ExxonMobil quarterly profit hits 4-year high but misses estimates

• About 450,000 barrels per day of LNG production from Qatar remains substantially shut-in due to Iranian attacks, with an additional 150,000 bpd offline in the UAE
• Permian Basin production reached a record high of more than 1.8 million bpd, while a fifth platform in Guyana will add 250,000 bpd capacity in Q4
• The company returned $9.4 billion to shareholders through $4.3 billion in dividends and $5.1 billion in share repurchases, while reducing net debt by $7 billion

ExxonMobil Q2 2024 Earnings Summary

Key Financial Results:

ExxonMobil reported adjusted earnings of $14.7 billion ($3.52 per share) for Q2, marking a 67% increase from Q1 and the company's largest quarterly profit in four years. However, results missed Wall Street estimates due to what CFO Neil Hansen described as "extreme swings" in commodity prices and margins.

Production and Operations:

• Total production declined to 4.5 million barrels of oil equivalent per day (boepd), down from 4.6 million boepd in Q1
• Approximately 450,000 boepd remains offline in Qatar due to Iranian attacks on LNG facilities, with only 150,000 boepd of domestic gas production continuing
• UAE operations show 150,000 bpd offline, with 250,000 bpd produced but unable to be sold until shipping routes reopen
• Permian Basin production reached a record 1.8 million bpd, offsetting Middle East disruptions
• Guyana's fifth floating platform will add 250,000 bpd capacity in Q4

Market Context:

Benchmark Brent crude averaged $96.68 per barrel in Q2, up 23% from Q1, driven by U.S.-Israeli conflict and uncertainty around the Strait of Hormuz shipping disruptions following an April ceasefire. ExxonMobil stock is up 28% year-to-date, slightly trailing the S&P 500 energy index at 29%.

Capital Allocation:

The company paid $4.3 billion in dividends and repurchased $5.1 billion in shares while reducing net debt by $7 billion. Management indicated focus on further balance sheet improvement before increasing shareholder returns.

Competitors Chevron and Shell beat analyst estimates, while TotalEnergies met expectations.