Exxon Mobil, which has posted earnings of $8.22 billion in Q1 2014 against $11.43 billion a year ago, said it reduced operated methane emissions intensity by more than 60 percent since 2016.
Exxon Mobil is also making investment in technology to extend its reach to new high-growth markets including advanced recycling, Proxxima, carbon materials and direct air capture of carbon dioxide.
Interestingly, this was the two news statements from Exxon regarding its achievements or progress in the renewable energy business. Exxon Mobil did not reveal its investment or other achievements in the renewable energy business during the first-quarter.
ExxonMobil’s financial commitment was announced last December. The corporate plan for the next 5 years is to maintain its capital expenditures at $20-25 billion per year while growing investments up to $17 billion total to reduce carbon emissions.
Exxon Mobil Q1 earnings
Upstream $5.7 billion
Energy Products $1.4 billion
Chemical Products $785 million
Specialty Products $761 million
Earnings from oil and gas production dropped 14 percent on lower natural gas prices and refining dipped 67 percent on weaker fuel margins, mark-to-market derivatives, and higher maintenance costs.
Its chemicals business, however, was a standout, with earnings more than doubling on lower input costs and higher margins. Chemical Products earnings were $785 million, an increase of $414 million compared to the same quarter last year. Despite continued bottom-of-cycle conditions, results improved with higher margins due to lower North American feed costs and higher margins from performance chemicals more than offsetting the decline in industry margins for polyethylene and polypropylene.
Global oil prices were largely flat against a year ago while the company received a price for its natural gas that was 32 percent less than a year ago.
Oil and gas results were boosted by lower costs and higher volumes from Exxon’s Guyana operations, where the latest production vessel hit full production earlier than expected.
Capital and exploration expenditures were $5.8 billion, consistent with the company’s full-year guidance of $23 billion to $25 billion. This compares with Exxon Mobil’s Capex of $6,380 million in Q1 2023 and $7,757 million in Q4 2023.
Exxon’s capital spending last quarter was the lowest in seven quarters and its streamlining of operations expanded what it calls structural cost savings by $400 million.
BIG PLANS
Exxon Mobil is in the process of closing a $60 billion deal for top shale oil producer Pioneer Natural Resources. Exxon’s acquisition of Pioneer is expected to wrap up in coming weeks.
The all-stock deal for Pioneer would make Exxon the largest oil and gas producer in the top U.S. shale field, doubling output there to more than 1.3 million barrels of oil equivalent per day. Exxon forecasts the combination will allow it to reach 2 million barrels per day in 2027, Reuters news report said.
Exxon is in a dispute with Chevron and Hess over assets in Guyana, home to the biggest oil finds in the past two decades. In face of Chevron’s $53 billion offer for Hess, Exxon has claimed preemption rights over Hess’ Guyana assets. That claim is being considered by an international arbitration panel. Hess’ 30 percent stake in the Guyana joint venture is the prize in Chevron’s proposed takeover.
Baburajan Kizhakedath