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ExxonMobil Vs. Chevron: Which Big Oil Stock Had a Better Q4?
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ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) , two of the world’s largest oil/energy companies, delivered contrasting earnings performances in the fourth quarter. ExxonMobil reported Q4 adjusted earnings per share of $1.67, surpassing the Zacks Consensus Estimate of $1.55. However, total revenues dipped more than 1% year over year to $83.4 billion.
ExxonMobil’s production grew 20% year over year to 4,602 thousand oil-equivalent barrels per day (MBOE/d), driven by high-margin projects in the Permian Basin and Guyana. The company’s upstream segment saw a slight increase, contributing $6.3 billion in adjusted earnings, but refining and chemical divisions took significant hits. XOM was also impacted by asset impairments worth $608 million, including a Nigerian joint venture sale.
Chevron, on the other hand, posted a weaker-than-expected Q4 performance. While net income rose to $3.2 billion from $2.3 billion a year earlier, adjusted earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.19. Revenues climbed 10.7% year over year to $52.2 billion. A key setback was Chevron’s downstream segment, which reported a $248 million loss — its first refining loss in four years — due to weak margins on refined products. Upstream earnings were stronger, rising to $4.3 billion, but overall production remained essentially flat at 3,350 MBOE/d.
Despite ExxonMobil’s stronger performance, both stocks faced downward pressure. ExxonMobil shares dipped more than 2%, while Chevron’s stock fell 4.5%, reflecting broader market concerns over refining margins and oil price volatility.
Production Growth and Strategic Investments
Both ExxonMobil and Chevron made significant strides in production, yet their strategies diverged. ExxonMobil’s output rose, with more than 50% of 2024 production stemming from the Permian Basin, Guyana, and LNG. By 2030, it expects over 60% of its total production to come from these high-margin areas.
Chevron’s Permian Basin output grew 14% year over year to a record 992,000 oil-equivalent barrels per day (BOE/d) edging closer to its 1 million BOE/d target. However, its total production remained relatively unchanged. The company is prioritizing long-term growth through its $53 billion acquisition of Hess (HES - Free Report) , which grants it a stake in Guyana’s lucrative offshore fields. However, a legal dispute with ExxonMobil over Hess’s Guyana holdings could delay or derail the deal, adding uncertainty to Chevron’s growth strategy.
Shareholder Returns and Capital Allocation
ExxonMobil rewarded investors with record shareholder returns, distributing $36 billion in 2024 through dividends and buybacks. It generated $36.2 billion in free cash flow, enabling these payouts without increasing debt. Chevron also returned a significant $27 billion to its shareholders, but its fourth-quarter 2024 free cash flow of $4.4 billion fell short of the $7.5 billion spent on dividends and buybacks.
Chevron hiked its quarterly dividend by 5% to $1.71 per share, while ExxonMobil has now increased its annual dividend for 42 consecutive years.
AI and Power Generation: Betting on the Future
Both ExxonMobil and Chevron are leveraging their expertise in natural gas to supply power to AI-driven data centers, recognizing the soaring energy demand in this sector. ExxonMobil is building a natural gas-fired power plant designed to capture over 90% of its carbon emissions. This project aligns with its carbon capture and storage (CCS) strategy, positioning the company as a key player in supplying low-emission power to major tech firms. CEO Darren Woods emphasized ExxonMobil’s advantage in integrating CO2 capture, transport, and storage into its energy infrastructure, making it an attractive energy provider for AI hyperscalers.
Chevron, meanwhile, formed a partnership with investment firm Engine No. 1 to develop natural gas-fired power plants tailored for data centers. These facilities will be strategically located in the U.S. Southeast, Midwest, and West, with operations set to commence by late 2027. Unlike ExxonMobil, Chevron is focusing on forming partnerships rather than building and operating plants itself.
Conclusion
ExxonMobil and Chevron — both carrying a Zacks Rank #3 (Hold) — delivered mixed Q4 results, with ExxonMobil emerging as the stronger performer due to an earnings beat and disciplined capital allocation. Chevron, despite increasing its dividend, faced headwinds from weak refining margins and uncertainty surrounding its Hess acquisition. Both companies are betting on AI-driven power demand as a long-term growth avenue, but ExxonMobil’s integrated approach gives it an edge.
Image: Bigstock
ExxonMobil Vs. Chevron: Which Big Oil Stock Had a Better Q4?
ExxonMobil (XOM - Free Report) and Chevron (CVX - Free Report) , two of the world’s largest oil/energy companies, delivered contrasting earnings performances in the fourth quarter. ExxonMobil reported Q4 adjusted earnings per share of $1.67, surpassing the Zacks Consensus Estimate of $1.55. However, total revenues dipped more than 1% year over year to $83.4 billion.
ExxonMobil’s production grew 20% year over year to 4,602 thousand oil-equivalent barrels per day (MBOE/d), driven by high-margin projects in the Permian Basin and Guyana. The company’s upstream segment saw a slight increase, contributing $6.3 billion in adjusted earnings, but refining and chemical divisions took significant hits. XOM was also impacted by asset impairments worth $608 million, including a Nigerian joint venture sale.
Chevron, on the other hand, posted a weaker-than-expected Q4 performance. While net income rose to $3.2 billion from $2.3 billion a year earlier, adjusted earnings of $2.06 per share missed the Zacks Consensus Estimate of $2.19. Revenues climbed 10.7% year over year to $52.2 billion. A key setback was Chevron’s downstream segment, which reported a $248 million loss — its first refining loss in four years — due to weak margins on refined products. Upstream earnings were stronger, rising to $4.3 billion, but overall production remained essentially flat at 3,350 MBOE/d.
Despite ExxonMobil’s stronger performance, both stocks faced downward pressure. ExxonMobil shares dipped more than 2%, while Chevron’s stock fell 4.5%, reflecting broader market concerns over refining margins and oil price volatility.
Production Growth and Strategic Investments
Both ExxonMobil and Chevron made significant strides in production, yet their strategies diverged. ExxonMobil’s output rose, with more than 50% of 2024 production stemming from the Permian Basin, Guyana, and LNG. By 2030, it expects over 60% of its total production to come from these high-margin areas.
Chevron’s Permian Basin output grew 14% year over year to a record 992,000 oil-equivalent barrels per day (BOE/d) edging closer to its 1 million BOE/d target. However, its total production remained relatively unchanged. The company is prioritizing long-term growth through its $53 billion acquisition of Hess (HES - Free Report) , which grants it a stake in Guyana’s lucrative offshore fields. However, a legal dispute with ExxonMobil over Hess’s Guyana holdings could delay or derail the deal, adding uncertainty to Chevron’s growth strategy.
Shareholder Returns and Capital Allocation
ExxonMobil rewarded investors with record shareholder returns, distributing $36 billion in 2024 through dividends and buybacks. It generated $36.2 billion in free cash flow, enabling these payouts without increasing debt. Chevron also returned a significant $27 billion to its shareholders, but its fourth-quarter 2024 free cash flow of $4.4 billion fell short of the $7.5 billion spent on dividends and buybacks.
Chevron hiked its quarterly dividend by 5% to $1.71 per share, while ExxonMobil has now increased its annual dividend for 42 consecutive years.
AI and Power Generation: Betting on the Future
Both ExxonMobil and Chevron are leveraging their expertise in natural gas to supply power to AI-driven data centers, recognizing the soaring energy demand in this sector. ExxonMobil is building a natural gas-fired power plant designed to capture over 90% of its carbon emissions. This project aligns with its carbon capture and storage (CCS) strategy, positioning the company as a key player in supplying low-emission power to major tech firms. CEO Darren Woods emphasized ExxonMobil’s advantage in integrating CO2 capture, transport, and storage into its energy infrastructure, making it an attractive energy provider for AI hyperscalers.
Chevron, meanwhile, formed a partnership with investment firm Engine No. 1 to develop natural gas-fired power plants tailored for data centers. These facilities will be strategically located in the U.S. Southeast, Midwest, and West, with operations set to commence by late 2027. Unlike ExxonMobil, Chevron is focusing on forming partnerships rather than building and operating plants itself.
Conclusion
ExxonMobil and Chevron — both carrying a Zacks Rank #3 (Hold) — delivered mixed Q4 results, with ExxonMobil emerging as the stronger performer due to an earnings beat and disciplined capital allocation. Chevron, despite increasing its dividend, faced headwinds from weak refining margins and uncertainty surrounding its Hess acquisition. Both companies are betting on AI-driven power demand as a long-term growth avenue, but ExxonMobil’s integrated approach gives it an edge.
You can see the complete list of today’s Zacks #1 Rank stocks here.