An Exxon gas station in Washington, D.C., May 28, 2024. Archive photo, not current pump prices: Tony Webster / Wikimedia Commons, CC BY 2.0. Cropped.
ExxonMobil reported $15.4 billion in third-quarter profit Friday as stronger fuel margins and robust refinery operations lifted its Energy Products business, helping offset lower earnings from oil and gas production.
The company said in its third-quarter earnings release that net income rose to $15.413 billion from $14.525 billion in the second quarter. Earnings per share increased to $3.72 from $3.48.
Adjusted earnings, a non-GAAP measure, were $17.505 billion, or $4.23 per share, compared with $14.680 billion, or $3.52 per share, in the previous quarter.
Fuel margins lift Energy Products earnings
Energy Products earnings increased to $7.169 billion from $5.465 billion in the second quarter. On an adjusted basis, the segment earned $9.053 billion, up from $4.099 billion.
Exxon attributed the improvement to higher margins and strong operating performance, including 100% crude-unit utilization at its U.S. Gulf Coast refineries. It said U.S. Gulf Coast diesel production was the second highest on record on its current asset base, using internal data available from 2014.
The company also reported record year-to-date refining operating performance: its highest global fuels utilization excluding Middle East impacts, highest global diesel yield and highest North American diesel volumes. The records use internal data available from 2014, with asset-base qualifications specified by the company.
Those operating records are distinct from a claim that quarterly refining profit set an all-time record. The earnings release cited higher margins and operations while also noting external impacts on global capacity utilization.
Oil and gas earnings fall from the previous quarter
Upstream earnings declined to $7.088 billion from $7.927 billion in the second quarter. Exxon cited lower prices and an accelerated Guyana entitlement impact.
Oil and gas production averaged 4.496 million oil-equivalent barrels a day, compared with 4.514 million in the previous quarter. Energy Products sales increased to 5.753 million barrels a day from 5.698 million.
Chemical Products earnings fell to $735 million from $1.131 billion as margins weakened. Specialty Products earnings rose to $1.285 billion from $956 million, helped by higher basestock margins.
Cash flow and shareholder payments
Cash flow from operations totaled $25.7 billion, while free cash flow was $19.1 billion. Exxon distributed $9.4 billion to shareholders during the quarter, including $4.3 billion in dividends and $5.1 billion in share repurchases.
The company declared a fourth-quarter dividend of $1.07 per share, payable December 10 to shareholders of record at the close of business November 16. It also announced $20 billion of share repurchases for 2027, assuming reasonable market conditions.
For the first nine months of 2026, net income reached $34.121 billion, compared with $22.343 billion a year earlier. Adjusted earnings for the period were $40.957 billion, compared with $22.457 billion.
Exxon said cumulative structural cost savings since 2019 had reached $16.9 billion. Chairman and Chief Executive Darren Woods pointed to the company’s investments and operating changes as contributors to performance, alongside the favorable margins reflected in the results.
JBizNews Business Desk | SPRING, TEXAS
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