Exxon Mobil Corporation (XOM): Business Model Canvas [10-2024 Updated]

Discover the intricate business model of Exxon Mobil Corporation (XOM), a powerhouse in the energy sector. From strategic partnerships with industry leaders to innovative low-carbon technologies, Exxon Mobil is navigating the future of energy. Explore how their diverse customer segments and robust value propositions position them as a leader in both traditional and sustainable energy markets. Dive into the key elements that drive their success and the challenges they face in an evolving landscape.

Exxon Mobil Corporation (XOM) - Business Model: Key Partnerships

Collaborations with ADNOC for hydrogen production

ExxonMobil and the Abu Dhabi National Oil Company (ADNOC) have formed a partnership focused on hydrogen production. ADNOC holds a 35% equity stake in ExxonMobil's hydrogen production facility located in Baytown, Texas. This project aims to create virtually carbon-free hydrogen, capturing approximately 98% of the carbon dioxide (CO2) produced during the process. The facility is projected to be capable of producing up to 1 billion cubic feet of hydrogen per day and over 1 million tons of low-carbon ammonia annually, with a final investment decision anticipated in 2025 and startup expected in 2029 .

Agreements with Mitsubishi for low-carbon ammonia

ExxonMobil has entered into a Project Framework Agreement with Mitsubishi Corporation to facilitate the offtake of low-carbon ammonia and to establish equity participation in the Baytown hydrogen project. This collaboration aligns with ExxonMobil's strategy to produce low-carbon energy solutions and strengthens its portfolio in the hydrogen and ammonia markets .

Partnerships in carbon capture and storage projects

ExxonMobil has been proactive in establishing partnerships for carbon capture and storage (CCS) initiatives. Recently, the company signed its fifth CCS agreement to transport and store up to 1.2 million metric tons of CO2 annually from the New Generation Gas Gathering (NG3) project in Louisiana. This project is significant as it marks ExxonMobil's first agreement with a natural gas processing customer, bringing the total contracted CO2 storage capacity for customers to 6.7 million metric tons per year .

Partnership	Stake/Capacity	Focus Area	Projected Start Date
ADNOC	35% equity stake	Hydrogen production	2029
Mitsubishi	N/A	Low-carbon ammonia	2025 (Investment decision)
NG3 Project	1.2 million metric tons CO2/year	Carbon capture and storage	Ongoing

Exxon Mobil Corporation (XOM) - Business Model: Key Activities

Exploration and production of oil and gas

Exxon Mobil Corporation's upstream segment is focused on exploration and production (E&P) of oil and natural gas. In the third quarter of 2024, Exxon reported net production of 4.6 million oil-equivalent barrels per day (koebd), marking a 5% increase from the previous quarter. Year-to-date production for 2024 also increased by 14%, totaling 4.2 million koebd.

The company's capital and exploration expenditures in the upstream segment were $7.2 billion for the third quarter, contributing to a year-to-date total of $20 billion, aligning with the company's full-year guidance of $28 billion.

Metric	Q3 2024	YTD 2024	YTD 2023
Net Production (koebd)	4.6 million	4.2 million	3.7 million
Capital Expenditures	$7.2 billion	$20 billion	$18.6 billion

Refining and chemical manufacturing

Exxon’s refining and chemical manufacturing segments are critical for converting raw materials into finished products. The refining throughput in Q3 2024 was 3.985 million barrels per day, with significant contributions from both U.S. and non-U.S. operations. The refining margins have faced pressures due to increased supply and lower demand relative to previous years, yet Exxon has managed to improve its operational efficiency through structural cost savings.

In terms of financial performance, the refining and chemical segments collectively reported earnings of $1.3 billion in Q3 2024, a notable recovery from the previous quarter. The earnings from the chemical segment alone were $893 million, reflecting improved margins and product sales growth.

Metric	Q3 2024	YTD 2024	YTD 2023
Refining Throughput (kbd)	3,985	3,856	4,129
Refining Earnings	$1.3 billion	$3.6 billion	$8.9 billion
Chemical Earnings	$893 million	$2.5 billion	$1.4 billion

Investment in low-carbon technologies

Exxon Mobil is increasingly focusing on low-carbon technologies as part of its long-term strategy. The company has committed to invest significantly in carbon capture and storage (CCS) projects. As of Q3 2024, Exxon has contracted to store up to 6.7 million metric tons of CO2 per year, the largest commitment announced by any company to date.

Furthermore, Exxon is developing hydrogen production facilities, with plans for a substantial project in Baytown, Texas, expected to produce carbon-free hydrogen by capturing approximately 98% of CO2 emissions. This strategic pivot not only addresses environmental concerns but also positions Exxon favorably in the evolving energy market.

Metric	2024 Commitment	Expected Capacity
CO2 Storage Contract	6.7 million metric tons/year	N/A
Hydrogen Production Facility	Investment in Baytown	1 billion cubic feet/day

Exxon Mobil Corporation (XOM) - Business Model: Key Resources

Extensive global oil and gas reserves

As of 2024, Exxon Mobil Corporation holds approximately 92 billion barrels of oil equivalent in proved reserves. This includes significant assets in regions such as the Permian Basin and offshore Guyana, where Exxon has reported substantial discoveries. The company’s production capability reached 4.6 million oil-equivalent barrels per day in the third quarter of 2024, marking a significant increase of 14% year-over-year.

Advanced refining and chemical production facilities

Exxon operates a sophisticated network of refining and chemical production facilities worldwide. In the third quarter of 2024, the company processed approximately 3.985 million barrels per day across its global refining operations. The U.S. refining throughput was reported at 1.855 million barrels per day, while European facilities processed 1.135 million barrels per day. Furthermore, ExxonMobil's chemical segment reported sales of 14.757 million metric tons year-to-date.

Region	Refining Throughput (kbd)	YTD Chemical Sales (kt)
United States	1,855	5,356
Canada	389	1,707
Europe	1,135	9,401
Asia Pacific	449	1,959
Other	157	5,852
Total Worldwide	3,985	14,757

Skilled workforce and technological expertise

Exxon Mobil employs a highly skilled workforce comprising approximately 70,000 employees globally. The company invests heavily in research and development, with expenditures of about $1.2 billion in 2024, focusing on energy transition technologies, including carbon capture and storage. The workforce's expertise is crucial in managing complex operations and advancing technologies that enhance productivity and efficiency across its business segments.

Exxon Mobil Corporation (XOM) - Business Model: Value Propositions

Reliable energy supply with a focus on sustainability

Exxon Mobil Corporation is committed to providing a reliable energy supply while addressing sustainability challenges. The company has set a target to reduce greenhouse gas emissions from its operated facilities by 20% by 2030, compared to 2016 levels. Furthermore, ExxonMobil aims to achieve net-zero greenhouse gas emissions from its operated facilities by 2050.

In terms of production, ExxonMobil achieved net production of 4.6 million oil-equivalent barrels per day in Q3 2024, marking a 5% increase compared to the previous quarter. This production level is supported by significant investments in low-carbon technologies and infrastructure, including carbon capture and storage (CCS) projects that aim to store up to 6.7 million metric tons of CO2 per year.

Innovation in low-carbon solutions and technologies

ExxonMobil is at the forefront of innovation in low-carbon solutions, investing heavily in research and development. The company has dedicated over $17 billion to lower-carbon initiatives since 2000. In 2024 alone, the capital and exploration expenditures reached $20 billion, focusing on projects that enhance energy efficiency and reduce emissions.

Notable advancements include the development of a hydrogen production facility in Baytown, Texas, which is expected to produce nearly carbon-free hydrogen with approximately 98% of CO2 captured. Additionally, ExxonMobil is leading in CCS development, having signed multiple agreements to transport and store CO2, enhancing its portfolio of low-carbon technologies.

Strong brand reputation and extensive market reach

ExxonMobil's brand is synonymous with reliability and innovation. The company has consistently ranked among the top in the Fortune 500, reflecting its substantial market presence and financial strength. In Q3 2024, ExxonMobil reported earnings of $8.6 billion, or $1.92 per share, showcasing its robust financial performance amid challenging market conditions.

ExxonMobil's extensive market reach is evident in its global operations, which span over 60 countries and involve a diverse range of energy products. Year-to-date 2024, the company has generated $26.1 billion in earnings, demonstrating its ability to leverage its extensive distribution network and brand equity to capture market share.

Year	Earnings (in billions)	Production (million oil-equivalent barrels per day)	Capital Expenditures (in billions)	CO2 Storage Capacity (million metric tons/year)
2024 (YTD)	26.1	4.6	20	6.7
2023	28.4	4.2	15.7	5.0
2022	55.7	3.7	23.2	3.5

Exxon Mobil Corporation (XOM) - Business Model: Customer Relationships

Long-term contracts with energy and industrial customers

Exxon Mobil Corporation has established long-term contracts with various energy and industrial customers to ensure a stable revenue stream. In 2024, the company reported energy products sales of approximately 5,580 thousand barrels per day (kbd) globally, which includes both domestic and international markets. These contracts often span multiple years, allowing Exxon to secure commitments from clients while providing them with reliable supply lines.

Engagement in sustainability initiatives with stakeholders

Exxon Mobil is actively engaging in sustainability initiatives that align with stakeholder expectations. The company has committed to transporting and storing up to 6.7 million metric tons of CO2 per year starting in 2025, which positions it as a leader in carbon capture and storage (CCS). This initiative not only meets regulatory requirements but also addresses the growing demand for environmentally responsible practices among customers and investors.

Customer support through dedicated service teams

Exxon Mobil provides robust customer support through dedicated service teams. These teams are responsible for addressing customer inquiries, managing logistics, and ensuring timely delivery of products. The company reported a cash flow from operating activities of $42.8 billion and free cash flow of $26.4 billion in the first nine months of 2024, which supports its ability to invest in customer service improvements. Customer satisfaction is a key focus area, and the dedicated teams play a crucial role in maintaining strong relationships with clients.

Metric	Q3 2024	YTD 2024	YTD 2023
Earnings (U.S. GAAP)	$8.6 billion	$26.1 billion	$28.4 billion
Cash Flow from Operating Activities	$17.6 billion	$42.8 billion	$41.7 billion
Free Cash Flow	$11.3 billion	$26.4 billion	$28.1 billion
Energy Products Sales (kbd)	5,580	5,378	5,496
Carbon Capture and Storage Commitment	6.7 million metric tons/year	N/A	N/A

Exxon Mobil Corporation (XOM) - Business Model: Channels

Direct sales through energy markets

Exxon Mobil engages in direct sales primarily through energy markets, including crude oil and refined products. In the third quarter of 2024, the company reported worldwide energy products sales of 5,580 thousand barrels per day (kbd) compared to 5,378 kbd year-to-date 2024, reflecting strong demand in both domestic and international markets.

Distribution via refineries and chemical plants

Exxon Mobil's distribution network comprises numerous refineries and chemical plants. The company operated a total refinery throughput of 3,985 kbd globally in the third quarter of 2024, compared to 3,856 kbd in the same period of 2023. The refining capacity includes:

Region	3Q24 Refinery Throughput (kbd)	YTD 2024 Refinery Throughput (kbd)
United States	1,855	1,834
Canada	389	395
Europe	1,135	1,026
Asia Pacific	449	432
Other	157	169
Total Worldwide	3,985	3,856

Additionally, in the chemical segment, Exxon reported sales of 4,830 thousand metric tons (kt) in the third quarter of 2024, demonstrating the effectiveness of its distribution strategy across various chemical products.

Online platforms for investor relations and information

Exxon Mobil maintains robust online platforms for investor relations, providing stakeholders with comprehensive financial data and operational updates. The company reported cash flow from operating activities of $42.8 billion year-to-date 2024, an increase from $41.7 billion in the same period of 2023. Key financial metrics accessible online include:

Metric	YTD 2024	YTD 2023
Net Income	$27.1 billion	$29.3 billion
Earnings per Share	$6.12	$6.98
Dividends Paid	$12.3 billion	$11.1 billion
Total Shareholder Return	20%	N/A

These platforms enhance transparency and foster investor engagement, reflecting Exxon Mobil’s commitment to shareholder communication and financial accountability.

Exxon Mobil Corporation (XOM) - Business Model: Customer Segments

Large industrial clients in energy and chemicals

Exxon Mobil serves large industrial clients across various sectors, particularly in energy and chemicals. In 2024, the company reported that its Upstream segment generated approximately $18.9 billion in earnings, reflecting strong production volumes and strategic investments in high-value projects.

Key metrics include:

Segment	Earnings (YTD 2024, $ million)	Production Volumes (kbd)	Capital Expenditures (YTD 2024, $ million)
Upstream	18,892	4,582	20,037
Energy Products	3,631	5,580	1,660
Chemical Products	2,457	4,830	1,460

Governments and public sector entities

Exxon Mobil engages with various governments and public sector entities, providing fuel and energy solutions. During 2024, the corporation reported total taxes including sales-based taxes amounting to $51.3 billion. This demonstrates the significant financial interactions Exxon has with governmental bodies, which often include contracts for energy supply and development projects.

Key contributions are as follows:

Type of Tax	Amount (YTD 2024, $ million)
Income Taxes	11,952
Total Other Taxes and Duties	22,300
Total Taxes	34,252

Retail consumers through fuel stations

Exxon Mobil caters to retail consumers through its extensive network of fuel stations. In the third quarter of 2024, the company reported global energy product sales of 5,580 kbd, which included fuels sold at retail locations. The company aims to maintain competitive pricing and customer loyalty through various programs and promotions.

Key metrics for retail operations include:

Segment	Sales Volume (kbd)	Year-to-Date Sales (kbd)
Energy Products	5,580	5,378
Gasolines and Naphthas	2,281	2,234
Heating Oils and Kerosene	1,796	1,752

Exxon Mobil Corporation (XOM) - Business Model: Cost Structure

Significant capital expenditures for exploration and production

For the third quarter of 2024, Exxon Mobil reported capital and exploration expenditures of $7.2 billion, bringing year-to-date expenditures to $20 billion. The company is on track to meet its full-year guidance of $28 billion .

Year-to-date capital expenditures for upstream operations reached $16.1 billion, with $8.1 billion in the United States and $8.0 billion internationally .

In the upstream segment, Exxon Mobil has focused on high-value projects such as the Guyana offshore developments, which are expected to significantly contribute to future production .

Operational costs related to refining and distribution

For the nine months ended September 30, 2024, Exxon Mobil's total production and manufacturing expenses amounted to $28.8 billion, up from $26.9 billion in the same period of 2023 .

Refinery throughput for the third quarter of 2024 was 3.985 million barrels per day, reflecting a slight increase in operational efficiency despite challenges in refining margins .

The company incurred $6.7 billion in other taxes and duties in the third quarter of 2024 .

Cost Type	Q3 2024 (in millions)	YTD 2024 (in millions)	YTD 2023 (in millions)
Production and Manufacturing Expenses	9,881	28,776	26,992
Selling, General and Administrative Expenses	2,296	7,359	7,328
Depreciation and Depletion	6,258	16,857	12,901
Exploration Expenses	339	640	612

Research and development expenses for new technologies

Exxon Mobil's spending on research and development (R&D) in 2024 has been focused on innovation in energy technologies, particularly in carbon capture and storage (CCS) and low-carbon hydrogen production. While specific figures for R&D expenditures were not disclosed, the company has highlighted its commitment to advancing sustainable energy solutions .

The company reported cumulative structural cost savings of $11.3 billion since 2019, with plans to achieve $15 billion by the end of 2027 .

Overall, Exxon Mobil is strategically investing in technologies aimed at reducing emissions and enhancing operational efficiency, which are expected to drive down costs in the long term .

Exxon Mobil Corporation (XOM) - Business Model: Revenue Streams

Sales from crude oil and natural gas production

In 2024, Exxon Mobil's upstream segment reported significant production levels, with net production reaching approximately 4.582 million oil-equivalent barrels per day (koebd). The company achieved $18.9 billion in year-to-date earnings from its upstream operations, reflecting an increase from the previous year. Specifically, the earnings from U.S. operations were $5.170 billion, while non-U.S. operations contributed $13.722 billion.

Earnings from refining and chemical products

The refining and chemical segments of Exxon Mobil generated notable revenues in 2024. The company reported total earnings of $3.631 billion from energy products, with U.S. earnings at $1.803 billion and non-U.S. earnings at $1.828 billion. In terms of chemical products, Exxon Mobil achieved $2.457 billion in worldwide earnings, with U.S. and non-U.S. earnings at $1.397 billion and $1.060 billion, respectively.

Product Segment	Q3 2024 Earnings (millions)	YTD 2024 Earnings (millions)
Energy Products	1,309	3,631
Chemical Products	893	2,457
Specialty Products	794	2,306

Income from carbon capture and storage agreements

Exxon Mobil is increasingly focusing on carbon capture and storage (CCS) as part of its revenue strategy. The company signed agreements to transport and store up to 6.7 million metric tons of CO2 per year. This initiative is part of their broader strategy to enhance sustainability while generating new revenue streams from environmental solutions. The Baytown hydrogen production facility, which is expected to produce low-carbon hydrogen, will also contribute to this revenue stream, contingent on regulatory approval.

In summary, Exxon Mobil's revenue streams in 2024 are diversified across crude oil and natural gas production, refining and chemical products, and emerging income from carbon capture and storage agreements, positioning the company for future growth and sustainability in a changing energy landscape.

Article updated on 8 Nov 2024

Resources:

1. Exxon Mobil Corporation (XOM) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Exxon Mobil Corporation (XOM)' financial performance, including balance sheets, income statements, and cash flow statements.
2. SEC Filings – View Exxon Mobil Corporation (XOM)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.