Exxon Mobil’s Explosive Growth: Record-Breaking Fourth Quarter Driven by Surging Production in Permian Basin and Guyana
Exxon Mobil experienced robust earnings in the fourth quarter, attributable to increased production in the Permian Basin domestically and in Guyana. The energy giant, headquartered in Texas, reported a profit of $7.61 billion, equivalent to $1.72 per share, for the quarter ending December 31. This marked a slight decrease from the previous year when earnings were $7.63 billion, or $1.91 per share, during the same period. Adjusted for one-time costs and charges, the earnings for the quarter were $1.67 per share, surpassing the expectations of analysts surveyed by Zacks Investment Research, who had forecasted earnings of $1.55 per share.
Exxon Mobil disclosed that exclusive of one-time charges and benefits, earnings saw a $1.6 billion increase due to the remarkable growth in production levels in Guyana, South America, and the Permian Basin in America, alongside achieving structural cost efficiencies. Despite revenue totaling $83.43 billion, falling short of Wall Street’s projection of $87.12 billion, Exxon’s net production reached 4.6 million oil-equivalent barrels per day in the quarter, displaying a 20,000 barrel-per-day increase compared to the previous quarter.
Kathy Mikells, the Senior Vice President and Chief Financial Officer, highlighted in prepared statements that over half of the production in 2024 was derived from the Permian Basin, Guyana, and liquid natural gas. Looking ahead, the company foresees that over 60% of its output will stem from assets in the Permian Basin, Guyana, and liquid natural gas by 2030.
In a separate development, OPEC+ made the decision to delay the planned increase in oil production due to weaker demand and competition from non-member nations. The alliance, in an online meeting, agreed to postpone the production hikes initially set for January 1, with the gradual restoration of 2.2 million barrels per day now slated to commence on April 1, 2025. The production increases will unfold over an 18-month period leading up to October 2026.
Shares of Exxon Mobil Corp., headquartered in Spring, Texas, remained relatively stable ahead of the opening bell on Friday.
