Exxon Mobil (XOM) Q2 2024 earnings summary

Executive summary

• Q2 2024 earnings reached $9.2 billion, the highest among industry peers, driven by record production in Guyana and the Permian, and rapid integration of the Pioneer acquisition, which closed ahead of schedule and contributed $0.5 billion to earnings.

• Year-to-date earnings were $17.5 billion, down from $19.3 billion in 2023, as lower refining margins and natural gas prices offset strong Upstream performance and cost savings.

• The Pioneer acquisition transformed the Upstream portfolio, adding 850,000 net acres in the Midland Basin, over 2 billion oil-equivalent barrels of reserves, and increasing the liquids mix to its highest level since the Exxon-Mobil merger.

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

• On track to achieve ~$5 billion in incremental structural cost efficiencies by 2027 versus 2023.

Financial highlights

• Q2 2024 earnings: $9.2 billion; Q2 revenue: $93.1 billion, up from $82.9 billion in Q2 2023.

• Cash flow from operations was $10.6 billion in Q2 and $25.2 billion year-to-date; free cash flow for the first half was $15.0 billion.

• Dividends paid: $4.3 billion in Q2; share buybacks: $5.2 billion in Q2, with $8.1 billion in dividends and $8.3 billion in repurchases year-to-date.

• Capital and exploration expenditures: $7.0 billion in Q2, $12.9 billion year-to-date.

• Debt-to-capital ratio: 14% at Q2 end; net debt-to-capital: 6%.

Outlook and guidance

• Full-year 2024 capital and exploration expenditures expected at ~$28 billion, including $3 billion for Pioneer.

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

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

• Corporate plan update and upstream spotlight scheduled for December 2024.

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