Exxon Mobil Corporation (NYSE:XOM):
- Funded Phase 1 of world-class Guyana
Liza development, with first oil expected by 2020
- Progressed investments in advantaged
manufacturing sites and acquired strategic assets in Singapore to
meet growing product demand
- Cash flow from operating activities
covered second quarter dividends and additions to property, plant
and equipment
Second
Quarter First Half
2017 2016 %
2017 2016 %
Earnings Summary (Dollars in millions, except per share
data) Earnings
3,350 1,700 97
7,360 3,510 110
Earnings Per Common Share Assuming Dilution
0.78 0.41 90
1.73 0.84 106 Capital and Exploration Expenditures
3,925 5,158 -24
8,094 10,285 -21
Exxon Mobil Corporation today announced estimated second quarter
2017 earnings of $3.4 billion, or $0.78 per diluted share, compared
with $1.7 billion a year earlier, as oil and gas realizations
increased and refining margins improved.
“These solid results across our businesses were driven by higher
commodity prices and a continued focus on operations and business
fundamentals,” said Darren W. Woods, chairman and chief executive
officer. “Our job is to grow long-term value by investing in our
integrated portfolio of opportunities that succeed regardless of
market conditions.”
During the second quarter, Upstream earnings rose substantially
to $1.2 billion as realizations increased. Downstream results grew
68 percent to $1.4 billion on improved refining margins and higher
refinery volumes. Chemical earnings were $985 million, $232 million
lower than a year ago, primarily due to higher turnaround
activities, lower volumes, and decreased margins.
Upstream volumes declined 1 percent to 3.9 million
oil-equivalent barrels per day compared with a year ago largely due
to lower entitlements, while increases from projects and work
programs more than offset the impacts of field decline.
During the quarter, the corporation distributed $3.3 billion in
dividends to shareholders.
Second Quarter 2017 Highlights
- Earnings of $3.4 billion increased 97
percent from the second quarter of 2016.
- Earnings per share assuming dilution
were $0.78.
- Cash flow from operations and asset
sales was $7.1 billion, including proceeds associated with asset
sales of $154 million.
- Capital and exploration expenditures
were $3.9 billion, down 24 percent from the second quarter of
2016.
- Oil-equivalent production was 3.9
million oil-equivalent barrels per day, down 1 percent from the
prior year. Excluding entitlement effects and divestments,
oil-equivalent production was up 1 percent from the prior
year.
- The corporation distributed $3.3
billion in dividends to shareholders.
- Dividends per share of $0.77 increased
2.7 percent compared to the second quarter of 2016.
- The company made a final investment
decision to proceed with the first phase of the Liza field
development located offshore Guyana. Production is expected to
begin by 2020, less than five years after discovery of the field,
from a floating production, storage, and offloading vessel designed
to produce up to 120,000 barrels of oil per day.
- The Liza-4 well encountered more than
197 feet (60 meters) of high-quality, oil-bearing sandstone
reservoirs, which will underpin a potential Liza Phase 2
development. In July, the company also announced positive results
from the Payara-2 well, which encountered 59 feet (18 meters) of
high-quality, oil-bearing sandstone reservoirs. Gross recoverable
resources for the Stabroek block are now estimated at 2.25 billion
to 2.75 billion oil-equivalent barrels, which includes Liza and
discoveries at Payara and Snoek.
- ExxonMobil announced positive results
for the Muruk-1 sidetrack 3 well in Papua New Guinea, located about
13 miles (21 kilometers) northwest of Hides gas field. The Muruk-1
sidetrack well was safely drilled to 13,550 feet (4,130 meters) and
encountered high-quality sandstone reservoirs southwest of the
Muruk-1 natural gas discovery. During a subsequent production test
the well successfully flowed gas and condensate at an equipment
constrained rate of 16 million standard cubic feet per day.
- The company spud its first well on the
recently acquired Delaware Basin acreage, drilling a 12,500 foot
(3,810 meters) lateral section. ExxonMobil continues to expand
midstream capabilities in the basin through strategic partnerships
such as the recently signed agreement with Summit Midstream
Partners, LP.
- The company safely towed the Hebron
platform from the Bull Arm construction site in Newfoundland and
Labrador, Canada, to the Hebron field in the Jeanne d’Arc Basin,
located about 220 miles (350 kilometers) offshore. The Hebron field
is anticipated to produce 150,000 barrels of oil per day from a
recoverable resource of 700 million barrels. Commissioning work is
underway, with first oil anticipated before the end of 2017.
- The company reached an agreement with
Jurong Aromatics Corporation Pte Ltd to acquire one of the world’s
largest aromatics plants located on Jurong Island in Singapore. The
plant, with annual production capacity of 1.4 million metric tons,
will strengthen both operational and logistical synergies for
ExxonMobil’s integrated refining and petrochemical complex
nearby.
- ExxonMobil and SABIC announced the
selection of a site in San Patricio County, Texas, for potential
development of a jointly owned petrochemical complex on the U.S.
Gulf Coast. The proposed multibillion dollar investment would
include a world-scale ethane steam cracker capable of producing 1.8
million metric tons of ethylene per year, which would feed a
monoethylene glycol unit and two polyethylene units.
- ExxonMobil announced the mechanical
completion of two new 650,000 metric tons per year high performance
polyethylene lines at its plastics plant in Mont Belvieu, Texas.
The company expects production to begin during the third quarter of
2017. This project enables ExxonMobil to economically supply a
rapidly growing demand for high-value polyethylene products.
- ExxonMobil announced the completion of
an expansion in Singapore to increase production of grease and
synthetic lubricants, including Mobil 1, the company’s flagship
synthetic engine oil. This expansion further strengthens the
company’s manufacturing capabilities and its ability to meet the
growing demand for grease and synthetic lubricants products in the
Asia Pacific region.
- ExxonMobil announced plans to enter the
Mexican fuels market in 2017 with Mobil-branded stations and its
new signature line of advanced Synergy gasoline and diesel fuels.
The company plans to invest about $300 million in fuels logistics,
product inventories and marketing over the next 10 years.
- ExxonMobil and Synthetic Genomics, Inc.
announced a breakthrough in research into advanced biofuels
involving the modification of an algae strain that more than
doubled its oil content without significantly inhibiting the
strain’s growth. Additional research and extensive testing are
required before commercial application.
Second Quarter 2017 vs. Second Quarter 2016
Upstream earnings were $1.2 billion in the second quarter
of 2017, up $890 million from the second quarter of 2016.
Higher liquids and gas realizations increased earnings by
$890 million. Lower liquids volume and mix effects decreased
earnings by $260 million due to lower sales from timing of
liftings. Higher gas volumes and mix effects increased earnings by
$120 million. All other items, including lower expenses,
increased earnings by $140 million.
On an oil-equivalent basis, production decreased 1 percent
from the second quarter of 2016. Liquids production totaled
2.3 million barrels per day, down 61,000 barrels per day
as field decline and lower entitlements were partly offset by
increased project volumes and work programs. Natural gas production
was 9.9 billion cubic feet per day, up 158 million cubic
feet per day from 2016 as project ramp-up, primarily in Australia,
was partly offset by field decline and lower demand.
U.S. Upstream results were a loss of $183 million in the
second quarter of 2017, compared to a loss of $514 million in
the second quarter of 2016. Non-U.S. Upstream earnings were
$1.4 billion, up $559 million from the prior year
period.
Downstream earnings were $1.4 billion, up $560 million
from the second quarter of 2016. Higher margins increased earnings
by $220 million, while favorable volume and mix effects increased
earnings by $90 million. All other items increased earnings by
$250 million, including asset management gains, favorable
foreign exchange impacts, and lower turnaround expenses. Petroleum
product sales of 5.6 million barrels per day were
58,000 barrels per day higher than last year’s second
quarter.
Earnings from the U.S. Downstream were $347 million, down
$65 million from the second quarter of 2016. Non-U.S. Downstream
earnings of $1 billion were $625 million higher than
prior year.
Chemical earnings of $985 million were $232 million
lower than the second quarter of 2016. Weaker margins decreased
earnings by $40 million. Volume and mix effects decreased
earnings by $50 million. All other items decreased earnings by
$140 million primarily due to higher turnaround expenses.
Second quarter prime product sales of 6.1 million metric
tons were 190,000 metric tons lower than the prior
year.
U.S. Chemical earnings of $481 million were $28 million lower
than the second quarter of 2016. Non-U.S. Chemical earnings of
$504 million were $204 million lower than prior year.
Corporate and financing expenses were $204 million for the
second quarter of 2017, down $432 million from the second
quarter of 2016 mainly due to favorable tax items.
First Half 2017 Highlights
- Earnings of $7.4 billion increased 110
percent from $3.5 billion in 2016.
- Earnings per share assuming dilution
were $1.73.
- Cash flow from operations and asset
sales was $16 billion, including proceeds associated with asset
sales of $841 million.
- Capital and exploration expenditures
were $8.1 billion, down 21 percent from 2016.
- Oil-equivalent production was 4 million
oil-equivalent barrels per day, down 3 percent from the prior year.
Excluding entitlement effects and divestments, oil-equivalent
production was flat with the prior year.
- The corporation distributed $6.4
billion in dividends to shareholders.
First Half 2017 vs. First Half 2016
Upstream earnings were $3.4 billion, up $3.2 billion
from the first half of 2016. Higher realizations increased earnings
by $3.2 billion. Unfavorable volume and mix effects decreased
earnings by $320 million. All other items increased earnings
by $310 million, primarily due to lower expenses partly offset
by unfavorable tax items in the current year.
On an oil-equivalent basis, production of 4 million barrels per
day was down 3 percent compared to 2016. Liquids production of
2.3 million barrels per day decreased 133,000 barrels per
day as lower entitlements and field decline were partly offset by
increased project volumes and work programs. Natural gas production
of 10.4 billion cubic feet per day increased 168 million
cubic feet per day from 2016 as project ramp-up, primarily in
Australia, was partly offset by field decline.
U.S. Upstream results were a loss of $201 million in 2017,
compared to a loss of $1.3 billion in 2016. Earnings outside the
U.S. were $3.6 billion, up $2.1 billion from the prior
year.
Downstream earnings of $2.5 billion increased
$770 million from 2016. Stronger refining and marketing
margins increased earnings by $230 million, while volume and
mix effects increased earnings by $260 million. All other items
increased earnings by $280 million, mainly reflecting asset
management gains and lower maintenance expense. Petroleum product
sales of 5.5 million barrels per day were 60,000 barrels
per day higher than 2016.
U.S. Downstream earnings were $639 million, an increase of
$40 million from 2016. Non-U.S. Downstream earnings were
$1.9 billion, up $730 million from the prior year.
Chemical earnings of $2.2 billion decreased $416 million
from 2016. Weaker margins decreased earnings by $110 million.
Volume and mix effects decreased earnings by $60 million. All
other items decreased earnings by $250 million, primarily due
to higher turnaround expenses and unfavorable foreign exchange
effects. Prime product sales of 12.2 million metric tons were
down 291,000 metric tons from the first half of 2016.
U.S. Chemical earnings were $1 billion, down
$80 million from 2016. Non-U.S. Chemical earnings of
$1.1 billion were $336 million lower than prior year.
Corporate and financing expenses were $733 million in 2017
compared to $1 billion in 2016, with the decrease mainly due to net
favorable tax-related items.
During the first half 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. The company also issued a combined 96 million shares
of common stock during the first quarter 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
July 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; production rates; 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 recoverable
resources and other quantities of oil, natural gas or condensate
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 and Synergy are registered trademarks 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 Second Quarter 2017 (millions of dollars,
unless noted)
Second Quarter
First Half 2017
2016 2017 2016
Earnings / Earnings Per Share Total revenues and
other income
62,876 57,694
126,163 106,401 Total
costs and other deductions
58,720 55,298
116,089
102,275 Income before income taxes
4,156 2,396
10,074
4,126 Income taxes
892 715
2,720 664 Net income
including noncontrolling interests
3,264 1,681
7,354
3,462 Net income attributable to noncontrolling interests
(86 ) (19 )
(6 ) (48 ) Net income
attributable to ExxonMobil (U.S. GAAP)
3,350 1,700
7,360 3,510 Earnings per common share (dollars)
0.78 0.41
1.73 0.84
Earnings per common share - assuming
dilution (dollars)
0.78 0.41
1.73 0.84
Other Financial
Data Dividends on common stock Total
3,289 3,133
6,423 6,187 Per common share (dollars)
0.77 0.75
1.52 1.48 Millions of common shares outstanding At
June 30
4,237 4,147 Average - assuming dilution
4,271
4,178
4,244 4,178 ExxonMobil share of equity at June
30
179,178 170,591 ExxonMobil share of capital employed at
June 30
223,646 216,947 Income taxes
892 715
2,720 664 Sales-based taxes
5,589 5,435
10,931
10,250 All other taxes
7,170 7,291
14,073 14,022
Total taxes
13,651 13,441
27,724 24,936
ExxonMobil share of income taxes of equity
companies
569 385
1,216 865
Attachment II Exxon Mobil Corporation
Second Quarter 2017 (millions of dollars)
Second Quarter First Half
2017 2016 2017
2016 Earnings (U.S. GAAP) Upstream United
States
(183 ) (514 )
(201 ) (1,346 )
Non-U.S.
1,367 808
3,637 1,564 Downstream United
States
347 412
639 599 Non-U.S.
1,038 413
1,862 1,132 Chemical United States
481 509
1,010 1,090 Non-U.S.
504 708
1,146 1,482
Corporate and financing
(204 ) (636 )
(733
) (1,011 ) Net income attributable to ExxonMobil
3,350 1,700
7,360 3,510
Cash flow
from operations and asset sales (billions of dollars) Net cash
provided by operating activities (U.S. GAAP)
6.9 4.6
15.2 9.4 Proceeds associated with asset sales
0.2 1.0
0.8 1.2 Cash flow from operations and asset sales
7.1
5.6
16.0 10.6
Attachment III Exxon Mobil Corporation
Second Quarter 2017 Second
Quarter First Half
2017 2016 2017
2016
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil, thousand barrels per day
(kbd)
United States
520 495
516 498 Canada / South America
374 359
398 417 Europe
195 201
200 210
Africa
417 494
425 529 Asia
710 724
710
725 Australia / Oceania
53 57
52 55 Worldwide
2,269 2,330
2,301 2,434
Natural gas production available for sale,
million cubic feet per day (mcfd)
United States
3,083 3,097
3,047 3,129 Canada / South
America
203 257
209 257 Europe
1,442 1,749
2,102 2,262 Africa
4 7
5 5 Asia
3,867
3,819
3,837 3,806 Australia / Oceania
1,321 833
1,211 784
Worldwide
9,920 9,762
10,411 10,243 Oil-equivalent
production (koebd)1
3,922 3,957
4,036 4,141
1 Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels.
Attachment IV Exxon
Mobil Corporation Second Quarter 2017
Second Quarter First Half
2017 2016 2017
2016 Refinery throughput (kbd) United States
1,601 1,555
1,611 1,578 Canada
358 246
378 322 Europe
1,521 1,462
1,488 1,365 Asia
Pacific
664 718
658 724 Other
201 171
200 180 Worldwide
4,345 4,152
4,335 4,169
Petroleum product sales (kbd) United States
2,187
2,228
2,171 2,223 Canada
494 479
494 478
Europe
1,653 1,561
1,595 1,495 Asia Pacific
755 760
731 763 Other
469 472
486 458
Worldwide
5,558 5,500
5,477 5,417 Gasolines,
naphthas
2,265 2,266
2,214 2,239 Heating oils,
kerosene, diesel
1,850 1,752
1,842 1,726 Aviation
fuels
383 386
377 394 Heavy fuels
367 367
373 376 Specialty products
693 729
671 682
Worldwide
5,558 5,500
5,477 5,417
Chemical prime product sales, thousand
metric tons (kt)
United States
2,334 2,447
4,614 4,847 Non-U.S.
3,786 3,863
7,578 7,636 Worldwide
6,120 6,310
12,192 12,483
Attachment V Exxon Mobil Corporation Second
Quarter 2017 (millions of dollars)
Second Quarter First Half
2017 2016 2017
2016 Capital and Exploration Expenditures
Upstream United States
756 914
1,460 1,989 Non-U.S.
2,030 3,005
4,445 5,909 Total
2,786 3,919
5,905 7,898 Downstream United States
173 227
378 416 Non-U.S.
413 415
753 754 Total
586 642
1,131 1,170 Chemical United States
414
355
802 789 Non-U.S.
121 208
230 385 Total
535 563
1,032 1,174 Other
18 34
26 43 Worldwide
3,925 5,158
8,094
10,285
Exploration expenses charged to income
included above
Consolidated affiliates United States
37 35
71 143
Non-U.S.
477 409
730 655 Equity companies -
ExxonMobil share United States
1 -
1 - Non-U.S.
10 5
24 (5 ) Worldwide
525 449
826 793
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 Second Quarter 3,350 0.78
1 Computed using the average number of shares outstanding during
each period.
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