Exxon beats Q3 profit estimates on higher Guyana, Permian production

Oct 31 (Reuters) – Exxon Mobil beat Wall Street estimates for third-quarter earnings on Friday, underpinned by higher oil and gas production in Guyana and the Permian Basin, which offset lower oil prices.

Adjusted earnings during the July-to-September quarter were $8.1 billion, or $1.88 per share, beating analysts’ consensus estimate of $1.82 per share, according to data compiled by LSEG.

“We delivered the highest earnings per share we’ve had compared to other quarters in a similar oil-price environment,” Exxon CEO Darren Woods said in a statement.

Top U.S. oil producer Exxon’s free cash flow, however, declined to $6.3 billion from $11.3 billion in the same quarter last year as the company spent more to acquire additional acreage in the Permian Basin. The company’s shares declined 1.8% in premarket trading.

Brent crude prices averaged $68.17 in the third quarter, down about 13% from the same period last year.

PRODUCTION GROWS IN KEY AREAS

Oil and gas production totaled 4.8 million barrels of oil equivalent per day, up from 4.6 million boepd in the second quarter.

Woods said production records were set in both the Permian Basin and Guyana, where the Yellowtail development was started up four months ahead of schedule and under budget. Permian production was a record 1.7 million barrels of oil equivalent per day, while output from the lucrative Guyana oilfield surpassed 700,000 boepd.

Exxon paid $4.2 billion in dividends and repurchased $5.1 billion worth of shares during the quarter. It is on track to meet its annual share buyback target of $20 billion.

The company raised its fourth-quarter dividend by 4% to $1.03 per share.

The results were mixed, with higher expenditures offsetting the positive news of the dividend increase and earnings beat, wrote Jeoffrey Lambujon, an analyst with TPH & Co, in a research note.

Earnings from upstream totaled $5.7 billion, while refining profits were $1.8 billion.

Excluding acquisitions, Exxon said it expects its capital expenditure this year to be slightly below the low end of its $27 billion to $29 billion guidance range.

The company recorded $510 million in restructuring costs during the quarter.

Global oil producers have experienced a rocky year as OPEC+ has increased its oil output while a U.S.-led tariff war has clouded the outlook for global growth and oil demand, driving oil prices down in the third quarter from a year earlier.