ExxonMobil Earns $3.4 Billion in Second Quarter 2017
Mobil Corporation (XOM):
Funded Phase 1 of world-class Guyana Liza development, with first oil
expected by 2020
Progressed investments in advantaged manufacturing sites and acquired
strategic assets in Singapore to meet growing product demand
Cash flow from operating activities covered second quarter dividends
and additions to property, plant and equipment
(Dollars in millions, except per share data)
Earnings Per Common Share
Exxon Mobil Corporation today announced estimated second quarter 2017
earnings of $3.4 billion, or $0.78 per diluted share, compared with
$1.7 billion a year earlier, as oil and gas realizations increased and
refining margins improved.
"These solid results across our businesses were driven by higher
commodity prices and a continued focus on operations and business
fundamentals," said Darren W. Woods, chairman and chief executive
officer. "Our job is to grow long-term value by investing in our
integrated portfolio of opportunities that succeed regardless of market
During the second quarter, Upstream earnings rose substantially to $1.2
billion as realizations increased. Downstream results grew 68 percent to
$1.4 billion on improved refining margins and higher refinery volumes.
Chemical earnings were $985 million, $232 million lower than a year ago,
primarily due to higher turnaround activities, lower volumes, and
Upstream volumes declined 1 percent to 3.9 million oil-equivalent
barrels per day compared with a year ago largely due to lower
entitlements, while increases from projects and work programs more than
offset the impacts of field decline.
During the quarter, the corporation distributed $3.3 billion in
dividends to shareholders.
Second Quarter 2017 Highlights
Earnings of $3.4 billion increased 97 percent from the second quarter
Earnings per share assuming dilution were $0.78.
Cash flow from operations and asset sales was $7.1 billion, including
proceeds associated with asset sales of $154 million.
Capital and exploration expenditures were $3.9 billion, down 24
percent from the second quarter of 2016.
Oil-equivalent production was 3.9 million oil-equivalent barrels per
day, down 1 percent from the prior year. Excluding entitlement effects
and divestments, oil-equivalent production was up 1 percent from the
The corporation distributed $3.3 billion in dividends to shareholders.
Dividends per share of $0.77 increased 2.7 percent compared to the
second quarter of 2016.
The company made a final investment decision to proceed with the first
phase of the Liza field development located offshore Guyana.
Production is expected to begin by 2020, less than five years after
discovery of the field, from a floating production, storage, and
offloading vessel designed to produce up to 120,000 barrels of oil per
The Liza-4 well encountered more than 197 feet (60 meters) of
high-quality, oil-bearing sandstone reservoirs, which will underpin a
potential Liza Phase 2 development. In July, the company also
announced positive results from the Payara-2 well, which encountered
59 feet (18 meters) of high-quality, oil-bearing sandstone reservoirs.
Gross recoverable resources for the Stabroek block are now estimated
at 2.25 billion to 2.75 billion oil-equivalent barrels, which includes
Liza and discoveries at Payara and Snoek.
ExxonMobil announced positive results for the Muruk-1 sidetrack 3 well
in Papua New Guinea, located about 13 miles (21 kilometers) northwest
of Hides gas field. The Muruk-1 sidetrack well was safely drilled to
13,550 feet (4,130 meters) and encountered high-quality sandstone
reservoirs southwest of the Muruk-1 natural gas discovery. During a
subsequent production test the well successfully flowed gas and
condensate at an equipment constrained rate of 16 million standard
cubic feet per day.
The company spud its first well on the recently acquired Delaware
Basin acreage, drilling a 12,500 foot (3,810 meters) lateral section.
ExxonMobil continues to expand midstream capabilities in the basin
through strategic partnerships such as the recently signed agreement
with Summit Midstream Partners, LP.
The company safely towed the Hebron platform from the Bull Arm
construction site in Newfoundland and Labrador, Canada, to the Hebron
field in the Jeanne dArc Basin, located about 220 miles (350
kilometers) offshore. The Hebron field is anticipated to produce
150,000 barrels of oil per day from a recoverable resource of 700
million barrels. Commissioning work is underway, with first oil
anticipated before the end of 2017.
The company reached an agreement with Jurong Aromatics Corporation Pte
Ltd to acquire one of the worlds largest aromatics plants located on
Jurong Island in Singapore. The plant, with annual production capacity
of 1.4 million metric tons, will strengthen both operational and
logistical synergies for ExxonMobils integrated refining and
petrochemical complex nearby.
ExxonMobil and SABIC announced the selection of a site in San Patricio
County, Texas, for potential development of a jointly owned
petrochemical complex on the U.S. Gulf Coast. The proposed
multibillion dollar investment would include a world-scale ethane
steam cracker capable of producing 1.8 million metric tons of ethylene
per year, which would feed a monoethylene glycol unit and two
ExxonMobil announced the mechanical completion of two new 650,000
metric tons per year high performance polyethylene lines at its
plastics plant in Mont Belvieu, Texas. The company expects production
to begin during the third quarter of 2017. This project enables
ExxonMobil to economically supply a rapidly growing demand for
high-value polyethylene products.
ExxonMobil announced the completion of an expansion in Singapore to
increase production of grease and synthetic lubricants, including
Mobil 1, the companys flagship synthetic engine oil. This expansion
further strengthens the companys manufacturing capabilities and its
ability to meet the growing demand for grease and synthetic lubricants
products in the Asia Pacific region.
ExxonMobil announced plans to enter the Mexican fuels market in 2017
with Mobil-branded stations and its new signature line of advanced
Synergy gasoline and diesel fuels. The company plans to invest about
$300 million in fuels logistics, product inventories and marketing
over the next 10 years.
ExxonMobil and Synthetic Genomics, Inc. announced a breakthrough in
research into advanced biofuels involving the modification of an algae
strain that more than doubled its oil content without significantly
inhibiting the strains growth. Additional research and extensive
testing are required before commercial application.
Second Quarter 2017 vs. Second Quarter 2016
Upstream earnings were $1.2 billion in the second quarter of 2017, up
$890 million from the second quarter of 2016. Higher liquids and gas
realizations increased earnings by $890 million. Lower liquids volume
and mix effects decreased earnings by $260 million due to lower sales
from timing of liftings. Higher gas volumes and mix effects increased
earnings by $120 million. All other items, including lower expenses,
increased earnings by $140 million.
On an oil-equivalent basis, production decreased 1 percent from the
second quarter of 2016. Liquids production totaled 2.3 million barrels
per day, down 61,000 barrels per day as field decline and lower
entitlements were partly offset by increased project volumes and work
programs. Natural gas production was 9.9 billion cubic feet per day, up
158 million cubic feet per day from 2016 as project ramp-up, primarily
in Australia, was partly offset by field decline and lower demand.
U.S. Upstream results were a loss of $183 million in the second quarter
of 2017, compared to a loss of $514 million in the second quarter of
2016. Non-U.S. Upstream earnings were $1.4 billion, up $559 million from
the prior year period.
Downstream earnings were $1.4 billion, up $560 million from the second
quarter of 2016. Higher margins increased earnings by $220 million,
while favorable volume and mix effects increased earnings by
$90 million. All other items increased earnings by $250 million,
including asset management gains, favorable foreign exchange impacts,
and lower turnaround expenses. Petroleum product sales of 5.6 million
barrels per day were 58,000 barrels per day higher than last years
Earnings from the U.S. Downstream were $347 million, down $65 million
from the second quarter of 2016. Non-U.S. Downstream earnings of
$1 billion were $625 million higher than prior year.
Chemical earnings of $985 million were $232 million lower than the
second quarter of 2016. Weaker margins decreased earnings by
$40 million. Volume and mix effects decreased earnings by $50 million.
All other items decreased earnings by $140 million primarily due to
higher turnaround expenses. Second quarter prime product sales of
6.1 million metric tons were 190,000 metric tons lower than the prior
U.S. Chemical earnings of $481 million were $28 million lower than the
second quarter of 2016. Non-U.S. Chemical earnings of $504 million were
$204 million lower than prior year.
Corporate and financing expenses were $204 million for the second
quarter of 2017, down $432 million from the second quarter of 2016
mainly due to favorable tax items.
First Half 2017 Highlights
Earnings of $7.4 billion increased 110 percent from $3.5 billion in
Earnings per share assuming dilution were $1.73.
Cash flow from operations and asset sales was $16 billion, including
proceeds associated with asset sales of $841 million.
Capital and exploration expenditures were $8.1 billion, down 21
percent from 2016.
Oil-equivalent production was 4 million oil-equivalent barrels per
day, down 3 percent from the prior year. Excluding entitlement effects
and divestments, oil-equivalent production was flat with the prior
The corporation distributed $6.4 billion in dividends to shareholders.
First Half 2017 vs. First Half 2016
Upstream earnings were $3.4 billion, up $3.2 billion from the first half
of 2016. Higher realizations increased earnings by $3.2 billion.
Unfavorable volume and mix effects decreased earnings by $320 million.
All other items increased earnings by $310 million, primarily due to
lower expenses partly offset by unfavorable tax items in the current
On an oil-equivalent basis, production of 4 million barrels per day was
down 3 percent compared to 2016. Liquids production of 2.3 million
barrels per day decreased 133,000 barrels per day as lower entitlements
and field decline were partly offset by increased project volumes and
work programs. Natural gas production of 10.4 billion cubic feet per day
increased 168 million cubic feet per day from 2016 as project ramp-up,
primarily in Australia, was partly offset by field decline.
U.S. Upstream results were a loss of $201 million in 2017, compared to a
loss of $1.3 billion in 2016. Earnings outside the U.S. were
$3.6 billion, up $2.1 billion from the prior year.
Downstream earnings of $2.5 billion increased $770 million from 2016.
Stronger refining and marketing margins increased earnings by
$230 million, while volume and mix effects increased earnings by $260
million. All other items increased earnings by $280 million, mainly
reflecting asset management gains and lower maintenance expense.
Petroleum product sales of 5.5 million barrels per day were
60,000 barrels per day higher than 2016.
U.S. Downstream earnings were $639 million, an increase of $40 million
from 2016. Non-U.S. Downstream earnings were $1.9 billion, up
$730 million from the prior year.
Chemical earnings of $2.2 billion decreased $416 million from 2016.
Weaker margins decreased earnings by $110 million. Volume and mix
effects decreased earnings by $60 million. All other items decreased
earnings by $250 million, primarily due to higher turnaround expenses
and unfavorable foreign exchange effects. Prime product sales of
12.2 million metric tons were down 291,000 metric tons from the first
half of 2016.
U.S. Chemical earnings were $1 billion, down $80 million from 2016.
Non-U.S. Chemical earnings of $1.1 billion were $336 million lower than
Corporate and financing expenses were $733 million in 2017 compared to
$1 billion in 2016, with the decrease mainly due to net favorable
During the first half 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. The company also
issued a combined 96 million shares of common stock during the first
quarter 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 July 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; production rates; 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 recoverable resources and other quantities of oil, natural
gas or condensate 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
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 and
Synergy 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
(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 June 30
ExxonMobil share of capital employed at June 30
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
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
Australia / Oceania
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
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