ExxonMobil Reports Strong Q3 2025 Earnings Driven by Guyana Success

ExxonMobil reported impressive third-quarter earnings for 2025, showcasing resilience in a challenging oil market. The energy giant’s performance was bolstered by its operations in the Stabroek Block offshore Guyana, which have emerged as a key growth area. Despite facing softer oil prices, Exxon managed to increase its overall hydrocarbon output, affirming its strong position in the global energy sector.

Exxon made its initial discovery in Guyana in 2015 with the Liza-1 well, located in the 6.6-million-acre Stabroek Block. This discovery came as a surprise to industry analysts, given the lack of commercially viable oil finds in the region prior to this event. The Houston-based company operates the block, holding a 45% working interest, while Hess, now part of Chevron, holds 30%, and CNOOC controls the remaining 25%.

By the end of September 2025, daily production from the Stabroek Block had reached over 850,000 barrels, thanks to the deployment of four floating production, storage, and offloading (FPSO) vessels, which collectively hold a capacity of 900,000 barrels per day. This rapid growth in production is particularly noteworthy, as Exxon took less than four years to transition from discovery to first oil, a process that typically spans a decade or more in the industry.

Despite the positive production figures, Exxon reported a decline in upstream earnings for the third quarter of 2025, which fell by 7.8% year on year to $5.7 billion. Year-to-date earnings also dropped by 5.6% to $17.8 billion, reflecting the impact of weaker global oil prices. The international Brent crude price decreased by 13% compared to the same quarter last year, contributing to lower earnings per share of $1.76 for the third quarter and $5.16 for the year-to-date, marking declines of 8.3% and 16%, respectively.

In light of these challenges, Exxon demonstrated its commitment to returning value to shareholders by increasing its quarterly dividend by four cents per share, marking a 4% quarter-on-quarter increase to $1.03. This brings the total dividend payment for 2025 to $4, reflecting a 3.5% yield for investors.

The company’s operations in Guyana continue to show promise. The recently launched Yellowtail project began production in late August 2025, and the ONE GUYANA FPSO is ramping up to a capacity of 250,000 barrels of crude oil per day. Once fully operational, this development will enhance the total production in the Stabroek Block to approximately 900,000 barrels daily.

Exxon’s crude oil extracted from the Stabroek Block, known as Golden Arrowhead grade, has a notably low breakeven price of around $30 per barrel. This low cost structure allows Exxon to remain profitable even in a low-price environment. The oil’s high quality, with an API gravity of 36.5 degrees and low sulfur content of 0.25%, further enhances its marketability.

Looking ahead, Exxon plans to increase production capacities with the development of the Uaru and Whiptail projects, each projected to cost $12.7 billion and expected to add a combined total of 92 production and injection wells. Uaru is anticipated to commence operations in 2026, while Whiptail is set to begin production in 2027. Additionally, the Hammerhead project, approved in late September 2025, represents Exxon’s seventh endeavor in the Stabroek Block, with a projected cost of $6.8 billion and a capacity of 150,000 barrels per day.

These developments bring Exxon’s total committed investment in the Stabroek Block to $60 billion, positioning Guyana as South America’s second-largest oil producer, trailing only Brazil. The Stabroek Block is estimated to contain at least 11 billion barrels of recoverable oil, further solidifying its status as a world-class petroleum asset.

Exxon’s favorable production sharing agreement with the government of Guyana, which includes a low royalty rate of 2%, combined with the block’s low breakeven costs and increasing production, will significantly enhance Exxon’s financial performance. The economic benefits are also extending to Guyana, which is experiencing double-digit GDP growth, making it the wealthiest nation in South America by GDP per capita.