by the numbers

ExxonMobil beats profit forecast with Q3 surge, powered by acquisition, production gains

Exxon earned $8.6 billion, or $1.92 per share, for the three months ended Sept. 30. Photo via ExxonMobil.com

ExxonMobil's third-quarter profit beat analysts' expectations, as the oil and gas giant was helped by contributions from Pioneer Natural Resources, a recent acquisition.

Exxon earned $8.6 billion, or $1.92 per share, for the three months ended Sept. 30. A year earlier the Spring, Texas-based company earned $9.07 billion, or $2.25 per share.

The performance topped Wall Street's expectations, though Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts surveyed by Zacks Investment Research were calling for earnings of $1.91 per share.

Revenue totaled $90.02 billion, falling short of Wall Street’s estimate of $93.51 billion.

Exxon’s net production reached 4.6 million oil-equivalent barrels per day during the third quarter, an increase of 5% compared with the previous quarter.

Oil prices have been falling recently after a retaliatory strike by Israel on Iran targeted military sites rather than the oilfields of the world’s seventh largest producer of crude. The long-term expectation is for oil prices to move lower, not higher. That’s because the balance between supply and demand has tilted toward supply, a dynamic that typically deflates oil prices.

Exxon announced in July 2023 that it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered the business of capturing and storing carbon and stands to benefit from changes in U.S. climate policy.

Three months later it said it would spend $60 billion on shale operator Pioneer Natural Resources. That deal received clearance from the Federal Trade Commission in May.

Exxon said its board approved a 4% increase in its quarterly dividend, 99 cents per share.

Also on Friday, Chevron Corp. reported an adjusted profit of $2.51 per share on revenue of $50.67 billion. Wall Street was looking for a profit of $2.47 per share on revenue of $49.88 billion. Similar to Exxon, Chevron does not adjust its reported results based on one-time events such as asset sales.

Revenue and net income were lower than a year ago at the San Ramon, California, company, which is relocating its headquarters to Houston by year-end.

Chevron said it's continuing asset sales and is now targeting structural cost cuts of $2 billion to $3 billion through 2026, although it didn't provide specific details.

In morning trading, Exxon shares rose 35 cents to $117.13 while Chevron shares rose 3% to $153.69.

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A View From HETI

TALKE USA's Recycling Support Center opened Jan. 12 in Chambers County. Photo via LinkedIn.

TALKE USA Inc., the Houston-area arm of German logistics company TALKE, officially opened its Recycling Support Center earlier this month.

Located next to the company's Houston-area headquarters, the plant will process post-consumer plastic materials, which will eventually be converted into recycling feedstock. Chambers County partially funded the plant.

“Our new recycling support center expands our overall commitment to sustainable growth, and now, the community’s plastics will be received here before they head out for recycling. This is a win for the residents of Chambers County," Richard Heath, CEO and president of TALKE USA, said in a news release.

“The opening of our recycling support facility offers a real alternative to past obstacles regarding the large amount of plastic products our local community disposes of. For our entire team, our customers, and the Mont Belvieu community, today marks a new beginning for effective, safe, and sustainable plastics recycling.”

The new plant will receive the post-consumer plastic and form it into bales. The materials will then be processed at Cyclyx's new Houston Circularity Center, a first-of-its-kind plastic waste sorting and processing facility being developed through a joint venture between Cyclix, ExxonMobil and LyondellBasell.

“Materials collected at this facility aren’t just easy-to-recycle items like water bottles and milk jugs. All plastics are accepted, including multi-layered films—like chip bags and juice pouches. This means more of the everyday plastics used in the Chambers County community can be captured and kept out of landfills,” Leslie Hushka, chief impact officer at Cyclyx, added in a LinkedIn post.

Cyclyx's circularity center is currently under construction and is expected to produce 300 million pounds of custom-formulated feedstock annually.

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