MRO Magazine

ExxonMobil Earns $4.2 Billion in Second Quarter of 2015


July 31, 2015
By Business Wire News

IRVING, Texas

Exxon Mobil Corporation (NYSE:XOM):

 

               
Second QuarterFirst Half
20152014%20152014%
Earnings Summary
(Dollars in millions, except per share data)
Earnings4,190 8,780 -529,130 17,880 -49
Earnings Per Common Share
Assuming Dilution1.00 2.05 -512.17 4.15 -48
 
Capital and Exploration
Expenditures8,261 9,800 -1615,965 18,236 -12
 

Exxon Mobil Corporation today announced estimated second quarter 2015 earnings of $4.2 billion, or $1 per diluted share, compared with $8.8 billion a year earlier. Higher Downstream and Chemical earnings were more than offset by the impact of weaker Upstream realizations and lower asset management gains.

“We are delivering on our investment and operating commitments across ExxonMobil’s integrated portfolio,” said Rex W. Tillerson, chairman and chief executive officer. “Our quarterly results reflect the disparate impacts of the current commodity price environment, but also demonstrate the strength of our sound operations, superior project execution capabilities, as well as continued discipline in capital and expense management.”

Downstream and Chemical segment earnings increased significantly from the second quarter of 2014, driven by higher margins, continued strong demand, and the quality of the company’s product and asset mix.

ExxonMobil produced 4 million oil-equivalent barrels per day, an increase of 139,000 barrels per day, or 3.6 percent. Liquids volumes of 2.3 million barrels per day increased 11.9 percent, benefiting from new developments in Angola, Canada, Indonesia and the United States.

During the quarter, the corporation distributed $4.1 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.

Second Quarter Highlights

  • Earnings of $4.2 billion decreased $4.6 billion or 52 percent from the second quarter of 2014.
  • Earnings per share, assuming dilution, were $1, a decrease of 51 percent.
  • Capital and exploration expenditures were $8.3 billion, down 16 percent from the second quarter of 2014.
  • Oil-equivalent production increased 3.6 percent from the second quarter of 2014, with liquids up 11.9 percent and natural gas down 5.8 percent.
  • Cash flow from operations and asset sales was $9.4 billion, including proceeds associated with asset sales of $629 million.
  • The corporation distributed $4.1 billion to shareholders in the second quarter of 2015, including $1 billion in share purchases to reduce shares outstanding.
  • Dividends per share of $0.73 increased 5.8 percent compared with the second quarter of 2014.
  • A significant oil discovery was made in Guyana on the 6.6-million acre Stabroek Block that is located 120 miles offshore. The well was safely drilled to 17,825 feet in 5,719 feet of water and encountered 295 feet of high-quality oil-bearing sandstone reservoirs.
  • Production at the company’s Kearl oil sands expansion project in Alberta, Canada, started ahead of schedule, doubling gross capacity to 220,000 barrels of bitumen per day.
  • Bitumen production began on schedule at the Cold Lake Nabiye project expansion in northeastern Alberta, Canada. The expansion is producing about 20,000 barrels per day and volumes are expected to reach peak daily production of 40,000 barrels later this year.

Second Quarter 2015 vs. Second Quarter 2014

Upstream earnings were $2 billion in the second quarter of 2015, down $5.9 billion from the second quarter of 2014. Lower liquids and gas realizations decreased earnings by $4.5 billion, while volume effects increased earnings by $330 million driven by new developments. All other items decreased earnings by $1.7 billion, including the one-time $260 million deferred income tax impact related to the tax rate increase in Alberta, Canada, and the absence of prior year asset management gains.

On an oil-equivalent basis, production increased 3.6 percent from the second quarter of 2014. Liquids production totaled 2.3 million barrels per day, up 243,000 barrels per day, with project ramp-up and entitlement effects partly offset by field decline. Natural gas production was 10.1 billion cubic feet per day, down 622 million cubic feet per day from 2014 due to regulatory restrictions in the Netherlands. Project volumes and entitlement effects offset field decline.

The U.S. Upstream operations recorded a loss of $47 million, down $1.2 billion from the second quarter of 2014. Non-U.S. Upstream earnings were $2.1 billion, down $4.6 billion from the prior year.

Downstream earnings were $1.5 billion, up $795 million from the second quarter of 2014. Stronger margins increased earnings by $1.1 billion. Volume and mix effects decreased earnings by $80 million. All other items, including higher maintenance expenses, decreased earnings by $230 million. Petroleum product sales of 5.7 million barrels per day were 104,000 barrels per day lower than the prior year’s second quarter.

Earnings from the U.S. Downstream were $412 million, down $124 million from the second quarter of 2014. Non-U.S. Downstream earnings of $1.1 billion were $919 million higher than last year.

Chemical earnings of $1.2 billion were $405 million higher than the second quarter of 2014. Margins increased earnings by $340 million, benefiting from lower feedstock costs. Volume mix effects increased earnings by $20 million. All other items, primarily asset management gains in the U.S., partly offset by unfavorable foreign exchange effects, increased earnings by a net $50 million. Second quarter prime product sales of 6.1 million metric tons were 61,000 metric tons lower than the prior year’s second quarter.

Corporate and financing expenses were $593 million for the second quarter of 2015, down $60 million from the second quarter of 2014.

During the second quarter of 2015, ExxonMobil purchased 12 million shares of its common stock for the treasury to reduce the number of shares outstanding at a cost of $1 billion. Share purchases to reduce shares outstanding are currently anticipated to equal $500 million in the third quarter of 2015. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased, or discontinued at any time without prior notice.

First Half 2015 Highlights

  • Earnings were $9.1 billion, down $8.8 billion or 49 percent from 2014.
  • Earnings per share, assuming dilution, decreased 48 percent to $2.17.
  • Capital and exploration expenditures were $16 billion, down 12 percent from 2014.
  • Oil-equivalent production increased 3 percent from 2014, with liquids up 8.9 percent and natural gas down 3.6 percent.
  • Cash flow from operations and asset sales was $17.9 billion, including proceeds associated with asset sales of $1.1 billion.
  • The corporation distributed $8 billion to shareholders in the first half of 2015 through dividends and share purchases to reduce shares outstanding.

First Half 2015 vs. First Half 2014

Upstream earnings were $4.9 billion, down $10.8 billion from the first half of 2014. Lower realizations decreased earnings by $10 billion. Favorable volume and mix effects increased earnings by $570 million. All other items, primarily the absence of prior year asset management gains, decreased earnings by $1.4 billion.

On an oil-equivalent basis, production of 4.1 million barrels per day was up 3 percent compared to the same period in 2014. Liquids production of 2.3 million barrels per day increased 186,000 barrels per day, with project ramp-up and entitlement effects partly offset by field decline. Natural gas production of 11 billion cubic feet per day decreased 407 million cubic feet per day from 2014 due to regulatory restrictions in the Netherlands. Project ramp-up and entitlement effects exceeded field decline.

The U.S. Upstream operations recorded a loss of $99 million, down $2.5 billion from 2014. Earnings outside the U.S. were $5 billion, down $8.2 billion from the prior year.

Downstream earnings of $3.2 billion increased $1.6 billion from 2014. Stronger margins increased earnings by $2.1 billion. Volume and mix effects were essentially flat period-to-period. All other items, including higher planned maintenance expenses, decreased earnings by $480 million. Petroleum product sales of 5.8 million barrels per day were 54,000 barrels per day lower than 2014.

U.S. Downstream earnings were $1 billion, a decrease of $180 million from 2014. Non-U.S. Downstream earnings were $2.2 billion, up $1.8 billion from the prior year.

Chemical earnings of $2.2 billion increased $340 million from 2014. Higher margins increased earnings by $590 million. Favorable volume mix effects increased earnings by $70 million. All other items, including unfavorable foreign exchange effects partly offset by asset management gains in the U.S., decreased earnings by $320 million. Prime product sales of 12.1 million metric tons were down 120,000 metric tons from 2014.

Corporate and financing expenses were $1.2 billion in the first half of 2015, essentially flat with 2014.

During the first half of 2015, ExxonMobil purchased 32 million shares of its common stock for the treasury at a gross cost of $2.8 billion. These purchases included $2 billion to reduce the number of shares outstanding, with the balance used to acquire shares in conjunction with the company’s benefit plans and programs.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on July 31, 2015. 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 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 outcome of commercial negotiations; 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 2014 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 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
Second Quarter 2015
(millions of dollars, unless noted)
Second QuarterFirst Half
2015201420152014
Earnings / Earnings Per Share
 
Total revenues and other income74,113 111,208141,731 217,533
Total costs and other deductions67,159 97,057128,142 188,155
Income before income taxes6,954 14,15113,589 29,378
Income taxes2,692 5,0344,252 10,891
Net income including noncontrolling interests4,262 9,1179,337 18,487
Net income attributable to noncontrolling interests72 337207 607
Net income attributable to ExxonMobil (U.S. GAAP)4,190 8,7809,130 17,880
 
Earnings per common share (dollars)1.00 2.052.17 4.15
 
Earnings per common share
– assuming dilution (dollars)1.00 2.052.17 4.15
 
 
Other Financial Data
 
Dividends on common stock
Total3,066 2,9665,976 5,698
Per common share (dollars)0.73 0.691.42 1.32
 
Millions of common shares outstanding
At June 304,169 4,265
Average – assuming dilution4,200 4,2974,205 4,312
 
ExxonMobil share of equity at June 30172,668 181,155
ExxonMobil share of capital employed at June 30208,781 205,397
 
Income taxes2,692 5,0344,252 10,891
Sales-based taxes5,965 7,87111,495 15,287
All other taxes7,595 9,30614,869 18,163
Total taxes16,252 22,21130,616 44,341
 
ExxonMobil share of income taxes of
equity companies755 1,4121,716 3,232
           
Attachment II
 
Exxon Mobil Corporation
Second Quarter 2015
(millions of dollars)
Second QuarterFirst Half
2015  2014  2015  2014  
Earnings (U.S. GAAP)
Upstream
United States(47) 1,193(99) 2,437
Non-U.S.2,078 6,6884,985 13,227
Downstream
United States412 536979 1,159
Non-U.S.1,094 1752,194 365
Chemical
United States735 5281,340 1,207
Non-U.S.511 313888 681
Corporate and financing(593) (653 )(1,157) (1,196 )
Net income attributable to ExxonMobil4,190 8,7809,130 17,880
 
 
Cash flow from operations and asset sales (billions of dollars)
Net cash provided by operating activities
(U.S. GAAP)8.8 10.216.8 25.3
Proceeds associated with asset sales0.6 2.61.1 3.7
Cash flow from operations and asset sales9.4 12.817.9 29.0
             
Attachment III
 
Exxon Mobil Corporation
Second Quarter 2015
 
Second QuarterFirst Half
2015201420152014
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil,
thousand barrels per day (kbd)
United States468 458470 450
Canada / South America364 282366 298
Europe199 178199 187
Africa522 473521 477
Asia685 597681 631
Australia / Oceania53 6047 55
Worldwide2,291 2,0482,284 2,098
 
Natural gas production available for sale,
million cubic feet per day (mcfd)
United States3,153 3,4213,186 3,417
Canada / South America262 316286 325
Europe1,718 2,4262,578 2,943
Africa8 65 7
Asia4,265 4,0704,273 4,293
Australia / Oceania722 511645 395
Worldwide10,128 10,75010,973 11,380
 
Oil-equivalent production (koebd)13,979 3,8404,113 3,995
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.
     
Attachment IV
 
Exxon Mobil Corporation
Second Quarter 2015
 
Second QuarterFirst Half
2015201420152014
Refinery throughput (kbd)
United States1,702 1,7111,754 1,761
Canada373 418383 398
Europe1,524 1,4451,499 1,438
Asia Pacific539 686610 694
Other192 194192 191
Worldwide4,330 4,4544,438 4,482
 
Petroleum product sales (kbd)
United States2,548 2,6512,580 2,628
Canada486 494489 491
Europe1,555 1,5251,546 1,519
Asia Pacific695 733721 747
Other453 438439 444
Worldwide5,737 5,8415,775 5,829
 
Gasolines, naphthas2,376 2,4362,370 2,418
Heating oils, kerosene, diesel1,874 1,8871,934 1,876
Aviation fuels404 412407 420
Heavy fuels377 379385 404
Specialty products706 727679 711
Worldwide5,737 5,8415,775 5,829
 
Chemical prime product sales,
thousand metric tons (kt)
United States2,401 2,3514,722 4,743
Non-U.S.3,677 3,7887,425 7,524
Worldwide6,078 6,13912,147 12,267
           
Attachment V
 
Exxon Mobil Corporation
Second Quarter 2015
(millions of dollars)
Second QuarterFirst Half
2015201420152014
Capital and Exploration Expenditures
Upstream
United States2,095 2,6984,215 4,790
Non-U.S.4,651 5,6968,948 10,868
Total6,746 8,39413,163 15,658
Downstream
United States266 296561 524
Non-U.S.361 386687 698
Total627 6821,248 1,222
Chemical
United States570 5021,000 899
Non-U.S.258 212482 445
Total828 7141,482 1,344
 
Other60 1072 12
 
Worldwide8,261 9,80015,965 18,236
 
 
Exploration expenses charged to income
included above
Consolidated affiliates
United States40 10477 139
Non-U.S.329 389603 669
Equity companies – ExxonMobil share
United States 503 51
Non-U.S.23 6331 85
Worldwide392 606714 944
         
Attachment VI
 
Exxon Mobil Corporation
Earnings
 
$ Millions

$ Per Common
Share1

 

2011

First Quarter 10,650 2.14
Second Quarter 10,680 2.19
Third Quarter 10,330 2.13
Fourth Quarter 9,400 1.97
Year 41,060 8.43
 

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

ExxonMobil
Media Relations, 972-444-1107