Exxon Mobil Surpasses Earnings Expectations Amidst Market Challenges: A Closer Look at 2024 Performance


On Friday, Exxon Mobil (NYSE:XOM) delivered results that exceeded Wall Street’s expectations for the fourth quarter, showcasing a profit of $7.39 billion. This translates to earnings of $1.67 per share, surpassing analyst forecasts, which had predicted $1.56, according to LSEG data.
Metric | Value |
Q4 Profit | $7.39 billion |
EPS (Q4) | $1.67 |
2024 Total Profit | $33.46 billion |
Shareholder Returns (2024) | $36 billion |
Free Cash Flow (2024) | $36.2 billion |
Impairment Cost (Q4) | $600 million |
Looking at the broader picture, Exxon reported a total profit of $33.46 billion for the entire year of 2024, marking a decline from the previous year's $38.57 billion. However, this setback does not overshadow the company's significant achievement: it has emerged as the leading oil producer in the Permian Basin—the United States' largest oilfield—following its acquisition of Pioneer Natural Resources in May.
The efficiency of Exxon in the Permian, coupled with its highly productive projects in Guyana, has helped sustain profitability even in the face of dwindling oil prices and a dip in refining margins. Earlier this month, the company warned investors about the impact of sharply diminished oil refining margins, estimating a potential earnings drop of $300 million to $700 million compared to the third quarter.
A surge in new oil refineries coming online in Asia and Africa has contributed to an increased global fuel supply, while simultaneously, the demand for gasoline and diesel has fallen short of expectations. Kathryn Mikells, Exxon’s Chief Financial Officer, emphasized in an interview that the refining sector is currently grappling with excess supply, and they’re closely monitoring this trend as they plan for 2025.
Additionally, Exxon is preparing for a situation where impairments related to the sale of non-strategic assets, including a joint venture in Nigeria, will cost around $600 million in the fourth quarter. Moreover, the company continues to await a crucial decision by September regarding its arbitration dispute with Chevron over the latter's acquisition of Hess, another oil producer. Should Chevron advance with the deal, it would gain significant access to oil projects in Guyana.
While this acquisition has passed regulatory scrutiny in the U.S., Exxon and CNOOC, Hess’ partners in their Guyana venture, maintain that they hold a contractual first right to purchase Hess' stake, adding another layer of complexity to the situation.
On the shareholder front, Exxon has ramped up its commitment to return cash to investors. In 2024, total shareholder returns through buybacks and dividends reached $36 billion, an increase from $32 billion the previous year. Impressively, these distributions were comfortably supported by Exxon’s free cash flow of $36.2 billion, reinforcing the company’s strategy to attract and retain investors in the competitive Big Oil landscape.

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