Exxon Mobil stock surges 336% in cash with record profit, fueled by ‘benign market’

Exxon Mobil (XOM) posted mixed fourth-quarter financial results on Tuesday, beating revenue estimates but missing revenue views. Buoyed by a “favorable market,” the energy giant reported record profits in 2022 and its highest annual revenue since 2013. ExxonMobil shares fell on Tuesday.


XOM Shares: Earnings

Assessments: Analysts forecast a 60% rise to $3.29 per share, a 15% advance on sales to $97.35 billion. For the full year, Wall Street expects EPS to rise 158% to $13.92. That would top the previous record of $8.47 in 2008. Revenue forecasts rose 50% to $425.94 billion.

revenue: Exxon Mobil EPS rose 66% to $3.40, while revenue rose 12% to $95.43. In 2022, Exxon Mobil’s earnings rose 160% to $14.06 per share. Sales rose 45% to $413.68 billion.

The energy giant’s free cash flow will come in at $62.1 billion in 2022, an increase of nearly $23 billion. ExxonMobil returned a total of $29.8 billion to shareholders through dividends and buybacks. The company also said it will return up to $35 billion to shareholders by 2023.

Exxon Mobil CEO Darren Woods said in a statement on Tuesday that the company “clearly benefited from a favorable market” in 2022.

“Our plan for 2023 calls for further progress in our strategic objectives, which include leading the industry in safety, mobility and financial performance,” said Woods.

Five Year Plan

Exxon Mobil had already announced A five-year corporate plan in early DecemberIt says it expects to maintain its annual capital expenditures from $20 billion to $25 billion through 2027. The oil giant plans to increase its share buyback program to $50 billion by 2024.

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Investors also keep an eye on the company’s cash balance. After earning $30.4 billion at the end of Q3, Exxon posted $29.7 billion at the end of Q4, up nearly 350% from the $6.8 billion reported earlier in the year.

In addition to stabilizing its annual capital expenditures through 2027, Exxon Mobil plans to increase its carbon emissions reduction investments to about $17 billion over the same period. This represents an increase of almost 15% from the current level. Exxon’s capital investments in 2023 will be in the range of $23 billion – $25 billion.

The company predicts that revenue and cash flow will double by 2027 compared to 2019. Full-year earnings in 2019 were $2.25 per share. Cash flow from operations in 2019 was $29.7 billion.

‘Positive market’ for oil and gas in 2022

In 2022, as the US economy recovered from the Covid pandemic, Russia invaded Ukraine in February, driving up oil, gasoline and natural gas prices. It operated Exxon Mobil Chevron (CVX) and other energy stocks to the Chairman of the Stock Exchange, with Companies are making record profits.

Exxon Mobil has averaged an EPS growth rate of 225% over the past three quarters. In the third quarter, ExxonMobil and Chevron Consolidated net income is reported More than $30 billion in the third quarter. Irving, Texas-based ExxonMobil reported its strongest quarterly profit in its 152-year history.

Friday, Chevron Revenue missed views While earnings topped estimates. It followed an earlier announcement by buying back $75 billion in shares and raising its dividend.

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Through 2022, President Joe Biden Criticized Exxon MobilChevron and many other large producers chose to focus on returning cash to shareholders instead of spending to increase production.

Late Friday, White House Assistant Press Secretary Abdullah Hassan tweeted, “Companies clearly have everything they need — record profits and thousands of approved permits — to ramp up production.”

“It was their own decision to keep plowing windfall profits into the pockets of the authorities,” Hasan wrote.

Oil market

Ministers from the Organization of the Petroleum Exporting Countries and its allies, including Russia (OPEC+), will meet on Wednesday. A Joint Ministerial Monitoring Committee reviews the oil market but has no power to change production quotas. However, ministers are expected to discuss possible policy changes this week.

U.S. crude futures were down about 1% on Tuesday at $77.06 a barrel. Last week, US crude regained support above its 50-day moving average line, holding above that line for the first time since mid-November earlier last week.

Following this Optimistic oil demand forecasts from both the International Energy Agency (IEA) and OPEC.

The IEA estimates that the recent easing of Covid restrictions in China will push global oil demand to its peak in 2023. The news sent US benchmark oil and UK benchmark Brent crude to their highest levels since early December. The Paris, France-based IEA forecasts that China’s reopening will boost global oil demand to a record 101.7 million barrels (bpd) in 2023, up 1.9 million bpd from 2022.

Exxon Mobil shares

Exxon Mobil shares fell 0.7% on Tuesday Prior trading. On Monday, the stock fell 1.7% to 113.61. The stock has formed a flat base and is 1% higher at 114.76 Point to buy. Stocks tracked the S&P 500 for most of January.

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ExxonMobil stock is ranked 3rd Oil and Gas-Integrated Industry Group. There are 97 in XOM shares Collaborative assessment In 99. The stock has a relative strength rating of 90 IBD Stock Checkout A measure of stock price movement. EPS rating is 80.

Follow Kit Norton on Twitter @kidnorton For added security.

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