Exxon Mobil quarterly profit rises 49 percent

IRVING, Texas, Thu Jul 26, 2012 – Exxon Mobil Corp., the world’s largest publicly traded oil company, said on Thursday quarterly profit rose 49 percent, helped by a gain related to divestments and tax items.
The company reported a second-quarter profit of $15.9 billion, or $3.41 per share, up from $10.68 billion, or $2.18 per share, a year earlier.
Oil and gas output in the quarter declined 5.6 percent.

Exxon CEO says hopes Mexico extends oil reforms

NEW YORK, Wed Jun 27, 2012 – Exxon Mobil would be interested in investing in Mexico’s oil and gas sector, but only if the Mexican government allows the company to own some energy reserves, its chief executive said on Wednesday.

“We’re not real keen on service contracts, we’re not real keen on fixed margin contracts. Although we have some of those, they’re not particularly great for us,” Exxon Mobil CEO Rex Tillerson told reporters after a speech.

Mexico’s constitution bars outside exploitation of the country’s oil resources, making joint ventures or profit sharing with private companies difficult.

But the country has been seeking to open the door to attract investment from foreign oil and gas producers to help tap the vast reserves there.

Mexico’s state oil monopoly Pemex awarded contracts to some foreign companies earlier this month to help develop offshore fields, but those contracts pay bonuses based on performance and do not allow for ownership of oil and gas.

Tillerson said he was encouraged by the initial moves to open the Mexican energy sector, which could eventually attract financing and technology from the global industry.

“I think it’s going to be a long process. And what we’re advocating is just for Mexico to take the next step,” he said.

In addition to its offshore oil fields, Mexico has the world’s fourth-largest reserves of shale gas, according to the U.S. Energy Information Administration.

But so far, Pemex has drilled relatively few wells in those fields near the Rio Grande because it has little capital to develop those areas.

Exxon Mobil narrowly beats Wall Street forecasts, shares fall

IRVING, Texas – Exxon Mobil Corp’s. fourth-quarter profit narrowly beat Wall Street’s expectations as rising crude oil prices offset falling margins for chemicals, engine lubricants and fuel.

The company posted net income of $9.4 billion, or $1.97 per share, compared with $9.25 billion, or $1.85 per share, in the year-ago period.

Analysts expected earnings of $1.96 per share, according to Thomson Reuters I/B/E/S.

Total revenue rose 16 percent to $121.61 billion. Analysts expected $119.7 billion in revenue.

Oil companies around the world benefited from a jump in oil prices. Crude futures traded in New York jumped about 25 percent to end the fourth quarter at $98.83 per barrel. Brent prices gained 5 percent during the quarter.

Shares of Exxon Mobil fell 1 percent to $84.60 in premarket trading.

Exxon third quarter profit rises 41 percent, shares higher

IRVING, Texas ― Exxon Mobil Corp’s. profit rose 41 percent in the third quarter, slightly ahead of Wall Street estimates, as gains in crude oil prices and higher refining margins boosted results.

Oil companies around the world benefited in the third quarter from a jump in oil prices. Crude futures traded in New York averaged about $90 per barrel in the third quarter, up 18 percent from a year-ago, and Brent crude rose soared 48 percent.

“Their oil and gas production mix was a tick higher to the gas side than I thought,” said Phil Weiss, oil analyst at Argus. “The concern I have is that they are becoming gassier and gassier, which is less lucrative.”

Exxon is spending heavily to increase its shale gas production, especially in North America. Last year, it closed a deal for gas producer XTO Energy, and the oil company has steadily been purchasing acreage in shale fields like the Marcellus in the Eastern United States.

In the first nine months of this year, Exxon spent a record $26.7 billion.

The company realized better prices for natural gas in the third quarter, but hefty supplies have kept natural gas markets in North America depressed and trading at a deep discount to crude and natural gas liquids.

Exxon, the world’s largest publicly traded oil company, reported a profit of $10.33 billion, or $2.13 per share, up from $7.35 billion, or $1.44 per share a year earlier.

Analysts on average had expected a profit of $2.12 per share, according to data from Thomson Reuters I/B/E/S.

Oil and natural gas production fell 4 percent to 4.28 million barrels oil equivalent (boe) per day in the quarter.Profit in the company’s exploration and production business rose 54 percent to $8.39 billion, while Exxon’s refining business saw profit rise 36 percent. Better refining margins increased Exxon’s earnings by $1 billion, it said.

Shares of Exxon rose to $82.19 before the start of regular trading, up from a New York Stock Exchange close of $81.07.

Exxon sues government over lucrative canceled Gulf leases

NEW YORK ― Exxon Mobil Corp. sued the government to reverse a decision by the Department of the Interior to cancel offshore oil and gas leases estimated to yield tens of billions of dollars of oil.

The lawsuit, filed on Aug. 12 in the federal court in Lake Charles, La., said the decision arbitrarily deprived it of rights under three of five leases for what is called the Julia field. It said this took away Exxon’s ability to produce a reservoir believed to hold billions of barrels of oil.

Two other leases have yet to expire. The complaint was reported earlier by The Wall Street Journal.

The lawsuit against the Interior Department and Secretary Kenneth Salazar comes after regulatory scrutiny of drilling activities grew in the wake of the April 2010 blowout of BP Plc.’s Deepwater Horizon well in the Gulf of Mexico.

The government’s initial rejection of the lease extension came in 2009, however.

“Our priority remains the safe development of the nation’s offshore energy resources, which is why we continue to approve extensions that meet regulatory standards,” an Interior Department spokeswoman said. “We are reviewing the complaint in accordance with standard procedures.”

The agency has denied extensions when a company fails to comply with the requirements to obtain them, it said.

Exxon, the world’s largest publicly traded oil company, said the dispute arose after the government rejected its October 2008 request for a “suspension of production.”

The Irving, Texas-based company said federal law allows such suspensions for the purpose of advancing future development in a safe manner.

Following several appeals, the Interior Department concluded in its May 31 decision that Exxon lacked a “commitment” to producing oil at the time the leases expired.Exxon and its partner Statoil ASA spent more than $300 million drilling two “producible” wells on the Julia prospect.

As part of its development strategy, Exxon was planning to drill three to six development wells and join them to a planned production facility operated by Chevron Corp. located about eight miles away, according to the company’s lawsuit.

That initial phase of development was estimated to cost $1 billion, Exxon said.