ExxonMobil said net production in 2024 was the highest in ten years at 4.3 million oil-equivalent barrels per day (b/d), a 16% increase (595,000 oil-equivalent b/d) from 2023.
This forms part of Exxon’s 2024 earnings report, which says the increase was driven by Guyana and the Permian. ExxonMobil reported full-year earnings of US$25.4 billion in its upstream segment, US$4.1 billion higher than in 2023.
Identified items for the year improved earnings by US$0.2 billion versus the unfavorable US$2.3 billion impact in 2023, mainly driven by the impairment of the now-divested Santa Ynez Unit assets in California due to regulatory challenges restarting production and distribution.
Excluding identified items, earnings increased by US$1.6 billion due to advantaged asset volume growth from record Guyana and Permian production, as well as structural cost savings.
These increases were partly offset by lower natural gas prices, higher depreciation expense, and lower base volumes from divestments of non-strategic assets and entitlements.
Specific to the fourth quarter, upstream earnings were US$6.5 billion, an increase of US$340 million from the third quarter. This was also driven by record production in Guyana and the Permian basin, stronger natural gas prices, and favorable tax impacts, partly offset by lower crude realizations.
Net production in the fourth quarter was 4.6 million oil-equivalent b/d, an increase of 20,000 oil-equivalent b/d versus the prior quarter.
Guyana’s contribution to the increase was mainly due to the ramp-up and optimization of the Payara project. Production began in November 2023, ramped up to an initial design rate of 220,000 b/d in January, and was later optimized to 250,000 b/d. The South American nation continues to take a prominent role in Exxon’s portfolio.
Corporation-wide, Exxon’s full-year earnings were US$33.7 billion in 2024, or US$7.78 per share assuming dilution. In the fourth quarter alone, earnings were US$7.6 billion, or US$1.72 per share, assuming dilution. Cash flow from operating activities was US$12.2 billion and free cash flow was US$8 billion.
Capital and exploration expenditures, and cash capital expenditures were a total of US$7.5 billion in the fourth quarter, bringing the full-year expenditures to US$27.6 billion and US$25.6 billion, respectively – both in line with full-year guidance.
ExxonMobil’s Chairman and Chief Executive Officer, Darren Woods stated that the company delivered unmatched value in 2024. “The proof is in our performance. Operationally, we delivered strong results on safety, reliability, and emissions.”
He added, “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.”
Woods is confident Exxon will continue to deliver on the plans it laid out to generate more earnings and cash to 2030 and beyond.
