ExxonMobil earns $16.2 billion in 2015; $2.8 billion during fourth quarter

IRVING, Texas — Exxon Mobil Corporation today announced estimated 2015 earnings of $16.2 billion compared with $32.5 billion a year earlier. Higher Downstream and Chemical earnings were offset by sharply lower commodity prices in the Upstream.

News Feb. 2, 2016

ExxonMobil earns $16.2 billion in 2015; $2.8 billion during fourth quarter
  • Focus remains on business fundamentals, including project execution and cost management
  • Downstream and Chemical results highlight strength of integrated businesses
  • Six major Upstream projects contribute to 3.2 percent volume growth
  Fourth Quarter     Twelve Months  
Earnings summary

(Dollars in millions, except per share data)
2015
2014 %
2015
2014 %
     Earnings
2,780
6,570 -58
16,150
32,520 -50
     Earnings Per Common Share Assuming Dilution
0.67
1.56 -57
3.85
7.6 -49
Capital and Exploration Expenditures
7,416
10,464 -29
31,051
38,537 -19

“While our financial results reflect the challenging environment, we remain focused on the business fundamentals, including project execution and effective cost management,” said Rex W. Tillerson, chairman and chief executive officer. “The scale and diversity of our cash flows, along with our financial strength, provide us with the confidence to invest through the cycle to create long-term shareholder value.”

ExxonMobil completed six major Upstream projects during the year and achieved its full-year plan to produce 4.1 million oil-equivalent barrels per day. These new developments in Canada, Indonesia, Norway, the United States and West Africa added 300,000 oil-equivalent barrels per day of working interest production capacity.

Fourth quarter earnings were $2.8 billion, or $0.67 per diluted share, down from $6.6 billion in the fourth quarter of 2014. Lower commodity prices in the Upstream were partly offset by higher Downstream earnings.

During 2015, the corporation distributed $15.1 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.

Fourth Quarter Highlights

  • Earnings of $2.8 billion decreased $3.8 billion, or 58 percent, from the fourth quarter of 2014.
  • Earnings per share, assuming dilution, were $0.67, a decrease of 57 percent.
  • Capital and exploration expenditures were $7.4 billion, down 29 percent from the fourth quarter of 2014.
  • Oil-equivalent production increased 4.8 percent from the fourth quarter of 2014, with liquids up 14 percent and natural gas down 5.6 percent.
  • Cash flow from operations and asset sales was $5.1 billion, including proceeds associated with asset sales of $785 million.
  • The corporation distributed $3.6 billion to shareholders in the fourth 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 fourth quarter of 2014.
  • ExxonMobil successfully started the onshore central processing facility at the Banyu Urip field in Indonesia, which helped production reach more than 130,000 gross barrels of oil per day in the fourth quarter. The field is currently ramping up to full capacity and is expected to produce 450 million gross barrels of oil over its lifetime.
  • The company is beginning a production pilot program on the La Invernada and Bajo del Choique blocks in the Neuquén province of Argentina. This program includes drilling five wells, as well as constructing a production facility and gas pipeline.

Fourth Quarter 2015 vs. Fourth Quarter 2014

Upstream earnings were $857 million in the fourth quarter of 2015, down $4.6 billion from the fourth quarter of 2014. Lower liquids and gas realizations decreased earnings by $3.7 billion, while volume and mix effects increased earnings by $100 million, benefiting from new developments. All other items, including the absence of both the prior year U.S. deferred income tax effects and recognition of a favorable arbitration ruling for expropriated Venezuela assets, decreased earnings by $960 million.

On an oil-equivalent basis, production increased 4.8 percent from the fourth quarter of 2014. Liquids production totaled 2.5 million barrels per day, up 299,000 barrels per day. Project ramp-up, work programs and entitlement effects were partly offset by field decline. Natural gas production was 10.6 billion cubic feet per day, down 631 million cubic feet per day from 2014 due to regulatory restrictions in the Netherlands and field decline, partly offset by entitlement effects.

U.S. Upstream earnings declined $2 billion from the fourth quarter of 2014 to a loss of $538 million in the fourth quarter of 2015. Non-U.S. Upstream earnings were $1.4 billion, down $2.6 billion from the prior year.

Downstream earnings were $1.4 billion, up $854 million from the fourth quarter of 2014. Stronger margins and favorable volume and mix effects increased earnings by $610 million and $70 million, respectively. All other items increased earnings by $170 million, including lower maintenance expenses and favorable foreign exchange and tax effects, partly offset by unfavorable inventory impacts. Petroleum product sales of 5.7 million barrels per day were 166,000 barrels per day lower than the prior year.

Earnings from the U.S. Downstream were $435 million, up $436 million from the fourth quarter of 2014. Non-U.S. Downstream earnings of $916 million were $418 million higher than last year.

Chemical earnings of $963 million were $264 million lower than the fourth quarter of 2014. Margins decreased earnings by $210 million driven by declining realizations. Volume and mix effects increased earnings by $170 million. All other items decreased earnings by $230 million, largely due to unfavorable foreign exchange, tax and inventory effects. Fourth quarter prime product sales of 6.5 million metric tons were 765,000 metric tons higher than the prior year's fourth quarter.

Corporate and financing expenses were $391 million for the fourth quarter of 2015, compared to $622 million in the fourth quarter of 2014, with the decrease due mainly to net favorable tax-related impacts.

During the fourth quarter of 2015, ExxonMobil purchased 9.4 million shares of its common stock for the treasury at a gross cost of $754 million. These purchases included $500 million to reduce the number of shares outstanding, with the balance used to acquire shares to offset dilution in conjunction with the company’s benefit plans and programs. In the first quarter of 2016, the corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs, but does not plan on making purchases to reduce shares outstanding.

Full Year 2015 Highlights

  • Earnings of $16.2 billion decreased 50 percent from $32.5 billion in 2014.
  • Earnings per share, assuming dilution, decreased 49 percent to $3.85.
  • Capital and exploration expenditures were $31.1 billion, down 19 percent from 2014. The company anticipates further reductions in 2016, with capital and exploration expenditures of $23.2 billion, a decrease of 25 percent from 2015.
  • Oil-equivalent production increased 3.2 percent from 2014, with liquids up 11 percent and natural gas down 5.7 percent.
  • Cash flow from operations and asset sales was $32.7 billion, including proceeds associated with asset sales of $2.4 billion.
  • The corporation distributed $15.1 billion to shareholders in 2015 through dividends and share purchases to reduce shares outstanding.

Full Year 2015 vs. Full Year 2014

Upstream earnings were $7.1 billion, down $20.4 billion from 2014. Lower realizations decreased earnings by $18.8 billion. Favorable volume and mix effects increased earnings by $810 million, including contributions from new developments. All other items decreased earnings by $2.4 billion, primarily due to lower asset management gains and the absence of prior year deferred income tax effects.

On an oil-equivalent basis, production of 4.1 million barrels per day was up 3.2 percent compared to 2014. Liquids production of 2.3 million barrels per day increased 234,000 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, work programs and entitlement effects.

U.S. Upstream earnings declined $6.3 billion from 2014 to a loss of $1.1 billion in 2015. Earnings outside the U.S. were $8.2 billion, down $14.2 billion from the prior year.

Downstream earnings of $6.6 billion increased $3.5 billion from 2014. Stronger margins increased earnings by $4.1 billion, while volume and mix effects decreased earnings by $200 million. All other items decreased earnings by $420 million, reflecting higher maintenance expense and unfavorable inventory impacts, partly offset by favorable foreign exchange effects. Petroleum product sales of 5.8 million barrels per day were 121,000 barrels per day lower than 2014.

U.S. Downstream earnings were $1.9 billion, an increase of $283 million from 2014. Non-U.S. Downstream earnings were $4.7 billion, up $3.2 billion from the prior year.

Chemical earnings of $4.4 billion increased $103 million from 2014. Stronger margins increased earnings by $590 million. Favorable volume and mix effects increased earnings by $220 million. All other items decreased earnings by $710 million, reflecting unfavorable foreign exchange, tax and inventory effects, partly offset by asset management gains. Prime product sales of 24.7 million metric tons were up 478,000 metric tons from 2014.

Corporate and financing expenses were $1.9 billion in 2015 compared to $2.4 billion in 2014, with the decrease due mainly to net favorable tax-related items.

During 2015, ExxonMobil purchased 48 million shares of its common stock for the treasury at a gross cost of $4 billion. These purchases included $3 billion to reduce the number of shares outstanding, with the balance used to acquire shares to offset dilution in conjunction with the company’s benefit plans and programs.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 9:30 a.m. Central Time on February 2, 2016. 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 financial and operating 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 impact of fiscal and commercial terms; 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

Exxon Mobil Corporation Fourth Quarter 2015 – Attachment I
(millions of dollars, unless noted)
Fourth Quarter
Twelve Months
 

Earnings / Earnings Per Share

2015
2014
2015
2014
Total revenues and other income
59,807
87,276
268,882
411,939
Total costs and other deductions
57,179
78,434
246,916
360,309
Income before income taxes
2,628
8,842
21,966
51,630
     Income taxes 1
(202)
2,060
5,415
18,015
Net income including noncontrolling interests
2,830
6,782
16,551
33,615
     Net income attributable to noncontrolling interests
50
212
401
1,095
Net income attributable to ExxonMobil (U.S. GAAP)
2,780
6,570
16,150
32,520
Earnings per common share (dollars)
0.67
1.56
3.85
7.60
Earnings per common share assuming dilution (dollars)
0.67
1.56
3.85
7.60
 

Other Financial Data

Dividends on common stock
     Total
3,054
2,924
12,090
11,568
     Per common share (dollars)
0.73
0.69
2.88
2.70
Millions of common shares outstanding
     At December 31
4,156
4,201
     Average - assuming dilution
4,183
4,235
4,196
4,282
ExxonMobil share of equity at December 31
170,811
174,399
ExxonMobil share of capital employed at December 31
211,658
205,852
Income taxes 1
(202)
2,060
5,415
18,015
Sales-based taxes
5,370
6,536
22,678
29,342
All other taxes
7,336
8,292
29,790
35,515
     Total taxes
12,504
16,888
57,883
82,872
ExxonMobil share of income taxes of equity companies
609
1,092
3,011
5,678
Excludes ExxonMobil share of equity company income taxes noted above. Including income tax from equity companies, ExxonMobil's effective tax rate was 13 percent in the fourth quarter and 34 percent for full-year 2015.
Exxon Mobil Corporation Fourth Quarter 2015 – Attachment II
(millions of dollars)
Fourth Quarter
Twelve Months
 

Earnings (U.S. GAAP)

2015
2014
2015
2014
 

Upstream

     United States
(538)
1,503
(1,079)
5,197
     Non-U.S.
1,395
3,965
8,180
22,351
 

Downstream

     United States
435
(1)
1,901
1,618
     Non-U.S.
916
498
4,656
1,427
 

Chemical

     United States
520
832
2,386
2,804
     Non-U.S.
443
395
2,032
1,511
Corporate and financing
(391)
(622)
(1,926)
(2,388)
Net income attributable to ExxonMobil
2,780
6,570
16,150
32,520
 

Cash flow from operations and asset sales (billions of dollars)

Net cash provided by operating activities (U.S. GAAP)
4.3
7.5
30.3
45.2
Proceeds associated with asset sales
0.8
0.2
2.4
4
Cash flow from operations and asset sales
5.1
7.7
32.7
49.2
Exxon Mobil Corporation Fourth Quarter 2015  – Attachment III
Fourth Quarter
Twelve Months
 

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

2015
2014
2015
2014
     United States
494
473
476
454
     Canada / South America
452
312
402
301
     Europe
222
190
204
184
     Africa
543
519
529
489
     Asia
722
631
684
624
     Australia / Oceania
48
57
50
59
Worldwide
2,481
2,182
2,345
2,111
 

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

     United States
3,123
3,371
3,147
3,404
     Canada / South America
241
320
261
310
     Europe
2,504
3,191
2,286
2,816
     Africa
4
2
5
4
     Asia
4,103
3,786
4,139
4,099
     Australia / Oceania
628
564
677
512
Worldwide
10,603
11,234
10,515
11,145
Oil-equivalent production (koebd)1
4,248
4,054
4,097
3,969
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.

Exxon Mobil Corporation Fourth Quarter 2015 – Attachment IV

Fourth Quarter
Twelve Months
 

Refinery throughput (kbd)

2015
2014
2015
2014
United States
1,649
1,876
1,709
1,809
Canada
390
373
386
394
Europe
1,483
1,438
1,496
1,454
Asia Pacific
679
470
647
628
Other
194
192
194
191
     Worldwide
4,395
4,349
4,432
4,476
 

Petroleum product sales (kbd)

United States
2,416
2,666
2,521
2,655
Canada
472
489
488
496
Europe
1,530
1,597
1,542
1,555
Asia Pacific
758
644
746
721
Other
503
449
457
448
     Worldwide
5,679
5,845
5,754
5,875
Gasolines, naphthas
2,330
2,486
2,363
2,452
Heating oils, kerosene, diesel
1,921
1,926
1,924
1,912
Aviation fuels
403
405
413
423
Heavy fuels
368
371
377
390
Specialty products
657
657
677
698
     Worldwide
5,679
5,845
5,754
5,875
 

Chemical prime product sales, thousand metric tons (kt)

United States
2,565
2,409
9,664
9,528
Non-U.S.
3,919
3,310
15,049
14,707
     Worldwide
6,484
5,719
24,713
24,235
Exxon Mobil Corporation Fourth Quarter 2015 – Attachment V
(millions of dollars)
Fourth Quarter
Twelve Months
 

Capital and Exploration Expenditures

2015
2014
2015
2014
 

Upstream

     United States
1,615
2,350
7,822
9,401
     Non-U.S.
4,255
6,295
17,585
23,326
     Total
5,870
8,645
25,407
32,727
 

Downstream

       
     United States
236
422
1,039
1,310
     Non-U.S.
543
610
1,574
1,724
     Total
779
1,032
2,613
3,034
 

Chemical

       
     United States
493
449
1,945
1,690
     Non-U.S.
199
322
898
1,051
     Total
692
771
2,843
2,741
Other
75
16
188
35
Worldwide
7,416
10,464
31,051
38,537
 

Exploration expenses charged to income included above

Consolidated affiliates
     United States
60
52
182
230
     Non-U.S.
459
484
1,340
1,432
Equity companies - ExxonMobil share
     United States
9
7
12
61
     Non-U.S.
3
49
36
241
Worldwide
531
592
1,570
1,964
 Exxon Mobil Corporation Earnings – Attachment VI
$ 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
Second Quarter 15,910 3.41
Third Quarter 9,570 2.09
Fourth Quarter 9,950 2.2
Year 44,880 9.7
 

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 2.1
Second Quarter 8,780 2.05
Third Quarter 8,070 1.89
Fourth Quarter 6,570 1.56
Year 32,520 7.6
 

2015

First Quarter 4,940 1.17
Second Quarter 4,190 1
Third Quarter 4,240 1.01
Fourth Quarter 2,780 0.67
Year 16,150 3.85
1 Computed using the average number of shares outstanding during each period.

Public Company Information: NYSE:XOM

Contact: ExxonMobil Media Relations, 972-444-1107