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Oil giant ExxonMobil $XOM reported better than expected third quarter earnings Friday as production and Oil-equivalent production was 3.9 million barrels per day, up 2 percent from the prior year.

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Earnings:  Q3 EPS of $0.93 beats by $0.07.
Revenue of $66.2B (+12.8% Y/Y) beats by $2.81B.

Reaction: ExxonMobil NYSE: XOM Close:    $83.71 +.25 +.30%

  • Cash flow from operations and asset sales exceeds dividends and net investments1 for the fourth-consecutive quarter
  • Company makes fifth Guyana discovery; captures 12 high-potential blocks offshore Brazil
  • Hurricane Harvey reduces earnings by an estimated $160 million, or 4 cents per share

Third Quarter 2017 Highlights

  • Earnings of $4 billion increased 50 percent from the third quarter of 2016.
  • Earnings per share assuming dilution were $0.93.
  • Cash flow from operations and asset sales increased 33 percent to $8.4 billion, including proceeds associated with asset sales of $854 million.
  • Capital and exploration expenditures were $6 billion, including an aromatics plant acquisition in Singapore.
  • Oil-equivalent production was 3.9 million barrels per day, up 2 percent from the prior year. Excluding entitlement effects and divestments, oil-equivalent production remained at 2 percent higher than the prior year.
  • The corporation distributed $3.3 billion in dividends to shareholders.
  • Dividends per share of $0.77 increased 2.7 percent compared to the third quarter of 2016.
  • The company acquired an interest in 12 blocks offshore Brazil during the last bid round completed during the quarter. The bid resulted in the addition of 2 million high-potential acres with competitive fiscal terms.
  • The company completed the Turbot-1 exploration well offshore Guyana. The well encountered 75 feet (23 meters) of high-quality, oil-bearing sandstone, and represents ExxonMobil’s fifth discovery to date in the country.
  • ExxonMobil signed a production sharing contract for Block 59 located 190 miles (305 kilometers) offshore Suriname. The deepwater block has an area of 2.8 million acres and significantly expands the corporation’s operated acreage in the Guyana-Suriname basin.
  • During the quarter, ExxonMobil announced it added 22,000 acres since May to its Permian Basin portfolio through a series of acquisitions and acreage trades. Located in the Delaware and Midland Basins, the new acreage adds over 400 million oil-equivalent barrels to the company’s existing Permian Basin resource base of 6 billion oil-equivalent barrels.
  • ExxonMobil completed the acquisition of one of the world’s largest aromatics facilities, located in Singapore, from Jurong Aromatics Corporation Pte Ltd. The acquisition will provide operational and logistical synergies between the plant and ExxonMobil’s integrated refining and petrochemical complex, as well as increase ExxonMobil Singapore’s aromatics production to over 3.5 million metric tons per year.

Last Quarter Earnings: Exxon Misses Earnings on Lower Production

TradersCommunity Preview: Big Oil Earnings on Tap With Exxon, Chevron and Conoco

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 EXXONTreasury Department Dispute

Analysts have been cold on $XOM since April when it legally challenged the Treasury Department’s Office of Foreign Assets Control that states the company violated U.S. sanctions against Russia in 2014. The dispute is based on the interactions $XOM had with Rosneft, Russian oil company.

Source: ExxonMobil, Alpha Street

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