ExxonMobil to grow cash 336% in 2022, fueled by ‘favorable market’

ExxonMobil to grow cash 336% in 2022, fueled by ‘favorable market’

exxon mobil (XOM) released mixed fourth-quarter financial results on Tuesday, beating earnings expectations but lacking earnings guidance. Fueled by a ‘lucrative market’, the energy giant posted record profits in 2022 and reported its highest annual revenue since 2013.


XOM Stocks: Earnings

Estimate: Analysts forecast earnings growth of 60% to $3.29 per share and target sales growth of 15% to $97.35 billion. For the full year, Wall Street projected his EPS to rise 158% to $13.92. This would surpass the all-time high of $8.47 set in 2008. Our revenue forecast is $425.94 billion, up 50%.

Earnings: Exxon Mobil reports EPS growth of 66% to $3.40 and revenue growth of 12% to $95.43. In 2022, ExxonMobil’s earnings surged 160% to $14.06 per share. Sales increased 45% to $413.68 billion.

Free cash flow for the energy giant was $62.1 billion in 2022, up nearly $23 billion. Exxon Mobil returned a total of $29.8 billion to shareholders through dividends and buybacks. The company added that it will return up to $35 billion to shareholders in 2023.

ExxonMobil Chief Executive Darren Woods said in a statement Tuesday that the company “clearly benefited from favorable markets” in 2022.

“Our 2023 plan requires us to further advance our strategic goals, including leading the industry in safety, operations and financial performance,” said Woods.

5 year plan

ExxonMobil already Medium-term management plan in early December, reports that it plans to maintain annual capital spending at $20 billion to $25 billion through 2027. The oil giant also plans to increase its share buyback program to $50 billion by 2024.

Investors will also pay attention to the company’s cash balance. After posting $30.4 billion at the end of the third quarter, Exxon reported $29.7 billion at the end of the fourth quarter, almost 350% above his $6.8 billion reported earlier in the year.

ExxonMobil plans to maintain its annual capital spending through 2027, while also increasing its investment in reducing carbon emissions to approximately $17 billion over the same period. This represents a nearly 15% increase from current levels. Exxon’s capital spending in 2023 will range from $23 billion to $25 billion.

The company expects to double its revenue and cash flow by 2027 compared to 2019. Full-year 2019 earnings were $2.25 per share. Operating cash flow in 2019 was $29.7 billion.

A ‘lucrative market’ for oil and gas in 2022

In 2022, as the U.S. economy recovers from the coronavirus pandemic, Russia invades Ukraine in February, sending oil, gasoline, and natural gas prices skyrocketing.ExxonMobil and chevron (CVX) and other energy stocks to the top of the stock market, Companies with record profits.

ExxonMobil has delivered average EPS growth of 225% over the past three quarters.In the third quarter, ExxonMobil and Chevron Reported combined net income We exceeded $30 billion in the third quarter. Irving, Texas-based ExxonMobil reported the best quarterly profit in its 152-year history.

Friday, Chevron missed earnings prospects Exceeding earnings estimates. This follows earlier announcements that the company will begin a massive $75 billion share buyback and raise its dividend.

Through 2022, President Joe Biden Criticizing ExxonMobilChevron, and several other large producers have chosen to focus on returning money to shareholders rather than spending to increase production.

Later on Friday, Assistant White House Press Secretary Abdullah Hassan said, “Companies clearly have everything they need to ramp up production.

“The only thing that gets in the way is their own decision to keep pushing casual profits into executives’ pockets,” Hassan wrote.

oil market

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

US crude futures fell about 1% to $77.06 a barrel on Tuesday. Last week, US oil prices regained support after he broke above the 50-day moving average for the first time since mid-November.

followed this Optimistic Oil Demand Forecast 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 a record high in 2023. The news pushed US benchmark oil and UK benchmark Brent crude to their highest levels since early December. China’s economic reopening will push global oil demand to a record high of 101.7 million barrels per day (bpd) in 2023, and 1.9 million bpd from 2022, according to forecasts by the Paris, France-based IEA. projected to increase.

exxon mobil stock

Exxon Mobil shares fell 1.8% early on Tuesday before rising 1.9% to 115.70. market tradingShares fell 1.7% to 113.61 on Monday. The stock has formed a flat base, up about 1% from 114.76. point of purchaseStocks have followed the S&P 500 for most of January.

ExxonMobil Stock Ranks No. 3 Integrated Oil & Gas Industry GroupXOM share is 97 comprehensive evaluation Out of 99 points. The stock has a relative strength rating of 90. IBD stock checkup measure stock price movements. The EPS rating is 80.

Follow Kit Norton on Twitter @Kit Norton for more coverage.

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