Exxon Mobil’s Q4 Profit Lifted by Higher Oil Prices (XOM)

Exxon Mobil Corporation (NYSE: XOM), the Irving, Texas-based oil and gas major, reported higher profit in its fourth quarter, driven by higher oil prices which partially offset lower natural gas and soft refinery returns.�

Exxon, which is the world�s largest publicly traded oil company, reported net income of $9.4 billion for the fourth quarter ended December 31, 2011, compared with $9.25 billion reported for the same period in the previous year. The company�s revenue for the quarter rose 16% on a year-over-year basis to $121.6 billion.�

Exxon�s improved earnings for the quarter reflect higher oil prices. However, natural gas prices continued to fall in the U.S. in the fourth quarter. Exxon is the largest gas producer in the U.S. In 2010, the company had acquired XTO Energy for $25 billion to boost its natural gas business. However, a number of analysts had said that the company paid too much to acquire XTO.�

David Rosenthal, Vice President for Investor Relations at Exxon Mobil, defended the company�s investment in natural gas, saying that over the long-term it would be seen as a wise investment. Rosenthal said in a conference call that Exxon remains bullish on the future of natural gas and continues to be focused on the long-term. According to Rosenthal, the company�s merger with XTO was working out well with improved productivity and efficiency driving down the costs of gas wells.�

Like Chevron Corporation (NYSE: CVX), Exxon�s refining and marketing results were also disappointing in the fourth quarter. Exxon�s refining and marketing earnings fell to $425 million in the quarter from $1.5 billion reported the year before.�

Exxon�s total production of oil and gas also slipped in the fourth quarter of 2011.�

Rex W. Tillerson, Chairman and CEO of Exxon Mobil, said that the company recorded strong results while investing at record levels to develop new supplies of energy. Tillerson noted that capital and exploration expenditures were a record $36.8 billion in 2011.�

Exxon Mobil shares are down in trading today following the release of fourth-quarter financial results. At last check, the stock was down 2.04% to $83.75.�