Exxon Mobil Corporation (XOM) shares are trading higher this morning after the company delivered strong third-quarter results, exceeding analyst expectations on adjusted earnings per share. The energy giant’s impressive performance reflects a combination of increased production, effective cost reductions, and a commitment to shareholder returns through a dividend boost.
Total revenues and other income for the quarter reached $90.016 billion, narrowly missing the consensus estimate of $93.938 billion. However, the company’s net production saw a significant increase of 5% from the previous quarter, reaching 4,582 thousand oil-equivalent barrels per day, driven by higher volumes from its Pioneer assets.
Adjusted net profit for the third quarter came in at $8.61 billion, slightly lower than the $9.24 billion reported in the prior quarter. Nevertheless, adjusted earnings per share (EPS) of $1.92 surpassed the consensus estimate of $1.88, signaling strong profitability.
Exxon’s commitment to cost optimization is evident in its capital and exploration expenditures, which reached $7.16 billion in the third quarter. This brings the year-to-date 2024 expenditure to $20 billion, aligning with the company’s full-year guidance of $28 billion. Notably, ExxonMobil and HELLEniQ ENERGY successfully completed Phase 1 of their offshore Crete exploration project this month, gathering a substantial 7,789 km of seismic data.
Exxon’s dedication to cost efficiency is further demonstrated by its cumulative structural cost savings, which now total $11.3 billion compared to 2019. This includes an additional $1.6 billion in savings realized during the year and $0.6 billion during the third quarter alone. The company’s strategic cost management plan aims to achieve cumulative savings of $15 billion by the end of 2027 compared to 2019 levels.
In a move that underscores its commitment to shareholder value, Exxon raised its dividend per share by 4% to $0.99, up from $0.95 per share. This increased dividend, payable on December 10 to shareholders of record as of November 14, further enhances the company’s attractiveness to investors. Year-to-date, Exxon’s shareholder distributions have totaled $26.1 billion, consisting of $12.3 billion in dividends and $13.8 billion in share repurchases.
Darren Woods, Exxon’s Chairman and Chief Executive Officer, highlighted the company’s transformative journey and its impact on earnings power. He stated, “Our industry-leading results continue to demonstrate how our enterprise-wide transformation is improving the structural earnings power of the company. In the Upstream, we’ve doubled the profitability of the barrels we produce on a constant price basis. In Product Solutions, we’ve high-graded our refining footprint and increased high-value product sales.”
Investors seeking exposure to XOM can explore options like the EA Series Trust Strive U.S. Energy ETF (DRLL) and the SPDR Select Sector Fund – Energy Select Sector (XLE).
In pre-market trading on Friday, XOM shares are up 2.07% at $119.20.
