7. Exxon Mobil Corporation (NYSE:XOM)
Q3 2024 buybacks: $5.51 billion
Number of Hedge Fund Holders: 104
Exxon Mobil Corporation (NYSE:XOM) is one of the world’s largest energy companies, engaged in the exploration, production, refining, and distribution of oil, natural gas, and petrochemicals. With a global footprint, XOM operates across the entire energy supply chain, from upstream extraction to downstream refining and advanced chemical manufacturing. The company is also investing in lower-emission technologies, including carbon capture, hydrogen, and biofuels, as part of its long-term energy transition strategy.
Exxon Mobil Corporation (NYSE:XOM) reported strong earnings of $8.6 billion in Q3 2024, marking one of their best third quarters in the past decade. The company’s transformation efforts have significantly improved its earnings power, with Energy Products segment showing year-to-date earnings roughly double compared to 2019 on a constant margin basis. Production grew to 4.6 million oil equivalent barrels per day, representing a 24% increase YoY. During the same quarter, XOM repurchased $5.51 billion of its own stock, which we believe represents a reasonable return of its record earnings to investors – the energy volumes in the US are still significantly lower than in the previous decades, and the tailwinds from the executive orders of the new administration had not kicked in at that time. For the full year 2024, the company generated cash flow from operations of $55 billion, which is the third highest in a decade – management mentions the funds will be used to finance profitable growth, maintain financial strength, and reward shareholders, which leads us to the conclusion that XOM is able to maintain a perfect balance between reinvestments and capital returns.