NEW YORK (TheStreet) -- Shares of Royal Dutch Shell (RDS.B) were higher in late morning trading on Tuesday, after the company reported net profit for the 2016 third quarter that was up 18% year over year to $2.8 billion, or 35 cents per share, based on a current cost of supplies and excluding exceptional items. This beat forecasts of $1.71 billion.
The oil company's smashing results were mainly due to its $54 billion aquisition of gas group BG in a deal that was finalized earlier this year, Mizuho Securities Director of Futures Bob Yawger said on BloombergTV's "Bloomberg Markets: Americas" on Tuesday morning.
"The story today with Shell is a story of their acquisition of BG. I think production came on quicker than expected. They were able to turn that production into a profit quicker than expected," he explained.
Shell's results stood out above the rest, as a number of oil copmanies "broadcasted" impressive outlooks, he said. "Looking at the results right now, that's highly debatable. Some people can. Some people can't."
Whether an oil company can post impressive numbers or not depends on "how close to the surface the majority of their oil is," Yawger said. "If you're going to be working in a tight formation spot where it's very difficult to bring either crude oil or gas to the surface, you're going to struggle. If you have a formation that's easier to bring gas or crude oil to the surface, you're going to profit."
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