Exxon beats earnings expectations but lower oil prices weigh on profits

An Exxon Mobil gas station in Washington, DC, US, on Tuesday, Nov. 28, 203.

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Exxon Mobil reported quarterly earnings that beat Wall Street’s expectations, but the company’s profit declined significantly from same period the year prior as oil prices weakened.

Exxon declared a dividend for the first quarter of 95 cents per share payable on March 11. The company returned $32.4 billion to shareholders in 2023 through $14.9 billion in dividends and $17.4 billion in share buybacks.

Exxon’s stock rose about 2% in early trading.

Here’s what Exxon reported for the fourth quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG, formerly known as Refinitiv:

Earnings per share: $2.48 adjusted vs. $2.21 expected
Revenue: $84.3 billion, compared to $85.2 billion

Exxon reported net income of $7.63 billion, or $1.91 per share, in the final three months of 2023, down 40% from the $12.75 billion, or $3.09 per share, profit reported in the same quarter in 2022.

Profits were hurt by a $2 billion impairment charge in California from regulatory issues that prevented production and distribution from coming back on line. Excluding those charges, Exxon earned $2.48 per share, beating Wall Street’s expectations of $2.21 per share.

Crude oil prices were volatile in 2023, with West Texas Intermediate and Brent falling more than 10% for the year on a weakening Chinese economy and record oil production in the U.S.

Exxon’s stock reached a 2023 closing high of $120.20 on Sept. 27, when oil prices hit their peak but the company’s shares finished out the year 16% lower from that high as crude pulled back.

The oil major agreed to buy shale rival Pioneer Natural Resources in October for about $60 billion in an all-stock transaction. The deal is expected to close in the first half of this year.