ExxonMobil Earns $2.7 Billion in First Quarter 2021

Source Press Release
Company ExxonMobil 
Tags Carbon Capture (CCS/CCUS), Chemicals Activities, Strategy - Chemicals, Refining & Marketing Activities, Strategy - Downstream, Exploration, Upstream Activities, Strategy - Upstream, Capital Spending, Environment, ESG/CSR, Strategy - Corporate, Financial & Operating Data
Date April 30, 2021

Exxon Mobil Corporation today announced estimated first quarter 2021 earnings of $2.7 billion, or $0.64 per share assuming dilution, compared with a loss of $610 million in the first quarter of 2020. Results included unfavorable identified items of $31 million, or $0.01 per share assuming dilution. First quarter capital and exploration expenditures were $3.1 billion, $4 billion lower than the first quarter of 2020.

ExxonMobil earns $2.7 billion in first quarter 2021

First Quarter 2021 Results and Management Perspectives

  • Cash flow from operating activities of $9.3 billion fully funded dividend and capital expenditures, and drove debt reduction of over $4 billion
  • Lowered cash operating expenses versus the first and fourth quarters of 2020; on pace to deliver additional structural cost savings
  • Advanced several initiatives to reduce emissions and launched Low Carbon Solutions business to commercialize extensive low-carbon technology portfolio
  • Added three new directors to strengthen board experience in energy, capital allocation and complex business transitions

  First Quarter  Fourth Quarter 
 

2021

 
2020  2020 
Results Summary(Dollars in millions, except per share data)       
Earnings/(Loss) (U.S. GAAP) 

2,730

 
(610)   (20,070)  
 Earnings/(Loss) Per Common Share Assuming Dilution 

0.64 

 
(0.14)   (4.70) 
Identified Items Per Common Share
Assuming Dilution 

(0.01)

 
(0.67)   (4.73)  
Earnings/(Loss) Excluding Identified Items Per Common Share
Assuming Dilution 

0.65 

 
0.53  0.03 
Capital and Exploration
Expenditures 

3,133 

 
7,143  4,771 

Oil-equivalent production was 3.8 million barrels per day, up 3 percent from the fourth quarter of 2020. Excluding entitlement effects, government mandates and divestments, oil-equivalent production was up 2 percent.“The strong first quarter results reflect the benefits of higher commodity prices and our focus on structural cost reductions, while prioritizing investments in assets with a low cost of supply,” said Darren Woods, chairman and chief executive officer. “Cash flow from operating activities during the quarter fully covered the dividend and capital investments, and we strengthened the balance sheet by reducing debt. We also made progress on our energy transition strategy by launching our new ExxonMobil Low Carbon Solutions business, which is initially working to develop innovative, large-scale carbon capture and storage (CCS) concepts, including the evaluation and advancement of more than 20 new opportunities, such as a multi-industry hub to reduce emissions from hard-to-decarbonize industries near the Houston Ship Channel. As the global leader in carbon capture, we are seeing growing public and private sector support for CCS as a critical enabling technology to reduce emissions and help meet society's net-zero ambitions.”During severe winter weather in Texas in February,  ExxonMobil cogeneration facilities generated 400 megawatts of electricity, helping to power about 200,000 homes. The severe weather event reduced first quarter earnings by nearly $600 million across all businesses from decreased production and lower sales volumes, repair costs, and the net impact of energy purchases and sales. All affected facilities have resumed normal operations.

First Quarter 2021 Results and Business Highlights

Upstream

  • Average realizations for crude oil increased 42 percent from the fourth quarter. Natural gas realizations rose by 33 percent in the quarter.
  • Total production volumes increased 98,000 oil-equivalent barrels per day from the fourth quarter. Excluding entitlement effects, government mandates and divestments, liquids volumes were down 3 percent including impacts from higher maintenance and the winter storm. Natural gas volumes increased 12 percent driven by higher seasonal demand in Europe.
  • During the quarter, production volumes in the Permian averaged 394,000 oil-equivalent barrels per day, an increase of 12 percent from the prior year. The focus remains on continuing to grow positive free cash flow by lowering overall development costs and increasing recovery through efficiency gains and technology applications.

Downstream

  • Industry fuels margins improved from the fourth quarter, but remained below 10-year-lows driven by market oversupply and high product inventory levels. Lubricants delivered strong performance, underpinned by lower costs and improved margins.
  • Despite winter storm disruptions, overall refining throughput was essentially flat with the fourth quarter as the company managed refinery operations in line with fuel demand and integrated chemical manufacturing needs.

Chemical

  • Industry margins improved further in the quarter reflecting continued strong demand, global shipping constraints, and ongoing supply disruptions, particularly in North America, where the polyethylene and polypropylene markets were affected by severe winter weather in Texas.
  • Strong first quarter Chemical earnings performance of $1.4 billion was supported by robust base operations capturing high margins and continued delivery of cost efficiencies.
  • ExxonMobil announced it is pursuing three new advanced recycling initiatives in the U.S. and Europe that further advance our commitment to sustainability and capture value from plastic waste at scale. The company plans to begin marketing certified circular plastics products later this year.  

Strengthening the Portfolio

  • ExxonMobil signed an agreement valued at more than $1 billion for the sale of most of its non-operated upstream assets in the United Kingdom central and northern North Sea. The sale price, subject to closing adjustments, has potential additional upside of up to $300 million based on contingent payments associated with future commodity price increases. The transaction is expected to close near mid-year 2021, subject to regulatory and third-party approvals.
  • The company is progressing plans to convert both its Altona, Australia refinery, and Slagen refinery in Norway to fuel import terminals, ensuring ongoing, reliable fuel supply for their respective local markets. Final decisions were made following local consultation processes with employees and their representatives as part of extensive reviews of the long-term economic viability of both facilities.

Capital Allocation and Structural Cost Improvement

  • The company's long-term capital allocation priorities remain investing in advantaged projects to drive cash flow, strengthening the balance sheet and maintaining a reliable dividend. 
  • ExxonMobil’s 2021 capital program remains at $16 billion to $19 billion. If market conditions continue above the company's planning basis, additional cash will be used to accelerate deleveraging.
  • In addition to $3 billion in structural cost reductions already achieved in 2020, the company is on pace to achieve $3 billion of further structural efficiencies through 2023 for a total of $6 billion relative to 2019. Efforts to identify additional structural savings resulting from the reorganizations completed in 2019 are continuing.

Reducing Emissions and Advancing Low Carbon Solutions

  • The company announced the creation of ExxonMobil Low Carbon Solutions, a new business to commercialize its extensive low-carbon technology portfolio, with an initial focus on carbon capture and storage (CCS), the process of sequestering industrial emissions and safely storing them permanently underground. CCS is considered one of the critical technologies required to achieve society’s net-zero ambitions and the climate goals outlined in the Paris Agreement.
  • In April, ExxonMobil introduced the innovative concept of a multi-industry CCS hub along the Houston Ship Channel and surrounding industrial areas to capture CO2 emissions from area industry, including petrochemical, manufacturing and power generation facilities. The concept would require large-scale collaboration and policy advancements among governments, private industry, and local communities.
  • ExxonMobil became the first company to file an application with the U.S. Environmental Protection Agency (EPA) to use new aerial technologies to detect methane emissions at oil and natural gas sites.
  • ExxonMobil and Porsche are testing advanced biofuels and renewable, lower-carbon eFuels, as part of a new agreement to find pathways toward potential future consumer adoption of fuels that could significantly reduce emissions.

Ongoing Board Refreshment

  • During the quarter, ExxonMobil announced the elections of Michael Angelakis, Jeffrey Ubben, and Wan Zulkiflee to its board of directors. With the addition of the new members, the  ExxonMobil board increased to 13 directors, 12 of whom are independent. The company has added six new independent directors since 2017 with specific experience in the areas of climate science, asset and risk management, capital allocation, energy and business transition, investor perspectives, and additional energy industry experience.  

Results and Volume Summary

Millions of Dollars
(unless noted) 
1Q 2021  1Q 2020  Change  Comments 

Upstream

 
U.S.  363   (704)  +1,067  Winter storm impact more than offset by higher
prices and reduced expenses; prior quarter
unfavorable identified items (impairment +315,
inventory valuation +45) 
Non-U.S.  2,191   1,240  +951  Higher prices and reduced expenses, partly
offset by lower volumes and unfavorable foreign
exchange; prior quarter unfavorable identified
items (inventory valuation +218, impairment +41) 

Total

 

2,554

 

536

 

+2,018

 

Winter storm -240, prices +1,690,volume -320, expenses +430,identified items +620, other -160

 
Production (koebd)  3,787  4,046  -259  Liquids -222 kbd: government mandates, lower
entitlements, and winter storm impact (-25)Gas -223 mcfd: decline, higher downtime/
maintenance, winter storm impact (-105), and
Groningen production limit, partly offset by
higher demand and project growth 

Downstream

 
       
U.S.   (113)  (101)  -12  Winter storm impact and lower margins driven by
weaker industry refining conditions, partly offset
by reduced expenses and favorable other
impacts; prior quarter unfavorable identified items
(+411, mainly inventory valuation) 
Non-U.S.  (277)  (510)  +233  Lower margins including net unfavorable mark to
market impact on unsettled derivatives, net
unfavorable one-time items, and unfavorable
foreign exchange, partly offset by reduced
expenses; prior quarter unfavorable identified
items (inventory valuation +1,196,
impairments +335) 

Total 

 

(390)

 

(611)

 

+221

 

Winter storm -130, margins -1,880,expenses +410, identified items +1,940,forex/other -120

 
Petroleum Product Sales (kbd)  4,881   5,287  -406   

Chemical

 
       
U.S.  715   288  +427  Winter storm impact more than offset by higher
margins, stronger demand, and reduced
expenses; prior quarter unfavorable identified
item (+90, impairment) 
Non-U.S.  700  (144)  +844  Higher margins, stronger demand, reduced
expenses, and favorable foreign exchange;
prior quarter unfavorable identified items
(+232, mainly inventory valuation) 

Total

 

1,415

 

144

 

+1,271

 

Winter storm -230, margins +740,demand +130, expenses +240, identifieditems +320, forex/other +70

 
Prime Product Sales (kt)  6,446  6,237  +209   

Corporate and financing

 

(849)

 

(679)

 

-170

 

Higher retirement-related expenses

 

Results and Volume Summary

Millions of Dollars
(unless noted) 
1Q 2021  4Q 2020  Change  Comments 

Upstream

 
       
U.S.  363  (16,803)  +17,166  Higher prices and reduced expenses, partly
offset by winter storm impact and lower volumes;
prior quarter unfavorable identified item
(impairment +16,777) 
Non-U.S.  2,191  (1,729)  +3,920  Higher prices and seasonal gas volumes; prior
quarter unfavorable identified items (impairment
+2,203, tax item +297) 

Total

 

2,554

 

(18,532) 

 

+21,086

 

Winter storm -240, prices +2,070, volume -80,expenses +170, identified items +19,280,other -110

 
Production (koebd)  3,787   3,689  +98  Liquids -67 kbd: lower entitlements, winter
storm impact (-25), and increased downtime/
maintenance, partly offset by reduced
government mandates
Gas +988 mcfd: higher seasonal demand,
reduced downtime/maintenance, and net growth,
partly offset by winter storm impact (-105) 

Downstream

 
       
U.S.  (113)   (514)  +401  Higher margins on improved industry refining
conditions, reduced expenses, and prior quarter
unfavorable LIFO inventory impact (+78),
partly offset by winter storm impact, lower
manufacturing volumes, and net unfavorable
one-time items 
Non-U.S.  (277)  (697)  +420   Reduced expenses and higher margins driven by
more favorable industry refining conditions, offset
by prior quarter favorable LIFO inventory impact
(-207), unfavorable foreign exchange, terminal
conversion costs, and lower demand; prior
quarter unfavorable identified items
(impairment +258, tax item +262) 

Total

 

(390)

 

(1,211)

 

+821 

 

Winter storm -130, margins +490, demand -40,expenses +380, manufacturing -40, identifieditems +520, LIFO/forex -210, other -150

 
Petroleum Product Sales (kbd)  4,881  4,833  +48   

Chemical

 
       
U.S.  715  461  +254  Winter storm more than offset by stronger
margins, demand, and reduced expenses 
Non-U.S.  700  230  +470  Higher margins, reduced expenses, and prior
quarter unfavorable LIFO inventory impact (+84)
and other charges 

Total

 

1,415 

 

691 

 

+724 

 

Winter storm -230, margins +500, demand+100, expenses +150, identified items +20,LIFO/other +180

 
Prime Product Sales (kt)  6,446  6,643  -197   

Corporate and financing 

 

(849) 

 

(1,018)

 

+169

 

Absence of identified items (mainly severance+330), partly offset by net unfavorable taximpacts and retirement-related expenses

 

Cash Flow from Operations and Asset Sales excluding Working Capital

Millions of Dollars

 

1Q 2021

 

Comments

 
Net income (loss) including noncontrolling interests  2,796  Including $66 million noncontrolling interests 
Depreciation and depletion  5,004   
Changes in operational working capital  1,953  Higher net payables and inventory draw 
Other  (489)   

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

 

9,264

 

 
Asset sales  307  Including U.K. upstream divestment deposit
and U.S. upstream asset sales 

Cash Flow from Operations and Asset Sales

 

9,571

 

 
Changes in operational working capital   (1,953)   

Cash Flow from Operations and Asset Sales excluding Working Capital

 

7,618

 
 

Estimated Key Financial and Operating DataExxon Mobil Corporation First Quarter 2021 - Attachment I
(millions of dollars, unless noted)

  First Quarter 2021  First Quarter 2020   Fourth Quarter 2020 

Earnings (Loss) / Earnings (Loss) Per Share

 
     
Total revenues and other income 

59,147 

 
56,158  46,540 
Total costs and other deductions  

55,555 

 
56,416  73,153 
Income (loss) before income taxes 

3,592  

 
(258)  (26,613)  
     Income taxes 

796

 
512  (6,010)  
Net income (loss) including noncontrolling interests 

2,796

 
(770)  (20,603)  
     Net income (loss) attributable to noncontrolling interests 

66

 
(160)  (533)  
Net income (loss) attributable to ExxonMobil (U.S. GAAP) 

2,730

 
(610)   (20,070)  
Earnings (loss) per common share (dollars) 

0.64

 
(0.14)  (4.70) 
Earnings (loss) per common share - assuming dilution (dollars) 

0.64

 
(0.14)  (4.70) 
Exploration expenses, including dry holes 

164

 
288  595  

Other Financial Data

 
     
Dividends on common stock       
     Total   

3,720

 
3,719  3,715  
     Per common share (dollars)   

0.87

 
0.87  0.87 
Millions of common shares outstanding       
     At period end 

4,234

 
4,228  4,233 
     Average - assuming dilution   

4,272

 
4,270  4,272  
ExxonMobil share of equity at period end 

156,974

 
182,079  157,150  
ExxonMobil share of capital employed at period end 

222,610

 
 244,026  227,137  
Income taxes 

796 

 
512   (6,010) 
Total other taxes and duties 

7,283 

 
7,497  7,344  
     Total taxes   

8,079 

 
8,009  1,334  
Sales-based taxes  

4,662 

 
4,485   4,364 
     Total taxes including sales-based taxes   

12,741 

 
12,494  5,698  
ExxonMobil share of income taxes of equity companies 

600 

 
460   285  

Exxon Mobil Corporation First Quarter 2021 – Attachment II-a
(millions of dollars)

  First Quarter 2021  First Quarter 2020  Fourth Quarter 2020 
Earnings / (Loss) (U.S. GAAP)  

2,730

 
(610)   (20,070)   
Identified items included in Earnings / (Loss)  

 
   
    Noncash inventory valuation - lower of cost or market  —  (2,096)    —    
    Impairments  —  (787)   (19,273)  
    Tax   —   —     (581)  
     Other items (severance - global workforce review) 

(31)

 
 —    (326)  
Corporate total 

(31)

 
(2,883)   (20,180)  
       
Earnings excluding identified items 

 2,761 

 
2,273    110   
       
       

$ Per Common Share1

 
     
       
Earnings / (Loss) per common share assuming dilution (U.S. GAAP)  0.64

 
(0.14)   (4.70)  
Identified items included in Earnings / (Loss) per common shareAssuming dilution       
     Noncash inventory valuation - lower of cost or market  —   (0.49)  —  
     Impairments  —  (0.18)  (4.51)  
     Tax  —  —   (0.14)  
     Other items (severance - global workforce review) 

(0.01) 

 
—   (0.08)  
Corporate total 

(0.01) 

 
(0.67)   (4.73)  
       
Earnings excluding identified items per common share assuming dilution 

0.65

 
0.53   0.03  

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

Exxon Mobil Corporation First Quarter 2021 – Attachment II-b
(millions of dollars)

  First Quarter 2021  First Quarter 2020   Fourth Quarter 2020 

Earnings/(Loss) (U.S. GAAP)

 
     

Upstream

 
     
     United States 

363

 
(704)  (16,803) 
     Non-U.S. 

2,191

 
1,240   (1,729)  

Downstream

 
   


 
     United States 

(113)

 
(101)  (514)  
     Non-U.S. 

(277)

 
(510)   (697)  

Chemical

 
     
     United States 

715

 
288   461  
     Non-U.S. 

700

 
(144)   230 
Corporate and financing 

(849)

 
(679)  (1,018) 
Net income (loss) attributable to ExxonMobil 

2,730

 
(610)  (20,070)  

Identified Items Included in Earnings/(Loss)

 
     
U.S. Upstream       
      Impairments  —   (315)  (16,777)  
      Other Items (Inventory valuation)  —  (45)   — 
Non-U.S. Upstream       
       Impairments  —  (41)  (2,203) 
       Tax Items  —  —  (297)  
       Other Items (Inventory valuation)  —  (218)  — 
U.S. Downstream       
       Other Items (Inventory valuation, Impairment)  —   (411)  — 
Non-U.S. Downstream       
       Impairments  —   (335)  (258) 
       Tax Items  —   —  (262)  
       Other Items (Inventory valuation)  —   (1,196)  — 
U.S. Chemical       
       Impairment  —  (90)  — 
Non-U.S. Chemical       
       Tax Items  —   —  (22)  
       Other Items (Inventory valuation, Impairment)  —   (232)  — 
Corporate and financing       
       Other Items (Severance - global workforce review, Impairment) 

(31)

 
—  (361)  
Corporate total 

(31)

 
(2,883)  (20,180)  

Earnings/(Loss) Excluding Identified Items

 
     

Upstream

 
     
     United States 

363

 
(344)  (26) 
     Non-U.S 

2,191

 
1,499   771  

Downstream

 
     
       United States 

(113)

 
310  (514)  
       Non-U.S 

(277)

 
1,021  (177)  

Chemical

 
     
      United States 

715

 
378  461  
      Non-U.S 

700

 
88   252  
Corporate and financing 

(818)

 
(679)   (657) 
Corporate total  

2,761 

 
2,273  110  

Exxon Mobil Corporation First Quarter 2021 - Attachment III

  First Quarter 2021  First Quarter 2020   Fourth Quarter 2020 

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

 

 
   
     United States 

665

 
699  719  
     Canada / Other Americas 

575

 
558   619 
     Europe 

35

 
30  32  
     Africa 

253

 
360  258 
     Asia 

691

 
795  658 
     Australia / Oceania 

39

 
38  39 

Worldwide

 

2,258

 
2,480  2,325  

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

 
     
     United States 

2,767

 
2,825  2,686 
     Canada / Other Americas 

216

 
317  253 
     Europe 

1,403

 
1,293   848  
     Africa 

24

 
12  
     Asia 

3,599

 
3,710  3,225 
     Australia / Oceania 

1,164

 
1,244  1,161 

Worldwide

 

9,173

 
9,396  8,185 

 
Oil-equivalent production (koebd)1 

3,787

 
4,046   3,689 

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

Exxon Mobil Corporation First Quarter 2021- Attachment IV

  First Quarter 2021   First Quarter 2020  Fourth Quarter 2020 

Refinery throughput (kbd)

 

 
   
United States 

1,532

 
1,558  1,594 
Canada 

364

 
383   359 
Europe 

1,153

 
1,295  1,130 
Asia Pacific 

545

 
637  522 
Other 

157

 
187  150  

     Worldwide

 

3,751

 
4,060   3,755  

Petroleum product sales (kbd)

 
     
United States 

2,077

 
2,231   2,128 
Canada 

409

 
456  415 
Europe 

1,272

 
1,403  1,227 
Asia Pacific 

665

 
708  645  
Other 

458

 
489   418 

     Worldwide

 

4,881

 
5,287   4,833 
Gasolines, naphthas 

1,996

 
2,122   2,039 
Heating oils, kerosene, diesel 

1,692 

 
1,867  1,739 
Aviation fuels 

183

 
383  172 
Heavy fuels 

257

 
256  237 
Specialty products 

753

 
659  646 

     Worldwide

 

4,881

 
5,287   4,833  

Chemical prime product sales, thousand metric tons (kt)

 
     
United States 

2,190

 
2,195  2,467   
Non-U.S. 

4,256

 
4,042  4,176 

      Worldwide

 

6,446 

 
6,237   6,643 

Exxon Mobil Corporation First Quarter 2021 - Attachment V
(millions of dollars)

  First Quarter 2021  First Quarter 2020   Fourth Quarter 2020 

Capital and Exploration Expenditures 

 
     

Upstream

 
     
     United States 

810

 
2,798  1,122  
     Non-U.S. 

1,547

 
2,328  1,812 
     Total 

2,357 

 
5,126  2,934  

Downstream

 
     
     United States 

271

 
747  488  
     Non-U.S. 

199 

 
487  674 
     Total 

470

 
1,234  1,162 

Chemical

 
     
     United States 

208 

 
597  435  
     Non-U.S. 

98

 
185  240 
     Total 

306

 
782   675  
       
Other  —  — 
Worldwide 

3,133 

 
7,143   4,771 
       

Cash flow from operations and asset sales

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

9,264

 
6,274 

4,005

 
Proceeds associated with asset sales 

307

 
86 

770

 
Cash flow from operations and asset sales 

9,571

 
6,360 

4,775

 
Changes in operational working capital 

(1,953) 

 
942  

114

 
Cash flow from operations and asset sales excluding working capital 

7,618

 
7,302 

4,889

 

Exxon Mobil Corporation Earnings/(Loss) - Attachment VI

  $ Millions  $ Per Common Share 1 

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 
Third Quarter  3,170   0.75  
Fourth Quarter  5,690   1.33  
Year  14,340   3.36  
     

2020

 
   
First Quarter  (610)    (0.14)  
Second Quarter  (1,080)   (0.26) 
Third Quarter  (680)  (0.15) 
Fourth Quarter  (20,070)   (4.70) 
Year  (22,440)   (5.25) 
     

2021

 
   
First Quarter  2,730   0.64

 

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