By Kiana Wilburg
CEO, Guyana Energy Conference & Supply Chain Expo
ExxonMobil on Friday disclosed that it made a record-breaking US$9.2 billion in profits for the second quarter of 2024, reflecting an increase of US$1.3 billion over the same period last year.
Chairman and Chief Executive Officer (CEO) Darren Woods told shareholders during an earnings call that it is the company’s “second-best second-quarter results in the last 10 years.”
The chairman said the “record growth” in Guyana and the Permian Basin, as well as the acquisition of Pioneer Natural Resources, were the driving forces behind this stellar performance. Expounding on the company’s financial prowess was Kathy Mikells, Senior Vice President, and Chief Financial Officer (CFO).
Mikells said, “Earnings of US$9.2 billion in the second quarter were industry leading and US$1 billion higher than the last quarter, driven by our advantaged investments…”
The CFO also noted that ExxonMobil distributed US$4.3 billion in dividends in the quarter, making it the second highest dividend payer in the S&P 500. She also noted that ExxonMobil repurchased US$5.2 billion of shares.
Turning to asset highlights, she recalled that in Guyana’s Stabroek Block, ExxonMobil started 2019 with zero production. It has now grown to an average of 633,000 barrels per day gross in the second quarter.
She also told shareholders that the company applied to Guyana’s Environmental Protection Agency (EPA) for a seventh development in the Stabroek Block called Hammerhead. While ExxonMobil and its partners, Hess and CNOOC, continue to evaluate and define the scope of Hammerhead, the current expectation of production capacity is between 120,000 to 180,000 barrels per day.
She noted that Hammerhead is expected to start up in 2029, pending Guyanese government approval.
As it relates to the acquisition of Pioneer Natural Resources, Mikells recalled that it was on May 3, 2024, that ExxonMobil bought Pioneer for US$63 billion. This deal transformed ExxonMobil into the largest producer in the Permian Basin and the entire U.S.
Mikells said the merger of ExxonMobil and Pioneer created the largest, high-return unconventional resource development potential in the world.
“Closing the Pioneer merger was a huge accomplishment and added more than US$500 million to our earnings in the quarter. Pioneer also reported record production, helping to bring our quarterly production from advantaged Upstream assets to record highs of 2.3 million oil equivalent barrels per day, a 38% increase versus last quarter.”
Looking ahead, the CFO expressed confidence that ExxonMobil’s actions will enable its base business to create value long into the future.
She concluded, “…Our strategy is proven. Our world-class team is delivering execution that’s second to none. And the value we’re creating for shareholders continues to grow.”