Exxon Mobil exceeded Wall Street’s fourth-quarter profit expectations due to increased oil and gas production, which offset lower oil prices and weaker refining margins. The company’s adjusted profit was $7.39 billion or $1.67 per share, surpassing analyst estimates of $1.56, according to LSEG data.
Exxon’s efficient production in the basin and successful projects in Guyana have boosted profits despite market challenges. The company became the largest oil producer in the Permian basin in 2024 after acquiring Pioneer Natural Resources. In 2024, Exxon reported earnings of $33.46 billion, a decrease from $38.57 billion the previous year.
The company’s fourth-quarter adjusted earnings from oil and gas production were $6.28 billion, up from $4.15 billion in the same period last year. Production reached 4.6 million barrels of oil equivalent per day, an increase from 4.58 million in the third quarter. However, earnings from gasoline and diesel production dropped significantly to $323 million from $3.2 billion a year earlier due to increased global fuel supply.
Exxon’s refining business faced challenges as Chief Financial Officer Kathryn Mikells highlighted pressure from additional supply entering the market. The company’s results were supported by reduced corporate costs and showed varied performance across its operations, according to analyst Biraj Borkhataria of RBC Capital Markets.
Chevron, the second-largest U.S. oil company, reported a loss in its refining business and missed earnings estimates. Exxon incurred impairments of $608 million in the fourth quarter, mainly from asset sales, including a joint venture in Nigeria. The company anticipates a decision by September in its arbitration challenge to Chevron’s acquisition of oil producer Hess, which could impact oil projects in Guyana.
Exxon’s shareholder returns through buybacks and dividends totaled $36 billion in 2024, supported by free cash flow of $36.2 billion. The company plans to repurchase $20 billion in shares annually through 2026. Earnings from chemical and specialty products also showed growth compared to the previous year.
