Exxon Mobil 1Q Net Soars 69% On Higher Oil Prices

 
By Isabel Ordonez
Of DOW JONES NEWSWIRES

HOUSTON -(Dow Jones)- Exxon Mobil Corp.'s (XOM) first-quarter earnings surged 69% as the company benefited from high oil prices, stronger refining margins and a jump in production.

The results for the world's largest publicly traded oil company reflected a continued recovery from the recession for the broader energy sector, which appears poised for a return toward the boom days that preceded the financial collapse in 2008.

But while Exxon Mobil's first-quarter earnings of $10.65 billion, or $2.14 a share, bested analysts expectations of $2.06 per share thanks to a jump in natural gas production and higher chemical profits, the oil giant failed to match its previous quarterly profit record and was punished with a slight drop in its stock.

Exxon shares were recently trading $1.16 down at $86.61.

Investors were disappointed that the chemical segment and natural gas output rather than oil production were the drivers behind Exxon Mobil's better-than-expected results at a time when oil prices have increased sharply, said Phil Weiss, an analyst with Argus Research. "Exxon's outperformance was driven by higher natural gas production, which is not quite as profitable as oil," Weiss said.

The company's exploration and production earnings rose 49% as the company's production rose 10% to 4.82 million barrels of oil equivalent per day, boosted by its acquisition last year of XTO Energy Inc., which boosted its natural gas production by 24%. But its oil production was down 15,000 barrels of oil equivalent per day due to the effects of production sharing contracts with foreign governments, OPEC quota and divestments. Excluding these factors, Exxon Mobil's oil production would have been up about 2%, the company said.

Record chemical profits of $1.5 billion also helped Exxon Mobil to beat analysts estimates thanks to strong demand in Asia and low prices of natural gas prices, which is the feedstock used by the company's chemical plants in the U.S. But although it's evident Exxon Mobil's chemical business is doing very well, investors like to see the company beat estimates on strong exploration and production results, said William Featherston, an analyst at UBS.

"We are skeptical investors would pay for a beat in the chemical segment," Featherston said in a note to clients.

Exxon Mobil's first quarter results fell $4 billion short of the record profit of $14.8 billion it generated in the third-quarter of 2008, when oil prices reached a record of $147 a barrel. But the year is still young and the oil giant could see bigger earnings down the road if oil prices continue to climb, says Fadel Gheit, an analyst with Oppenheimer & Co. Exxon's total earnings for 2008 was $45.22 billion.

 

Original article

Views: 57

Comment

You need to be a member of 12160 Social Network to add comments!

Join 12160 Social Network

"Destroying the New World Order"

TOP CONTENT THIS WEEK

THANK YOU FOR SUPPORTING THE SITE!

mobile page

12160.info/m

12160 Administrators

 

Latest Activity

tjdavis posted a photo
3 hours ago
tjdavis posted a blog post
3 hours ago
tjdavis posted a video

Riefenstahl - Official Trailer

A captivating insight into the private estate of Leni Riefenstahl, who became world-famous with her Nazi propaganda film "Triumph of the Will" but kept denyi...
3 hours ago
Doc Vega posted a blog post

Price of Becoming Wise

The answers you seek are not hereLet me make that perfectly clearNow that she is no longer…See More
10 hours ago
Doc Vega commented on Doc Vega's blog post One of Many Witnesses to the JFK Assassination Not Listed in the Warren Report
"tjdavis Thanks for your support! "
yesterday
Doc Vega posted blog posts
yesterday
tjdavis favorited Doc Vega's blog post One of Many Witnesses to the JFK Assassination Not Listed in the Warren Report
Friday
Burbia commented on KLC's group MUSICWARS
Thursday
Doc Vega posted a blog post

The Unnerving Frequency of Disappearances on the Appalachian Trail Pt. 1

There’s another one of the cluster zones of missing persons reports that fails to render the…See More
Wednesday
cheeki kea commented on cheeki kea's photo
Thumbnail

Waste runs deep

"Make USAID - go away."
Wednesday
cheeki kea posted a photo
Wednesday
cheeki kea commented on cheeki kea's photo
Thumbnail

$ Paid Annual Leave $

"Now is the Time for American Workers to Unite! Take back the squandered taxes and demand time off…"
Monday
cheeki kea posted a photo
Monday
Burbia commented on Burbia's blog post Mystery illness strikes Russia with fever, blood symptoms, and no cure in sight.
Monday
Burbia posted a blog post

Mystery illness strikes Russia with fever, blood symptoms, and no cure in sight.

I guess releasing this bio-weapon upon Israeli neighbors would be hitting too close to home. I…See More
Monday
tjdavis posted videos
Monday
tjdavis posted a video

The Electric State | Final Trailer | Netflix

Together, robots & humans can take the whole system down. THE ELECTRIC STATE starring Millie Bobby Brown, Chris Pratt and directed by the Russo Brothers, onl...
Mar 29
Less Prone favorited Sandy's video
Mar 29
Doc Vega's 7 blog posts were featured
Mar 29
tjdavis's blog post was featured
Mar 29

© 2025   Created by truth.   Powered by

Badges  |  Report an Issue  |  Terms of Service

content and site copyright 12160.info 2007-2019 - all rights reserved. unless otherwise noted