ExxonMobil Announces $20 Billion in Share Buybacks for 2027 After Beating Earnings Expectations
Key Facts
ExxonMobil announced a $20 billion share buyback program for 2027 alongside third-quarter results that topped analyst estimates and a quarterly dividend increase to $1.07 per share. The company said execution of the buyback program assumes reasonable market conditions, while the amount matches the level announced for 2026. Adjusted earnings were $17.5 billion, above the average estimate of $16.6 billion, according to Reuters. Adjusted earnings per share were $4.23, compared with an estimate of $4.08. CEO Darren Woods said the company continued to meet global energy needs, drawing on "our unmatched scale, integrated businesses and technological capabilities."
Revenue also expanded in the quarter, reaching $113.16 billion in the three months ended in September, up 33% year over year and above estimates, according to the Associated Press. Earnings under U.S. accounting principles were $15.413 billion, or $3.72 per share, compared with $14.525 billion and $3.48 per share in the second quarter. The company reported operating cash flow of $25.7 billion and free cash flow of $19.1 billion. It returned a total of $9.4 billion to shareholders during the quarter, comprising $4.3 billion in cash dividends and $5.1 billion in share buybacks. These cash flows show the scale of funds the company put toward shareholder returns alongside its announcement of next year's program.
The divergence between the refining and upstream segments was a defining feature of operating earnings. Adjusted earnings in the downstream products segment surged to $9 billion, up 120% from the second quarter as refining margins rose, according to Reuters. By contrast, adjusted upstream earnings fell 20% to $7.3 billion as Brent crude prices declined from the previous three months. Company figures show Energy Products earnings of $9.053 billion, compared with $4.099 billion in the second quarter, while Upstream earnings fell to $7.308 billion from $9.189 billion. The company attributed the improvement in products to higher margins and operating performance, while lower prices weighed on upstream.
Reuters linked higher refining margins to fuel-production capacity disruptions caused by fighting in the Middle East and the Russia-Ukraine war, resulting in a global shortage of diesel supplies. This factor underpinned the refining segment's quarterly outperformance versus upstream, while the company's statement pointed to mixed results across its energy, chemicals and specialty products businesses. Adjusted earnings in the Chemical Products segment were $725 million, compared with $1.214 billion in the second quarter. Specialty Products earnings, meanwhile, rose to $1.283 billion from $969 million. Investments including the expansion of the Beaumont refinery in Texas helped increase the company's distillate production by about 40% since 2019, according to the Associated Press.
On long-term production, ExxonMobil announced that cumulative output had reached one billion barrels each in Guyana and at the Kearl project, and that cumulative liquefied natural gas production at PNG LNG had reached 100 million tonnes. The company also recorded 44 consecutive years of annual increases in its per-share dividend. These figures provide context on the production assets whose milestones the company announced alongside a quarterly decline in upstream earnings, while not erasing the quarterly gap between refining and oil production performance. Reuters reported that the company signed an agreement the previous month to explore for, develop and produce shale oil in Azerbaijan, and held talks about a possible return to Venezuela. These developments remain part of the company's announced activity across different regions alongside its current-quarter results.
ExxonMobil shares rose 1.9% in premarket trading on October 30, while Chevron shares gained 1.1%, according to the Associated Press. The news agency reported that ExxonMobil shares had risen 64% over the previous twelve months. In EL7 data, XOM's daily price was $183.29 on October 29. The company's call to discuss third-quarter results is scheduled for October 30, 2026, from 8:30 a.m. to about 9:30 a.m. Central Time. The presentation and official remarks are expected to be available at around 5:30 a.m. Central Time.