Exxon Mobil Corporation XOM reported fourth-quarter 2024 earnings per share of $1.67 (excluding identified items), which beat the Zacks Consensus Estimate of $1.55. The bottom line, however, declined from the year-ago level of $2.48.
Total quarterly revenues of $83.4 billion missed the Zacks Consensus Estimate of $87.1 billion. The top line also decreased from the year-ago figure of $84.3 billion.
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Better-than-expected quarterly earnings were fueled by record production from Guyana and Permian, along with record high-value product sales. However, this was partially offset by lower base volumes from divestments, scheduled maintenance and weaker commodity price realizations.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operational Performance
Upstream
The segment reported quarterly earnings (excluding identified items) of $6.28 billion, up from $6.27 billion in the year-ago quarter. The increase was primarily driven by production growth from its resources in Guyana and the Permian Basin. Structural cost savings also contributed to the improvement.
Operations in the United States recorded a profit of $1.62 billion, higher than $1.57 billion registered in the December-end quarter of 2023. The company reported a profit of $4.67 billion from non-U.S. operations compared with $4.69 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,602 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,824 MBoe/d reported a year ago. The figure also surpassed our estimate of 4,311.8 MBoe/d.
Liquids production also increased to 3,213 thousand barrels per day (MBbls/d) from 2,550 MBbls/d in the prior-year quarter. The increase can be attributed to higher production from the United States and Canada.
Natural gas production totaled 8,331 million cubic feet per day (Mmcf/d), up from 7,645 Mmcf/d reported a year ago. Increased output levels from the United States and Africa contributed to the increase.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $67.58 per barrel, down from the year-ago figure of $76.64. The figure also missed our estimate of $68.77. Crude price realization for non-U.S. operations decreased to $67.58 per barrel from $74.23 in the year-ago quarter. Our estimate for the same was pinned at $65.69 per barrel. Natural gas price in the United States was $2.09 per thousand cubic feet (Mcf), lower than the year-ago level of $2.55. Our estimate for the same was pegged at $2.05 per Mcf. Also, in the non-U.S. section, the metric declined to $10.77 per Mcf from $12.58. The figure also missed our estimate of $11.06 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $323 million, down from $3.02 billion recorded a year ago. The reported figure was also below our estimate of $1.7 billion. The segment was affected by significantly weaker refining margins in the reported quarter. Results were impacted by unfavorable timing effects mainly from the absence of favorable unsettled derivative mark to-market impacts and weaker North America margins in the previous quarter.
Chemical Products
This unit of ExxonMobil recorded a profit of $215 million (excluding identified items), lower than $577 million registered in the year-ago quarter. The reported figure missed our estimate of $754.6 million. The decrease was primarily due to weaker margins from increased North America ethane feed costs, seasonally higher expenses and China Chemical Complex start-up preparation costs.
Specialty Products
This unit recorded a profit of $759 million (excluding identified items), up from $743 million recorded in the year-ago quarter. Our projection for the same was pegged at $732.9 million. The segment benefitted from improved basestock and finished lubes margins, structural cost savings, and record high-value product sales volumes. This was partially offset by higher expenses, including new product development costs.
Financials
ExxonMobil generated a cash flow of $12.2 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $7.5 billion.
Total cash and cash equivalents were $ 23.03 billion, and long-term debt totaled $ 36.8 billion.
XOM’s Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked stocks like SMEnergyCompany SM, Sunoco LP SUN and Range Resources Corporation RRC. While SM Energy and Sunoco presently sport a Zacks Rank #1 (Strong Buy) each, Range Resources carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is set to expand its oil-centered operations in the coming years, with an increasing focus on crude oil, especially in the Permian Basin and Eagle Ford regions. The company’s attractive oil and gas investments should create long-term value for shareholders.
Sunoco is a leading wholesale motor fuel distributor in the United States, boasting a vast distribution network spanning 40 states. With long-term contracts servicing more than 10,000 convenience stores, it distributes over 10 fuel brands, ensuring a stable revenue stream. Sunoco is poised to benefit from the strategic acquisitions aimed at diversifying its business portfolio.
Range Resources is among the top 10 natural gas producers in the United States. Its diversified portfolio is spread between low-risk and long reserve-life Appalachian assets. The company’s extensive inventory of Marcellus resources with low breakeven points is a significant asset. With expanded LPG export capacity, RRC is well-positioned to meet the rising global demand, capitalizing on natural gas's role as a clean-burning fuel amid a low-carbon shift.
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