UNITED STATES
SECURITIES AND
EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
☑ QUARTERLY REPORT PURSUANT TO
SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF
1934
For the quarterly period ended
September 30, 2015
or
☐ TRANSITION REPORT PURSUANT TO
SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF
1934
For the transition period from
__________to________
Commission File Number 1-2256
EXXON MOBIL
CORPORATION
(Exact name of
registrant as specified in its charter)
NEW JERSEY
|
|
13-5409005
|
(State or other
jurisdiction of
|
|
(I.R.S.
Employer
|
incorporation
or organization)
|
|
Identification
Number)
|
5959 LAS COLINAS BOULEVARD, IRVING,
TEXAS 75039-2298
(Address of
principal executive offices) (Zip Code)
(972) 444-1000
(Registrant's
telephone number, including area code)
Indicate by check
mark whether the registrant (1) has filed all reports required to be filed by
Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding
12 months (or for such shorter period that the registrant was required to file
such reports), and (2) has been subject to such filing requirements for the
past 90 days. Yes ☑ No ☐
Indicate by check
mark whether the registrant has submitted electronically and posted on its
corporate Web site, if any, every Interactive Data File required to be
submitted and posted pursuant to Rule 405 of Regulation S-T during the
preceding 12 months (or for such shorter period that the registrant was
required to submit and post such files). Yes ☑ No ☐
Indicate by check
mark whether the registrant is a large accelerated filer, an accelerated filer,
a non-accelerated filer, or a smaller reporting company. See the definitions
of "large accelerated filer," "accelerated filer" and "smaller
reporting company" in Rule 12b-2 of the Exchange Act.
Large
accelerated filer
|
☑
|
Accelerated
filer
|
☐
|
Non-accelerated
filer
|
☐
|
Smaller
reporting company
|
☐
|
Indicate
by check mark whether the registrant is a shell company (as defined in Rule
12b-2 of the Exchange Act). Yes ☐
No ☑
Indicate
the number of shares outstanding of each of the issuer's classes of common
stock, as of the latest practicable date.
Class
|
|
Outstanding as
of September 30, 2015
|
Common stock,
without par value
|
|
4,162,938,512
|
EXXON
MOBIL CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED
SEPTEMBER 30, 2015
TABLE OF CONTENTS
PART
I. FINANCIAL INFORMATION
|
|
|
Item 1. Financial Statements
|
|
Condensed Consolidated
Statement of Income
Three
and nine months ended September 30, 2015 and 2014
|
3
|
Condensed Consolidated Statement of Comprehensive Income
Three
and nine months ended September 30, 2015 and 2014
|
4
|
Condensed Consolidated Balance Sheet
As
of September 30, 2015 and December 31, 2014
|
5
|
|
|
Condensed Consolidated Statement of Cash Flows
Nine
months ended September 30, 2015 and 2014
|
6
|
Condensed Consolidated Statement of Changes in Equity
Nine months ended September 30, 2015 and 2014
|
7
|
Notes to Condensed Consolidated Financial Statements
|
8
|
Item
2. Management's Discussion and Analysis of Financial
Condition and
Results of Operations
|
14
|
Item
3. Quantitative and Qualitative Disclosures About Market Risk
|
22
|
Item
4. Controls and Procedures
|
22
|
|
|
PART
II. OTHER INFORMATION
|
Item
1. Legal Proceedings
|
23
|
Item
2. Unregistered Sales of
Equity Securities and Use of Proceeds
|
24
|
Item
6. Exhibits
|
24
|
Signature
|
25
|
Index
to Exhibits
|
26
|
PART I. FINANCIAL INFORMATION
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Item 1. Financial Statements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
EXXON MOBIL
CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENT OF INCOME
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
Revenues and other income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenue (1)
|
|
|
65,679
|
|
|
103,206
|
|
|
201,797
|
|
|
310,237
|
|
Income from equity affiliates
|
|
|
1,783
|
|
|
3,211
|
|
|
6,125
|
|
|
10,631
|
|
Other income
|
|
|
(118)
|
|
|
713
|
|
|
1,153
|
|
|
3,795
|
|
|
Total revenues and other income
|
|
|
67,344
|
|
|
107,130
|
|
|
209,075
|
|
|
324,663
|
Costs and other deductions
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil and product purchases
|
|
|
32,276
|
|
|
60,068
|
|
|
102,286
|
|
|
180,144
|
|
Production and manufacturing expenses
|
|
|
8,614
|
|
|
9,951
|
|
|
26,579
|
|
|
30,517
|
|
Selling, general and administrative expenses
|
|
|
2,967
|
|
|
3,169
|
|
|
8,511
|
|
|
9,470
|
|
Depreciation and depletion
|
|
|
4,542
|
|
|
4,362
|
|
|
13,293
|
|
|
12,839
|
|
Exploration expenses, including dry holes
|
|
|
324
|
|
|
319
|
|
|
1,005
|
|
|
1,132
|
|
Interest expense
|
|
|
78
|
|
|
88
|
|
|
251
|
|
|
218
|
|
Sales-based taxes (1)
|
|
|
5,813
|
|
|
7,519
|
|
|
17,308
|
|
|
22,806
|
|
Other taxes and duties
|
|
|
6,981
|
|
|
8,244
|
|
|
20,504
|
|
|
24,749
|
|
|
Total costs and other deductions
|
|
|
61,595
|
|
|
93,720
|
|
|
189,737
|
|
|
281,875
|
Income before income taxes
|
|
|
5,749
|
|
|
13,410
|
|
|
19,338
|
|
|
42,788
|
|
Income taxes
|
|
|
1,365
|
|
|
5,064
|
|
|
5,617
|
|
|
15,955
|
Net income including noncontrolling interests
|
|
|
4,384
|
|
|
8,346
|
|
|
13,721
|
|
|
26,833
|
|
Net income attributable to noncontrolling interests
|
|
|
144
|
|
|
276
|
|
|
351
|
|
|
883
|
Net income attributable to ExxonMobil
|
|
|
4,240
|
|
|
8,070
|
|
|
13,370
|
|
|
25,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (dollars)
|
|
|
1.01
|
|
|
1.89
|
|
|
3.18
|
|
|
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution (dollars)
|
|
|
1.01
|
|
|
1.89
|
|
|
3.18
|
|
|
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends per common share (dollars)
|
|
|
0.73
|
|
|
0.69
|
|
|
2.15
|
|
|
2.01
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Sales-based taxes included in sales and other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
operating revenue
|
|
|
5,813
|
|
|
7,519
|
|
|
17,308
|
|
|
22,806
|
The information in the Notes to Condensed Consolidated Financial
Statements is an integral part of these statements.
EXXON MOBIL CORPORATION
|
CONDENSED
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interests
|
|
|
4,384
|
|
|
8,346
|
|
|
13,721
|
|
|
26,833
|
Other comprehensive income (net of income taxes)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation adjustment
|
|
|
(4,023)
|
|
|
(3,828)
|
|
|
(8,379)
|
|
|
(2,986)
|
|
Adjustment for foreign exchange translation (gain)/loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in net income
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
163
|
|
Postretirement benefits reserves adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding amortization)
|
|
|
484
|
|
|
372
|
|
|
1,111
|
|
|
196
|
|
Amortization and settlement of postretirement benefits reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment included in net periodic benefit costs
|
|
|
367
|
|
|
289
|
|
|
1,075
|
|
|
918
|
|
Unrealized change in fair value of stock investments
|
|
|
7
|
|
|
(21)
|
|
|
26
|
|
|
(57)
|
|
Realized (gain)/loss from stock investments included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income
|
|
|
3
|
|
|
-
|
|
|
15
|
|
|
-
|
|
|
Total other comprehensive income
|
|
|
(3,162)
|
|
|
(3,188)
|
|
|
(6,152)
|
|
|
(1,766)
|
Comprehensive income including noncontrolling interests
|
|
|
1,222
|
|
|
5,158
|
|
|
7,569
|
|
|
25,067
|
|
Comprehensive income attributable to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
noncontrolling interests
|
|
|
(175)
|
|
|
(27)
|
|
|
(422)
|
|
|
588
|
Comprehensive income attributable to ExxonMobil
|
|
|
1,397
|
|
|
5,185
|
|
|
7,991
|
|
|
24,479
|
The information in the Notes to Condensed Consolidated Financial
Statements is an integral part of these statements.
EXXON MOBIL CORPORATION
|
|
CONDENSED
CONSOLIDATED BALANCE SHEET
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sept.
30,
|
|
|
Dec.
31,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
4,296
|
|
|
4,616
|
|
|
|
Cash and cash equivalents – restricted
|
|
|
-
|
|
|
42
|
|
|
|
Notes and accounts receivable – net
|
|
|
22,157
|
|
|
28,009
|
|
|
|
Inventories
|
|
|
|
|
|
|
|
|
|
|
Crude oil, products and merchandise
|
|
|
12,249
|
|
|
12,384
|
|
|
|
|
Materials and supplies
|
|
|
4,335
|
|
|
4,294
|
|
|
|
Other current assets
|
|
|
4,197
|
|
|
3,565
|
|
|
|
|
Total current assets
|
|
|
47,234
|
|
|
52,910
|
|
|
Investments, advances and long-term receivables
|
|
|
34,315
|
|
|
35,239
|
|
|
Property, plant and equipment – net
|
|
|
250,583
|
|
|
252,668
|
|
|
Other assets, including intangibles – net
|
|
|
8,530
|
|
|
8,676
|
|
|
|
|
Total assets
|
|
|
340,662
|
|
|
349,493
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
Current liabilities
|
|
|
|
|
|
|
|
|
|
Notes and loans payable
|
|
|
14,473
|
|
|
17,468
|
|
|
|
Accounts payable and accrued liabilities
|
|
|
36,681
|
|
|
42,227
|
|
|
|
Income taxes payable
|
|
|
3,674
|
|
|
4,938
|
|
|
|
|
Total current liabilities
|
|
|
54,828
|
|
|
64,633
|
|
|
Long-term debt
|
|
|
19,839
|
|
|
11,653
|
|
|
Postretirement benefits reserves
|
|
|
24,422
|
|
|
25,802
|
|
|
Deferred income tax liabilities
|
|
|
38,210
|
|
|
39,230
|
|
|
Long-term obligations to equity companies
|
|
|
5,524
|
|
|
5,325
|
|
|
Other long-term obligations
|
|
|
21,000
|
|
|
21,786
|
|
|
|
|
Total liabilities
|
|
|
163,823
|
|
|
168,429
|
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity
|
|
|
|
|
|
|
|
|
Common stock without par value
|
|
|
|
|
|
|
|
|
|
(9,000 million shares authorized, 8,019 million shares issued)
|
|
|
11,443
|
|
|
10,792
|
|
|
Earnings reinvested
|
|
|
412,718
|
|
|
408,384
|
|
|
Accumulated other comprehensive income
|
|
|
(24,336)
|
|
|
(18,957)
|
|
|
Common stock held in treasury
|
|
|
|
|
|
|
|
|
|
(3,856 million shares at September 30, 2015 and
|
|
|
|
|
|
|
|
|
3,818 million shares at December 31, 2014)
|
|
|
(229,102)
|
|
|
(225,820)
|
|
|
|
|
ExxonMobil share of equity
|
|
|
170,723
|
|
|
174,399
|
|
|
Noncontrolling interests
|
|
|
6,116
|
|
|
6,665
|
|
|
|
|
Total equity
|
|
|
176,839
|
|
|
181,064
|
|
|
|
|
Total liabilities and equity
|
|
|
340,662
|
|
|
349,493
|
|
The information in the Notes to Condensed Consolidated Financial
Statements is an integral part of these statements.
EXXON MOBIL CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
Cash flows from operating activities
|
|
|
|
|
|
|
|
|
Net income including noncontrolling interests
|
|
|
13,721
|
|
|
26,833
|
|
|
Depreciation and depletion
|
|
|
13,293
|
|
|
12,839
|
|
|
Changes in operational working capital, excluding cash and debt
|
|
|
(1,037)
|
|
|
(460)
|
|
|
All other items – net
|
|
|
(13)
|
|
|
(1,511)
|
|
|
|
|
Net cash provided by operating activities
|
|
|
25,964
|
|
|
37,701
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities
|
|
|
|
|
|
|
|
|
Additions to property, plant and equipment
|
|
|
(20,354)
|
|
|
(24,068)
|
|
|
Proceeds associated with sales of subsidiaries, property, plant
and
|
|
|
|
|
|
|
|
|
|
equipment, and sales and returns of investments
|
|
|
1,604
|
|
|
3,794
|
|
|
Additional investments and advances
|
|
|
(412)
|
|
|
(1,269)
|
|
|
Other investing activities – net
|
|
|
662
|
|
|
3,415
|
|
|
|
|
Net cash used in investing activities
|
|
|
(18,500)
|
|
|
(18,128)
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities
|
|
|
|
|
|
|
|
|
Additions to long-term debt
|
|
|
8,028
|
|
|
5,503
|
|
|
Reductions in long-term debt
|
|
|
(18)
|
|
|
-
|
|
|
Additions/(reductions) in short-term debt – net
|
|
|
(475)
|
|
|
(514)
|
|
|
Additions/(reductions) in debt with three months or less
maturity
|
|
|
(2,537)
|
|
|
(5,413)
|
|
|
Cash dividends to ExxonMobil shareholders
|
|
|
(9,036)
|
|
|
(8,644)
|
|
|
Cash dividends to noncontrolling interests
|
|
|
(127)
|
|
|
(172)
|
|
|
Tax benefits related to stock-based awards
|
|
|
-
|
|
|
10
|
|
|
Common stock acquired
|
|
|
(3,285)
|
|
|
(9,865)
|
|
|
Common stock sold
|
|
|
-
|
|
|
10
|
|
|
|
|
Net cash used in financing activities
|
|
|
(7,450)
|
|
|
(19,085)
|
|
Effects of exchange rate changes on cash
|
|
|
(334)
|
|
|
(170)
|
|
Increase/(decrease) in cash and cash equivalents
|
|
|
(320)
|
|
|
318
|
|
Cash and cash equivalents at beginning of period
|
|
|
4,616
|
|
|
4,644
|
|
Cash and cash equivalents at end of period
|
|
|
4,296
|
|
|
4,962
|
|
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures
|
|
|
|
|
|
|
|
|
Income taxes paid
|
|
|
5,594
|
|
|
14,338
|
|
|
Cash interest paid
|
|
|
459
|
|
|
295
|
|
2015 Non-Cash
Transactions
An asset exchange
resulted in value received of approximately $500 million including $100 million
in cash. The non-cash portion was not included in the “Proceeds associated with
sales of subsidiaries, property, plant and equipment, and sales and returns of
investments” or the “All other items-net” lines on the Statement of Cash Flows.
Capital leases of
approximately $800 million were not included in “Additions to long-term debt”
or “Additions to property, plant and equipment” lines on the Statement of Cash
Flows.
The information in the Notes to Condensed Consolidated Financial
Statements is an integral part of these statements.
|
EXXON MOBIL
CORPORATION
|
|
CONDENSED
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ExxonMobil
Share of Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accumulated
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
Common
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Compre-
|
|
Stock
|
|
ExxonMobil
|
|
Non-
|
|
|
|
|
|
|
|
|
Common
|
|
Earnings
|
|
hensive
|
|
Held
in
|
|
Share
of
|
|
controlling
|
|
Total
|
|
|
|
|
|
Stock
|
|
Reinvested
|
|
Income
|
|
Treasury
|
|
Equity
|
|
Interests
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013
|
|
|
10,077
|
|
|
387,432
|
|
|
(10,725)
|
|
|
(212,781)
|
|
|
174,003
|
|
|
6,492
|
|
|
180,495
|
|
Amortization of stock-based awards
|
|
|
588
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
588
|
|
|
-
|
|
|
588
|
|
Tax benefits related to stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
awards
|
|
|
10
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
-
|
|
|
10
|
|
Other
|
|
|
6
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
6
|
|
|
-
|
|
|
6
|
|
Net income for the period
|
|
|
-
|
|
|
25,950
|
|
|
-
|
|
|
-
|
|
|
25,950
|
|
|
883
|
|
|
26,833
|
|
Dividends – common shares
|
|
|
-
|
|
|
(8,644)
|
|
|
-
|
|
|
-
|
|
|
(8,644)
|
|
|
(172)
|
|
|
(8,816)
|
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
(1,471)
|
|
|
-
|
|
|
(1,471)
|
|
|
(295)
|
|
|
(1,766)
|
|
Acquisitions, at cost
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(9,865)
|
|
|
(9,865)
|
|
|
-
|
|
|
(9,865)
|
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
10
|
|
|
10
|
|
|
-
|
|
|
10
|
Balance as of September 30, 2014
|
|
|
10,681
|
|
|
404,738
|
|
|
(12,196)
|
|
|
(222,636)
|
|
|
180,587
|
|
|
6,908
|
|
|
187,495
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2014
|
|
|
10,792
|
|
|
408,384
|
|
|
(18,957)
|
|
|
(225,820)
|
|
|
174,399
|
|
|
6,665
|
|
|
181,064
|
|
Amortization of stock-based awards
|
|
|
647
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
647
|
|
|
-
|
|
|
647
|
|
Tax benefits related to stock-based
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
awards
|
|
|
9
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
9
|
|
|
-
|
|
|
9
|
|
Other
|
|
|
(5)
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(5)
|
|
|
-
|
|
|
(5)
|
|
Net income for the period
|
|
|
-
|
|
|
13,370
|
|
|
-
|
|
|
-
|
|
|
13,370
|
|
|
351
|
|
|
13,721
|
|
Dividends – common shares
|
|
|
-
|
|
|
(9,036)
|
|
|
-
|
|
|
-
|
|
|
(9,036)
|
|
|
(127)
|
|
|
(9,163)
|
|
Other comprehensive income
|
|
|
-
|
|
|
-
|
|
|
(5,379)
|
|
|
-
|
|
|
(5,379)
|
|
|
(773)
|
|
|
(6,152)
|
|
Acquisitions, at cost
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
(3,285)
|
|
|
(3,285)
|
|
|
-
|
|
|
(3,285)
|
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
3
|
|
|
3
|
|
|
-
|
|
|
3
|
Balance as of September 30, 2015
|
|
|
11,443
|
|
|
412,718
|
|
|
(24,336)
|
|
|
(229,102)
|
|
|
170,723
|
|
|
6,116
|
|
|
176,839
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine
Months Ended September 30, 2015
|
|
|
|
|
Nine
Months Ended September 30, 2014
|
|
|
|
|
|
|
|
|
Held
in
|
|
|
|
|
|
|
|
|
|
|
Held
in
|
|
|
|
|
Common Stock Share Activity
|
|
Issued
|
|
Treasury
|
|
Outstanding
|
|
|
|
|
Issued
|
|
Treasury
|
|
Outstanding
|
|
|
|
|
(millions
of shares)
|
|
|
|
|
(millions
of shares)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31
|
|
|
8,019
|
|
|
(3,818)
|
|
|
4,201
|
|
|
|
|
|
8,019
|
|
|
(3,684)
|
|
|
4,335
|
|
|
|
Acquisitions
|
|
|
-
|
|
|
(38)
|
|
|
(38)
|
|
|
|
|
|
-
|
|
|
(100)
|
|
|
(100)
|
|
|
|
Dispositions
|
|
|
-
|
|
|
-
|
|
|
-
|
|
|
|
|
|
-
|
|
|
-
|
|
|
-
|
|
Balance as of September 30
|
|
|
8,019
|
|
|
(3,856)
|
|
|
4,163
|
|
|
|
|
|
8,019
|
|
|
(3,784)
|
|
|
4,235
|
The information in the Notes to Condensed Consolidated Financial
Statements is an integral part of these statements.
EXXON MOBIL
CORPORATION
NOTES TO CONDENSED
CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Financial Statement Preparation
These unaudited
condensed consolidated financial statements should be read in the context of
the consolidated financial statements and notes thereto filed with the
Securities and Exchange Commission in the Corporation's 2014 Annual Report on
Form 10-K. In the opinion of the Corporation, the information furnished herein
reflects all known accruals and adjustments necessary for a fair statement of
the results for the periods reported herein. All such adjustments are of a
normal recurring nature. Prior data has been reclassified in certain cases to
conform to the current presentation basis.
The Corporation's
exploration and production activities are accounted for under the
"successful efforts" method.
2. Recently Issued Accounting Standard
In
May 2014, the Financial Accounting Standards Board issued a new standard, Revenue
from Contracts with Customers. The standard establishes a single revenue
recognition model for all contracts with customers, eliminates industry
specific requirements, and expands disclosure requirements. The standard is required
to be adopted beginning January 1, 2018. ExxonMobil is evaluating the standard
and its effect on the Corporation’s financial statements.
3. Litigation and Other Contingencies
Litigation
A variety of claims
have been made against ExxonMobil and certain of its consolidated subsidiaries
in a number of pending lawsuits. Management has regular litigation reviews,
including updates from corporate and outside counsel, to assess the need for accounting
recognition or disclosure of these contingencies. The Corporation accrues an
undiscounted liability for those contingencies where the incurrence of a loss
is probable and the amount can be reasonably estimated. If a range of amounts
can be reasonably estimated and no amount within the range is a better estimate
than any other amount, then the minimum of the range is accrued. The
Corporation does not record liabilities when the likelihood that the liability
has been incurred is probable but the amount cannot be reasonably estimated or
when the liability is believed to be only reasonably possible or remote. For
contingencies where an unfavorable outcome is reasonably possible and which are
significant, the Corporation discloses the nature of the contingency and, where
feasible, an estimate of the possible loss. For purposes of our contingency
disclosures, “significant” includes material matters as well as other matters
which management believes should be disclosed. ExxonMobil will continue to
defend itself vigorously in these matters. Based on a consideration of all
relevant facts and circumstances, the Corporation does not believe the ultimate
outcome of any currently pending lawsuit against ExxonMobil will have a
material adverse effect upon the Corporation's operations, financial condition,
or financial statements taken as a whole.
Other Contingencies
The Corporation and
certain of its consolidated subsidiaries were contingently liable at September
30, 2015, for guarantees relating to notes, loans and performance under
contracts. Where guarantees for environmental remediation and other similar
matters do not include a stated cap, the amounts reflect management’s estimate
of the maximum potential exposure. These guarantees are not reasonably likely
to have a material effect on the Corporation’s financial condition, changes in
financial condition, revenues or expenses, results of operations, liquidity,
capital expenditures or capital resources.
|
|
|
|
|
|
As
of September 30, 2015
|
|
|
|
|
|
|
|
|
Equity
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
Company
|
|
|
Third
Party
|
|
|
|
|
|
|
|
|
|
|
|
Obligations
(1)
|
|
|
Obligations
|
|
|
Total
|
|
|
|
|
|
|
|
|
(millions
of dollars)
|
|
|
|
Guarantees
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt-related
|
|
|
85
|
|
|
37
|
|
|
122
|
|
|
|
|
Other
|
|
|
2,665
|
|
|
4,546
|
|
|
7,211
|
|
|
|
|
|
Total
|
|
|
2,750
|
|
|
4,583
|
|
|
7,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) ExxonMobil share
|
|
|
|
|
|
|
|
|
|
|
|
Additionally, the
Corporation and its affiliates have numerous long-term sales and purchase
commitments in their various business activities, all of which are expected to
be fulfilled with no adverse consequences material to the Corporation’s
operations or financial condition. The Corporation's outstanding unconditional
purchase obligations at September 30, 2015, were similar to those at the prior
year-end period. Unconditional purchase obligations as defined by accounting
standards are those long-term commitments that are noncancelable or cancelable
only under certain conditions, and that third parties have used to secure
financing for the facilities that will provide the contracted goods or
services.
The
operations and earnings of the Corporation and its affiliates throughout the
world have been, and may in the future be, affected from time to time in
varying degree by political developments and laws and regulations, such as forced
divestiture of assets; restrictions on production, imports and exports; price
controls; tax increases and retroactive tax claims; expropriation of property;
cancellation of contract rights and environmental regulations. Both the
likelihood of such occurrences and their overall effect upon the Corporation
vary greatly from country to country and are not predictable.
In accordance with a
nationalization decree issued by Venezuela’s president in February 2007, by May
1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed
the operatorship of the Cerro Negro Heavy Oil Project. This Project had been
operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership
interest in the Project. The decree also required conversion of the Cerro Negro
Project into a “mixed enterprise” and an increase in PdVSA’s or one of its
affiliate’s ownership interest in the Project, with the stipulation that if
ExxonMobil refused to accept the terms for the formation of the mixed
enterprise within a specified period of time, the government would “directly
assume the activities” carried out by the joint venture. ExxonMobil refused to
accede to the terms proffered by the government, and on June 27, 2007, the
government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro
Project.
On September 6, 2007,
affiliates of ExxonMobil filed a Request for Arbitration with the International
Centre for Settlement of Investment Disputes (ICSID). The ICSID Tribunal issued
a decision on June 10, 2010, finding that it had jurisdiction to proceed on the
basis of the Netherlands-Venezuela Bilateral Investment Treaty. On October 9,
2014, the ICSID Tribunal issued its final award finding in favor of the
ExxonMobil affiliates and awarding $1.6 billion as of the date of expropriation,
June 27, 2007, and interest from that date at 3.25% compounded annually until
the date of payment in full. The Tribunal also noted that one of the Cerro
Negro Project agreements provides a mechanism to prevent double recovery
between the ICSID award and all or part of an earlier award of $908 million to
an ExxonMobil affiliate, Mobil Cerro Negro, Ltd., against PdVSA and a PdVSA
affiliate, PdVSA CN, in an arbitration under the rules of the International
Chamber of Commerce.
On June 12, 2015, the
Tribunal rejected in its entirety Venezuela’s October 23, 2014, application to
revise the ICSID award. The Tribunal also lifted the associated stay of
enforcement that had been entered upon the filing of the application to revise.
Still pending is
Venezuela’s February 2, 2015, application to ICSID seeking annulment of the
ICSID award. That application alleges that, in issuing the ICSID award, the
Tribunal exceeded its powers, failed to state reasons on which the ICSID award
was based, and departed from a fundamental rule of procedure. A separate stay
of the ICSID award was entered following the filing of the annulment
application. On July 7, 2015, the ICSID Committee considering the annulment
application heard arguments from the parties on whether to lift the stay of the
award associated with that application. On July 28, 2015, the Committee issued
an order that would lift the stay of enforcement unless, within 30 days,
Venezuela delivered a commitment to pay the award if the application to annul
is denied. On September 17, 2015, the Committee ruled that Venezuela had
complied with the requirement to submit a written commitment to pay the award
and so left the stay of enforcement in place. A hearing on Venezuela’s
application for annulment is scheduled for January 25-27, 2016.
The United States
District Court for the Southern District of New York entered judgment on the
ICSID award on October 10, 2014. Motions filed by Venezuela to vacate that
judgment on procedural grounds and to modify the judgment by reducing the rate
of interest to be paid on the ICSID award from the entry of the court’s
judgment, until the date of payment, were denied on February 13, 2015, and
March 4, 2015, respectively. On March 9, 2015, Venezuela filed a notice of
appeal of the court’s actions on the two motions.
The District Court’s
judgment on the ICSID award is currently stayed until such time as ICSID’s stay
of the award entered following Venezuela’s filing of its application to annul
has been lifted. The net impact of these matters on the Corporation’s
consolidated financial results cannot be reasonably estimated. Regardless, the
Corporation does not expect the resolution to have a material effect upon the
Corporation’s operations or financial condition.
An
affiliate of ExxonMobil is one of the Contractors under a Production Sharing
Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering
the Erha block located in the offshore waters of Nigeria. ExxonMobil's
affiliate is the operator of the block and owns a 56.25 percent interest under
the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of
crude oil in excess of its entitlement under the terms of the PSC. In accordance
with the terms of the PSC, the Contractors initiated arbitration in Abuja,
Nigeria, under the Nigerian Arbitration and Conciliation Act. On
October 24, 2011, a three-member arbitral Tribunal issued an award
upholding the Contractors' position in all material respects and awarding
damages to the Contractors jointly in an amount of approximately $1.8 billion
plus $234 million in accrued interest. The Contractors petitioned a Nigerian
federal court for enforcement of the award, and NNPC petitioned the same court
to have the award set aside. On May 22, 2012, the court set aside the award.
The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial
Division. In June 2013, the Contractors filed a lawsuit against NNPC in the
Nigerian federal high court in order to preserve their ability to seek
enforcement of the PSC in the courts if necessary. In October 2014, the
Contractors filed suit in the United States District Court for the Southern
District of New York to enforce, if necessary, the arbitration award against
NNPC assets residing within that jurisdiction. NNPC has moved to dismiss the
lawsuit. Proceedings in the Southern District of New York are currently stayed.
At this time, the net impact of this matter on the Corporation's consolidated
financial results cannot be reasonably estimated. However, regardless of the
outcome of enforcement proceedings, the Corporation does not expect the
proceedings to have a material effect upon the Corporation's operations or
financial condition.
4. Other Comprehensive
Income Information
|
|
|
|
|
|
Cumulative
|
|
|
Post-
|
|
|
|
|
|
|
|
|
|
|
Foreign
|
|
|
retirement
|
|
|
Unrealized
|
|
|
|
|
|
|
|
Exchange
|
|
|
Benefits
|
|
|
Change
in
|
|
|
ExxonMobil Share of Accumulated Other
|
|
|
Translation
|
|
|
Reserves
|
|
|
Stock
|
|
|
Comprehensive Income
|
|
|
Adjustment
|
|
|
Adjustment
|
|
|
Investments
|
Total
|
|
|
|
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2013
|
|
|
(846)
|
|
|
(9,879)
|
|
|
-
|
(10,725)
|
|
Current period change excluding amounts reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
from accumulated other comprehensive income
|
|
|
(2,637)
|
|
|
176
|
|
|
(57)
|
(2,518)
|
|
Amounts reclassified from accumulated other
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
|
|
163
|
|
|
884
|
|
|
-
|
1,047
|
|
Total change in accumulated other comprehensive income
|
|
|
(2,474)
|
|
|
1,060
|
|
|
(57)
|
(1,471)
|
|
Balance as of September 30, 2014
|
|
|
(3,320)
|
|
|
(8,819)
|
|
|
(57)
|
(12,196)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2014
|
|
|
(5,952)
|
|
|
(12,945)
|
|
|
(60)
|
(18,957)
|
|
Current period change excluding amounts reclassified
|
|
|
|
|
|
|
|
|
|
|
|
|
from accumulated other comprehensive income
|
|
|
(7,497)
|
|
|
1,036
|
|
|
26
|
(6,435)
|
|
Amounts reclassified from accumulated other
|
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive income
|
|
|
-
|
|
|
1,041
|
|
|
15
|
1,056
|
|
Total change in accumulated other comprehensive income
|
|
|
(7,497)
|
|
|
2,077
|
|
|
41
|
(5,379)
|
|
Balance as of September 30, 2015
|
|
|
(13,449)
|
|
|
(10,868)
|
|
|
(19)
|
(24,336)
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
Amounts Reclassified Out of Accumulated Other
|
|
|
September
30,
|
|
|
September
30,
|
|
Comprehensive Income - Before-tax Income/(Expense)
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation gain/(loss) included in net income
|
|
|
|
|
|
|
|
|
|
|
|
|
(Statement of Income line: Other income)
|
-
|
|
|
-
|
|
|
-
|
|
|
(163)
|
|
Amortization and settlement of postretirement benefits reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment included in net periodic benefit costs (1)
|
(534)
|
|
|
(430)
|
|
|
(1,552)
|
|
|
(1,315)
|
|
Realized change in fair value of stock investments included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net income (Statement of Income line: Other income)
|
|
|
(5)
|
|
|
-
|
|
|
(23)
|
|
|
-
|
(1) These accumulated other comprehensive income components are
included in the computation of net periodic pension cost. (See Note 6 – Pension
and Other Postretirement Benefits for additional details.)
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
Income Tax (Expense)/Credit For
|
|
|
September
30,
|
|
|
September
30,
|
|
Components of Other Comprehensive Income
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Foreign exchange translation adjustment
|
|
|
82
|
|
|
70
|
|
|
147
|
|
|
99
|
|
Postretirement benefits reserves adjustment
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(excluding amortization)
|
|
|
(225)
|
|
|
(138)
|
|
|
(527)
|
|
|
(61)
|
|
Amortization and settlement of postretirement benefits reserves
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjustment included in net periodic benefit costs
|
|
|
(167)
|
|
|
(141)
|
|
|
(477)
|
|
|
(397)
|
|
Unrealized change in fair value of stock investments
|
|
(3)
|
|
|
11
|
|
|
(14)
|
|
|
30
|
|
Realized change in fair value of stock investments
|
|
|
|
|
|
|
|
|
|
|
|
|
|
included in net income
|
|
|
(2)
|
|
|
-
|
|
|
(8)
|
|
|
-
|
|
Total
|
|
|
(315)
|
|
|
(198)
|
|
|
(879)
|
|
|
(329)
|
5. Earnings Per
Share
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable to ExxonMobil (millions of dollars)
|
|
4,240
|
|
|
8,070
|
|
|
13,370
|
|
|
25,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average number of common shares
|
|
|
|
|
|
|
|
|
|
|
|
|
|
outstanding (millions of shares)
|
|
4,190
|
|
|
4,267
|
|
|
4,201
|
|
|
4,297
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (dollars) (1)
|
|
1.01
|
|
|
1.89
|
|
|
3.18
|
|
|
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) The calculation of earnings per common share and earnings per
common share – assuming dilution are the same in each period shown.
6. Pension and Other Postretirement Benefits
|
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions
of dollars)
|
|
Components of net benefit cost
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
231
|
|
|
156
|
|
|
625
|
|
|
515
|
|
|
|
Interest cost
|
|
|
196
|
|
|
202
|
|
|
589
|
|
|
605
|
|
|
|
Expected return on plan assets
|
|
|
(208)
|
|
|
(200)
|
|
|
(622)
|
|
|
(600)
|
|
|
|
Amortization of actuarial loss/(gain) and prior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost
|
|
|
137
|
|
|
105
|
|
|
411
|
|
|
313
|
|
|
|
Net pension enhancement and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost
|
|
|
117
|
|
|
113
|
|
|
351
|
|
|
338
|
|
|
|
Net benefit cost
|
|
|
473
|
|
|
376
|
|
|
1,354
|
|
|
1,171
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Pension Benefits - Non-U.S.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
170
|
|
|
144
|
|
|
518
|
|
|
448
|
|
|
|
Interest cost
|
|
|
206
|
|
|
285
|
|
|
636
|
|
|
859
|
|
|
|
Expected return on plan assets
|
|
|
(268)
|
|
|
(300)
|
|
|
(819)
|
|
|
(899)
|
|
|
|
Amortization of actuarial loss/(gain) and prior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost
|
|
|
198
|
|
|
183
|
|
|
617
|
|
|
564
|
|
|
|
Net pension enhancement and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
curtailment/settlement cost
|
|
|
24
|
|
|
-
|
|
|
24
|
|
|
-
|
|
|
|
Net benefit cost
|
|
|
330
|
|
|
312
|
|
|
976
|
|
|
972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Postretirement Benefits
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service cost
|
|
|
42
|
|
|
32
|
|
|
127
|
|
|
107
|
|
|
|
Interest cost
|
|
|
86
|
|
|
89
|
|
|
259
|
|
|
293
|
|
|
|
Expected return on plan assets
|
|
|
(7)
|
|
|
(9)
|
|
|
(21)
|
|
|
(29)
|
|
|
|
Amortization of actuarial loss/(gain) and prior
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
service cost
|
|
|
46
|
|
|
29
|
|
|
137
|
|
|
100
|
|
|
|
Net benefit cost
|
|
|
167
|
|
|
141
|
|
|
502
|
|
|
471
|
7. Financial
Instruments
The fair value of
financial instruments is determined by reference to observable market data and
other valuation techniques as appropriate. The only category of financial
instruments where the difference between fair value and recorded book value is
notable is long-term debt. The estimated fair value of total long-term debt, excluding
capitalized lease obligations, was $19,064 million at September 30, 2015, and
$11,660 million at December 31, 2014, as compared to recorded book values
of $18,790 million at September 30, 2015, and $11,278 million at
December 31, 2014. The increase in the estimated fair value and book value
of long-term debt reflects the Corporation’s issuance of $8.0 billion of
long-term debt in the first quarter of 2015. The $8.0 billion of long-term debt
is comprised of $500 million of floating-rate notes due in 2018, $500 million of
floating-rate notes due in 2022, $1,600 million of 1.305% notes due in 2018,
$1,500 million of 1.912% notes due in 2020, $1,150 million of 2.397% notes due
in 2022, $1,750 million of 2.709% notes due in 2025, and $1,000 million of
3.567% notes due in 2045.
The fair value of long-term debt by
hierarchy level at September 30, 2015, is: Level 1 $18,699 million;
Level 2 $303 million; and Level 3 $62 million. Level 1 represents
quoted prices in active markets. Level 2 includes debt whose fair value is
based upon a publicly available index. Level 3 involves using internal data
augmented by relevant market indicators if available.
8. Disclosures
about Segments and Related Information
|
|
|
|
|
|
Three
Months Ended
|
|
|
Nine
Months Ended
|
|
|
|
|
|
|
September
30,
|
|
|
September
30,
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
Earnings After Income Tax
|
|
(millions
of dollars)
|
|
|
Upstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
(442)
|
|
|
1,257
|
|
|
(541)
|
|
|
3,694
|
|
|
|
Non-U.S.
|
|
|
1,800
|
|
|
5,159
|
|
|
6,785
|
|
|
18,386
|
|
|
Downstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
487
|
|
|
460
|
|
|
1,466
|
|
|
1,619
|
|
|
|
Non-U.S.
|
|
|
1,546
|
|
|
564
|
|
|
3,740
|
|
|
929
|
|
|
Chemical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
526
|
|
|
765
|
|
|
1,866
|
|
|
1,972
|
|
|
|
Non-U.S.
|
|
|
701
|
|
|
435
|
|
|
1,589
|
|
|
1,116
|
|
|
All other
|
|
|
(378)
|
|
|
(570)
|
|
|
(1,535)
|
|
|
(1,766)
|
|
|
Corporate total
|
|
|
4,240
|
|
|
8,070
|
|
|
13,370
|
|
|
25,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and Other Operating Revenue
(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
2,115
|
|
|
3,773
|
|
|
6,471
|
|
|
11,533
|
|
|
|
Non-U.S.
|
|
|
3,760
|
|
|
5,367
|
|
|
12,268
|
|
|
17,607
|
|
|
Downstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
18,737
|
|
|
31,367
|
|
|
57,920
|
|
|
94,210
|
|
|
|
Non-U.S.
|
|
|
34,033
|
|
|
52,580
|
|
|
103,691
|
|
|
157,044
|
|
|
Chemical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
2,718
|
|
|
3,920
|
|
|
8,298
|
|
|
11,546
|
|
|
|
Non-U.S.
|
|
|
4,314
|
|
|
6,196
|
|
|
13,143
|
|
|
18,280
|
|
|
All other
|
|
|
2
|
|
|
3
|
|
|
6
|
|
|
17
|
|
|
Corporate total
|
|
|
65,679
|
|
|
103,206
|
|
|
201,797
|
|
|
310,237
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
Includes sales-based taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Intersegment Revenue
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
982
|
|
|
1,866
|
|
|
3,386
|
|
|
6,133
|
|
|
|
Non-U.S.
|
|
|
5,266
|
|
|
10,466
|
|
|
16,209
|
|
|
31,327
|
|
|
Downstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
3,075
|
|
|
4,390
|
|
|
9,700
|
|
|
13,446
|
|
|
|
Non-U.S.
|
|
|
5,424
|
|
|
11,086
|
|
|
17,224
|
|
|
36,485
|
|
|
Chemical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
1,858
|
|
|
2,775
|
|
|
5,765
|
|
|
7,962
|
|
|
|
Non-U.S.
|
|
|
1,380
|
|
|
2,328
|
|
|
4,063
|
|
|
7,052
|
|
|
All other
|
|
|
74
|
|
|
69
|
|
|
212
|
|
|
207
|
EXXON MOBIL
CORPORATION
Item 2. Management's
Discussion and Analysis of Financial Condition and Results of Operations
FUNCTIONAL EARNINGS SUMMARY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
Earnings (U.S. GAAP)
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
(millions
of dollars)
|
Upstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
(442)
|
|
|
1,257
|
|
|
(541)
|
|
|
3,694
|
|
Non-U.S.
|
|
|
1,800
|
|
|
5,159
|
|
|
6,785
|
|
|
18,386
|
Downstream
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
487
|
|
|
460
|
|
|
1,466
|
|
|
1,619
|
|
Non-U.S.
|
|
|
1,546
|
|
|
564
|
|
|
3,740
|
|
|
929
|
Chemical
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
526
|
|
|
765
|
|
|
1,866
|
|
|
1,972
|
|
Non-U.S.
|
|
|
701
|
|
|
435
|
|
|
1,589
|
|
|
1,116
|
Corporate and financing
|
|
|
(378)
|
|
|
(570)
|
|
|
(1,535)
|
|
|
(1,766)
|
|
Net Income attributable to ExxonMobil (U.S. GAAP)
|
|
|
4,240
|
|
|
8,070
|
|
|
13,370
|
|
|
25,950
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share (dollars)
|
|
|
1.01
|
|
|
1.89
|
|
|
3.18
|
|
|
6.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per common share - assuming dilution (dollars)
|
|
|
1.01
|
|
|
1.89
|
|
|
3.18
|
|
|
6.04
|
References in this
discussion 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.
REVIEW
OF THIRD QUARTER 2015 RESULTS
ExxonMobil’s
third quarter 2015 earnings were $4.2 billion, or
$1.01 per diluted share, compared with $8.1 billion a year
earlier. Significantly lower Upstream realizations more than offset higher
Downstream and Chemical earnings.
The
Corporation maintains a relentless focus on business fundamentals, including
cost management, regardless of commodity prices. Quarterly results reflect the
continued strength of our Downstream and Chemical businesses and underscore the
benefits of our integrated business model.
Upstream
production volumes increased 2.3 percent, or 87,000 barrels per day,
to 3.9 million oil‑equivalent barrels per day. Liquids volumes of
2.3 million barrels per day rose 13 percent driven by new
developments in Canada, Indonesia, the United States, Angola and Nigeria.
Earnings
in the first nine months of 2015 were $13.4 billion, down
$12.6 billion, or 48 percent, from 2014.
Earnings
per share, assuming dilution, decreased 47 percent to $3.18.
Capital
and exploration expenditures were $23.6 billion, down 16 percent from
2014.
Oil‑equivalent
production increased 2.7 percent from 2014, with liquids up
10 percent and natural gas down 5.7 percent.
The
corporation distributed $11.5 billion to shareholders in the first nine
months of 2015 through $9 billion in dividends and $2.5 billion in
share purchases to reduce shares outstanding.
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(millions
of dollars)
|
Upstream earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
(442)
|
|
|
1,257
|
|
|
(541)
|
|
|
3,694
|
|
Non-U.S.
|
|
|
1,800
|
|
|
5,159
|
|
|
6,785
|
|
|
18,386
|
|
|
Total
|
|
|
1,358
|
|
|
6,416
|
|
|
6,244
|
|
|
22,080
|
Upstream
earnings were $1,358 million in the third quarter of 2015, down
$5,058 million from the third quarter of 2014. Lower liquids and gas
realizations decreased earnings by $5.1 billion, while volume and mix
effects, driven by new developments, increased earnings by $110 million.
All other items decreased earnings by $70 million.
On
an oil‑equivalent basis, production increased 2.3 percent from the
third quarter of 2014. Liquids production totaled 2.3 million barrels per
day, up 266,000 barrels per day, with project ramp‑up and
entitlement effects partly offset by field decline. Natural gas production was
9.5 billion cubic feet per day, down 1.1 billion cubic feet per day
from 2014 due to regulatory restrictions in the Netherlands and field decline,
partly offset by project volumes.
U.S.
Upstream earnings declined $1,699 million from the third quarter of 2014
to a loss of $442 million in the third quarter of 2015. Non‑U.S.
Upstream earnings were $1,800 million, down $3,359 million from the
prior year.
Upstream
earnings were $6,244 million for the first nine months of 2015, down
$15,836 million from 2014. Lower realizations decreased earnings by
$15.1 billion. Favorable volume and mix effects increased earnings by
$680 million. All other items, primarily the absence of prior year asset
management gains, decreased earnings by $1.5 billion.
On
an oil‑equivalent basis, production of 4 million barrels per day was
up 2.7 percent compared to the same period in 2014. Liquids production of
2.3 million barrels per day increased 213,000 barrels per day, with
project ramp‑up and entitlement effects partly offset by field decline.
Natural gas production of 10.5 billion cubic feet per day decreased
630 million cubic feet per day from 2014 as regulatory restrictions in the
Netherlands and field decline were partly offset by project ramp‑up and
entitlement effects.
U.S.
Upstream earnings declined $4,235 million from 2014 to a loss of
$541 million for the first nine months of 2015. Earnings outside the U.S.
were $6,785 million, down $11,601 million from the prior year.
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
Upstream additional information
|
|
|
|
(thousands
of barrels daily)
|
|
Volumes reconciliation (Oil-equivalent production)(1)
|
|
|
|
|
|
|
|
|
|
2014
|
|
|
|
3,831
|
|
|
|
|
3,940
|
|
|
Entitlements - Net interest
|
|
|
|
(32)
|
|
|
|
|
(26)
|
|
|
Entitlements - Price / Spend / Other
|
|
|
|
132
|
|
|
|
|
159
|
|
|
Quotas
|
|
|
|
-
|
|
|
|
|
-
|
|
|
Divestments
|
|
|
|
(17)
|
|
|
|
|
(27)
|
|
|
Growth / Other
|
|
|
|
4
|
|
|
|
|
1
|
|
2015
|
|
|
|
3,918
|
|
|
|
|
4,047
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels.
|
|
|
Listed below are descriptions of ExxonMobil’s volumes reconciliation
factors which are provided to facilitate understanding of the terms.
Entitlements - Net
Interest are changes to ExxonMobil’s share of production volumes caused by
non-operational changes to volume-determining factors. These factors consist of
net interest changes specified in Production Sharing Contracts (PSCs) which
typically occur when cumulative investment returns or production volumes
achieve defined thresholds, changes in equity upon achieving pay-out in partner
investment carry situations, equity redeterminations as specified in venture
agreements, or as a result of the termination or expiry of a concession. Once a
net interest change has occurred, it typically will not be reversed by
subsequent events, such as lower crude oil prices.
Entitlements - Price,
Spend and Other are changes to ExxonMobil’s share of production volumes resulting
from temporary changes to non-operational volume-determining factors. These
factors include changes in oil and gas prices or spending levels from one
period to another. According to the terms of contractual arrangements or
government royalty regimes, price or spending variability can increase or
decrease royalty burdens and/or volumes attributable to ExxonMobil. For
example, at higher prices, fewer barrels are required for ExxonMobil to recover
its costs. These effects generally vary from period to period with field
spending patterns or market prices for oil and natural gas. Such factors can
also include other temporary changes in net interest as dictated by specific
provisions in production agreements.
Quotas are changes in
ExxonMobil’s allowable production arising from production constraints imposed
by countries which are members of the Organization of the Petroleum Exporting
Countries (OPEC). Volumes reported in this category would have been readily
producible in the absence of the quota.
Divestments are reductions in
ExxonMobil’s production arising from commercial arrangements to fully or
partially reduce equity in a field or asset in exchange for financial or other
economic consideration.
Growth and Other factors comprise all
other operational and non-operational factors not covered by the above
definitions that may affect volumes attributable to ExxonMobil. Such factors
include, but are not limited to, production enhancements from project and work
program activities, acquisitions including additions from asset exchanges,
downtime, market demand, natural field decline, and any fiscal or commercial
terms that do not affect entitlements.
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(millions
of dollars)
|
Downstream earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
487
|
|
|
460
|
|
|
1,466
|
|
|
1,619
|
|
Non-U.S.
|
|
|
1,546
|
|
|
564
|
|
|
3,740
|
|
|
929
|
|
|
Total
|
|
|
2,033
|
|
|
1,024
|
|
|
5,206
|
|
|
2,548
|
Downstream
earnings were $2,033 million, up $1,009 million from the third
quarter of 2014. Stronger margins increased earnings by $1.4 billion.
Lower refining volumes due to higher maintenance‑related activities
decreased earnings by $280 million. All other items, including maintenance‑driven
expenditures partly offset by favorable foreign exchange impacts, decreased
earnings by $110 million. Petroleum product sales of 5.8 million
barrels per day were 211,000 barrels per day lower than the prior year.
Earnings
from the U.S. Downstream were $487 million, up $27 million from the
third quarter of 2014. Non‑U.S. Downstream earnings of
$1,546 million were $982 million higher than last year.
Downstream earnings of
$5,206 million for the first nine months of 2015 increased
$2,658 million from 2014. Stronger margins increased earnings by
$3.5 billion. Volume and mix effects decreased earnings by
$280 million. All other items, including higher maintenance expense,
decreased earnings by $580 million. Petroleum product sales of
5.8 million barrels per day were 107,000 barrels per day lower than
2014.
U.S. Downstream earnings were
$1,466 million, a decrease of $153 million from 2014. Non‑U.S.
Downstream earnings were $3,740 million, up $2,811 million from the prior
year.
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(millions
of dollars)
|
Chemical earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
United States
|
|
|
526
|
|
|
765
|
|
|
1,866
|
|
|
1,972
|
|
Non-U.S.
|
|
|
701
|
|
|
435
|
|
|
1,589
|
|
|
1,116
|
|
|
Total
|
|
|
1,227
|
|
|
1,200
|
|
|
3,455
|
|
|
3,088
|
Chemical
earnings of $1,227 million were $27 million higher than the third
quarter of 2014. Margins increased earnings by $210 million, benefiting
from lower feedstock costs. Volume mix effects increased earnings by
$30 million. All other items, primarily unfavorable foreign exchange
effects, decreased earnings by $210 million. Third quarter prime product
sales of 6.1 million metric tons were 167,000 metric tons lower
than the prior year's third quarter.
Chemical
earnings of $3,455 million for the first nine months of 2015 increased
$367 million from 2014. Higher margins increased earnings by
$790 million. Favorable volume mix effects increased earnings by
$130 million. All other items, including unfavorable foreign exchange
effects partly offset by asset management gains, decreased earnings by
$560 million. Prime product sales of 18.2 million metric tons were
down 287,000 metric tons from 2014.
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and financing earnings
|
|
|
(378)
|
|
|
(570)
|
|
|
(1,535)
|
|
|
(1,766)
|
Corporate
and financing expenses were $378 million for the third quarter of 2015,
down $192 million from the third quarter of 2014 driven by favorable tax
and financing items.
Corporate
and financing expenses were $1,535 billion in the first nine months of
2015, down $231 million from 2014.
LIQUIDITY AND
CAPITAL RESOURCES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(millions
of dollars)
|
Net cash provided by/(used in)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating activities
|
|
|
|
|
|
|
|
|
25,964
|
|
|
37,701
|
|
Investing activities
|
|
|
|
|
|
|
|
|
(18,500)
|
|
|
(18,128)
|
|
Financing activities
|
|
|
|
|
|
|
|
|
(7,450)
|
|
|
(19,085)
|
Effect of exchange rate changes
|
|
|
|
|
|
|
|
|
(334)
|
|
|
(170)
|
Increase/(decrease) in cash and cash equivalents
|
|
|
|
|
|
|
|
|
(320)
|
|
|
318
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (at end of period)
|
|
|
|
|
|
|
|
|
4,296
|
|
|
4,962
|
Cash and cash equivalents – restricted (at end of period)
|
|
|
|
|
|
|
|
|
-
|
|
|
52
|
Total cash and cash equivalents (at end of period)
|
|
|
|
|
|
|
|
|
4,296
|
|
|
5,014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations and asset sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities (U.S. GAAP)
|
|
|
9,174
|
|
|
12,396
|
|
|
25,964
|
|
|
37,701
|
|
Proceeds associated with sales of subsidiaries, property,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
plant & equipment, and sales and returns of investments
|
|
|
491
|
|
|
127
|
|
|
1,604
|
|
|
3,794
|
|
Cash flow from operations and asset sales
|
|
|
9,665
|
|
|
12,523
|
|
|
27,568
|
|
|
41,495
|
Because of the
ongoing nature of our asset management and divestment program, we believe it is
useful for investors to consider proceeds associated with asset sales together
with cash provided by operating activities when evaluating cash available for
investment in the business and financing activities, including shareholder
distributions.
Cash flow from
operations and asset sales in the third quarter of 2015 was $9.7 billion,
including asset sales of $0.5 billion, a decrease of $2.8 billion from the
comparable 2014 period due to lower earnings partially offset by higher
proceeds from asset sales.
Cash provided by operating
activities totaled $26.0 billion for the first nine months of 2015, $11.7
billion lower than 2014. The major source of funds was net income including noncontrolling
interests of $13.7 billion, a decrease of $13.1 billion from the prior year
period. The adjustment for the noncash provision of $13.3 billion for
depreciation and depletion increased by $0.5 billion. Changes in operational
working capital decreased cash flows by $1.0 billion in 2015 and $0.5 billion
in 2014. All other items net had no impact on cash in 2015 and decreased cash
by $1.5 billion in 2014. For additional details, see the Condensed Consolidated
Statement of Cash Flows on page 6.
Investing activities
for the first nine months of 2015 used net cash of $18.5 billion, a decrease of
$0.4 billion compared to the prior year. Spending for additions to property,
plant and equipment of $20.4 billion was $3.7 billion lower than 2014. Proceeds
from asset sales of $1.6 billion decreased $2.2 billion. Additional investment
and advances decreased $0.9 billion to $0.4 billion. Other investing activities
– net decreased $2.7 billion to $0.7 billion.
Cash flow from
operations and asset sales in the first nine months of 2015 was $27.6 billion,
including asset sales of $1.6 billion, and decreased $13.9 billion from the
comparable 2014 period primarily due to lower earnings and lower proceeds from
asset sales.
During the first quarter
of 2015, the Corporation issued $8.0 billion of long-term debt and used part of
the proceeds to reduce short-term debt. Net cash used in financing activities
of $7.5 billion in the first nine months of 2015 was $11.6 billion lower than
2014 reflecting the 2015 debt issuance and a lower level of purchases of shares
of ExxonMobil stock in 2015.
During the third
quarter of 2015, Exxon Mobil Corporation purchased 6.5 million shares of its
common stock for the treasury at a gross cost of $500 million. These purchases
were to reduce the number of shares outstanding. Shares outstanding decreased
from 4,169 million at the end of second quarter to 4,163 million at the end of
the third quarter 2015. 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.
The Corporation distributed to shareholders a total of $3.6
billion in the third quarter of 2015 through dividends and share purchases to
reduce shares outstanding.
Total cash and cash
equivalents of $4.3 billion at the end of the third quarter of 2015 compared to
$5.0 billion at the end of the third quarter of 2014.
Total debt of $34.3
billion compared to $29.1 billion at year-end 2014. The Corporation's debt to
total capital ratio was 16.2 percent at the end of the third quarter of 2015
compared to 13.9 percent at year-end 2014.
The Corporation has
access to significant capacity of long-term and short-term liquidity.
Internally generated funds are expected to cover the majority of financial
requirements, supplemented by long-term and short-term debt.
The Corporation, as
part of its ongoing asset management program, continues to evaluate its mix of
assets for potential upgrade. Because of the ongoing nature of this program,
dispositions will continue to be made from time to time which will result in
either gains or losses. Additionally, the Corporation continues to evaluate
opportunities to enhance its business portfolio through acquisitions of assets
or companies, and enters into such transactions from time to time. Key criteria
for evaluating acquisitions include potential for future growth and attractive
current valuations. Acquisitions may be made with cash, shares of the Corporation’s
common stock, or both.
Litigation and other
contingencies are discussed in Note 3 to the unaudited condensed consolidated
financial statements.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TAXES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes
|
|
|
1,365
|
|
|
5,064
|
|
|
5,617
|
|
|
15,955
|
|
|
Effective income tax rate
|
|
|
32
|
%
|
|
43
|
%
|
|
37
|
%
|
|
43
|
%
|
Sales-based taxes
|
|
|
5,813
|
|
|
7,519
|
|
|
17,308
|
|
|
22,806
|
|
All other taxes and duties
|
|
|
7,585
|
|
|
9,060
|
|
|
22,454
|
|
|
27,223
|
|
|
|
Total
|
|
|
14,763
|
|
|
21,643
|
|
|
45,379
|
|
|
65,984
|
|
Income,
sales-based and all other taxes and duties totaled $14.8 billion for the third
quarter of 2015, a decrease of $6.9 billion from 2014. Income tax expense
decreased by $3.7 billion to $1.4 billion reflecting lower earnings and a lower
effective tax rate. The effective income tax rate was 32 percent compared to 43
percent in the prior year period due to
favorable one-time items and a lower share of earnings in higher tax
jurisdictions. Sales-based taxes and all other taxes
and duties decreased by $3.2 billion to $13.4 billion as a result of lower
sales realizations.
Income,
sales-based and all other taxes and duties totaled $45.4 billion for the first nine
months of 2015, a decrease of $20.6 billion from 2014. Income tax expense
decreased by $10.3 billion to $5.6 billion as a result of lower earnings and a
lower effective tax rate. The effective income tax rate was 37 percent compared
to 43 percent in the prior year due primarily to a lower share of earnings in
higher tax jurisdictions. Sales-based and all other taxes decreased by $10.3
billion to $39.8 billion as a result of lower sales
realizations.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITAL AND EXPLORATION EXPENDITURES
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
|
First
Nine Months
|
|
|
|
|
|
2015
|
|
|
2014
|
|
|
2015
|
|
|
2014
|
|
|
|
|
(millions
of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream (including exploration expenses)
|
|
|
6,374
|
|
|
8,424
|
|
|
19,537
|
|
|
24,082
|
|
Downstream
|
|
|
586
|
|
|
780
|
|
|
1,834
|
|
|
2,002
|
|
Chemical
|
|
|
669
|
|
|
626
|
|
|
2,151
|
|
|
1,970
|
|
Other
|
|
|
41
|
|
|
7
|
|
|
113
|
|
|
19
|
|
|
Total
|
|
|
7,670
|
|
|
9,837
|
|
|
23,635
|
|
|
28,073
|
|
Capital and
exploration expenditures in the third quarter of 2015
were $7.7 billion, down 22 percent from the third quarter of 2014, in line with
plan.
Capital
and exploration expenditures in the first nine months of 2015 were $23.6
billion, down 16 percent from the first nine months of 2014 due
primarily to lower major project spending. The Corporation anticipates an
average investment profile of about $34 billion per
year for the next few years. Actual spending could vary depending on the
progress of individual projects and property acquisitions.
In 2014,
the European Union and United States imposed sanctions relating to the Russian
energy sector. ExxonMobil continues to comply with all sanctions and regulatory
licenses applicable to its affiliates’ investments in the Russian Federation.
RECENTLY ISSUED ACCOUNTING STANDARDS
In May 2014, the
Financial Accounting Standards Board issued a new standard, Revenue from
Contracts with Customers. The standard establishes a single revenue
recognition model for all contracts with customers, eliminates industry
specific requirements and expands disclosure requirements. The standard is
required to be adopted beginning January 1, 2018. ExxonMobil is evaluating the
standard and its effect on the Corporation’s financial statements.
FORWARD-LOOKING STATEMENTS
Statements
relating to future plans, projections, events or conditions are forward-looking
statements. Actual results, including project plans, costs, timing, and
capacities; capital and exploration expenditures; resource recoveries; and
share purchase levels, could differ materially due to factors including:
changes in oil or gas prices or other market or economic conditions affecting
the oil and gas industry, 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
outcome of commercial negotiations; changes in technical or operating
conditions; 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 2014 Form 10-K. We assume no duty to update these
statements as of any future date.
The term
“project” as used in this report can refer to a variety of different activities
and does not necessarily have the same meaning as in any government payment
transparency reports.
Item 3. Quantitative and Qualitative Disclosures About Market
Risk
Information about
market risks for the nine months ended September 30, 2015, does not differ
materially from that discussed under Item 7A of the registrant's Annual Report
on Form 10-K for 2014.
Item 4. Controls and
Procedures
As indicated in the
certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer,
Principal Financial Officer and Principal Accounting Officer have evaluated the
Corporation’s disclosure controls and procedures as of September 30, 2015.
Based on that evaluation, these officers have concluded that the Corporation’s
disclosure controls and procedures are effective in ensuring that information
required to be disclosed by the Corporation in the reports that it files or
submits under the Securities Exchange Act of 1934, as amended, is accumulated
and communicated to them in a manner that allows for timely decisions regarding
required disclosures and are effective in ensuring that such information is
recorded, processed, summarized and reported within the time periods specified
in the Securities and Exchange Commission’s rules and forms. There were no
changes during the Corporation’s last fiscal quarter that materially affected,
or are reasonably likely to materially affect, the Corporation’s internal control
over financial reporting.
PART II. OTHER
INFORMATION
Item 1. Legal
Proceedings
Following ExxonMobil
Oil Corporation’s (EMOC) self-reporting of an air emission event at the
ExxonMobil Beaumont Chemical Plant which exceeded provisions of the Texas
Administrative Code and Texas Health and Safety Code, the Texas Commission on
Environmental Quality (TCEQ), on September 17, 2015, notified EMOC that TCEQ
was seeking a penalty of $150,000 in connection with the incident.
As last reported in
the Corporation’s Form 10-Q for the first quarter of 2015, ExxonMobil Pipeline
Company (EMPCo), the United States and the State of Arkansas reached agreement
on a Consent Decree to resolve the enforcement action related to the discharge
of crude oil from the Pegasus Pipeline in Mayflower, Faulkner County, Arkansas.
Under the terms of the Consent Decree, EMPCo was to make several process
changes and to pay a $3.19 million civil penalty to the United States and $1.88
million to the State of Arkansas consisting of a $1 million civil penalty,
$600,000 towards a supplemental environmental project and $280,000 to reimburse
expenses of the Arkansas Attorney General’s Office. The United States District
Court for the Eastern District of Arkansas approved the Consent Decree on
August 12, 2015 and EMPCo has made all payments required by the Consent Decree,
with the exception of the Supplemental Environmental Project portion which
continues to be progressed as contemplated under the Consent Decree. In a
matter related to the same discharge of crude oil from the Pegasus Pipeline, on
October 1, 2015, the Pipeline and Hazardous Materials Safety Administration
issued a Final Order arising from a November 2013 Notice of Probable Violation
alleging that EMPCo violated multiple federal Pipeline Safety Regulations. The
Final Order imposed a penalty of $2,630,400 on EMPCo. EMPCo has filed a
Petition for Reconsideration of the Final Order. The Final Order and demanded
penalty are stayed.
As reported in the
Corporation’s Form 10-K for 2014 and Form 10-Q for the second quarter of 2012,
Chalmette Refining LLC (CRLLC), at the time the owner of the Chalmette Refinery
(then operated by EMOC), and the Louisiana Department of Environmental Quality,
were in discussions to resolve self-reported deviations from refinery
operations and relating to certain Clean Air Act Title V permit conditions,
limits and other requirements. On June 17, 2015, EMOC, Mobil Pipe Line Company,
and PDV Chalmette LLC, the three holders of ownership interests in CRLLC,
entered into an Agreement with PBF Holding Company LLC (PBF) to sell their
ownership interests to PBF. The agreement provides that, at change in control,
which occurred on November 1, 2015, PBF would assume the environmental
liabilities of CRLLC, including any potential fines, penalties, or enforcement
action relating to historical Title V deviations arising from the operation of
the refinery.
Refer to the relevant
portions of Note 3 of this Quarterly Report on Form 10-Q for further
information on legal proceedings.
Item 2. Unregistered
Sales of Equity Securities and Use of Proceeds
|
|
|
|
|
|
|
|
|
|
|
|
|
Issuer Purchase of
Equity Securities for Quarter Ended September 30, 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
Number of
|
|
Maximum
Number
|
|
|
|
|
|
|
|
|
Shares
Purchased
|
|
of
Shares that May
|
|
|
|
|
Total
Number
|
|
Average
|
|
as
Part of Publicly
|
|
Yet
Be Purchased
|
|
|
|
|
of
Shares
|
|
Price
Paid
|
|
Announced
Plans
|
|
Under
the Plans or
|
Period
|
|
|
Purchased
|
|
per
Share
|
|
or
Programs
|
|
Programs
|
|
|
|
|
|
|
|
|
|
|
|
July 2015
|
|
2,137,699
|
|
$81.99
|
|
2,137,699
|
|
|
August 2015
|
|
2,198,427
|
|
$75.84
|
|
2,198,427
|
|
|
September 2015
|
|
2,176,981
|
|
$73.02
|
|
2,176,981
|
|
|
|
Total
|
|
|
6,513,107
|
|
$76.91
|
|
6,513,107
|
|
(See Note 1)
|
Note 1 - On August 1,
2000, the Corporation announced its intention to resume purchases of shares of
its common stock for the treasury both to offset shares issued in conjunction
with company benefit plans and programs and to gradually reduce the number of
shares outstanding. The announcement did not specify an amount or expiration date.
The Corporation has continued to purchase shares since this announcement and to
report purchased volumes in its quarterly earnings releases. In its most recent
earnings release dated October 30, 2015, the Corporation stated that fourth
quarter 2015 share purchases to reduce shares outstanding are anticipated to
equal $500 million. Purchases may be made in both the open market and through
negotiated transactions, and purchases may be increased, decreased or
discontinued at any time without prior notice.
Item
6. Exhibits
Exhibit
|
|
Description
|
|
|
|
31.1
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Chief Executive Officer.
|
31.2
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Principal Financial Officer.
|
31.3
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.
|
32.1
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Chief Executive Officer.
|
32.2
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Principal Financial Officer.
|
32.3
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Principal Accounting Officer.
|
101
|
|
Interactive Data Files.
|
EXXON
MOBIL CORPORATION
SIGNATURE
Pursuant
to the requirements of the Securities Exchange Act of 1934, the Registrant has
duly caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.
|
EXXON
MOBIL CORPORATION
|
Date:
November 4, 2015
|
By:
|
/s/ DAVID S. ROSENTHAL
|
|
|
David S. Rosenthal
|
|
|
Vice President, Controller and
|
|
|
Principal Accounting Officer
|
|
|
|
INDEX TO EXHIBITS
Exhibit
|
|
Description
|
|
|
|
31.1
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Chief Executive Officer.
|
31.2
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Principal Financial Officer.
|
31.3
|
|
Certification (pursuant to Securities
Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.
|
32.1
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Chief Executive Officer.
|
32.2
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Principal Financial Officer.
|
32.3
|
|
Section 1350 Certification (pursuant to
Sarbanes-Oxley Section 906) by Principal Accounting Officer.
|
101
|
|
Interactive Data Files.
|
EXHIBIT 31.1
Certification by Rex W. Tillerson
Pursuant to Securities Exchange Act Rule
13a-14(a)
I,
Rex W. Tillerson, certify that:
1. I have reviewed
this quarterly report on Form 10-Q of Exxon Mobil Corporation;
2. Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
4. The registrant’s
other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
(a) Designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b)
Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
(d) Disclosed in
this report any change in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal quarter (the
registrant's fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's
other certifying officers and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or
persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report
financial information; and
(b) Any fraud,
whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.
Date: November 4,
2015
|
/s/ REX W. TILLERSON
|
|
Rex
W. Tillerson
|
|
Chief
Executive Officer
|
EXHIBIT 31.2
Certification by Andrew P. Swiger
Pursuant to Securities Exchange Act Rule
13a-14(a)
I,
Andrew P. Swiger, certify that:
1. I have reviewed
this quarterly report on Form 10-Q of Exxon Mobil Corporation;
2. Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
4. The registrant’s
other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
(a) Designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b)
Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
(d) Disclosed in
this report any change in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal quarter (the
registrant's fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's
other certifying officers and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or
persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report
financial information; and
(b) Any fraud,
whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.
Date: November
4, 2015
|
/s/
ANDREW P. SWIGER
|
|
Andrew P. Swiger
|
|
Senior Vice President
|
|
(Principal Financial Officer)
|
EXHIBIT 31.3
Certification by David S. Rosenthal
Pursuant to Securities Exchange Act Rule
13a-14(a)
I,
David S. Rosenthal, certify that:
1. I have reviewed
this quarterly report on Form 10-Q of Exxon Mobil Corporation;
2. Based on my
knowledge, this report does not contain any untrue statement of a material fact
or omit to state a material fact necessary to make the statements made, in
light of the circumstances under which such statements were made, not
misleading with respect to the period covered by this report;
3. Based on my
knowledge, the financial statements, and other financial information included
in this report, fairly present in all material respects the financial
condition, results of operations and cash flows of the registrant as of, and
for, the periods presented in this report;
4. The registrant’s
other certifying officers and I are responsible for establishing and
maintaining disclosure controls and procedures (as defined in Exchange Act
Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting
(as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant
and have:
(a) Designed such
disclosure controls and procedures, or caused such disclosure controls and
procedures to be designed under our supervision, to ensure that material
information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities, particularly
during the period in which this report is being prepared;
(b)
Designed
such internal control over financial reporting, or caused such internal control
over financial reporting to be designed under our supervision, to provide
reasonable assurance regarding the reliability of financial reporting and the
preparation of financial statements for external purposes in accordance with
generally accepted accounting principles;
(c) Evaluated the
effectiveness of the registrant's disclosure controls and procedures and
presented in this report our conclusions about the effectiveness of the
disclosure controls and procedures, as of the end of the period covered by this
report based on such evaluation; and
(d) Disclosed in
this report any change in the registrant's internal control over financial
reporting that occurred during the registrant's most recent fiscal quarter (the
registrant's fourth fiscal quarter in the case of an annual report) that has
materially affected, or is reasonably likely to materially affect, the
registrant's internal control over financial reporting; and
5. The registrant's
other certifying officers and I have disclosed, based on our most recent
evaluation of internal control over financial reporting, to the registrant's
auditors and the audit committee of the registrant's board of directors (or
persons performing the equivalent functions):
(a) All significant
deficiencies and material weaknesses in the design or operation of internal
control over financial reporting which are reasonably likely to adversely
affect the registrant's ability to record, process, summarize and report
financial information; and
(b) Any fraud,
whether or not material, that involves management or other employees who have a
significant role in the registrant's internal control over financial reporting.
Date: November 4,
2015
|
/s/
DAVID S. ROSENTHAL
|
|
David S. Rosenthal
|
|
Vice President and Controller
|
|
(Principal Accounting Officer)
|
EXHIBIT 32.1
Certification of Periodic
Financial Report
Pursuant to 18 U.S.C.
Section 1350
For purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Rex
W. Tillerson, the chief executive officer of Exxon Mobil Corporation (the
“Company”), hereby certifies that, to his knowledge:
(i)
the Quarterly Report on Form 10-Q of the Company for the quarter
ended September 30, 2015, as filed with the Securities and Exchange Commission
on the date hereof (the “Report”) fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(ii) the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
Date: November
4, 2015
|
/s/
REX W. TILLERSON
|
|
Rex W. Tillerson
|
|
Chief Executive Officer
|
A signed original of this written statement required by Section
906 has been provided to Exxon Mobil Corporation and will be retained by Exxon
Mobil Corporation and furnished to the Securities and Exchange Commission or
its staff upon request.
EXHIBIT 32.2
Certification of Periodic
Financial Report
Pursuant to 18 U.S.C.
Section 1350
For purposes of 18 U.S.C. Section 1350, as adopted
pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned,
Andrew P. Swiger, the principal financial officer of Exxon Mobil Corporation
(the “Company”), hereby certifies that, to his knowledge:
(i)
the Quarterly Report on Form 10-Q of the Company for the quarter
ended September 30, 2015, as filed with the Securities and Exchange Commission
on the date hereof (the “Report”) fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(ii) the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
Date: November 4,
2015
|
/s/ ANDREW P. SWIGER
|
|
Andrew P. Swiger
|
|
Senior Vice President
|
|
(Principal Financial Officer)
|
A signed original of this written statement required by Section
906 has been provided to Exxon Mobil Corporation and will be retained by Exxon
Mobil Corporation and furnished to the Securities and Exchange Commission or
its staff upon request.
EXHIBIT 32.3
Certification of Periodic
Financial Report
Pursuant to 18 U.S.C.
Section 1350
For purposes of 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley
Act of 2002, the undersigned, David S. Rosenthal, the principal accounting
officer of Exxon Mobil Corporation (the “Company”), hereby certifies that, to
his knowledge:
(i)
the Quarterly Report on Form 10-Q of the Company for the quarter
ended September 30, 2015, as filed with the Securities and Exchange Commission
on the date hereof (the “Report”) fully complies with the requirements of
section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
(ii) the
information contained in the Report fairly presents, in all material respects,
the financial condition and results of operations of the Company.
Date: November 4,
2015
|
/s/ DAVID S. ROSENTHAL
|
|
David S. Rosenthal
|
|
Vice President and Controller
|
|
(Principal Accounting Officer)
|
A signed original of this written statement required by Section
906 has been provided to Exxon Mobil Corporation and will be retained by Exxon
Mobil Corporation and furnished to the Securities and Exchange Commission or
its staff upon request.
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