In a time when tech stocks are crashing, the FAAMG "generals" are in danger of keeling over, and most stocks are on the cusp of or deep inside a bear market, one sector has been a shining light (of green) in an otherwise dismal (and red) landscape: energy.
... and no major company has benefited more from the energy renaissance than Exxon, which earlier today reported blockbuster earnings, solid guidance and threw in a $10 billion buyback to boot.
Unlike its comp Chevron which whiffed last week, Exxon released knockout Q4 earning, when it reported a fourth-quarter profit of $8.87 billion, the largest since 2014, while aggressive spending cuts helped the oil giant fully capitalize on surging energy demand and prices which allowed the top U.S. oil producer to swim in cash thanks to Biden's "green" agenda which has been a disaster for the US consumer but a gift for US energy producers. As a result, the company generated the highest cash from operations since 2012 and distributed a whopping $15 billion to shareholders in 2021. The company slashed spending after demand cratered two years ago with earnings in recent quarters jumping above prior levels. The results come a day after Exxon disclosed yet another belt-tightening move, this time involving shuttering its corporate headquarters in suburban Dallas and consolidating those offices near Houston.
To be sure, and as the company's earnings and soaring stock price confirm, whatever Exxon is doing is working:...
- Earnings have soared to $23 billion, thanks to bottom-line savings of $2 billion.
- CapEx was contained to just $17 billion, far below historical levels.
- The company's oil