Exxon Mobil's fourth-quarter earnings surpass expectations due to rising oil and gas prices, causing shares to increase.

During the fourth quarter, Exxon's revenue increased by more than 80% year over year due to a rise in oil and gas prices, the company announced on Tuesday. As a result of its improved financial standing, Exxon will begin repurchasing stock during the first quarter.

On Tuesday, the stock price increased by more than 6% and reached its highest level since April 2019.

The oil giant's earnings per share exceeded analysts' expectations during the period, while its revenue fell short of expectations.

In the third quarter of 2021, the company earned $1.58 per share on an adjusted basis, compared to $46.54 billion in sales, while in the same quarter one year ago, the company earned 3 cents per share, excluding items on sales of $46.54 billion.

In the most recent quarter, Exxon recorded $48 billion in cash flow from operating activities, marking the highest amount since 2012. Additionally, the company paid off $9 billion in debt during the fourth quarter, bringing the total debt reduction to $20 billion throughout the year. As a result, Exxon's debt level has returned to its pre-pandemic state.

The company announced that it will commence purchasing stock in the first quarter of 2022, as per its previously declared plan to buy back up to $10 billion within the next 12 to 24 months.

The company announced on Monday that it will restructure its business into three divisions and move its headquarters from Irving, Texas to Houston, beginning April 1. The three divisions will be Upstream, production solutions, and low-carbon solutions. The company stated that the streamlined operations will improve effectiveness and lower costs.

Darren Woods, Exxon CEO, stated in a Tuesday announcement that the company's new streamlined business structure is a step towards strengthening its competitive advantages and increasing shareholder value. The company has made significant progress in 2021 and its future plans position it to excel in cash flow and earnings growth, operational efficiency, and the energy transition.

The recovery in oil and gas prices has benefitted Exxon. Crude is currently trading at its highest level in over seven years, with Brent crude settling above $90 for the first time since October 2014 on Friday.

In 2021, Exxon spent $16.6 billion, which was in line with its guidance, and for 2022, the company anticipates spending between $21 billion and $24 billion.

Shares of Exxon are up nearly 80% over the last year.