ExxonMobil VP: We Will Not Split Into Two Companies
IRVING, Texas -- ExxonMobil Corp. has no plans to become two separate companies like its competitors ConocoPhillips and Marathon Oil, David Rosenthal, the company's vice president of investor relations, reiterated during a conference call this morning.
"We have divested a number of assets in the past when it was a good fit," he said. "But [regarding a larger divesture], we're in good shape."
ExxonMobil's fiscal third-quarter net profit jumped 41 percent compared to the same period last year. The oil giant cited higher oil and natural gas prices as the reason for the gain.
ExxonMobil earned $10.33 billion for its latest quarter, compared to $7.35 billion during its 2010 fiscal third quarter. Revenues rose 32 percent during the latest quarter to $125.3 billion.
The greatest gain for the company came in its U.S. refinery business, which quadrupled its profits compared to the same period last year, as fuel prices increased. ExxonMobil also saw a 19-percent domestic and 61-percent international profit gain in its exploration and production business.
"ExxonMobil's results for the third quarter of 2011 reflect a continued commitment to operational integrity, disciplined investing and superior project execution," Rex W. Tillerson, the company's chairman, said in a news release issued by ExxonMobil.
On the negative side of ExxonMobil's ledger was a decrease in hydrocarbon fuel production compared to its fiscal 2010 third quarter. Oil production dropped 7 percent to $2.25 million barrels per day.
Looking ahead, although hydrocarbons remain the bread and butter of ExxonMobil's business, Rosenthal said the petroleum company will increase its natural gas production. For its 2011 fiscal third quarter, ExxonMobil produced more than 12 billion cubic feet per day of natural gas worldwide; that figure would equate to about 4.3 million barrels of oil.
Despite the future production increase, Rosenthal said ExxonMobil is not yet looking to export liquid natural gas (LNG). "It will be interesting to see if LNG export interest rises," he said.
ExxonMobil's net earnings and revenues handily beat the earnings predictions made by Wall Street analysts.