What drove ExxonMobil's operating profit changes in 2023?

ExxonMobil's operating profit changes in 2023 were primarily driven by the following factors: 1. **Impact of Lower Energy Prices**: ExxonMobil's operating income was negatively affected by lower energy prices, particularly in the fourth quarter. The company anticipated that lower natural gas prices would impact earnings by approximately $2 billion to $2.4 billion, while lower crude oil prices would account for about $1.3 billion to $1.7 billion. However, these losses were partially offset by gains from upstream mark-to-market derivative contracts. 2. **Strategic Investments and Cost Reductions**: Despite the challenges posed by fluctuating energy prices, ExxonMobil has been actively managing its operations to ensure long-term viability. The company has outlined plans to focus on leading earnings, cash flow growth, and shareholder returns while transitioning to a lower-emissions future. Strategic investments in advantaged assets, such as Guyana and the U.S. Permian Basin, are expected to bolster the company's earnings potential. In conclusion, ExxonMobil's operating profit changes in 2023 were primarily driven by the impact of lower energy prices, which was partially offset by strategic investments and cost reductions.