Exxon Mobil (NYSE:XOM) used its fourth-quarter 2025 earnings call to highlight progress in a multi-year transformation it says has created a “higher return, lower cost, technology-led company,” while outlining updates across major growth areas such as Guyana, the Permian Basin, and liquefied natural gas (LNG). Management also discussed portfolio high-grading, emissions performance, carbon capture developments, and a large-scale enterprise data and systems modernization.
Transformation progress, shareholder returns, and cost savings
Darren said the company’s strategy since 2018 has focused on increasing investment in an “advantage portfolio,” divesting non-strategic assets, and lowering costs. He pointed to what he described as industry-leading shareholder returns and distributions, noting that over the past five years ExxonMobil’s annualized shareholder return was 29% and that the company distributed $150 billion to shareholders over that period.
Operations, emissions performance, and upstream growth engines
In prepared remarks, Darren said ExxonMobil delivered strong safety and reliability performance and has already achieved its 2030 plans for greenhouse gas emissions and flaring intensity reductions. As of 2025, he said ExxonMobil reduced corporate GHG intensity by more than 20%, upstream GHG intensity by more than 40%, and corporate flaring intensity by more than 60%. He added the company expects to reach its 2030 methane intensity reductions by the end of this year.
Upstream production averaged 4.7 million oil equivalent barrels per day in 2025. Darren said unit earnings were more than double those in 2019 on a constant price basis, and that ExxonMobil delivered all 10 “key 2025 projects.” He said production from “advantage assets” such as the Permian, Guyana, and LNG continues to grow and is expected to represent roughly 65% of total production by 2030.
In Guyana, Darren said the Yellowtail project came online ahead of schedule, lifting gross production in the fourth quarter to roughly 875,000 barrels per day. He also said the first four FPSOs are producing 100,000 barrels per day above the investment basis.
In the Permian, ExxonMobil reported a fourth-quarter production record of 1.8 million oil equivalent barrels per day and said the quarter contributed to the company’s highest annual production in more than 40 years. Darren said lightweight proppant was deployed in about 25% of wells in 2025 and is expected to reach 50% of new wells by the end of this year. He also said the company has more than 40 “stackable technologies” in testing or deployment and asserted there is “no near-term peak Permian” for ExxonMobil, with an expectation to exceed 2.5 million oil equivalent barrels per day beyond 2030.
Q&A: Guyana exploration timing, Permian cadence, and potential new geographies
During Q&A, ExxonMobil addressed Guyana exploration strategy ahead of a scheduled license expiry in 2027 and acreage under force majeure tied to a Venezuela border dispute. Darren said ExxonMobil will continue exploring areas of the block where it has seismic coverage and will use learnings from development drilling to identify additional targets. Regarding the force majeure portion, he said a key milestone will be a ruling from the International Court of Justice, and he noted force majeure “pauses the clock,” preserving time to evaluate that acreage once access is possible.
Asked about the Permian after a strong fourth quarter, Darren cautioned against extrapolating quarterly results to a full year because volumes can be “lumpy” due to development timing. He said ExxonMobil expects about 200,000 kboe/d of year-over-year growth in the Permian on an annual basis, while emphasizing the company’s focus on maximizing ultimate recovery through cube development and technology deployment.
On potential upside beyond the company’s portfolio plan through 2030, Darren said ExxonMobil is evaluating opportunities in resource-rich areas where fiscal terms, legal frameworks, and investment protections have historically been barriers. He said ExxonMobil’s project execution, technology, and operational consolidation can create advantages for both the company and resource owners, and he expressed confidence there could be progress in areas not currently in the plan, while cautioning such developments take time.
On Venezuela specifically, Darren reiterated comments that under current fiscal and legal structures it is not investable, but said there are opportunities to address those issues over time. He also said ExxonMobil offered to send a technical team to assess and share perspectives with the U.S. administration and remains committed to doing so.
LNG, chemicals, and emerging technology-driven businesses
On LNG, management said Golden Pass was mechanically completed in the fourth quarter of last year and has moved into commissioning and startup. Darren said he expects first LNG to be produced in very early March. He also discussed Mozambique and Papua New Guinea, stating ExxonMobil will only progress projects that are cost competitive and advantaged on the global cost curve. He said he expects Mozambique could reach a final investment decision in the back half of this year “if things go kind of to plan,” adding that delays under force majeure were used to further reduce costs and improve project design.
ExxonMobil also highlighted technology-driven initiatives. Darren said Proxxima Systems more than tripled capacity during the year, with applications across rebar, coatings, automotive, and oil and gas. He described Proxxima-based rebar as delivering a 40% improvement in installation efficiency versus steel and cited use at the Kearl site after qualification work by the company’s technology team in India.
In carbon materials, he said ExxonMobil’s advanced battery anode graphite program showed “exceptional performance,” citing 30% faster charging, up to 3% higher available capacity, and up to four times battery life. In response to a question on batteries and lithium, Darren said ExxonMobil is working with OEMs on battery applications and is focused on building production capacity at scale in a cost-competitive way. On lithium, he said the company sees promise but is working to demonstrate technology that can bring lithium to market at costs competitive with existing producers’ cash costs.
In Product Solutions, Darren said the company is strengthening the portfolio by converting “lower-value molecules into higher-value products,” and he pointed to a Singapore Resid upgrade project that demonstrated full-capacity performance using proprietary catalyst technology to convert low-value fuel oil into higher-value lubricants and diesel.
Asked about base chemicals, Darren said demand remains robust globally, but margins are pressured by capacity additions on the supply side. He said ExxonMobil’s approach centers on high-value products, cost reductions, and leveraging feed advantages and centralized organizations to improve competitiveness versus marginal suppliers.
Carbon capture network and enterprise systems overhaul
On carbon capture, Darren said ExxonMobil made progress on the Rouge permit, brought its first third-party CCS project online capable of storing up to 2 million tons per year, and secured its seventh CCS contract. He said these projects collectively represent about 9 million tons per year of sequestered CO2. Addressing interest from data centers, Darren said ExxonMobil is in “very serious, substantive conversations” with hyperscalers and described gas-fired power with carbon capture as the only viable near- to medium-term option at scale. He said he hopes those discussions could lead to a project announcement by year-end.
ExxonMobil also provided details on an enterprise-wide process and data platform overhaul. Darren said the company previously operated more than 10 ERP systems with differing data constructs, making it difficult to leverage scale. He said the new approach will create “one data construct for the entire corporation,” enabling faster decisions and broader AI adoption.
Outgoing CFO Kathy provided additional specifics, saying ExxonMobil historically had more than 65 million lines of custom SAP code. She said the redesign aims to simplify operations, including 97% fewer profit centers and 70% fewer cost centers, and described early wins implementing group reporting, BlackLine, and supply chain technology that supports automation and AI-enabled logistics planning.
The call also included management commentary on leadership transition, with Darren and others recognizing Kathy’s tenure and noting Neil Hansen is stepping into the CFO role.
About Exxon Mobil (NYSE:XOM)
Exxon Mobil Corporation (NYSE: XOM) is an integrated oil and gas company engaged in the exploration, production, refining, distribution and marketing of petroleum products and the manufacture and sale of petrochemicals. Its operations span the full energy value chain, including upstream exploration and development of crude oil and natural gas; midstream transportation and storage; and downstream refining, product distribution and retail. The company also produces a broad range of chemical products for industrial and consumer applications.
ExxonMobil markets fuels and lubricants under well-known brands such as Exxon, Mobil and Esso, and its Mobil 1 motor oil is a prominent consumer product.
