ExxonMobil Corporation (XOM - Analyst Report) posted fourth-quarter 2014 earnings of $1.56 per share, beating the Zacks Consensus Estimate of $1.33. The bottom line, however, decreased from $1.91 in the year-ago quarter.

A resilient integrated business model enabled the energy behemoth to beat past estimates in the current environment of relentlessly falling commodity prices. In the reported quarter, Exxon witnessed lower commodity prices in the Upstream business alongside higher planned maintenance costs in the Downstream business. These were partially offset by improved Chemical margins.
 

Total revenue in the quarter decreased from $110.9 billion in the year-ago quarter to $87.3 billion. The top line also came below the Zacks Consensus Estimate of $92.7 billion.

Full-year 2014 earnings came in at $7.60 per share, ahead of the Zacks Consensus Estimate of $7.51 and higher than the year-ago earnings of $7.37 per share.

Total revenue in the full year decreased to $411.9 billion from $438.3 billion in 2013. It also came below the Zacks Consensus Estimate of $413.5 billion.

Operational Performance

Upstream: Quarterly earnings for the segment were $5.5 billion, down $1.3 billion year over year. The decrease stemmed from lower realizations, partly compensated by a favorable volume mix.

Production averaged 4.054 million barrels of oil-equivalent per day (MMBOE/d), down 3.8% year over year. Liquid production decreased 2.4% year over year to 2.182 million barrels per day. Natural gas production was 11,234 MCF/d (millions of cubic feet per day), down 653 MCF/d from 2013.

Downstream: The segment recorded profits of $497 million in the fourth quarter, down $419 million year over year, mainly due to lower U.S. refining margins, higher expenses and unfavorable tax effects.

ExxonMobil's refinery throughput averaged 4.3 million barrels per day (MMBPD), down from the year-earlier level of 4.5 MMBPD.

Chemical: This unit contributed approximately $1.2 billion to the company's profits, up $317 million from the year-earlier quarter. The upside was mainly backed by higher margins stemming from lower feedstock costs.

Financials
 

During the quarter, ExxonMobil generated cash flow from operations and asset sales of $7.7 billion. The company returned $5.9 billion to shareholders through dividends and share repurchases. Capital spending increased 5% year over year to $10.5 billion.

Zacks Rank

ExxonMobil currently has a Zacks Rank #5 (Strong Sell). For investors interested in the same sector, better-ranked stocks include Golar LNG Partners LP (GMLP - Snapshot Report), Transocean Partners LLC (RIGP - Snapshot Report) and World Fuel Services Corp. (INT - Snapshot Report). All of these have a Zacks Rank #1 (Strong Buy) and appear more rewarding for the short term.