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ExxonMobil (XOM) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
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Exxon Mobil Corporation (XOM - Free Report) reported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84,344 million missed the Zacks Consensus Estimate of $91,814 million and also declined from the year-ago quarter’s figure of $95,429 million.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
The segment reported quarterly earnings (excluding identified items) of $6,266 million, down from $8,762 million reported in the year-ago quarter. The figure beat our estimate of $5,546.8 million. Higher volumes and improved mix, primarily from Guyana and Permian growth, and stronger gas realizations aided the business unit. This was partially offset by lower crude realizations, unfavorable tax impacts, and year-end inventory effects.
Operations in the United States recorded a profit of $1,573 million, down from $2,493 million registered in the December-end quarter of 2022. The company reported a profit of $4,693 million from non-U.S. operations, down from $6,269 million reported in the year-ago quarter.
Production: ExxonMobil’s total production averaged 3,824 thousand barrels of oil equivalent per day (MBoe/d), slightly higher than 3,822 MBoe/d reported a year ago. The figure also beat our estimate of 3,737.5 MBoe/d.
Liquids production increased to 2,550 thousand barrels per day (MBbls/d) from 2,461 MBbls/d in the prior-year quarter. The outperformance resulted from higher production, primarily in the United States, Canada and Africa. Yet, natural gas production totaled 7,645 million cubic feet per day (Mmcf/d), down from 8,167 Mmcf/d reported a year ago. This was primarily due to lower output from the United States, Europe, Asia and Australia.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $76.64 per barrel, significantly lower than the year-ago quarter’s figure of $82.14. The figure missed our estimate of $84.45. Crude price realization for non-U.S. operations declined to $74.23 per barrel from $75.78 and also missed our estimate of $79.61.
Natural gas price in the United States was $2.55 per thousand cubic feet (Mcf), lower than the year-ago quarter’s level of $6.62. The figure also lagged our estimate of $3.26 per Mcf. Also, in the non-U.S. section, the metric declined to $12.58 per Mcf from $21.11. The figure also missed our estimate of $15.55 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $3,018 million, down from $4,754 million recorded a year ago. This was primarily due to lower industry refining margins, higher seasonal expenses and lower volumes from higher scheduled maintenance and divestments.
Chemical Products
This unit of ExxonMobil recorded a $577-million profit (excluding identified items), up from $250 million registered in the year-ago quarter. The reported figure also beat our estimate of $455.7 million. Margins improved as a result of reduced U.S. feed costs and strong performance product sales, aiding the business unit.
Specialty Products
This ExxonMobil unit recorded a profit of $743 million (excluding identified items), down from $800 million recorded in the year-ago quarter. The reported figure beat our projection of $645 million. Higher margins from improved realizations and lower feed costs aided the business unit, partially offset by higher seasonal expenses and lower sales volume.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $14,702 million from operations and asset divestments. The company’s capital and exploration spending amounted to $7,757 million.
At the end of the fourth quarter 2023, ExxonMobil’s total cash and cash equivalents were $31,539 million, and long-term debt totaled $37,483 million.
Guidance
For the first quarter of 2024, ExxonMobil anticipates lower volumes to impact its Upstream segment, primarily due to the absence of favorable impacts from the fourth-quarter entitlement. Corporate and financing expenses are expected to be in the range of $300-$500 million.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Vaalco Energy is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. EGY’s 2024 earnings are expected to surge 325.7% year over year.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 79 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 163.3% year over year.
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s 2024 earnings are expected to surge 76.4% year over year.
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ExxonMobil (XOM) Q4 Earnings Beat Estimates, Revenues Fall Y/Y
Exxon Mobil Corporation (XOM - Free Report) reported fourth-quarter 2023 earnings per share of $2.48 (excluding identified items), which beat the Zacks Consensus Estimate of $2.21. However, the bottom line declined from the year-ago level of $3.40.
Total quarterly revenues of $84,344 million missed the Zacks Consensus Estimate of $91,814 million and also declined from the year-ago quarter’s figure of $95,429 million.
Better-than-expected quarterly earnings primarily resulted from increased liquids production. The positives were partially offset by lower realizations of crude and natural gas prices.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
Exxon Mobil Corporation price-consensus-eps-surprise-chart | Exxon Mobil Corporation Quote
Operational Performance
Upstream
The segment reported quarterly earnings (excluding identified items) of $6,266 million, down from $8,762 million reported in the year-ago quarter. The figure beat our estimate of $5,546.8 million. Higher volumes and improved mix, primarily from Guyana and Permian growth, and stronger gas realizations aided the business unit. This was partially offset by lower crude realizations, unfavorable tax impacts, and year-end inventory effects.
Operations in the United States recorded a profit of $1,573 million, down from $2,493 million registered in the December-end quarter of 2022. The company reported a profit of $4,693 million from non-U.S. operations, down from $6,269 million reported in the year-ago quarter.
Production: ExxonMobil’s total production averaged 3,824 thousand barrels of oil equivalent per day (MBoe/d), slightly higher than 3,822 MBoe/d reported a year ago. The figure also beat our estimate of 3,737.5 MBoe/d.
Liquids production increased to 2,550 thousand barrels per day (MBbls/d) from 2,461 MBbls/d in the prior-year quarter. The outperformance resulted from higher production, primarily in the United States, Canada and Africa. Yet, natural gas production totaled 7,645 million cubic feet per day (Mmcf/d), down from 8,167 Mmcf/d reported a year ago. This was primarily due to lower output from the United States, Europe, Asia and Australia.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $76.64 per barrel, significantly lower than the year-ago quarter’s figure of $82.14. The figure missed our estimate of $84.45. Crude price realization for non-U.S. operations declined to $74.23 per barrel from $75.78 and also missed our estimate of $79.61.
Natural gas price in the United States was $2.55 per thousand cubic feet (Mcf), lower than the year-ago quarter’s level of $6.62. The figure also lagged our estimate of $3.26 per Mcf. Also, in the non-U.S. section, the metric declined to $12.58 per Mcf from $21.11. The figure also missed our estimate of $15.55 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $3,018 million, down from $4,754 million recorded a year ago. This was primarily due to lower industry refining margins, higher seasonal expenses and lower volumes from higher scheduled maintenance and divestments.
Chemical Products
This unit of ExxonMobil recorded a $577-million profit (excluding identified items), up from $250 million registered in the year-ago quarter. The reported figure also beat our estimate of $455.7 million. Margins improved as a result of reduced U.S. feed costs and strong performance product sales, aiding the business unit.
Specialty Products
This ExxonMobil unit recorded a profit of $743 million (excluding identified items), down from $800 million recorded in the year-ago quarter. The reported figure beat our projection of $645 million. Higher margins from improved realizations and lower feed costs aided the business unit, partially offset by higher seasonal expenses and lower sales volume.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $14,702 million from operations and asset divestments. The company’s capital and exploration spending amounted to $7,757 million.
At the end of the fourth quarter 2023, ExxonMobil’s total cash and cash equivalents were $31,539 million, and long-term debt totaled $37,483 million.
Guidance
For the first quarter of 2024, ExxonMobil anticipates lower volumes to impact its Upstream segment, primarily due to the absence of favorable impacts from the fourth-quarter entitlement. Corporate and financing expenses are expected to be in the range of $300-$500 million.
Zacks Rank & Stocks to Consider
ExxonMobil currently carries a Zacks Rank #3 (Hold).
Investors interested in the energy sector may look at some better-ranked companies like Vaalco Energy (EGY - Free Report) , Subsea 7 S.A. (SUBCY - Free Report) and Oceaneering International, Inc. (OII - Free Report) , which presently sport a Zacks Rank #1 (Strong Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Vaalco Energy is an independent energy company principally engaged in the acquisition, exploration, development, and production of crude oil and natural gas.
The Zacks Consensus Estimate for EGY’s 2024 EPS is pegged at $1.49. It has witnessed upward earnings estimate revisions for 2024 in the past 60 days. EGY’s 2024 earnings are expected to surge 325.7% year over year.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2024 EPS is pegged at 79 cents. It has witnessed upward earnings estimate revisions for 2024 in the past 30 days. SUBCY’s 2024 earnings are expected to soar 163.3% year over year.
Oceaneering International is one of the leading suppliers of offshore equipment and technology solutions to the energy industry.
The Zacks Consensus Estimate for OII’s 2024 EPS is pegged at $1.52. It has a Zacks Style Score of A for Growth and B for Value. OII’s 2024 earnings are expected to surge 76.4% year over year.