Exxon Mobil Corporation today announced robust financial results for the second quarter of 2024, with earnings reaching $9.2 billion, or $2.14 per share assuming dilution. The company’s impressive performance was driven by record production levels in Guyana and the Permian Basin, the swift and successful integration of Pioneer Natural Resources, and significant progress in new business ventures focused on sustainability and low-carbon solutions.
ExxonMobil highlighted the successful and swift integration of Pioneer Natural Resources, which closed five months faster than similar transactions. This merger fundamentally transformed ExxonMobil’s Upstream portfolio and contributed $0.5 billion to earnings in the first two months post-closing. The integration and synergy benefits from the Pioneer acquisition are exceeding expectations, and the merger has created the largest high-return unconventional resource development potential in the world. The Pioneer operations have bolstered ExxonMobil’s production capabilities, contributing significantly to the company’s record production achievements in the second quarter of 2024.
Key Points about the Pioneer Acquisition from the 2Q24 Earnings Presentation:
- Strategic Transformation:
- The Pioneer acquisition has fundamentally transformed the upstream portfolio, adding industry-leading, undeveloped, high-quality unconventional inventory.
- This acquisition has increased the portfolio’s liquid mix to the highest level since the Exxon and Mobil merger .
- Operational Integration:
- The integration of Pioneer’s operations has exceeded expectations, progressing approximately 50% faster than similar deals in recent years.
- Advanced cube development technology is being leveraged to drive recovery and efficiency, integrating heritage Pioneer production with Gulf Coast refining .
- Earnings Contribution:
- Pioneer operations contributed $0.5 billion to consolidated earnings post-close (May-June), excluding $0.2 billion of one-time transaction-related items.
- Pioneer’s production for 2Q24 reflects contributions post-close, accounting for 522 Koebd to ExxonMobil’s full quarter production from two months of operations .
- Production and Growth:
- Record production levels have been achieved, with heritage Permian production at 680 Koebd and total Permian production, including Pioneer assets, at 1.2 Moebd.
- The acquisition is expected to boost low-cost-of-supply production, earnings, and cash flow significantly .
- Cost Efficiencies:
- The integration and synergy execution are ahead of plan, capturing cost efficiencies faster than expected .
- Future Outlook:
- Full year 2024 outlook includes total capex of ~$28 billion, including eight months from Pioneer.
- Total Permian production for 2024, including Pioneer assets, is expected to be approximately 1.2 Moebd .
These highlights emphasize the significant impact of the Pioneer acquisition on production capabilities, financial performance, and strategic positioning within the company’s broader operational framework.
