ExxonMobil Earns $20.8 Billion in 2018; $6 Billion in Fourth Quarter

Full-year cash flow from operating activities of $36 billion, highest since 2014
Tenth discovery offshore Guyana, increasing Stabroek resource estimate to more than 5 billion barrels
Fourth quarter 2018 liquids production up 4 percent from prior-year quarter driven by Permian growth


								Third
			Fourth Quarter					Quarter			Twelve Months
			2018		2017		%	2018		%	2018		2017		%
Earnings Summary
(Dollars in millions, except per share data)
	Earnings (U.S. GAAP)		6,000		8,380		-28	6,240		-4	20,840		19,710		+6
		U.S. Tax Reform	20		5,942			271			291		5,942
		Asset Impairments	(429	)	(1,294	)		(18	)		(489	)	(1,521	)
	Earnings Excluding U.S. Tax
	Reform and Impairments		6,409		3,732		+72	5,987		+7	21,038		15,289		+38

	Earnings Per Common Share
	Assuming Dilution		1.41		1.97		-28	1.46		-3	4.88		4.63		+5

Capital and Exploration
Expenditures			7,843		8,999		-13	6,586		+19	25,923		23,080		+12

Fourth Quarter 2018 Business Highlights

Upstream

•		Crude prices weakened in the fourth quarter, while natural gas prices strengthened with higher LNG prices and increased seasonal demand.

•		Natural gas volumes were supported by stronger seasonal gas demand in Europe.

•		Permian unconventional production continued to ramp up in the fourth quarter, with production up more than 90 percent from the same period last year.

Downstream

•		Industry fuels margins weakened during the quarter due to lower seasonal gasoline demand and increased supply.

•		The company captured benefits from North American crude differentials with its integrated logistics and manufacturing capabilities.

•		Overall reliability remained strong during a quarter with higher levels of scheduled maintenance activity.

Chemical

•		Chemical margins weakened during the quarter with lengthening supply from recent capacity additions.

•		Sales growth from investments resulted in the highest annual volumes in over ten years.

•		Turnaround activities were completed at the Singapore chemical plant during the fourth quarter.

Strengthening the Portfolio

•		ExxonMobil made its tenth discovery offshore Guyana and increased its estimate of the discovered recoverable resource for the Stabroek Block to more than 5 billion oil-equivalent barrels.

•		ExxonMobil subsidiary Esso Italiana completed its sale of the Augusta refinery, three fuel terminals in Augusta, Palermo and Naples, and associated pipelines to Sonatrach Raffineria Italiana S.r.l. ExxonMobil will continue to serve the Italian market, where it has operated for more than 125 years, with high-performance products, including Esso fuels and Mobil lubricants.

•		The company generated full-year cash proceeds from asset sales of $4.1 billion, slightly above the previous 5-year average of $3.3 billion.

Investing for Growth

•		ExxonMobil made a final investment decision to develop the West Barracouta gas field in Bass Strait to bring new gas supplies to the Australian domestic market. The project, located in the VIC/L1 Block offshore Victoria, is part of the company’s continuing investment in the Gippsland Basin and will be tied back to the existing Barracouta infrastructure offshore in Bass Strait.

•		Mozambique Area 4 co-venture participants, including ExxonMobil, secured liquefied natural gas (LNG) offtake commitments from the partners’ affiliated buyer entities, a key milestone enabling a rapid move toward a final investment decision in 2019 on the first phase of the Rovuma LNG project. Those commitments are subject to the conclusion of fully-termed agreements and the approval of the government of Mozambique.

•		The company commenced operations of a new coker unit at its Antwerp refinery in Belgium to convert heavy, higher-sulfur residual oils into high-value transportation fuels such as marine gasoil and diesel. The new 50,000 barrel-per-day unit expands the refinery’s capacity to meet demand for cleaner transportation fuels throughout northwest Europe. The company’s investment in the new coker will also help meet anticipated demand for lower-sulfur fuel oil to comply with new standards to be implemented by the International Maritime Organization in 2020.

Advancing Innovative Technologies and Products

•		ExxonMobil started up its advanced hydrocracker expansion project at the Rotterdam refinery in the Netherlands. The new unit uses proprietary catalyst in a unique refining configuration to upgrade lower-value vacuum gas oil into higher value EHC™ Group II base stocks and ultra-low sulfur diesel.

•		ExxonMobil has signed a partnership agreement with IBM to advance the potential use of quantum computing in developing next-generation energy and manufacturing technologies. As part of the agreement, ExxonMobil becomes the first energy company to join the IBM Q Network, a worldwide community of Fortune 500 companies, startups, academic institutions and national research labs working to advance quantum computing and explore practical applications for science and business.


Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars)
						Third
		Fourth Quarter				Quarter		Twelve Months
		2018		2017		2018		2018		2017
Earnings (U.S. GAAP)
Upstream
	United States	265		7,061		606		1,739		6,622
	Non-U.S.	3,048		1,291		3,623		12,340		6,733
Downstream
	United States	987		918		961		2,962		1,948
	Non-U.S.	1,717		646		681		3,048		3,649
Chemical
	United States	282		777		404		1,642		2,190
	Non-U.S.	455		493		309		1,709		2,328
Corporate and financing		(754	)	(2,806	)	(344	)	(2,600	)	(3,760	)
Net income attributable to ExxonMobil		6,000		8,380		6,240		20,840		19,710

U.S. Tax Reform
Upstream
	United States	–		7,602		–		–		7,602
	Non-U.S.	–		(480	)	271		271		(480	)
Downstream
	United States	–		618		–		–		618
Chemical
	United States	–		335		–		–		335
Corporate and financing		20		(2,133	)	–		20		(2,133	)
Total U.S. Tax Reform		20		5,942		271		291		5,942

Asset Impairments
Upstream
	United States	(284	)	(481	)	–		(297	)	(521	)
	Non-U.S.	(113	)	(807	)	–		(142	)	(983	)
Downstream
	United States	(12	)	(6	)	–		(12	)	(6	)
	Non-U.S.	(13	)	–		(18	)	(31	)	(11	)
Chemical
	Non-U.S.	(7	)	–		–		(7	)	–
Total Asset Impairments		(429	)	(1,294	)	(18	)	(489	)	(1,521	)

Earnings Excluding U.S. Tax Reform and Impairments
Upstream
	United States	549		(60	)	606		2,036		(459	)
	Non-U.S.	3,161		2,578		3,352		12,211		8,196
Downstream
	United States	999		306		961		2,974		1,336
	Non-U.S.	1,730		646		699		3,079		3,660
Chemical
	United States	282		442		404		1,642		1,855
	Non-U.S.	462		493		309		1,716		2,328
Corporate and financing		(774	)	(673	)	(344	)	(2,620	)	(1,627	)
Earnings excluding U.S. Tax Reform and Impairments		6,409		3,732		5,987		21,038		15,289


Earnings and Volume Summary

Millions of Dollars	4Q 2018	4Q 2017
(unless noted)	Adjusted ¹	Adjusted ¹	Change	Comments
Upstream
U.S.	549	(60)	+609	Higher natural gas prices and liquids volume growth
Non-U.S.	3,161	2,578	+583	Higher natural gas prices, favorable tax and foreign exchange impacts, partly offset by lower liquids prices
Total	3,710	2,518	+1,192	Prices +660, volumes +180, foreign exchange +80, other +270
Production (koebd)	4,010	3,991	+19	Liquids +97 kbd: growth, partly offset by decline, lower entitlements and divestments Gas -467 mcfd: decline largely in U.S. aligned with value focus, lower demand, lower entitlements and divestments, partly offset by unconventional growth

Downstream
U.S.	999	306	+693	Lower downtime/maintenance, higher margins capturing crude differentials, improved yield/sales mix and favorable tax impacts
Non-U.S.	1,730	646	+1,084	Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888), higher margins and improved yield/sales mix, partly offset by higher downtime/maintenance
Total	2,729	952	+1,777	Divestment gains +680, margins +550, yield/sales mix +200, downtime/maintenance +130, other +220
Petroleum Product Sales (kbd)	5,495	5,624	-129

Chemical
U.S.	282	442	-160	Weaker margins
Non-U.S.	462	493	-31	Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by favorable tax item (+212) and higher sales volumes
Total	744	935	-191	Margins -350, downtime/maintenance -90, tax item +210, sales +100, other -60
Prime Product Sales (kt)	6,672	6,782	-110	Downtime/maintenance, partly offset by growth-related volumes

Corporate and financing	(774)	(673)	-101	Lower U.S. tax rate

¹Earnings excluding U.S. Tax Reform and Impairments


Earnings and Volume Summary

Millions of Dollars	4Q 2018	3Q 2018
(unless noted)	Adjusted ¹	Adjusted ¹	Change	Comments
Upstream
U.S.	549	606	-57	Lower liquids prices and higher expenses, partly offset by higher liquids volumes and stronger natural gas prices
Non-U.S.	3,161	3,352	-191	Lower liquids prices, partly offset by higher volumes, stronger natural gas prices and favorable foreign exchange impacts
Total	3,710	3,958	-248	Prices -1,110, volumes +660, foreign exchange +100, other +100
Production (koebd)	4,010	3,786	+224	Liquids +62 kbd: growth and lower unscheduled downtime Gas +973 mcfd: higher seasonal demand and entitlements

Downstream
U.S.	999	961	+38	Higher margins capturing crude differentials and improved yield/sales mix, partly offset by higher downtime/maintenance
Non-U.S.	1,730	699	+1,031	Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888) and higher margins, partly offset by higher downtime/maintenance
Total	2,729	1,660	+1,069	Divestment gains +870, margins +500, yield/sales mix +70, downtime/maintenance -460, other +90
Petroleum Product Sales (kbd)	5,495	5,616	-121

Chemical
U.S.	282	404	-122	Weaker margins
Non-U.S.	462	309	+153	Favorable tax item (+212), partly offset by growth-related expenses
Total	744	713	+31	Tax item +210, margins -110, other -70
Prime Product Sales (kt)	6,672	6,677	-5

Corporate and financing	(774)	(344)	-430	Mainly absence of favorable one-time tax item

¹Earnings excluding U.S. Tax Reform and Impairments


Earnings and Volume Summary

Millions of Dollars	FY 2018	FY 2017
(unless noted)	Adjusted ¹	Adjusted ¹	Change	Comments
Upstream
U.S.	2,036	(459)	+2,495	Higher liquids prices and liquids volume growth and favorable mix, partly offset by higher growth-related expenses
Non-U.S.	12,211	8,196	+4,015	Higher prices and divestment gains / one-time items, partly offset by lower volumes and higher expenses largely from increased maintenance
Total	14,247	7,737	+6,510	Prices +7,040, divestment gains / one-time items +780, maintenance / growth-related expenses -970, volumes -240, other -100
Production (koebd)	3,833	3,985	-152	Liquids -17 kbd: growth in North America, more than offset by decline, lower entitlements and divestments Gas -806 mcfd: decline largely in U.S. aligned with value focus, lower entitlements, divestments, and higher downtime
Downstream
U.S.	2,974	1,336	+1,638	Higher margins capturing crude differentials, favorable tax impacts, lower downtime/maintenance and favorable yield/sales mix
Non-U.S.	3,079	3,660	-581	Higher downtime/maintenance, lower margins and unfavorable foreign exchange impacts, partly offset by higher divestment gains and favorable yield/sales mix
Total	6,053	4,996	+1,057	Margins +660, divestment gains +490, yield/sales mix +260, downtime/maintenance -530, foreign exchange -290, other +470
Petroleum Product Sales (kbd)	5,512	5,530	-18
Chemical
U.S.	1,642	1,855	-213	Volume growth, more than offset by higher growth-related expenses and weaker margins
Non-U.S.	1,716	2,328	-612	Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by volume growth, favorable tax item (+212) and favorable foreign exchange impacts
Total	3,358	4,183	-825	Margins -910, downtime/maintenance -150, sales +320, tax item +210, foreign exchange +140, other -440
Prime Product Sales (kt)	26,869	25,420	+1,449	Growth from new assets and stronger demand
Corporate and financing	(2,620)	(1,627)	-993	Higher pension and financing related costs, lower U.S. tax rate, and lower net favorable tax items

¹Earnings excluding U.S. Tax Reform and Impairments


Cash Flow from Operations and Asset Sales

Millions of Dollars	4Q
	2018		Comments
Net income including noncontrolling interests	6,206		Including $206 million for noncontrolling interests
Depreciation	5,028
Changes in working capital	(1,331	)	Mainly inventory build and timing of tax payments
Other	(1,296	)	Including adjustment for gains on asset sales
Cash Flow from Operating Activities (U.S. GAAP)	8,607
Asset sales	884		Including Augusta
Cash Flow from Operations and Asset Sales	9,491

Millions of Dollars	FY
	2018		Comments
Net income including noncontrolling interests	21,421		Including $581 million for noncontrolling interests
Depreciation	18,745
Changes in working capital	(1,356	)	Inventory build, partly offset by favorable payables
Other	(2,796	)	Including adjustment for gains on asset sales
Cash Flow from Operating Activities (U.S. GAAP)	36,014
Asset sales	4,123		Including Germany Retail, Augusta, Scarborough
Cash Flow from Operations and Asset Sales	40,137


	Estimated Key Financial and Operating Data
						Attachment I
Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars, unless noted)
					Third
		Fourth Quarter			Quarter	Twelve Months
		2018	2017		2018	2018	2017
Earnings / Earnings Per Share
Total revenues and other income		71,895	66,515		76,605	290,212	244,363
Total costs and other deductions		63,774	63,498		67,525	259,259	225,689
Income before income taxes		8,121	3,017		9,080	30,953	18,674
	Income taxes	1,915	(5,392	)	2,634	9,532	(1,174	)
Net income including noncontrolling interests		6,206	8,409		6,446	21,421	19,848
	Net income attributable to noncontrolling interests	206	29		206	581	138
Net income attributable to ExxonMobil (U.S. GAAP)		6,000	8,380		6,240	20,840	19,710

Earnings per common share (dollars)		1.41	1.97		1.46	4.88	4.63

Earnings per common share
	– assuming dilution (dollars)	1.41	1.97		1.46	4.88	4.63

Exploration expenses, including dry holes		555	703		292	1,466	1,790

Other Financial Data
Dividends on common stock
	Total	3,502	3,289		3,503	13,798	13,001
	Per common share (dollars)	0.82	0.77		0.82	3.23	3.06

Millions of common shares outstanding
	At period end					4,237	4,239
	Average – assuming dilution	4,270	4,270		4,271	4,270	4,256

ExxonMobil share of equity at period end						191,794	187,688
ExxonMobil share of capital employed at period end						232,280	232,467

Income taxes		1,915	(5,392	)	2,634	9,532	(1,174	)
Total other taxes and duties		8,473	8,583		8,939	35,230	32,459
	Total taxes	10,388	3,191		11,573	44,762	31,285
Sales-based taxes		5,444	5,245		5,518	21,750	19,725
	Total taxes including sales-based taxes	15,832	8,436		17,091	66,512	51,010

ExxonMobil share of income taxes of equity companies		992	500		755	3,142	2,228


						Attachment II

Exxon Mobil Corporation
Fourth Quarter 2018

					Third
			Fourth Quarter		Quarter	Twelve 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		583	525	555	551	514
	Canada / Other Americas		474	426	454	438	412
	Europe		122	155	127	132	182
	Africa		376	403	387	387	423
	Asia		745	690	706	711	698
	Australia / Oceania		48	52	57	47	54
		Worldwide	2,348	2,251	2,286	2,266	2,283

Natural gas production available for sale, million cubic feet per day (mcfd)
	United States		2,581	2,753	2,549	2,574	2,936
	Canada / Other Americas		247	240	224	227	218
	Europe		1,943	2,266	1,004	1,653	1,948
	Africa		16	6	16	13	5
	Asia		3,804	3,855	3,685	3,613	3,794
	Australia / Oceania		1,383	1,321	1,523	1,325	1,310
		Worldwide	9,974	10,441	9,001	9,405	10,211

Oil-equivalent production (koebd)¹			4,010	3,991	3,786	3,833	3,985

¹Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels.


						Attachment III

Exxon Mobil Corporation
Fourth Quarter 2018

					Third
			Fourth Quarter		Quarter	Twelve Months
			2018	2017	2018	2018	2017
Refinery throughput (kbd)
	United States		1,661	1,379	1,644	1,588	1,508
	Canada		408	391	388	392	383
	Europe		1,366	1,509	1,446	1,422	1,510
	Asia Pacific		670	728	720	706	690
	Other		193	200	194	164	200
		Worldwide	4,298	4,207	4,392	4,272	4,291

Petroleum product sales (kbd)
	United States		2,230	2,209	2,267	2,210	2,190
	Canada		516	501	527	510	499
	Europe		1,474	1,589	1,582	1,556	1,597
	Asia Pacific		825	819	824	815	757
	Other		450	506	416	421	487
		Worldwide	5,495	5,624	5,616	5,512	5,530

	Gasolines, naphthas		2,183	2,353	2,255	2,217	2,262
	Heating oils, kerosene, diesel		1,915	1,878	1,837	1,840	1,850
	Aviation fuels		376	393	430	402	382
	Heavy fuels		387	370	411	395	371
	Specialty products		634	630	683	658	665
		Worldwide	5,495	5,624	5,616	5,512	5,530

Chemical prime product sales, thousand metric tons (kt)
	United States		2,577	2,399	2,445	9,824	9,307
	Non-U.S.		4,095	4,383	4,232	17,045	16,113
		Worldwide	6,672	6,782	6,677	26,869	25,420


						Attachment IV

Exxon Mobil Corporation
Fourth Quarter 2018
(millions of dollars)
					Third
			Fourth Quarter		Quarter	Twelve Months
			2018	2017	2018	2018	2017
Capital and Exploration Expenditures
	Upstream
		United States	2,630	1,158	2,040	7,670	3,716
		Non-U.S.	3,620	6,457	3,290	12,524	12,979
		Total	6,250	7,615	5,330	20,194	16,695
	Downstream
		United States	325	264	297	1,186	823
		Non-U.S.	541	518	422	2,243	1,701
		Total	866	782	719	3,429	2,524
	Chemical
		United States	579	389	411	1,747	1,583
		Non-U.S.	132	167	115	488	2,188
		Total	711	556	526	2,235	3,771

	Other		16	46	11	65	90

	Worldwide		7,843	8,999	6,586	25,923	23,080


Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)			8,607	7,411	11,108	36,014	30,066
Proceeds associated with asset sales			884	1,408	1,491	4,123	3,103
Cash flow from operations and asset sales			9,491	8,819	12,599	40,137	33,169


					Attachment V

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
	Fourth Quarter		6,000		1.41
		Year	20,840		4.88