Exxon Mobil's oil and gas production slipped last year, and its refineries pumped out less gasoline and petrochemicals, but the nation's biggest energy company still managed to report higher earnings in the fourth quarter and a near record for 2012.
The Irving-based company Friday said it earned $9.95 billion in the quarter, up 6 percent from a year earlier, helped by its refining operation's sharply higher profits, especially in the U.S. Its plants along the Gulf Coast and in the middle of the country can use cheaper shale oil, helping to swell its U.S. refining earnings to $697 million in the quarter from just $30 million a year earlier.Chevron Corp., the No. 2 U.S. energy company, also reported strong results on refining gains. Chevron earned a record fourth-quarter profit of $7.25 billion, up 41 percent from a year earlier.For all of 2012, Exxon enjoyed its second-best year ever as net income hit $44.9 billion, just short of 2008's record of $45.2 billion that was boosted by record high crude oil prices. Last year's income was boosted by $9.9 billion in gains on asset sales and restructurings and was a record for per-share earnings because Exxon has been buying back its stock, reducing outstanding shares.During a conference call with financial analysts, Exxon Vice President David Rosenthal said the company has tripled the amount of lower-priced oil that it refines on the Gulf Coast. Gains in refining and chemicals more than offset lower earnings from exploration and production, which fell 12 percent to $7.8 billion on lower output and prices.Earnings for the fourth quarter amounted to $2.20 a share, topping financial analysts' consensus estimate of $2. Revenue was down 5 percent to $115 billion, but in line with Wall Street expectations.The Irving-based company's shares (ticker: XOM) eked out a gain of 5 cents Friday, closing at $90.02.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.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 gas efforts, is based in Fort Worth.The company spent a record $39.8 billion in 2012 on exploration and capital projects, including $12.4 billion in the fourth quarter. That included $1.6 billion in cash to Denbury Resources for about 200,000 acres in the Bakken Shale.Exxon also spent $5 billion in the quarter and about $20 billion in 2012 buying back shares.Jim Fuquay, 817-390-7552Twitter: @Jim FuquayHave more to add? News tip? Tell us
