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ExxonMobil (XOM) Q2 Earnings Top Estimates on Higher Production
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Exxon Mobil Corporation (XOM - Free Report) reported second-quarter 2024 earnings per share of $2.14 (excluding identified items), which beat the Zacks Consensus Estimate of $2.04. The bottom line also improved from the year-ago level of $1.94.
Total quarterly revenues of $93.1 billion topped the Zacks Consensus Estimate of $90.4 billion. The top line also increased from the year-ago quarter’s figure of $82.9 billion.
The strong quarterly results were primarily driven by higher production in the upstream segment, higher crude realizations and contributions from the Pioneer acquisition.
Exxon Mobil Corporation Price, Consensus and EPS Surprise
The segment reported quarterly earnings (excluding identified items) of $7.1 billion, up from $4.6 billion reported in the year-ago quarter. The increase can be primarily attributed to growth in production from the Pioneer acquisition, volume growth from the offshore Guyana resources, and Permian — the most prolific basin in the United States. Cost saving initiatives also supported the upstream business unit. Higher realizations of crude prices and gains from divestment also contributed to the improvement.
Operations in the United States recorded a profit of $2.4 billion, higher than $920 million registered in the June-end quarter of 2023. The company reported a profit of $4.6 billion from non-U.S. operations compared with $3.7 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,358 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,608 MBoe/d reported a year ago. The figure also beat our estimate of 4,208.3 MBoe/d.
Liquids production also increased to 2,984 thousand barrels per day (MBbls/d) from 2,353 MBbls/d in the prior-year quarter. Higher production, particularly in the United States and Canada, contributed to the increase.
Natural gas production totaled 8,243 million cubic feet per day (Mmcf/d), up from 7,529 Mmcf/d reported a year ago. This was primarily due to increased output levels from the United States, Canada, Africa and Asia.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $79.00 per barrel, higher than the year-ago quarter’s figure of $71.36. The figure marginally missed our estimate of $79.72. Crude price realization for non-U.S. operations increased to $77.60 per barrel from $70.08 in the year-ago quarter. Our estimate for the same was pinned at $74.34 per barrel.
Natural gas price in the United States was $1.04 per thousand cubic feet (Mcf), lower than the year-ago quarter’s level of $1.45. Our estimate for the same was pegged at $1.87 per Mcf. Also, in the non-U.S. section, the metric declined to $9.73 per Mcf from $11.44. The figure also missed our estimate of $12.19 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $946 million, down from $2.29 billion recorded a year ago. The reported figure also lagged our estimate of $2.33 billion. This was primarily due to soft refining margins in the industry and unfavorable timing effects from derivatives mark-to-market impacts.
Chemical Products
This unit of ExxonMobil recorded a profit of $779 million (excluding identified items), down from $828 million registered in the year-ago quarter. The reported figure also lagged our estimate of $851 million. This was mainly due to weak margins throughout the industry worldwide. Project expenses and higher maintenance costs also affected earnings in the segment.
Specialty Products
This ExxonMobil unit recorded a profit of $751 million (excluding identified items), up from $671 million recorded in the year-ago quarter. Our projection for the same was pegged at $715.1 million. The segment benefited from structural cost reductions and increased volumes across the lubricants value chain. However, the positives were slightly offset by weaker industry basestock margins.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $11.5 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $7 billion.
At the end of the second quarter, ExxonMobil’s total cash and cash equivalents were $ 26.5 billion, and long-term debt totaled $ 36.6 billion.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.
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ExxonMobil (XOM) Q2 Earnings Top Estimates on Higher Production
Exxon Mobil Corporation (XOM - Free Report) reported second-quarter 2024 earnings per share of $2.14 (excluding identified items), which beat the Zacks Consensus Estimate of $2.04. The bottom line also improved from the year-ago level of $1.94.
Total quarterly revenues of $93.1 billion topped the Zacks Consensus Estimate of $90.4 billion. The top line also increased from the year-ago quarter’s figure of $82.9 billion.
The strong quarterly results were primarily driven by higher production in the upstream segment, higher crude realizations and contributions from the Pioneer acquisition.
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 $7.1 billion, up from $4.6 billion reported in the year-ago quarter. The increase can be primarily attributed to growth in production from the Pioneer acquisition, volume growth from the offshore Guyana resources, and Permian — the most prolific basin in the United States. Cost saving initiatives also supported the upstream business unit. Higher realizations of crude prices and gains from divestment also contributed to the improvement.
Operations in the United States recorded a profit of $2.4 billion, higher than $920 million registered in the June-end quarter of 2023. The company reported a profit of $4.6 billion from non-U.S. operations compared with $3.7 billion in the year-ago quarter.
Production: ExxonMobil’s production averaged 4,358 thousand barrels of oil equivalent per day (MBoe/d), higher than 3,608 MBoe/d reported a year ago. The figure also beat our estimate of 4,208.3 MBoe/d.
Liquids production also increased to 2,984 thousand barrels per day (MBbls/d) from 2,353 MBbls/d in the prior-year quarter. Higher production, particularly in the United States and Canada, contributed to the increase.
Natural gas production totaled 8,243 million cubic feet per day (Mmcf/d), up from 7,529 Mmcf/d reported a year ago. This was primarily due to increased output levels from the United States, Canada, Africa and Asia.
Price Realization: In the United States, ExxonMobil recorded crude price realization of $79.00 per barrel, higher than the year-ago quarter’s figure of $71.36. The figure marginally missed our estimate of $79.72. Crude price realization for non-U.S. operations increased to $77.60 per barrel from $70.08 in the year-ago quarter. Our estimate for the same was pinned at $74.34 per barrel.
Natural gas price in the United States was $1.04 per thousand cubic feet (Mcf), lower than the year-ago quarter’s level of $1.45. Our estimate for the same was pegged at $1.87 per Mcf. Also, in the non-U.S. section, the metric declined to $9.73 per Mcf from $11.44. The figure also missed our estimate of $12.19 per Mcf.
Energy Products
The segment recorded a profit (excluding identified items) of $946 million, down from $2.29 billion recorded a year ago. The reported figure also lagged our estimate of $2.33 billion. This was primarily due to soft refining margins in the industry and unfavorable timing effects from derivatives mark-to-market impacts.
Chemical Products
This unit of ExxonMobil recorded a profit of $779 million (excluding identified items), down from $828 million registered in the year-ago quarter. The reported figure also lagged our estimate of $851 million. This was mainly due to weak margins throughout the industry worldwide. Project expenses and higher maintenance costs also affected earnings in the segment.
Specialty Products
This ExxonMobil unit recorded a profit of $751 million (excluding identified items), up from $671 million recorded in the year-ago quarter. Our projection for the same was pegged at $715.1 million. The segment benefited from structural cost reductions and increased volumes across the lubricants value chain. However, the positives were slightly offset by weaker industry basestock margins.
Financials
In the quarter under review, ExxonMobil generated a cash flow of $11.5 billion from operations and asset divestments. The company’s capital and exploration spending amounted to $7 billion.
At the end of the second quarter, ExxonMobil’s total cash and cash equivalents were $ 26.5 billion, and long-term debt totaled $ 36.6 billion.
Zacks Rank and Key Picks
Currently, XOM carries a Zacks Rank #4 (Sell).
Some better-ranked stocks in the energy sector are SM Energy (SM - Free Report) , VAALCO Energy (EGY - Free Report) and Energy Transfer LP (ET - Free Report) . SM Energy presently sports a Zacks Rank #1 (Strong Buy), while VAALCO and Energy Transfer carry a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
SM Energy is an upstream energy firm operating in the prolific Midland Basin and the South Texas regions. For 2024, the company expects its production to increase from the prior-year reported figure, signaling a bright production outlook.
VAALCO Energyis an independent energy company involved in upstream operation business with a diversified presence in Africa and Canada. Having a large inventory of drilling locations in premium Canadian Acreage, the company’s production outlook seems bright.
Energy Transfer is a midstream player that owns and operates one of the most diversified portfolios of energy assets in the United States. Boasting a pipeline network extending more than 125,000 miles, its network spans over 44 states. With a presence in all the major U.S. production basins, the company’s outlook seems positive.