10-QPeriod: Q2 FY2024

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2024

Filed August 5, 2024For Securities:XOM

Summary

ExxonMobil Corp. (XOM) reported strong financial results for the second quarter and first six months of 2024, bolstered significantly by the recent acquisition of Pioneer Natural Resources. Total revenues and other income increased across both periods compared to 2023, reaching $93.1 billion for the quarter and $176.1 billion year-to-date. Net income attributable to ExxonMobil for the quarter was $9.24 billion, up from $7.88 billion in the prior year's second quarter, while year-to-date net income stood at $17.46 billion, a decrease from $19.31 billion in the same period of 2023, primarily due to lower refining margins and higher scheduled maintenance. The acquisition of Pioneer Natural Resources, completed on May 3, 2024, is a major strategic development, contributing $4.37 billion in sales and $398 million in net income in the current quarter and year-to-date. This acquisition significantly boosted Upstream volumes and earnings, partially offsetting weaker industry refining and chemical margins. The company continued its commitment to shareholder returns, distributing $8.1 billion in dividends and repurchasing $8.3 billion in common stock during the first six months of the year.

Financial Highlights

41 data points
Beta

Revenue

$93.06B

Net Income

$9.24B

9.9% Net Margin

EPS (Diluted)

$2.14

Total Assets

$460.71B

Cash & Equivalents

$26.49B

Free Cash Flow

$4.33B

Financial Statements
Beta
Revenue$93.06B
SG&A Expenses$2.57B
Operating Expenses$79.39B
Interest Expense$271.00M
Net Income$9.24B
EPS (Basic)$2.14
EPS (Diluted)$2.14
Shares Outstanding (Basic)4.32B

Key Highlights

  • 1ExxonMobil reported a net income attributable to ExxonMobil of $9.24 billion for Q2 2024, an increase from $7.88 billion in Q2 2023, driven by improved Upstream realizations and volumes, partly offset by weaker refining margins.
  • 2The acquisition of Pioneer Natural Resources, completed on May 3, 2024, significantly contributed to the company's results, particularly boosting Upstream segment volumes and earnings.
  • 3Total revenues and other income for the quarter rose to $93.1 billion from $82.9 billion in the prior year's second quarter.
  • 4The company distributed $8.1 billion in dividends and repurchased $8.3 billion of common stock in the first six months of 2024, demonstrating a continued focus on shareholder returns.
  • 5While Upstream performance was strong, industry refining and chemical margins declined, impacting the Energy Products and Chemical Products segments.
  • 6Capital and exploration expenditures increased to $7.0 billion in Q2 2024 and $12.9 billion year-to-date, with the company anticipating approximately $28 billion in investments for the full year 2024.
  • 7The company highlighted ongoing structural cost savings, adding $1.0 billion in the first six months of 2024, contributing to disciplined expense management.

Frequently Asked Questions

The acquisition of Pioneer Natural Resources, completed on May 3, 2024, significantly contributed to ExxonMobil's results. It boosted Upstream segment volumes and earnings, adding $4.37 billion in sales and $398 million in net income attributable to ExxonMobil for the second quarter and year-to-date periods reported. The acquisition also led to an increase in capital and exploration expenditures.

The increase in net income for the second quarter of 2024 to $9.24 billion from $7.88 billion in the prior year was primarily driven by improved realizations and increased volumes from advantaged Upstream investments, particularly in Guyana and the Permian Basin, and the contribution from the Pioneer acquisition. These positive factors were partially offset by weaker industry refining margins and higher scheduled maintenance.

ExxonMobil generated $25.2 billion in net cash from operating activities for the first six months of 2024. The company continues to prioritize investing in high-return projects, maintaining a strong balance sheet, and sharing success with shareholders. In the first half of 2024, ExxonMobil distributed $8.1 billion in dividends and repurchased $8.3 billion of common stock, reflecting its capital allocation strategy.

Industry refining margins declined from the top of the 10-year range to the lower half, while chemical margins remained at bottom-of-cycle conditions, well below the 10-year range. These trends, driven by increased supply outperforming demand growth in refining and capacity additions outpacing demand in chemicals, negatively impacted the Energy Products and Chemical Products segments' earnings. The company is focusing on structural cost savings and advantaged growth projects to mitigate these pressures.