Exxon Mobil reported a solid Q1 2024 cash-generation profile despite a modest year-over-year revenue decline. Revenue of $80.41 billion declined 3.87% year-over-year and 1.56% quarter-over-quarter, while gross profit of $18.91 billion produced a gross margin of 23.5%. Operating income reached $11.60 billion with an implied operating margin of 14.4%, and net income was $8.22 billion (net margin 10.2%), with EPS of $2.06. Although profitability metrics softened versus the prior-year period, the company generated robust free cash flow of $9.59 billion and operating cash flow of $14.66 billion, underscoring Exxon’s ability to translate cash flow into meaningful shareholder returns.
Capital allocation remained highly disciplined. Dividends paid totaled $3.81 billion and share repurchases were $3.01 billion in the quarter, supporting a net cash inflow to cash balance movements that left ending cash and equivalents at about $33.35 billion. After accounting for capex of $5.07 billion, acquisitions net of $0.71 billion, and investing activities, Exxon delivered a resilient balance sheet with net debt of approximately $7.09 billion, total assets of $377.92 billion, and total stockholders’ equity of $205.25 billion. The firm continues to exhibit strong liquidity and leverage metrics (current ratio ~1.38, interest coverage ~48.6x) that provide capacity for ongoing shareholder returns and selective high-return investments.
From a valuation standpoint, the quarter reflects a high-quality, cash-generative business trading at mid-teens earnings multiples and robust cash-generation potential. While YoY revenue and profit declined, the trajectory supports a constructive longer-term investment thesis anchored in durable cash flow, a strong balance sheet, and a proven capital-allocation framework aimed at returns to shareholders alongside value-enhancing upstream projects.