SEVERE WX : Heat Advisory View Alerts

Exxon cashes in on higher oil prices — profit soars 57%

ExxonMobil cashed in on the recent surge in oil prices by ramping up output in the booming Permian Basin of ...

Posted: Nov 2, 2018 12:39 PM
Updated: Nov 2, 2018 12:39 PM

ExxonMobil cashed in on the recent surge in oil prices by ramping up output in the booming Permian Basin of Texas.

The results represent a sizable improvement for Exxon, which has been forced to play catch-up after being late to America's shale revolution.

Banking, finance and investments

Business and industry sectors

Business, economy and trade

Commodity markets

Companies

Continents and regions

Economic indicators

Economy and economic indicators

Energy and resources

Energy and utilities

Energy commodities

Energy economic indicators

Exxon Mobil Corp

Financial markets and investing

North America

Oil and gas industry

Oil prices

The Americas

United States

Chevron Corp

Consumer products

Price increases

The largest American oil company reported a 57% jump in profit on Friday, besting Wall Street's expectations. Exxon's (XOM) bottom line enjoyed a $2.6 billion boost from a spike in oil prices relative to the prior year.

Exxon's cash flow from operating activities climbed to a four-year high of $11.1 billion. That signals a much-needed improvement after Exxon's balance sheet came under pressure during the crash in oil prices that began in 2014. Exxon lost its AAA credit rating in 2016 after 67 years.

Exxon showed some glimmers of hope on the production front, a recent sore spot given the spike in US oil output. The company's global oil output inched slightly higher to 2.3 million barrels per day. It had been down in eight of the prior nine quarters.

That growth was led by an acceleration in American production growth to 11%. Exxon is now producing 555,000 barrels of oil in the United States each day.

Exxon pointed to new contributions from the Permian Basin, the shale hotspot that has made the United States the world leader in production. While Exxon was late to the shale boom, it spent $5.6 billion in early 2017 to buy assets in the Permian. Those bets are starting to pay off. Exxon said it has ramped up to 38 rigs in the Permian.

"We expect to continue to increase volumes over time as we ramp up activity in the Permian and new projects start up," Exxon CEO Darren Woods said in a statement.

However, Exxon's overall oil and gas output declined 2% from the prior year, led lower by shrinking natural gas volumes. European gas output tumbled 24%. Exxon's total production has only increased once in the past 10 quarters.

Exxon rival Chevron is growing much faster. Chevron revealed on Friday that its total oil and gas production increased by 9% last quarter to a record high. Oil output jumped 25%, led of course by the Permian Basin.

Chevron's success allowed the company to more than double its third-quarter profit to $4 billion. Cash flow from operations soared to a five-year high. And Chevron, unlike Exxon, is rewarding shareholders with what they want: buybacks. Chevron said it repurchased $750 million of stock last quarter.

Huntsville
Scattered Clouds
94° wxIcon
Hi: 94° Lo: 72°
Feels Like: 98°
Florence
Clear
97° wxIcon
Hi: 94° Lo: 74°
Feels Like: 100°
Fayetteville
Few Clouds
90° wxIcon
Hi: 93° Lo: 71°
Feels Like: 92°
Decatur
Clear
93° wxIcon
Hi: 94° Lo: 72°
Feels Like: 96°
Scottsboro
Clear
77° wxIcon
Hi: 95° Lo: 72°
Feels Like: 78°
WAAY Radar
WAAY WAAY-TV Cam
WAAY Temperatures

Alabama Coronavirus Cases

Confirmed Cases: 94827

Reported Deaths: 1674
CountyConfirmedDeaths
Jefferson12969243
Mobile9836206
Montgomery6609148
Madison531433
Tuscaloosa419073
Unassigned356061
Baldwin350224
Shelby326035
Marshall313035
Lee266045
Morgan236918
Etowah210431
DeKalb179813
Calhoun176113
Elmore171538
Walker152064
Houston138612
Russell13582
St. Clair132817
Dallas131823
Limestone131813
Franklin127020
Cullman122012
Colbert117113
Lauderdale115717
Autauga108621
Escambia107516
Talladega100913
Jackson9684
Tallapoosa85479
Chambers84038
Dale82723
Blount7884
Chilton7886
Butler75836
Coffee7566
Covington73420
Pike7037
Clarke6629
Barbour5735
Lowndes57124
Marion57024
Marengo55315
Hale47326
Bullock46311
Winston45011
Perry4404
Bibb4265
Wilcox42610
Monroe4194
Randolph39610
Pickens3929
Conecuh38810
Washington38612
Sumter36018
Lawrence3481
Macon33414
Crenshaw3143
Choctaw28112
Cherokee2707
Henry2593
Geneva2570
Clay2525
Greene25011
Lamar2202
Fayette2045
Cleburne1261
Coosa1012
Out of AL00

Tennessee Coronavirus Cases

Confirmed Cases: 120585

Reported Deaths: 1215
CountyConfirmedDeaths
Shelby22916301
Davidson20383213
Rutherford646354
Hamilton606253
Knox451338
Williamson347825
Sumner340473
Unassigned312810
Out of TN286014
Wilson226223
Bradley190312
Montgomery190213
Sevier18507
Putnam174018
Trousdale15826
Robertson153519
Hamblen138314
Blount127711
Maury12257
Washington12252
Tipton11959
Madison106417
Sullivan96214
Bedford91811
Hardeman89817
Macon85813
Lake7820
Loudon7253
Bledsoe6951
Gibson6935
Fayette6868
Dickson6792
Anderson6766
Dyer6287
Cheatham5787
Henderson5632
Jefferson5593
Lawrence5506
Obion5464
McMinn53120
Rhea5282
Coffee5223
Carter5126
Warren5074
Lauderdale4898
Greene4678
Haywood4636
Hardin4628
Roane4612
Cocke4572
Hawkins4517
Cumberland4506
Smith4454
Weakley4214
Monroe4189
Giles37813
McNairy3715
DeKalb3492
Franklin3254
Carroll2963
Marshall2903
White2815
Lincoln2801
Henry2760
Claiborne2660
Crockett2664
Johnson2650
Hickman2590
Campbell2471
Wayne2252
Marion2224
Chester2172
Polk2043
Decatur1983
Grainger1960
Overton1801
Unicoi1610
Union1540
Benton1481
Cannon1430
Jackson1241
Humphreys1203
Morgan1181
Scott1180
Grundy1132
Sequatchie1050
Meigs1040
Fentress920
Perry790
Hancock782
Clay750
Stewart740
Lewis731
Moore610
Houston570
Van Buren360
Pickett311

Community Events