01—Abstract
Summary
Summary of the 10-Q filed April 29, 2024. Cited figures are marked; the original filing is the authoritative source.
ExxonMobil Corporation (XOM) reported its first quarter 2024 financial results, showing a decrease in net income attributable to shareholders to $8.22 billiona ($2.06 per diluted share) from $11.43 billion ($2.79 per diluted share) in the first quarter of 2023.
This decline was primarily driven by lower industry refining margins and reduced natural gas prices, which impacted the Energy Products and Upstream segments, respectively. Total revenues also saw a dip to $83.08 billionb from $86.56 billion year-over-year. The company continued its strategic capital allocation, with capital and exploration expenditures totaling $5.8 billion for the quarter, slightly down from the previous year.
ExxonMobil also returned significant capital to shareholders, with $3.8 billionc distributed through dividends and $3.0 billion used for share repurchases. The company maintains a strong balance sheet, with a debt-to-capital ratio of 16.0% and net debt-to-capital ratio of 3.2% at the end of the quarter. The anticipated merger with Pioneer Natural Resources remains on track for a second quarter 2024 closing, expected to enhance production and capital efficiency.
02—Key points
Key Highlights
- Net income attributable to ExxonMobil decreased to $8.22 billion in Q1 2024 from $11.43 billion in Q1 2023, primarily due to lower refining margins and natural gas prices.
- Earnings per diluted share (EPS) declined to $2.06 in Q1 2024 from $2.79 in Q1 2023.
- Total revenues and other income decreased to $83.08 billion in Q1 2024 from $86.56 billion in Q1 2023.
- Capital and exploration expenditures were $5.8 billion in Q1 2024, down from $6.4 billion in Q1 2023.
- The company returned $3.8 billion to shareholders via dividends and repurchased $3.0 billion in common stock during Q1 2024.
- The proposed merger with Pioneer Natural Resources is progressing towards an expected close in the second quarter of 2024.
- Total liabilities increased slightly to $164.87 billion as of March 31, 2024, from $163.78 billion as of December 31, 2023, while total equity increased to $213.05 billion from $212.54 billion.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2024filed April 29, 2024Financial Statements
Q1 FY2024 against Q1 FY2023
| Line item | Q1 FY2024Q1 FY2023 | Change |
|---|---|---|
| Revenue | $83.08B$83.64B | −0.7% |
| SG&A Expenses | $2.50B$2.39B | +4.4% |
| Operating Expenses | $70.71B$69.76B | +1.4% |
| Interest Expense | $221.00M$159.00M | +39.0% |
| Net Income | $8.22B$11.43B | −28.1% |
| EPS (Basic) | $2.06$2.79 | −26.2% |
| EPS (Diluted) | $2.06$2.79 | −26.2% |
| Shares Outstanding (Basic) | 4.00B4.10B | −2.5% |
05—Questions
Frequently Asked Questions
What were the main drivers of the change in net income compared to the prior year?
The primary reasons for the decrease in net income from $11.43 billion in Q1 2023 to $8.22 billion in Q1 2024 were declining industry refining margins and lower natural gas prices, which negatively impacted the Energy Products and Upstream segments, respectively. Additionally, higher expenses, particularly depreciation and depletion, contributed to the decrease.
How is ExxonMobil managing its capital and shareholder returns?
ExxonMobil allocated $5.8 billion to capital and exploration expenditures in Q1 2024. The company prioritizes investing in high-return projects, maintaining a strong balance sheet, and returning capital to shareholders. In Q1 2024, this included $3.8 billion in dividends and $3.0 billion in share repurchases. The debt-to-capital ratio remained healthy at 16.0%.
What is the status of the Pioneer Natural Resources merger?
The merger agreement with Pioneer Natural Resources, announced in October 2023, is on track for closing in the second quarter of 2024, pending regulatory approvals. ExxonMobil expects this transaction to enhance capital efficiency and production by combining Pioneer's Permian Basin acreage with ExxonMobil's development approach.
How did the different business segments perform in the first quarter of 2024?
The Upstream segment's earnings decreased year-over-year primarily due to lower natural gas prices and divestments, despite growth from Guyana. The Energy Products segment saw a significant earnings decline driven by weaker industry refining margins and the divestment of refining assets. The Chemical Products segment showed strong performance with increased earnings driven by higher North America feed advantage and improved volumes. The Specialty Products segment reported stable earnings, with strong lubricant margins offsetting weaker basestock margins.
06—Continue