Exxon Mobil Surpasses Wall Street Expectations Amid Shale Boost

Exxon Mobil beat Wall Street's profit estimates in Q3, bolstered by strong oil production, especially after acquiring Pioneer Natural Resources. Despite a slight decline, its profits outperformed rivals BP and TotalEnergies. Exxon increased its quarterly dividend by 4%, driven by higher free cash flow and strategic acquisitions.

On Friday, Exxon Mobil surpassed Wall Street's profit expectations for the third quarter, largely due to a boost in oil output following its acquisition of U.S. shale producer Pioneer Natural Resources. Despite a general downturn in the oil industry with falling demand and weak gasoline margins, Exxon's year-over-year profit only fell by 5%, a more favorable outcome compared to the steeper declines experienced by competitors BP and TotalEnergies.

Exxon reported a quarterly income of $8.61 billion, a slight decrease from $9.07 billion the previous year but exceeding Wall Street's profit per share expectation of $1.88 with $1.92. This success was attributed to an approximate 25% increase in oil and gas production, reaching 4.6 million barrels per day, and maintaining spending constraints, as noted by Exxon's finance chief, Kathryn Mikells.

The oil giant had previously warned of a potential operating profit reduction, leading analysts to adjust forecasts. However, Exxon's incorporation of Pioneer Natural Resources' assets ensured a boost, especially in the U.S. shale basin, offsetting a 17% oil price drop by achieving robust production levels. Additionally, Exxon raised its quarterly dividend by 4% based on an $11.3 billion free cash flow, outperforming estimates and contrasting with competitors like Saudi Aramco and Chevron, which have had to borrow funds to maintain shareholder returns.

(With inputs from agencies.)