ExxonMobil's 2024 Results: A Year of Record Production and Cost Savings
Friday, Jan 31, 2025 6:43 am ET
3min read 
ExxonMobil Corporation (NYSE: XOM) recently announced its 2024 financial results, showcasing a year of record production, cost savings, and strong financial performance. The company's chairman and chief executive officer, Darren Woods, attributed the success to the company's enterprise-wide transformation, which has improved the structural earnings power of the company.
One of the key highlights of the year was ExxonMobil's record production in the Permian Basin and Guyana. The company's strategic focus on these regions, along with its successful merger with Pioneer, has allowed it to achieve record production and high-value product sales volumes. This growth trend is expected to be sustainable, given the significant resources and strategic importance of these regions to the company's portfolio.
ExxonMobil's carbon capture and storage (CCS) development strategy also played a significant role in its 2024 results. The company's leadership in CCS, demonstrated by its new customer agreement that increases its total contracted CO2 offtake with industrial customers to 5.5 million metric tons per year, aligns with its long-term sustainability goals and regulatory pressures. By investing in CCS projects, ExxonMobil can reduce its greenhouse gas emissions, comply with regulations, and create new business opportunities.
The company's structural cost savings since 2019 have also contributed to its improved earnings power. ExxonMobil has achieved a cumulative total of $12.1 billion in structural cost savings, which is well beyond what any of its competitors have achieved. This includes $2.4 billion of savings during the year and $0.8 billion during the fourth quarter of 2024. These savings have more than offset inflation and growth, demonstrating the company's ability to control costs while maintaining its competitive edge.
Looking ahead, ExxonMobil expects to deliver an additional $6 billion in cumulative savings through the end of 2030 versus 2019. This projection is based on the company's continued focus on operational efficiency, strategic asset divestments, and the integration of acquired assets, such as the Pioneer merger. By maintaining this focus on cost savings, ExxonMobil is well-positioned to continue improving its earnings power and generating value for shareholders.
In conclusion, ExxonMobil's 2024 results demonstrate the company's ability to achieve record production, cost savings, and strong financial performance. The company's strategic focus on low-cost-of-supply assets, successful mergers and acquisitions, and partnerships, along with its commitment to reducing greenhouse gas emissions through CCS, have all contributed to its success. As the company looks ahead, it is well-positioned to continue generating value for shareholders and meeting the demands of environmentally conscious consumers.
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