HOUSTON, Jan 31 - Exxon Mobil ( XOM ) on Friday beat

Wall Street's estimate for fourth-quarter profit as higher oil

and gas production offset lower oil prices and weaker refining

margins.

Fourth quarter profit was $7.39 billion. Profit per share

was $1.67, beating analyst estimates of $1.56, according to LSEG

data.

The No. 1 U.S. oil producer reported total earnings of

$33.46 billion for full-year 2024, down from $38.57 billion the

year earlier.

The company became the largest oil producer in the Permian

basin in 2024, the biggest U.S. oilfield, after closing its

acquisition of Pioneer Natural Resources in May.

Exxon's low production costs in the basin and its lucrative

and prolific projects in Guyana have bolstered the company's

profits despite lower oil prices and a decline in profits for

making fuel.

The company signaled earlier this month that sharply lower

oil refining margins would cut earnings by between $300 million

and $700 million compared to the third quarter.

The startup of new oil refineries by other companies in Asia

and Africa led to higher global fuel supply, even as demand for

gasoline and diesel lagged expectations.

The refining business remains under pressure as the

additional supply enters the market, said Exxon Chief Financial

Officer Kathryn Mikells in an interview.

"That's really what we're watching as we look ahead to

2025," she said.

The company previously said that impairments across the

business would cost about $600 million in the fourth quarter.

The charges come from selling non-strategic assets, including a

joint venture in Nigeria, Mikells said.

The largest U.S. oil producer continues to expect a decision

by September in its arbitration challenge to Chevron's

acquisition of oil producer Hess, she said. If Chevron proceeds,

it would gain a foothold in Guyana's oil projects.

While the deal has been approved by U.S. regulators, Exxon

and CNOOC, which are Hess' partners in the Guyana oil joint

venture, say they have a contractual first right to buy Hess'

stake.

Shareholder returns via buybacks and dividends totaled $36

billion in 2024, up from $32 billion the previous year. The

shareholder distributions, a cornerstone of Big Oil's strategy

to court investors, were covered by Exxon's free cash flow of

$36.2 billion.