In this edition, I am going to be a bit cheeky. This is a refresh of the first edition I wrote (sent to 0 people) ten weeks ago. I wanted to resend it as ExxonMobil is a major player in this space. In addition, this week, I am recovering from surgery, so I wanted to keep the content light but still provide some value.

As usual, we will go through ExxonMobil’s 24Q1 financial statement. Reading this lets you quickly visualise how Exxon makes money and its financial health. And you’ll learn the answer to the age-old question: what they do with all their money.

Today in a Snapshot

📈Financial Performance: U$8.2B in net profit with a total margin of 9.9%, down from 13.2% (U$11.4B) in 23Q1.
💵Cashflow: Strong cashflow position with U$2.1B added to the cash reserves.
⚖️Balance Sheet: 10% increase in current liabilities, with marginal change in overall liabilities.

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• Margin Decline: Margin decreased to 9.9% from 13.2% in 23Q1.

• Revenue Reduction: Net revenue fell by U$3.5B to U$83B.

• Profit Decrease: Net profit dropped by U$3.2B to U$8.2B.

• Factors Impacting Earnings: Decrease due to lower refining margins and natural gas prices. Additional influences include derivative impacts, tax and inventory adjustments, and divestments.

• Volume and Cost Management: Gains from increased production in Guyana and Beaumont refinery expansion, alongside structural cost savings, offset impacts from reduced base volumes and higher maintenance costs.

• Cost Savings: Achieved U$10.1B in structural cost savings since 2019; aims for a total of U$15B by 2027.

• Cash Flow and Shareholder Returns: Generated U$14.7B in operational cash flow and U$10.1B in free cash flow. Distributed U$6.8B to shareholders, including dividends and share repurchases.

• Share Repurchase Program: Temporarily paused due to administrative processes; set to increase to U$20B annually post-transaction.

ExxonMobil bolstered its cash reserves by U$2.1B to U$33.3B (+6%). In addition, they spent U$3.9B on dividends and U$3.0B on stock buybacks. This demonstrates a strong cashflow position.

ExxonMobil increased its current assets through positive cash flow activities. However, it appears they have doubled their notes and loans by U$4.1B. That being said, ExxonMobil has a strong L/A ratio of 0.43, which is on the lower end of its peers.

The equity walk shows a minor gain in total equity of U$0.5B, offsetting the net income by dividends and share repurchasing activities.

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Cheers,

Connor

All data can be found on the ExxonMobil Investors website.