Exxon Mobil Corporation Financial Analysis: Q4 2024 Report Insights

Key Financial Snapshot

• Total Revenues: $339.25 billion (2024)
• Net Income: $36.01 billion (attributable to ExxonMobil)
• Total Assets: $376.32 billion
• Total Liabilities: $41.78 billion
• Goodwill from Acquisitions: $1 billion

Recommendation:

Hold - While Exxon Mobil's financial performance shows strong revenues and net income, the significant liabilities and market uncertainties warrant a cautious approach.

Revenue Analysis

Exxon Mobil Corporation’s revenue for Q4 2024 reached $339.25 billion, a slight increase from $334.70 billion in the previous year. The breakdown reveals a robust contribution from various segments:

• Upstream Revenues: $147.14 billion
• Energy Products: $225.58 billion
• Chemical Products: $117.82 billion

This diversified revenue stream indicates that the company is effectively leveraging its operational capabilities across different sectors, particularly in energy production.

Year-over-Year Comparison:

• 2023: $334.70 billion
• 2022: $398.68 billion

The decrease from 2022 to 2023 suggests a need to analyze market conditions, including fluctuating oil prices and geopolitical factors affecting demand.

Profitability Metrics

The net income attributable to ExxonMobil for Q4 2024 was $36.01 billion, reflecting a strong performance despite previous year fluctuations. The effective tax rate remained stable at 33%, showcasing efficient tax management.

Segment Contributions:

• The upstream segment continues to be the most profitable, contributing significantly to the overall net income, followed closely by energy products. The segment analysis provides insights into operational efficiency and market positioning.

Asset and Liability Overview

Exxon Mobil reported total assets of $376.32 billion, with total liabilities at $41.78 billion. The net assets position reflects a solid financial foundation, enabling the company to invest in growth opportunities.

Deferred Tax Liabilities:

• Total Deferred Tax Liabilities: $48.99 billion
• Total Deferred Tax Assets: $16.40 billion
• Net Deferred Tax Liabilities: $35.11 billion

This indicates a significant future tax obligation that could impact cash flow and profitability if not managed effectively.

Acquisition Activities

Pioneer Natural Resources:

• Acquired for $63 billion, including 545 million shares of ExxonMobil common stock and $5 billion in assumed debt.
• Goodwill from the acquisition: $1 billion.

Denbury Inc.:

• Acquired for $5.1 billion, with 46 million shares of ExxonMobil stock and cash payments of $0.3 billion.

Financial Impact:

• Pioneer contributed $17 billion in revenues for Q4 2024, translating to $1.7 billion in net income, highlighting the acquisition's positive impact on overall performance.

Future Outlook and Market Considerations

Exxon Mobil's strategic investments in acquisitions and its diverse revenue base position the company well in a volatile market. However, the increasing deferred tax liabilities and fluctuating commodity prices are potential risks.

Conclusion

The analysis indicates that while Exxon Mobil's financial health is robust, the complexities of market dynamics and tax obligations warrant a Hold recommendation. Investors should monitor the company's performance closely as it navigates through its acquisition integration and potential market fluctuations in the next quarters.