Exxon Mobil Q4 Earnings: Mixed Results, But CEO Promises 'Profitable Growth Well Into the Future'

Exxon Mobil Corporation (NYSE: XOM) recently reported its fourth-quarter 2024 earnings, offering a mixed bag of results that both impressed and disappointed investors. While the company's earnings per share (EPS) of $1.67 beat analyst estimates of $1.56, total revenue of $83.43 billion fell short of the consensus estimate of $87.2 billion. Despite the revenue miss, Exxon Mobil's CEO, Darren Woods, remains optimistic about the company's future prospects, promising 'profitable growth well into the future.'



Exxon Mobil's earnings report highlighted several positive aspects, including record production in the Permian and Guyana, as well as record sales volumes of high-value products. The company also distributed $36 billion to shareholders in 2024, more than all but five companies in the entire S&P 500. Additionally, Exxon Mobil achieved $12.1 billion in cumulative structural cost savings since 2019, more than offsetting inflation and growth.

However, the company's refining business continues to face pressure, as the startup of new oil refineries by other companies in Asia and Africa has led to higher global fuel supply, even as demand for gasoline and diesel lagged expectations. Exxon Mobil expects this trend to continue in 2025, with refining margins cut by between $300 million and $700 million compared to the third quarter.



Despite these challenges, Woods remains confident in the company's ability to deliver on its plans to generate significantly more earnings and cash – not only to 2030, but well beyond. Exxon Mobil's unique investment opportunities, such as its lucrative and prolific projects in Guyana and the Permian Basin, are expected to drive profitable growth well into the future. The company's strong financial performance, including returns higher than its peers and well above its cost of capital, further supports Woods' optimism.

In conclusion, Exxon Mobil's Q4 earnings report offered a mix of positive and negative results, with EPS beating analyst estimates but total revenue falling short. Despite the revenue miss, CEO Darren Woods remains confident in the company's ability to deliver 'profitable growth well into the future,' driven by its unique investment opportunities and strong financial performance. As the energy transition continues, Exxon Mobil's commitment to lower-emission business opportunities, such as carbon capture and storage, hydrogen, and lower-emission fuels, will be crucial in maintaining its long-term investment potential.