- Structural earnings improvements contributed to strong
second-quarter earnings of $7.9 billion
- Achieved record quarterly production in the Permian and Guyana,
demonstrating excellent operational performance
- Highest second-quarter global refinery throughput in the last
15 years1
- Expanded leadership in carbon capture and storage by agreeing
to acquire Denbury and reaching 5 million metric tons per year of
CO2 offtake contracts with industrial customers2
Exxon Mobil Corporation (NYSE:XOM):
Results Summary
2Q23
1Q23
Change
vs
1Q23
2Q22
Change
vs
2Q22
Dollars in millions (except per share
data)
YTD 2023
YTD 2022
Change
vs YTD
2022
7,880
11,430
-3,550
17,850
-9,970
Earnings (U.S. GAAP)
19,310
23,330
-4,020
7,874
11,618
-3,744
17,551
-9,677
Earnings Excluding Identified Items
(non-GAAP)
19,492
26,384
-6,892
1.94
2.79
-0.85
4.21
-2.27
Earnings Per Common Share 3
4.73
5.49
-0.76
1.94
2.83
-0.89
4.14
-2.20
Earnings Excl. Identified Items Per Common
Share 3
4.77
6.21
-1.44
6,166
6,380
-214
4,609
+1,557
Capital and Exploration Expenditures
12,546
9,513
+3,033
Exxon Mobil Corporation today announced second-quarter 2023
earnings of $7.9 billion, or $1.94 per share assuming dilution.
Capital and exploration expenditures were $6.2 billion in the
second quarter and $12.5 billion for the first half of 2023, in
line with the company's full-year guidance of $23 billion to $25
billion.
“The work we've been doing to improve our underlying
profitability is reflected in our second-quarter results, which
doubled from what we earned in a comparable industry commodity
price environment4 just five years ago,” said Darren Woods,
chairman and chief executive officer.
“Earnings totaled more than $19 billion during the first half of
the year, and we are on track to structurally reduce costs by $9
billion at year end compared to 2019. Production is up 20%
year-over-year in Guyana and the Permian, and we are playing a
leading role in the industry's energy transition with an agreement
to acquire Denbury and with three world-scale CO2 offtake
agreements. This reflects the significant opportunity to profitably
grow our Low Carbon Solutions business by creating a compelling
customer decarbonization proposition with the potential to reduce
Gulf Coast industrial emissions by 100 million metric tons per
year5.”
1
Highest second-quarter global refinery
throughput in the last 15 years (2009-2023) based on current
refinery circuit.
2
Based on contracts to move 5 MTA starting
in 2025 subject to additional investment by ExxonMobil and
permitting for carbon capture and storage projects.
3
Assuming dilution.
4
Based on ExxonMobil's assessment of
historical industry commodity prices and margins referencing
Intercontinental Exchange (ICE), S&P Global Platts, IHS Markit
as well as company estimates and analysis, the second-quarter 2023
industry commodity price environment is comparable to the
second-quarter of 2018. General industry commodity price
environment comparisons may not be a complete match for individual
segments.
5
Subject to additional investment by
ExxonMobil and permitting for carbon capture and storage
projects.
Second-Quarter 2023 Financial Highlights
- Earnings were $7.9 billion compared with first-quarter earnings
of $11.4 billion. Excluding the identified item associated with
additional European taxes on the energy sector, earnings were $7.9
billion compared with $11.6 billion in the prior quarter.
- Lower natural gas realizations and industry refining margins
adversely impacted earnings. Results benefited from the absence of
prior quarter unfavorable derivative mark-to-market impacts.
- The company remains on track to deliver $9 billion of
structural cost savings by the end of 2023 relative to 2019, having
achieved cumulative structural cost savings of $8.3 billion to
date.
- Cash flow from operations totaled $9.4 billion and free cash
flow was $5.0 billion, which includes a net working capital impact
of $3.6 billion primarily driven by higher seasonal cash tax
payments. Cash flow from operations excluding working capital was
$13.0 billion. The company's debt-to-capital ratio remained at 17%
and net-debt-to-capital ratio was 5%, reflecting a period-end cash
balance of $29.6 billion.
- The three new central organizations formed this past quarter,
Global Business Solutions, ExxonMobil Supply Chain, and Global
Trading, are off to a good start, further leveraging the company's
scale and integrated business model to lower cost and improve
performance.
Shareholder Distributions
- Second-quarter shareholder distributions of $8.0 billion
included $4.3 billion of share repurchases and $3.7 billion of
dividends.
- The Corporation declared a third-quarter dividend of $0.91 per
share, payable on Sept. 11, 2023, to shareholders of record of
Common Stock at the close of business on Aug. 16, 2023.
ADVANCING CLIMATE SOLUTIONS
Carbon Capture and Storage1
- Already a global leader in carbon capture and storage (CCS),
ExxonMobil expanded its position further by entering into a
definitive agreement to acquire Denbury Inc. The planned
acquisition provides ExxonMobil with one of the largest owned and
operated carbon dioxide (CO2) pipeline networks in the United
States at 1,300 miles, most of which is located along the U.S. Gulf
Coast, one of the largest U.S. markets for CO2 emissions. The
planned acquisition includes 10 strategically located onshore
sequestration sites as well as Denbury's 20-plus years of expertise
in transporting and storing CO2. An established, cost-efficient
transportation and storage system accelerates CCS deployment for
ExxonMobil and third-party customers and underpins multiple
low-carbon value chains including CCS, hydrogen, ammonia, biofuels,
and direct air capture.
- ExxonMobil and Nucor Corporation, one of North America’s
largest steel producers, have entered into a long-term commercial
agreement in which ExxonMobil, subject to government permitting,
will capture, transport, and store up to 800,000 metric tons of CO2
per year from Nucor’s steel manufacturing site in Convent,
Louisiana. The project, expected to start up in 2026, will tie into
the same CO2 infrastructure that will be used by the company’s
project with CF Industries. The agreement with Nucor is the third
CCS agreement announced in the past twelve months and brings the
total contracted CO2 to transport and store for third-party
customers to 5 million metric tons per year. That is equivalent to
replacing approximately 2 million gasoline-powered cars with
electric vehicles2, which is roughly equal to the number of
electric vehicles on U.S. roads today.
1
The emission reduction outcome of these
projects is subject to the timing and regulatory approval of
necessary permits, acquisition of rights of way, changes in
regulatory policy, supply chain disruptions, and other market
conditions.
2
ExxonMobil analysis based on assumptions
for U.S. in 2022, including average distance traveled, fuel
efficiency, average power grid carbon intensity, electric vehicle
charging efficiency and other factors. Gas-powered cars include
light-duty vehicles (cars, light trucks and SUVs).
.
EARNINGS AND VOLUME SUMMARY BY
SEGMENT
Upstream
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
Earnings/(Loss) (U.S. GAAP)
920
1,632
3,749
United States
2,552
6,125
3,657
4,825
7,622
Non-U.S.
8,482
9,734
4,577
6,457
11,371
Worldwide
11,034
15,859
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
920
1,632
3,450
United States
2,552
5,826
3,669
4,983
7,622
Non-U.S.
8,652
12,989
4,589
6,615
11,072
Worldwide
11,204
18,815
3,608
3,831
3,732
Production (koebd)
3,719
3,704
- Upstream second-quarter earnings were $4.6 billion, a decrease
of $1.9 billion from the first quarter. The main factors were lower
natural gas prices, which declined 40%, and seasonally higher
scheduled maintenance. Identified items unfavorably impacted
earnings by $12 million this quarter, down from $158 million in the
previous quarter. Earnings excluding identified items decreased
from $6.6 billion in the first quarter to $4.6 billion in the
second quarter.
- Compared to the same quarter last year, earnings decreased $6.8
billion. Excluding identified items, earnings declined $6.5
billion, driven by lower crude and natural gas realizations.
Production in Guyana and the Permian grew by a combined 20%
compared to the prior-year quarter. The increase was offset by
impacts from divestments, the Sakhalin-1 expropriation, and
government-mandated curtailments.
- Year-to-date earnings were $11.0 billion, a decrease of $4.8
billion versus the first half of 2022. The prior-year period was
negatively impacted by an identified item associated with the
Sakhalin-1 expropriation. Excluding identified items, earnings
declined $7.6 billion year-over-year. Higher production from
advantaged projects in Guyana and the Permian provided a partial
offset to lower crude and natural gas realizations. Year-to-date
production was 3.7 million oil-equivalent barrels per day.
Excluding divestments, entitlements, government mandates, and the
Sakhalin-1 expropriation, net production grew by more than 160,000
oil-equivalent barrels per day driven by Guyana and the
Permian.
Energy Products
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
Earnings/(Loss) (U.S. GAAP)
1,528
1,910
2,655
United States
3,438
3,144
782
2,273
2,617
Non-U.S.
3,055
1,933
2,310
4,183
5,273
Worldwide
6,493
5,077
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
1,528
1,910
2,655
United States
3,438
3,144
764
2,303
2,617
Non-U.S.
3,067
1,933
2,292
4,213
5,273
Worldwide
6,505
5,077
5,658
5,277
5,310
Energy Products Sales (kbd)
5,469
5,211
- Energy Products second-quarter earnings totaled $2.3 billion,
down $1.9 billion from the first quarter. Industry margins declined
sequentially from a strong first quarter on weaker diesel margins
as Russian supply concerns eased. Lower margins were partially
offset by higher volumes from the first full quarter of the
Beaumont refinery expansion, lower scheduled maintenance, and
continued strong reliability.
- Compared to the same quarter last year, earnings decreased $3.0
billion from lower industry refining margins, partly offset by
increased marketing and trading contributions.
- Year-to-date earnings were $6.5 billion, an increase of $1.4
billion versus the first half of 2022. Margins improved as higher
marketing and trading contributions more than offset declining
industry refining margins. In addition, the impact from higher
volumes, mainly from the start-up of the Beaumont refinery
expansion and improved reliability, was partly offset by higher
planned maintenance expense.
Chemical Products
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
Earnings/(Loss) (U.S. GAAP)
486
324
625
United States
810
1,395
342
47
450
Non-U.S.
389
1,086
828
371
1,076
Worldwide
1,199
2,481
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
486
324
625
United States
810
1,395
342
47
450
Non-U.S.
389
1,086
828
371
1,076
Worldwide
1,199
2,481
4,849
4,649
4,811
Chemical Products Sales (kt)
9,498
9,829
- Chemical Products second-quarter earnings were $828 million, up
from $371 million in the first quarter, mainly on improved margins
from lower feed costs. Earnings also benefited from lower planned
maintenance expense and increased sales volumes.
- Compared to the same quarter last year, earnings decreased $248
million on weaker industry margins and unfavorable volume/mix
effects.
- Year-to-date earnings were $1.2 billion, a decrease of $1.3
billion versus the first half of 2022, driven by weaker industry
margins, lower sales volumes reflecting softer market fundamentals
in the first quarter, and higher planned maintenance.
- The Baytown chemical expansion project, which will add 750 kta
of performance chemicals production, achieved mechanical completion
in the second quarter, with a phased start-up expected in the third
quarter this year.
Specialty Products
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
Earnings/(Loss) (U.S. GAAP)
373
451
232
United States
824
478
298
323
185
Non-U.S.
621
415
671
774
417
Worldwide
1,445
893
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
373
451
232
United States
824
478
298
323
185
Non-U.S.
621
415
671
774
417
Worldwide
1,445
893
1,905
1,940
2,100
Specialty Products Sales (kt)
3,845
4,107
- Specialty Products earnings were $671 million, down $103
million from the first quarter. Lower basestock margins and higher
scheduled maintenance expense were partly offset by favorable tax
items.
- Compared to the same quarter last year, earnings increased by
$254 million. Stronger finished lubes and basestock margins were
partially offset by lower sales volumes.
- Year-to-date earnings were $1.4 billion, an increase of $552
million versus the first half of 2022. Both basestock and finished
lubes margins improved from lower feed costs, partially offset by
lower sales volumes.
- During the second quarter, ExxonMobil announced it is planning
to build a lubricants manufacturing plant in Raigad, India. The new
plant is expected to produce 159,000 kiloliters of finished
lubricants per year to help meet demand growth in India, with
start-up expected by year-end 2025.
Corporate and Financing
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
(506)
(355)
(286)
Earnings/(Loss) (U.S. GAAP)
(861)
(980)
(506)
(355)
(286)
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
(861)
(882)
- Corporate and Financing reported net charges of $506 million.
This was an increase of $151 million versus the first quarter
driven by unfavorable foreign exchange impacts and tax items.
- Compared to the same quarter last year, net charges increased
$220 million. Unfavorable tax items and foreign exchange impacts
were partly offset by lower financing costs.
- Year-to-date charges were $861 million, a decrease of $119
million compared to the first half of 2022. Excluding the
identified item associated with the Sakhalin-1 expropriation, net
charges decreased $21 million.
.
CASH FLOW FROM OPERATIONS AND ASSET
SALES EXCLUDING WORKING CAPITAL
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
8,153
11,843
18,574
Net income/(loss) including noncontrolling
interests
19,996
24,324
4,242
4,244
4,451
Depreciation and depletion (includes
impairments)
8,486
13,334
(3,583)
(302)
(2,747)
Changes in operational working capital,
excluding cash and debt
(3,885)
(1,661)
571
556
(315)
Other
1,127
(1,246)
9,383
16,341
19,963
Cash Flow from Operating Activities
(U.S. GAAP)
25,724
34,751
1,287
854
939
Proceeds from asset sales and returns of
investments
2,141
1,232
10,670
17,195
20,902
Cash Flow from Operations and Asset
Sales (non-GAAP)
27,865
35,983
3,583
302
2,747
Exclude changes in operational working
capital, excluding cash and debt
3,885
1,661
14,253
17,497
23,649
Cash Flow from Operations and Asset
Sales excluding Working Capital
(non-GAAP)
31,750
37,644
(1,287)
(854)
(939)
Exclude proceeds from asset sales and
returns of investments
(2,141)
(1,232)
12,966
16,643
22,710
Cash Flow from Operations excluding
Working Capital (non-GAAP)
29,609
36,412
FREE CASH FLOW
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
9,383
16,341
19,963
Cash Flow from Operating Activities
(U.S. GAAP)
25,724
34,751
(5,359)
(5,412)
(3,837)
Additions to property, plant and
equipment
(10,771)
(7,748)
(389)
(445)
(226)
Additional investments and advances
(834)
(643)
105
78
60
Other investing activities including
collection of advances
183
150
1,287
854
939
Proceeds from asset sales and returns of
investments
2,141
1,232
5,027
11,416
16,899
Free Cash Flow (non-GAAP)
16,443
27,742
CALCULATION OF STRUCTURAL COST
SAVINGS
Dollars in billions (unless otherwise
noted)
Twelve Months
Ended December 31,
Six Months
Ended June 30,
2019
2022
2022
2023
Components of Operating Costs
From ExxonMobil’s Consolidated
Statement of Income
(U.S. GAAP)
Production and manufacturing expenses
36.8
42.6
20.9
18.3
Selling, general and administrative
expenses
11.4
10.1
4.9
4.8
Depreciation and depletion (includes
impairments)
19.0
24.0
13.3
8.5
Exploration expenses, including dry
holes
1.3
1.0
0.5
0.3
Non-service pension and postretirement
benefit expense
1.2
0.5
0.2
0.3
Subtotal
69.7
78.2
39.9
32.2
ExxonMobil’s share of equity company
expenses (non-GAAP)
9.1
13.0
5.8
5.0
Total Adjusted Operating Costs
(non-GAAP)
78.8
91.2
45.7
37.2
Total Adjusted Operating Costs
(non-GAAP)
78.8
91.2
45.7
37.2
Less:
Depreciation and depletion (includes
impairments)
19.0
24.0
13.3
8.5
Non-service pension and postretirement
benefit expense
1.2
0.5
0.2
0.3
Other adjustments (includes equity company
depreciation
and depletion)
3.6
3.5
1.8
1.5
Total Cash Operating Expenses (Cash
Opex) (non-GAAP)
55.0
63.2
30.4
26.9
Energy and production taxes (non-GAAP)
11.0
23.8
11.0
7.5
Total Cash Operating Expenses (Cash
Opex) excluding Energy and Production Taxes (non-GAAP)
44.0
39.4
19.4
19.4
Change
vs
2019
Change
vs
2022
Estimated Cumulative vs
2019
Total Cash Operating Expenses (Cash
Opex) excluding Energy and Production Taxes (non-GAAP)
-4.6
0.0
Market
+2.7
+0.4
Activity/Other
+0.1
+0.5
Structural Savings
-7.4
-0.9
-8.3
This press release also references structural cost savings.
Structural cost savings describe decreases in cash opex excluding
energy and production taxes as a result of operational
efficiencies, workforce reductions, and other cost-saving measures
that are expected to be sustainable compared to 2019 levels.
Relative to 2019, estimated cumulative structural cost savings
totaled $8.3 billion, which included an additional $0.9 billion in
the first six months of 2023. The total change between periods in
expenses above will reflect both structural cost savings and other
changes in spend, including market factors, such as inflation and
foreign exchange impacts, as well as changes in activity levels and
costs associated with new operations. Estimates of cumulative
annual structural savings may be revised depending on whether cost
reductions realized in prior periods are determined to be
sustainable compared to 2019 levels. For example, in 2Q23 we
recognized an additional $0.5 billion of prior period reductions
that we now view as structurally sustainable. Structural cost
savings are stewarded internally to support management's oversight
of spending over time. This measure is useful for investors to
understand the Corporation's efforts to optimize spending through
disciplined expense management.
ExxonMobil will discuss financial and operating results and
other matters during a webcast at 7:30 a.m. Central Time on July
28, 2023. To listen to the event or access an archived replay,
please visit www.exxonmobil.com.
Important Information about the Transaction and Where to Find
It
In connection with the proposed transaction between Exxon Mobil
Corporation (“ExxonMobil”) and Denbury Inc. (“Denbury”), ExxonMobil
and Denbury will file relevant materials with the Securities and
Exchange Commission (the “SEC”), including a registration statement
on Form S-4 filed by ExxonMobil that will include a proxy statement
of Denbury that also constitutes a prospectus of ExxonMobil. A
definitive proxy statement/prospectus will be mailed to
stockholders of Denbury. This communication is not a substitute for
the registration statement, proxy statement or prospectus or any
other document that ExxonMobil or Denbury (as applicable) may file
with the SEC in connection with the proposed transaction. BEFORE
MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY
HOLDERS OF EXXONMOBIL AND DENBURY ARE URGED TO READ THE
REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY
OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE
SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS,
CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE
THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE
PROPOSED TRANSACTION AND RELATED MATTERS. Investors and security
holders may obtain free copies of the registration statement and
the proxy statement/prospectus (when they become available), as
well as other filings containing important information about
ExxonMobil or Denbury, without charge at the SEC’s Internet website
(http://www.sec.gov). Copies of the documents filed with the SEC by
ExxonMobil will be available free of charge on ExxonMobil’s
internet website at www.exxonmobil.com under the tab “investors”
and then under the tab “SEC Filings” or by contacting ExxonMobil’s
Investor Relations Department at investor.relations@exxonmobil.com.
Copies of the documents filed with the SEC by Denbury will be
available free of charge on Denbury’s internet website at
https://investors.denbury.com/investors/financial-information/sec-filings/
or by directing a request to Denbury Inc., ATTN: Investor
Relations, 5851 Legacy Circle, Suite 1200, Plano, TX 75024, Tel.
No. (972) 673-2000. The information included on, or accessible
through, ExxonMobil’s or Denbury’s website is not incorporated by
reference into this communication.
Participants in the Solicitation
ExxonMobil, Denbury, their respective directors and certain of
their respective executive officers may be deemed to be
participants in the solicitation of proxies in respect of the
proposed transaction. Information about the directors and executive
officers of Denbury is set forth in its proxy statement for its
2023 annual meeting of stockholders, which was filed with the SEC
on April 18, 2023, and in its Form 10-K for the year ended December
31, 2022, which was filed with the SEC on February 23, 2023.
Information about the directors and executive officers of
ExxonMobil is set forth in its proxy statement for its 2023 annual
meeting of stockholders, which was filed with the SEC on April 13,
2023, and in its Form 10-K for the year ended December 31, 2022,
which was filed with the SEC on February 22, 2023. Additional
information regarding the participants in the proxy solicitations
and a description of their direct or indirect interests, by
security holdings or otherwise, will be contained in the proxy
statement/prospectus and other relevant materials filed with the
SEC when they become available.
No Offer or Solicitation
This communication is for informational purposes and is not
intended to, and shall not, constitute an offer to sell or the
solicitation of an offer to buy any securities or a solicitation of
any vote or approval, nor shall there be any offer, solicitation or
sale of securities in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
No offering of securities shall be made except by means of a
prospectus meeting the requirements of Section 10 of the U.S.
Securities Act of 1933, as amended.
Cautionary Statement
Statements related to outlooks; projections; descriptions of
strategic, operating, and financial plans and objectives;
statements of future ambitions and plans; and other statements of
future events or conditions in this release, are forward-looking
statements. Similarly, discussion of future carbon capture,
transportation and storage, as well as biofuel, hydrogen and other
plans to reduce emissions are dependent on future market factors,
such as continued technological progress, policy support and timely
rule-making and permitting, and represent forward-looking
statements. Actual future results, including financial and
operating performance; total capital expenditures and mix,
including allocations of capital to low carbon solutions;
structural earnings improvement and structural cost reductions and
efficiency gains, including the ability to offset inflationary
pressure; plans to reduce future emissions and emissions intensity;
ambitions to reach Scope 1 and Scope 2 net zero from operated
assets by 2050, plans to reach net zero Scope 1 and 2 emissions in
Upstream Permian Basin unconventional operated assets by 2030,
eliminating routine flaring in-line with World Bank Zero Routine
Flaring, reaching near-zero methane emissions from its operations,
meeting ExxonMobil’s emission reduction goals and plans, divestment
and start-up plans, and associated project plans as well as
technology efforts; timing and outcome of projects related to the
capture, transportation and storage of CO2, and produced biofuels,
including completion of the Denbury acquisition; changes in law,
taxes, or regulation including environmental and tax regulations,
trade sanctions, and timely granting of governmental permits and
certifications; timing and outcome of hydrogen projects; cash flow,
dividends and shareholder returns, including the timing and amounts
of share repurchases; future debt levels and credit ratings;
business and project plans, timing, costs, capacities and returns;
and resource recoveries and production rates, could differ
materially due to a number of factors. These include global or
regional changes in the supply and demand for oil, natural gas,
petrochemicals, and feedstocks and other market factors, economic
conditions and seasonal fluctuations that impact prices and
differentials for our products; government policies supporting
lower carbon investment opportunities such as the U.S. Inflation
Reduction Act or policies limiting the attractiveness of future
investment such as the additional European taxes on the energy
sector; variable impacts of trading activities on our margins and
results each quarter; actions of competitors and commercial
counterparties; the outcome of commercial negotiations, including
final agreed terms and conditions; the ability to access debt
markets; the ultimate impacts of COVID-19 or other public health
crises, including the effects of government responses on people and
economies; reservoir performance, including variability and timing
factors applicable to unconventional resources; the level and
outcome of exploration projects and decisions to invest in future
reserves; timely completion of development and other construction
projects; final management approval of future projects and any
changes in the scope, terms, or costs of such projects as approved;
government policies and support and market demand for low carbon
technologies; war, civil unrest, attacks against the company or
industry and other political or security disturbances;
expropriations, seizure, or capacity, insurance or shipping
limitations by foreign governments or laws; opportunities for
potential acquisitions, investments or divestments and satisfaction
of applicable conditions to closing, including timely regulatory
approvals; the capture of efficiencies within and between business
lines and the ability to maintain near-term cost reductions as
ongoing efficiencies; unforeseen technical or operating
difficulties and unplanned maintenance; the development and
competitiveness of alternative energy and emission reduction
technologies; the results of research programs and the ability to
bring new technologies to commercial scale on a cost-competitive
basis; and other factors discussed under Item 1A. Risk Factors of
ExxonMobil’s 2022 Form 10-K.
Forward-looking and other statements regarding our
environmental, social and other sustainability efforts and
aspirations are not an indication that these statements are
necessarily material to investors or requiring disclosure in our
filing with the SEC. In addition, historical, current, and
forward-looking environmental, social and sustainability-related
statements may be based on standards for measuring progress that
are still developing, internal controls and processes that continue
to evolve, and assumptions that are subject to change in the
future, including future rule-making.
Frequently Used Terms and Non-GAAP Measures
This press release includes cash flow from operations and asset
sales (non-GAAP). Because of the regular nature of our asset
management and divestment program, the company believes it is
useful for investors to consider proceeds associated with the sales
of subsidiaries, property, plant and equipment, and sales and
returns of investments together with cash provided by operating
activities when evaluating cash available for investment in the
business and financing activities. A reconciliation to net cash
provided by operating activities for the 2022 and 2023 periods is
shown on page 7.
This press release also includes cash flow from operations
excluding working capital (non-GAAP), and cash flow from operations
and asset sales excluding working capital (non-GAAP). The company
believes it is useful for investors to consider these numbers in
comparing the underlying performance of the company's business
across periods when there are significant period-to-period
differences in the amount of changes in working capital. A
reconciliation to net cash provided by operating activities for the
2022 and 2023 periods is shown on page 7.
This press release also includes earnings/(loss) excluding
identified items (non-GAAP), which are earnings/(loss) excluding
individually significant non-operational events with, typically, an
absolute corporate total earnings impact of at least $250 million
in a given quarter. The earnings/(loss) impact of an identified
item for an individual segment may be less than $250 million when
the item impacts several periods or several segments.
Earnings/(loss) excluding identified items does include
non-operational earnings events or impacts that are generally below
the $250 million threshold utilized for identified items. When the
effect of these events is significant in aggregate, it is indicated
in analysis of period results as part of quarterly earnings press
release and teleconference materials. Management uses these figures
to improve comparability of the underlying business across multiple
periods by isolating and removing significant non-operational
events from business results. The Corporation believes this view
provides investors increased transparency into business results and
trends and provides investors with a view of the business as seen
through the eyes of management. Earnings excluding identified items
is not meant to be viewed in isolation or as a substitute for net
income/(loss) attributable to ExxonMobil as prepared in accordance
with U.S. GAAP. A reconciliation to earnings is shown for 2023 and
2022 periods in Attachments II-a and II-b. Corresponding per share
amounts are shown on page 1 and in Attachment II-a, including a
reconciliation to earnings/(loss) per common share – assuming
dilution (U.S. GAAP).
This press release also includes total taxes including
sales-based taxes. This is a broader indicator of the total tax
burden on the Corporation’s products and earnings, including
certain sales and value-added taxes imposed on and concurrent with
revenue-producing transactions with customers and collected on
behalf of governmental authorities (“sales-based taxes”). It
combines “Income taxes” and “Total other taxes and duties” with
sales-based taxes, which are reported net in the income statement.
The company believes it is useful for the Corporation and its
investors to understand the total tax burden imposed on the
Corporation’s products and earnings. A reconciliation to total
taxes is shown in Attachment I-a.
This press release also references free cash flow (non-GAAP).
Free cash flow is the sum of net cash provided by operating
activities and net cash flow used in investing activities. This
measure is useful when evaluating cash available for financing
activities, including shareholder distributions, after investment
in the business. Free cash flow is not meant to be viewed in
isolation or as a substitute for net cash provided by operating
activities. A reconciliation to net cash provided by operating
activities for the 2022 and 2023 periods is shown on page 7.
References to resources or resource base may include quantities
of oil and natural gas classified as proved reserves, as well as
quantities that are not yet classified as proved reserves, but that
are expected to be ultimately recoverable. The term “resource base”
or similar terms are not intended to correspond to SEC definitions
such as “probable” or “possible” reserves. A reconciliation of
production excluding divestments, entitlements, and government
mandates to actual production is contained in the Supplement to
this release included as Exhibit 99.2 to the Form 8-K filed the
same day as this news release.
The term “project” as used in this news release can refer to a
variety of different activities and does not necessarily have the
same meaning as in any government payment transparency reports.
Projects or plans may not reflect investment decisions made by the
company. Individual opportunities may advance based on a number of
factors, including availability of supportive policy, technology
for cost-effective abatement, and alignment with our partners and
other stakeholders. The company may refer to these opportunities as
projects in external disclosures at various stages throughout their
progression.
Government mandates are changes to ExxonMobil’s sustainable
production levels as a result of production limits or sanctions
imposed by governments.
This press release also references structural cost savings, for
more details see page 8.
Reference to Earnings
References to corporate earnings mean net income attributable to
ExxonMobil (U.S. GAAP) from the consolidated income statement.
Unless otherwise indicated, references to earnings, Upstream,
Energy Products, Chemical Products, Specialty Products and
Corporate and Financing segment earnings, and earnings per share
are ExxonMobil’s share after excluding amounts attributable to
noncontrolling interests.
Exxon Mobil Corporation has numerous affiliates, many with names
that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For
convenience and simplicity, those terms and terms such as
Corporation, company, our, we, and its are sometimes used as
abbreviated references to specific affiliates or affiliate groups.
Similarly, ExxonMobil has business relationships with thousands of
customers, suppliers, governments, and others. For convenience and
simplicity, words such as venture, joint venture, partnership,
co-venturer, and partner are used to indicate business and other
relationships involving common activities and interests, and those
words may not indicate precise legal relationships. ExxonMobil's
ambitions, plans and goals do not guarantee any action or future
performance by its affiliates or Exxon Mobil Corporation's
responsibility for those affiliates' actions and future
performance, each affiliate of which manages its own affairs.
Throughout this press release, both Exhibit 99.1 as well as
Exhibit 99.2, due to rounding, numbers presented may not add up
precisely to the totals indicated.
.
ATTACHMENT I-a
CONDENSED CONSOLIDATED STATEMENT OF
INCOME
(Preliminary)
Dollars in millions (unless otherwise
noted)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Revenues and other income
Sales and other operating revenue
80,795
111,265
164,439
198,999
Income from equity affiliates
1,382
3,688
3,763
6,226
Other income
737
728
1,276
956
Total revenues and other income
82,914
115,681
169,478
206,181
Costs and other deductions
Crude oil and product purchases
47,598
65,613
93,601
118,001
Production and manufacturing expenses
8,860
10,686
18,296
20,927
Selling, general and administrative
expenses
2,449
2,530
4,839
4,939
Depreciation and depletion (includes
impairments)
4,242
4,451
8,486
13,334
Exploration expenses, including dry
holes
133
286
274
459
Non-service pension and postretirement
benefit expense
164
120
331
228
Interest expense
249
194
408
382
Other taxes and duties
7,563
6,868
14,784
14,422
Total costs and other
deductions
71,258
90,748
141,019
172,692
Income/(Loss) before income
taxes
11,656
24,933
28,459
33,489
Income tax expense/(benefit)
3,503
6,359
8,463
9,165
Net income/(loss) including
noncontrolling interests
8,153
18,574
19,996
24,324
Net income/(loss) attributable to
noncontrolling interests
273
724
686
994
Net income/(loss) attributable to
ExxonMobil
7,880
17,850
19,310
23,330
OTHER FINANCIAL DATA
Dollars in millions (unless otherwise
noted)
Three Months Ended June 30,
Six Months Ended June 30,
2023
2022
2023
2022
Earnings per common share (U.S.
dollars)
1.94
4.21
4.73
5.49
Earnings per common share - assuming
dilution (U.S. dollars)
1.94
4.21
4.73
5.49
Dividends on common stock
Total
3,701
3,727
7,439
7,487
Per common share (U.S. dollars)
0.91
0.88
1.82
1.76
Millions of common shares
outstanding
Average - assuming dilution
4,066
4,233
4,084
4,248
Taxes
Income taxes
3,503
6,359
8,463
9,165
Total other taxes and duties
8,328
7,779
16,423
16,228
Total taxes
11,831
14,138
24,886
25,393
Sales-based taxes
6,281
6,857
12,313
12,957
Total taxes including sales-based
taxes
18,112
20,995
37,199
38,350
ExxonMobil share of income taxes of equity
companies
498
2,133
1,733
3,180
.
ATTACHMENT I-b
CONDENSED CONSOLIDATED BALANCE
SHEET
(Preliminary)
Dollars in millions (unless otherwise
noted)
June
30, 2023
December
31, 2022
ASSETS
Current assets
Cash and cash equivalents
29,528
29,640
Cash and cash equivalents – restricted
29
25
Notes and accounts receivable – net
35,915
41,749
Inventories
Crude oil, products and merchandise
20,006
20,434
Materials and supplies
4,243
4,001
Other current assets
2,039
1,782
Total current assets
91,760
97,631
Investments, advances and long-term
receivables
47,273
49,793
Property, plant and equipment – net
206,736
204,692
Other assets, including intangibles –
net
17,479
16,951
Total Assets
363,248
369,067
LIABILITIES
Current liabilities
Notes and loans payable
3,929
634
Accounts payable and accrued
liabilities
54,404
63,197
Income taxes payable
3,482
5,214
Total current liabilities
61,815
69,045
Long-term debt
37,567
40,559
Postretirement benefits reserves
10,278
10,045
Deferred income tax liabilities
23,460
22,874
Long-term obligations to equity
companies
2,036
2,338
Other long-term obligations
21,095
21,733
Total Liabilities
156,251
166,594
EQUITY
Common stock without par value
(9,000 million shares authorized, 8,019
million shares issued)
16,029
15,752
Earnings reinvested
444,731
432,860
Accumulated other comprehensive income
(12,657)
(13,270)
Common stock held in treasury
(4,016 million shares at June 30, 2023,
and 3,937 million shares at December 31, 2022)
(249,057)
(240,293)
ExxonMobil share of equity
199,046
195,049
Noncontrolling interests
7,951
7,424
Total Equity
206,997
202,473
Total Liabilities and Equity
363,248
369,067
.
ATTACHMENT I-c
CONDENSED CONSOLIDATED STATEMENT OF
CASH FLOWS
(Preliminary)
Dollars in millions (unless otherwise
noted)
Six Months Ended
June 30,
2023
2022
CASH FLOWS FROM OPERATING
ACTIVITIES
Net income/(loss) including noncontrolling
interests
19,996
24,324
Depreciation and depletion (includes
impairments)
8,486
13,334
Changes in operational working capital,
excluding cash and debt
(3,885)
(1,661)
All other items – net
1,127
(1,246)
Net cash provided by operating
activities
25,724
34,751
CASH FLOWS FROM INVESTING
ACTIVITIES
Additions to property, plant and
equipment
(10,771)
(7,748)
Proceeds from asset sales and returns of
investments
2,141
1,232
Additional investments and advances
(834)
(643)
Other investing activities including
collection of advances
183
150
Net cash used in investing
activities
(9,281)
(7,009)
CASH FLOWS FROM FINANCING
ACTIVITIES
Additions to long-term debt
136
—
Reductions in long-term debt
(6)
—
Reductions in short-term debt
(172)
(2,336)
Additions/(Reductions) in debt with three
months or less maturity
(172)
1,303
Contingent consideration payments
(68)
(58)
Cash dividends to ExxonMobil
shareholders
(7,439)
(7,487)
Cash dividends to noncontrolling
interests
(293)
(123)
Changes in noncontrolling interests
11
(697)
Common stock acquired
(8,680)
(5,986)
Net cash provided by (used in)
financing activities
(16,683)
(15,384)
Effects of exchange rate changes on
cash
132
(299)
Increase/(Decrease) in cash and cash
equivalents
(108)
12,059
Cash and cash equivalents at beginning of
period
29,665
6,802
Cash and cash equivalents at end of
period
29,557
18,861
.
ATTACHMENT II-a
KEY FIGURES: IDENTIFIED ITEMS
2Q23
1Q23
2Q22
Dollars in Millions (unless otherwise
noted)
YTD 2023
YTD 2022
7,880
11,430
17,850
Earnings/(Loss) (U.S. GAAP)
19,310
23,330
Identified Items
—
—
—
Impairments
—
(2,975)
—
—
299
Gain/(Loss) on sale of assets
—
299
6
(188)
—
Tax-related items
(182)
—
—
—
—
Other
—
(378)
6
(188)
299
Total Identified Items
(182)
(3,054)
7,874
11,618
17,551
Earnings/(Loss) Excluding Identified
Items (non-GAAP)
19,492
26,384
2Q23
1Q23
2Q22
Dollars Per Common Share
YTD 2023
YTD 2022
1.94
2.79
4.21
Earnings/(Loss) Per Common Share ¹
(U.S. GAAP)
4.73
5.49
Identified Items Per Common Share
¹
—
—
—
Impairments
—
(0.70)
—
—
0.07
Gain/(Loss) on sale of assets
—
0.07
0.00
(0.04)
—
Tax-related items
(0.04)
—
—
—
—
Other
—
(0.09)
0.00
(0.04)
0.07
Total Identified Items Per Common Share
¹
(0.04)
(0.72)
1.94
2.83
4.14
Earnings/(Loss) Excl. Identified Items
Per Common Share ¹ (non-GAAP)
4.77
6.21
¹ Assuming dilution.
.
ATTACHMENT II-b
KEY FIGURES: IDENTIFIED ITEMS BY
SEGMENT
Second Quarter 2023
Upstream
Energy Products
Chemical Products
Specialty Products
Corporate &
Financing
Total
Dollars in millions (unless otherwise
noted)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Earnings/(Loss) (U.S. GAAP)
920
3,657
1,528
782
486
342
373
298
(506)
7,880
Identified Items
Tax-related items
—
(12)
—
18
—
—
—
—
—
6
Total Identified Items
—
(12)
—
18
—
—
—
—
—
6
Earnings/(Loss) Excl. Identified Items
(non-GAAP)
920
3,669
1,528
764
486
342
373
298
(506)
7,874
First Quarter 2023
Upstream
Energy Products
Chemical Products
Specialty Products
Corporate &
Financing
Total
Dollars in millions (unless otherwise
noted)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Earnings/(Loss) (U.S. GAAP)
1,632
4,825
1,910
2,273
324
47
451
323
(355)
11,430
Identified Items
Tax-related items
—
(158)
—
(30)
—
—
—
—
—
(188)
Total Identified Items
—
(158)
—
(30)
—
—
—
—
—
(188)
Earnings/(Loss) Excl. Identified Items
(non-GAAP)
1,632
4,983
1,910
2,303
324
47
451
323
(355)
11,618
Second Quarter 2022
Upstream
Energy Products
Chemical Products
Specialty Products
Corporate &
Financing
Total
Dollars in millions (unless otherwise
noted)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Earnings/(Loss) (U.S. GAAP)
3,749
7,622
2,655
2,617
625
450
232
185
(286)
17,850
Identified Items
Gain/(Loss) on sale of assets
299
—
—
—
—
—
—
—
—
299
Total Identified Items
299
—
—
—
—
—
—
—
—
299
Earnings/(Loss) Excl. Identified Items
(non-GAAP)
3,450
7,622
2,655
2,617
625
450
232
185
(286)
17,551
YTD 2023
Upstream
Energy Products
Chemical Products
Specialty Products
Corporate &
Financing
Total
Dollars in millions (unless otherwise
noted)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Earnings/(Loss) (U.S. GAAP)
2,552
8,482
3,438
3,055
810
389
824
621
(861)
19,310
Identified Items
Tax-related items
—
(170)
—
(12)
—
—
—
—
—
(182)
Total Identified Items
—
(170)
—
(12)
—
—
—
—
—
(182)
Earnings/(Loss) Excl. Identified Items
(non-GAAP)
2,552
8,652
3,438
3,067
810
389
824
621
(861)
19,492
YTD 2022
Upstream
Energy Products
Chemical Products
Specialty Products
Corporate &
Financing
Total
Dollars in millions (unless otherwise
noted)
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
U.S.
Non-U.S.
Earnings/(Loss) (U.S. GAAP)
6,125
9,734
3,144
1,933
1,395
1,086
478
415
(980)
23,330
Identified Items
Impairments
—
(2,877)
—
—
—
—
—
—
(98)
(2,975)
Gain/(Loss) on sale of assets
299
—
—
—
—
—
—
—
—
299
Other
—
(378)
—
—
—
—
—
—
—
(378)
Total Identified Items
299
(3,255)
—
—
—
—
—
—
(98)
(3,054)
Earnings/(Loss) Excl. Identified Items
(non-GAAP)
5,826
12,989
3,144
1,933
1,395
1,086
478
415
(882)
26,384
ATTACHMENT III
KEY FIGURES: UPSTREAM VOLUMES
2Q23
1Q23
2Q22
Net production of crude oil, natural gas
liquids, bitumen and synthetic oil, thousand barrels per day
(kbd)
YTD 2023
YTD 2022
785
820
777
United States
802
765
618
670
556
Canada/Other Americas
645
516
4
4
4
Europe
4
4
206
220
224
Africa
213
240
702
749
691
Asia
725
714
38
32
46
Australia/Oceania
35
43
2,353
2,495
2,298
Worldwide
2,424
2,282
2Q23
1Q23
2Q22
Net natural gas production available for
sale, million cubic feet per day (mcfd)
YTD 2023
YTD 2022
2,346
2,367
2,699
United States
2,357
2,738
97
94
180
Canada/Other Americas
94
180
375
548
825
Europe
461
798
86
134
67
Africa
110
63
3,350
3,597
3,320
Asia
3,473
3,330
1,275
1,276
1,515
Australia/Oceania
1,276
1,421
7,529
8,016
8,606
Worldwide
7,771
8,530
3,608
3,831
3,732
Oil-equivalent production (koebd)¹
3,719
3,704
1 Natural gas is converted to an
oil-equivalent basis at six million cubic feet per one thousand
barrels.
ATTACHMENT IV
KEY FIGURES: MANUFACTURING THROUGHPUT
AND SALES
2Q23
1Q23
2Q22
Refinery throughput, thousand barrels per
day (kbd)
YTD 2023
YTD 2022
1,944
1,643
1,686
United States
1,794
1,686
388
417
413
Canada
403
406
1,209
1,189
1,164
Europe
1,199
1,179
463
565
532
Asia Pacific
514
534
169
184
193
Other
176
180
4,173
3,998
3,988
Worldwide
4,086
3,985
2Q23
1Q23
2Q22
Energy Products sales, thousand barrels
per day (kbd)
YTD 2023
YTD 2022
2,743
2,459
2,452
United States
2,601
2,358
2,916
2,818
2,858
Non-U.S.
2,867
2,853
5,658
5,277
5,310
Worldwide
5,469
5,211
2,401
2,177
2,208
Gasolines, naphthas
2,290
2,161
1,842
1,770
1,755
Heating oils, kerosene, diesel
1,806
1,739
344
312
350
Aviation fuels
328
319
228
215
228
Heavy fuels
221
238
844
803
769
Other energy products
823
753
5,658
5,277
5,310
Worldwide
5,469
5,211
2Q23
1Q23
2Q22
Chemical Products sales, thousand metric
tons (kt)
YTD 2023
YTD 2022
1,725
1,561
1,998
United States
3,286
4,030
3,124
3,088
2,812
Non-U.S.
6,212
5,798
4,849
4,649
4,811
Worldwide
9,498
9,829
2Q23
1Q23
2Q22
Specialty Products sales, thousand metric
tons (kt)
YTD 2023
YTD 2022
514
476
590
United States
991
1,111
1,391
1,464
1,511
Non-U.S.
2,855
2,995
1,905
1,940
2,100
Worldwide
3,845
4,107
.
ATTACHMENT V
KEY FIGURES: CAPITAL AND EXPLORATION
EXPENDITURES
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
Upstream
2,206
2,108
1,644
United States
4,314
3,013
2,403
2,473
1,983
Non-U.S.
4,876
4,493
4,609
4,581
3,627
Total
9,190
7,506
Energy Products
349
358
300
United States
707
692
382
327
206
Non-U.S.
709
380
731
685
506
Total
1,416
1,072
Chemical Products
152
285
250
United States
437
481
507
546
169
Non-U.S.
1,053
374
659
831
419
Total
1,490
855
Specialty Products
14
11
14
United States
25
19
89
80
42
Non-U.S.
169
60
103
91
56
Total
194
79
Other
64
192
1
Other
256
1
6,166
6,380
4,609
Worldwide
12,546
9,513
CASH CAPITAL EXPENDITURES
2Q23
1Q23
2Q22
Dollars in millions (unless otherwise
noted)
YTD 2023
YTD 2022
5,359
5,412
3,837
Additions to property, plant and
equipment
10,771
7,748
284
367
166
Net investments and advances
651
493
5,643
5,779
4,003
Total Cash Capital Expenditures
11,422
8,241
.
ATTACHMENT VI
KEY FIGURES: YEAR-TO-DATE
EARNINGS/(LOSS)
Results Summary
2Q23
1Q23
Change
vs
1Q23
2Q22
Change
vs
2Q22
Dollars in millions (except per share
data)
YTD 2023
YTD 2022
Change
vs YTD
2022
7,880
11,430
-3,550
17,850
-9,970
Earnings (U.S. GAAP)
19,310
23,330
-4,020
7,874
11,618
-3,744
17,551
-9,677
Earnings Excluding Identified Items
(non-GAAP)
19,492
26,384
-6,892
1.94
2.79
-0.85
4.21
-2.27
Earnings Per Common Share ¹
4.73
5.49
-0.76
1.94
2.83
-0.89
4.14
-2.20
Earnings Excl. Identified Items Per Common
Share ¹
4.77
6.21
-1.44
6,166
6,380
-214
4,609
+1,557
Capital and Exploration Expenditures
12,546
9,513
+3,033
¹ Assuming dilution.
.
ATTACHMENT VII
KEY FIGURES: EARNINGS/(LOSS) BY
QUARTER
Dollars in millions (unless otherwise
noted)
2023
2022
2021
2020
2019
First Quarter
11,430
5,480
2,730
(610)
2,350
Second Quarter
7,880
17,850
4,690
(1,080)
3,130
Third Quarter
—
19,660
6,750
(680)
3,170
Fourth Quarter
—
12,750
8,870
(20,070)
5,690
Full Year
—
55,740
23,040
(22,440)
14,340
Dollars per common share ¹
2023
2022
2021
2020
2019
First Quarter
2.79
1.28
0.64
(0.14)
0.55
Second Quarter
1.94
4.21
1.10
(0.26)
0.73
Third Quarter
—
4.68
1.57
(0.15)
0.75
Fourth Quarter
—
3.09
2.08
(4.70)
1.33
Full Year
—
13.26
5.39
(5.25)
3.36
1 Computed using the average number of
shares outstanding during each period; assuming dilution.
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