Exxon Mobil exceeded earnings expectations in the fourth quarter with a profit of $7.61 billion, attributed to increased production in the Permian and Guyana. Adjusted earnings reached $1.67 per share, beating forecasts. While revenues missed Wall Street targets at $83.43 billion, production levels rose to 4.6 million oil-equivalent barrels per day. Future production is expected to heavily rely on these key regions.
Exxon Mobil reported a robust fourth-quarter performance, surpassing Wall Street’s expectations due to heightened production in its Permian basin and Guyana operations. For the quarter ending December 31, the company achieved a profit of $7.61 billion, translating to $1.72 per share, while the year-earlier performance was $7.63 billion or $1.91 per share. Adjusted earnings, excluding one-time charges, were $1.67 per share, outpacing analysts’ projections of $1.55 per share according to Zacks Investment Research.
Exxon attributed its earnings growth—an increase of $1.6 billion—to record production levels in Guyana and the Permian basin, coupled with effective structural cost-saving measures. Total revenues reached $83.43 billion, although this was below the expected $87.12 billion. Throughout the quarter, Exxon’s net production was reported at 4.6 million oil-equivalent barrels per day, reflecting an incremental rise of 20,000 barrels per day from the previous quarter.
Kathy Mikells, Exxon’s CFO, highlighted that over 50% of its production in 2024 would stem from the Permian basin and Guyana, alongside liquid natural gas. Looking ahead, the company forecasts that by 2030, this proportion will exceed 60%, indicating a strategic shift toward high-yield assets.
In December, OPEC+ delayed oil production increases amid lower-than-anticipated demand and competing output from non-allied nations. An online meeting led to a decision to postpone the planned increase of 2.2 million barrels per day, initially scheduled to commence on January 1, 2025, with new plans to start this incrementally by April 1, 2025, over an 18-month period.
Prior to market opening on Friday, Exxon Mobil’s shares remained largely unchanged, indicating stability amid the latest financial disclosures and industry developments.
Exxon Mobil is a leading player in the global oil and gas industry, heavily focused on production capabilities within strategic areas such as the Permian basin in the U.S. and Guyana in South America. The company’s recent earnings report is a direct reflection of its operational successes and the impacts of global oil demand dynamics, particularly in light of OPEC+’s recent production decisions.
Exxon Mobil’s fourth-quarter results reveal a strong financial performance driven by increasing production in key regions. The company’s strategic focus on inexpensive and high-yield production areas highlights its adaptability in a fluctuating market. Furthermore, OPEC+’s decision to delay production increases underlines the ongoing challenges in global oil supply and demand. Overall, Exxon’s outlook remains optimistic as it navigates these industry dynamics.
Original Source: abcnews.go.com
