– credits Guyana, US assets for increased earnings
ExxonMobil Corporation on Friday announced its second-quarter earnings of US9.2 billion while adding that its Cash Flow from operating activities was US$10.6 billion and cash flow from operations excluding working capital movements was US$15.2 billion.
In addition, it stated that shareholder distributions of $9.5 billion included $4.3 billion of dividends and $5.2 billion of share repurchases, consistent with the company’s announced plans.
“We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company,” Chairman and Chief Executive Officer (CEO) Darren Woods stated.
He further stated, “We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger. We also achieved a record in high-value product sales, growing by 10% versus the first half of last year. We closed on our transformative merger with Pioneer in about half the time of similar deals. And we’re continuing to build businesses such as ProxximaTM, carbon materials, and virtually carbon-free hydrogen, with approximately 98% of CO2 removed, that will create value long into the future.”
However, some of the financial highlights include its year-to-date earnings were $17.5 billion versus $19.3 billion in the first half of 2023. The company also stated that it is on track to deliver cumulative savings totaling US$5 billion through the end of 2027 versus 2023.
In addition, the company stated that following the close of the Pioneer transaction, the Corporation increased the annual pace of share repurchases to US$20 billion through 2025. Further, the company stated its intention to repurchase over US$19 billion of shares in 2024.
The Corporation declared a third-quarter dividend of $0.95 per share, payable on September 10, 2024, to shareholders of record of Common Stock at the close of business on August 15, 2024.
The Corporation declared a third-quarter dividend of $0.95 per share, payable on September 10, 2024, to shareholders of record of Common Stock at the close of business on August 15, 2024.
Exxon, through its local subsidiary EEPGL, is the operator of the Stabroek Block and holds 45 per cent interest in the block. Hess Guyana Exploration Ltd holds 30 per cent interest, and CNOOC Petroleum Guyana Limited, a wholly-owned subsidiary of CNOOC Limited, holds the remaining 25 per cent interest.
The Liza Phases One and Two and Payara projects, all of which combined are producing over 600,000 barrels of oil per day, account for the three floating, production, storage and offloading (FPSO) vessels operating in Guyana’s Stabroek Block in waters offshore.
The current production figures will be further buttressed by the Yellowtail and Uaru developments, which are already underway and are anticipated to contribute 250,000 barrels of oil each following their respective start-ups.
An application for the sixth development, the Whiptail Project, was submitted by the Stabroek Block operator, ExxonMobil Guyana Limited (EMGL) and its co-venturers. This project is currently under review by the Government, and once approved, will see Guyana producing just over 1.2 million barrels of oil per day by 2027.
In addition to at least these six projects offshore Guyana that Exxon anticipates will be online by 2027, it is also eyeing the possibility of having 10 FPSOs operational by 2030. Production has already started on three projects, with the Liza Destiny and Unity and the Prosperity FPSO vessels in operation. The third project – the Payara development – targets an estimated resource base of about 600 million oil-equivalent barrels, and was at one point considered to be the largest single planned investment in the history of Guyana.
Meanwhile, the Yellowtail development, which will be Exxon’s fourth development in Guyana’s waters, has an anticipated start-up of 2025. The Uaru oil development, which will be the fifth one for the company offshore Guyana, is targeting between 38 and 63 development wells, including production, water injection, and gas re-injection wells.
Exxon had also previously made known that first oil from the Uaru development is anticipated by late 2026 or early 2027.
