Exxon's Q4 Surprise: Beats Earnings Expectations Despite Revenue Dip, Embarks On Bold EV And LNG Ventures

Exxon Mobil Corp’s XOM fourth-quarter FY23 result adjusted net profit came in at $9.96 billion, or $2.48 per share, down from $14.04 billion, or $3.40 per share, a year earlier, beating the consensus of $2.21. 

Adjusted profits were higher Q/Q, led by favorable derivative mark-to-market impacts, increasing volume and mix on advantaged Guyana and Permian assets, and stronger chemical margins. 

Revenue and other income slipped to $84.34 billion from $95.43 billion and missed Wall Street’s estimate of $85.23 billion.

Net production stood at 3,824 thousand oil-equivalent barrels per day, almost flat Y/Y, and rose 136,000 oil-equivalent barrels per day Q/Q thanks to favorable entitlement effects and growth in Permian and Guyana assets.

Also Read: Exxon Mobil Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call

The company’s capital and exploration expenditures stood at $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 of $23 billion to $25 billion.

In October, Exxon inked a definitive agreement to acquire Pioneer Natural Resources Co PXD in an all-stock transaction valued at $59.5 billion, or $253 per share.

Related: Exxon Mobil’s Big Bet: $20B Annual Buybacks, Doubling Upstream Earnings By 2027 Amid Pioneer Merger Scrutiny

Also, in the fourth quarter, Exxon Mobil disclosed its new Mobil Lithium business, with a planned first production for 2027 and, aims to produce enough Mobil Lithium with the potential to supply around one million EVs per year.

Also Read: ExxonMobil’s LNG Leap: Secures 1.2 MTPA Boost From Mexico Pacific Project

Dividend: Exxon declared first-quarter dividend of $0.95 per share, payable on March 11, 2024, to shareholders of record as of February 14, 2024. The company has increased its annual dividend for 41 consecutive years, including the increase of $0.04 per share, or 4% in fourth-quarter FY23.

Price Action: XOM shares are down 0.79% at $101.58 premarket on the last check Friday.

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