ExxonMobil Q2 Results: Permian Dominance Drives Production Growth, Plans $19 Billion in Stock Buybacks in Fiscal 2024 – Exxon Mobil (NYSE:XOM)

Exxon Mobil Corporation XOM The company’s shares are trading lower after the company released its results for the second quarter of its fiscal year 2024.

Total revenues and other income amounted to $93.060 billion, beating the consensus of $90.987 billion.

Net production was 4,358 thousand barrels of oil equivalent per day, up 15% from the previous quarter, driven by increased volumes from Pioneer in Guyana and the historic Permian assets.

Adjusted net income was $9.24 billion, compared with $8.22 billion in the prior-year quarter. Adjusted earnings per share were $2.14, beating the consensus estimate of $2.01.

The company’s capital and exploration spending was $7.04 billion in the second quarter.

Related: Exxon Mobil shares fall as rising oil prices, falling gas prices lead to mixed Q2 earnings outlook

The company achieved cumulative structural cost savings of $10.7 billion compared to 2019, with an additional $0.6 billion during the quarter. The company plans to achieve cumulative savings of $5 billion by the end of 2027 compared to 2023.

Darren Woods, president and CEO, said, “We achieved record quarterly production from our low-cost Permian and Guyana assets, with the highest oil production since the Exxon/Mobil merger. We also achieved record sales of high-value products, up 10% compared to the first half of last year.”

“We closed our transformational merger with Pioneer in half the time of similar transactions. And we continue to build businesses like Proxxima, carbon materials, and virtually emission-free hydrogen, with about 98% CO2 removed, that will create value long into the future.”

Related: Big Oil, Big Bet: Indonesia’s Pertamina and Exxon Aim to Capture Gigatons of CO2

Dividend:Exxon declared a second-quarter dividend of $0.95 per share, payable on September 10 to shareholders of record as of August 15.

Total dividends paid by the company to shareholders since the beginning of the year were $16.3 billion, consisting of $8.1 billion in dividends and $8.3 billion in share repurchases.

Following the Pioneer transaction, the annual pace of share repurchases increased to $20 billion by 2025, and it plans to repurchase more than $19 billion of shares in 2024, assuming favorable market conditions.

Outlook for fiscal year 2024:The company is forecasting full-year capital and exploration spending of approximately $28 billion, including $25 billion forecast by ExxonMobil and $3 billion for eight months of the Pioneer program.

Last month, the energy giant finalized a deal to sell its Malaysian oil and gas assets to a state-owned energy company. Petronaswhich meant withdrawing from the domestic mining sector, where it once held a dominant position.

Investors can gain exposure to XOM through Select energy sector SPDR Fund XLE AND IShares US Energy ETF Me and I.

Also Read: Exxon Mobil Arbitration Throws Wrench into Chevron-Hess Merger Timeline: Report

Reduction: XOM shares fell 0.20% to $116.72 in pre-market trading, last seen on Friday.

Reservation: This content was prepared in part using AI tools and was reviewed and published by Benzinga editors.

Photo: Del Henderson Jr. via Shutterstock

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