Exxon Mobil on Friday beat Wall Avenue’s estimate for fourth-quarter revenue as larger oil and fuel manufacturing offset decrease oil costs and weaker refining margins.
Fourth quarter revenue was $7.39 billion. Revenue per share was $1.67, beating analyst estimates of $1.56, in response to LSEG knowledge.
The No. 1 U.S. oil producer reported whole earnings of $33.46 billion for full-year 2024, down from $38.57 billion the 12 months earlier.
The corporate grew to become the most important oil producer within the Permian basin in 2024, the most important U.S. oilfield, after closing its acquisition of Pioneer Pure Assets in Might.
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 for making gas.
The corporate signaled earlier this month that sharply decrease oil refining margins would lower earnings by between $300 million and $700 million in comparison with the third quarter.
The startup of latest oil refineries by different firms in Asia and Africa led to larger international gas provide, at the same time as demand for gasoline and diesel lagged expectations.
The refining enterprise stays below strain as the extra provide enters the market, mentioned Exxon Chief Monetary Officer Kathryn Mikells in an interview.
“That is actually what we’re watching as we sit up for 2025,” she mentioned.
The corporate beforehand mentioned that impairments throughout the enterprise would value about $600 million within the fourth quarter. The costs come from promoting non-strategic belongings, together with a three way partnership in Nigeria, Mikells mentioned.
The biggest U.S. oil producer continues to count on a choice by September in its arbitration problem to Chevron’s acquisition of oil producer Hess, she mentioned. If Chevron proceeds, it might achieve a foothold in Guyana’s oil initiatives.
Whereas the deal has been accredited by U.S. regulators, Exxon and CNOOC, that are Hess’ companions within the Guyana oil three way partnership, say they’ve a contractual first proper to purchase Hess’ stake.
Shareholder returns through buybacks and dividends totaled $36 billion in 2024, up from $32 billion the earlier 12 months. The shareholder distributions, a cornerstone of Massive Oil’s technique to courtroom traders, had been lined by Exxon’s free money circulate of $36.2 billion.
