Exxon Mobil reported stronger-than-anticipated third-quarter results, with increased oil production compensating for lower industry refining margins and prices. The oil giant's adjusted earnings were $1.92 per share for the September quarter, exceeding the Capital IQ consensus of $1.89. Although total revenue and other income dropped to $90.02 billion from $90.76 billion last year, it surpassed the Street's estimate of $88.36 billion. Oil prices fell approximately $5 a barrel to $80 during the third quarter, driven by uncertainties in supply and demand, noted Chief Financial Officer Kathy Mikells in prepared remarks.
Refining margins also decreased sequentially, with extraordinary global demand 'more than met by incremental supply from recent industry start-ups,' as per Mikells. 'Even with these market challenges, our diverse and integrated portfolio continues to yield robust results,' Mikells stated. 'Natural gas prices saw an upturn during the quarter, propelled by summer demand attributed to warm weather in North America and supply concerns in Europe.' Exxon's stock rose by 1.9% in recent premarket trading.
Upstream segment earnings slightly increased to $6.16 billion from $6.13 billion in the same quarter last year. The production volume increased to 4.58 million oil-equivalent barrels per day, surpassing the 4.51 million-barrel forecast set by analysts. Earnings within the energy product operations segment plummeted to $1.31 billion from $2.44 billion last year, negatively influenced by diminished refining margins and a tornado-related shutdown at the company's Illinois refinery.
On a positive note, chemical products surged to $893 million from $249 million last year, while specialty product earnings advanced to $794 million from $619 million in the prior year. Total costs and other deductions reduced to $76.99 billion from $77.06 billion year-over-year. The company reported achieving $11.3 billion in structural cost savings throughout the organization since 2019, according to Chief Executive Darren Woods.
Capital and exploration expenditures totaled $7.16 billion, a slight increase from $7.04 billion last year, aligned with the company's annual target of $28 billion. 'Looking forward, we anticipate scheduled maintenance in the upstream to reduce volumes by 30,000 oil-equivalent barrels per day in the fourth quarter,' Mikells stated.
Exxon also reaffirmed its full-year production outlook of 4.3 million oil-equivalent barrels per day, which includes a Permian production estimate of 1.2 million oil-equivalent barrels per day, added the CFO..