Exxon Mobil Corp (NYSE:XOM). reported a decline in Q3 profit and revenue under CEO Darren Woods, despite setting a Q3 record for global refinery throughput. The company's earnings were $9.07 billion or $2.25 per share, down from last year's $19.66 billion or $4.68 per share. Adjusted earnings stood at $2.27 per share, falling short of analysts' predictions.
The company's revenue dropped to $90.76 billion from $112.07 billion last year, but still managed to surpass Wall Street’s estimate of $89.29 billion. Despite a minor dip in oil production by 0.8%, Exxon achieved its highest ever Q3 global refinery throughput at 4.2 million barrels per day.
In addition to its performance metrics, Exxon announced an increase in its fourth-quarter dividend to 95 cents per share, up from 91 cents in the previous quarter. The company also expanded its reach in the Permian Basin through a $60 billion acquisition of Pioneer Natural Resources (NYSE:PXD), marking Exxon’s largest acquisition since it bought Mobil two decades ago.
This move comes amid a consolidation trend in the energy sector, with high crude prices prompting several major acquisitions. For instance, Chevron (NYSE:CVX) plans to acquire Hess Corp (NYSE:HES) for over $50 billion, reflecting this industry-wide trend.
Crude oil prices have surged in 2022 due to Russia’s invasion of Ukraine and currently hover around $90 per barrel. This market condition has resulted in major oil drillers becoming flush with cash and seeking investment opportunities.
Potential supply disruptions stemming from Middle East tensions, including Saudi Arabia's cutbacks and the Israel-Hamas conflict, could further drive up oil prices according to the U.S Energy Information Administration.
Last year, Exxon posted a record profit of $55.7 billion, surpassing its previous record of $45.22 billion in 2008 when oil prices peaked. This surplus is driving significant consolidation in the energy sector.
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