Exxon Mobil on Friday beat Wall Road’s estimate for fourth-quarter revenue as larger oil and gasoline manufacturing offset decrease oil costs and weaker refining margins.
Its adjusted revenue was $7.39 billion or $1.67 per share, beating analyst estimates of $1.56, LSEG knowledge confirmed.
Exxon’s low manufacturing prices within the basin and its profitable and prolific initiatives in Guyana have bolstered the corporate’s earnings regardless of decrease oil costs and a decline in earnings on making gas. The corporate grew to become the biggest oil producer within the Permian basin in 2024, the most important U.S. oilfield, after closing its acquisition of Pioneer Pure Sources in Might.
The No. 1 U.S. oil producer reported earnings of $33.46 billion for 2024, down from $38.57 billion the 12 months earlier. Exxon shares had been unchanged in buying and selling earlier than the bell on Friday.
Its fourth-quarter adjusted earnings from oil and gasoline manufacturing had been $6.28 billion, up from $4.15 billion in the identical quarter final 12 months. Manufacturing reached 4.6 million barrels of oil equal per day, rising from 4.58 million within the third quarter.
Manufacturing of crude oil and pure gasoline liquids in the US grew virtually 2% from the earlier quarter to 1.47 million barrels per day.
However earnings from producing gasoline and diesel had been $323 million, a big fall from $3.2 billion a 12 months earlier. The startup of recent oil refineries by different firms in Asia and Africa led to larger international gas provide, whilst demand for gasoline and diesel lagged expectations.
The refining enterprise stays below stress as the extra provide enters the market, Chief Monetary Officer Kathryn Mikells stated in an interview.
“That is actually what we’re watching as we look forward to 2025,” she stated.
Exxon’s outcomes had been helped by decrease company prices and confirmed blended efficiency throughout the enterprise, stated Biraj Borkhataria, an analyst at RBC Capital Markets, in a analysis word on Friday.
On Friday, Chevron, the second-largest U.S. oil firm, reported a loss in its refining enterprise for the primary time since 2020 and missed Wall Road’s earnings estimates.
Exxon stated impairments throughout the enterprise value $608 million within the fourth quarter. The costs come from promoting property, together with a three way partnership in Nigeria, Mikells stated.
The corporate continues to count on a call by September in its arbitration problem to Chevron’s acquisition of oil producer Hess, she stated. If Chevron proceeds, it could acquire a foothold in Guyana’s oil initiatives.
Whereas the deal has been authorised by U.S. regulators, Exxon and China’s CNOOC, Hess’ companions within the Guyana oil three way partnership, say they’ve a contractual first proper to purchase Hess’ stake.
Shareholder returns by way of buybacks and dividends totaled $36 billion in 2024, up from $32 billion.
The shareholder distributions, a cornerstone of Large Oil’s technique to courtroom buyers, had been lined by Exxon’s free money movement of $36.2 billion. The corporate plans to repurchase $20 billion in shares yearly via 2026.
Earnings from producing chemical merchandise had been $215 million, up from $189 million a 12 months earlier. Exxon stated earnings from specialty merchandise was $759 million, additionally up from $650 million within the year-ago quarter.
