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Exxon Mobil stock rallies after earnings beat expectations, stock repurchases expected to begin next year

Exxon Mobil stock rallies after earnings beat expectations, stock repurchases expected to begin next year

Shares of Exxon Mobil Corp. XOM, -1.23% rallied 1.1% in premarket trading Friday, after the oil and gas giant reported better-than-expected third-quarter profit and revenue, as improved demand and increased realizations helped all of the company’s business segments generate positive results. The company swung to net income of $6.75 billion, or $1.57 a share, from a loss of $680 million, or 15 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.58 beat the FactSet consensus of $1.56. Total revenue jumped 59.7% to $73.79 billion, well above the FactSet consensus of $71.13 billion. In the Upstream business, average realizations for crude oil increased 7% from the second quarter and natural gas realizations grew 28%. Production volume in the Permian averaged 500,000 oil equivalent barrels per day, up 30% from a year ago. Cash flow from operating activities was $12.1 billion. "We anticipate the company’s strong cash flow outlook will enable us to further increase shareholder distributions by up to $10 billion through a share repurchase program over 12-24 months, beginning in 2022," said Chief Executive Darren Woods. The stock has rallied 56.0% year to date through Thursday, while the S&P 500 SPX, -0.13% has advanced 22.4%.

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