Exxon Mobil's stock slips after profit, revenue miss expectations as production declines

Shares of Exxon Mobil Corp. (XOM) lost 0.3% in premarket trading Friday, after the oil giant reported third-quarter profit and revenue that missed expectations as production fell, while free cash flow beat by a wide margin. Net income dropped to $9.07 billion, or $2.25 a share, from$19.66 billion, or $4.68 a share, in the year-ago period. Excluding nonrecurring items, adjusted earnings per share of $2.27 missed the FactSet consensus of $2.37. Total revenue dropped 19% to $90.76 billion, below the FactSet consensus of $93.41 billion. Production declined 0.8% to 3,688 thousand oil-equivalent barrels per day, compared with the FactSet consensus of 3,716 koebd. Free cash flow fell to 47% to $11.68 billion, but that beat expectations of $9.11 billion. Exxon's earnings come a couple weeks after the company announced a $59.5 billion stock deal to buy Pioneer Natural Resources Co. (PXD), and minutes after rival Chevron Corp. (CVX) reported a third-quarter profit miss but revenue that beat expectations. Exxon's stock has gained 2.1% over the past three months through Thursday, while Chevron shares haves slipped 3.1% and the S&P 500 has dropped 8.8%.

-Tomi Kilgore

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10-27-23 0645ET

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