By Overview
Exxon Mobil, the largest oil company in the United States, has announced its fourth quarter earnings, surpassing expectations. Despite a challenging year, the company remains in growth mode and continues to prioritize shareholders through share buybacks and dividends. While their earnings have declined compared to the previous year, Exxon’s CEO, Darren Woods, attributes their success to a consistent strategy and execution excellence.
Financial Performance
Exxon Mobil has reported adjusted earnings per share of $2.48 for the fourth quarter, outperforming the consensus estimate of $2.20 on FactSet. The company’s total earnings for the year amounted to $36 billion, a decline of 35% from the record profits achieved in 2022. Despite this decrease, Exxon Mobil returned a significant $32.4 billion to shareholders last year.
Industry Challenges
Exxon Mobil’s results have been impacted by several factors including declining oil and gas prices as well as asset write-downs in California. Analysts anticipate a year-over-year contraction of around 35% in the fourth-quarter earnings. These challenges have contributed to a recent decline in the company’s stock price, which is currently about 14% below its record highs from the previous year.
Conclusion
While investors may not solely focus on Exxon Mobil’s earnings numbers, the company’s ability to navigate through industry challenges and prioritize shareholder returns sets them apart. Exxon Mobil remains confident in its growth strategy and aims to deliver sustained success in the future. Stay tuned for further analysis on Exxon’s earnings.
Exxon Growth Plans: Doubling Earnings by 2027
Exxon investors are eagerly awaiting the release of the company’s growth plans, which are expected to catapult its earnings to double the levels of 2019 by 2027. While there is excitement, some uncertainties loom over two key elements of this ambitious plan.
The Pioneer Natural Resources Acquisition
In October, Exxon made headlines with its agreement to acquire Pioneer Natural Resources, a move that would solidify its position as the largest oil producer in the Permian Basin spanning Texas and New Mexico. However, further details regarding the transaction have been requested by the Federal Trade Commission, potentially leading to regulatory hurdles.
Guyana’s Offshore Production Boost
Exxon has set its sights on a substantial production boost from offshore wells in Guyana. The company believes that this area holds billions of barrels of oil. Yet, there is a challenge. Venezuelan President Nicolás Maduro has claimed ownership of some of the acreage off the coast of Guyana, resulting in heightened tensions through aggressive statements and military exercises. Although Exxon asserts that Maduro’s claims are not affecting their plans for Guyana, investors may seek greater clarity on the severity of this threat.
Dividend Pressure
Shell’s recent announcement to increase its dividend may put pressure on Exxon to follow suit. With Exxon stock currently yielding 3.7%, shareholders could anticipate a potential dividend hike in the near future.
It is important to note that the results of Exxon’s growth plans are scheduled to be released before market open on Friday, accompanied by a conference call with investors at 7:30 a.m. CT. Stay tuned for the latest updates.
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