ExxonMobil Earnings Beat as Permian Production Soars But Revenue Lower on Prices

Oil giant ExxonMobil reported better than expected third quarter earnings Friday before the market as Production in Permian soared 70% but revenue missed upstream and downstream on lower margins. 

Oil giant ExxonMobil reported better than expected third quarter earnings Friday before the market as Production in Permian soared 70% but revenue missed upstream and downstream on lower margins.

Exxon Sign

ExxonMobil Inc. (NYSE: $XOM) Reported Earnings Before Open Friday

$0.68 Beat $0.64 EPS But $66.5B Missed $67.87 billion revenue forecast

Earnings

Exxon Mobil Corp. (NYSE: XOM) reported Q3 earnings on Friday that beat analyst expectations XOM reported EPS of 68 cents on revenue of $65.05 billion. Analysts had expected Exxon earnings falling 56% to 64 cents per share with revenue down 11.4% to $67.87 billion.

Exxom had expected in the third quarter, the company upstream volumes to be in-line with the second quarter due to the absence of non-US tax item. In downstream, Permian crude differentials were expected to narrow with additional takeaway capacity and refining margins were predicted to be in line with seasonal demand patterns on lower scheduled maintenance.

Exxon Mobil Corporation NYSE: $XOM

Market Reaction Pre-market 69.04 +$1.47 (+2.18%)

Highlights

  • Production grew 3% to 3.9 million barrels of oil equivalent per day
  • Permian Basin unconventional development production soared more than 70%.
  • Capital spending grew 17% to $7.72 billion.
  • Cash flow from operations dropped 18% to $9.08 billion.

Upstream income fell 49% to $2.17 billion as crude oil prices remained about 25% below year-ago levels amid signs of weakening demand and rising inventories during the quarter.

Downstream income fell 25% on weaker fuel margins.

The company stated that in Q3, it started production at the new high-performance polyethylene line in Beaumont. The expansion has raised production capacity by 65% or 650,000 metric tons per year.

“Growth in the Permian continues to drive increased liquids production and we are ahead of schedule for first oil in Guyana,” Chairman and CEO Darren Woods said. “The value of our position in Guyana improved further this quarter with an additional discovery, our fourth this year.”

exxonmobil Q3 2019 earnings

Outlook

 Exxon Q4 Outlook Q3

ExxonMobil Huge Liza Field Acerage in Guyana

$XOM made a final investment decision during 2Q17 to proceed with the Liza field development located offshore Guyana, where production is expected to start in 2020. The company expects Liza to add up to 120,000 barrels of oil per day to $XOM‘s production.

Liza HESS EXXON

 

Source: ExxonMobil, Alpha Street

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