ExxonMobil(US:XOM)2024-11-04 17:56Financial Performance - ExxonMobil's third quarter 2024 earnings were $8.6 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 $8.6 billion[62]. - Earnings for the first nine months of 2024 were $26.1 billion, a decrease of 8.1% compared to $28.4 billion in the same period of 2023[70]. - Total upstream earnings for the third quarter of 2024 were $6.158 billion, slightly up from $6.125 billion in the same quarter of 2023[71]. - Energy Products total earnings for the third quarter of 2024 were $1.309 billion, down from $2.442 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 $249 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 $619 million in the same period of 2023[118]. Capital Expenditures - Capital and exploration expenditures increased to $7.2 billion, up $1.1 billion from the third quarter of 2023[69]. - Capital and exploration expenditures increased to $20.0 billion, up $1.5 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 $11.3 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 $60.8 billion, compared to $55.7 billion for the same period in 2023[67]. - Corporate and Financing expenses for the third quarter of 2024 were $544 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 $12.3 billion in dividends and repurchased $13.8 billion of common stock[70]. - The Corporation distributed a total of $12.3 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 $1.1 billion from 2023, with income tax expense at $4.1 billion compared to $4.4 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 $7.6 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 $140 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].