ExxonMobil reports strong 2024 results driven by transformation and record production

January 31, 2025 — ExxonMobil Corporation today announced its 2024 financial results, reporting robust earnings and cash flow, driven by its ongoing business transformation and record production in key areas. The company delivered $33.7 billion in earnings and $55.0 billion in cash flow from operations, marking its third-best performance in the past decade.

"Our transformed company delivered unmatched value in 2024," said Darren Woods, chairman and chief executive officer. "The proof is in our performance. Operationally, we delivered strong results on safety, reliability, and emissions. Financially, we delivered some of our highest earnings and operating cash flow in a decade."

ExxonMobil achieved record production in the Permian Basin and Guyana, and record sales volumes of high-value products. These operational successes, coupled with $12.1 billion in cumulative structural cost savings since 2019, more than offset inflation and growth, contributing significantly to the company's strong financial performance.

The company distributed $36.0 billion to shareholders through dividends and share repurchases, a figure surpassed by only five companies in the S&P 500. This demonstrates ExxonMobil's commitment to returning value to its shareholders.

Key financial highlights:

Looking forward, ExxonMobil is confident in its ability to generate significant earnings and cash flow beyond 2030, underpinned by its unique investment opportunities and strong financial position. The company's focus on cost efficiency, operational excellence, and shareholder returns positions it for continued success in the evolving energy landscape.

ExxonMobil’s transformative journey over the past five years

ExxonMobil's transformation over the past five years has been a significant undertaking, reshaping the company's operations, strategy, and overall outlook in a rapidly evolving energy landscape. Apparently driven by a confluence of factors, including increasing investor pressure, growing concerns about climate change, and the need to enhance long-term profitability, the company embarked on a journey to modernize and optimize its business.

One of the most prominent aspects of this transformation seems a relentless focus on cost efficiency. ExxonMobil has implemented rigorous cost-cutting measures, streamlining operations, and identifying significant structural cost savings. This drive for efficiency has not only improved the company's bottom line but also allowed it to reinvest in key areas, such as technology and low-carbon solutions. The company has exceeded its cost-saving targets, demonstrating a commitment to fiscal discipline.

Beyond cost-cutting, ExxonMobil has also focused on optimizing its portfolio of assets. This has involved divesting non-core assets, consolidating operations in key areas, and prioritizing investments in its most advantaged resources, particularly in the Permian Basin and Guyana. By focusing on these high-return opportunities, the company has been able to increase production and improve its overall profitability. This strategic portfolio management has been crucial to navigating the fluctuations in commodity prices and ensuring long-term growth.

Another key element of the transformation has been a renewed emphasis on operational excellence. It is apparent that ExxonMobil has prioritized improving safety, reliability, and efficiency across its operations. This has involved implementing new technologies, optimizing processes, and fostering a culture of continuous improvement as per the information available on ExxonMobil website. By focusing on operational excellence, it appears that the company has been able to maximize production, minimize downtime, and reduce its environmental footprint.

Perhaps one of the most significant shifts in ExxonMobil's strategy has been a growing recognition of the need to address climate change. While the company has faced criticism for its historical stance on climate change, it has begun to make investments in low-carbon technologies, such as carbon capture and storage, hydrogen production, and biofuels. While these investments are still relatively small compared to its traditional oil and gas business, they signal a growing recognition of the need to transition to a lower-carbon future. The company has also emphasized its commitment to reducing emissions from its own operations and has set targets for reducing greenhouse gas intensity.

Furthermore, ExxonMobil has focused on enhancing its engagement with stakeholders, including investors, communities, and governments. This has involved improving transparency, communicating its strategy more effectively, and addressing concerns about its environmental and social impact. Recognizing the increasing importance of ESG (environmental, social, and governance) factors, the company has taken steps to improve its performance in these areas.

However, the transformation is an ongoing process, and ExxonMobil still faces significant challenges. The energy transition presents a complex and uncertain landscape, and the company must continue to adapt its strategy to remain competitive. Balancing the need to meet current energy demand with the long-term imperative to transition to a lower-carbon future will require careful planning and significant investment. The company's future success will depend on its ability to navigate these challenges effectively and continue to innovate and adapt to the changing energy landscape.

ExxonMobil merger with Pioneer Natural Resources

One of the key milestones of the transformative journey is the merger with Pioneer Natural Resources. ExxonMobil in October 2023 announced its intention to acquire Pioneer Natural Resources in an all-stock transaction valued at $59.5 billion, which translated to $253 per share based on ExxonMobil's closing price on October 5, 2023. Under the terms of the agreement, Pioneer shareholders were to receive 2.3234 shares of ExxonMobil for each share they hold. This merger not only expected to redefine ExxonMobil’s upstream portfolio by more than doubling its Permian footprint but also to position the combined entity to leverage an estimated 16 billion barrels of oil equivalent in the region. By significantly enhancing its production capabilities, ExxonMobil expected its Permian output to more than double to approximately 1.3 million barrels of oil equivalent per day at closing, potentially reaching 2 million by 2027.

The transaction integrated Pioneer’s considerable Midland Basin acreage with ExxonMobil’s existing assets, enhancing operational synergies and capital efficiency. ExxonMobil anticipated achieving a cost of supply below $35 per barrel from Pioneer’s resources, while also improving short-cycle production flexibility. This combined force was expected to accelerate Pioneer’s ambitious net-zero emissions goal from 2050 to 2035, utilizing advanced technologies to monitor and reduce methane emissions effectively. Unanimously approved by both companies' boards, the merger represented an opportunity not only for substantial long-term value creation but also for improved environmental practices and resource management.

Global locations

ExxonMobil's operations span across several key locations worldwide, with a significant presence in the United States. Since its inception in 1870 with the formation of the Standard Oil Company, ExxonMobil has grown to become one of the largest publicly traded oil and gas companies globally. The company operates extensive refining capacities that make it the largest refiner and marketer of petroleum products in the U.S. Moreover, its chemical segments rank among the largest in the world, reflecting a comprehensive operational footprint that drives substantial contributions to both the domestic and global energy markets.

In Guyana, ExxonMobil began oil and gas exploration in 2008 and has since established a robust production framework, including the successful Liza Phase 1 development. This project has not only facilitated early oil production ahead of schedule but has also initiated community-focused initiatives, primarily in STEM education, demonstrating the company's commitment to social responsibility and stakeholder engagement in the region. As ExxonMobil continues to grow its operations in Guyana, it aims to adapt and enhance its support to align with the needs and aspirations of the local population. Guyana operations marked five years of oil production late last year and one of the key contributors to the latest financial results.

ExxonMobil's operations in Indonesia are anchored by the development of the Banyu Urip oil field within the Cepu block in East Java. Having exceeded its production targets significantly, the Banyu Urip field accounts for a substantial portion of Indonesia's national oil output. With a legacy of over 118 years in the country, ExxonMobil is dedicated to fostering local development through various initiatives, focusing on enhancing community welfare in the areas of education, health, and economic growth.

Additionally, ExxonMobil has made significant investments in Papua New Guinea through the PNG LNG project, contributing considerably to the nation's economic development. The project has a production capacity of 8.3 million tonnes per year and has been a catalyst for widespread economic growth in the region.

ExxonMobil's partnership in Qatar with Qatar Petroleum reflects its strategic involvement in natural gas projects, including the development of the world’s largest non-associated natural gas field, the North Field. Through diverse initiatives in education and training, ExxonMobil plays a crucial role in shaping a skilled workforce in Qatar, aligned with the country's Vision 2030 for sustainable development and human advancement.

ExxonMobil’s plans to 2030

ExxonMobil has announced a comprehensive plan to achieve significant growth and sustainability by 2030. The company expects to deliver an incremental growth potential of $20 billion in earnings and $30 billion in cash flow over the six-year period. This growth is driven by investing in competitively advantaged opportunities, continued excellence in execution, and disciplined cost and capital management.

Key elements of ExxonMobil's 2030 plan include increasing average annual synergies from the Pioneer acquisition to over $3 billion, growing new business earnings potential to $3 billion, adding $7 billion more in structural cost savings, and increasing Upstream production to 5.4 million oil-equivalent barrels per day, with over 60% coming from advantaged assets such as the Permian Basin, Guyana, and LNG. The company also plans to grow high-value product sales by 80% and pursue up to $30 billion in lower emissions investment opportunities.

ExxonMobil's Upstream portfolio is expected to deliver significant growth potential, with an additional $9 billion in annual earnings potential by 2030. The company plans to reach 5.4 million oil-equivalent barrels per day of production, with over 60% coming from advantaged assets. ExxonMobil is also pursuing multiple development projects, including two additional developments in Guyana and four world-class LNG projects. The company expects to achieve first LNG sales from these projects in 2025 and 2026, respectively.

ExxonMobil's Product Solutions business is also expected to grow, with an additional $8 billion in earnings potential by 2030. The company is investing in advantaged projects, including six new projects starting up in 2025, which drive significant volume and mix improvements. ExxonMobil is also growing its carbon materials venture, which aims to capture attractive opportunities in battery anode markets. The company is pursuing up to $30 billion of low-emission opportunities between 2025 and 2030, with almost 65% spent on reducing emissions for third-party customers.

Source: https://corporate.exxonmobil.com

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