ExxonMobil(US:XOM)2024-08-05 17:15Financial Performance - In Q2 2024, ExxonMobil reported total earnings of $9.24 billion, with upstream earnings of $2.43 billion in the U.S. and $4.64 billion internationally[58]. - ExxonMobil's Q2 2024 earnings were $9.2 billion, or $2.14 per share, up from $7.9 billion a year earlier, driven by improved realizations and increased volumes[62]. - Upstream earnings for Q2 2024 totaled $7.1 billion, compared to $4.6 billion in Q2 2023, with significant contributions from both U.S. and non-U.S. operations[63]. - Energy Products earnings for Q2 2024 were $946 million, down from $2.3 billion in Q2 2023, primarily due to weaker industry refining margins[77]. - Net income for the first six months of 2024 was $18.1 billion, a decrease of $1.9 billion from the prior year[99]. Cost Management - The company achieved cumulative structural cost savings of $10.7 billion compared to 2019 levels, including an additional $1.0 billion in the first half of 2024[60]. - Total cash operating expenses excluding energy and production taxes were $39.5 billion in 2023, reflecting a decrease of $4.5 billion compared to 2019[61]. - ExxonMobil's total adjusted operating costs were $79.4 billion in 2023, with a slight increase from $78.8 billion in 2019[61]. - Structural cost savings contributed an increase of $210 million to earnings in Q2 2024[66]. - Corporate and Financing expenses decreased to $310 million in Q2 2024, down from $506 million in Q2 2023, a reduction of 38.7%[96]. Production and Operations - Record production from Guyana and growth in heritage Permian contributed to a 750 thousand oil-equivalent barrels per day increase in Q2 2024 production compared to Q2 2023[75]. - Worldwide net production of crude oil and natural gas liquids reached 2.98 million barrels per day in Q2 2024, up from 2.35 million barrels per day in Q2 2023[71]. - Refinery throughput in the United States decreased to 1,746 thousand barrels daily in Q2 2024 from 1,944 thousand barrels daily in Q2 2023, a decline of approximately 10.2%[82]. - Capital and exploration expenditures for Q2 2024 were $7.0 billion, an increase of $0.9 billion from Q2 2023[62]. - Capital and exploration expenditures in Q2 2024 were $7.0 billion, up 14% from Q2 2023[103]. Strategic Initiatives - The acquisition of Pioneer Natural Resources on May 3, 2024, is expected to enhance ExxonMobil's position in the oil and gas exploration sector[55]. - The company is focusing on high-value products, including performance chemicals and lower-emission fuels, to drive future growth[56]. - Future projects include the Fawley Hydrofiner and China Chemical Complex, which are expected to contribute to growth once completed[56]. - The company is evaluating additional advanced recycling projects worldwide to enhance sustainability efforts[56]. Sales and Market Trends - Chemical margins showed slight improvement in Q2 2024 but remained below the 10-year range due to capacity additions outpacing demand growth[54]. - Chemical Products earnings in the United States increased to $526 million in Q2 2024, up from $486 million in Q2 2023, representing an increase of 8.2%[84]. - Worldwide Chemical Products sales reached 4,873 thousand metric tons in Q2 2024, slightly up from 4,849 thousand metric tons in Q2 2023, an increase of 0.5%[88]. - Specialty Products earnings in the United States rose to $447 million in Q2 2024, compared to $373 million in Q2 2023, marking a growth of 19.9%[90]. - Worldwide Energy Products sales totaled 5,320 thousand barrels daily in Q2 2024, down from 5,658 thousand barrels daily in Q2 2023, a decrease of 6.0%[82]. Cash Flow and Financing - Cash flow from operations and asset sales in Q2 2024 was $11.5 billion, an increase of $0.8 billion from Q2 2023, primarily due to higher earnings[99]. - Net cash provided by operating activities for the first six months of 2024 totaled $25.2 billion, which is $0.5 billion lower than the same period in 2023[99]. - Net cash used in financing activities was $20.5 billion in the first six months of 2024, compared to $16.7 billion in the prior year[99]. - Total debt at the end of Q2 2024 was $43.2 billion, an increase from $41.6 billion at year-end 2023[99]. - The Corporation distributed $8.1 billion in dividends and repurchased $8.3 billion of common stock in the first half of 2024[62]. Taxation and Regulatory - Total taxes for Q2 2024 were $11.6 billion, a decrease of $0.2 billion from 2023, with income tax expense at $4.1 billion[102]. - The effective income tax rate for the first six months of 2024 was 35%, up from 34% in the prior year period[102]. Market Sensitivity - A $1 per barrel change in the weighted-average realized price of oil would have approximately a $650 million annual after-tax effect on Upstream consolidated plus equity company earnings[109]. - A $0.10 per thousand cubic feet change in the worldwide average gas realization would have approximately a $155 million annual after-tax effect on Upstream consolidated plus equity company earnings[109]. - Crude oil, natural gas, petroleum product, and chemical prices fluctuate in response to changing market forces[109]. - Changes in benchmark prices for crude oil and natural gas provide broad indicators of changes in earnings experienced in any particular period[109].