February 3, 2025 [Reuters]- Exxon Mobil on Friday posted mixed fourth-quarter results that showed weakness in its refining and chemicals business, though it beat Wall Street’s profit estimate with higher oil and gas production.
Shares of the No. 1 U.S. oil producer declined 1.7% to $107.72 in afternoon trading, which was in line with a drop in the broader S&P 500 Energy Sector index.
Global oil demand lagged expectations in 2024, pushing down crude and fuel prices and impacting the industry. Exxon competitors Chevron and Shell’s earnings this week were also hit by the declining performance of the refining sector. Chevron posting a loss in its refining business for the first time since 2020.
Exxon’s adjusted profit for the fourth quarter was $7.39 billion or $1.67 per share, beating analyst estimates of $1.56, LSEG data showed.
Earnings from oil and gas production were $6.28 billion, up from $4.15 billion in the same quarter last year. Production, including from the Permian basin and lucrative projects in Guyana, reached 4.6 million barrels of oil equivalent per day, growing from 4.58 million in the third quarter.
During a conference call with analysts, Exxon CEO Darren Woods said the company aimed to be efficient with spending plans and would only pursue investments, including in the low carbon solutions business, if it was confident it could generate high returns.
Exxon laid out a five-year plan in December to increase project spending to boost oil and gas output by 18% by 2030.
“We’re not going to go ahead with them until we’re convinced that the value is there,” Woods said. He added that Exxon would evaluate opportunities in the Gulf of Mexico if U.S. President Donald Trump’s administration opens more areas for oil and gas exploration.
Chevron became one of the first companies to refer to the ocean basin as Gulf of America on Friday, following Trump’s executive order to rename it. Woods stuck to the name Gulf of Mexico during the call with analysts.
Total adjusted earnings for 2024 were $33.46 billion, down from $38.57 billion the year earlier.
