Zinger Key Points
- Exxon Mobil's Q2 revenue of $93.060 billion beats the $90.987 billion consensus, with adjusted EPS of $2.14 surpassing the $2.01 estimate.
- Exxon Mobil achieved record production in the Permian and Guyana, and plans to repurchase over $19 billion in shares in 2024.
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Exxon Mobil Corporation XOM shares are trading lower after the company reported second-quarter FY24 results.
Total revenues and other income stood at $93.060 billion, beating the consensus of $90.987 billion.
Net production stood at 4,358 thousand oil-equivalent barrels per day, an increase of 15% from the previous quarter, driven by increased volumes from Pioneer, Guyana, and the heritage Permian assets.
Adjusted net profit came in at $9.24 billion, up from $8.22 billion in the prior quarter. Adjusted EPS stood at $2.14, beating the consensus of $2.01.
The company’s capital and exploration expenditures stood at $7.04 billion in the second quarter.
Related: Exxon Mobil’s Stock Slides: Oil Up, Gas Down Makes For Mixed Q2 Earnings Outlook
The company achieved a cumulative structural cost savings of $10.7 billion versus 2019, with an additional $0.6 billion during the quarter. The company plans to deliver cumulative savings totaling $5 billion through the end of 2027 versus 2023.
Darren Woods, chairman and chief executive officer, said, “We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger. We also achieved a record in high-value product sales, growing by 10% versus the first half of last year.”
“We closed on our transformative merger with Pioneer in about half the time of similar deals. And we’re continuing to build businesses such as Proxxima, carbon materials and virtually carbon-free hydrogen, with approximately 98% of CO2 removed, that will create value long into the future.”
Related: Big Oil, Big Bet: Indonesia’s Pertamina & Exxon Aim For Gigatonne CO2 Grab
Dividend: Exxon declared a second-quarter dividend of $0.95 per share, payable on September 10 to shareholders of record as of August 15.
The company’s year-to-date shareholder distributions totaled $16.3 billion, comprising $8.1 billion in dividends and $8.3 billion in share repurchases.
Following the Pioneer transaction, the annual share repurchase pace has increased to $20 billion through 2025, with plans to repurchase over $19 billion of shares in 2024, assuming favorable market conditions.
FY24 Outlook: The company anticipates full-year capital and exploration expenditures of about $28 billion, including ExxonMobil’s $25 billion guidance and $3 billion for eight months of Pioneer.
Last month, the energy giant finalized a deal to sell its Malaysian oil and gas assets to state energy firm Petronas, marking its exit from the country’s upstream sector where it once held a dominant position.
Investors can gain exposure to the XOM via Energy Select Sector SPDR Fund XLE and IShares U.S. Energy ETF IYE.
Also Read: Exxon Mobil Arbitration Throws Wrench in Chevron-Hess Merger Timeline: Report
Price Action: XOM shares are down 0.20% at $116.72 premarket at the last check Friday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Del Henderson Jr. via Shutterstock
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