Exxon Mobil Corporation XOM reported third-quarter 2024 earnings per share of $1.92 (excluding identified items), which beat the Zacks Consensus Estimate of $1.91. The bottom line, however, declined from the year-ago level of $2.27.
Total quarterly revenues of $90 billion missed the Zacks Consensus Estimate of $93.5 billion. The top line also decreased from the year-ago figure of $90.8 billion.
Better-than-expected quarterly earnings were primarily driven by record-high liquids production volumes in the upstream segment and increased contributions from the Chemical Products segment, partially offset by lower commodity price realizations and weaker refining margins.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operational Performance
Upstream
The segment reported quarterly earnings (excluding identified items) of $6.2 billion, up from $6.1 billion reported in the year-ago quarter. The increase was primarily driven by production growth from its resources in Guyana and the Permian Basin. Higher production was also driven by contributions from the company’s Pioneer acquisition. Structural cost savings also contributed to the improvement.
Operations in the United States recorded a profit of $1.7 billion, lower than $2.4 billion registered in the September-end quarter of 2023. The company reported a profit of $4.5 billion from non-U.S. operations compared with $4.6 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,582 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,688 MBoe/d reported a year ago. The figure also surpassed our estimate of 4,499.2 MBoe/d.
Liquids production also increased to 3,187 thousand barrels per day (MBbls/d) from 2,397 MBbls/d in the prior-year quarter. The increase can be attributed to higher production from the United States, Canada and Asia.
Natural gas production totaled 8,369 million cubic feet per day (Mmcf/d), up from 7,748 Mmcf/d reported a year ago. Increased output levels from the United States and Europe contributed to the increase.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $72.94 per barrel, down from the year-ago figure of $80.45. The figure also missed our estimate of $76.22. Crude price realization for non-U.S. operations decreased to $73.07 per barrel from $77.48 in the year-ago quarter. Our estimate for the same was pinned at $72.69 per barrel. Natural gas price in the United States was $1.16 per thousand cubic feet (Mcf), lower than the year-ago level of $2.30. Our estimate for the same was pegged at $1.67 per Mcf. Also, in the non-U.S. section, the metric declined to $10.13 per Mcf from $10.50. The figure also missed our estimate of $10.88 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $1.3 billion, down from $2.5 billion recorded a year ago. The reported figure was also below our estimate of $1.6 billion. The segment was affected by significantly weaker refining margins in the reported quarter. Scheduled maintenance activities and divestment of non-core refinery assets contributed to the same.
Chemical Products
This unit of ExxonMobil recorded a profit of $893 million (excluding identified items), higher than $249 million registered in the year-ago quarter. The reported figure also topped our estimate of $539.7 million. The increase was primarily driven by the company's North America footprint, aided by the lower cost of ethane feedstock and higher realizations on high-value products. Furthermore, a substantial increase in high-value product sales and structural cost savings contributed to the growth.
Specialty Products
This unit recorded a profit of $794 million (excluding identified items), up from $619 million recorded in the year-ago quarter. Our projection for the same was pegged at $638.9 million. The segment was aided by structural cost reductions, improved margins across basestock and finished lubricants and higher sales volumes.
Financials
ExxonMobil generated a cash flow of $17.7 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $7.16 billion.
Total cash and cash equivalents were $ 26.9 billion, and long-term debt totaled $ 36.9 billion.
XOM’s Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the energy sector are Archrock Inc. AROC, The Williams Companies, Inc. WMB and FuelCell Energy FCEL. Archrock presently sports a Zacks Rank #1 (Strong Buy), while The Williams Companies and FuelCell Energy carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Archrock is an energy infrastructure company based in the United States, with a focus on midstream natural gas compression. It provides natural gas contract compression services and generates stable fee-based revenues.
The Williams Companies, Inc. is a premier energy infrastructure provider in North America. The company’s core operations include finding, producing, gathering, processing, and transporting natural gas and natural gas liquids. Boasting a widespread pipeline system of more than 33,000 miles, Williams is one of the largest domestic transporters of natural gas by volume.
FuelCell Energy is a clean energy company offering low-carbon energy solutions. It produces power using flexible fuel sources such as biogas, natural gas and hydrogen. The company designs fuel cells that generate electricity through an electrochemical process that combines fuel with air, reducing carbon emissions and minimizing the environmental impact of power generation. As such, FCEL is anticipated to play a crucial role in the energy transition by enabling industries and communities to shift from traditional fossil fuels to low-carbon alternatives.
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