Exxon Mobil Corporation (XOM)

[OilStockReport]

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The oil industry has seen some rough patches over the past year, and even the big oil companies have been hurting. Despite Exxon Mobil’s reducing production numbers, they have continuously been making some serious cash along the way. This shows how strong this company really is, and could continue to be. Agustino Fontevecchia explains how Exxon is able to beat the odds.

Revenue for the Irving, Texas-based oil giant was $125.3 billion, up 31.5%, despite falling production. While crude oil prices tanked through the third quarter, they were still up from a year ago, with both Brent and WTI crude trading at substantial premiums.

Exxon Mobil capitalized on higher energy prices, taking its upstream earnings up 187% to $8.4 billion. Increased prices for oil and natural gas across the board helped U.S. earnings increase 18.5% to $1.2 billion and international revenues jump 163% to $7.2 billion. Oil equivalent production, though, fell 4% to 4.282 billion barrels per day. The company blamed OPEC quota effects and divestments for the fall.

Downstream earnings surged on widening refining margins, coming in at $1.6 billion, up 36.1%. Volume and mix effects, along with a $1 billion refining margin expansion, pushed U.S. revenues to $810 million and international downstream revenues to $769 million.

Chemical earnings hit $1 billion.

“ExxonMobil’s results for the third quarter of 2011 reflect a continued commitment to operational integrity, disciplined investing and superior project execution,” said Exxon chairman Rex Tillerson.

The seasoned oil executive said capital and exploration expenditure totaled $8.6 billion in the third quarter, taking yearly expenditure to a record $26.7 billion for the first nine months as his company “continue[s] pursuing new opportunities to meet growing energy demand while supporting economic growth, including job creation.”

Exxon is clearly working hard to stay on top of their game and bring in cash for the company. They are playing the cards they were dealt, and playing them well. This is a strong company, and has the outlook to maintain this.