XOM Exxon Mobil Corp

• New discovery, strategic acquisitions and key initiatives position company for growth
• Earnings more than double from prior year quarter with solid results from all segments
• Cash flow from operating activities more than covered first quarter dividends and additions to property, plant and equipment

Exxon Mobil Corporation (NYSE:XOM):

  First Quarter   2017   2016 % Earnings Summary (Dollars in millions, except per share data) Earnings 4,010 1,810 122 Earnings Per Common Share Assuming Dilution 0.95 0.43 121  

Capital and Exploration Expenditures

4,169 5,127 -19  

Exxon Mobil Corporation (NYSE:XOM) today announced estimated first quarter 2017 earnings of $4 billion, or $0.95 per diluted share, compared with $1.8 billion a year earlier, resulting from improvements in commodity prices, cost management and refining operations.

“Our results reflect an increase in commodity prices and highlight our continued focus on controlling costs and operating efficiently,” said Darren W. Woods, chairman and chief executive officer. “We continue to make strategic acquisitions, advance key initiatives and fund long-term growth projects across the value chain.”

Upstream volumes were 4.2 million oil-equivalent barrels per day, a decline of 4 percent compared with the prior year, primarily due to the impact of lower entitlements due to increasing prices, and higher maintenance.

Upstream earnings of $2.3 billion improved on higher liquids and gas realizations. Downstream earnings of $1.1 billion benefited from increased refinery throughput. Chemical earnings of $1.2 billion were impacted primarily by lower margins.

Capital and exploration expenditures totaled $4.2 billion as the company advanced investments across its integrated businesses.

During the quarter, the corporation distributed $3.1 billion in dividends to shareholders.

First Quarter Highlights

  • Earnings of $4 billion increased 122 percent from the first quarter of 2016.   • Earnings per share assuming dilution were $0.95.   • Cash flow from operations and asset sales was $8.9 billion, including proceeds associated with asset sales of $687 million.   • Capital and exploration expenditures were $4.2 billion, down 19 percent from the first quarter of 2016.   • Oil-equivalent production was 4.2 million oil-equivalent barrels per day, down 4 percent from the prior year. Excluding entitlement effects and divestments, oil-equivalent production was down 1 percent from the prior year.   • The corporation distributed $3.1 billion in dividends to shareholders.   • Dividends per share of $0.75 increased 2.7 percent compared with the first quarter of 2016.   • During the quarter, ExxonMobil completed the acquisitions of InterOil Corporation and companies with oil and gas properties primarily in the Permian Basin.   • ExxonMobil and Eni S.p.A. signed a sale and purchase agreement to enable ExxonMobil to acquire a 25 percent indirect interest in the natural gas-rich Area 4 block, offshore Mozambique, for approximately $2.8 billion. The acquisition will be completed following satisfaction of a number of conditions precedent, including clearance from regulatory authorities.   • The company secured additional high-potential exploration acreage in Papua New Guinea, Cyprus and the U.S. Gulf of Mexico.   • ExxonMobil announced positive results from the Snoek well offshore Guyana, confirming a new discovery on the Stabroek Block. The well encountered more than 82 feet (25 meters) of high-quality, oil-bearing sandstone reservoirs.   • The company announced plans to expand the production of high-quality lubricant basestocks at the Singapore refinery. The investment will increase the supply of lubricant basestocks designed to maximize the performance of all major automotive engine oil grades and to enhance the performance of finished lubricants used in multiple industries.   • ExxonMobil launched Mobil 1 Annual Protection, which offers consumers the convenience of driving one full year or up to 20,000 miles between oil changes. Mobil 1 Annual Protection has been specifically formulated to offer maximum wear protection, as well as increase resistance to oil breakdown and protect engine parts from harmful sludge and deposits, resulting in extended engine life.   • Synthetic Genomics, Inc. and ExxonMobil announced they have extended their agreement to conduct joint research into advanced algae biofuels after making significant progress in understanding algae genetics.  

First Quarter 2017 vs. First Quarter 2016

Upstream earnings were $2.3 billion, compared to a loss of $76 million in the first quarter of 2016. Higher liquids and gas realizations increased earnings by $2.3 billion. Lower volume and mix effects decreased earnings by $150 million. All other items increased earnings by $170 million primarily as a result of lower expenses.

On an oil-equivalent basis, production decreased 4 percent from the first quarter of 2016. Liquids production of 2.3 million barrels per day decreased 205,000 barrels per day due to lower entitlements and higher maintenance activity mainly in Canada and Nigeria. Natural gas production of 10.9 billion cubic feet per day increased 184 million cubic feet per day from 2016 as project ramp-up was partly offset by field decline.

U.S. Upstream earnings were a loss of $18 million, compared to a loss of $832 million in the first quarter of 2016. Non-U.S. Upstream earnings were $2.3 billion, up $1.5 billion from the prior year.

Downstream earnings were $1.1 billion, up $210 million from the first quarter of 2016. Higher margins increased earnings by $10 million. Volume and mix effects increased earnings by $160 million. All other items increased earnings by $40 million. Petroleum product sales of 5.4 million barrels per day were 61,000 barrels per day higher than last year’s first quarter.

Earnings from the U.S. Downstream were $292 million, up $105 million from the first quarter of 2016. Non-U.S. Downstream earnings of $824 million were $105 million higher than last year.

Chemical earnings of $1.2 billion were $184 million lower than the first quarter of 2016. Weaker margins decreased earnings by $70 million. All other items, primarily increased turnaround expenses and unfavorable foreign exchange effects, decreased earnings by $110 million. First quarter prime product sales of 6.1 million metric tons were 101,000 metric tons lower than last year's first quarter.

U.S. Chemical earnings of $529 million were $52 million lower than the first quarter of 2016. Non-U.S. Chemical earnings of $642 million were $132 million lower than last year.

Corporate and financing expenses were $529 million for the first quarter of 2017, up $154 million from the first quarter of 2016 due to the absence of favorable tax items.

During the first quarter of 2017, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $496 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. During the quarter, the company issued a combined 96 million shares of common stock to complete the acquisition of InterOil Corporation and the acquisition of entities that own oil and gas properties located primarily in the Permian Basin.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on April 28, 2017. 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; capital and exploration expenditures; asset carrying values; 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; 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 2016 Form 10-K. Closing of pending acquisitions is also subject to satisfaction of the conditions precedent provided in the applicable agreement. 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 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. Mobil 1 is a registered trademark of Exxon Mobil Corporation.

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 2017 (millions of dollars, unless noted)   First Quarter 2017 2016 Earnings / Earnings Per Share   Total revenues and other income 63,287 48,707 Total costs and other deductions 57,369 46,977 Income before income taxes 5,918 1,730 Income taxes 1,828 (51 ) Net income including noncontrolling interests 4,090 1,781 Net income attributable to noncontrolling interests 80 (29 ) Net income attributable to ExxonMobil (U.S. GAAP) 4,010 1,810   Earnings per common share (dollars) 0.95 0.43  

Earnings per common share - assuming dilution (dollars)

0.95 0.43     Other Financial Data   Dividends on common stock Total 3,134 3,054 Per common share (dollars) 0.75 0.73   Millions of common shares outstanding At March 31 4,237 4,147 Average - assuming dilution 4,223 4,178   ExxonMobil share of equity at March 31 177,151 172,187 ExxonMobil share of capital employed at March 31 223,447 217,242   Income taxes 1,828 (51 ) Sales-based taxes 5,342 4,815 All other taxes 6,903 6,731 Total taxes 14,073 11,495  

ExxonMobil share of income taxes of equity companies

647 480       Attachment II   Exxon Mobil Corporation First Quarter 2017 (millions of dollars)   First Quarter 2017 2016 Earnings (U.S. GAAP) Upstream United States (18 ) (832 ) Non-U.S. 2,270 756 Downstream United States 292 187 Non-U.S. 824 719 Chemical United States 529 581 Non-U.S. 642 774 Corporate and financing (529 ) (375 ) Net income attributable to ExxonMobil 4,010 1,810     Cash flow from operations and asset sales (billions of dollars)

Net cash provided by operating activities (U.S. GAAP)

8.2 4.8 Proceeds associated with asset sales 0.7 0.2 Cash flow from operations and asset sales 8.9 5.0       Attachment III   Exxon Mobil Corporation First Quarter 2017   First Quarter 2017 2016

Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd)

United States 513 500 Canada / South America 421 476 Europe 205 218 Africa 433 565 Asia 711 726 Australia / Oceania 50 53 Worldwide 2,333 2,538  

Natural gas production available for sale, million cubic feet per day (mcfd)

United States 3,011 3,160 Canada / South America 218 258 Europe 2,768 2,775 Africa 5 2 Asia 3,807 3,794 Australia / Oceania 1,099 735 Worldwide 10,908 10,724   Oil-equivalent production (koebd)1 4,151 4,325

1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.

    Attachment IV   Exxon Mobil Corporation First Quarter 2017   First Quarter 2017 2016 Refinery throughput (kbd) United States 1,621 1,602 Canada 397 398 Europe 1,453 1,269 Asia Pacific 652 729 Other 201 187 Worldwide 4,324 4,185   Petroleum product sales (kbd) United States 2,155 2,218 Canada 494 476 Europe 1,536 1,429 Asia Pacific 708 766 Other 502 445 Worldwide 5,395 5,334   Gasolines, naphthas 2,163 2,211 Heating oils, kerosene, diesel 1,833 1,699 Aviation fuels 370 402 Heavy fuels 380 386 Specialty products 649 636 Worldwide 5,395 5,334  

Chemical prime product sales, thousand metric tons (kt)

United States 2,280 2,400 Non-U.S. 3,792 3,773 Worldwide 6,072 6,173       Attachment V   Exxon Mobil Corporation First Quarter 2017 (millions of dollars)   First Quarter 2017 2016 Capital and Exploration Expenditures Upstream United States 704 1,075 Non-U.S. 2,415 2,904 Total 3,119 3,979 Downstream United States 205 189 Non-U.S. 340 339 Total 545 528 Chemical United States 388 434 Non-U.S. 109 177 Total 497 611   Other 8 9   Worldwide 4,169 5,127    

Exploration expenses charged to income included above

Consolidated affiliates United States 34 108 Non-U.S. 253 246 Equity companies - ExxonMobil share United States - - Non-U.S. 14 (10 ) Worldwide 301 344       Attachment VI   Exxon Mobil Corporation Earnings   $ Millions $ Per Common Share1   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 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

1 Computed using the average number of shares outstanding during each period.

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