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Exxon Mobil Corporation (NYSE: XOM) has announced its second-quarter 2024 results, reporting industry-leading earnings of $9.2 billion, or $2.14 per share. Key contributors to these results include the Pioneer merger, which closed five months ahead of schedule, adding $0.5 billion to earnings and achieving record production. Additionally, ExxonMobil saw record production in Guyana and the heritage Permian, with Upstream net production increasing by 15%, or 574,000 oil-equivalent barrels per day from the first quarter. The company also advanced its carbon capture and storage (CCS) initiatives, securing agreements that increased total contracted CO₂ offtake to 5.5 million metric tons per year.
Exxon Mobil Reports Double Beat in Q2
The company’s second-quarter earnings of $9.2 billion, or $2.14 per share, exceeded expectations, which were set at an EPS of $2.03. This marks an improvement from the first quarter’s earnings of $8.2 billion, or $2.06 per share. ExxonMobil’s cash flow from operating activities was $10.6 billion, with cash flow from operations excluding working capital movements at $15.2 billion. Shareholder distributions totaled $9.5 billion, including $4.3 billion in dividends and $5.2 billion in share repurchases. Darren Woods, chairman and CEO, highlighted the company’s record quarterly production and high-value product sales growth, attributing these achievements to the company’s strategic initiatives and operational efficiencies.Comparing the current performance against expectations, ExxonMobil’s second-quarter earnings of $9.2 billion surpassed the anticipated $2.03 EPS, delivering $2.14 per share. Revenue for the quarter reached $93.06 billion, exceeding the expected $90.46 billion. This performance was bolstered by the successful integration of Pioneer operations, which contributed $0.5 billion to earnings and exceeded synergy expectations. The company’s year-to-date earnings of $17.5 billion, however, were lower than the $19.3 billion reported in the first half of 2023, reflecting the impact of lower industry refining margins and natural gas prices compared to the previous year’s historically high levels.Despite the decrease in year-to-date earnings, ExxonMobil’s strong volume growth from Guyana, Pioneer, and heritage Permian assets, along with high-value product sales and the Beaumont refinery expansion, helped offset lower base volumes from divestments and government-mandated curtailments. The company’s structural cost savings initiatives also played a crucial role, achieving $10.7 billion in cumulative savings versus 2019 levels, with an additional $1.0 billion saved during the year. These efforts have positioned ExxonMobil to continue delivering strong financial results and shareholder value.
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Exxon Plans for $19 Billion Share Repurchase in 2024, $20 Billion through 2025
The company anticipates full-year capital and exploration expenditures to be approximately $28 billion, including the top end of the previously announced guidance for ExxonMobil of $25 billion and around $3 billion for eight months of Pioneer operations. The company plans to repurchase over $19 billion of shares in 2024, with an increased annual pace of share repurchases to $20 billion through 2025, assuming reasonable market conditions. Additionally, ExxonMobil declared a third-quarter dividend of $0.95 per share, payable on September 10, 2024.ExxonMobil’s strategic focus includes advancing new businesses such as Proxxima, carbon materials, and virtually carbon-free hydrogen, which are expected to create long-term value. The company has also made significant progress in its CCS initiatives, signing agreements that increase its total contracted CO₂ offtake to 5.5 million metric tons per year. These efforts align with ExxonMobil’s commitment to supporting the growth of a low-carbon hydrogen market along the U.S. Gulf Coast and helping industrial customers achieve their decarbonization goals.
Disclaimer: The author does not hold or have a position in any securities discussed in the article.
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