Exxon Mobil Corp, one of the world’s largest publicly traded oil companies, has announced stellar fourth-quarter earnings, driven largely by significant increases in production from the Permian Basin and Guyana. The Texas-based energy giant reported a net income of $7.61 billion, amounting to $1.72 per share for the quarter ending December 31.
When comparing these figures to the same period last year, where earnings were slightly higher at $7.63 billion or $1.91 per share, the latest results show continued strength despite global economic fluctuations. After adjusting for unique, one-time events and charges, Exxon revealed adjusted earnings of $1.67 per share, topping Wall Street’s forecast of $1.55 per share according to Zacks Investment Research.
Exxon’s financial momentum is primarily attributed to a $1.6 billion increase in earnings, thanks to record-setting oil production levels in the resource-rich territories of South America's Guyana and the United States' Permian Basin. In addition to these achievements, cost-saving measures have further supported profitability. Although the company’s revenue of $83.43 billion slightly missed the industry analysts' projections of $87.12 billion, the operational efficiencies and strong production numbers reflect solid performance.
The company has consistently achieved impressive production rates, hitting a milestone of 4.6 million oil-equivalent barrels per day, an increase from the preceding quarter. This is indicative of Exxon Mobil’s strategic focus on enhancing production capabilities in key areas. According to Kathy Mikells, Exxon’s Senior Vice President and Chief Financial Officer, more than half of the company’s production in 2024 will continue to derive from the Permian Basin, Guyana, and liquefied natural gas (LNG) operations.
Looking towards the future, Exxon Mobil remains optimistic about its strategic asset deployment. By 2030, the company expects that over 60% of its production volumes will stem from these vital regions, emphasizing their importance in Exxon's long-term growth strategy.
The broader global oil market continues to pose challenges, as evidenced by the recent decision by OPEC+ to delay increases in oil production due to weaker-than-expected demand alongside competition from countries not within the oil cartel. The alliance opted to pause its planned gradual ramp-up of 2.2 million barrels per day until April 2025, stretching out the increases over the next 18 months to October 2026.
Despite these industry-wide uncertainties, Exxon Mobil’s stock showed minimal fluctuations before the opening bell on Friday. The company’s solid performance, coupled with strategic foresight in its operations, provides it with a sturdy foundation in the evolving energy sector, ensuring that Exxon maintains its reputation as a formidable player in global oil markets.
