•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
Mobil Corporation (XOM):
(Dollars in millions, except per share data)
Earnings Per Common Share
Capital and Exploration Expenditures
Exxon Mobil Corporation (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
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.
? Earnings of $4 billion increased 122 percent from the first quarter
? 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
? Dividends per share of $0.75 increased 2.7 percent compared with the
? 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
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
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
years 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 years 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 companys 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
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.
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 ExxonMobils
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
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
ExxonMobils 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 ExxonMobils share after excluding amounts attributable to
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
(millions of dollars, unless noted)
Earnings / Earnings Per Share
Total revenues and other income
Total costs and other deductions
Income before income taxes
Net income including noncontrolling interests
Net income attributable to noncontrolling interests
Net income attributable to ExxonMobil (U.S. GAAP)
Earnings per common share (dollars)
Earnings per common share - assuming dilution (dollars)
Dividends on common stock
Per common share (dollars)
Millions of common shares outstanding
Average - assuming dilution
ExxonMobil share of equity at March 31
ExxonMobil share of capital employed at March 31
All other taxes
ExxonMobil share of income taxes of equity companies
Corporate and financing
Net income attributable to ExxonMobil
Cash flow from operations and asset sales (billions of
Net cash provided by operating activities (U.S. GAAP)
Proceeds associated with asset sales
Cash flow from operations and asset sales
Net production of crude oil, natural gas liquids, bitumen and
synthetic oil, thousand barrels per day (kbd)
Canada / South America
Natural gas production available for sale, million cubic feet per
Canada / South America
Australia / Oceania
Oil-equivalent production (koebd)(1)
(1) Gas converted to oil-equivalent at 6 million cubic feet = 1
Refinery throughput (kbd)
Petroleum product sales (kbd)
Heating oils, kerosene, diesel
Chemical prime product sales, thousand metric tons (kt)
Capital and Exploration Expenditures
Exploration expenses charged to income included above
Equity companies - ExxonMobil share
$ Per Common Share(1)
(1) Computed using the average number of shares outstanding
during each period.
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SOURCE: Exxon Mobil Corporation
Media Relations, 972-444-1107