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Oil & Gas

Exxon Mobil paints rosy 3Q earnings picture based on higher oil and gas prices

Exxon Mobil Corporation (NYSE:XOM) expects its third-quarter operating profit to be lifted by increases in oil, gas and fuel prices, according to a securities filing posted after the bell Wednesday.

The largest oil producer in the US is projecting a range of $8.3 billion to $11.4 billion in operating profit, higher than the $7.9 billion it delivered in the second quarter but below its record-setting $19.7 billion a year earlier.

The Street consensus for when Exxon officially reports on October 27 is $9.22 billion, or $2.37 per share.

During the third quarter, Exxon's oil and gas production earnings benefitted from a roughly 30% increase in crude oil prices. The Brent global benchmark at the end of September was near $97 per barrel, up from $72 at the end of June.

Exxon expects oil and gas operating profits to be between $5.2 billion and $6.7 million, compared to $12.4 billion a year earlier.

The reason operating profits were so high in the year-ago quarter was due to skyrocketing natural gas prices following Russia’s invasion of Ukraine.

Shares of Exxon fell 0.9% in extended trading Wednesday after dropping 3.7% during the trading session.

Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com

Follow him on Twitter @andrew_kessel

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