Is ExxonMobil's cost management improving in recent quarters?

ExxonMobil's cost management has shown signs of improvement in recent quarters, as evidenced by several key metrics and strategic initiatives:

1. **Net and Operating Margins**: The company's net margin stood at 10.03% and operating margin at 13.98% as of December 31, 2024. These margins indicate the company's profitability relative to its revenues and operating expenses. Given that ExxonMobil has reported combined net margins of 56% with its partners in Guyana, which is significantly higher than the 49% earned by Nvidia, it suggests that the company is managing its costs effectively to maintain such high profit margins.

|code|Ticker|Name|Date|Operating Profit Margin|Net Profit Margin|market_code|
|---|---|---|---|---|---|---|
|XOM|XOM.N|Exxon Mobil|2024 Q1|14.88752211643778|10.3102|169|
|XOM|XOM.N|Exxon Mobil|2024 Q2|14.78003667474722|10.2967|169|
|XOM|XOM.N|Exxon Mobil|2024 Q3|14.675438365788871|10.1849|169|
|XOM|XOM.N|Exxon Mobil|2024 Q4|13.98029091637227|10.0299|169|

2. **Cost Savings and Structural Changes**: ExxonMobil has been focusing on strategic cost savings and operational efficiencies. The company has reported structural cost savings of over $11 billion year-to-date compared to 2019. This indicates a proactive approach towards cost management, which is likely contributing to improved margins.
3. **Share Buybacks and Capital Allocation**: The company has announced plans to boost share buybacks to $20 billion per year from the time it closes its Pioneer Natural Resources Co. acquisition in the first half of next year through 2025, up from $17.5 billion in 2023. This aggressive share buyback program suggests confidence in the company's cash flow generation and implies that the company is managing its costs and cash flow effectively.
4. **Innovation and Sustainability**: ExxonMobil's investments in high-value products and lower-emission fuels reflect its commitment to innovation and sustainability. These strategic investments not only contribute to the company's growth but also suggest a forward-thinking approach to cost management by positioning the company for future profitability in emerging markets.
5. **Government Partnerships and Profitability**: The company's profitable fiscal year in Guyana, where it leads a consortium with a combined net margin of 56%, highlights the profitability of its low-cost assets. This underscores effective cost management and the ability to capitalize on favorable market conditions.

In conclusion, ExxonMobil's cost management is improving, as evidenced by the company's financial metrics, strategic cost-saving initiatives, share buybacks, and strategic investments in lower-emission fuels. These factors collectively suggest that the company is effectively managing its costs and positioning itself for sustained profitability in a competitive market.