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Record production in Guyana, Permian help Exxon pocket US$7.3B earnings for Q4 2024
Kaieteur News- Record production in Guyana and Permian helped American oil giant ExxonMobil Corporation beat analysts’ 2024 fourth quarter profit estimates.
Darren Woods, Chairman and Chief Executive Officer of Exxon
The announcement was made on Friday.
Exxon’s adjusted profit is US$7.39 billion, or US$1.67 per share. The company reported full-year adjusted earnings of US$33.46 billion, a decrease from its US$38.57 billion earned the previous year.
Exxon said, “Strong advantaged volume growth including record production from Guyana and Permian, and record high-value product sales volumes, more than offset lower base volumes from non-strategic asset divestments and scheduled maintenance. Structural cost savings partly offset higher expenses from depreciation, scheduled maintenance, new product development and 2025 project start-ups.”
Exxon’s subsidiary ExxonMobil Guyana Limited (EMGL) is the operator of the Stabroek Block, which covers an area of 6.6 million acres and is estimated to hold 11.6 billion barrels of oil. To date, Exxon has obtained approval from the Government of Guyana for six development projects in the Stabroek Block – Liza Phase One, Liza Phase Two, Payara, Yellowtail, Uaru and Whiptail. The first three projects are already producing oil at a daily estimated rate of 660,000 barrels per day (bpd).
The Stabroek Block deal waives all taxes from the oil companies and caters for taxes to be paid by Guyana and agrees to the oil companies recovering 75% of investments before the remaining 25% is shared as profit.
Notably, Exxon’s fourth-quarter adjusted earnings were $6.28 billion, an increase from the third-quarter driven by record production in Guyana and Permian, stronger natural gas prices, and favourable tax impacts, partly offset by lower crude realizations. Exxon’s net production in the fourth quarter was 4.6 million oil-equivalent barrels per day, an increase of 20,000 oil-equivalent barrels per day versus the prior quarter.
On the company’s production performance, ExxonMobil Chief Financial Officer, Kathy Mikells, highlighted the company’s success in exceeding its strategic targets. “In 2024, our advantaged assets – the Permian, Guyana, and LNG – represented more than 50% of production, a target that we achieved three years early,” Mikells said.
Looking ahead, Mikells said Exxon anticipates further production increases from these high-value assets. “We expect more than 60% of our volumes will be generated from our advantaged assets in the Permian, Guyana, and LNG by 2030. This results in a significant step up in profitability: at constant prices, another $3 per barrel by 2030,” it was said.
The Yellowtail project, Exxon’s fourth and largest development in Guyana, remains on track for start-up later this year and is expected to contribute significantly to the company’s long-term growth.
“With each new project start-up, the transformation of ExxonMobil and our improved earnings power comes into clearer view. In 2025, we’re starting up 10 key projects. In 2026, the first full year after start-up, these ten projects alone not including our growth in the Permian, have the potential to deliver more than US$3 billion in earnings,” she noted.
Moreover, Darren Woods, Chairman and Chief Executive Officer of Exxon, said, “Our transformed company delivered unmatched value in 2024…The proof is in our performance. Operationally, we delivered strong results on safety, reliability, and emissions. Financially, we delivered some of our highest earnings and operating cash flow in a decade. We earned returns higher than our peers and well above our cost of capital, and we distributed more cash to shareholders than all but five companies in the entire S&P 500.”
He further stated, “As we look ahead, we’ve built a long runway of value creation. We’re confident we’ll deliver on the plans we laid out to generate significantly more earnings and cash – not only to 2030, but well beyond. Our unique investment opportunities give us profitable growth well into the future, which underpins our financial strength and ability to return significant cash to shareholders.”
(Record production in Guyana, Permian help Exxon pocket US$7.3B earnings for Q4 2024)
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