Exxon Mobil Corp (NYSE: XOM) blew past estimates in its fiscal third quarter. Shares of the company were up 2.0% in premarket trading as higher demand helped all business segments turn positive.
Share repurchase and cash flow
Exxon generated $12.1 billion in cash flow that helped pay off debt and strengthen the balance sheet. On CNBC’s “Squawk Box”, CEO Darren Woods said:
The steps that we took before and through the pandemic; cutting costs, becoming more capital efficient, reorganising the business, are now delivering results. We paid off $11 billion of debt, and we anticipate paying back almost all the debt by year-end that we put on the balance sheet in 2020.
The oil giant also said it’ll buy back roughly $10 billion worth of its stock over the next two years.
Q3 financial performance
Exxon reported $6.75 billion in net income that translates to $1.57 per share. In the same quarter last year, its net income was capped at a sharply lower $680 million or 15 cents per share. Adjusted for one-time items, the oil giant earned $1.58.
The American multinational generated $73.79 billion in revenue that represents a year-over-year growth of 59.7%, as per the earnings press release. According to FactSet, experts had forecast $1.56 of adjusted EPS on $71.13 billion in revenue.
Other notable figures
Other notable figures include a 7% increase (sequentially) in crude oil realizations and a 28% increase in natural gas realizations related to the Upstream business. Production volume in the Permian was up 30% from last year.
Last month, Harris Financial Group’s Jamie Cox said Exxon stock will continue to perform well on rising oil prices.
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