Exxon Mobil posted its best profits in seven years Tuesday thanks in part to a global surge in oil and gas prices.
Exxon Mobil (XOM) – Get Exxon Mobil Corporation Report posted better-than-expected fourth quarter earnings Friday, while unveiling plans for a $10 billion share buyback, as surging global oil and gas prices helped deliver the strongest group profits in seven years.
Exxon said adjusted earnings for the three months ending in December were pegged at $2.05 per share, or $8.87 billion, up from just 3 cents per share over the same period last year and firmly ahead ahead of the Street consensus forecast of $1.93 per share. Group revenues, Exxon said, surged 82.6% to just under $85 billion, missing analysts’ estimates of a $91.85 billion tally.
West Texas Intermediate crude prices traded between $77 and $84 per barrel over the three months ending in December, a range that was around 80% higher than the deep pandemic lows recorded over the same period last year.
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Looking into the coming year, Exxon said it sees capital spending in the region of $21 billion to $24 billion, well ahead of forecasts,
“Our effective pandemic response, focused investments during the down-cycle, and structural cost savings positioned us to realize the full benefits of the market recovery in 2021,” said CEO Darren Woods. “Our new streamlined business structure is another example of the actions we are taking to further strengthen our competitive advantages and grow shareholder value.’
“We’ve made great progress in 2021 and our forward plans position us to lead in cash flow and earnings growth, operating performance, and the energy transition,” Woods added.
Exxon shares were marked 1.4% higher in pre-market trading immediately following the earnings release to indicate an opening bell price of $77.00 each.
Last week, Exxon’s smaller domestic rival, Chevron Corp. (CVX) – Get Chevron Corporation Report tagged a muted near-term outlook to its softer-than-expected fourth quarter earnings of $5.1 billion, or $2.65 per share.
The group said 2022 oil and gas production could fall by as much as 3%, or be flat to 2021 levels, even as output in the Permian shale basin accelerates.
