Exxon Mobil 3rd-Quarter Profit Falls 7.4%

Exxon Mobil Corp.'s (XOM) third-quarter earnings fell 7.4% on lower production and weaker realized liquids and natural gas prices, offsetting benefits from stronger margins in its refining arm.

The world's largest publicly traded oil company's exploration and production business has seen lower oil-and-gas production in recent quarters and also hasn't been immune to softer commodities prices.

Exxon, which is also the largest natural gas producer in the U.S. after its acquisition in 2010 of XTO Energy Inc. for about $26 billion, has continued to expand its shale-gas assets despite stubbornly low natural gas prices. Last month Exxon said it agreed to buy Canadian oil and natural-gas producer Celtic Exploration Ltd. for 2.59 billion Canadian dollars (US$2.63 billion)--its largest such deal since it acquired XTO--as the company remains optimistic about long term prospects for the sector.

Exxon Mobil reported a profit of $9.57 billion, or $2.09 a share, down from $10.33 billion, or $2.13 a share, a year earlier. Revenue decreased 7.7% to $115.71 billion.

Analysts polled by Thomson Reuters most recently projected earnings of $1.95 on revenue of $112.4 billion.

Exploration and production earnings declined 29% to $5.97 billion amid lower prices for liquids and natural-gas as production fell 7.5% on an oil-equivalent basis.

Refining and marketing earnings more than doubled to $3.19 billion mainly on stronger refining margins.

ConocoPhillips (COP) last week reported third-quarter results in which lower oil and gas prices took a toll, though production results in unconventional U.S. oil formations helped the company top analysts' expectations.

Chevron Corp. (CVX) and Hess Corp. (HES) are set to report third-quarter financial results Friday.

Exxon shares closed Wednesday at $91.17 and were inactive premarket.

Write to Tess Stynes at [e-mail]

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