ExxonMobil Announces First-Quarter 2024 Results
-- Generated strong first-quarter earnings of $8.2 billion and $14.7
billion of cash flow from operating activities
-- Achieved quarterly gross production of more than 600,000 oil-equivalent
barrels per day in Guyana and reached a final investment decision on the
sixth major development
-- Grew performance chemical sales volumes and delivered record
first-quarter refining throughput1 while maintaining excellent turnaround
performance
-- Reduced operated methane emissions intensity by more than 60% since
20162
-- Investing in technology to extend our reach to new high-value,
high-growth markets including advanced recycling, ProxximaTM, carbon
materials and direct air capture of carbon dioxide
SPRING, Texas--(BUSINESS WIRE)--April 26, 2024--
Exxon Mobil Corporation (NYSE:XOM):
Results Summary
Change Change
Dollars in millions (except vs vs
per share data) 1Q24 4Q23 4Q23 1Q23 1Q23
Earnings (U.S. GAAP) 8,220 7,630 +590 11,430 -3,210
Earnings Excluding Identified
Items (non-GAAP) 8,220 9,963 -1,743 11,618 -3,398
Earnings Per Common Share (3) 2.06 1.91 +0.15 2.79 -0.73
Earnings Excluding Identified
Items Per Common Share
(non-GAAP) (3) 2.06 2.48 -0.42 2.83 -0.77
Capital and Exploration
Expenditures 5,839 7,757 -1,918 6,380 -541
------------------------------ ----- ----- ------ ------ ------
Exxon Mobil Corporation today announced first-quarter 2024 earnings of $8.2 billion, or $2.06 per share assuming dilution. Capital and exploration expenditures were $5.8 billion, consistent with the company’s full-year guidance of $23 billion to $25 billion.
“Our strategy and focus on execution excellence is creating significant value for society and our shareholders,” said Darren Woods, chairman and chief executive officer.
“We delivered a strong quarter with continued growth in advantaged assets, such as Guyana, where production continues at higher-than-expected levels, contributing to historic economic growth for the Guyanese people. In Product Solutions, our strong turnaround performance on cost and schedule helped drive record first-quarter refining throughput(1) . Looking ahead, we’re making great progress on our plans to grow the earnings power of our existing businesses from investments in advantaged assets and higher-value products, and further reduce structural costs. We are investing in technology to transform the molecules derived from oil and natural gas into products that extend our reach into new, high-value, high-growth markets to capture even greater value from our core competitive advantages.”
(1) Highest first-quarter global refinery throughput (2000-2024) since Exxon and Mobil merger in 1999, based on current refinery circuit. (2) Based on year-end 2023 data. (3) Assuming dilution.
Financial Highlights
-- First-quarter earnings were $8.2 billion versus $11.4 billion in the
first quarter of 2023. Earnings excluding identified items were $8.2
billion compared to $11.6 billion in the same quarter last year. Earnings
decreased as industry refining margins and natural gas prices came down
from last year's highs to trade within the ten-year historical range1.
Timing effects from unsettled derivative mark-to-market impacts and other
primarily non-cash impacts from tax and inventory adjustments as well as
divestments contributed to the lower earnings. Strong advantaged volume
growth primarily from Guyana and the Beaumont refinery expansion, and
structural cost savings helped to offset lower base volumes from
divestments, unfavorable entitlements and government-mandated
curtailments, and higher expenses from scheduled maintenance.
-- Achieved $10.1 billion of cumulative Structural Cost Savings versus
2019 with an additional $0.4 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 $14.7 billion and free
cash flow of $10.1 billion in the first quarter. Shareholder
distributions of $6.8 billion in the quarter included $3.8 billion of
dividends and $3.0 billion of share repurchases. The share-repurchase
program was paused briefly following the Pioneer S-4 filing and resumed
after Pioneer's special shareholder meeting. The annual pace of share
repurchases will increase to $20 billion per year after the transaction
closes, assuming reasonable market conditions.
-- The Corporation declared a second-quarter dividend of $0.95 per share,
payable on June 10, 2024, to shareholders of record of Common Stock at
the close of business on May 15, 2024.
-- The company's debt-to-capital ratio was 16% and the net-debt-to-capital
ratio was 3%, reflecting a period-end cash balance of $33.3 billion.
* The earnings factors have been updated to provide additional visibility into
drivers of our business results starting this first quarter of 2024. The
company evaluates these factors periodically to determine if any enhancements
may provide helpful insights to the market. See page 8 for definitions of
these new factors.
(1) 10-year range includes 2010-2019, a representative 10-year business cycle
which avoids the extreme outliers in both directions that the market
experienced in the past four years.
.
EARNINGS AND VOLUME SUMMARY BY SEGMENT
Upstream
Dollars in millions (unless otherwise noted) 1Q24 4Q23 1Q23
Earnings/(Loss) (U.S. GAAP)
-------------------------------------------------- ----- ----- -----
United States 1,054 84 1,632
Non-U.S. 4,606 4,065 4,825
Worldwide 5,660 4,149 6,457
Earnings/(Loss) Excluding Identified Items
(non-GAAP)
-------------------------------------------------- ----- ----- -----
United States 1,054 1,573 1,632
Non-U.S. 4,606 4,693 4,983
Worldwide 5,660 6,266 6,615
Production (koebd) 3,784 3,824 3,831
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-- Upstream first-quarter earnings were $5.7 billion, a decrease of $797
million compared to the same quarter last year. The prior-year period was
negatively impacted by tax-related identified items. Excluding identified
items, earnings decreased $955 million driven by a 32% decrease in
natural gas realizations and other primarily non-cash impacts from tax
and inventory adjustments as well as divestments. These factors were
partially offset by a 4% increase in liquids realizations and less
unfavorable timing effects mainly from derivatives mark-to-market
impacts. Net production was 47,000 oil-equivalent barrels per day lower
than the same quarter last year with the growth in advantaged Guyana
volumes more than offsetting the earnings impact from lower base volumes
due to divestments, government-mandated curtailments and unfavorable
entitlement effects. Excluding the impacts from divestments, entitlements,
and government-mandated curtailments, net production grew 77,000
oil-equivalent barrels per day driven by the start-up of the Payara
development in Guyana. Payara reached nameplate capacity of 220,000
barrels per day in mid-January, ahead of schedule, demonstrating
excellence in project execution and operations.
-- Compared to the fourth quarter, earnings increased $1.5 billion driven
by the absence of identified items of $2.1 billion mainly from the
impairment of the idled Santa Ynez Unit assets in California. Earnings
excluding identified items decreased from $6.3 billion to $5.7 billion.
Advantaged asset volume growth from Guyana provided a partial offset to
lower natural gas realizations and lower base volumes due to unfavorable
sales timing and entitlement impacts. Net production in the first quarter
was 3.8 million oil-equivalent barrels per day, a decrease of 40,000
oil-equivalent barrels per day compared to the fourth quarter. Excluding
divestments, entitlements and government-mandated curtailments, net
production increased 57,000 oil-equivalent barrels per day.
-- The company announced a final investment decision for the Whiptail
development in Guyana. This is the sixth offshore project and is expected
to add approximately 250,000 oil-equivalent barrels per day of gross
capacity with start-up targeted by year-end 2027. Construction is
underway on the Floating Production Storage and Offloading vessels for
the Yellowtail and Uaru projects, with Yellowtail anticipated to start
production in 2025 and Uaru targeted for 2026. In addition, one new
exploration discovery was made this year in the Stabroek block.
-- In October 2023, ExxonMobil announced an agreement to merge with
Pioneer Natural Resources in a $59.5 billion all-stock transaction1. The
transaction was approved by Pioneer shareholders. The transaction close
is anticipated in the second quarter of 2024, pending regulatory
approval.
(1) Based on the October 5, 2023 closing price for ExxonMobil shares and the
fixed exchange rate of 2.3234 per Pioneer share.