ExxonMobil’s Chief Financial Officer, Kathy Mikells reported a 60% year-on-year increase in crude oil production offshore Guyana, during the third-quarter earnings call.
This growth contributed to an overall production rate across the company, of 4.6 million oil-equivalent barrels per day—its highest level since 2011. This increase was part of a strong showing of US$8.6 billion in earnings, or US$1.92 per share (assuming dilution). Cash flow from operating activities was US$17.6 billion, with free cash flow at US$11.3 billion. Capital and exploration expenditures reached US$7.2 billion for the third quarter, totaling US$20 billion year-to-date, aligning with Exxon’s full-year guidance of US$28 billion.
“We delivered one of our strongest third quarters in a decade,” said Darren Woods, Chairman and Chief Executive Officer.
Government data and Exxon confirmed a reduction in Guyana’s production in the third quarter due to a July shutdown of the Liza projects, executed to facilitate the hookup of a gas pipeline for Guyana’s Gas-to-Energy project. Third-quarter production was recorded at slightly over 52 million barrels, a 9.8% decrease from the 57.69 million barrels in the second quarter. However, Exxon reported that September saw record production in Guyana, with an average rate of around 660,000 barrels per day (b/d).
Production offshore Guyana was also a highlight of the third-quarter reports of ExxonMobil’s Stabroek Block partners, Hess and CNOOC.
Offshore Guyana, Exxon and its partners Hess and CNOOC have committed over $50 billion in investments to develop reserves discovered in the Stabroek Block. Current production in the country is around 660,000 b/d, with projections indicating growth to 1.3 million b/d or higher by 2027, with further expansion possible thereafter.
Additionally, Exxon achieved record quarterly production in the Permian Basin, including from its recent acquisition, Pioneer, surpassing 1.4 million oil-equivalent b/d. ExxonMobil’s year-to-date upstream earnings totaled US$18.9 billion, marking a US$1.5 billion increase over the same period last year. According to Mikells, improved earnings were driven by production increases from assets like Guyana’s Payara startup, the addition of Pioneer, and growth in the Permian heritage assets, contributing US$2.8 billion to third-quarter earnings. Although higher realizations for liquids were achieved, flat price impacts were noted as they were offset by lower gas prices.
Exxon is in negotiations with the Guyana government to establish terms for a new petroleum agreement for the shallow-water block S8, awarded to Exxon after the country’s first offshore auction.
