Exxon Mobil (XOM) Q2 2024 earnings summary

Executive summary

• Second-quarter 2024 earnings reached $9.2 billion, the highest among industry peers, driven by record production in Guyana, the Permian, and Pioneer, with EPS of $2.14 and rapid integration of the Pioneer merger.

• Year-to-date earnings were $17.5 billion, down from $19.3 billion in the first half of 2023, as lower refining margins and natural gas prices offset strong volume growth and cost savings.

• The Pioneer acquisition closed in May 2024, adding 850K net acres in the Midland Basin, over 2B oil-equivalent barrels of reserves, and contributing $0.5 billion to earnings in its first two months.

• Advanced new low-carbon businesses, signing major CCS and hydrogen agreements and entering the lithium supply chain for U.S. battery production.

• Continued focus on high-return, advantaged investments and structural cost efficiencies, targeting $5 billion in additional savings by 2027.

Financial highlights

• Q2 2024 GAAP earnings: $9.2 billion; EPS: $2.14; cash flow from operations: $10.6 billion ($15.2 billion ex. working capital); free cash flow YTD: $15.0 billion.

• Q2 2024 revenue: $93.1 billion, up from $82.9 billion in Q2 2023; six-month revenue: $176.1 billion.

• Distributed $9.5 billion to shareholders in Q2, including $4.3 billion in dividends and $5.2 billion in share repurchases.

• Debt-to-capital ratio improved to 14%; net debt-to-capital at 6%; period-end cash balance was $26.5 billion.

• Structural cost savings reached $10.7 billion cumulatively since 2019, with $1.0 billion achieved in the first half of 2024.

Outlook and guidance

• Full-year 2024 capital and exploration expenditures expected at ~$28 billion, including Pioneer.

• Share repurchases are planned to exceed $19 billion in 2024, with an annual pace of $20 billion through 2025, subject to market conditions.

• Full-year 2024 production guidance raised to ~4.3 Moebd, Permian at ~1.2 Moebd; Guyana volumes to be ~80 Kbd lower in Q3 due to scheduled maintenance.

• Major project startups in 2025 include China 1 chemicals, Permian Crude Pipeline, Golden Pass LNG (expected late 2025), and Guyana FPSO.

• A third-quarter dividend of $0.95 per share was declared, payable September 10, 2024.