I thought we would look at ExxonMobil again, especially since we only recently reviewed the 24Q1 statement about three weeks ago. As usual, we will take their financial statement and produce some visuals to make it easier to understand how they performed in 24Q2.

Today in a Snapshot

📈Financial Performance: U$9.6B in net profit with a total margin of 10.3%, up from 9.8% (U$8.1B) in 23Q2.
💵Cashflow: Dipped into cash reserves for U$6.9B.
⚖️Balance Sheet: Pioneer acquisition added U$66B of equity to the balance sheet.

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ExxonMobil produced its second most profitable Q2 in a decade. With a net profit of U$9.6B and an overall net margin of 10.3%, ExxonMobil has shown a substantial increase from 23Q2 at U$8.1B and a 9.8% margin.

The other major news is the successful acquisition of Pioneer Natural Resources, which fits into the Upstream segment. Due to the acquisition of Pioneer, ExxonMobil now has the largest, high-return unconventional resource development potential in the world.

Upstream: This segment had a few compounding factors contributing to its success. Record high Guyana and heritage Permian production (~9% production increase Y/Y), structural cost savings, and Pioneer Natural Resources' successful acquisition.

Energy Products: Despite the higher revenue, this segment had significantly low refining margins due to increased supply. However, this was partially offset by structural cost savings.

Chemical Products: This segment benefited from higher demand and lower turnaround impacts.

Specialty Products: There’s not much to add here; things went well this quarter.

ExxonMobil didn’t publish a Q2 cashflow statement. They published a H1, and I have interpolated the values from the Q1 results. However, the notable item is the U$6.9B of cash reserves used, reducing the stockpile to U$26.5B (-21%).

The acquisition of Pioneer contributed ~U$88B to Property, Plant & Equipment. With the addition of various liabilities and other assets, a net of U$63B in equity was added to the ExxonMobil balance sheet. This is best seen below in the equity walk, where U$63B in equity was issued due to the acquisition.

With this acquisition, they dropped their debt-to-equity ratio from 0.77 in 24Q1 to 0.66 in 24Q2. This is significantly lower than their peers, with the exception of Aramco and PetroChina. (See the 24Q1 roundup for a comparison of the 24Q1 numbers).

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Cheers,

Connor

All data can be found on the ExxonMobil Investors website.