Exxon Mobil Surpasses Q4 Profit Expectations

Exxon Mobil posted a $7.39 billion profit for the fourth quarter, exceeding Wall Street estimates of $1.67 per share versus the expected $1.56. Despite weaker oil prices and refining margins, the company’s increased oil and gas production helped sustain earnings.

Full-Year Earnings Decline From 2023 Levels

Exxon Mobil reported $33.46 billion in total earnings for 2024, down from $38.57 billion the previous year. The decline reflects weaker refining margins and lower oil prices, though the company’s low-cost production strategy helped mitigate losses.

Permian Basin Leadership Strengthens Exxon’s Position

In 2024, Exxon became the largest oil producer in the Permian Basin after acquiring Pioneer Natural Resources in May. The company’s low production costs in the region, along with its highly profitable projects in Guyana, have contributed to its resilience despite market headwinds.

Refining Margins Under Pressure in 2025

The refining sector continues to struggle as new refineries in Asia and Africa increase global fuel supply, while demand for gasoline and diesel remains below expectations. Exxon CFO Kathryn Mikells noted that the company is closely monitoring refining conditions heading into 2025.

Asset Sales and Strategic Shifts

Exxon recorded $600 million in impairments for Q4, largely from selling non-strategic assets, including a joint venture in Nigeria. The company is also awaiting a September decision on its arbitration challenge to Chevron’s acquisition of Hess, which could impact its operations in Guyana.

Shareholder Returns Reach $36 Billion in 2024

Exxon returned $36 billion to shareholders through buybacks and dividends in 2024, up from $32 billion in 2023. These distributions were fully covered by the company’s free cash flow of $36.2 billion, reinforcing its commitment to delivering value to investors.