Exxon Mobil posted strong fourth quarter profits as the oil and gas company increased production in the Permian basin at home, and in Guyana.
The Texas company earned $7.61 billion, or $1.72 per share, for the three months ended Dec. 31. It earned $7.63 billion, or $1.91 per share, in the prior-year period.
Removing one time costs and charges, earnings were $1.67 per share.
The results topped Wall Street expectations, though Exxon does not adjust its reported results based on one-time events such as asset sales. Analysts polled by Zacks Investment Research anticipated earnings of $1.55 per share.
Exxon Mobil said Friday that excluding one-time charges and benefits, earnings rose $1.6 billion due to growth on record production in Guyana, in South America, and in America’s Permian basin, as well as structural cost savings.
Revenue totaled $83.43 billion, missing Wall Street’s estimate of $87.12 billion.
Exxon’s net production hit 4.6 million oil-equivalent barrels per day during the quarter, an increase of 20,000 oil-equivalent barrels per day compared with the previous quarter.
Kathy Mikells, senior vice president and chief financial officer, said in prepared remarks that more than 50% of production in 2024 came from the Permian basin, Guyana, and from liquid natural gas.
The company anticipates that more than 60% of its volumes will be generated from its assets in the Permian, Guyana, and liquid natural gas by 2030, she added.
In December OPEC+ delayed increasing oil production as it faces weaker than expected demand and competing production from non-allied countries. The alliance decided at an online meeting to postpone production increases that had been scheduled to take effect Jan. 1. The plan had been to start gradually restoring 2.2 million barrels per day over the course of 2025.
That process will now be pushed back to April 1, 2025 and production increases will gradually take place over 18 months until October 2026.
Shares of Exxon Mobil Corp., based in Spring, Texas, were essentially flat before the opening bell Friday.
