MRO Magazine

ExxonMobil Earns $4.2 Billion in Third Quarter of 2015


October 30, 2015
By Business Wire News

IRVING, Texas

Exxon Mobil Corporation (NYSE:XOM):

               
Third QuarterNine Months
20152014%20152014%
Earnings Summary
(Dollars in millions, except per share data)
Earnings4,240 8,070 -4713,370 25,950 -48
Earnings Per Common Share
Assuming Dilution1.01 1.89 -473.18 6.04 -47
 
Capital and Exploration
Expenditures7,670 9,837 -2223,635 28,073 -16
 

Exxon Mobil Corporation today announced estimated third quarter 2015 earnings of $4.2 billion, or $1.01 per diluted share, compared with $8.1 billion a year earlier. Significantly lower Upstream realizations more than offset higher Downstream and Chemical earnings.

“We maintain a relentless focus on business fundamentals, including cost management, regardless of commodity prices,” said Rex W. Tillerson, chairman and chief executive officer. “Quarterly results reflect the continued strength of our Downstream and Chemical businesses and underscore the benefits of our integrated business model.”

Downstream segment earnings nearly doubled from the third quarter of 2014 due to stronger refining margins. Chemical results, comparable with the year-ago quarter, reflect continued strength in product margins and the quality of the company’s product and asset mix.

Upstream production volumes increased 2.3 percent, or 87,000 barrels per day, to 3.9 million oil-equivalent barrels per day. Liquids volumes of 2.3 million barrels per day rose 13 percent driven by new developments in Canada, Indonesia, the United States, Angola and Nigeria.

During the quarter, the corporation distributed $3.6 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.

Third Quarter Highlights

  • Earnings of $4.2 billion decreased $3.8 billion, or 47 percent, from the third quarter of 2014.
  • Earnings per share, assuming dilution, were $1.01, a decrease of 47 percent.
  • Capital and exploration expenditures were $7.7 billion, down 22 percent from the third quarter of 2014.
  • Oil-equivalent production increased 2.3 percent from the third quarter of 2014, with liquids up 13 percent and natural gas down 10 percent.
  • Cash flow from operations and asset sales was $9.7 billion, including proceeds associated with asset sales of $491 million.
  • The corporation distributed $3.6 billion to shareholders in the third quarter of 2015, including $500 million in share purchases to reduce shares outstanding.
  • Dividends per share of $0.73 increased 5.8 percent compared with the third quarter of 2014.
  • Production at the Erha North Phase 2 project started five months ahead of schedule and $400 million under budget, with an expected peak gross production of 65,000 barrels of oil per day. This capital-efficient, deepwater subsea development is located 60 miles offshore Nigeria and includes seven wells from three drill centers tied back to facilities at the existing Erha field, thus reducing additional infrastructure requirements.
  • The corporation executed two agreements to obtain horizontal development rights in 48,000 acres adjoining its existing acreage position in the Midland Basin. The acreage will provide rights to all intervals within the basin and be operated by ExxonMobil’s subsidiary XTO Energy, Inc. ExxonMobil has executed five agreements in the Midland Basin since January 2014, increasing the company’s position to over 135,000 net acres.
  • ExxonMobil announced plans to utilize its proprietary technology at the Rotterdam refinery in the Netherlands to efficiently produce high quality Group II basestocks and ultra-low sulfur diesel to meet growing market demand. This expansion project follows recent basestock investments at ExxonMobil’s Baytown, Texas, and Singapore refineries and further strengthens our position as the world’s largest producer of lube basestocks.
  • The company announced an expansion at ExxonMobil’s Singapore lubricants plant to produce synthetic lubricants, including Mobil 1TM, its flagship synthetic engine oil. When completed in the second half of 2017, the facility will be the only plant in the Asia Pacific region producing Mobil 1, demonstrating the company’s commitment to applying technology and bringing premium products to market in support of growing demand.
  • ExxonMobil plans to increase crude processing capacity at the Beaumont, Texas, refinery by approximately 20,000 barrels per day, adding flexibility to process domestic light crude oils. This capacity expansion further strengthens the competitiveness of the company’s strategic assets in North America and enhances U.S. energy security.

Third Quarter 2015 vs. Third Quarter 2014

Upstream earnings were $1.4 billion in the third quarter of 2015, down $5.1 billion from the third quarter of 2014. Lower liquids and gas realizations decreased earnings by $5.1 billion, while volume and mix effects, driven by new developments, increased earnings by $110 million. All other items decreased earnings by $70 million.

On an oil-equivalent basis, production increased 2.3 percent from the third quarter of 2014. Liquids production totaled 2.3 million barrels per day, up 266,000 barrels per day, with project ramp-up and entitlement effects partly offset by field decline. Natural gas production was 9.5 billion cubic feet per day, down 1.1 billion cubic feet per day from 2014 due to regulatory restrictions in the Netherlands and field decline, partly offset by project volumes.

U.S. Upstream earnings declined $1.7 billion from the third quarter of 2014 to a loss of $442 million in the third quarter of 2015. Non-U.S. Upstream earnings were $1.8 billion, down $3.4 billion from the prior year.

Downstream earnings were $2 billion, up $1 billion from the third quarter of 2014. Stronger margins increased earnings by $1.4 billion. Lower refining volumes due to higher maintenance-related activities decreased earnings by $280 million. All other items, including maintenance-driven expenditures partly offset by favorable foreign exchange impacts, decreased earnings by $110 million. Petroleum product sales of 5.8 million barrels per day were 211,000 barrels per day lower than the prior year.

Earnings from the U.S. Downstream were $487 million, up $27 million from the third quarter of 2014. Non-U.S. Downstream earnings of $1.5 billion were $982 million higher than last year.

Chemical earnings of $1.2 billion were $27 million higher than the third quarter of 2014. Margins increased earnings by $210 million, benefiting from lower feedstock costs. Volume mix effects increased earnings by $30 million. All other items, primarily unfavorable foreign exchange effects, decreased earnings by $210 million. Third quarter prime product sales of 6.1 million metric tons were 167,000 metric tons lower than the prior year’s third quarter.

Corporate and financing expenses were $378 million for the third quarter of 2015, down $192 million from the third quarter of 2014 driven by favorable tax and financing items.

During the third quarter of 2015, ExxonMobil purchased 6.5 million shares of its common stock for the treasury to reduce the number of shares outstanding at a cost of $500 million. Share purchases to reduce shares outstanding are currently anticipated to equal $500 million in the fourth 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 Nine Months 2015 Highlights

  • Earnings were $13.4 billion, down $12.6 billion, or 48 percent, from 2014.
  • Earnings per share, assuming dilution, decreased 47 percent to $3.18.
  • Capital and exploration expenditures were $23.6 billion, down 16 percent from 2014.
  • Oil-equivalent production increased 2.7 percent from 2014, with liquids up 10 percent and natural gas down 5.7 percent.
  • Cash flow from operations and asset sales was $27.6 billion, including proceeds associated with asset sales of $1.6 billion.
  • The corporation distributed $11.5 billion to shareholders in the first nine months of 2015 through dividends and share purchases to reduce shares outstanding.

First Nine Months 2015 vs. First Nine Months 2014

Upstream earnings were $6.2 billion, down $15.8 billion from the first nine months of 2014. Lower realizations decreased earnings by $15.1 billion. Favorable volume and mix effects increased earnings by $680 million. All other items, primarily the absence of prior year asset management gains, decreased earnings by $1.5 billion.

On an oil-equivalent basis, production of 4 million barrels per day was up 2.7 percent compared to the same period in 2014. Liquids production of 2.3 million barrels per day increased 213,000 barrels per day, with project ramp-up and entitlement effects partly offset by field decline. Natural gas production of 10.5 billion cubic feet per day decreased 630 million cubic feet per day from 2014 as regulatory restrictions in the Netherlands and field decline were partly offset by project ramp-up and entitlement effects.

U.S. Upstream earnings declined $4.2 billion from 2014 to a loss of $541 million for the first nine months of 2015. Earnings outside the U.S. were $6.8 billion, down $11.6 billion from the prior year.

Downstream earnings of $5.2 billion increased $2.7 billion from 2014. Stronger margins increased earnings by $3.5 billion. Volume and mix effects decreased earnings by $280 million. All other items, including higher maintenance expense, decreased earnings by $580 million. Petroleum product sales of 5.8 million barrels per day were 107,000 barrels per day lower than 2014.

U.S. Downstream earnings were $1.5 billion, a decrease of $153 million from 2014. Non-U.S. Downstream earnings were $3.7 billion, up $2.8 billion from the prior year.

Chemical earnings of $3.5 billion increased $367 million from 2014. Higher margins increased earnings by $790 million. Favorable volume mix effects increased earnings by $130 million. All other items, including unfavorable foreign exchange effects partly offset by asset management gains, decreased earnings by $560 million. Prime product sales of 18.2 million metric tons were down 287,000 metric tons from 2014.

Corporate and financing expenses were $1.5 billion in the first nine months of 2015, down $231 million from 2014.

During the first nine months of 2015, ExxonMobil purchased 38 million shares of its common stock for the treasury at a gross cost of $3.3 billion. These purchases included $2.5 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 October 30, 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.

Mobil and Mobil 1 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
Third Quarter 2015
(millions of dollars, unless noted)
Third QuarterNine Months
2015201420152014
Earnings / Earnings Per Share
 
Total revenues and other income67,344 107,130209,075 324,663
Total costs and other deductions61,595 93,720189,737 281,875
Income before income taxes5,749 13,41019,338 42,788
Income taxes1,365 5,0645,617 15,955
Net income including noncontrolling interests4,384 8,34613,721 26,833
Net income attributable to noncontrolling interests144 276351 883
Net income attributable to ExxonMobil (U.S. GAAP)4,240 8,07013,370 25,950
 
Earnings per common share (dollars)1.01 1.893.18 6.04
 
Earnings per common share
– assuming dilution (dollars)1.01 1.893.18 6.04
 
 
Other Financial Data
 
Dividends on common stock
Total3,060 2,9469,036 8,644
Per common share (dollars)0.73 0.692.15 2.01
 
Millions of common shares outstanding
At September 304,163 4,235
Average – assuming dilution4,190 4,2674,201 4,297
 
ExxonMobil share of equity at September 30170,723 180,587
ExxonMobil share of capital employed at September 30207,303 204,903
 
Income taxes1,365 5,0645,617 15,955
Sales-based taxes5,813 7,51917,308 22,806
All other taxes7,585 9,06022,454 27,223
Total taxes14,763 21,64345,379 65,984
 
ExxonMobil share of income taxes of
equity companies686 1,3542,402 4,586
         
Attachment II
 
Exxon Mobil Corporation
Third Quarter 2015
(millions of dollars)
Third QuarterNine Months
2015  2014  2015  2014  
Earnings (U.S. GAAP)
Upstream
United States(442) 1,257(541) 3,694
Non-U.S.1,800 5,1596,785 18,386
Downstream
United States487 4601,466 1,619
Non-U.S.1,546 5643,740 929
Chemical
United States526 7651,866 1,972
Non-U.S.701 4351,589 1,116
Corporate and financing(378) (570 )(1,535) (1,766 )
Net income attributable to ExxonMobil4,240 8,07013,370 25,950
 
 
Cash flow from operations and asset sales (billions of dollars)
Net cash provided by operating activities
(U.S. GAAP)9.2 12.426.0 37.7
Proceeds associated with asset sales0.5 0.11.6 3.8
Cash flow from operations and asset sales9.7 12.527.6 41.5
             
Attachment III
 
Exxon Mobil Corporation
Third Quarter 2015
 
Third QuarterNine Months
2015201420152014
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil,
thousand barrels per day (kbd)
United States468 442470 448
Canada / South America425 295386 297
Europe197 174198 182
Africa531 483524 479
Asia651 601671 621
Australia / Oceania59 7051 60
Worldwide2,331 2,0652,300 2,087
 
Natural gas production available for sale,
million cubic feet per day (mcfd)
United States3,094 3,4113,155 3,415
Canada / South America229 272267 306
Europe1,495 2,1922,213 2,690
Africa7 16 5
Asia3,910 4,0274,151 4,204
Australia / Oceania789 692693 495
Worldwide9,524 10,59510,485 11,115
 
Oil-equivalent production (koebd)13,918 3,8314,047 3,940
 

 

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

           
Attachment IV
 
Exxon Mobil Corporation
Third Quarter 2015
 
Third QuarterNine Months
2015201420152014
Refinery throughput (kbd)
United States1,681 1,8351,730 1,786
Canada391 409385 402
Europe1,504 1,4991,501 1,459
Asia Pacific687 655636 681
Other194 193192 190
Worldwide4,457 4,5914,444 4,518
 
Petroleum product sales (kbd)
United States2,509 2,6972,556 2,651
Canada501 514493 499
Europe1,549 1,5851,547 1,541
Asia Pacific781 746741 747
Other448 457442 448
Worldwide5,788 5,9995,779 5,886
 
Gasolines, naphthas2,382 2,4822,374 2,440
Heating oils, kerosene, diesel1,908 1,9681,925 1,907
Aviation fuels433 445416 429
Heavy fuels372 389380 398
Specialty products693 715684 712
Worldwide5,788 5,9995,779 5,886
 
Chemical prime product sales,
thousand metric tons (kt)
United States2,377 2,3767,099 7,119
Non-U.S.3,705 3,87311,130 11,397
Worldwide6,082 6,24918,229 18,516
         
Attachment V
 
Exxon Mobil Corporation
Third Quarter 2015
(millions of dollars)
Third QuarterNine Months
2015201420152014
Capital and Exploration Expenditures
Upstream
United States1,992 2,2616,207 7,051
Non-U.S.4,382 6,16313,330 17,031
Total6,374 8,42419,537 24,082
Downstream
United States242 364803 888
Non-U.S.344 4161,031 1,114
Total586 7801,834 2,002
Chemical
United States452 3421,452 1,241
Non-U.S.217 284699 729
Total669 6262,151 1,970
 
Other41 7113 19
 
Worldwide7,670 9,83723,635 28,073
 
 
Exploration expenses charged to income
included above
Consolidated affiliates
United States45 39122 178
Non-U.S.278 279881 948
Equity companies – ExxonMobil share
United States 33 54
Non-U.S.2 10733 192
Worldwide325 4281,039 1,372
         
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
Third Quarter 4,240 1.01
 

 

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

ExxonMobil
Media Relations, 972-444-1107