Exxon signals strong Q3 earnings, but shy of record

KEY POINTS

• Exxon Mobil on Tuesday signaled third-quarter operating profits will cool from the second quarter's all-time high as oil prices, refining and chemical margins pulled back from the previous period, according to a securities filing.
• The largest U.S. oil producer issued a snapshot of factors affecting third-quarter results that showed operating results could drop to about $11 billion before impairments, down from the $17.9 billion profit from the second quarter.

An Exxon Mobil gas station in Chicago.

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Exxon Mobil on Tuesday signaled third-quarter operating profits will cool from the second quarter's all-time high as oil prices, refining and chemical margins pulled back from the previous period, according to a securities filing.

The largest U.S. oil producer issued a snapshot of factors affecting third-quarter results that showed operating results could drop to about $11 billion before impairments, down from the $17.9 billion profit from the second quarter.

The preview indicated natural gas was the one business to benefit from higher prices last quarter.

Exxon and rivals this year have posted sky-high earnings on rising energy prices and demand aided by cost-cutting.

In the third quarter, U.S. natural gas prices averaged $8.47 per million British thermal units, up from $7.17 mmBtu in the second quarter. Brent prices eased to $98 per barrel in the same period, from an average of $109 between April and June. Exxon's official results are due on Oct. 28.