On August 2, 2024, Exxon Mobil Corp (XOM, Financial) released its 8-K filing for the second quarter of 2024, showcasing robust financial results and strategic advancements. ExxonMobil, an integrated oil and gas company, explores, produces, and refines oil globally. In 2023, it produced 2.4 million barrels of liquids and 7.7 billion cubic feet of natural gas per day, with reserves totaling 16.9 billion barrels of oil equivalent.
Performance Overview
Exxon Mobil Corp (XOM, Financial) reported second-quarter earnings of $9.2 billion, or $2.14 per share, falling short of the analyst estimate of $2.33 per share. The company's revenue for the quarter was $93.26 billion, aligning closely with the estimated $93.26 billion. This performance highlights the company's ability to leverage its diversified portfolio and strategic acquisitions to drive growth.
Key Financial Achievements
ExxonMobil's second-quarter earnings were bolstered by the successful integration of the Pioneer merger, which contributed $0.5 billion to earnings within the first two months post-closing. The company also achieved record production in Guyana and the Permian Basin, with upstream net production growing by 15% from the first quarter.
| Metric | 2Q24 | 1Q24 | Change vs 1Q24 | YTD 2024 | YTD 2023 | Change vs YTD 2023 |
|---|---|---|---|---|---|---|
| Earnings (U.S. GAAP) | $9,240M | $8,220M | +1,020M | $17,460M | $19,310M | -1,850M |
| Earnings Per Common Share | $2.14 | $2.06 | +0.08 | $4.20 | $4.73 | -0.53 |
| Capital and Exploration Expenditures | $7,039M | $5,839M | +1,200M | $12,878M | $12,546M | +332M |
Income Statement Highlights
ExxonMobil's income statement reveals a strong financial position with earnings of $9.2 billion for the second quarter, up from $8.2 billion in the first quarter. The company's earnings per share also increased to $2.14 from $2.06. Capital and exploration expenditures rose to $7.0 billion, reflecting the company's ongoing investments in growth and sustainability initiatives.
Balance Sheet and Cash Flow
The company's balance sheet remains robust with a debt-to-capital ratio of 14% and a net-debt-to-capital ratio of 6%. ExxonMobil generated strong cash flow from operations of $25.2 billion and free cash flow of $15.0 billion in the first half of the year. Shareholder distributions totaled $9.5 billion, including $4.3 billion in dividends and $5.2 billion in share repurchases.
Strategic Initiatives and Future Outlook
ExxonMobil continues to expand its value proposition through new business ventures, including carbon capture and storage (CCS) and virtually carbon-free hydrogen production. The company signed a new CCS agreement, increasing its total contracted CO2 offtake to 5.5 million metric tons per year, more than any other company has announced.
“We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company,” said Darren Woods, chairman and chief executive officer.
Analysis
ExxonMobil's strong second-quarter performance underscores its strategic focus on high-value production and sustainable growth. The successful integration of the Pioneer merger and record production levels in key regions highlight the company's operational efficiency and market leadership. However, challenges such as fluctuating industry margins and natural gas prices may impact future earnings. Overall, ExxonMobil's robust financial health and strategic initiatives position it well for continued growth in the evolving energy landscape.
Explore the complete 8-K earnings release (here) from Exxon Mobil Corp for further details.
