Exxon Mobil Corp (XOM, Financial) announced its third-quarter 2023 earnings on October 27, 2023. The company reported strong earnings of $9.1 billion, or $2.25 per share, reflecting the reliable operating performance of an advantaged portfolio. The company produced $16.0 billion of operating cash flow and increased its cash balance by $3.4 billion.
Financial Highlights
The company's third-quarter earnings were $9.1 billion, an increase from the second-quarter earnings of $7.9 billion. This improvement was attributed to strong operating performance, including record third-quarter refining throughput, as well as a higher crude price and industry refining margin environment. These factors were partly offset by weaker chemical margins, unfavorable derivative mark-to-market impacts, and trading timing effects that are expected to unwind over time.
Exxon Mobil Corp (XOM, Financial) achieved $9.0 billion of cumulative structural cost savings versus 2019, ahead of schedule, with further savings expected by year-end. The company declared a fourth-quarter dividend of $0.95 per share, payable on Dec. 11, 2023, to shareholders of record of Common Stock at the close of business on Nov. 15, 2023. The company has increased its annual dividend for 41 consecutive years, including this increase of $0.04 per share, or 4 percent.
Operational Performance
Exxon Mobil Corp (XOM, Financial) delivered the best-ever third-quarter global refinery throughput at 4.2 million barrels per day. The company also announced an agreement to merge with Pioneer Natural Resources, a combination that will increase U.S. Permian production, enhance energy security, and accelerate Pioneer's path to net zero.
Future Outlook
Exxon Mobil Corp (XOM, Financial) has industry-leading plans to achieve net zero Scope 1 and 2 greenhouse gas emissions from its Permian unconventional operations by 2030. As part of the announced Pioneer merger, Exxon Mobil Corp (XOM) plans to accelerate Pioneer’s net-zero Permian ambition to 2035 from 2050. In addition, using a combination of technology, operating capabilities, infrastructure, recycling, and water sharing, the company expects to increase the amount of water sourced from oil and gas production used in its Permian fracturing operations to more than 90% by 2030.
Exxon Mobil Corp (XOM, Financial)'s disciplined operational and financial performance, combined with these strategic transactions, will strengthen its portfolio and position the company to deliver profitable growth and attractive returns for many years to come.
Explore the complete 8-K earnings release (here) from Exxon Mobil Corp for further details.
