Exxon Mobil stock rallies after earnings beat expectations, stock repurchases expected to begin next year


Shares of Exxon Mobil Corp. XOM, +0.25% rallied 1.1% in premarket trading Friday, after the oil and gas giant reported better-than-expected third-quarter profit and revenue, as improved demand and increased realizations helped all of the company’s business segments generate positive results. The company swung to net income of $6.75 billion, or $1.57 a share, from a loss of $680 million, or 15 cents a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $1.58 beat the FactSet consensus of $1.56. Total revenue jumped 59.7% to $73.79 billion, well above the FactSet consensus of $71.13 billion. In the Upstream business, average realizations for crude oil increased 7% from the second quarter and natural gas realizations grew 28%. Production volume in the Permian averaged 500,000 oil equivalent barrels per day, up 30% from a year ago. Cash flow from operating activities was $12.1 billion. “We anticipate the company’s strong cash flow outlook will enable us to further increase shareholder distributions by up to $10 billion through a share repurchase program over 12-24 months, beginning in 2022,” said Chief Executive Darren Woods. The stock has rallied 56.0% year to date through Thursday, while the S&P 500 SPX, +0.19% has advanced 22.4%.

This article was originally published by Marketwatch.com. Read the original article here.

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