ExxonMobil Announces 2023 Results
-- Delivered industry-leading 2023 earnings of $36.0 billion1, generated
$55.4 billion of cash flow from operating activities and distributed
$32.4 billion to shareholders
-- Leading industry in compounded annual growth rate for earnings excl.
identified items and cash flow since 2019 2
-- Increased Guyana and Permian production by 18% vs. 2022 and achieved
record annual refinery throughput 3
-- Strengthened portfolio with $4.1 billion of non-core asset divestments,
and two acquisitions; one that accelerates Low Carbon Solutions and one
that will transform the Upstream business4
-- Launched new MobilTM Lithium business with the potential to supply up
to one million EVs per year by 2030
SPRING, Texas--(BUSINESS WIRE)--February 02, 2024--
Exxon Mobil Corporation (NYSE:XOM):
Results Summary
Change Change Dollars in Change
vs vs millions (except vs
4Q23 3Q23 3Q23 4Q22 4Q22 per share data) 2023 2022 2022
Earnings (U.S.
7,630 9,070 -1,440 12,750 -5,120 GAAP) 36,010 55,740 -19,730
Earnings
Excluding
Identified Items
9,963 9,117 +846 14,035 -4,072 (non-GAAP) 38,572 59,101 -20,529
Earnings Per
1.91 2.25 -0.34 3.09 -1.18 Common Share 8.89 13.26 -4.37
Earnings Excl.
Identified Items
Per Common Share
2.48 2.27 +0.21 3.40 -0.92 (non-GAAP) 9.52 14.06 -4.54
Capital and
Exploration
7,757 6,022 +1,735 7,463 +294 Expenditures 26,325 22,704 +3,621
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Exxon Mobil Corporation today announced fourth-quarter 2023 earnings of $7.6 billion, or $1.91 per share assuming dilution. Fourth-quarter results included unfavorable identified items of $2.3 billion including a $2.0 billion impairment as a result of regulatory obstacles in California that have prevented production and distribution assets from coming back online. Impairments were partly offset by favorable tax and divestment-related items. Earnings excluding identified items were $10.0 billion, or $2.48 per share assuming dilution. For the full year 2023, the company reported earnings of $36.0 billion, or $8.89 per share assuming dilution.
“Our consistent strategy and execution excellence across the business delivered industry-leading earnings and enabled us to return more cash to shareholders than our peers in 2023 (1) ,” said Darren Woods, chairman and chief executive officer.
“These results demonstrate the fundamental improvements we’ve made to our business, reflecting our progress in high-grading our portfolio through investments in advantaged projects and select divestments, while, at the same time, driving a higher level of efficiency and effectiveness throughout the business. The foundation of our success comes from the resiliency, hard work and commitment of our people. As I reflect on our industry-leading results over the past year, I have a great sense of pride in what our people accomplished.”
(1) Reported earnings, share buybacks and total dividends paid measured for
2023. 2023 figures for the industry peer group are actuals for companies
that reported results on or before February 1, 2024, or estimated using
either Bloomberg consensus as of February 1st or company-announced
programs for share buybacks. Shareholder distributions is defined as
dividends and share purchases. Industry peer group includes BP, Chevron,
Shell and TotalEnergies.
(2) Adjusted net income and cash flow from operations sourced from Bloomberg
for the industry peer group. 2023 figures for the industry peer group
are actuals for companies that reported results on or before February 1,
2024, or estimated using Bloomberg consensus as of February 1st.
Industry peer group includes BP, Chevron, Shell and TotalEnergies.
(3) Best-ever annual global refining throughput (2000 - 2023) since Exxon
and Mobil merger in 1999, based on current refinery circuit.
(4) Announced agreement to merge with Pioneer Natural Resources in October
2023. Transaction is expected to close in the second quarter of 2024,
pending regulatory and Pioneer shareholder approval.
(5) Assuming dilution.
Financial Highlights
-- Fourth-quarter earnings were $7.6 billion versus $9.1 billion in the
third quarter. Identified items decreased earnings by $2.3 billion mainly
from asset impairments, partly offset by favorable tax and
divestment-related items. Earnings excluding identified items were $10.0
billion, an increase of $0.8 billion from the third-quarter. Results
strengthened on favorable derivative mark-to-market impacts, improved
volume and mix driven by advantaged Guyana and Permian assets, and
stronger chemical margins. These factors were partly offset by lower
industry refining margins and seasonally higher expenses.
-- Delivered full-year 2023 earnings of $36.0 billion and return on
capital employed of 15%.
-- Achieved $9.7 billion of cumulative structural cost savings in 2023
versus 2019, exceeding the $9 billion plan with an additional $2.3
billion of savings during the year and $0.7 billion during the quarter.
The company plans to deliver cumulative savings totaling $15 billion
through the end of 2027.
-- Generated strong cash flow from operations of $13.7 billion and free
cash flow of $8.0 billion in the fourth quarter. For the full year, cash
increased $1.9 billion with free cash flow of $36.1 billion.
Peer-leading1 2023 shareholder distributions of $32.4 billion included
$14.9 billion of dividends, and $17.4 billion of share repurchases
consistent with announced plans.
-- The Corporation declared a first-quarter dividend of $0.95 per share,
payable on March 11, 2024, to shareholders of record of Common Stock at
the close of business on February 14, 2024. Including the 4% increase in
fourth-quarter dividend, the company has increased its annual dividend
for a peer-leading1 41 consecutive years.
-- The debt-to-capital ratio was 16%, and the net-debt-to-capital ratio
was 5%, reflecting a period-end cash balance of $31.6 billion.
-- The company continued to strengthen its portfolio with the closing of
the East Texas upstream assets divestment in the fourth quarter. Total
asset sales and divestments generated $4.1 billion of cash proceeds
during the year.
-- Capital and exploration expenditures were $7.8 billion in the fourth
quarter, bringing full-year 2023 expenditures to $26.3 billion, slightly
above the top end of the guidance range, as the company opportunistically
accelerated activities in the advantaged Permian and Guyana assets, and
entered a new lithium business.
(1) Share buybacks and total dividends paid measured for 2023. 2023 figures
for the industry peer group are actuals for companies that reported
results on or before February 1, 2024, or estimated using either
Bloomberg consensus as of February 1st or company-announced programs for
share buybacks. Shareholder distributions is defined as dividends and
share purchases. Industry peer group includes BP, Chevron, Shell and
TotalEnergies.
ADVANCING CLIMATE SOLUTIONS
Progress Toward Net Zero
-- In the Permian Basin, ExxonMobil made great progress on the plan to
achieve net zero GHG emissions by 2030. In 2023, the company electrified
all of its drilling fleet and replaced over 6,000 natural-gas-driven
pneumatic devices in its unconventional operated assets. In addition,
ExxonMobil also deployed its first electric fracturing units to further
reduce emissions intensity, and signed additional long-term agreements
enabling renewable power capacity to support operations. In the quarter,
the company also launched a high-altitude monitoring balloon with
advanced imaging technology and data processing platforms that has the
potential to provide continuous, real-time methane detection. These
efforts support ExxonMobil's industry-leading plans to achieve net-zero
Scope 1 and 2 emissions from its unconventional operations in the Permian
by 2030.
Lithium
-- In the fourth quarter, ExxonMobil announced its new MobilTM Lithium
business with plans to become a leading producer and grow U.S.-based
supplies of lithium for the global battery and EV markets. The company's
advanced production approach has the potential to produce vast supplies
of lithium with fewer environmental impacts than traditional mining
operations1. Work is underway for the first phase of lithium production
in southwest Arkansas, an area known to hold significant lithium
deposits.
-- The company is planning first production for 2027. By 2030, ExxonMobil
aims to produce enough MobilTM Lithium with the potential to supply
approximately one million EVs per year.