01—Abstract
Summary
Summary of the 8-K filed October 3, 2024. Cited figures are marked; the original filing is the authoritative source.
ExxonMobil's October 3, 2024 8-K furnishes Exhibit 99.1, a voluntary Regulation FD preview of factors expected to affect third-quarter 2024 results relative to second quarter 2024.
It is not an earnings estimate. The company reported 2Q24 U.S. GAAP earnings of $9.2 billiona, with no Identified Items, so 2Q24 earnings excluding Identified Items were also $9.2 billion. Segment earnings were Upstream $7.1B, Energy Products $0.9B, Chemical Products $0.8B, Specialty Products $0.8B, and Corporate & Financing $(0.3)B.
The main negative driver is the market environment. Management estimates lower liquids prices would reduce 3Q earnings by $0.6B to $1.0Bb, and weaker industry margins would reduce Upstream earnings by a further $0.6B to $1.0B. Together, these two items point to a meaningful Upstream headwind.
Gas prices are roughly neutral (a $0.2Bc reduction to a $0.2B gain), and Energy Products and Chemical Products margins are estimated to be flat to slightly positive. Timing effects and scheduled maintenance are shown as smaller, mixed items, with higher scheduled maintenance expected to weigh on Energy Products. Investors should treat these ranges as partial and directional.
The company states the list excludes operating performance, unscheduled downtime, foreign exchange, and other items, and that the figures are subject to finalization. The company plans to report full 3Q24 results on November 1, 2024, at approximately 5:30 a.m. CT.
02—Key points
Key Highlights
- 2Q24 U.S. GAAP earnings were $9.2 billion, with no Identified Items, so earnings excluding Identified Items were also $9.2 billion.
- Upstream earnings of $7.1 billion were the largest contributor in 2Q24; Corporate & Financing was a $(0.3) billion loss.
- Lower liquids prices are estimated to reduce 3Q24 earnings by $0.6 billion to $1.0 billion.
- Upstream industry margin changes are estimated to reduce 3Q24 earnings by $0.6 billion to $1.0 billion, compounding the liquids price headwind.
- Gas price changes are estimated at -$0.2 billion to +$0.2 billion, and Energy and Chemical Products margin effects are estimated at $0.0 billion to $0.2 billion each.
- Scheduled maintenance is expected to be a $0.3 billion to $0.5 billion headwind for Energy Products.
- This is a preview of selected factors, not a full 3Q24 earnings estimate; full results are scheduled for release on November 1, 2024.
03—Questions
Frequently Asked Questions
Does this filing give ExxonMobil's 3Q 2024 earnings estimate?
No. The exhibit explicitly states it is not an estimate of 3Q 2024 earnings. It lists only selected market and planned factors, and it does not reflect operating performance, unscheduled downtime, foreign exchange, or other changes.
What is the biggest expected drag on 3Q 2024 results?
Based on the ranges provided, the largest identified drags are lower liquids prices (about $0.6B to $1.0B) and weaker Upstream industry margins (about $0.6B to $1.0B). Together, these point to a substantial Upstream earnings headwind relative to 2Q24.
Were there any one-time items in 2Q 2024 that would distort the comparison?
No. The filing shows no Identified Items for 2Q24, so reported U.S. GAAP earnings of $9.2 billion equal earnings excluding Identified Items. This makes the 2Q24 baseline clean for comparison.
When will ExxonMobil report its full 3Q 2024 results?
The company intends to furnish 3Q 2024 financial results on its website and in a Form 8-K on EDGAR at approximately 5:30 a.m. CT on Friday, November 1, 2024. If the filing fails, it will publish the results as soon as possible afterward.
Why does the filing include a non-GAAP measure, and how should investors use it?
Earnings excluding Identified Items remove individually significant non-operational events, typically those with at least a $250 million corporate earnings impact. Management says this improves comparability across periods. It is supplemental and should not be viewed in isolation or as a substitute for U.S. GAAP net income.
04—Continue