Exxon Mobil boost tops Street in 3rd quarter, helped by Pioneer Natural purchase

Exxon Mobil’s third-quarter boost beat analysts’ expectations, as the oil and gas giant was helped by contributions from Pioneer Natural Resources, a recent purchase.

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

The act topped Wall Street’s expectations, though Exxon does not adjust its reported results based on one-period events such as resource sales. Analysts surveyed by Zacks capital Research were calling for profits of $1.91 per distribute.

Shares rose nearly 2% before the trade open on Friday.

income totaled $90.02 billion, falling short of Wall Street’s approximate of $93.51 billion.

Exxon’s net production reached 4.6 million oil-equivalent barrels per day during the third quarter, an boost 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 globe’s seventh largest producer of crude. The long-term expectation is for oil prices to shift lower, not higher. That’s because the equilibrium 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 advantage 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 fee in May.

Exxon raised its quarterly distribution by 4%.

Also on Friday, Chevron Corp. reported an adjusted boost of $2.51 per distribute on income of $50.67 billion. Wall Street was looking for a boost of $2.47 per distribute on income of $49.88 billion. Similar to Exxon, Chevron does not adjust its reported results based on one-period events such as resource sales.