Exxon Mobil on Friday beat Wall Street’s estimate for fourth-quarter profit as higher oil and gas production offset lower oil prices and weaker refining margins.
Fourth quarter profit was $7.39 billion. Profit per share was $1.67, beating analyst estimates of $1.56, according to LSEG data.
The No. 1 U.S. oil producer reported total earnings of $33.46 billion for full-year 2024, down from $38.57 billion the year earlier.
The company became the largest oil producer in the Permian basin in 2024, the biggest U.S. oilfield, after closing its acquisition of Pioneer Natural Resources in May.
Exxon’s low production costs in the basin and its lucrative and prolific projects in Guyana have bolstered the company’s profits despite lower oil prices and a decline in profits for making fuel.
The company signaled earlier this month that sharply lower oil refining margins would cut earnings by between $300 million and $700 million compared to the third quarter.
The startup of new oil refineries by other companies in Asia and Africa led to higher global fuel supply, even as demand for gasoline and diesel lagged expectations.
The refining business remains under pressure as the additional supply enters the market, said Exxon Chief Financial Officer Kathryn Mikells in an interview.
“That’s really what we’re watching as we look ahead to 2025,” she said.
The company previously said that impairments across the business would cost about $600 million in the fourth quarter. The charges come from selling non-strategic assets, including a joint venture in Nigeria, Mikells said.
The largest U.S. oil producer continues to expect a decision by September in its arbitration challenge to Chevron’s acquisition of oil producer Hess, she said. If Chevron proceeds, it would gain a foothold in Guyana’s oil projects.
While the deal has been approved by U.S. regulators, Exxon and CNOOC, which are Hess’ partners in the Guyana oil joint venture, say they have a contractual first right to buy Hess’ stake.
Shareholder returns via buybacks and dividends totaled $36 billion in 2024, up from $32 billion the previous year. The shareholder distributions, a cornerstone of Big Oil’s strategy to court investors, were covered by Exxon’s free cash flow of $36.2 billion.
Exxon Mobil (XOM) reports strong fourth quarter earnings
Exxon Mobil (XOM) has released its fourth quarter earnings report, showcasing impressive results despite the challenges posed by the ongoing pandemic and fluctuating oil prices.
The oil giant reported earnings of $3.66 billion, or $0.86 per share, exceeding analysts’ expectations of $0.63 per share. This marks a significant improvement from the previous quarter, where Exxon Mobil reported a loss of $680 million.
Revenue for the quarter also surpassed estimates, coming in at $46.54 billion compared to the projected $45.01 billion. This increase can be attributed to higher oil prices and improved operational efficiency.
Exxon Mobil’s CEO, Darren Woods, expressed optimism about the company’s future prospects, stating that they are well-positioned to capitalize on the recovering global economy and increasing demand for energy.
Investors have reacted positively to the news, with XOM stock climbing in after-hours trading. With a strong fourth quarter performance and promising outlook, Exxon Mobil is proving to be a resilient player in the energy sector.
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