Second | ||||||||||||||||||||||
Third Quarter | Quarter | First Nine Months | ||||||||||||||||||||
2018 | 2017 | % | 2018 | % | 2018 | 2017 | % | |||||||||||||||
Earnings Summary | ||||||||||||||||||||||
(Dollars in millions, except per share data) | ||||||||||||||||||||||
Earnings (U.S. GAAP) | 6,240 | 3,970 | 57 | 3,950 | 58 | 14,840 | 11,330 | 31 | ||||||||||||||
Earnings Per Common Share Assuming Dilution |
1.46 | 0.93 | 57 | 0.92 | 59 | 3.47 | 2.66 | 30 | ||||||||||||||
Capital and Exploration Expenditures |
6,586 | 5,987 | 10 | 6,627 | -1 | 18,080 | 14,081 | 28 | ||||||||||||||
Third Quarter 2018 Business Highlights | |
Upstream | |
• | Crude and natural gas prices strengthened in the third quarter. |
• | Permian unconventional production experienced strong growth in the third quarter, with a ramp-up to 38 rigs currently in the Midland and Delaware basins. |
• | Third quarter production strengthened with improved reliability and lower scheduled maintenance. Syncrude operations in Canada were impacted by a power supply disruption that began in late June with recovery by the middle of September. Also in Canada, Kearl net production reached a quarterly record of 230,000 barrels per day. |
Downstream | |
• | Industry fuels margins strengthened during the quarter in North America and Europe supported by widening crude differentials in North America and tightening supply in Europe. The company leveraged its midstream logistics capacity to connect advantaged crudes from the Permian and Western Canada to its refineries and customers. |
• | Overall lower planned maintenance and improved reliability contributed to strong earnings in the quarter. |
Chemical |
|
• | Significant turnaround activities commenced at the Singapore chemical plant in the third quarter and are progressing as scheduled. |
Strengthening the Portfolio | |
• | ExxonMobil made its ninth discovery offshore Guyana at the Hammerhead-1 well, marking its fifth discovery on the Stabroek Block in the past year. Hammerhead-1 encountered approximately 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoir. |
• | ExxonMobil increased its holdings in Brazil’s pre-salt basins after it won the Titã exploration block with co-venturer Qatar Petroleum during Brazil’s fifth pre-salt bid round. The awarded block added more than 71,500 net acres to the ExxonMobil portfolio, expanding its total position in the country to approximately 2.3 million net acres. ExxonMobil will be the operator and own a 64 percent equity interest in the block. |
• | ExxonMobil completed the sale of about 1,000 Esso-branded service stations in Germany to EG Group Ltd. on Oct. 1, 2018. The company is converting its retail business to the branded wholesaler model consistent with other markets in Europe and North America, and will continue selling ExxonMobil-supplied SynergyTM fuels and Mobil-branded lubricants at Esso stations throughout the country. |
• | Production started at the Kaombo project, an offshore development on Angola Block 32, where ExxonMobil has a 15 percent interest. Production will reach an estimated 230,000 barrels per day at its peak, and the associated gas will be delivered to the Angola LNG plant in Soyo. |
Investing for Growth | |
• | ExxonMobil started a new 1.5 million-metric-ton-per-year ethane cracker at its integrated Baytown, Texas chemical and refining complex. The new cracker, part of ExxonMobil’s Growing the Gulf initiative, provides ethylene feedstock to new performance polyethylene lines at the company’s Mont Belvieu plastics plant, which began production in the fall of 2017. The Mont Belvieu plant is one of the largest polyethylene plants in the world, with manufacturing capacity of about 1.3 million metric tons per year. |
• | ExxonMobil signed a cooperation framework agreement with the Guangdong Provincial People’s Government in China to advance discussions concerning the proposed construction of a chemical complex in the Huizhou Dayawan Petrochemical Industrial Park. The new facility would help meet expected demand growth for chemical products in China. The multibillion-dollar project, which remains subject to a final investment decision, would include a 1.2 million-metric-ton-per-year ethylene flexible feed steam cracker, two performance polyethylene lines and two differentiated performance polypropylene lines. Startup is planned for 2023.
The framework agreement also confirms Guangdong Province’s support in progressing the Huizhou LNG receiving terminal, in which ExxonMobil intends to participate, including supply of LNG. |
Advancing Innovative Technologies and Products | |
• | ExxonMobil started a new unit at its integrated Beaumont, Texas facility, increasing production of ultra-low sulfur fuels by about 45,000 barrels per day. The new unit relies on a proprietary catalyst system developed by ExxonMobil to remove sulfur and meet U.S. Environmental Protection Agency specifications while minimizing octane loss. |
• | ExxonMobil joined the Oil and Gas Climate Initiative (OGCI), a voluntary initiative representing 13 of the world’s largest oil and gas producers working collaboratively toward solutions to mitigate the risks of climate change. As part of the initiative, ExxonMobil will expand its investment in research and development of long-term solutions to reduce greenhouse gas emissions and pursue lower-emission technologies. Since 2000, ExxonMobil has spent more than $9 billion on lower-emission energy solutions such as cogeneration, flare reduction, energy efficiency, biofuels, carbon capture and storage and other technologies. |
• | Startup has commenced on a project to expand ExxonMobil’s specialty elastomers plant in Newport, Wales. When completed, the expansion will increase the company’s global capacity to manufacture Santoprene™ thermoplastic vulcanizate, high-performance elastomers used for automotive, industrial and consumer applications, by 25 percent. |
Earnings and Volume Summary |
|||||||||
Millions of Dollars | 3Q | 3Q | |||||||
(unless noted) | 2018 | 2017 | Change | Comments | |||||
Upstream | |||||||||
U.S. | 606 | (238) | +844 | Higher liquids prices and liquids volume growth | |||||
Non-U.S. | 3,623 | 1,805 | +1,818 | Higher prices and favorable one-time tax impacts (+240), partly offset by higher production expenses (-260) and lower volumes including downtime | |||||
Total | 4,229 | 1,567 | +2,662 | Prices +2,580, other volumes +130, downtime volumes -80, other +30 | |||||
Production (koebd) | 3,786 | 3,878 | -92 | Liquids +6 kbd: growth and improved performance, more than offset lower volumes from entitlements, divestments, decline, and downtime
Gas -584 mcfd: decline largely in U.S. aligned with value focus, lower volumes from divestments and lower demand |
|||||
Downstream | |||||||||
U.S. | 961 | 391 | +570 | Higher margins capturing crude differentials, higher volumes and favorable tax impacts (+110) | |||||
Non-U.S. | 681 | 1,141 | -460 | Lower margins, higher downtime / maintenance and unfavorable foreign exchange impacts | |||||
Total | 1,642 | 1,532 | +110 | Margins -110, downtime / maintenance -10, other +230 | |||||
Petroleum Product Sales (kbd) | 5,616 | 5,542 | +74 | ||||||
Chemical | |||||||||
U.S. | 404 | 403 | +1 | Stronger margins and growth volumes, offset by higher growth-related expenses | |||||
Non-U.S. | 309 | 689 | -380 | Weaker margins and higher downtime / maintenance, partly offset by growth volumes | |||||
Total | 713 | 1,092 | -379 | Margins -140, downtime / maintenance -90, other volumes +30, other -180 | |||||
Prime Product Sales (kt) | 6,677 | 6,446 | +231 | Project growth and acquisitions | |||||
Corporate and financing | (344) | (221) | -123 | Lower U.S. tax rate | |||||
Earnings and Volume Summary |
|||||||||
Millions of Dollars | 3Q | 2Q | |||||||
(unless noted) | 2018 | 2018 | Change | Comments | |||||
Upstream | |||||||||
U.S. | 606 | 439 | +167 | Stronger prices, lower expenses and liquids volume growth | |||||
Non-U.S. | 3,623 | 2,601 | +1,022 | Higher volumes including lower downtime, favorable one-time tax items (+270) and stronger prices, partially offset by higher expenses | |||||
Total | 4,229 | 3,040 | +1,189 | Prices +270, other volumes +320, downtime volumes +130, other +470 | |||||
Production (koebd) | 3,786 | 3,647 | +139 | Liquids +74 kbd: growth and lower planned maintenance, more than offset lower entitlements and decline
Gas +388 mcfd: lower downtime |
|||||
Downstream | |||||||||
U.S. | 961 | 695 | +266 | Higher margins capturing crude differentials and lower downtime / maintenance | |||||
Non-U.S. | 681 | 29 | +652 | Higher margins, lower downtime / maintenance and absence of unfavorable foreign exchange impacts | |||||
Total | 1,642 | 724 | +918 | Downtime / maintenance +460, margins +150, foreign exchange impacts +140, other +170 | |||||
Petroleum Product Sales (kbd) | 5,616 | 5,502 | +114 | ||||||
Chemical | |||||||||
U.S. | 404 | 453 | -49 | Weaker margins | |||||
Non-U.S. | 309 | 437 | -128 | Higher downtime / maintenance, partly offset by higher growth-related volumes | |||||
Total | 713 | 890 | -177 | Downtime / maintenance -140, margins -20, other volumes +40, other -60 | |||||
Prime Product Sales (kt) | 6,677 | 6,852 | -175 | Downtime / maintenance, partly offset by project growth | |||||
Corporate and financing | (344) | (704) | +360 | Favorable one-time tax item | |||||
Earnings and Volume Summary |
|||||||||
Millions of Dollars | YTD | YTD | |||||||
(unless noted) | 2018 | 2017 | Change | Comments | |||||
Upstream | |||||||||
U.S. | 1,474 | (439) | +1,913 | Higher liquids prices, liquids volume growth and favorable mix, partly offset by higher expenses and unfavorable tax impacts (-270) | |||||
Non-U.S. | 9,292 | 5,442 | +3,850 | Higher prices, favorable one-time tax impacts (+400) and divestment gains, partly offset by lower volumes and higher expenses | |||||
Total | 10,766 | 5,003 | +5,763 | Prices +6,400, divestment gains +290, higher production expenses -740,
volumes -430, other +240 |
|||||
Production (koebd) | 3,774 | 3,983 | -209 | Liquids -56 kbd: growth in North America, more than offset by lower volumes from decline, entitlements and divestments
Gas -920 mcfd: decline in U.S. aligned with value focus, higher downtime and lower volumes from entitlements and divestments |
|||||
Downstream | |||||||||
U.S. | 1,975 | 1,030 | +945 | Higher margins capturing crude differentials, favorable tax impacts and higher sales, partly offset by higher downtime / maintenance | |||||
Non-U.S. | 1,331 | 3,003 | -1,672 | Higher sales, more than offset by weaker margins, higher downtime / maintenance, unfavorable foreign exchange impacts and lower divestment gains | |||||
Total | 3,306 | 4,033 | -727 | Margins +110, sales +180, downtime / maintenance -760, foreign exchange impacts -250, lower divestment gains -180, other +170 | |||||
Petroleum Product Sales (kbd) | 5,517 | 5,499 | +18 | ||||||
Chemical | |||||||||
U.S. | 1,360 | 1,413 | -53 | Volume growth and stronger margins, more than offset by higher growth-related expenses | |||||
Non-U.S. | 1,254 | 1,835 | -581 | Weaker margins and higher growth-related expenses, partly offset by volume growth and favorable foreign exchange impacts | |||||
Total | 2,614 | 3,248 | -634 | Margins -640, volumes +250, foreign exchange impacts +170, growth-related expenses -490, other +80 | |||||
Prime Product Sales (kt) | 20,197 | 18,638 | +1,559 | Growth from new assets and stronger demand | |||||
Corporate and financing | (1,846) | (954) | -892 | Lower net favorable tax items, lower U.S. tax rate, and higher pension and financing related costs |
Cash Flow from Operations and Asset Sales |
|||||
Millions of Dollars | 3Q | ||||
2018 | Comments | ||||
Net income including noncontrolling interests | 6,446 | Including $206 million for noncontrolling interests | |||
Depreciation | 4,658 | ||||
Changes in working capital | 957 | Including seasonal payables effects | |||
Other | (953) | Mainly changes in deferred income taxes | |||
Cash Flow from Operating Activities (U.S. GAAP) |
11,108 | ||||
Asset sales | 1,491 | Including deposit for Germany service station sales | |||
Cash Flow from Operations and Asset Sales |
12,599 | ||||
|
|||||
Millions of Dollars | YTD | ||||
2018 | Comments | ||||
Net income including noncontrolling interests | 15,215 | Including $375 million for noncontrolling interests | |||
Depreciation | 13,717 | ||||
Changes in working capital | (25) | ||||
Other | (1,500) | Equity company earnings greater than dividends | |||
Cash Flow from Operating Activities (U.S. GAAP) |
27,407 | ||||
Asset sales | 3,239 | ||||
Cash Flow from Operations and Asset Sales |
30,646 | ||||
|
Estimated Key Financial and Operating Data | ||||||||||
Attachment I | ||||||||||
Exxon Mobil Corporation | ||||||||||
Third Quarter 2018 | ||||||||||
(millions of dollars, unless noted) | ||||||||||
Second | ||||||||||
Third Quarter | Quarter | First Nine Months | ||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||
Earnings / Earnings Per Share | ||||||||||
Total revenues and other income1 | 76,605 | 61,100 | 73,501 | 218,317 | 177,848 | |||||
Total costs and other deductions | 67,525 | 55,517 | 66,989 | 195,485 | 162,191 | |||||
Income before income taxes | 9,080 | 5,583 | 6,512 | 22,832 | 15,657 | |||||
Income taxes |
2,634 | 1,498 | 2,526 | 7,617 | 4,218 | |||||
Net income including noncontrolling interests | 6,446 | 4,085 | 3,986 | 15,215 | 11,439 | |||||
Net income attributable to noncontrolling interests | 206 | 115 | 36 | 375 | 109 | |||||
Net income attributable to ExxonMobil (U.S. GAAP) | 6,240 | 3,970 | 3,950 | 14,840 | 11,330 | |||||
Earnings per common share (dollars) | 1.46 | 0.93 | 0.92 | 3.47 | 2.66 | |||||
Earnings per common share – assuming dilution (dollars) |
1.46 | 0.93 | 0.92 | 3.47 | 2.66 | |||||
Exploration expenses, including dry holes | 292 | 284 | 332 | 911 | 1,087 | |||||
Other Financial Data | ||||||||||
Dividends on common stock | ||||||||||
Total | 3,503 | 3,289 | 3,502 | 10,296 | 9,712 | |||||
Per common share (dollars) | 0.82 | 0.77 | 0.82 | 2.41 | 2.29 | |||||
Millions of common shares outstanding | ||||||||||
At period end | 4,234 | 4,237 | ||||||||
Average – assuming dilution | 4,271 | 4,271 | 4,271 | 4,271 | 4,252 | |||||
ExxonMobil share of equity at period end | 190,365 | 182,276 | ||||||||
ExxonMobil share of capital employed at period end | 232,792 | 225,308 | ||||||||
Income taxes | 2,634 | 1,498 | 2,526 | 7,617 | 4,218 | |||||
Total other taxes and duties | 8,939 | 8,287 | 9,003 | 26,757 | 23,876 | |||||
Total taxes | 11,573 | 9,785 | 11,529 | 34,374 | 28,094 | |||||
Sales-based taxes | 5,518 | 5,065 | 5,507 | 16,306 | 14,480 | |||||
Total taxes including sales-based taxes | 17,091 | 14,850 | 17,036 | 50,680 | 42,574 | |||||
ExxonMobil share of income taxes of equity companies |
755 | 512 | 655 | 2,150 | 1,728 |
1 Effective December 31, 2017, the corporation revised its accounting policy election related to the reporting of sales-based taxes, which had no impact on earnings. For more information, please refer to Note 2 in the Financial Section of ExxonMobil’s Form 10-K for the period ended December 31, 2017. |
Attachment II | |||||||||||
Exxon Mobil Corporation | |||||||||||
Third Quarter 2018 | |||||||||||
(millions of dollars) | |||||||||||
Second | |||||||||||
Third Quarter | Quarter | First Nine Months | |||||||||
2018 | 2017 | 2018 | 2018 | 2017 | |||||||
Earnings (U.S. GAAP) | |||||||||||
Upstream | |||||||||||
United States | 606 | (238) | 439 | 1,474 | (439) | ||||||
Non-U.S. | 3,623 | 1,805 | 2,601 | 9,292 | 5,442 | ||||||
Downstream | |||||||||||
United States | 961 | 391 | 695 | 1,975 | 1,030 | ||||||
Non-U.S. | 681 | 1,141 | 29 | 1,331 | 3,003 | ||||||
Chemical | |||||||||||
United States | 404 | 403 | 453 | 1,360 | 1,413 | ||||||
Non-U.S. | 309 | 689 | 437 | 1,254 | 1,835 | ||||||
Corporate and financing | (344) | (221) | (704) | (1,846) | (954) | ||||||
Net income attributable to ExxonMobil | 6,240 | 3,970 | 3,950 | 14,840 | 11,330 |
Attachment III | |||||||||||||
Exxon Mobil Corporation | |||||||||||||
Third Quarter 2018 | |||||||||||||
Second | |||||||||||||
Third Quarter | Quarter | First Nine Months | |||||||||||
2018 | 2017 | 2018 | 2018 | 2017 | |||||||||
Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd) |
|||||||||||||
United States | 555 | 500 | 543 | 541 | 511 | ||||||||
Canada / Other Americas | 454 | 423 | 391 | 424 | 406 | ||||||||
Europe | 127 | 172 | 136 | 136 | 191 | ||||||||
Africa | 387 | 441 | 410 | 391 | 430 | ||||||||
Asia | 706 | 683 | 686 | 699 | 701 | ||||||||
Australia / Oceania | 57 | 61 | 46 | 47 | 55 | ||||||||
Worldwide | 2,286 | 2,280 | 2,212 | 2,238 | 2,294 | ||||||||
Natural gas production available for sale, million cubic feet per day (mcfd) |
|||||||||||||
United States | 2,549 | 2,899 | 2,591 | 2,572 | 2,997 | ||||||||
Canada / Other Americas | 224 | 216 | 226 | 219 | 212 | ||||||||
Europe | 1,004 | 1,326 | 1,136 | 1,555 | 1,840 | ||||||||
Africa | 16 | 6 | 9 | 12 | 5 | ||||||||
Asia | 3,685 | 3,646 | 3,393 | 3,549 | 3,773 | ||||||||
Australia / Oceania | 1,523 | 1,492 | 1,258 | 1,306 | 1,306 | ||||||||
Worldwide | 9,001 | 9,585 | 8,613 | 9,213 | 10,133 | ||||||||
Oil-equivalent production (koebd)1 |
3,786 |
|
3,878 |
|
3,647 |
3,774 |
3,983 |
|
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels. |
Attachment IV | ||||||||||
Exxon Mobil Corporation | ||||||||||
Third Quarter 2018 | ||||||||||
Second | ||||||||||
Third Quarter | Quarter | First Nine Months | ||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||
Refinery throughput (kbd) | ||||||||||
United States | 1,644 | 1,435 | 1,529 | 1,564 | 1,552 | |||||
Canada | 388 | 385 | 364 | 386 | 380 | |||||
Europe | 1,446 | 1,555 | 1,384 | 1,441 | 1,510 | |||||
Asia Pacific | 720 | 715 | 714 | 718 | 678 | |||||
Other | 194 | 197 | 114 | 155 | 199 | |||||
Worldwide | 4,392 | 4,287 | 4,105 | 4,264 | 4,319 | |||||
Petroleum product sales (kbd) | ||||||||||
United States | 2,267 | 2,209 | 2,215 | 2,204 | 2,184 | |||||
Canada | 527 | 508 | 514 | 508 | 499 | |||||
Europe | 1,582 | 1,608 | 1,595 | 1,584 | 1,599 | |||||
Asia Pacific | 824 | 746 | 814 | 811 | 736 | |||||
Other | 416 | 471 | 364 | 410 | 481 | |||||
Worldwide | 5,616 | 5,542 | 5,502 | 5,517 | 5,499 | |||||
Gasolines, naphthas | 2,255 | 2,266 | 2,216 | 2,229 | 2,232 | |||||
Heating oils, kerosene, diesel | 1,837 | 1,836 | 1,781 | 1,815 | 1,840 | |||||
Aviation fuels | 430 | 380 | 405 | 410 | 378 | |||||
Heavy fuels | 411 | 372 | 432 | 397 | 372 | |||||
Specialty products | 683 | 688 | 668 | 666 | 677 | |||||
Worldwide | 5,616 | 5,542 | 5,502 | 5,517 | 5,499 | |||||
Chemical prime product sales, | ||||||||||
thousand metric tons (kt) | ||||||||||
United States | 2,445 | 2,294 | 2,411 | 7,247 | 6,908 | |||||
Non-U.S. | 4,232 | 4,152 | 4,441 | 12,950 | 11,730 | |||||
Worldwide | 6,677 | 6,446 | 6,852 | 20,197 | 18,638 |
Attachment V | ||||||||||
Exxon Mobil Corporation | ||||||||||
Third Quarter 2018 | ||||||||||
(millions of dollars) | ||||||||||
Second | ||||||||||
Third Quarter | Quarter | First Nine Months | ||||||||
2018 | 2017 | 2018 | 2018 | 2017 | ||||||
Capital and Exploration Expenditures | ||||||||||
Upstream | ||||||||||
United States | 2,040 | 1,098 | 1,752 | 5,040 | 2,558 | |||||
Non-U.S. | 3,290 | 2,077 | 3,103 | 8,904 | 6,522 | |||||
Total | 5,330 | 3,175 | 4,855 | 13,944 | 9,080 | |||||
Downstream | ||||||||||
United States | 297 | 181 | 346 | 861 | 559 | |||||
Non-U.S. | 422 | 430 | 884 | 1,702 | 1,183 | |||||
Total | 719 | 611 | 1,230 | 2,563 | 1,742 | |||||
Chemical | ||||||||||
United States | 411 | 392 | 414 | 1,168 | 1,194 | |||||
Non-U.S. | 115 | 1,791 | 119 | 356 | 2,021 | |||||
Total | 526 | 2,183 | 533 | 1,524 | 3,215 | |||||
Other | 11 | 18 | 9 | 49 | 44 | |||||
Worldwide | 6,586 | 5,987 | 6,627 | 18,080 | 14,081 | |||||
Cash flow from operations and asset sales | ||||||||||
Net cash provided by operating activities (U.S. GAAP) |
11,108 | 7,535 | 7,780 | 27,407 | 22,655 | |||||
Proceeds associated with asset sales | 1,491 | 854 | 307 | 3,239 | 1,695 | |||||
Cash flow from operations and asset sales | 12,599 | 8,389 | 8,087 | 30,646 | 24,350 |
Attachment VI | ||||||||
Exxon Mobil Corporation | ||||||||
Earnings | ||||||||
$ Millions | $ Per Common Share 1 | |||||||
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 | ||||||
Second Quarter | 3,350 | 0.78 | ||||||
Third Quarter | 3,970 | 0.93 | ||||||
Fourth Quarter | 8,380 | 1.97 | ||||||
Year | 19,710 | 4.63 | ||||||
2018 |
||||||||
First Quarter | 4,650 | 1.09 | ||||||
Second Quarter | 3,950 | 0.92 | ||||||
Third Quarter | 6,240 | 1.46 |
1 Computed using the average number of shares outstanding during each period. |
Contact:
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