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ExxonMobil Profits Fall on Lower Crude Prices, Touts Fossil Fuel Deal

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ExxonMobil reported lower profits Friday compared with the year-ago blowout quarter as the oil giant touted recent acquisitions it said balance economic and environmental priorities. online news

The petroleum giant reported third-quarter profits of $9.1 billion, less than half the level in the 2022 period of booming commodity prices. Revenues fell 19 percent to $90.8 billion.

The lower profits reflected an ebbing in commodity prices compared with the year-ago period, when Russia’s invasion of Ukraine lifted oil and natural gas prices.

But ExxonMobil scored higher oil and natural gas volumes compared with the second quarter and said that 2023 capital and exploration spending would be “at the top end” of its forecast “as the company pursues value accretive opportunities,” according to its earnings press release.

“We delivered another quarter of strong operational performance, earnings and cash flows, adding nearly 80,000 net oil-equivalent barrels per day to support global supply,” said Chief Executive Darren Woods.

ExxonMobil, like rival Chevron, has been criticized by environmentalists for mega-deals announced in recent weeks to buy smaller petroleum producers in a big bet on the staying power of fossil fuels in spite of worries about climate change.

In its press release, ExxonMobil characterized its approach as a balanced strategy, noting the company has also announced a $4.9 billion takeover of Denbury Inc. as a bet on carbon capture and sequestration, which the company has touted as a climate solution.

ExxonMobil said its $60 billion takeover of Pioneer Natural Resources would boost petroleum output and “accelerate Pioneer’s path to net zero” emissions.

“The two transactions we’ve announced further underscore our ongoing commitment to the ‘and’ equation by continuing to meet the world’s needs for energy and essential products while reducing emissions,” Woods said.

“Pioneer will help us grow supply to meet the world’s energy needs with lower carbon intensity while Denbury improves our competitive position to economically reduce emissions in hard-to-decarbonize industries.”

Shares of ExxonMobil rose 0.2 percent in pre-market trading.


© Agence France-Presse

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