Exxon Mobil Corporation XOM and its partners, Hess Corporation HES and China’s CNOOC, reported a combined profit of $10.4 billion from their oil operations in Guyana in 2024, marking a 64% year-on-year jump, according to ExxonMobil’s latest operational update. The surge was driven by expanded production capacity and favorable fiscal terms that continue to make Guyana one of the most lucrative oil plays globally.
XOM's Shares Hit $4.7B, Production Tops 668,000 bpd
ExxonMobil alone booked $4.7 billion in adjusted earnings from its Guyana operations last year, contributing substantially to its global earnings of $33.46 billion. Meanwhile, Hess posted $3.1 billion in profits from the region, up from $1.9 billion in 2023, while CNOOC earned $2.5 billion, rising from $1.5 billion.
Oil output from the XOM-led consortium climbed 3% year over year to an average 631,000 barrels per day (bpd) in the first quarter of 2024. That figure reached 652,000 bpd by the fourth quarter and stood at 668,000 bpd last week, as reported by ExxonMobil. The boost was supported by facility upgrades, including enhancements at its floating production, storage, and offloading (FPSO) units.
Output Set to Hit 1.7M bpd by 2030 Amid Rising Investment
With a fourth FPSO arriving in Guyanese waters in February, output is on track to exceed 900,000 bpd in the near term. ExxonMobil has projected that production capacity could climb to 1.2 million bpd by 2027 and further expand to 1.7 million bpd by the end of the decade.
The group's total expenses in Guyana also rose 42% to $4.9 billion in 2024 as it ramps up its development activity. Even with rising costs, the consortium delivered a pre-tax profit of $12.8 billion from its Guyana operations.
XOM’s Next Target: Natural Gas Development
While crude oil remains the focus, ExxonMobil and its partners are now turning their attention to natural gas development. Company executives confirmed earlier this year that work is underway to assess reserves and chart a development and supply strategy to meet Guyana’s rising domestic energy needs.
Guyana Tightens Grip on Basin as Rival License Gets Scrapped
The consortium controls all current oil production in the country, and its dominance appears set to continue. The Guyana government recently canceled a license awarded to a rival consortium led by Canada’s Frontera Energy, further consolidating ExxonMobil’s lead in what is considered one of the world’s last major untapped offshore oil basins.
As Guyana continues to emerge as a critical pillar in ExxonMobil’s upstream portfolio, the region’s rapid development underscores the company's broader growth strategy in low-cost, high-margin oil basins.
XOM’s Zacks Rank & Key Picks
XOM currently carries a Zack Rank #4 (Sell).
Investors interested in the energy sector may look at some better-ranked stocks like Subsea 7 S.A. SUBCY and RPC Inc. RES. Subsea 7 presently sports a Zacks Rank #1 (Strong Buy), while RPC carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Subsea 7 helps build underwater oil and gas fields. It is a top player in the Oil and Gas Equipment and Services market, which is expected to grow as oil and gas production moves further offshore.
The Zacks Consensus Estimate for SUBCY’s 2025 EPS is pegged at $1.31. The company has a Value Score of A.
RPC generates strong and stable revenues through a diverse range of oilfield services, including pressure pumping, coiled tubing and rental tools. The company is strongly committed to returning value to shareholders through consistent dividends and share buybacks. RPC’s current dividend yield is higher than that of the composite stocks in the industry. Its new Tier IV dual-fuel fleet has boosted profits, with plans to further expand high-efficiency equipment to enhance operational capabilities.
The Zacks Consensus Estimate for RES’ 2025 EPS is pegged at 38 cents. The company has a Value Score of A.
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Exxon Mobil Corporation (XOM): Free Stock Analysis Report Hess Corporation (HES): Free Stock Analysis Report RPC, Inc. (RES): Free Stock Analysis Report Subsea 7 SA (SUBCY): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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