Exxon Mobil Corp. earned $9.95 billion in the fourth quarter, a 6 percent gain despite lower profits on its upstream oil and gas operations because of lower prices.
Higher earnings on refining contributed the gains, as growing supplies of U.S. shale oil, which sells for significantly less than overseas benchmarks, boosted Exxon's profit when it refines that oil into gasoline and other petrochemicals.Earnings amounted to $2.20 a share, topping financial analysts' consensus estimate of $2. Revenue was down 5 percent to $115 billion, in line with Wall Street expectations.The Irving-based company's shares (ticker: XOM) were down slightly in early trading.Exxon's overall oil and gas production slipped 5.2 percent from the fourth quarter of 2011. Excluding the impacts of entitlement volumes, which involve revenue sharing with foreign governments, OPEC quota effects and divestments, production decreased 2.1 percent, Exxon said.Exxon, the world's biggest refiner, made $1.8 billion on its "downstream," or refining, operations, more than four times the $425 million a year earlier. That came despite its refining volumes falling 8 percent.U.S. refining margins rose 46 percent as Exxon's cost of crude oil declined. It refines more crude oil than it produces.World crude oil production amounted to 2.2 million barrels a day, down 2 percent, and natural gas production for sale slid 8 percent to 12.5 billion cubic feet a day. U.S. crude production was down fractionally from a year ago, while U.S. gas production was down 6 percent.Exxon's XTO Energy unit, which directs its shale efforts, is based in Fort Worth.Jim Fuquay, (817) 390-7552Twitter: @Jim FuquayHave more to add? News tip? Tell us
