ExxonMobil ended Q3 with record-setting profits, making it one of the best quarters for earnings in the company’s history closing at $19.7 billion. This marks the 40th consecutive year of boosted dividends for the oil giant.
Oil prices were down compared to Q2, but were still 40% higher than they were in Q3 year-to-date. Natural gas prices rose an incredible 172% year-to-date.
ExxonMobil’s record profits are tied to its refinery production and operation. Exxon is reported to produce 4.2 million barrels of crude oil on a daily basis. This is an increase of 177,000 barrels per day from Q2 reports.
The Q3 earnings have boosted revenue for the oil giant by more than 50%. The average price of a barrel of crude oil in the U.S. was around $100 in July but dropped to around $80 in September.
Since natural gas prices have remained at record highs, the demand for liquefied natural gas has been strong as a result. The U.S. has increased the export of liquefied natural gas to both Asia and Europe as a direct result of the war between Russia and Ukraine and its interference with the supply chain.
ExxonMobil CEO Darren Woods stated:
“In the third quarter, crude prices moved back within the upper-end of the 10-year range as higher supply slightly exceeded demand. Natural gas prices rose to record levels in the third quarter, reflecting concerns in Europe about the withdrawal of Russian supply as well as efforts to build inventory ahead of winter.
“Where others pulled back in the face of uncertainty and a historic slowdown, retreating and retrenching, this company moved forward, continuing to invest and build to help meet the demand we see today and position the company for long term success in each of our businesses.”
ExxonMobil returned $8.7 billion to shareholders, paying $3.7 billion in dividends and repurchasing $4.5 billion of its shares. It has repurchased $10.5 billion in stock this year, keeping it on track with its plan to repurchase up to $30 billion of its shares through the end of next year.
The oil giant’s surging cash flow has led to increased dividends starting with its December payment. The quarterly dividend has been raised by $0.03 per share to $0.91 per share.
The company has used some of its cash to pay down additional debt, retiring another $1.2 billion in debt in the quarter, pushing its debt-to-capital ratio to 19%, just below the low end of its target range.
