Exxon Mobil Corp, the world's largest publicly traded oil company, reported a quarterly profit on Thursday that topped expectations, as higher margins from its refining arm countered a 7.5 percent decline in oil and gas output. Exxon and other global oil producers are buying oil and gas assets in North America as they struggle to raise production in a sector where vast energy resources are tightly controlled by countries like Brazil.
Earlier this month, Exxon agreed to buy Celtic Exploration Ltd for $2.64 billion. That deal will give Exxon access to some of the most promising shale oil and gas region in Western Canada. And in September, Exxon said it planned to buy 196,000 acres in the Bakken shales in North Dakota and Montana in a $1.6 billion deal. Refining margins have improved as companies benefit from processing cheaper grades of crude oil from Canada as well as shale basins like the Eagle Ford in south Texas.
Earnings from Exxon's global refining business more than doubled to $3.2 billion. The company's exploration and production business had a profit of $5.97 billion, down 29 percent. The Irving, Texas company said its third-quarter earnings had fallen to $9.57 billion, or $2.09 per share, from $10.33 billion, or $2.13 per share, a year earlier.
Analysts on average had expected a profit of $1.95 per share, according to Thomson Reuters I/B/E/S. Exxon's revenue fell 8 percent to $115.7 billion. Oil and gas output declined 7.5 percent to 3.96 million barrels oil equivalent per day, Exxon said.