Exxon Mobil Corporation reported third-quarter earnings that exceeded Wall Street’s expectations, with strong operational performance despite a slight year-over-year decline in net income.
The oil giant’s net income for the quarter reached $8.61 billion, or $1.92 per share, down from $9.1 billion, or $2.25 per share, in the same quarter last year. The company’s earnings per share still topped analysts’ forecasts of $1.88, thanks to significant production output and operational improvements.
Exxon’s revenue came in at $90 billion, short of Wall Street’s $93.94 billion estimate, though its liquids production level, at 3.2 million barrels per day, was the company’s highest in over 40 years. CEO Darren Woods noted that record volumes from Exxon’s strategic assets in the Permian Basin and Guyana contributed to the robust production levels.
“This quarter is one of the best third quarters we’ve had in the past decade,” Woods said during an appearance on CNBC’s Squawk Box.
He pointed to Exxon’s “advantage assets” as driving both production growth and increased resilience within its upstream operations.
In a move that underscores Exxon’s commitment to shareholders, the company returned $9.8 billion in the third quarter through dividends and buybacks, further raising its fourth-quarter dividend to $0.99 per share, up from $0.91. Exxon’s stock rose about 1% in pre-market trading, and it has gained approximately 16.8% this year.
Exxon also highlighted its commitment to carbon capture and storage, reporting that new contracts have expanded its carbon offtake commitments to 6.7 million metric tons per year—the largest volume under contract in the industry.
Capital and exploration expenditures totaled $7.2 billion for the quarter, aligning with Exxon’s 2024 guidance target of $28 billion. Cash flow from operating activities was $17.6 billion, with free cash flow reaching $11.3 billion, signaling Exxon’s financial strength amid fluctuating refining margins and lower natural gas prices compared to 2023.
With input from CNBC and Exxon Mobil.
