- Positive U.S. Upstream earnings of $429
million
- Highest quarterly cash flow from
operations and asset sales since 2014
- Rapid response and recovery from Papua
New Guinea earthquake
Exxon Mobil Corporation (NYSE:XOM):
First First Fourth
Quarter Quarter Quarter
2018
2017 % 2017 %
Earnings Summary (Dollars in millions, except per share
data) Earnings (U.S. GAAP)
4,650 4,010 16 8,380 -45 U.S. Tax
Reform Enactment
- - 5,942 Asset Impairments
- -
(1,294 ) Earnings Excluding U.S. Tax Reform Enactment and
Impairments
4,650 4,010 16 3,732 25 Earnings Per
Common Share Assuming Dilution
1.09 0.95 15 1.97 -45
Capital and Exploration Expenditures
4,867 4,169 17 8,999
-46
Exxon Mobil Corporation today announced estimated first quarter
2018 earnings of $4.7 billion, or $1.09 per share assuming
dilution, compared with $4 billion a year earlier. Cash flow
from operations and asset sales was $10 billion, including
proceeds associated with asset sales of $1.4 billion. During
the quarter, the corporation distributed $3.3 billion in dividends
to shareholders. Capital and exploration expenditures were
$4.9 billion, up 17 percent from the prior year.
Oil-equivalent production was 3.9 million barrels per day,
down 6 percent from the first quarter of 2017. Excluding
entitlement effects and divestments, oil-equivalent production was
down 3 percent from the first quarter of 2017.
“Increased commodity prices, coupled with a focus on operating
efficiently and strengthening our portfolio, resulted in higher
earnings and the highest quarterly cash flow from operations and
asset sales since 2014,” said Darren W. Woods, chairman and chief
executive officer. “Through new discoveries and acquired acreage,
we’ve positioned our Upstream portfolio well for future growth. We
also made good progress on our plans to improve the production mix
and grow premium product sales in the Downstream and Chemical
businesses.”
First Quarter 2018 Business Highlights
Upstream:
- Crude and natural gas prices
strengthened in the first quarter. ExxonMobil’s crude realizations
were impacted by an increased discount in Western Canada, notably
for heavy crudes, as Canadian supply exceeded pipeline and rail
capacity. The logistics constraints in Canada supported the
decision to accelerate Syncrude turnaround activities into the
first quarter.
- Natural gas prices were supported by
strong seasonal demand with colder weather across Europe and the
U.S. and higher crude-linked LNG prices.
- As expected, higher prices reduced
entitlement volumes.
- Following a severe earthquake in Papua
New Guinea on February 26, operations at the PNG LNG project were
temporarily shut down while the company responded with humanitarian
relief for impacted communities and worked to fully restore
operations. The project safely resumed LNG production ahead of
schedule in mid-April. The impact of the earthquake reduced
earnings by $80 million and production by 25,000 oil-equivalent
barrels per day.
- The Hebron field in Canada, which
started up last year, has ramped up to produce 14,000
oil-equivalent barrels per day in the first quarter with well
performance exceeding expectations.
- Development of the company’s U.S.
unconventional acreage is progressing with 27 operated rigs in the
Permian and four operated rigs in the Bakken. Permian and Bakken
unconventional production has experienced 18 percent growth
year-over-year.
Downstream:
- Global refining margins remained
generally strong, especially in North America. Petroleum product
demand was seasonally lower.
- Overall manufacturing reliability
improved from one-time fourth quarter events. A significant focus
during the quarter was on returning the refinery in Joliet, Ill.,
back to full capacity in March, capturing attractive margins on
weaker Canadian crude prices.
Chemical:
- ExxonMobil continued to make
significant progress in growing the business. The integration of
Jurong Aromatics Corporation into the existing Singapore business
is progressing as planned, contributing 340,000 metric tons of
sales during the quarter.
- The North America Growth project is
also progressing well with the new polyethylene lines in Mont
Belvieu, Texas, increasing sales volumes in the quarter.
- As expected, incremental activity
associated with startup and commissioning of these new facilities
increased expenses during the quarter.
- Within the base business, large planned
turnarounds in the Middle East and the Gulf Coast were successfully
completed.
Strengthening the Portfolio
- ExxonMobil announced its seventh oil
discovery offshore Guyana with the completion of the Pacora-1
exploration well. The well encountered approximately 65 feet (20
meters) of high-quality, oil-bearing sandstone reservoir.
- During the quarter, the company
increased its holdings in Brazil’s pre-salt basins after winning
eight additional exploration blocks, six of them to be operated by
ExxonMobil, during the latest bid round. The company added more
than 640,000 net acres to its existing deepwater portfolio offshore
Brazil, and is now one of the largest acreage holders among
international oil companies in the country.
- ExxonMobil announced that its estimate
of the size of the natural gas resource at the P’nyang field in
Papua New Guinea (PNG) has increased to 4.36 trillion cubic feet of
gas, an 84 percent increase from the previous assessment completed
in 2012. This increase, based on an independent recertification
study, supports a potential three-train expansion concept of the
PNG LNG plant.
- ExxonMobil sold its 50 percent
ownership interest in the Scarborough gas field, offshore Western
Australia, to Woodside Petroleum Ltd. In the Downstream, the
company closed several divestments, including distribution and
marketing assets in South America, and retail sites in Europe.
- During the quarter, ExxonMobil added to
its exploration portfolio offshore West Africa by signing an
agreement with the government of Ghana to acquire exploration and
production rights for the Deepwater Cape Three Points block.
ExxonMobil also signed an agreement with a subsidiary of Galp
Energia, SGPS, S.A. for a 40 percent farm-in to a deepwater license
offshore Namibia. Both agreements are subject to government
approvals.
Investing for Growth
- The company began commissioning its new
ethane cracker in Baytown, Texas. The cracker, expected to start up
mid-year 2018, will produce 1.5 million metric tons per year of
ethylene feedstock for the new polyethylene lines at the company’s
plastics plant in Mont Belvieu, Texas.
- The company also continued its entry
into Mexico’s fuels market with the opening of new Mobil-branded
service stations operated by Grupo Orsan and Grupo Combured. The
new stations will be supplied with gasoline and diesel produced by
ExxonMobil’s refineries in Texas.
Advancing Innovative Technologies and Products
- During the quarter, ExxonMobil and
Synthetic Genomics, Inc. announced a new phase in their joint algae
biofuel research program that could lead to the technical ability
to produce 10,000 barrels of algae biofuel per day by 2025.
Earnings and Volume
Summary Millions of Dollars 1Q
1Q (unless noted)
2018 2017 Change
Comments Upstream U.S. 429 (18) +447 Higher
liquids prices, partially offset by higher expenses Non-U.S. 3,068
2,270 +798 Higher prices and the gain on the Scarborough sale ($366
million), partially offset by lower volumes, including the impact
from PNG earthquake, and higher expenses
Total 3,497
2,252 +1,245 Prices +$1,430 million, volumes / mix
-$190 million, other +$10 million Production (koebd) 3,889
4,151 -262 Liquids -117 kbd: lower volumes from decline,
entitlements and divestments, partially offset by growth in North
America
Gas -870 mcfd: higher downtime, including
impacts from PNG earthquake, lower entitlements and base
decline
Downstream U.S. 319 292 +27 Higher margins and lower
turnaround costs, partially offset by lower throughput (mainly
Joliet) Non-U.S. 621 824 -203 Higher expenses, lower divestment
gains, and lower margins
Total 940 1,116
-176 Margins -$30 million, volumes / mix -$60 million,
other -$90 million Petroleum Product Sales (kbd) 5,432 5,395
+37
Chemical U.S. 503 529 -26 Higher growth-related
expenses and lower margins, partially offset by higher volumes
Non-U.S. 508 642 -134 Lower margins and higher growth-related
expenses, partially offset by favorable foreign exchange impacts
and higher volumes
Total 1,011 1,171
-160 Margins -$270 million, volumes / mix +$120 million,
other -$10 million Prime Product Sales (kt) 6,668 6,072 +596
Project growth and acquisitions
Corporate and
financing (798) (529) -269 Primarily
impact of lower U.S. tax rate, higher pension and financing related
costs; in line with expectations
Fourth Quarter 2017 Earnings
Millions of Dollars 4Q U.S. Tax Asset
4Q 2017
2017 Reform Impairments
Adjusted Upstream
8,352 7,122 (1,288 )
2,518 Downstream
1,564 618 (6 )
952 Chemical 1,270 335 -
935 Corporate and financing (2,806 )
(2,133 ) -
(673 ) Total 8,380
5,942 (1,294 )
3,732
Earnings and Volume Summary Millions
of Dollars 1Q 4Q 2017 (unless noted)
2018
Adjusted Change Comments
Upstream U.S. 429 (60) +489 Higher prices and lower expenses
Non-U.S. 3,068 2,578 +490 Higher prices, the gain on the
Scarborough sale, and lower operating expenses, partially offset by
the absence of the Norway divestment and lower volumes
Total
3,497 2,518 +979 Prices +$640 million,
volumes / mix -$130 million, other +$470 million Production
(koebd) 3,889 3,991 -102 Liquids -35 kbd: higher downtime from
Syncrude turnaround and lower volumes from entitlements and
divestments, partially offset by growth
Gas -403 mcfd: lower entitlements and
higher downtime, including impacts from PNG earthquake, partially
offset by higher demand
Downstream U.S. 319 306 +13 Higher volumes and lower
expenses, partially offset by lower margins Non-U.S. 621 646 -25
Absence of the gain on sale of assets in Norway and lower volumes,
partially offset by lower expenses
Total 940
952 -12 Margins -$200 million, volumes / mix -$40
million, other +230 million Petroleum Product Sales (kbd) 5,432
5,624 -192
Chemical U.S. 503 442 +61 Lower expenses
and favorable tax effects, partially offset by lower margins
Non-U.S. 508 493 +15 Favorable foreign exchange impacts, partially
offset by lower volumes and lower margins
Total 1,011
935 +76 Margins -$30 million, volumes / mix -$30
million, other +$140 million Prime Product Sales (kt) 6,668
6,782 -114
Corporate and financing (798)
(673) -125 Primarily lower U.S. tax rate, higher
pension and financing related costs
Cash Flow from Operations and Asset Sales
Millions of Dollars 1Q 2018
Comments Net income including noncontrolling interests 4,783
Includes $133 million for noncontrolling interests Depreciation
4,470 Changes in working capital 351 Other (1,085 ) Timing of
equity company dividends versus earnings
Cash Flow from
Operations (U.S. GAAP) 8,519 Asset sales 1,441
Cash Flow from Operations and Asset
Sales
9,960
First Quarter 2018 Financial Updates
During the first quarter of 2018, Exxon Mobil Corporation
purchased 5 million shares of its common stock for the
treasury at a gross cost of $425 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.
Effective January 1, 2018, ExxonMobil adopted the Financial
Accounting Standards Board’s standard, Revenue from Contracts with
Customers (Topic 606), as amended, using the Modified Retrospective
method. ExxonMobil also adopted the Financial Accounting Standards
Board’s Update, Financial Instruments – Overall (Subtopic 825-10):
Recognition and Measurement of Financial Assets and Financial
Liabilities. ExxonMobil also adopted the Financial Accounting
Standards Board’s Update, Compensation – Retirement Benefits (Topic
715): Improving the Presentation of Net Periodic Pension Cost and
Net Periodic Postretirement Benefit Cost.
The adoption of these standards did not have a material impact
on the corporation’s financial statements. The cumulative effect of
adoption of the new standards was de minimis.
ExxonMobil will discuss financial and operating results and
other matters during a webcast at 8:30 a.m. Central Time on
April 27, 2018. 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. Future results,
including project plans, costs, timing, and capacities; business
growth; integration benefits; resource recoveries; the impact of
new technologies; and share purchase levels, could differ
materially due to factors including: changes in oil, gas or
petrochemical prices or other market or economic conditions
affecting the oil, gas or petrochemical industries, including the
scope and duration of economic recessions; the outcome of
exploration and development efforts; timely completion of new
projects; changes in law or government regulation, including tax
and environmental requirements; the impact of fiscal and commercial
terms and outcome of commercial negotiations; the results of
research programs; changes in technical or operating conditions;
actions of competitors; 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 2017 Form
10-K. We assume no duty to update these statements as of any future
date.
Frequently Used Terms and Non-GAAP
Measures
This press release includes cash flow from operations and asset
sales. 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 V.
This press release also includes earnings excluding impacts from
U.S. tax reform enactment and asset impairments. We believe these
figures are useful for investors to consider in comparing the
performance of our underlying business across periods when one, or
both, periods have been impacted by the U.S. tax reform or an asset
impairment charge. A reconciliation of earnings excluding these
items to U.S. GAAP earnings is shown in Attachment II.
This press release also includes total taxes including
sales-based taxes. This is a broader indicator of the total tax
burden on the corporation’s products and earnings, including
certain sales and value-added taxes imposed on and concurrent with
revenue-producing transactions with customers and collected on
behalf of governmental authorities (“sales-based taxes”). It
combines “Income taxes” and “Total other taxes and duties” with
sales-based taxes, which are reported net in the income statement.
We believe it is useful for the corporation and its investors to
understand the total tax burden imposed on the corporation’s
products and earnings. A reconciliation to total taxes is shown in
Attachment I.
References to the resource base and other quantities of oil,
natural gas or condensate may include amounts that are not yet
classified as “proved reserves” under SEC definitions, but which we
believe will likely be moved into the “proved reserves” category
and produced in the future. 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. Further information on ExxonMobil’s
frequently used financial and operating measures and other terms
including “Cash flow from operations and asset sales”, and “Total
taxes including sales-based taxes” 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.
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 2018 (millions of dollars, unless noted)
First First Fourth
Quarter Quarter Quarter
2018 2017 2017
Earnings / Earnings Per Share Total revenues and other
income1
68,211 58,671 66,515 Total costs and other
deductions
60,971 52,753 63,498 Income before income taxes
7,240 5,918 3,017 Income taxes
2,457 1,828 (5,392 )
Net income including noncontrolling interests
4,783 4,090
8,409 Net income attributable to noncontrolling interests
133 80 29 Net income attributable to ExxonMobil (U.S. GAAP)
4,650 4,010 8,380 Earnings per common share (dollars)
1.09 0.95 1.97
Earnings per common share - assuming
dilution (dollars)
1.09 0.95 1.97 Exploration expenses, including dry
holes
287 289 703
Other Financial Data
Dividends on common stock Total
3,291 3,134 3,289 Per common
share (dollars)
0.77 0.75 0.77 Millions of common
shares outstanding At period end
4,234 4,237 4,239 Average -
assuming dilution
4,270 4,223 4,270 ExxonMobil share
of equity at period end
188,195 177,151 187,688 ExxonMobil
share of capital employed at period end
231,282 223,447
232,467 Income taxes
2,457 1,828 (5,392 ) Total other
taxes and duties
8,815 7,629 8,583 Total taxes
11,272
9,457 3,191 Sales-based taxes
5,281 4,616 5,245 Total taxes
including sales-based taxes
16,553 14,073 8,436
ExxonMobil share of income taxes of equity
companies
740 647 500
1 Effective December 31, 2017, the corporation revised its
accounting policy election related to the reporting of sales-based
taxes, which had no impact on earnings. For more information,
please refer to Note 2 in the Financial Section of ExxonMobil’s
2017 Form 10-K.
Attachment II Exxon Mobil
Corporation First Quarter 2018 (millions of dollars)
First First Fourth
Quarter Quarter Quarter
2018 2017 2017
Earnings (U.S. GAAP) Upstream United States
429 (18 )
7,061 Non-U.S.
3,068 2,270 1,291 Downstream United States
319 292 918 Non-U.S.
621 824 646 Chemical United
States
503 529 777 Non-U.S.
508 642 493 Corporate and
financing
(798 ) (529 ) (2,806 ) Net income
attributable to ExxonMobil
4,650 4,010 8,380
U.S.
Tax Reform Enactment Upstream United States
- - 7,602
Non-U.S.
- - (480 ) Downstream United States
- - 618
Chemical United States
- - 335 Corporate and financing
- - (2,133 ) Total U.S. Tax Reform Enactment
- -
5,942
Asset Impairments Upstream United States
- - (481 ) Non-U.S.
- - (807 ) Downstream United
States
- - (6 ) Total Asset Impairments
- - (1,294 )
Earnings Excluding U.S. Tax Reform Enactment and
Impairments Upstream United States
429 (18 ) (60 )
Non-U.S.
3,068 2,270 2,578 Downstream United States
319 292 306 Non-U.S.
621 824 646 Chemical United
States
503 529 442 Non-U.S.
508 642 493 Corporate and
financing
(798 ) (529 ) (673 ) Earnings excluding
U.S. Tax Reform Enactment and Impairments
4,650 4,010 3,732
Attachment III Exxon Mobil
Corporation First Quarter 2018 First First
Fourth
Quarter Quarter Quarter
2018
2017 2017
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil, thousand barrels per day
(kbd)
United States
523 513 525 Canada / Other Americas
427
421 426 Europe
145 205 155 Africa
376 433 403 Asia
706 711 690 Australia / Oceania
39 50 52 Worldwide
2,216 2,333 2,251
Natural gas production available for sale,
million cubic feet per day (mcfd)
United States
2,576 3,011 2,753 Canada / Other Americas
211 218 240 Europe
2,542 2,768 2,266 Africa
9
5 6 Asia
3,568 3,807 3,855 Australia / Oceania
1,132
1,099 1,321 Worldwide
10,038 10,908 10,441
Oil-equivalent production (koebd)1
3,889 4,151 3,991
1 Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels.
Attachment IV Exxon Mobil
Corporation First Quarter 2018 First First
Fourth
Quarter Quarter Quarter
2018
2017 2017 Refinery throughput (kbd)
United States
1,518 1,621 1,379 Canada
408 397 391
Europe
1,495 1,453 1,509 Asia Pacific
720 652 728
Other
152 201 200 Worldwide
4,293 4,324 4,207
Petroleum product sales (kbd) United States
2,128 2,155
2,209 Canada
484 494 501 Europe
1,574 1,536 1,589
Asia Pacific
795 708 819 Other
451 502 506 Worldwide
5,432 5,395 5,624 Gasolines, naphthas
2,215
2,163 2,353 Heating oils, kerosene, diesel
1,828 1,833 1,878
Aviation fuels
396 370 393 Heavy fuels
346 380 370
Specialty products
647 649 630 Worldwide
5,432 5,395
5,624
Chemical prime product sales, thousand
metric tons (kt)
United States
2,391 2,280 2,399 Non-U.S.
4,277 3,792
4,383 Worldwide
6,668 6,072 6,782
Attachment V Exxon Mobil Corporation
First Quarter 2018 (millions of dollars)
First
First Fourth
Quarter Quarter Quarter
2018 2017 2017
Capital and Exploration Expenditures Upstream United States
1,248 704 1,158 Non-U.S.
2,511 2,415 6,457 Total
3,759 3,119 7,615 Downstream United States
218 205
264 Non-U.S.
396 340 518 Total
614 545 782 Chemical
United States
343 388 389 Non-U.S.
122 109 167 Total
465 497 556 Other
29 8 46 Worldwide
4,867 4,169 8,999
Cash flow from operations
and asset sales
Net cash provided by operating activities
(U.S. GAAP)
8,519 8,173 7,411 Proceeds associated with asset sales
1,441 687 1,408 Cash flow from operations and asset sales
9,960 8,860 8,819
Attachment VI
Exxon Mobil Corporation Earnings
$ Millions $ Per Common
Share1 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 Second Quarter 1,700 0.41 Third Quarter 2,650 0.63 Fourth
Quarter 1,680 0.41 Year 7,840 1.88
2017
First Quarter 4,010 0.95 Second Quarter 3,350 0.78 Third Quarter
3,970 0.93 Fourth Quarter 8,380 1.97 Year 19,710 4.63
2018 First Quarter 4,650 1.09
1 Computed using the average number of shares outstanding during
each period.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20180427005393/en/
ExxonMobilMedia Relations, 972-940-6007
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From Apr 2024 to May 2024
Exxon Mobil (NYSE:XOM)
Historical Stock Chart
From May 2023 to May 2024