ExxonMobil Corp. reported estimated third-quarter earnings of $3.2 billion, relatively flat compared with the $3.1 billion reported in this year’s second quarter, and down 49% from the $6.2 billion recorded a year earlier. The multinational firm said the results reflect lower liquids realizations largely offset by the downstream business.
“Growth in the Permian continues to drive increased liquids production and we are ahead of schedule for first oil in Guyana,” said Darren W. Woods, chairman and chief executive officer. “The value of our position in Guyana improved further this quarter with an additional discovery, our fourth this year. We are also making good progress on our advantaged investments in the downstream and chemical. This quarter, we started production at our new high-performance polyethylene line in Beaumont. The competitiveness of our portfolio was further enhanced with the divestment of nonstrategic assets, reaching almost a third of our 2021 objective of $15 billion.”
Upstream net earnings were $2.2 billion, down from $3.3 billion in the second quarter and down from the $4.2 billion recorded a year ago. Lower liquids realizations and the absence of a non-US tax item decreased earnings by $1.1 billion.
US upstream earnings declined $569 million year-over-year at $37 million in this year’s third quarter compared with $606 million in third-quarter 2018. Outside the US, upstream earnings were $2.1 billion, down $1.5 billion from the prior year.
Companywide production totaled 3.9 million boe/d, up 3% year-over-year. Natural gas production was 9 bcfd, up 0.5% from third-quarter 2018. Excluding entitlement effects and divestments, liquids production increased 4% driven by Permian basin growth.
US liquids volumes of 654,000 b/d were up 1% quarter-over-quarter. Hurricane downtime in the Gulf of Mexico offset Permian growth. Permian unconventional development continued with production up 7% from the second quarter and more than 70% year-over-year, the company said.
Downstream earnings were $1.2 billion, up $780 million from this year’s second quarter reflective of lower scheduled maintenance and improved industry margins, partly offset by narrower North American differentials.
Capital and exploration expenditures were $7.7 billion.
