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ExxonMobil (XOM) Q4 Earnings Beat Estimates on Higher Prices
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Exxon Mobil Corporation's (XOM - Free Report) fourth-quarter 2022 earnings per share of $3.40, excluding identified items, beat the Zacks Consensus Estimate of $3.32 and improved from the year-ago profit of $2.05.
Total quarterly revenues of $95,429 million missed the Zacks Consensus Estimate of $101,056 million but jumped from the year-ago quarter’s $84,965 million.
The strong earnings resulted from higher realized commodity prices and oil-equivalent production, and strong refining margins.
Buyback
ExxonMobil announced that in 2023-2024, it will be repurchasing a cumulative of up to $35 billion of shares.
Operational Performance
Upstream
The segment of ExxonMobil reported quarterly earnings (excluding identified items) of $8,762 million, improving from $6,628 million in the year-ago quarter. Higher commodity prices primarily drove the upside.
Operations in the United States recorded a profit of $2,493 million, which increased from $2,031 million in the December quarter of 2021. The company reported a profit of $6,269 million from non-U.S. operations, improving from $4,597 million in the year-ago quarter.
Production: ExxonMobil’s total production averaged 3,822 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,816 MBoe/d a year ago.
Liquid production increased to 2,461 thousand barrels per day (MBbls/d) from 2,385 MBbls/d in the prior-year quarter. The outperformance was owing to higher production, primarily in the United States and Canada. Yet, natural gas production was 8,167 million cubic feet per day (Mmcf/d), down from 8,584 Mmcf/d a year ago, primarily due to lower output from the United States and Canada.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $82.14 per barrel, significantly higher than the year-ago quarter’s $73.62. The same metric for non-U.S. operations rose to $75.78 per barrel from $69.97.
Natural gas prices in the United States were $6.62 per thousand cubic feet (Mcf), higher than the year-ago quarter’s $4.96. Also, in the non-U.S. section, the metric improved to $21.11 per Mcf from $14.32.
Energy Products
The segment of ExxonMobil recorded a profit (excluding identified items) of $4,754 million, up from $901 million a year ago due to robust industry refining margins.
Chemical Products
This unit of ExxonMobil recorded a $250 million profit (excluding identified items), down from $1,371 million in the year-ago quarter on lower margins thanks to weaker demand in Europe and North America.
Specialty Products
This unit of ExxonMobil recorded an $800 million profit (excluding identified items), up from earnings of $482 million in the year-ago quarter, primarily due to higher margins.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $18,954 million from operations and asset divestments. The company’s capital and exploration spending were $7,463 million.
At the end of fourth-quarter 2022, ExxonMobil’s total cash and cash equivalents were $29,640 million, and long-term debt amounted to $40,559 million.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Halliburton Company (HAL - Free Report) , Eni SpA (E - Free Report) and Antero Midstream Corporation (AM - Free Report) . While Eni and Antero Midstream carry a Zacks Rank #2 (Buy), Halliburton sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.
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ExxonMobil (XOM) Q4 Earnings Beat Estimates on Higher Prices
Exxon Mobil Corporation's (XOM - Free Report) fourth-quarter 2022 earnings per share of $3.40, excluding identified items, beat the Zacks Consensus Estimate of $3.32 and improved from the year-ago profit of $2.05.
Total quarterly revenues of $95,429 million missed the Zacks Consensus Estimate of $101,056 million but jumped from the year-ago quarter’s $84,965 million.
The strong earnings resulted from higher realized commodity prices and oil-equivalent production, and strong refining margins.
Buyback
ExxonMobil announced that in 2023-2024, it will be repurchasing a cumulative of up to $35 billion of shares.
Operational Performance
Upstream
The segment of ExxonMobil reported quarterly earnings (excluding identified items) of $8,762 million, improving from $6,628 million in the year-ago quarter. Higher commodity prices primarily drove the upside.
Operations in the United States recorded a profit of $2,493 million, which increased from $2,031 million in the December quarter of 2021. The company reported a profit of $6,269 million from non-U.S. operations, improving from $4,597 million in the year-ago quarter.
Production: ExxonMobil’s total production averaged 3,822 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,816 MBoe/d a year ago.
Liquid production increased to 2,461 thousand barrels per day (MBbls/d) from 2,385 MBbls/d in the prior-year quarter. The outperformance was owing to higher production, primarily in the United States and Canada. Yet, natural gas production was 8,167 million cubic feet per day (Mmcf/d), down from 8,584 Mmcf/d a year ago, primarily due to lower output from the United States and Canada.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $82.14 per barrel, significantly higher than the year-ago quarter’s $73.62. The same metric for non-U.S. operations rose to $75.78 per barrel from $69.97.
Natural gas prices in the United States were $6.62 per thousand cubic feet (Mcf), higher than the year-ago quarter’s $4.96. Also, in the non-U.S. section, the metric improved to $21.11 per Mcf from $14.32.
Energy Products
The segment of ExxonMobil recorded a profit (excluding identified items) of $4,754 million, up from $901 million a year ago due to robust industry refining margins.
Chemical Products
This unit of ExxonMobil recorded a $250 million profit (excluding identified items), down from $1,371 million in the year-ago quarter on lower margins thanks to weaker demand in Europe and North America.
Specialty Products
This unit of ExxonMobil recorded an $800 million profit (excluding identified items), up from earnings of $482 million in the year-ago quarter, primarily due to higher margins.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $18,954 million from operations and asset divestments. The company’s capital and exploration spending were $7,463 million.
At the end of fourth-quarter 2022, ExxonMobil’s total cash and cash equivalents were $29,640 million, and long-term debt amounted to $40,559 million.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold). Better-ranked players in the energy space include Halliburton Company (HAL - Free Report) , Eni SpA (E - Free Report) and Antero Midstream Corporation (AM - Free Report) . While Eni and Antero Midstream carry a Zacks Rank #2 (Buy), Halliburton sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Halliburton is well known for providing products and services to energy companies. Over the past 30 days, HAL has witnessed upward earnings estimate revisions for 2023 and 2024, respectively.
Eni is also leading the energy transition. The integrated energy player has been building a full set of decarbonized products and services for clients to achieve carbon neutrality by mid-century. Even though the energy business scenario is challenging, Eni’s efficient exploration keeps it highly competitive.
Antero Midstream generates stable cashflows, banking on its midstream assets involved in gathering, compression, processing and fractionation activities. The properties are centered around the prolific Appalachian Basin. Over the past 30 days, Antero Midstream has witnessed upward earnings estimate revisions for 2023.