Exxon Mobil reported fourth-quarter profits that exceeded Wall Street’s estimates, driven by higher oil and gas production despite lower oil prices and weaker refining margins.
The company’s adjusted profit was $7.39 billion, beating analyst expectations of $1.56 per share. Exxon’s low production costs in the Permian basin and its lucrative projects in Guyana contributed to the boost, offsetting the impact of declining fuel sales.
In 2024, Exxon reported earnings of $33.46 billion, down from $38.57 billion the previous year. However, oil and gas production reached a new high of 4.6 million barrels per day, with crude oil and natural gas liquids production growing almost 2% in the US.
The refining business remains under pressure due to increased global supply, which led to higher fuel prices and lower earnings from gasoline and diesel. Exxon’s CFO noted that the company is watching the market closely as it looks ahead to 2025.
Despite challenges, Exxon’s results were aided by lower corporate costs and showed mixed performance across its business. The company plans to repurchase $20 billion in shares annually through 2026 and has a strong track record of shareholder returns via dividends and buybacks.
Source: https://www.cnbc.com/2025/01/31/exxon-mobil-xom-q4-earnings.html