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News

ExxonMobil's Big Oil Output Helps Cushion The Blow Of Weak Prices

Author: Lekha Gupta | October 31, 2025 08:03am

Exxon Mobil Corporation (NYSE:XOM) shares slipped in premarket trading Friday, even as the company reported third-quarter 2025 earnings of $8.1 billion, or $1.88 per share, topping analyst expectations of $1.47.

Details

The company’s total revenues of $85.29 billion missed the consensus forecast of $87.71 billion.

ExxonMobil generated $14.8 billion in cash flow from operations and adjusted free cash flow of $6.3 billion for the quarter, ending the period with a cash balance of $13.8 billion.

Production Update

Total production reached 4.8 million oil-equivalent barrels per day, up 139,000 oil-equivalent barrels per day sequentially, led by record production in Guyana and the Permian assets.

Also Read: Exxon Mobil Trades Flat As Investors Await Q3 Earnings Report

The company stated that the Yellowtail project came online in the quarter (four months early) and is expected to add 250,000 oil-equivalent barrels per day, raising Guyana’s total capacity to over 900,000 barrels per day.

Segment Performance

The Upstream segment reported third-quarter earnings of $5.7 billion, an increase from the previous quarter, primarily due to volume growth from advantaged assets, including the Permian Basin and Guyana, cost savings, and higher crude realizations.

Energy Products posted earnings of $1.8 billion, an increase from the second quarter, fueled by higher refining margins and volumes.

Chemical Products’ earnings were $515 million, which was higher sequentially, led by improved margins, record high-value product sales, and a decline in expenses.

Specialty Products’ earnings declined by $40 million sequentially to $740 million owing to weak margins and lower seasonal volumes.

Dividend & Share Repurchase

The company declared a fourth-quarter dividend of $1.03 per share, up 4%, payable on December 10, 2025, to shareholders of record as of November 14, 2025.

The company’s financial strength supported the distribution of $9.4 billion to shareholders, including $4.2 billion in dividends and $5.1 billion in share repurchases in the quarter.

Cost Savings

ExxonMobil’s structural cost savings initiatives continued to deliver, with $2.2 billion saved year-to-date.

The company has achieved over $14 billion in cumulative Structural Cost Savings since 2019, including $2.2 billion in 2025.

Management Commentary

Darren Woods, chairman and chief executive officer, said, “We delivered the highest earnings per share we’ve had compared to other quarters in a similar oil-price environment. In Guyana, we broke records with quarterly production surpassing 700,000 barrels per day, and started up the Yellowtail development four months early and under budget.”

“In the Permian, we also set another production record of nearly 1.7 million oil-equivalent barrels per day, while continuing to expand the use of proprietary technologies like our lightweight proppant that improves well recoveries by up to 20%.”

Outlook

The company sees full-year Permian production of ~1.6 million oil-equivalent barrels per day and expects cash capex slightly below the lower end of guidance of $27 billion-$29 billion, excluding acquisition costs.

ExxonMobil says that it is on track to exceed $18 billion by 2030.

Price Action: XOM shares were trading lower by 1.04% to $113.50 premarket at last check Friday.

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Image via Shutterstock

Posted In: XOM

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