Exxon Q3 2021 Earnings Report Recap

XOM beat on earnings and on revenue

Key Takeaways

  • Exxon's upstream segment was profitable in Q3 FY 2021 after posting a loss in the year-ago quarter. Exxon did not provide revenue data for the upstream segment in its quarterly press release.
  • The upstream segment is involved in the exploration and development of oil and natural gas properties as well as the extraction and production of crude oil and natural gas. It benefits from higher oil prices.
  • Exxon will begin a $10 billion share repurchase program starting in 2022.
Exxon Earnings Results
Metric Beat/Miss/Match Reported Value Analysts' Prediction
EPS Beat $1.57 $1.47
Revenue Beat $73.8B $69.0B
Upstream Segment Revenue N/A N/A $17.5B

Source: Predictions based on analysts' consensus from Visible Alpha

Exxon (XOM) Financial Results: Analysis

Exxon Mobil Corporation (XOM) reported Q3 FY 2021 earnings that surpassed analyst expectations. Earnings per share (EPS) came in at $1.57, reflecting a sharp turnaround from the year-ago quarter's loss per share of $0.15 and above consensus estimates. It represents the third straight quarter of positive EPS after four consecutive quarters of losses per share through FY 2020. Exxon's revenue exceeded analyst estimates, rebounding off of last year's pandemic-depressed levels. The company's shares rose more than 1% in pre-market trading. Over the past year, Exxon's shares have provided a total return of 118.6%, well above the S&P 500's total return of 40.5%.

XOM Upstream Segment

Exxon's upstream segment posted earnings of $4.0 billion, a significant improvement from the year-ago quarter's loss of $383 million. The company did not provide a revenue figure for its upstream segment in its earnings press release. The upstream segment is one of the company's three main business segments. Upstream operations are involved in the exploration and development of oil and natural gas properties as well as the extraction and production of crude oil and natural gas. Upstream may be contrasted with downstream operations, which refer to the production of refined oil products and comprise another of Exxon's main business segments. Exxon also engages in midstream operations, such as the operation of pipelines and storage facilities.

Exxon's upstream segment benefits from high crude oil prices and suffers when oil prices plunge, as they did early last year in the early stages of the pandemic. But as the global economy has begun to recover, so too have oil prices.  One major factor contributing to the rise in oil prices is the the slow ramp-up of supply by the Organization of the Petroleum Exporting Countries (OPEC) and a group of Russia-led oil producers, collectively called OPEC+. A number of producers from OPEC+ cut production during the pandemic and have been slow to ramp up supply to meet the recovering demand, even amid pressure from the U.S. to increase production. Higher oil prices are helping to boost earnings for Exxon's upstream operations.

XOM Share Repurchase Program

Exxon noted that, starting in 2022, it will begin a share repurchase program of up to $10 billion over 12 to 24 months.

Exxon's next earnings report (for Q4 FY 2021) is estimated to be released on Jan. 31, 2022.

Article Sources
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  2. Visible Alpha. "Financial Data."

  3. TradingView. "Price Chart: XOM and S&P 500."

  4. The Wall Street Journal. "OPEC Alliance Keeps Gradual Production Increases, Despite U.S. Request."

  5. BBC. "Oil Price Rises Above $80 for First Time in Three Years."

  6. ExxonMobil Corp. "ExxonMobil Earns $6.8 Billion in Third Quarter 2021."

  7. Yahoo! Finance. "Earnings Calendar: XOM."

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