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ExxonMobil(XOM) - 2024 Q3 - Quarterly Report
XOMExxonMobil(XOM)2024-11-04 17:56
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Financial Performance - ExxonMobil's third quarter 2024 earnings were 8.6billion,adecreasefrom8.6 billion, a decrease from 9.1 billion in the same quarter last year, primarily due to weaker industry refining margins and higher Upstream depreciation[69]. - Earnings (loss) excluding Identified Items for the third quarter 2024 were consistent across segments, totaling 8.6billion[62].−Earningsforthefirstninemonthsof2024were8.6 billion[62]. - Earnings for the first nine months of 2024 were 26.1 billion, a decrease of 8.1% compared to 28.4billioninthesameperiodof2023[70].−Totalupstreamearningsforthethirdquarterof2024were28.4 billion in the same period of 2023[70]. - Total upstream earnings for the third quarter of 2024 were 6.158 billion, slightly up from 6.125billioninthesamequarterof2023[71].−EnergyProductstotalearningsforthethirdquarterof2024were6.125 billion in the same quarter of 2023[71]. - Energy Products total earnings for the third quarter of 2024 were 1.309 billion, down from 2.442billioninthesamequarterof2023[106].−TotalearningsforChemicalProductsinthethreemonthsendedSeptember30,2024,reached2.442 billion in the same quarter of 2023[106]. - Total earnings for Chemical Products in the three months ended September 30, 2024, reached 893 million, significantly up from 249millioninthesameperiodof2023,representinga258.6249 million in the same period of 2023, representing a 258.6% increase[112]. - Specialty Products earnings for the three months ended September 30, 2024, totaled 794 million, an increase of 28.3% compared to 619millioninthesameperiodof2023[118].CapitalExpenditures−Capitalandexplorationexpendituresincreasedto619 million in the same period of 2023[118]. Capital Expenditures - Capital and exploration expenditures increased to 7.2 billion, up 1.1billionfromthethirdquarterof2023[69].−Capitalandexplorationexpendituresincreasedto1.1 billion from the third quarter of 2023[69]. - Capital and exploration expenditures increased to 20.0 billion, up 1.5billionfromthefirstninemonthsof2023[70].−TheCorporationanticipatesaninvestmentlevelofapproximately1.5 billion from the first nine months of 2023[70]. - The Corporation anticipates an investment level of approximately 28 billion in 2024, subject to project progress and property acquisitions[132]. Production and Operations - Worldwide net production of crude oil and natural gas liquids increased to 3.187 million barrels per day in Q3 2024, up from 2.397 million barrels per day in Q3 2023[101]. - Year-to-date 2024 oil-equivalent production was 4.2 million barrels per day, an increase of 534 thousand barrels per day from 2023, driven by record Permian production[105]. - Worldwide refinery throughput for the three months ended September 30, 2024, was 3,985 thousand barrels daily, a decrease of 5.5% from 4,215 thousand barrels daily in the same period of 2023[110]. Costs and Savings - Structural Cost Savings totaled 11.3billionrelativeto2019levels,withanadditional11.3 billion relative to 2019 levels, with an additional 1.6 billion achieved in the first nine months of 2024[66]. - Total Adjusted Operating Costs (non-GAAP) for the nine months ended September 30, 2024, were 60.8billion,comparedto60.8 billion, compared to 55.7 billion for the same period in 2023[67]. - Corporate and Financing expenses for the third quarter of 2024 were 544million,anincreaseof544 million, an increase of 179 million compared to the same period in 2023, primarily due to higher financing costs[125]. Shareholder Returns - The Corporation distributed 12.3billionindividendsandrepurchased12.3 billion in dividends and repurchased 13.8 billion of common stock[70]. - The Corporation distributed a total of 12.3billiontoshareholdersinthefirstninemonthsof2024throughdividends[127].Taxation−TotaltaxesforQ32024were12.3 billion to shareholders in the first nine months of 2024 through dividends[127]. Taxation - Total taxes for Q3 2024 were 11.7 billion, a decrease of 1.1billionfrom2023,withincometaxexpenseat1.1 billion from 2023, with income tax expense at 4.1 billion compared to 4.4billionintheprioryear[130].−TheeffectiveincometaxrateforQ32024was354.4 billion in the prior year[130]. - The effective income tax rate for Q3 2024 was 35%, up from 34% in the prior year, primarily due to a change in the mix of results in jurisdictions with varying tax rates[130]. - Total other taxes and duties decreased by 0.9 billion to 7.6billioninQ32024comparedtothepreviousyear[130].MarketConditions−Industryrefiningmarginsdeclinedandmovedtothelowendofthe10−yearrange,whilechemicalmarginsimprovedslightlybutremainedbelowthe10−yearrangeduetooversupplyinAsia[57].−Naturalgaspricesstrengthenedduringthequarter,supportedbysummerdemandinNorthAmericaandsupplyconcernsinEurope[57].−WeakerindustryrefiningmarginsdecreasedEnergyProductsearningsby7.6 billion in Q3 2024 compared to the previous year[130]. Market Conditions - Industry refining margins declined and moved to the low end of the 10-year range, while chemical margins improved slightly but remained below the 10-year range due to oversupply in Asia[57]. - Natural gas prices strengthened during the quarter, supported by summer demand in North America and supply concerns in Europe[57]. - Weaker industry refining margins decreased Energy Products earnings by 5.150 billion year-to-date 2024 compared to 2023[108]. - Higher volumes from the Beaumont refinery expansion increased Energy Products earnings by 140millionyear−to−date2024[108].StrategicInitiatives−ThecompanycompletedtheacquisitionofPioneerNaturalResourcesonMay3,2024,enhancingitsexplorationandproductioncapabilities[58].−TheCorporationhaslong−termpurchaseagreementswithanestimatedtotalobligationofapproximately140 million year-to-date 2024[108]. Strategic Initiatives - The company completed the acquisition of Pioneer Natural Resources on May 3, 2024, enhancing its exploration and production capabilities[58]. - The Corporation has long-term purchase agreements with an estimated total obligation of approximately 3.0 billion and assumed take-or-pay obligations of $4.9 billion related to the Pioneer acquisition[128]. - The Corporation's plans include reaching Scope 1 and Scope 2 net zero from operated assets by 2050, with interim targets for specific assets by 2030 and 2035[134]. - The Corporation's capital investment guidance in lower-emission investments is based on its corporate plan, with actual investment levels subject to public policy support and available opportunities[136].