Exxon Mobil Corp.'s (XOM) third-quarter earnings fell 7.4% on
lower production and weaker realized liquids and natural gas
prices, offsetting benefits from stronger margins in its refining
arm.
The world's largest publicly traded oil company's exploration
and production business has seen lower oil-and-gas production in
recent quarters and also hasn't been immune to softer commodities
prices.
Exxon, which is also the largest natural gas producer in the
U.S. after its acquisition in 2010 of XTO Energy Inc. for about $26
billion, has continued to expand its shale-gas assets despite
stubbornly low natural gas prices. Last month Exxon said it agreed
to buy Canadian oil and natural-gas producer Celtic Exploration
Ltd. for 2.59 billion Canadian dollars (US$2.63 billion)--its
largest such deal since it acquired XTO--as the company remains
optimistic about long term prospects for the sector.
Exxon Mobil reported a profit of $9.57 billion, or $2.09 a
share, down from $10.33 billion, or $2.13 a share, a year earlier.
Revenue decreased 7.7% to $115.71 billion.
Analysts polled by Thomson Reuters most recently projected
earnings of $1.95 on revenue of $112.4 billion.
Exploration and production earnings declined 29% to $5.97
billion amid lower prices for liquids and natural-gas as production
fell 7.5% on an oil-equivalent basis.
Refining and marketing earnings more than doubled to $3.19
billion mainly on stronger refining margins.
ConocoPhillips (COP) last week reported third-quarter results in
which lower oil and gas prices took a toll, though production
results in unconventional U.S. oil formations helped the company
top analysts' expectations.
Chevron Corp. (CVX) and Hess Corp. (HES) are set to report
third-quarter financial results Friday.
Exxon shares closed Wednesday at $91.17 and were inactive
premarket.
Write to Tess Stynes at tess.stynes@dowjones.com
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