Summary
• Exxon’s low production costs boost profits despite lower oil prices
• Refining business pressured by increased global fuel supply
• Exxon plans $20 billion annual share repurchases through 2026
(Reuters) – Exxon Mobil on Friday beat Wall Street’s estimate for fourth-quarter profit as higher oil and gas production offset lower oil prices and weaker refining margins.
Its adjusted profit was $7.39 billion or $1.67 per share, beating analyst estimates of $1.56, LSEG data showed.
Exxon’s low production costs in the basin and its lucrative and prolific projects in Guyana have bolstered the company’s profits despite lower oil prices and a decline in profits on making fuel. The company became the largest oil producer in the Permian basin in 2024, the biggest U.S. oilfield, after closing its acquisition of Pioneer Natural Resources in May.
The No. 1 U.S. oil producer reported earnings of $33.46 billion for 2024, down from $38.57 billion the year earlier. Exxon shares were unchanged in trading before the bell on Friday.
Its fourth-quarter adjusted earnings from oil and gas production were $6.28 billion, up from $4.15 billion in the same quarter last year. Production reached 4.6 million barrels of oil equivalent per day, growing from 4.58 billion in the third quarter.
Production of crude oil and natural gas liquids in the United States grew almost 2% from the previous quarter to 1.47 million barrels per day.
But earnings from producing gasoline and diesel were $323 million, a large fall from $3.2 billion a year earlier. The startup of new oil refineries by other companies in Asia and Africa led to higher global fuel supply, even as demand for gasoline and diesel lagged expectations.
The refining business remains under pressure as the additional supply enters the market, Chief Financial Officer Kathryn Mikells said in an interview.
“That’s really what we’re watching as we look ahead to 2025,” she said.
Exxon’s results were helped by lower corporate costs and showed mixed performance across the business, said Biraj Borkhataria, an analyst at RBC Capital Markets, in a research note on Friday.
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