremendous pressure. Liquid production shot up to 3.2 million barrels per day, the highest level ever since over four decades ago. Meanwhile, Exxon paid back $9.8 billion to its shareholders during this quarter and hiked its fourth-quarter dividend up to $0.99 per share.
With the acquisition of Pioneer Natural Resources by Exxon, significant volumes of production in the Permian Basin have been bought into. This acquisition also added some 1.4 million barrels per day of oil and gas to its output. Exxon shares gained about 1% in pre-market trading and are up 16.8% this year.
Exxon said that it would publish revised production guidance next month and warned about the expected declines due to scheduled maintenance. It further made more efforts on the part of its chemical segment in coming out with a profit as coming to $893 million by far outperforming some other players in a fairly difficult industry.
The strong quarterly report will maintain ExxonMobil with its competitive edge due to the strategic production growth, given the dynamics in the fluctuating oil market and the volatile energy prices.
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