- Cash flow reflects durability of the
integrated business in a difficult environment
- Steady progress on investment plans;
Capex down 33 percent
- Strong Chemical results highlight
competitive advantages that drive value growth
Exxon Mobil Corporation (NYSE:XOM):
First Quarter 2016
2015 % Earnings Summary
(Dollars in millions, except per share data) Earnings
1,810
4,940 -63 Earnings Per Common Share Assuming Dilution
0.43
1.17 -63 Capital and Exploration Expenditures
5,127
7,704 -33
Exxon Mobil Corporation (NYSE:XOM) today announced
estimated first quarter 2016 earnings of $1.8 billion, or
$0.43 per diluted share, compared with $4.9 billion a year
earlier. The impacts of sharply lower commodity prices and weaker
refining margins were partly offset by strong Chemical results.
“The organization continues to respond effectively to
challenging industry conditions, capturing enhancements to
operational performance and creating margin uplift despite low
prices,” said Rex W. Tillerson, chairman and chief executive
officer. “The scale and integrated nature of our cash flow provide
competitive advantage and support consistent strategy
execution.”
The corporation is making steady progress on its investment
plans. New project capacity additions drove liquids production up
11.5 percent in the quarter, or 261,000 barrels per day. Total
Upstream volumes increased to 4.3 million oil-equivalent barrels
per day, while capital and exploration expenditures were reduced 33
percent to $5.1 billion.
Chemical earnings increased 38 percent to $1.4 billion on
stronger margins and higher sales volumes. The business is
capturing increased specialty and commodity product demand along
with significant cost benefits from both gas and liquids cracking
advantages at our integrated sites. The Downstream segment earned
$906 million as global gasoline demand remains relatively
strong.
During the quarter, the corporation distributed
$3.1 billion in dividends to shareholders.
First Quarter Highlights
- Earnings of $1.8 billion decreased 63
percent from the first quarter of 2015.
- Earnings per share were $0.43 assuming
dilution.
- Cash flow from operations and asset
sales was $5 billion, including proceeds associated with asset
sales of $177 million.
- Capital and exploration expenditures
were $5.1 billion, down 33 percent from the first quarter of
2015.
- Oil equivalent production increased 1.8
percent from the first quarter of 2015, with liquids up 11.5
percent and gas down 9.3 percent.
- The corporation distributed $3.1
billion to shareholders in the first quarter of 2016.
- Dividends per share of $0.73 increased
5.8 percent compared with the first quarter of 2015.
First Quarter 2016 vs. First Quarter 2015
Upstream earnings declined $2.9 billion from the first
quarter of 2015, to a loss of $76 million. Lower liquids and gas
realizations decreased earnings by $2.6 billion. Sales mix
effects decreased earnings by $100 million. All other items
decreased earnings by $250 million, including lower gains on
asset sales and less favorable tax items partly offset by lower
expenses.
On an oil-equivalent basis, production increased
1.8 percent from the first quarter of 2015. Liquids production
totaled 2.5 million barrels per day, up 261,000 barrels
per day, while natural gas production was 10.7 billion cubic
feet per day, down 1.1 billion cubic feet per day from 2015.
Project ramp-up was partly offset by regulatory restrictions in the
Netherlands, field decline and asset management impacts.
The U.S. Upstream operations recorded a loss of
$832 million, compared to a loss of $52 million in the
first quarter of 2015. Non-U.S. Upstream earnings were
$756 million, down $2.2 billion from the prior year.
Downstream earnings were $906 million, down
$761 million from the first quarter of 2015. Weaker margins
decreased earnings by $860 million. Volume and mix effects
increased earnings by $10 million. All other items, primarily
favorable foreign exchange effects, increased earnings by
$90 million. Petroleum product sales of 5.3 million
barrels per day were 480,000 barrels per day lower than the prior
year’s first quarter.
Earnings from the U.S. Downstream were $187 million, down
$380 million from the first quarter of 2015. Non-U.S.
Downstream earnings of $719 million were $381 million
lower than last year.
Chemical earnings of $1.4 billion were $373 million
higher than the first quarter of 2015. Improved margins increased
earnings by $250 million. Favorable volume and mix effects
increased earnings by $80 million. All other items, primarily
lower expenses, increased earnings by $40 million. First
quarter prime product sales of 6.2 million metric tons were
104,000 metric tons higher than last year's first quarter.
Corporate and financing expenses were $375 million for the
first quarter of 2016, down $189 million from the first quarter of
2015 due to favorable tax items.
During the first quarter of 2016, Exxon Mobil Corporation
purchased 9 million shares of its common stock for the
treasury at a gross cost of $726 million. These shares were
acquired to offset dilution in conjunction with the company’s
benefit plans and programs. The corporation will continue to
acquire shares to offset dilution in conjunction with its benefit
plans and programs, but does not currently plan on making purchases
to reduce shares outstanding.
ExxonMobil will discuss financial and operating results and
other matters during a webcast at 8:30 a.m. Central Time on
April 29, 2016. To listen to the event or access an archived
replay, please visit www.exxonmobil.com.
Cautionary Statement
Statements relating to future plans, projections, events or
conditions are forward-looking statements. Actual financial and
operating results, including project plans, costs, timing, and
capacities; capital and exploration expenditures; resource
recoveries; and share purchase levels, could differ materially due
to factors including: changes in oil or gas prices or other market
or economic conditions affecting the oil and gas industry,
including the scope and duration of economic recessions; the
outcome of exploration and development efforts; changes in law or
government regulation, including tax and environmental
requirements; the impact of fiscal and commercial terms; changes in
technical or operating conditions; and other factors discussed
under the heading "Factors Affecting Future Results" in the
“Investors” section of our website and in Item 1A of ExxonMobil's
2015 Form 10-K. We assume no duty to update these statements as of
any future date.
Frequently Used Terms
This press release includes cash flow from operations and asset
sales, which is a non-GAAP financial measure. Because of the
regular nature of our asset management and divestment program, we
believe it is useful for investors to consider proceeds associated
with the sales of subsidiaries, property, plant and equipment, and
sales and returns of investments together with cash provided by
operating activities when evaluating cash available for investment
in the business and financing activities. A reconciliation to net
cash provided by operating activities is shown in Attachment II.
References to quantities of oil or natural gas may include amounts
that we believe will ultimately be produced, but that are not yet
classified as “proved reserves” under SEC definitions. Further
information on ExxonMobil's frequently used financial and operating
measures and other terms including “prime product sales” is
contained under the heading "Frequently Used Terms" available
through the “Investors” section of our website at
exxonmobil.com.
Reference to Earnings
References to corporate earnings mean net income attributable to
ExxonMobil (U.S. GAAP) from the consolidated income statement.
Unless otherwise indicated, references to earnings, Upstream,
Downstream, Chemical and Corporate and Financing segment earnings,
and earnings per share are ExxonMobil's share after excluding
amounts attributable to noncontrolling interests.
The term “project” as used in this release can refer to a
variety of different activities and does not necessarily have the
same meaning as in any government payment transparency reports.
Exxon Mobil Corporation has numerous affiliates, many with names
that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For
convenience and simplicity, those terms and terms such as
Corporation, company, our, we, and its are sometimes used as
abbreviated references to specific affiliates or affiliate groups.
Similarly, ExxonMobil has business relationships with thousands of
customers, suppliers, governments, and others. For convenience and
simplicity, words such as venture, joint venture, partnership,
co-venturer, and partner are used to indicate business and other
relationships involving common activities and interests, and those
words may not indicate precise legal relationships.
Estimated Key Financial and Operating Data
Attachment I Exxon Mobil Corporation
First Quarter 2016 (millions of dollars, unless noted)
First Quarter 2016
2015 Earnings / Earnings Per Share Total
revenues and other income
48,707 67,618 Total costs and
other deductions
46,977 60,983 Income before income taxes
1,730 6,635 Income taxes1
(51 ) 1,560 Net
income including noncontrolling interests
1,781 5,075 Net
income attributable to noncontrolling interests
(29 )
135 Net income attributable to ExxonMobil (U.S. GAAP)
1,810
4,940 Earnings per common share (dollars)
0.43 1.17
Earnings per common share - assuming
dilution (dollars)
0.43 1.17
Other Financial Data
Dividends on common stock Total
3,054 2,910 Per common share
(dollars)
0.73 0.69 Millions of common shares
outstanding At March 31
4,147 4,181 Average - assuming
dilution
4,178 4,211 ExxonMobil share of equity at
March 31
172,187 171,227 ExxonMobil share of capital
employed at March 31
217,242 206,391 Income taxes1
(51 ) 1,560 Sales-based taxes
4,815 5,530 All
other taxes
6,731 7,274 Total taxes
11,495 14,364
ExxonMobil share of income taxes of equity
companies
480 961 1 Excludes ExxonMobil share of equity company income
taxes noted above. Including income tax from equity companies,
ExxonMobil's effective tax rate was 19 percent in the first quarter
of 2016.
Attachment II Exxon
Mobil Corporation First Quarter 2016 (millions of
dollars)
First Quarter
2016 2015 Earnings (U.S.
GAAP) Upstream United States
(832 ) (52 )
Non-U.S.
756 2,907 Downstream United States
187 567
Non-U.S.
719 1,100 Chemical United States
581 605
Non-U.S.
774 377 Corporate and financing
(375
) (564 ) Net income attributable to ExxonMobil
1,810
4,940
Cash flow from operations and asset
sales (billions of dollars) Net cash provided by operating
activities (U.S. GAAP)
4.8 8.0 Proceeds associated with
asset sales
0.2 0.5 Cash flow from operations and asset
sales
5.0 8.5
Attachment III
Exxon Mobil Corporation First Quarter 2016
First Quarter 2016
2015
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil, thousand barrels per day
(kbd)
United States
500 472 Canada / South America
476 368
Europe
218 200 Africa
565 519 Asia
726 678
Australia / Oceania
53 40 Worldwide
2,538 2,277
Natural gas production available for sale,
million cubic feet per day (mcfd)
United States
3,160 3,220 Canada / South America
258
310 Europe
2,775 3,447 Africa
2 2 Asia
3,794
4,282 Australia / Oceania
735 567 Worldwide
10,724
11,828 Oil-equivalent production (koebd)1
4,325
4,248
1 Gas converted to oil-equivalent at 6
million cubic feet = 1 thousand barrels.
Attachment IV Exxon Mobil
Corporation First Quarter 2016 First
Quarter 2016 2015
Refinery throughput (kbd) United States
1,602 1,807 Canada
398 393 Europe
1,269 1,473 Asia Pacific
729
681 Other
187 192 Worldwide
4,185 4,546
Petroleum product sales (kbd) United States
2,218 2,612
Canada
476 492 Europe
1,429 1,536 Asia Pacific
766 748 Other
445 426 Worldwide
5,334 5,814
Gasolines, naphthas
2,211 2,363 Heating oils,
kerosene, diesel
1,699 1,994 Aviation fuels
402 410
Heavy fuels
386 395 Specialty products
636 652
Worldwide
5,334 5,814
Chemical prime product sales, thousand
metric tons (kt)
United States
2,400 2,321 Non-U.S.
3,773 3,748
Worldwide
6,173 6,069
Attachment V
Exxon Mobil Corporation First Quarter 2016 (millions
of dollars)
First Quarter
2016 2015 Capital and
Exploration Expenditures Upstream United States
1,075
2,120 Non-U.S.
2,904 4,297 Total
3,979 6,417
Downstream United States
189 295 Non-U.S.
339 326
Total
528 621 Chemical United States
434 430 Non-U.S.
177 224 Total
611 654 Other
9 12
Worldwide
5,127 7,704
Exploration expenses charged to income
included above
Consolidated affiliates United States
108 37 Non-U.S.
246 274 Equity companies - ExxonMobil share United States
- 3 Non-U.S.
(10 ) 8 Worldwide
344 322
Attachment VI Exxon Mobil
Corporation Earnings $
Millions $ Per Common Share1
2012
First Quarter 9,450 2.00 Second Quarter 15,910 3.41 Third Quarter
9,570 2.09 Fourth Quarter 9,950 2.20 Year 44,880 9.70
2013
First Quarter 9,500 2.12 Second Quarter 6,860 1.55 Third Quarter
7,870 1.79 Fourth Quarter 8,350 1.91 Year 32,580 7.37
2014
First Quarter 9,100 2.10 Second Quarter 8,780 2.05 Third Quarter
8,070 1.89 Fourth Quarter 6,570 1.56 Year 32,520 7.60
2015
First Quarter 4,940 1.17 Second Quarter 4,190 1.00 Third Quarter
4,240 1.01 Fourth Quarter 2,780 0.67 Year 16,150 3.85
2016
First Quarter 1,810 0.43 1 Computed using the average number of
shares outstanding during each period.
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