Exxon Mobil (NYSE:XOM) reported a 49% decline in third-quarter earnings on lower oil prices and higher costs. The results, however, did slightly top Wall Street expectations and the shares were a bit higher in early trading.
Exxon earned $3.2 billion in the third quarter, down from $6.2 billion in the same period a year ago.
Adjusted earnings were 75 cents per share vs. 67 cents expected by experts. Revenue came in at $65.05 billion, compared to the $64.79 billion expected expected.
Upstream income registered $2.17 billion, in contrast to the $2.36 billion expected. Downstream income rang up at $1.23 billion vs. $1 billion expected.
Chemicals income was $241 million, compared to $223.6 million expected.
XOM spent $7.7 billion on capital and exploration expenditures, including in the key Permian Basin area. Oil-equivalent production rose 3% compared to a year earlier, reaching 3.9 million barrels per day. Liquid production hiked 4%, while natural gas volumes increased 1%.
"We are making excellent progress on our long-term growth strategy," Exxon Chairman and CEO Darren Woods said. "Growth in the Permian continues to drive increased liquids production and we are ahead of schedule for first oil in Guyana."
Earnings were boosted by a favorable $300 million tax-related item.
For the year, Exxon stock is down 1% through Thursday’s close, lagging both the S&P 500 and the energy sector. The S&P 500 is up 21% in 2019 while the energy sector is up 1%.
XOM shares started Friday up $1.15, or 1.7%, to $68.72
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