Exxon Mobil (XOM) Q3 2024 earnings summary

Executive summary

• Q3 2024 earnings were $8.6 billion, among the best third quarters in a decade, driven by record-high liquids production, enterprise-wide transformation, and strong operational performance, though down from $9.1 billion a year earlier due to weaker refining margins and higher depreciation.

• Year-to-date earnings totaled $26.1 billion, down from $28.4 billion in 2023, as lower refining margins and natural gas prices offset volume growth and cost savings.

• Achieved $11.3 billion in structural cost savings since 2019, with a target of $15 billion by 2027.

• Distributed $12.3 billion in dividends and repurchased $13.8 billion in stock in the first nine months of 2024, with a 4% dividend increase to $0.99 per share, marking 42 consecutive years of annual dividend growth.

• Closed the $63 billion all-stock acquisition of Pioneer Natural Resources, adding significant Permian assets and over 2 billion oil-equivalent barrels of reserves.

Financial highlights

• Q3 2024 earnings: $8.6 billion; revenue: $87.8 billion; EPS: $1.92; cash flow from operations: $17.6 billion; free cash flow: $11.3 billion.

• Year-to-date cash flow from operations: $42.8 billion; free cash flow: $26.4 billion.

• Capital and exploration expenditures: $7.2 billion in Q3, $20 billion year-to-date, in line with full-year guidance of $28 billion.

• Debt-to-capital ratio: 13.3% at Q3 end; net debt-to-capital ratio: 5%.

• Total assets increased to $461.9 billion, reflecting the Pioneer acquisition.

Outlook and guidance

• Full-year 2024 capital and exploration expenditures expected at $28 billion; actual spending may vary with project progress and acquisitions.

• Share repurchase program increased to $20 billion annually through 2025, with over $19 billion expected in 2024.

• On track to achieve $15 billion in cumulative structural cost savings by end of 2027.

• 4Q24 Upstream volumes expected to decrease by ~30 Koebd due to scheduled maintenance; full-year 2024 production, including Pioneer, expected at ~4.3 Moebd.

• Plans to reach FID on Baytown low-carbon hydrogen facility in 2025, with startup in 2029.