ExxonMobil (XOM) delivered impressive third-quarter results for 2024, showcasing its strength in the energy sector. The oil and gas giant announced earnings of $8.6 billion, or $1.92 per share, a testament to its robust operational performance. As CEO Darren Woods put it, “We delivered one of our strongest third quarters in a decade.” With cash flow from operations hitting $17.6 billion, it’s clear ExxonMobil is not just surviving; it’s thriving in a challenging environment.
Don't Miss Our Christmas Offers:
- Discover the latest stocks recommended by top Wall Street analysts, all in one place with Analyst Top Stocks
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
XOM Reports Record Production and Strong Cash Flow
The star of the show was ExxonMobil’s production, which reached 3.2 million barrels per day, the highest in over 40 years. Moreover, year-to-date, ExxonMobil’s cash flow totals an impressive $42.8 billion. This has allowed the oil and gas giant to maintain a strong financial footing. The firm’s continued emphasis on cost management has led to $11.3 billion in structural cost savings since 2019.
Despite a dip in year-to-date earnings compared to the previous year—$26.1 billion versus $28.4 billion—this decrease can be attributed to lower refining margins and natural gas prices. This However, the strong production numbers and structural savings helped offset these challenges.
ExxonMobil’s EPS Performance Stands Out
The company reported an Earnings Per Share (EPS) of $1.92 for the third quarter. Although this was below the analysts’ consensus estimate of $2.29, ExxonMobil’s EPS reflects its ability to generate profits even when faced with headwinds. This is especially notable in the upstream segment, which achieved $18.9 billion in year-to-date earnings. The notable increase in production from Guyana and the Permian Basin were significant contributors to this success. As Woods stated, “Our strategy is delivering leading returns of 20% so far this year for our shareholders.”
XOM Shareholder Returns Shine Bright
Investors have much to cheer about as ExxonMobil returned a staggering $9.8 billion to shareholders in the third quarter. This figure includes $12.3 billion in dividends and $13.8 billion in share repurchases, demonstrating the company’s commitment to rewarding its investors. The board even approved a 4% increase in the quarterly dividend, bringing it to $0.99 per share—a mark of confidence in the company’s future.
ExxonMobil has successfully increased its dividend for 42 consecutive years, a feat that places it in rare company. “We lead the industry in total shareholder returns for the past 3, 5, and 10 years,” Woods noted, underlining the company’s consistent performance.
Is XOM Stock a Strong Buy?
Turning to Wall Street, ExxonMobil stock has a Moderate Buy consensus rating. Out of the 16 analysts covering the stock, 11 have a Buy recommendation and five have a Hold recommendation. Furthermore, at $137.13, the average XOM price target implies 17% upside potential. XOM’s stock has gained by nearly 14% over the past year. These analyst ratings are likely to change following XOM’s results today.
