ExxonMobil, the world's largest publicly traded international oil and gas company, reported its fourth quarter and full-year 2024 earnings on January 31, 2025. The company's financial performance in 2024 was marked by a successful transformation strategy that drove industry-leading results and set the stage for continued growth. Here's a closer look at ExxonMobil's 2024 earnings and the key drivers behind its success.



Record Production and High-Value Product Sales

ExxonMobil achieved record production in the Permian and Guyana, two of its most strategic assets, and record sales volumes of high-value products. This strong advantaged volume growth more than offset lower base volumes from non-strategic asset divestments and scheduled maintenance. The company's investments in these regions and high-value products have paid off, contributing significantly to its earnings and cash flow growth in 2024.

Structural Cost Savings and Improved Returns on Capital Employed

Since 2019, ExxonMobil has achieved a cumulative total of $12.1 billion in structural cost savings, 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 quarter. These savings have more than offset inflation and growth, contributing to the company's financial strength and ability to return significant cash to shareholders. ExxonMobil's return on capital employed (ROCE) led the industry for the year at 12.7% and for the five-year average at 10.8%. When excluding cash balances and capital in projects under construction, the 2024 ROCE rose to roughly 17% with a five-year average of about 15%.

Strong Cash Flow and Shareholder Distributions

ExxonMobil generated strong cash flow from operations of $55.0 billion and free cash flow of $34.4 billion in 2024. The company distributed $36.0 billion to shareholders, more than all but five companies in the S&P 500. Excluding working capital, free cash flow more than covered shareholder distributions. ExxonMobil delivered industry-leading total shareholder returns of 11%, 25% and 14% for the last one, three and five years, respectively.



Looking Ahead

ExxonMobil's transformation strategy has driven impressive financial results in 2024, and the company is well-positioned to maintain this momentum in the coming years. With a long runway of value creation, ExxonMobil is confident in its ability to generate significantly more earnings and cash, not only to 2030 but well beyond. The company's unique investment opportunities in high-value products and strategic assets, such as the Permian and Guyana, will continue to drive profitable growth and underpin its financial strength and ability to return significant cash to shareholders.

In conclusion, ExxonMobil's 2024 earnings call highlighted the success of the company's transformation strategy, which has driven industry-leading results and set the stage for continued growth. With record production, high-value product sales, structural cost savings, and strong cash flow, ExxonMobil is well-positioned to maintain its momentum and deliver on its long-term plans.