ExxonMobil earns $4 billion during first quarter 2017

IRVING, Texas — Exxon Mobil Corporation 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.

News Apr. 28, 2017

ExxonMobil earns $4 billion during first quarter 2017
  • New discovery, strategic acquisitions and key initiatives position company for growth
  • 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
  First Quarter  
Earnings summary
(Dollars in millions, except per share data)
2017
2016 %
     Earnings
4,010
1,810 122
     Earnings Per Common Share Assuming Dilution
0.95
0.43 121
Capital and Exploration Expenditures 
4,169
5,127 -19


“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 maintenance.

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.

First Quarter Highlights

  • Earnings of $4 billion increased 122 percent from the first quarter of 2016.
  • 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 shareholders.
  • Dividends per share of $0.75 increased 2.7 percent compared with the first quarter of 2016.
  • 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 genetics.

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 field decline.

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 year’s 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 year's 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 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. 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 Permian Basin.

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.

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; 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 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 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 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 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 

Exxon Mobil Corporation First Quarter 2017 – Attachment I
(millions of dollars, unless noted)

 

 

 

  First Quarter
 

Earnings / Earnings Per Share

2017
2016
Total revenues and other income
63,287
48,707
Total costs and other deductions
57,369
46,977
Income before income taxes
5,918
1,730
     Income taxes
1,828
(51)
Net income including noncontrolling interests
4,090
1,781
     Net income attributable to noncontrolling interests
80
(29)
Net income attributable to ExxonMobil (U.S. GAAP)
4,010
1,810
Earnings per common share (dollars)
0.95
0.43
Earnings per common share - assuming dilution (dollars)
0.95
0.43
 

Other financial data

   
Dividends on common stock    
     Total
3,134
3,054
     Per common share (dollars)
0.75
0.73
Millions of common shares outstanding    
     At March 31
4,237
4,147
     Average – assuming dilution
4,223
4,178
ExxonMobil share of equity at March 31
177,151
172,187
ExxonMobil share of capital employed at March 31
223,447
217,242
Income taxes
1,828
(51)
Sales-based taxes
5,342
4,815
All other taxes
6,903
6,731
     Total taxes
14,073
11,495
ExxonMobil share of income taxes of equity companies
647
480

Exxon Mobil Corporation First Quarter 2017 – Attachment II
(millions of dollars)

 

  First Quarter
 

Earnings (U.S. GAAP)

2017
2016
 

Upstream

   
     United States
(18)
(832)
     Non-U.S.
2,270
756
 

Downstream

   
     United States
292
187
     Non-U.S.
824
719
 

Chemical

   
     United States
529
581
     Non-U.S.
642
774
Corporate and funding
(529)
(375)
Net income attributable to ExxonMobil
4,010
1,810
 

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

 
Net cash provided by operating activities (U.S. GAAP)
8.2
4.8
Proceeds associated with asset sales
0.7
0.2
Cash flow from operations and asset sales
8.9
5.0

Exxon Mobil Corporation First Quarter 2017 – Attachment III

  First Quarter
 

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

2017
2016
     United States
513
500
     Canada / South America
421
476
     Europe
205
218
     Africa
433
565
     Asia
711
726
     Australia / Oceania
50
53
Worldwide
2,333
2,538
 

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

   
     United States
3,011
3,160
     Canada / South America
218
258
     Europe
2,768
2,775
     Africa
5
2
     Asia
3,807
3,794
     Australia / Oceania
1,099
735
Worldwide
10,908
10,724
 Oil-equivalent production (koebd)1
4,151
4,325
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.

Exxon Mobil Corporation First Quarter 2017 – Attachment IV

  First Quarter
 

Refinery throughput (kbd)

2017
2016
United States
1,621
1,602
Canada
397
398
Europe
1,453
1,269
Asia Pacific
652
729
Other
201
187
     Worldwide
4,324
4,185
 

Petroleum product sales (kbd)

   
United States
2,155
2,218
Canada
494
476
Europe
1,536
1,429
Asia Pacific
708
766
Other
502
445
     Worldwide
5,395
5,334
Gasolines, naphthas
2,163
2,211
Heating oils, kerosene, diesel
1,833
1,699
Aviation fuels
370
402
Heavy fuels
380
386
Specialty products
649
636
     Worldwide
5,395
5,334
 

Chemical prime product sales, thousand metric tons (kt)

 
United States
2,280
2,400
Non-U.S.
3,792
3,773
     Worldwide
6,072
6,173

 

Exxon Mobil Corporation First Quarter 2017 – Attachment V
(millions of dollars)

  First Quarter
 

Capital and Exploration Expenditures

2017
2016
 

Upstream

   
     United States
704
1,075
     Non-U.S.
2,415
2,904
     Total
3,119
3,979
 

Downstream

   
     United States
205
189
     Non-U.S.
340
339
     Total
545
528
 

Chemical

   
     United States
388
434
     Non-U.S.
109
177
     Total
497
611
 
 
Other
8
9
Worldwide
4,169
5,127
     
 

Exploration expenses charged to income included above

   
Consolidated affiliates  
     United States
34
108
     Non-U.S.
253
246
Equity companies - ExxonMobil share    
     United States
-
-
     Non-U.S.
14
(10)
Worldwide
301
 344

 

Exxon Mobil Corporation Earnings - Attachment VI
  $ 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
1 Computed using the average number of shares outstanding during each period.

Public Company Information: NYSE:XOM

Contact: ExxonMobil Media Relations, 972-444-1107