Exxon Mobil Corporation (XOM) Q4 2025 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary highlights several positive developments, such as the growth in Permian production, advancements in CCS projects, and the expansion of Proxxima Systems. The Q&A section reinforces this sentiment with optimistic views on production growth, technological advancements, and strategic market entry. Despite some unclear responses, the overall tone remains optimistic. The strategic projects and positive guidance suggest a likely stock price increase in the short term.
Key Financial Performance
Upstream production 4.7 million oil-equivalent barrels per day, with unit earnings more than double those in 2019 on a constant price basis. This reflects the successful delivery of 10 key 2025 projects and a disciplined approach to portfolio management.
Annualized shareholder return 29% over the past 5 years, supported by $150 billion of distributions to shareholders during that period. This demonstrates strong financial performance and shareholder value creation.
Share repurchases $20 billion completed during the year, retiring shares equivalent to 1/3 of those issued during the Pioneer transaction. This significantly reduced the dilutive impacts of the acquisition.
Guyana production Gross production in the fourth quarter reached roughly 875,000 barrels per day, with the first 4 FPSOs producing 100,000 barrels a day above the investment basis. This reflects operational excellence and the value of advantaged assets.
Permian production 1.8 million oil-equivalent barrels per day in the fourth quarter, driving the highest annual company production in over 40 years at 4.7 million oil-equivalent barrels per day. This was achieved through technology deployment and operational efficiency.
Carbon capture and storage (CCS) Projects represent approximately 9 million tons per year of sequestered CO2, with advancements including the Rose permit and the first third-party CCS project capable of storing up to 2 million tons per year. This highlights progress in environmental initiatives.
You have reached the limit. Sign up to access full content
Get started
Operating Highlights
Proxxima systems: Scaled capacity more than threefold in 2025, with applications in rebar, coatings, automotive, and oil and gas. Proxxima-based rebar offers 40% improvement in installation efficiency, superior strength, lightness, and corrosion resistance.
Advanced battery anode graphite program: Delivers 30% faster charging, up to 3% higher capacity, and up to 4x battery life.
Singapore Resid Upgrade Project: Validated proprietary catalyst technology to convert low-value fuel oil into higher-value lubricants and diesel.
Guyana and Permian production: Guyana production reached 875,000 barrels/day in Q4 2025, with four FPSOs producing 100,000 barrels/day above investment basis. Permian production hit a record 1.8 million oil-equivalent barrels/day in Q4 2025, with expectations to exceed 2.5 million oil-equivalent barrels/day by 2030.
Carbon capture network: Advanced with the Rose permit, first third-party CCS project capable of storing 2 million tons/year, and secured seventh CCS contract, representing 9 million tons/year of CO2 sequestration.
GHG and flaring intensity reductions: Achieved 2030 emission reduction plans in 2025, reducing corporate GHG intensity by over 20%, upstream GHG intensity by over 40%, and corporate flaring intensity by over 60%.
Structural cost savings: Captured savings greater than all other IOC savings combined, delivering industry-leading earnings and cash flow even in lower commodity price periods.
Project execution: Completed start-up activities for all 10 key 2025 projects, including Golden Pass LNG and Proxxima systems expansion, at 20% lower cost and 20% faster delivery schedules than industry average.
Portfolio transformation: Focused on advantaged assets like Permian, Guyana, and LNG, expected to make up 65% of production by 2030. Divested nonstrategic assets and improved mix for higher returns.
Enterprise-wide process and data platform: Redesigned processes and connected data across all functions, enabling faster decision-making, AI adoption, and operational improvements.
You have reached the limit. Sign up to access full content
Get started
Risk or Challenges
Market Conditions: Potential risks from lower commodity prices, which could impact earnings and cash flow despite structural cost savings.
Regulatory Hurdles: Uncertainties related to obtaining permits for carbon capture projects, such as the Rose permit, which could delay or hinder progress in carbon capture initiatives.
Supply Chain Disruptions: No explicit mention of supply chain disruptions, but reliance on advanced technologies and materials like Proxxima systems and carbon materials could pose risks if supply chains are disrupted.
Economic Uncertainties: No explicit mention of economic uncertainties, but global economic conditions could indirectly impact demand for oil, gas, and advanced materials.
Strategic Execution Risks: Challenges in maintaining execution excellence and meeting aggressive project timelines, such as achieving 50% lightweight proppant deployment in new wells by year-end.
You have reached the limit. Sign up to access full content
Get started
Guidance & Outlook
Upstream Production: Production from advantaged assets, including the Permian, Guyana, and LNG, is expected to grow and make up roughly 65% of total production by 2030.
Product Solutions: Advantaged project start-ups and high-value product growth are expected to drive meaningful earnings growth through 2030, with 60% of this growth coming from assets already online.
Permian Basin: Production is expected to exceed 2.5 million oil-equivalent barrels per day beyond 2030, with continued growth at lower capital costs driven by technology deployment.
Carbon Capture and Storage (CCS): Projects represent approximately 9 million tons per year of sequestered CO2, with advancements in the Rose permit and the first third-party CCS project capable of storing up to 2 million tons per year.
Technology Deployment: Proxxima systems and advanced battery anode graphite programs are scaling, with significant improvements in efficiency, capacity, and battery life.
Capital Priorities: The company will maintain a measured pace of share repurchases, invest in competitively advantaged opportunities, and preserve flexibility to invest through the cycle.
2026 Outlook: The company expects higher structural earnings power, stronger mix, lower breakevens, and a portfolio designed to perform across commodity cycles.
You have reached the limit. Sign up to access full content
Get started
Shareholder Return Plan
Annualized Shareholder Return: 29% over the past 5 years, supported by $150 billion of distributions to shareholders during that period.
Share Repurchases in 2025: Completed $20 billion in share repurchases, retiring shares equivalent to 1/3 of those issued during the Pioneer transaction.
Share Repurchase Strategy: Maintaining a measured pace of share repurchases subject to reasonable market conditions while preserving flexibility to invest through the cycle.
You have reached the limit. Sign up to access full content
Get started
Key Q&A
Q:What is ExxonMobil's exploration strategy for the Stabroek block in Guyana, considering the expiration of the exploration license in 2027 and the force majeure area?
A:ExxonMobil is focusing on areas with seismic data and continuing to develop and identify additional targets within accessible parts of the block. For the force majeure area, the company is awaiting a ruling from the International Court of Justice on the border dispute between Guyana and Venezuela. The force majeure status pauses the clock, allowing ExxonMobil to evaluate the resource potential when the area becomes accessible.
Q:What is ExxonMobil's outlook for Permian production in 2023 and the role of lightweight proppant technology?
A:ExxonMobil expects Permian production to increase by about 200,000 barrels of oil equivalent per day year-over-year. Lightweight proppant technology is being deployed in more wells, with 25% of wells using it in 2022 and a target of 50% by the end of 2023. The company is optimistic about the potential of this and other technologies to enhance recovery and reduce costs.
Q:What is ExxonMobil's approach to entering markets like Libya, Iraq, and Venezuela, and what are the challenges?
A:ExxonMobil is exploring opportunities in these markets but emphasizes the need for favorable fiscal regimes, legal infrastructure, and investment guarantees. The company is leveraging its competitive advantages in technology and project execution to negotiate contractual arrangements. In Venezuela, ExxonMobil is monitoring developments and has offered to send a technical team to assess opportunities.
Q:How does ExxonMobil plan to refresh its upstream portfolio with advantaged assets?
A:ExxonMobil focuses on leveraging its capabilities to make investments advantaged, regardless of the resource itself. The company aims to bring unique capabilities to new resources, ensuring they are cost-competitive and deliver high returns. The strategy includes improving recovery rates and applying new technologies to maximize value.
Q:What is the status of ExxonMobil's LNG projects, including Golden Pass, Papua New Guinea, and Mozambique?
A:Golden Pass is mechanically complete, with first LNG expected in early March 2023. Papua New Guinea and Mozambique projects are progressing, with Mozambique potentially reaching FID in late 2023. Both projects are designed to be cost-competitive and advantaged on the global cost curve.
Q:What is ExxonMobil's corporate-wide data system transformation, and what benefits are expected?
A:ExxonMobil is consolidating its ERP systems into a single platform with one data construct, reducing profit centers by 97% and cost centers by 70%. This transformation aims to enhance automation, simplify processes, and enable the application of AI at scale. The initiative is expected to improve efficiency, reduce costs, and free up employees for higher-value activities.
Q:What is ExxonMobil's approach to divestitures and acquisitions in the current asset market?
A:ExxonMobil continues to divest non-competitive assets, having achieved $25 billion in divestments since 2019. The company seeks buyers who value these assets more and focuses on retaining advantaged assets. For acquisitions, ExxonMobil looks for opportunities that are accretive, leverage its capabilities, and compete with other investment opportunities.
Q:What is ExxonMobil's perspective on the base chemicals market and its strategy in this segment?
A:ExxonMobil sees strong demand for base chemicals but faces margin pressure due to high supply. The company focuses on cost efficiency, high-value products, and leveraging feedstock advantages to remain competitive. It continues to improve its operations to differentiate itself from competitors.
Q:What is ExxonMobil's progress and outlook for its carbon capture and storage (CCS) business?
A:ExxonMobil is engaged in substantive discussions with hyperscalers for decarbonizing data centers using CCS. The company has the only scale end-to-end CCS system and is optimistic about project announcements by year-end. ExxonMobil sees CCS as a viable option for low-carbon data centers and is leveraging its integrated capabilities.
Q:Review of Unclear Management Responses
A:ExxonMobil's management avoided providing a specific number for the base decline rate of its upstream portfolio, despite being asked directly. Additionally, while discussing the chemicals segment, management did not provide a clear timeline or specific measures to address margin pressures in the market.
You have reached the limit. Sign up to access full content
Get started
Earnings Word Cloud
The most frequently occurring keywords in this quarter's earning call
Chairman President
ExxonMobil Today
President CEO
Relations Treasurer
Relations presentation
Slide information
Today Vice
Treasurer ExxonMobil
VP Investor
comment term
end slide
information end
location today
plan risk
press release
release location
remark Chairman
remark comment
slide website
statement SEC
statement Slide
uncertainty statement
website opening
website press
XOM Transcript
Exxon Mobil Corporation (XOM) Q4 2025 Earnings Call Transcript
Positive1-30
The earnings call summary highlights several positive developments, such as the growth in Permian production, advancements in CCS projects, and the expansion of Proxxima Systems. The Q&A section reinforces this sentiment with optimistic views on production growth, technological advancements, and strategic market entry. Despite some unclear responses, the overall tone remains optimistic. The strategic projects and positive guidance suggest a likely stock price increase in the short term.
Exxon Mobil Corporation (XOM) Discusses Corporate Plan Transformation, Enhanced Earnings and Cash Flow Targets, and Emissions Reduction Progress Transcript
Neutral12-9
Exxon Mobil Corporation (XOM) Q3 2025 Earnings Call Transcript
Positive10-31
The earnings call highlights strong production growth, technological advancements, and strategic acquisitions, suggesting a positive outlook. The Q&A reveals confidence in market strategies and financial health, though modest dividend growth and cautious inorganic activity may temper enthusiasm. Overall, the positive factors outweigh the negatives, indicating a likely stock price increase in the short term.
Exxon Mobil Corporation (XOM) Presents At Barclays 39th Annual CEO Energy-Power Conference 2025 Transcript
Neutral9-3
XOM Slides
XOM Report
Frequently Asked Questions
Where does this earnings call transcript come from?
All transcripts are sourced directly from the official live webcast or the company’s official investor relations website. We use the exact words spoken during the call with no paraphrasing of the core discussion.
How soon is the transcript available after the earnings call ends?
Full verbatim transcripts are typically published within 4–12 hours after the call ends. Same-day availability is guaranteed for all S&P 500 and most mid-cap companies.
Is the transcript edited or altered in any way?
No material content is ever changed or summarized in the “Full Transcript” section. We only correct obvious spoken typos (e.g., “um”, “ah”, repeated 10 times”, or clear misspoken ticker symbols) and add speaker names/titles for readability. Every substantive sentence remains 100% as spoken.
Why do some answers appear as “Unclear” or “Inaudible”?
When audio quality is poor or multiple speakers talk over each other, we mark the section instead of guessing. This ensures complete accuracy rather than introducing potential errors.
Who creates the AI Summary and Key Q&A highlights shown above the transcript?
They are generated by a specialized financial-language model trained exclusively on 15+ years of earnings transcripts. The model extracts financial figures, guidance, and tone with 97%+ accuracy and is regularly validated against human analysts. The full raw transcript always remains available for verification.
