The biggest oil and gas company in the United States beat analyst forecast this week, even with a 49 percent slump in earnings for fiscal third quarter of 2019. Low oil and natural gas prices helped buoy these prices down.
Indeed, Exxon only reported earnings of $3.17 billion USD for the quarter. Again, this is down by nearly half of the $6.24 billion USD reported in the same quarter one year ago. Similarly, earnings per share slipped from US$1.46 to US$0.75.
But even with all that, EPS for the third quarter of 2019 still beat the consensus of most analysts, who had originally estimated Exxon’s EPS would total US$0.67. Lower oil prices is mostly to blame for weaker earnings, but that was a consistent trend among many supermajors, including Shell. And Shell also beat analyst estimates on stronger oil income and better liquefied natural gas training.
Exxon remains the biggest oil company in the US, as well as one of the top ten oil producers in the world. On that note, the company boosted its oil-equivalent production for fiscal Q3 of 2018 to 3.9 million barrels per day.
That year, Exxon was the sixth largest oil producer in the world, in terms of volume. This feat rests largely on state-controlled companies—like Saudi Aramco, Rosneft (Russia), Kuwait Petroleum, China National Petroleum Corporation, and National Iranian Oil Company.
Total upstream for liquid production increased by 5 percent year-over-year, driven on growth in the Permian Basin. This is a top priority for the US supermajor producer right now and over the next few years, particularly with new development coming from massive discoveries of oil just offshore of Guyana.
Exxon chairman and chief executive Darren W. Woods explains, “Growth in the Permian continues to drive increased liquids production and we are ahead of schedule for first oil in Guyana. The value of our position in Guyana improved further this quarter with an additional discovery, our fourth this year.”