Exxon Mobil Corp, one of the world's largest oil and gas companies, recently reported a record first-quarter profit that exceeded Wall Street's expectations. Despite a slight dip in energy prices, the company's rising oil and gas output helped double its profits from a year ago.
Exxon's Chief Financial Officer, Kathryn Mikells, attributed the company's success to strong production growth, driven by new offshore developments and refining facilities. The company's oil and gas production rose to its highest level since 2019, with increased output from the Permian Basin and Guyana partially offsetting a 16% drop in oil prices from a year ago.
In addition, Exxon expanded its fuel production by starting up a new crude processing unit at its Beaumont, Texas, plant. The unit added 250,000 barrels per day of oil refining capacity.
Exxon's focus going forward will be on increasing production in the Permian, Guyana, and the Beaumont refinery expansion. While the company is open to mergers or acquisitions that offer synergies and good returns for shareholders, it is currently prioritizing organic opportunities.
The COVID-19 pandemic caused significant disruptions in the energy industry, but oil companies are now benefiting from strong demand and cost-cutting measures implemented during the lockdowns. Exxon's impressive first-quarter results demonstrate the company's ability to adapt and thrive in a constantly changing market.
Overall, Exxon Mobil Corp's strong first-quarter performance underscores the resilience of the oil and gas industry and the importance of adaptability in times of crisis.
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