Exxon Mobil’s third-quarter profit beat analysts’ expectations as the oil and gas giant benefited from contributions from Pioneer Natural Resources, a recent acquisition.

Exxon earned $8.6 billion, or $1.92 per share, for the quarter ended September 30. A year earlier, the Spring, Texas-based company earned $9.07 billion, or $2.25 per share.

The performance exceeded Wall Street expectations, although Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts surveyed by Zacks Investment Research had expected earnings of $1.91 per share.

Shares rose nearly 2% before the market opened Friday.

Revenue totaled $90.02 billion, below Wall Street’s estimate of $93.51 billion.

Exxon’s net production reached 4.6 million barrels of oil equivalent per day during the third quarter, an increase of 5% from the previous quarter.

Oil price fell recently after a retaliatory strike by Israel The attacks on Iran targeted military sites rather than the oil fields of the world’s seventh-largest crude producer. In the long term, oil prices are expected to fall, not rise. This is because the balance between supply and demand tilts toward the supply side, a dynamic that typically pushes oil prices lower.

Exxon announced in July 2023 that it would pay $4.9 billion for Denbury Resources, an oil and gas producer that has entered the carbon capture and storage business and stands to benefit. changes in US climate policy.

Three months later, he announced that he would spend $60 billion on shale development. Pioneering natural resources. This agreement received authorization from the Federal Trade Commission in May.

Exxon increased its quarterly dividend by 4%.

Also Friday, Chevron Corp. reported adjusted earnings of $2.51 per share on revenue of $50.67 billion. Wall Street was hoping for earnings of $2.47 per share on revenue of $49.88 billion. Like Exxon, Chevron does not adjust its reported results based on one-time events such as asset sales.