Skip to content
    XOM
    Earnings call· Dec 2025(Q4 FY25)

    EXXON MOBIL Q4 FY25 earnings call XOM

    Jan 30, 2026 Source

    Executive summary

    ExxonMobil Q4 FY25 — Strong Execution and Advantaged Asset Growth Drive Record Production

    ExxonMobil delivered exceptional Q4 FY25 results, driven by its strategic transformation and strong execution across advantaged assets. The company achieved record production in Permian and Guyana, met its 2030 emission reduction targets ahead of schedule, and captured significant structural cost savings. This performance underscores a higher-return, lower-cost, technology-led approach, positioning ExxonMobil for continued industry-leading earnings and shareholder returns.

    Highlights

    6
    • Achieved 2030 emission reduction plans by 2025, reducing corporate GHG intensity by over 20%, upstream GHG intensity by over 40%, and corporate flaring intensity by over 60%.

    • Upstream production averaged 4.7 million oil-equivalent barrels per day in 2025, with unit earnings more than double 2019 levels on a constant price basis.

    • Delivered all 10 key 2025 projects, including Yellowtail online ahead of schedule, raising gross Guyana production to approximately 875,000 barrels per day in Q4 FY25.

    • Set a new Permian production record of 1.8 million oil-equivalent barrels per day in Q4 FY25, contributing to the highest annual company production in over 40 years.

    • Captured $15 billion in structural cost savings through 2025, significantly outpacing competitors.

    • Completed $20 billion in share repurchases in 2025, retiring shares equivalent to one-third of those issued during the Pioneer transaction.

    Concerns

    3
    • Chemicals segment margin pressure

    • Venezuela investment environment

    • Guyana Stabroek block force majeure

    Guidance & targets

    8
    CategoryTargetConfidence
    Methane intensity reductions
    2030 methane intensity reductions
    medium materiality
    High
    Advantaged assets production mix
    roughly 65% of total production
    high materiality
    High
    Permian production
    exceed 2.5 million oil-equivalent barrels a day
    high materiality
    High
    Mozambique FID
    something here as we move through this year, probably on the back half of the year
    medium materiality
    Medium
    Golden Pass first LNG production
    very early March
    high materiality
    High
    Permian annual production increase
    up about 200,000 koebd
    high materiality
    High
    Lightweight proppant usage in new Permian wells
    about 50% of our wells
    medium materiality
    High
    Hyperscaler CCS project announcement
    project announcement hopefully by year-end
    medium materiality
    Medium

    Operational metrics

    22
    Annualized shareholder return
    29%led the industry
    last 5 years

    Annualized shareholder return over the past five years.

    Shareholder distributions
    $150 billion
    last 5 years

    Total distributions to shareholders over the past five years.

    Structural cost savings
    $15 billiongreater than all other IOC savings combined
    through 2025

    Cumulative structural cost savings achieved through 2025.

    Share repurchases
    $20 billionretired 1/3 of shares issued during Pioneer transaction
    2025

    Amount of share repurchases completed in 2025.

    Corporate GHG intensity reduction
    >20%vs 2016
    2025

    Reduction in corporate greenhouse gas intensity by 2025 compared to 2016 levels.

    Upstream GHG intensity reduction
    >40%vs 2016
    2025

    Reduction in upstream greenhouse gas intensity by 2025 compared to 2016 levels.

    Corporate flaring intensity reduction
    >60%vs 2016
    2025

    Reduction in corporate flaring intensity by 2025 compared to 2016 levels.

    Upstream unit earnings
    more than doublevs 2019
    2025

    Upstream unit earnings in 2025 compared to 2019 on a constant price basis.

    Permian wells with lightweight proppant
    25%
    2025

    Percentage of Permian wells where lightweight proppant was deployed in 2025.

    Stackable technologies in Permian
    more than 40
    current

    Number of stackable technologies in various stages of testing and deployment in the Permian.

    Proxxima base rebar installation efficiency improvement
    40%vs steel
    current

    Improvement in installation efficiency of Proxxima base rebar compared to steel.

    Advanced battery anode graphite faster charging
    30%
    current

    Faster charging capability of advanced battery anode graphite.

    Advanced battery anode graphite higher available capacity
    up to 3%
    current

    Higher available capacity of advanced battery anode graphite.

    Advanced battery anode graphite battery life
    up to 4x
    current

    Improvement in battery life with advanced battery anode graphite.

    Third-party CCS project storage capacity
    2 million tons per year
    current

    Storage capacity of the first third-party CCS project brought online.

    Total sequestered CO2 from CCS projects
    approximately 9 million tons per year
    current

    Total sequestered CO2 from all secured CCS projects.

    Mega project execution efficiency
    3xvs nearest competitor
    current

    ExxonMobil's global projects organization executes approximately three times as many mega projects as the nearest competitor.

    Mega project cost efficiency
    up to 20% lower costvs industry average
    current

    Mega projects executed at up to 20% lower cost than the industry average.

    Mega project delivery speed
    20% fastervs industry average
    current

    Mega projects delivered 20% faster than the industry average.

    ERP systems consolidated
    more than 10
    historical

    Number of ERP systems consolidated into a single enterprise-wide platform.

    Profit centers reduction
    97% fewer
    future

    Expected reduction in profit centers due to the new ERP system.

    Cost centers reduction
    70% fewer
    future

    Expected reduction in cost centers due to the new ERP system.

    Industry KPIs

    3
    MetricValueDetails
    D c efficiency rig activity25%%
    Basin level production volume875,000barrels per day
    FCF shareholder distributions$150 billionUSD

    Deals & partnerships

    1
    French affiliatedivestiture

    Sale of the French affiliate was closed last year.

    Capital programs

    5
    Yellowtail FPSOcompleted

    Benefit: 875,000 barrels per day gross production

    Most recent project in Guyana, came online ahead of schedule, raising gross production in Q4 FY25.

    Golden Pass LNGunderway

    Mechanically completed in Q4 FY25, currently in commissioning and start-up, with first LNG expected in early March 2026.

    Proxxima systems expansionunderway

    Benefit: more than tripled capacity

    Commenced start-up activities as one of the 10 key 2025 projects, capacity more than tripled this year.

    Third-party CCS projectcompleted

    Benefit: 2 million tons per year storage

    First third-party CCS project brought online, capable of storing up to 2 million tons per year.

    Singapore Resid Upgrade Projectcompleted

    Benefit: convert low-value fuel oil into higher-value lubricants and diesel

    Demonstrated full capacity performance, validating proprietary catalyst technology.

    Risks & headwinds

    3
    Chemicals segment margin pressurecurrent

    lot of capacity that comes on that expresses the margin

    Mitigation: Focus on cost efficiencies, high-value products, and feed advantages to differentiate from marginal suppliers.

    Venezuela investment environmentcurrent

    barrels are high-cost barrels

    Mitigation: Requires favorable fiscal structures, legal infrastructure, and technology to bring high-cost barrels to market efficiently. ExxonMobil offered technical assessment to the US administration.

    Guyana Stabroek block force majeureongoing

    portion of the block that's under force majeure as a result of the border dispute remains there

    Mitigation: Resolution depends on the International Court of Justice ruling on the border dispute between Guyana and Venezuela. Force majeure pauses the clock on exploration obligations in that area.

    Q&A highlights

    8

    Inquired about the exploration license expiry on the Stabroek block in 2027 and the potential of the force majeure area disputed by Venezuela, asking about milestones for evaluating resource potential.

    Management continues exploration in accessible areas, leveraging learnings from development wells. The unlock for the force majeure area depends on the International Court of Justice ruling on the border dispute, which is a critical milestone. ExxonMobil is optimistic about future access, as force majeure pauses the clock.

    one of the unlocks with respect to that region will be the ruling that comes out of the International Court of Justice that's the process that Guyana has been going through with Venezuela to align on the -- which resolve the border dispute. So I think that will be a critical milestone.

    asked by Devin McDermott · answered by Darren Woods

    2 min read6 chapters

    Detailed Narrative

    01

    Strategic Transformation and Value Creation

    ExxonMobil's transformation since 2018 has focused on building a higher-return, lower-cost, technology-led company. This strategy involves increasing investments in an advantaged portfolio, divesting nonstrategic assets, and significantly lowering costs. The company's annualized shareholder return of 29% over the past five years has led the industry, supported by $150 billion in distributions to shareholders during that period, demonstrating superior results across market cycles.

    02

    Advantaged Assets Driving Upstream Growth

    Upstream production from advantaged assets, including the Permian, Guyana, and LNG, continues to grow, with these assets expected to comprise roughly 65% of total production by 2030. In Q4 FY25, Guyana gross production reached approximately 875,000 barrels per day from its first four FPSOs, 100,000 barrels per day above the investment basis. The Permian delivered a new production record of 1.8 million oil-equivalent barrels per day in Q4 FY25, contributing to the highest annual company production in over 40 years at 4.7 million oil-equivalent barrels per day.

    03

    Technology and Innovation Across Businesses

    Technology deployment is a primary focus, particularly in the Permian, where lightweight proppant was used in 25% of wells in 2025, projected to reach 50% of new wells by the end of 2026. The company is testing and deploying over 40 stackable technologies to grow production at lower capital cost. Other innovations include Proxxima systems scaling, advanced battery anode graphite delivering 30% faster charging and up to 4x battery life, and the Singapore Resid Upgrade Project validating proprietary catalyst technology.

    04

    Progress in Carbon Capture and Low Carbon Solutions

    ExxonMobil is advancing its carbon capture network, making progress on the Rose permit and bringing its first third-party CCS project online, capable of storing up to 2 million tons per year. The company secured its seventh CCS contract, with these projects collectively representing approximately 9 million tons per year of sequestered CO2. Management is engaged in serious discussions with hyperscalers regarding low-carbon data centers, with a project announcement hoped for by year-end 2026.

    05

    Project Execution Excellence and Cost Savings

    The company successfully commenced start-up activities for all 10 key 2025 projects, including Golden Pass LNG and the Proxxima systems expansion. ExxonMobil's global projects organization executes approximately three times as many mega-projects as its nearest competitor, at up to 20% lower cost and 20% faster delivery schedules. Structural cost savings reached $15 billion through 2025, significantly outpacing competitors.

    06

    Enterprise-Wide Data and Process Transformation

    A new enterprise-wide process and data platform is transforming operations by consolidating over 10 ERP systems into one, with a single data construct and nomenclature. This initiative is expected to result in 97% fewer profit centers and 70% fewer cost centers, enabling faster learning, better leveraging of scale, accelerated AI adoption, and improved efficiency and effectiveness across the organization.

    AI-generated summary of the company’s earnings call. Not investment advice.