ExxonMobil Earns $3.1 Billion in Second Quarter 2019

Source Press Release
Company ExxonMobil 
Tags Capital Spending, Chemicals Activities, Strategy - Chemicals, Refining & Marketing Activities, Strategy - Downstream, Production/Development, Exploration, Upstream Activities, Strategy - Upstream, Financial & Operating Data, Strategy - Corporate
Date August 02, 2019

Exxon Mobil Corporation today announced estimated second quarter 2019 earnings of $3.1 billion, or $0.73 per share assuming dilution, compared with $4 billion a year earlier. Earnings included a favorable identified item of about $500 million, or $0.12 per share assuming dilution, reflecting the impact of a tax rate change in Alberta, Canada. Capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.

  • Upstream liquids production grows by 8 percent from a year earlier, driven by the Permian Basin
  •  Guyana resource estimate increases to over 6 billion oil-equivalent barrels; Liza Phase 1 nears startup
  •  U.S. Gulf Coast steam cracker exceeds design capacity by 10 percent, less than a year after startup

  Second Quarter    First Quarter     First Half   
 

2019

 
2018  2019  %  

 2019

 
 2018  %  
  Earnings Summary (Dollars in millions, except per share data)                 
     Earnings (U.S. GAAP) 

3,130

 
3,950  -21  2,350  33 

 5,480

 
 8,600   -36 
       Earnings Per Common Share Assuming Dilution 

0.73

 
0.92  -21  0.55  33 

1.28

 
 2.01  -36 
Capital and Exploration Expenditures 

8,079

 
6,627  22  6,890  17 

14,969

 
 11,494   30 

Oil-equivalent production was 3.9 million barrels per day, up 7 percent from the second quarter of 2018. Liquids production increased 8 percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments. Natural gas volumes increased 5 percent, excluding entitlement effects and divestments.

“We continue to make significant progress toward delivering our long-term growth plans,” said Darren W. Woods, ExxonMobil chairman and chief executive officer. “Our new U.S. Gulf Coast steam cracker is exceeding design capacity by 10 percent, less than a year after startup. Our upstream liquids production increased by 8 percent from last year, driven by growth in the Permian Basin, and we are preparing to startup the Liza Phase 1 development in Guyana, where the estimated recoverable resource increased to more than 6 billion oil-equivalent barrels.”

Second Quarter 2019 Business Highlights

Upstream

  • Average crude prices were stronger than first quarter, while natural gas prices declined with supply length and crude-linked LNG lag effects.
  • Liquids volumes increased with unconventional growth and ramp-up at Hebron, partly offset by the impacts of higher planned maintenance. Natural gas volumes were down from the first quarter due to weaker seasonal gas demand in Europe.
  • Permian unconventional development continued with production up over 20 percent from the first quarter and up nearly 90 percent from the second quarter of last year.

Downstream

  • Industry fuels margins, while remaining under pressure during the second quarter, improved from very low levels in the first quarter on stronger gasoline margins, mainly in the U.S.  
  • Planned maintenance activity remained at a high level during the quarter, as the company successfully completed a significant turnaround at its Joliet, Illinois, refinery in the U.S. mid-continent region. Results were also impacted by unscheduled downtime at refineries in Baytown, Texas, Sarnia (Canada), and Yanbu (Saudi Arabia).

Chemical

  • Paraxylene margins weakened during the quarter with lengthening supply from recent industry capacity additions.
  • Results were impacted by a significant increase in turnaround activity during the second quarter. 
  • Production at the new ethane steam cracker in Baytown, Texas, successfully increased to exceed design capacity by 10 percent.

Strengthening the Portfolio

  • ExxonMobil increased its estimated gross recoverable resource for the Stabroek block in Guyana from 5.5 billion to over 6 billion oil-equivalent barrels. During the quarter, the company made its 13th discovery on the block with the Yellowtail-1 well.
  • Mozambique Rovuma Venture S.p.A., an incorporated joint venture owned by ExxonMobilEni S.p.A. and China National Petroleum Corporation, announced that the government of Mozambique approved its development plan for the Rovuma LNG project. The project includes two liquefied natural gas trains with a combined annual capacity of more than 15 million metric tons. A final investment decision is expected later in 2019.
  • ExxonMobil subsidiary  ExxonMobil Argentina Offshore Investments B.V. and an affiliate of Qatar Petroleum won three exploration blocks during Argentina’s first offshore bid round, adding approximately 2.6 million net acres to  ExxonMobil’s holdings in the country.
  • ExxonMobil announced that it will increase its offshore exploration acreage in Namibia with the addition of approximately 7 million net acres following the signing of agreements with the government of Namibia and the National Petroleum Corporation of Namibia.

Investing for Growth

  • The company announced that it has funded the Liza Phase 2 development offshore Guyana after it received government and regulatory approvals. Phase 2 startup is expected in mid-2022, producing up to 220,000 barrels of oil per day, while Phase 1 remains on track for first oil by the first quarter of 2020. ExxonMobil estimates it will achieve gross production of over 750,000 barrels per day from the Stabroek Block by 2025.
  • ExxonMobil and SABIC announced the decision to proceed with the Gulf Coast Growth Ventures project to construct a new chemical facility in San Patricio County, Texas. The new facility will include an ethane steam cracker with a capacity of 1.8 million metric tons per year, two polyethylene units and a monoethylene glycol unit.
  • ExxonMobil made a final investment decision on a multi-billion dollar expansion of its integrated manufacturing complex in Singapore to convert fuel oil and other bottom-of-the-barrel crude products into higher-value lube basestocks and distillates. The expansion will add 20,000 barrels per day of  ExxonMobil Group II basestocks capacity and increase production of lower-sulfur fuels by 48,000 barrels per day.
  • ExxonMobil announced that it will proceed with a $2 billion expansion project at its Baytown, Texas chemical plant. The expansion will add annual production of about 400,000 metric tons of VistamaxxTM performance polymers, and about 350,000 metric tons of linear alpha olefins.  
  • The company reached a final investment decision to upgrade its Fawley refinery in the United Kingdom to increase production of ultra-low sulfur diesel by almost 45 percent, or 38,000 barrels per day, along with logistics improvements. The more than $1 billion investment includes a hydrotreater unit to remove sulfur from fuel, supported by a hydrogen plant which will improve the refinery’s overall energy efficiency. 
  • The company is proceeding with an expansion project in Argentina’s Vaca Muerta basin. The project is expected to reach gross production of up to 55,000 oil-equivalent barrels per day within five years and will include 90 wells, a central production facility and export infrastructure.
  • ExxonMobil and its partners announced a project to increase gross production at Block 15 offshore Angola by approximately 40,000 barrels per day, while changes to the production sharing agreement will extend operations through 2032.

Advancing Innovative Technologies and Products

  • The company completed an expansion at its Singapore refinery to enhance EHCTM Group II basestocks production, with supply to customers expected in the third quarter of 2019. The expansion will enable customers to blend lubricants that satisfy more stringent specifications, lower emissions and improve fuel economy and low-temperature performance. 
  • ExxonMobil announced that it will invest up to $100 million over 10 years to research and develop advanced lower-emissions technologies with the U.S. Department of Energy’s National Renewable Energy Laboratory and National Energy Technology Laboratory. The agreement, among the largest between the department’s laboratories and the private sector, will support research and collaboration into ways to bring biofuels and carbon capture and storage to commercial scale across the transportation, power generation and industrial sectors.   

Earnings and Volume Summary

Millions of Dollars
(unless noted) 
2Q 2019  2Q 2018  Change  Comments 

Upstream

 
U.S.  335  439  -104  Volumes growth more than offset by lower liquids prices and higher growth-related expenses 
Non-U.S.  2,926  2,601  +325  Alberta tax rate change (+487) and higher volumes, partly offset by lower prices and higher maintenance and exploration expenses 

Total

 

3,261

 

3,040

 

+221

 

Prices -730, volumes +720, other +230

 
Production (koebd)  3,909  3,647  +262  Liquids +177 kbd: growth and lower downtime, partly offset by decline  Gas +507 mcfd: growth and higher demand, partly offset by decline 

Downstream

 
       
U.S.   310  695  -385  Increased downtime/maintenance 
Non-U.S.  141  29  +112  Favorable foreign exchange effects, reduced downtime/maintenance, and portfolio/projects contribution, partly offset by lower margins and higher operations expenses 

Total 

 

451

 

724

 

-273

 

Margins -240, downtime/maintenance -140, portfolio/projects +70, other +40

 
Petroleum Product Sales (kbd)  5,408  5,502  -94   

Chemical

 
       
U.S.  (6)  453  -459  Lower margins and higher downtime/maintenance 
Non-U.S.  194  437  -243  Lower margins, unfavorable foreign exchange and tax impacts, and higher project-related expenses 

Total

 

188

 

890

 

-702

 

Margins -440, downtime/maintenance -120, project-related expenses -30, other -110

 
Prime Product Sales (kt)  6,699  6,852  -153   

Corporate and financing

 

(770)

 

(704)

 

-66

 

 

Earnings and Volume Summary 

Millions of Dollars
(unless noted) 
2Q 2019  1Q 2019  Change  Comments 

Upstream

 
       
U.S.  335  96  +239  Volume growth, higher liquids prices, and lower impairments, partly offset by lower gas prices and higher growth-related expenses 
Non-U.S.  2,926  2,780  +146  Alberta tax rate change (+487) and higher liquids prices, partly offset by lower gas prices, higher maintenance and exploration expenses, and lower volumes 

Total

 

3,261

 

2,876

 

+385

 

Liquids prices +540, gas prices -550, volumes +70, other +330

 
Production (koebd)  3,909  3,981  -72  Liquids +62 kbd: growth, partly offset by increased planned maintenance  Gas -804 mcfd: lower seasonal demand in Europe 

Downstream

 
       
U.S.  310  (161)  +471  Higher margins, partly offset by increased downtime/maintenance and unfavorable yield/sales mix 
Non-U.S.  141  (95)  +236  Higher margins, partly offset by increased downtime/maintenance and higher seasonal expenses 

Total

 

451

 

(256)

 

+707

 

Margins +1,120, downtime/maintenance -190, yield/sales mix -120, other -100

 
Petroleum Product Sales (kbd)  5,408  5,415  -7   

Chemical

 
       
U.S.  (6)  161  -167  Lower margins and higher downtime/maintenance 
Non-U.S.  194  357  -163  Lower margins and higher project-related expenses 

Total

 

188

 

518

 

-330

 

Margins -180, downtime/maintenance -120, other -30

 
Prime Product Sales (kt)  6,699  6,672  -73   

Corporate and financing 

 

(770)

 

(788)

 

+18

 
 

Earnings and Volume Summary

Millions of Dollars
(unless noted) 
YTD 2019  YTD 2018  Change  Comments 

Upstream

 
       
U.S.  431  868  -437  Volumes growth more than offset by lower liquids prices, higher growth-related expenses, and impairment charges 
Non-U.S.  5,706  5,669  +37  Alberta tax rate change (+487), higher volumes, and favorable tax effects, partly offset by lower prices, absence of Scarborough divestment gain (-366), and higher maintenance and exploration expenses 

Total

 

6,137

 

6,537

 

-400

 

Prices -760, volume +790, other -430

 
Production (koebd)  3,945  3,768  +177  Liquids +144 kbd: growth and lower downtime, partly offset by decline  Gas +199 mcfd: growth and lower downtime, partly offset by decline 

Downstream

 
       
U.S.  149  1,014  -865  Higher downtime/maintenance and lower margins 
Non-U.S.  46  650  -604  Lower margins and higher operations expenses, partly offset by portfolio/projects contribution, lower downtime/maintenance, and favorable foreign exchange 

Total

 

195

 

1,664

 

-1,469

 

Margins -1,100, downtime/maintenance -500, portfolio/projects +150, other -20

 
Petroleum Product Sales (kbd)  5,412  5,467  -55   

Chemical

 
       
U.S.  155  956  -801  Lower margins, higher downtime/maintenance, and lower volumes 
Non-U.S.  551  945  -394  Higher volumes more than offset by lower margins, unfavorable foreign exchange impacts, and higher project-related expenses 

Total

 

706

 

1901

 

-1,195

 

Margins -810, downtime/maintenance -110, other -270

 
Prime Product Sales (kt)  13,471  13,520  -49   

Corporate and financing 

 

(1,558)

 

(1,502)

 

-56

 
 

Cash Flow from Operations and Asset Sales excluding Working Capital

Millions of Dollars

 

2Q 2019

 

Comments

 
Net income including noncontrolling interests  3,391  Including $261 million for noncontrolling interests  
Depreciation  4,631   
Changes in working capital  (1,243)  Mainly seasonal reduction in payables 
Other  (832)  Includes adjustment for noncash identified item (deferred income tax) 

Cash Flow from Operating Activities (U.S. GAAP)

 

5,947

 

 
Asset sales  33   

Cash Flow from Operations and Asset Sales

 

5,980

 

 
Changes in working capita  (1,243)   

Cash Flow from Operations and Asset Sales excluding Working Capital

 

7,223 

 
 

Millions of Dollars

 

YTD 2019

 

Comments

 
Net income including noncontrolling interests  5,797  Including $317 million for noncontrolling interests   
Depreciation  9,202   
Changes in working capital  1,014  Mainly driven by higher payables 
Other  (1,728)  Equity company earnings greater than dividends, and adjustment for noncash identified item (deferred income tax) 

Cash Flow from Operating Activities (U.S. GAAP)

 

          14,285

 

 
Asset sales  140   

Cash Flow from Operations and Asset Sales

 

14,425

 

 
Changes in working capital     1,014      

Cash Flow from Operations and Asset Sales excluding Working Capital

 

13,411

 
 

First Half 2019 Financial Updates

During the first half of 2019, Exxon Mobil Corporation purchased 5 million shares of its common stock for the treasury at a gross cost of $414 million. These shares were acquired to offset dilution in conjunction with the company’s benefit plans and programs. The corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on August 2, 2019. To listen to the event or access an archived replay, please visit  .

Estimated Key Financial and Operating Data

Exxon Mobil Corporation Second Quarter 2019 - Attachment I
(millions of dollars, unless noted)

  Second Quarter  First Quarter                       First Half 

Earnings / Earnings Per Share

 

2019

 
2018  2019 

2019

 
2018  
Total revenues and other income 

69,091

 
73,501  63,625 

132,716

 
141,712  
Total costs and other deductions  

          64,459

 
66,989  59,336 

123,795

 
127,960 
Income before income taxes  

    4,632

 
6,512  4,289 

8,921

 
13,752  
     Income taxes 

1,241

 
2,526  1,883 

3,124

 
4,983  
Net income including noncontrolling interests  

3,391

 
3,986  2,406 

5,797

 
8,769  
     Net income attributable to noncontrolling interests   

261

 
36  56 

317

 
169 
Net income attributable to ExxonMobil (U.S. GAAP) 

3,130

 
3,950  2,350 

5,480

 
8,600 
Earnings per common share (dollars)  

 0.73

 
 0.92  0.55 

1.28

 
2.01 
Earnings per common share - assuming dilution (dollars) 

0.73

 
0.92  0.55 

1.28

 
2.01 
Exploration expenses, including dry holes 

333

 
332  280 

613

 
619 

Other Financial Data

 
         
Dividends on common stock           
     Total   

3,715

 
3,502  3,505 

7,220

 
6,793 
     Per common share (dollars)   

0.87

 
0.82  0.82 

1.69

 
1.59 
Millions of common shares outstanding           
     At period end 

 
   

4,231

 
4,234  
     Average - assuming dilution   

4,271

 
4,271  4,270 

4,270

 
4,270  
ExxonMobil share of equity at period end 

 
   

191,377

 
187,222 
ExxonMobil share of capital employed at period end 

 
   

239,033

 
230,817  
Income taxes 

1,241

 
2,526  1,883 

3,124

 
4,983 
Total other taxes and duties 

8,366

 
9,003  8,087 

16,453

 
17,818 
     Total taxes   

9,607

 
11,529  9,970 

19,577

 
22,801  
Sales-based taxes  

5,261

 
5,507  4,985 

10,246

 
10,788 
     Total taxes including sales-based taxes   

14,868 

 
17,036  14,955 

29,823

 
33,589 
ExxonMobil share of income taxes of equity companies 

501

 
655  849 

1,350

 
1,395 

Exxon Mobil Corporation Second Quarter 2019 – Attachment II
(millions of dollars)

  Second Quarter  First Quarter                          First Half 

Earnings (U.S. GAAP) 

 

2019

 
2018 

2019

 
 2019  2018  

Upstream

 
         
     United States 

335

 
439  96 

431

 
868  
     Non-U.S. 

2,926

 
2,601  2,780 

5,706

 
5,669  

Downstream

 
         
     United States 

310

 
695  (161) 

149

 
1,014 
     Non-U.S. 

141

 
29  (95) 

46

 
650  

Chemical

 
         
     United States 

(6)

 
453  161 

155

 
956  
     Non-U.S. 

194

 
437  357 

551

 
945  
Corporate and financing 

(770)

 
(704)  (788) 

(1,558)

 
(1,502)  
Net income attributable to ExxonMobil 

3,130

 
3,950  2,350 

5,480

 
8,600  

Identified Items Included in Earnings

 
         
 Non-U.S. Upstream           
         Tax Items 

487

 
-   -  

487

 
-  
        Asset Management  -   -   -   366  
 Non-U.S. Downstream           
          Tax Items 

(9)

 
-    - 

(9)

 
-  
 Non-U.S. Chemical           
         Tax Items 

2

 
 -   - 

2

 
-  
 Corporate and financing           
         Tax Items 

25

 
-    - 

25

 
-  
 Corporate total 

505

 
-   -  

505

 
366  

Earnings Excluding Identified Items

 
         
Upstream            
     United States 

335

 
439   96  

431

 
868  
      Non-U.S. 

2,439

 
2,601   2,780  

5,219

 
5,303  
 Downstream           
     United States 

310

 
695   (161)  

149

 
1, 014 
      Non-U.S. 

150

 
29   (95)  

55

 
650  
 Chemical             
      United States 

(6)

 
453   161  

549

 
956  
      Non-U.S. 

192

 
437   357  

549

 
945  
 Corporate and financing 

(795)

 
 (704)  (788)  

(1,583)

 
(1,502)  
 Corporate total 

2,625

 
3,950   2,350  

4,975

 
 8,234 

Exxon Mobil Corporation Second Quarter 2019 - Attachment III

  Second Quarter   First Quarter                          First Half   

Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd) 

 

2019

 
2018  2019 

 2019

 
 2018 
     United States 

662

 
543  600 

631

 
533  
     Canada / Other Americas 

469

 
391  454 

462

 
409  
     Europe 

103

 
136  121 

112

 
140  
     Africa 

383

 
410  369 

376

 
393  
     Asia 

727

 
686  746 

736

 
696  
     Australia / Oceania 

45

 
46  37 

41

 
43  

Worldwide

 

2,389

 

2,212

 

2,327

 

2,358

 
2,214  

Natural gas production available for sale, million cubic feet per day (mcfd)

 
         
     United States 

2,803

 
2,591  2,712 

2,758

 
2,583  
     Canada / Other Americas 

249

 
226  238 

243

 
219  
     Europe 

1,215

 
1,136  2,113 

1,662

 
1,835  
     Africa 

5

 

6

 
9  
     Asia 

3,461

 
3,393  3,655 

3,557

 
3,480  
     Australia / Oceania 

1,387

 
1,258  1,199 

1,294

 
1,195  

Worldwide

 

9,120

 

8,613

 

9,924

 

9,520

 
9,321 
Oil-equivalent production (koebd)1 

3,909

 
3,647  3,981 

3,945

 
3,768  

1 Natural gas converted to an oil-equivalent basis at 6 million cubic feet per 1 thousand barrels.

Exxon Mobil Corporation Second Quarter 2019 - Attachment IV

  Second Quarter  First Quarter                                     First Half 

Refinery throughput (kbd)

 

2019

 
2018  2019 

2019

 
2018 
United States  

1,430

 
1,529  1,373 

1,402

 
1,524  
Canada 

344

 
364  383 

364

 
386  
Europe 

1,314

 
1,384  1,325 

1,320

 
1,439  
Asia Pacific 

683

 
714  609 

646

 
717  
Other 

159

 
114  196 

176

 
133  

     Worldwide

 

3,930

 
4,105  3,886 

3,908

 
4,199  

Petroleum product sales (kbd) 

 
         
United States 

2,264

 
2,128  2,230 

2,237

 
2,171  
Canada 

482

 
484  516 

483

 
499  
Europe 

1,443

 
1,574  1,474 

1,476

 
1,585  
Asia Pacific 

775

 
795  825 

762

 
804 
Other 

444

 
451  450 

454

 
408 

     Worldwide

 

5,408

 
5,502  5,415 

5,412

 
5,467  
Gasolines, naphthas 

2,198

 
2,216  2,149 

2,173

2,216  
Heating oils, kerosene, diesel 

1,820

 
1,781  1,914 

1,867

 
1,804  
Aviation fuels 

391

 
405  386 

389

 
400  
Heavy fuels 

308

 
432  299 

304

 
389  
Specialty products 

691

 
668  667 

679

 
 658 

     Worldwide

 

5,408

 
5,502  5,415 

5,412

 
5,467  

Chemical prime product sales, thousand metric tons (kt)

 
         
United States 

2,295

 
2,411  2,322 

4,617

 
4,802  
Non-U.S. 

4,404

 
4,441  4,450 

8,854

 
8,718  

      Worldwide

 

6,699

 
6,852  6,772 

13,471

 
13,520  

Exxon Mobil Corporation Second Quarter 2019 - Attachment V
(millions of dollars)

                                Second Quarter           First  
       Quarter         
                              First Half   

Capital and Exploration Expenditures 

 

2019

 
2018  2019 

2019

 
2018  

Upstream

 
         
     United States 

3,255

 
1,752  2,548 

5,803

 
3,000  
     Non-U.S. 

2,987

 
3,103  2,813 

5,800

 
5,614  
     Total 

6,242

 
4,855  5,361 

11,603

 
8,614 

Downstream

 
         
     United States 

624

 
346  414 

1,038

 
564  
     Non-U.S. 

489

 
884  415 

904

 
1,280  
     Total 

1,113

 
1,230  829 

1,942

 
1,844  

Chemical

 
         
     United States 

553

 
414  552 

1,105

 
757  
     Non-U.S. 

165

 
119  144 

309

 
241 
     Total 

718

 
533  696 

1,414

 
998 
           
Other 

6

 

10

 
38  
Worldwide 

8,079

 
6,627  6,890 

14,969

 
11,494 
           

Cash flow from operations and asset sales excluding working capital

 
         
Net cash provided by operating activities (U.S. GAAP) 

5,947

 
7,780  8,338 

14,285

 
16,299  
Proceeds associated with asset sales 

33

 
307  107 

140

 
1,748 
Cash flow from operations and asset sales 

5,980

 
8,087  8,445 

14,425

 
18,047 
Changes in working capital 

  (1,243) 

 
(1,333)  2,257  

1,014

 
(982)  
Cash flow from operations and asset sales excluding working capital 

7,223

 
9,420  6,188 

13,411

 
19,029  

Exxon Mobil Corporation Earnings - Attachment VI

  $ Millions  $ Per Common Share 1 

2015

 
   
First Quarter  4,940  1.17 
Second Quarter  4,190  1.00 
Third Quarter  4,240  1.01 
Fourth Quarter  2,780  0.67 
Year  16,150  3.85 
     

2016

 
   
First Quarter  1,810  0.43 
Second Quarter  1,700  0.41 
Third Quarter   2,650  0.63 
Fourth Quarter  1,680  0.41 
Year  7,840  1.88 
     

2017

 
   
First Quarter  4,010  0.95 
Second Quarter  3,350  0.78 
Third Quarter   3,970  0.93 
Fourth Quarter  8,380  1.97 
Year  19,710  4.63 
     

2018

 
   
First Quarter  4,650  1.09 
Second Quarter  3,950  0.92 
Third Quarter  6,240  1.46 
Fourth Quarter  6,000  1.41  
Year  20,840  4.88 
     

 2019

 
   
 First Quarter  2,350  0.55 
 Second Quarter  3,130  0.73 

 1 Computed using the average number of shares outstanding during each period.

Source: EvaluateEnergy® ©2021 EvaluateEnergy Ltd