ExxonMobil shows strong performance in Upstream

ExxonMobil, world’s largest publicly traded international oil and gas company,  has announced its quarterly results.

ExxonMobil Chairman Rex W. Tillerson commented: “ExxonMobil’s first quarter earnings and cash flow reflect the company’s continuing focus on delivering profitable growth and creating long-term shareholder value. Strong performance in the Upstream benefitted from improved production mix and increased unit profitability.

“First quarter 2014 earnings were $9.1 billion, down 4 percent from the first quarter of 2013. Upstream earnings were $7.8 billion, up 11 percent from the previous year.

“Capital and exploration expenditures for the first quarter were $8.4 billion, down 28 percent from the first quarter of 2013.

“The Corporation distributed $5.7 billion to shareholders in the first quarter through dividends and share purchases to reduce shares outstanding.”

FIRST QUARTER HIGHLIGHTS

– Earnings of $9.1 billion decreased $400 million or 4 percent from the first quarter of 2013.

– Earnings per share (assuming dilution) were $2.10, a decrease of 1 percent.

– Capital and exploration expenditures were $8.4 billion, down 28 percent from the first quarter of 2013, reflecting the absence of the $3.1 billion Celtic Exploration Ltd. acquisition.

– Oil-equivalent production decreased 5.6 percent from the first quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2.9 percent.

– Cash flow from operations and asset sales was $16.2 billion, including proceeds associated with asset sales of $1.1 billion.

– Share purchases to reduce shares outstanding were $3 billion.

– Dividends per share of $0.63 increased 11 percent compared with the first quarter of 2013.

ExxonMobil announced the start of natural gas production at the Damar field off the east coast of Peninsular Malaysia. The Damar field has a projected capacity of 200 million cubic feet of gas per day and will provide additional gas supplies to help meet Malaysia’s power and industrial needs.

With the State of Alaska, ExxonMobil and its partners signed a Heads of Agreement (HOA) regarding the proposed Alaska LNG Project. The HOA provides a roadmap for the ramp up of the preliminary front-end engineering design stage and establishes a framework for negotiating multiple project-enabling agreements.

ExxonMobil Chemical announced the opening of a world-scale manufacturing facility to produce up to 50,000 metric tons per year of synthetic base stocks at its integrated refining and chemical complex in Baytown, Texas. The new unit will help meet growing demand for advanced synthetic base stocks for high-performance lubricants.

First Quarter 2014 vs. First Quarter 2013

Upstream earnings were $7,783 million in the first quarter of 2014, up $746 million from the first quarter of 2013. Higher natural gas realizations, partially offset by lower liquids realizations, increased earnings by $410 million. Production volume and mix effects increased earnings by $20 million. All other items, including asset management impacts, increased earnings by $320 million.

On an oil-equivalent basis, production decreased 5.6 percent from the first quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 2.9 percent.

Liquids production totaled 2,148 kbd (thousands of barrels per day), down 45 kbd from the first quarter of 2013. The Abu Dhabi onshore concession expiry reduced volumes by 118 kbd. Excluding this impact, liquids production was up 3.3 percent, driven by project ramp-up, mainly at Kearl, and lower downtime.

First quarter natural gas production was 12,016 mcfd (millions of cubic feet per day), down 1,197 mcfd from 2013, primarily due to lower demand.

Earnings from U.S. Upstream operations were $1,244 million, $385 million higher than the first quarter of 2013. Non-U.S. Upstream earnings were $6,539 million, up $361 million from the prior year.

Downstream earnings were $813 million, down $732 million from the first quarter of 2013. Weaker margins, mainly in refining, decreased earnings by $740 million. Volume and mix effects increased earnings by $80 million. All other items decreased earnings by a net $70 million. Petroleum product sales of 5,817 kbd were 62 kbd higher than last year’s first quarter.

Earnings from the U.S. Downstream were $623 million, down $416 million from the first quarter of 2013. Non-U.S. Downstream earnings of $190 million were $316 million lower than last year.

Chemical earnings of $1,047 million were $90 million lower than the first quarter of 2013. Weaker margins decreased earnings by $90 million, while volume and mix effects increased earnings by $40 million. All other items decreased earnings by $40 million. First quarter prime product sales of 6,128 kt (thousands of metric tons) were 218 kt higher than last year’s first quarter, driven by increased Singapore production.

Corporate and financing expenses were $543 million for the first quarter of 2014, up $324 million from the first quarter of 2013, due primarily to the absence of favorable tax impacts.

During the first quarter of 2014, Exxon Mobil Corporation purchased nearly 41 million shares of its common stock for the treasury at a gross cost of $3.9 billion. These purchases included $3 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. Share purchases to reduce shares outstanding are currently anticipated to equal $3 billion in the second quarter of 2014. 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.

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Press Release, May 02, 2014