• Earnings: $8.6 billion for the third quarter of 2024.

• Dividend Increase: 4% increase to $0.99 per share.

• Production Growth: 4.6 million oil equivalent barrels per day, a 24% increase versus the prior year quarter.

• Cost Reduction: $5 billion reduction in overall product solutions business costs versus 2019.

• Turnaround Cost Savings: $200 million less than previous turnarounds, a 24% reduction.

• Total Shareholder Return (TSR): 20% for the first 9 months of 2024.

• Unit Earnings Improvement: Increased from $5 to $10 per oil equivalent barrel since 2019.

• Pioneer Production Addition: 770,000 oil equivalent barrels per day.

• Low-Carbon Hydrogen Facility: Planned production of 1 billion cubic feet per day with 98% CO2 emissions captured.

• CO2 Storage Contracts: 6.7 million metric tons per year contracted for storage.

• Warning! GuruFocus has detected 8 Warning Signs with LNT.

Release Date: November 01, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points

• Exxon Mobil Corp (NYSE:XOM) announced strong third-quarter earnings of $8.6 billion, marking one of the best third quarters in the past decade.

• The company achieved significant structural cost savings, reducing costs by $5 billion compared to 2019.

• Exxon Mobil Corp (NYSE:XOM) increased its quarterly dividend by 4% to $0.99 per share, marking the 42nd consecutive year of annual dividend increases.

• The company reported a 24% increase in production to 4.6 million oil equivalent barrels per day compared to the prior year quarter.

• Exxon Mobil Corp (NYSE:XOM) is advancing its low-carbon solutions business, including plans for the world's largest low-carbon hydrogen production facility.

Negative Points

• The Joliet refinery faced an unprecedented shutdown due to a tornado, impacting fuel supplies in the region.

• Liquid prices and refining margins were down in the third quarter, affecting overall earnings.

• The Golden Pass LNG project is delayed by about six months, with first LNG expected in late 2025 or early 2026.

• The chemicals market in Asia, particularly China, remains in bottom-of-cycle conditions, impacting profitability.

• Exxon Mobil Corp (NYSE:XOM) faces challenges in translating the Inflation Reduction Act's technology-agnostic legislation into enabling regulations for its low-carbon projects.

Q & A Highlights

Q: Can you discuss the latest market trends across your refining footprint and the drivers behind the earnings beat in the downstream business? A: Darren Woods, CEO, explained that the downstream business's strong performance is due to a comprehensive approach to optimizing the entire value chain, cost-cutting measures, and centralizing maintenance activities. Kathy Mikells, CFO, added that faster-than-expected recovery at the Joliet refinery also contributed to the earnings beat.