Earnings Cheat Sheet: Exxon Mobil Surprises with Earnings Up 55% on Higher Production and Oil Prices

Exxon Mobil Corporation (XOM) is the wealthiest and one of the largest publicly traded companies in the world. It engages in the exploration, production, transportation, and sale of crude oil and natural gas. Exxon Mobil reported third quarter and beat analyst expectations before the bell today.

Earnings: Earnings increased 55% to $7,350 million ($1.44 a share) from $4,730 million ($0.98 cents a share) last year.

Revenue: Revenue increased 16% to $95,298 million from $82,260 million last year.

Actual versus Wall Street Expectations: Exxon Mobil’s earnings per share of $1.44 beat estimates of $1.39 per share.

Notable Stats: Oil-equivalent production increased over 20% from the third quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 20%.

Share purchases to reduce shares outstanding were $3 billion and dividends per share of $0.44 increased by 5% compared to the third quarter of 2009.

Did You Hear That? Rex W. Tillerson, CEO, commented: “Despite continuing economic uncertainty, we had strong quarterly results and continued to advance our robust investment opportunities. Third quarter earnings were $7.4 billion, up 55% from third quarter of last year due to higher crude oil and natural gas realizations, improved refining margins, and solid chemical results. Earnings for the first nine months of 2010, excluding special items, were $21.2 billion, up 59% over the first nine months of 2009.

“The Corporation returned over $5 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding.”

Commentary: Shares of Exxon Mobil (XOM) have been trading in an uptrend since the beginning of July; it has been trading above its rising 50 DMA and 200 DMA. The Energy SPDR (XLE) has a 21.1% weight on XOM so one can expect them to trade similarly. XLE is also currently trading above its 50 DMA and 200 DMA. Investors gave XOM and XLE a nice pop post earnings.

Disclosure: No positions in XOM or XLE