Attached files

file filename
EX-99.2 - INVESTOR RELATIONS DATA SUMMARY - EXXON MOBIL CORPf8k4q992.htm
8-K - FORM 8-K - EXXON MOBIL CORPr8k020119.htm

 

EXHIBIT 99.1

News Release

 

Exxon Mobil Corporation

 

5959 Las Colinas Boulevard

 

Irving, TX  75039

 

972 940 6007 Telephone

 

972 940 6143 Facsimile

FOR IMMEDIATE RELEASE

 

FRIDAY, FEBRUARY 1, 2019

 

 

 

 

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

 

 

 

 

Full-year cash flow from operating activities of $36 billion, highest since 2014

 

Tenth discovery offshore Guyana, increasing Stabroek resource estimate to more than 5 billion barrels

 

Fourth quarter 2018 liquids production up 4 percent from prior-year quarter driven by Permian growth

         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third

 

 

 

 

 

 

 

 

Fourth Quarter

 

 

Quarter

 

 

Twelve Months

 

 

 

 

 

2018

2017

 

%

2018

%

 

2018

2017

 

%

Earnings Summary

 

 

 

 

 

 

 

 

 

 

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (U.S. GAAP)

 

6,000

8,380

 

-28

6,240

-4

 

20,840

19,710

 

+6

 

 

U.S. Tax Reform

 

20

5,942

 

 

271

 

 

291

5,942

 

 

 

 

Asset Impairments

 

(429)

(1,294)

 

 

(18)

 

 

(489)

(1,521)

 

 

 

Earnings Excluding U.S. Tax

 

 

 

 

 

 

 

 

 

 

 

 

 

Reform and Impairments

 

6,409

3,732

 

+72

5,987

+7

 

21,038

15,289

 

+38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Per Common Share

 

 

 

 

 

 

 

 

 

 

 

 

 

Assuming Dilution

 

1.41

1.97

 

-28

1.46

-3

 

4.88

4.63

 

+5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital and Exploration

 

 

 

 

 

 

 

 

 

 

 

 

Expenditures

 

7,843

8,999

 

-13

6,586

+19

 

25,923

23,080

 

+12

 

IRVING, Texas – February 1, 2019 – Exxon Mobil Corporation today announced estimated 2018 earnings of $20.8 billion, or $4.88 per share assuming dilution, compared with $19.7 billion a year earlier. Excluding U.S. tax reform and asset impairments, earnings were $21 billion, compared with $15.3 billion in 2017. Cash flow from operations and asset sales was $40.1 billion, including proceeds associated with asset sales of $4.1 billion. Capital and exploration expenditures were $25.9 billion, including incremental spend to accelerate value capture.

 

Fourth quarter 2018 earnings were $6 billion, or $1.41 per share assuming dilution, compared with $8.4 billion in the prior-year quarter. Earnings excluding U.S. tax reform and impairments were $6.4 billion, compared with $3.7 billion in the prior-year quarter.

 

“Strong results during a period of commodity price volatility demonstrate ExxonMobil’s ability to deliver superior cash flow in different market environments,” said Darren W. Woods, chairman and chief executive officer. “Our continued focus on long-term fundamentals and portfolio improvements position us well to grow shareholder value. ExxonMobil’s 2018 results further demonstrate our advantages in technology, scale and integration, providing a strong foundation to successfully compete across commodity price cycles.”

 


 

Fourth Quarter 2018 Business Highlights

 

Upstream

 

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

 

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

 

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

 

Downstream

 

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

 

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

 

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

 

Chemical

 

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

 

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

 

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

 

 

 

</BCLPAGE>2


 

Strengthening the Portfolio

 

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

 

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

 

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

 

Investing for Growth

 

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

 

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

                                  

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

 

Advancing Innovative Technologies and Products

 

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

 

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

 

</BCLPAGE>3


 

Exxon Mobil Corporation

Fourth Quarter 2018

(millions of dollars)

 

 

 

 

 

 

 

Third

 

 

 

 

 

Fourth Quarter

 

Quarter

 

Twelve Months

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

Earnings (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

265

 

7,061

 

606

 

1,739

 

6,622

 

Non-U.S.

3,048

 

1,291

 

3,623

 

12,340

 

6,733

Downstream

 

 

 

 

 

 

 

 

 

 

United States

987

 

918

 

961

 

2,962

 

1,948

 

Non-U.S.

1,717

 

646

 

681

 

3,048

 

3,649

Chemical

 

 

 

 

 

 

 

 

 

 

United States

282

 

777

 

404

 

1,642

 

2,190

 

Non-U.S.

455

 

493

 

309

 

1,709

 

2,328

Corporate and financing

(754)

 

(2,806)

 

(344)

 

(2,600)

 

(3,760)

Net income attributable to ExxonMobil

6,000

 

8,380

 

6,240

 

20,840

 

19,710

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Tax Reform

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

-

 

7,602

 

-

 

-

 

7,602

 

Non-U.S.

-

 

(480)

 

271

 

271

 

(480)

Downstream

 

 

 

 

 

 

 

 

 

 

United States

-

 

618

 

-

 

-

 

618

Chemical

 

 

 

 

 

 

 

 

 

 

United States

-

 

335

 

-

 

-

 

335

Corporate and financing

20

 

(2,133)

 

-

 

20

 

(2,133)

Total U.S. Tax Reform

20

 

5,942

 

271

 

291

 

5,942

 

 

 

 

 

 

 

 

 

 

 

 

Asset Impairments

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

(284)

 

(481)

 

-

 

(297)

 

(521)

 

Non-U.S.

(113)

 

(807)

 

-

 

(142)

 

(983)

Downstream

 

 

 

 

 

 

 

 

 

 

United States

(12)

 

(6)

 

-

 

(12)

 

(6)

 

Non-U.S.

(13)

 

-

 

(18)

 

(31)

 

(11)

Chemical

 

 

 

 

 

 

 

 

 

 

Non-U.S.

(7)

 

-

 

-

 

(7)

 

-

Total Asset Impairments

(429)

 

(1,294)

 

(18)

 

(489)

 

(1,521)

 

 

 

 

 

 

 

 

 

 

 

 

Earnings Excluding U.S. Tax Reform and Impairments

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

549

 

(60)

 

606

 

2,036

 

(459)

 

Non-U.S.

3,161

 

2,578

 

3,352

 

12,211

 

8,196

Downstream

 

 

 

 

 

 

 

 

 

 

United States

999

 

306

 

961

 

2,974

 

1,336

 

Non-U.S.

1,730

 

646

 

699

 

3,079

 

3,660

Chemical

 

 

 

 

 

 

 

 

 

 

United States

282

 

442

 

404

 

1,642

 

1,855

 

Non-U.S.

462

 

493

 

309

 

1,716

 

2,328

Corporate and financing

(774)

 

(673)

 

(344)

 

(2,620)

 

(1,627)

Earnings excluding U.S. Tax Reform and Impairments

6,409

 

3,732

 

5,987

 

21,038

 

15,289

 

 

 

 

 

 

 

 

 

 

 

 

</BCLPAGE>4


 

 

 

 

 

 

 

 

 

 

 

 

Earnings and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

4Q 2018

 

4Q 2017

 

 

 

 

 

 

(unless noted)

Adjusted1

 

Adjusted1

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

549

 

(60)

 

+609

 

Higher natural gas prices and liquids volume growth

 

 

Non-U.S.

3,161

 

2,578

 

+583

 

Higher natural gas prices, favorable tax and foreign exchange impacts, partly offset by lower liquids prices

 

 

Total

3,710

 

2,518

 

+1,192

 

Prices +660, volumes +180, foreign exchange +80, other +270

 

 

Production (koebd)

4,010

 

3,991

 

+19

 

Liquids +97 kbd: growth, partly offset by decline, lower entitlements and divestments

  

Gas -467 mcfd: decline largely in U.S. aligned with value focus, lower demand, lower entitlements and divestments, partly offset by unconventional growth

 

 

 

 

 

 

 

 

 

 

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

999

 

306

 

+693

 

Lower downtime/maintenance, higher margins capturing crude differentials, improved yield/sales mix and favorable tax impacts

 

 

Non-U.S.

1,730

 

646

 

+1,084

 

Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888), higher margins and improved yield/sales mix, partly offset by higher downtime/maintenance

 

 

Total

2,729

 

952

 

+1,777

 

Divestment gains +680, margins +550, yield/sales mix +200, downtime/maintenance +130, other +220

 

 

Petroleum Product Sales (kbd)

5,495

 

5,624

 

-129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

282

 

442

 

-160

 

Weaker margins

 

 

Non-U.S.

462

 

493

 

-31

 

Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by favorable tax item (+212) and higher sales volumes

 

 

Total

744

 

935

 

-191

 

Margins -350, downtime/maintenance -90, tax item +210, sales +100, other -60

 

 

Prime Product Sales (kt)

6,672

 

6,782

 

-110

 

Downtime/maintenance, partly offset by growth-related volumes

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and financing

(774)

 

(673)

 

-101

 

Lower U.S. tax rate

 

 

 

 

 

 

 

 

 

 

 

 

1Earnings excluding U.S. Tax Reform and Impairments

 

</BCLPAGE>5


 

 

Earnings and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

4Q 2018

 

3Q 2018

 

 

 

 

 

 

(unless noted)

Adjusted1

 

Adjusted1

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

549

 

606

 

-57

 

Lower liquids prices and higher expenses, partly offset by higher liquids volumes and stronger natural gas prices

 

 

Non-U.S.

3,161

 

3,352

 

-191

 

Lower liquids prices, partly offset by higher volumes, stronger natural gas prices and favorable foreign exchange impacts

 

 

Total

3,710

 

3,958

 

-248

 

Prices -1,110, volumes +660, foreign exchange +100, other +100

 

 

Production (koebd)

4,010

 

3,786

 

+224

 

Liquids +62 kbd: growth and lower unscheduled downtime

 

Gas +973 mcfd: higher seasonal demand and entitlements

 

 

 

 

 

 

 

 

 

 

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

999

 

961

 

+38

 

Higher margins capturing crude differentials and improved yield/sales mix, partly offset by higher downtime/maintenance

 

 

Non-U.S.

1,730

 

699

 

+1,031

 

Higher divestment gains including sale of Augusta refinery / Germany Retail conversion to branded wholesaler (+888) and higher margins, partly offset by higher downtime/maintenance

 

 

Total

2,729

 

1,660

 

+1,069

 

Divestment gains +870, margins +500, yield/sales mix +70, downtime/maintenance -460, other +90

 

 

Petroleum Product Sales (kbd)

5,495

 

5,616

 

-121

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

282

 

404

 

-122

 

Weaker margins

 

 

Non-U.S.

462

 

309

 

+153

 

Favorable tax item (+212), partly offset by growth-related expenses

 

 

Total

744

 

713

 

+31

 

Tax item +210, margins -110, other -70

 

 

Prime Product Sales (kt)

6,672

 

6,677

 

-5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and financing

(774)

 

(344)

 

-430

 

Mainly absence of favorable one-time tax item

 

 

 

 

 

 

 

 

 

 

 

 

1Earnings excluding U.S. Tax Reform and Impairments

 

</BCLPAGE>6


 

 

Earnings and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

FY 2018

 

FY 2017

 

 

 

 

 

 

(unless noted)

Adjusted1

 

Adjusted1

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

2,036

 

(459)

 

+2,495

 

Higher liquids prices and liquids volume growth and favorable mix, partly offset by higher growth-related expenses

 

 

Non-U.S.

12,211

 

8,196

 

+4,015

 

Higher prices and divestment gains / one-time items, partly offset by lower volumes and higher expenses largely from increased maintenance

 

 

Total

14,247

 

7,737

 

+6,510

 

Prices +7,040, divestment gains / one-time items +780, maintenance / growth-related expenses -970, volumes -240, other -100

 

 

Production (koebd)

3,833

 

3,985

 

-152

 

Liquids -17 kbd: growth in North America, more than offset by decline, lower entitlements and divestments

 

Gas -806 mcfd: decline largely in U.S. aligned with value focus, lower entitlements, divestments, and higher downtime

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

2,974

 

1,336

 

+1,638

 

Higher margins capturing crude differentials, favorable tax impacts, lower downtime/maintenance and favorable yield/sales mix

 

 

Non-U.S.

3,079

 

3,660

 

-581

 

Higher downtime/maintenance, lower margins and unfavorable foreign exchange impacts, partly offset by higher divestment gains and favorable yield/sales mix

 

 

Total

6,053

 

4,996

 

+1,057

 

Margins +660, divestment gains +490,  yield/sales mix +260, downtime/maintenance -530, foreign exchange -290, other +470

 

 

Petroleum Product Sales (kbd)

5,512

 

5,530

 

-18

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

1,642

 

1,855

 

-213

 

Volume growth, more than offset by higher growth-related expenses and weaker margins

 

 

Non-U.S.

1,716

 

2,328

 

-612

 

Weaker margins, higher growth-related expenses and higher downtime/maintenance, partly offset by volume growth, favorable tax item (+212) and favorable foreign exchange impacts

 

 

Total

3,358

 

4,183

 

-825

 

Margins -910, downtime/maintenance -150, sales +320, tax item +210, foreign exchange +140, other -440

 

 

Prime Product Sales (kt)

26,869

 

25,420

 

+1,449

 

Growth from new assets and stronger demand

 

 

Corporate and financing

(2,620)

 

(1,627)

 

-993

 

Higher pension and financing related costs, lower U.S. tax rate, and lower net favorable tax items

 

 

1Earnings excluding U.S. Tax Reform and Impairments

 

</BCLPAGE>7


 

 

Cash Flow from Operations and Asset Sales

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

 

4Q

 

 

 

 

 

 

 

 

 

2018

 

Comments

 

 

Net income including noncontrolling interests

 

6,206

 

Including $206 million for noncontrolling interests

 

 

Depreciation

 

5,028

 

 

 

 

 

 

Changes in working capital

 

(1,331)

 

Mainly inventory build and timing of tax payments

 

 

Other

 

(1,296)

 

Including adjustment for gains on asset sales

 

 

Cash Flow from Operating

 

8,607

 

 

 

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Asset sales

 

884

 

Including Augusta

 

 

Cash Flow from Operations

 

9,491

 

 

 

 

 

 

and Asset Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

 

 FY 

 

 

 

 

 

 

 

 

 

2018

 

Comments

 

 

Net income including noncontrolling interests

 

21,421

 

Including $581 million for noncontrolling interests

 

 

Depreciation

 

18,745

 

 

 

 

 

 

Changes in working capital

 

(1,356)

 

Inventory build, partly offset by favorable payables

 

 

Other

 

(2,796)

 

Including adjustment for gains on asset sales

 

 

Cash Flow from Operating

 

36,014

 

 

 

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Asset sales

 

4,123

 

Including Germany Retail, Augusta, Scarborough

 

 

Cash Flow from Operations

 

40,137

 

 

 

 

 

 

and Asset Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twelve Months 2018 Financial Updates

 

During 2018, Exxon Mobil Corporation purchased 5 million shares of its common stock for the treasury at a gross cost of $425 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, but does not currently plan on making purchases to reduce shares outstanding. 

 

 

</BCLPAGE>8


 

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on February 1, 2019. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Cautionary Statement

Outlooks, projections, goals, targets, descriptions of business plans and objectives, and other statements of future events or conditions in this release are forward-looking statements. Actual future results, including project plans, capacities, and timing; resource recoveries; earnings, margins and volume growth and mix; and maintenance activities could differ materially due to a number of factors. These include global or regional changes in supply and demand for oil, gas, and petrochemicals and other market conditions that impact prices and differentials; reservoir performance; timely completion of new projects; the impact of fiscal and commercial terms and the outcome of commercial negotiations; changes in law, taxes, or government operations or regulation and timely granting of governmental permits; war and other political or security disturbances; the actions of competitors; the capture of efficiencies between business lines; unforeseen technical or operating difficulties; unexpected technological developments; general economic conditions including the occurrence and duration of economic recessions; the results of research programs; and other factors discussed under the heading Factors Affecting Future Results on the Investors page of our website at www.exxonmobil.com and in Item 1A of ExxonMobil’s 2017 Form 10-K. We assume no duty to update these statements as of any future date.

 

Forward-looking statements in this release regarding future earnings refer to plans outlined at ExxonMobil’s Analysts’ Meeting held on March 7, 2018. The growth figures presented at that meeting are not forecasts of actual future results but were intended to help quantify future potential and goals of management plans and initiatives. See the complete March 7, 2018 presentation available in archive form (including the Cautionary Statement and Supplemental Information included with that presentation) on the Investors page of our website at www.exxonmobil.com for more detailed information. That material includes a description of the assumptions underlying these potential growth estimates including a flat real oil price of $60 per barrel, downstream and chemical margins consistent with 2017 levels, and future gas prices consistent with our internal company plans, as well as a reconciliation of adjusted 2017 earnings used as a baseline.

 

Frequently Used Terms and Non-GAAP Measures

This press release includes cash flow from operations and asset sales. Because of the regular nature of our asset management and divestment program, we believe 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 is shown for 2018 period on page 8 and for 2018 and 2017 periods in Attachment IV.

 

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. We believe 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 as part of the Estimated Key Financial and Operating Data in Attachment I.

 

 

 

</BCLPAGE>9


 

This press release also includes earnings excluding impacts from U.S. tax reform enactment and asset impairments. We believe these figures are useful for investors to consider in comparing the performance of our underlying business across periods when one, or both, periods have been impacted by the U.S. tax reform or an asset impairment charge. A reconciliation of earnings excluding these items to U.S. GAAP earnings is shown on page 4.

 

U.S. Tax Reform

Following the December 22, 2017, enactment of the U.S. Tax Cuts and Jobs Act, in accordance with Accounting Standard Codification Topic 740 (Income Taxes) and following the guidance outlined in the SEC Staff Accounting Bulletin No. 118, the corporation included a $5,942 million credit in its 2017 results, representing a reasonable estimate of the income tax effects of the changes in tax law and tax rate. The corporation’s results for 2018 include a $291 million tax credit, mainly in the Non-U.S. Upstream, reflecting an updated estimate of the impact of U.S. tax reform including clarifications provided in proposed transition tax regulations issued by the U.S. Treasury in 2018. The corporation has completed its accounting for the enactment-date income tax effects of the U.S. Tax Cuts and Jobs Act in accordance with Accounting Standard Codification Topic 740 (Income Taxes).

 

Asset Impairments

In 2018, the corporation assessed the carrying values of certain assets, largely located in North America and with limited development potential. This review resulted in an after-tax impairment charge of $429 million in the fourth quarter. In 2017, the corporation ceased development planning activities for certain non-producing assets outside the U.S. and recognized impairments for certain U.S. asset groups which resulted in a fourth quarter 2017 after-tax charge of $1,294 million.

 

References to the resource base and other quantities of oil, natural gas or condensate may include amounts that are not yet classified as “proved reserves” under SEC definitions, but which we believe will likely be moved into the “proved reserves” category and produced in the future. The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Further information on ExxonMobil’s frequently used financial and operating measures and other terms including “Cash flow from operations and asset sales”, and “Total taxes including sales‑based taxes” is contained under the heading “Frequently Used Terms” available through the “Investors” section of our website at exxonmobil.com.

 

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, Downstream, Chemical and Corporate and financing segment earnings, and earnings per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

 

EHC is a registered trademark of Exxon Mobil Corporation.

 

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.

  

 

</BCLPAGE>10


 

 

Estimated Key Financial and Operating Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment I

Exxon Mobil Corporation

Fourth Quarter 2018

(millions of dollars, unless noted)

 

 

 

 

 

 

 

Third

 

 

 

 

 

Fourth Quarter

 

Quarter

 

Twelve Months

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

Earnings / Earnings Per Share

 

 

 

 

 

 

 

 

 

Total revenues and other income

71,895

 

66,515

 

76,605

 

290,212

 

244,363

Total costs and other deductions

63,774

 

63,498

 

67,525

 

259,259

 

225,689

Income before income taxes

8,121

 

3,017

 

9,080

 

30,953

 

18,674

 

Income taxes

1,915

 

(5,392)

 

2,634

 

9,532

 

(1,174)

Net income including noncontrolling interests

6,206

 

8,409

 

6,446

 

21,421

 

19,848

 

Net income attributable to noncontrolling interests

206

 

29

 

206

 

581

 

138

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

6,000

 

8,380

 

6,240

 

20,840

 

19,710

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

1.41

 

1.97

 

1.46

 

4.88

 

4.63

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

- assuming dilution (dollars)

1.41

 

1.97

 

1.46

 

4.88

 

4.63

 

 

 

 

 

 

 

 

 

 

 

 

Exploration expenses, including dry holes

555

 

703

 

292

 

1,466

 

1,790

 

 

 

 

 

 

 

 

 

 

 

 

Other Financial Data

 

 

 

 

 

 

 

 

 

Dividends on common stock

  

 

  

 

 

 

 

 

 

 

Total

3,502

 

3,289

 

3,503

 

13,798

 

13,001

 

Per common share (dollars)

0.82

 

0.77

 

0.82

 

3.23

 

3.06

 

 

 

 

 

 

 

 

 

 

 

 

Millions of common shares outstanding

 

 

 

 

 

 

 

 

 

 

At period end

 

 

 

 

 

 

4,237

 

4,239

 

Average - assuming dilution  

4,270

 

4,270

 

4,271

 

4,270

 

4,256

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of equity at period end

 

 

 

 

 

 

191,794

 

187,688

ExxonMobil share of capital employed at period end

 

 

 

 

 

 

232,280

 

232,467

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

1,915

 

(5,392)

 

2,634

 

9,532

 

(1,174)

Total other taxes and duties

8,473

 

8,583

 

8,939

 

35,230

 

32,459

 

Total taxes

10,388

 

3,191

 

11,573

 

44,762

 

31,285

Sales-based taxes

5,444

 

5,245

 

5,518

 

21,750

 

19,725

 

Total taxes including sales-based taxes

15,832

 

8,436

 

17,091

 

66,512

 

51,010

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of income taxes of

 

 

 

 

 

 

 

 

 

equity companies

992

 

500

 

755

 

3,142

 

2,228

 

 

 

 

 

 

 

 

 

 

 

 

</BCLPAGE>11


 

 

 

 

 

 

 

 

 

 

 

Attachment II

 

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Fourth Quarter 2018

 

 

 

 

 

 

 

 

 

Third

 

 

 

 

 

 

Fourth Quarter

 

Quarter

 

Twelve Months

 

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

Net production of crude oil, natural gas

 

 

 

 

 

 

 

 

 

liquids, bitumen and synthetic oil,

 

 

 

 

 

 

 

 

 

thousand barrels per day (kbd)

 

 

 

 

 

 

 

 

 

 

 

United States

583

 

525

 

555

 

551

 

514

 

 

Canada / Other Americas

474

 

426

 

454

 

438

 

412

 

 

Europe

122

 

155

 

127

 

132

 

182

 

 

Africa

376

 

403

 

387

 

387

 

423

 

 

Asia

745

 

690

 

706

 

711

 

698

 

 

Australia / Oceania

48

 

52

 

57

 

47

 

54

 

 

 

Worldwide

2,348

 

2,251

 

2,286

 

2,266

 

2,283

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas production available for sale,

 

 

 

 

 

 

 

 

 

million cubic feet per day (mcfd)

 

 

 

 

 

 

 

 

 

 

 

United States

2,581

 

2,753

 

2,549

 

2,574

 

2,936

 

 

Canada / Other Americas

247

 

240

 

224

 

227

 

218

 

 

Europe

1,943

 

2,266

 

1,004

 

1,653

 

1,948

 

 

Africa

16

 

6

 

16

 

13

 

5

 

 

Asia

3,804

 

3,855

 

3,685

 

3,613

 

3,794

 

 

Australia / Oceania

1,383

 

1,321

 

1,523

 

1,325

 

1,310

 

 

 

Worldwide

9,974

 

10,441

 

9,001

 

9,405

 

10,211

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil-equivalent production (koebd)1

4,010

 

3,991

 

3,786

 

3,833

 

3,985

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

</BCLPAGE>12


 

 

 

 

 

 

 

 

 

 

Attachment III

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Fourth Quarter 2018

 

 

 

 

 

 

 

 

Third

 

 

 

 

 

Fourth Quarter

 

Quarter

 

Twelve Months

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

Refinery throughput (kbd)

 

 

 

 

 

 

 

 

 

 

United States

1,661

 

1,379

 

1,644

 

1,588

 

1,508

 

Canada

408

 

391

 

388

 

392

 

383

 

Europe

1,366

 

1,509

 

1,446

 

1,422

 

1,510

 

Asia Pacific

670

 

728

 

720

 

706

 

690

 

Other

193

 

200

 

194

 

164

 

200

 

 

Worldwide

4,298

 

4,207

 

4,392

 

4,272

 

4,291

 

 

 

 

 

 

 

 

 

 

 

Petroleum product sales (kbd)

 

 

 

 

 

 

 

 

 

 

United States

2,230

 

2,209

 

2,267

 

2,210

 

2,190

 

Canada

516

 

501

 

527

 

510

 

499

 

Europe

1,474

 

1,589

 

1,582

 

1,556

 

1,597

 

Asia Pacific

825

 

819

 

824

 

815

 

757

 

Other

450

 

506

 

416

 

421

 

487

 

 

Worldwide

5,495

 

5,624

 

5,616

 

5,512

 

5,530

 

 

 

 

 

 

 

 

 

 

 

 

Gasolines, naphthas

2,183

 

2,353

 

2,255

 

2,217

 

2,262

 

Heating oils, kerosene, diesel

1,915

 

1,878

 

1,837

 

1,840

 

1,850

 

Aviation fuels

376

 

393

 

430

 

402

 

382

 

Heavy fuels

387

 

370

 

411

 

395

 

371

 

Specialty products

634

 

630

 

683

 

658

 

665

 

 

Worldwide

5,495

 

5,624

 

5,616

 

5,512

 

5,530

 

 

 

 

 

 

 

 

 

 

Chemical prime product sales,

 

 

 

 

 

 

 

 

 

thousand metric tons (kt)

 

 

 

 

 

 

 

 

 

 

United States

2,577

 

2,399

 

2,445

 

9,824

 

9,307

 

Non-U.S.

4,095

 

4,383

 

4,232

 

17,045

 

16,113

 

 

Worldwide

6,672

 

6,782

 

6,677

 

26,869

 

25,420

 

 

 

 

 

 

</BCLPAGE>13


 

 

 

 

 

 

 

 

 

 

Attachment IV

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Fourth Quarter 2018

(millions of dollars)

 

 

 

 

 

 

 

Third

 

 

 

 

 

Fourth Quarter

 

Quarter

 

Twelve Months

 

 

 

2018

 

2017

 

2018

 

2018

 

2017

Capital and Exploration Expenditures

 

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

United States

2,630

 

1,158

 

2,040

 

7,670

 

3,716

 

 

Non-U.S.

3,620

 

6,457

 

3,290

 

12,524

 

12,979

 

 

Total

6,250

 

7,615

 

5,330

 

20,194

 

16,695

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

United States

325

 

264

 

297

 

1,186

 

823

 

 

Non-U.S.

541

 

518

 

422

 

2,243

 

1,701

 

 

Total

866

 

782

 

719

 

3,429

 

2,524

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

United States

579

 

389

 

411

 

1,747

 

1,583

 

 

Non-U.S.

132

 

167

 

115

 

488

 

2,188

 

 

Total

711

 

556

 

526

 

2,235

 

3,771

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

16

 

46

 

11

 

65

 

90

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide

7,843

 

8,999

 

6,586

 

25,923

 

23,080

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operations and asset sales

 

 

 

 

 

 

Net cash provided by operating activities

 

 

 

 

 

 

 

 

 

(U.S. GAAP)

8,607

 

7,411

 

11,108

 

36,014

 

30,066

Proceeds associated with asset sales

884

 

1,408

 

1,491

 

4,123

 

3,103

Cash flow from operations and asset sales

9,491

 

8,819

 

12,599

 

40,137

 

33,169

 

 

 

 

 

 

 

 

 

 

 

 

</BCLPAGE>14


 

 

 

 

 

 

 

 

 

Attachment V

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Earnings

 

 

 

 

 

 

$ Millions

 

$ Per Common Share1

 

 

 

 

 

 

 

 

 

 

 

2014

 

 

 

 

 

 

 

First Quarter

 

9,100

 

 

2.10

 

 

Second Quarter

 

8,780

 

 

2.05

 

 

Third Quarter

 

8,070

 

 

1.89

 

 

Fourth Quarter

 

6,570

 

 

1.56

 

 

 

 

Year

 

32,520

 

 

7.60

 

 

 

 

 

 

 

 

 

 

 

 

2015

 

 

 

 

 

 

 

First Quarter

 

4,940

 

 

1.17

 

 

Second Quarter

 

4,190

 

 

1.00

 

 

Third Quarter

 

4,240

 

 

1.01

 

 

Fourth Quarter

 

2,780

 

 

0.67

 

 

 

 

Year

 

16,150

 

 

3.85

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

First Quarter

 

1,810

 

 

0.43

 

 

Second Quarter

 

1,700

 

 

0.41

 

 

Third Quarter

 

2,650

 

 

0.63

 

 

Fourth Quarter

 

1,680

 

 

0.41

 

 

 

 

Year

 

7,840

 

 

1.88

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

First Quarter

 

4,010

 

 

0.95

 

 

Second Quarter

 

3,350

 

 

0.78

 

 

Third Quarter

 

3,970

 

 

0.93

 

 

Fourth Quarter

 

8,380

 

 

1.97

 

 

 

 

Year

 

19,710

 

 

4.63

 

 

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

First Quarter

 

4,650

 

 

1.09

 

 

Second Quarter

 

3,950

 

 

0.92

 

 

Third Quarter

 

6,240

 

 

1.46

 

 

Fourth Quarter

 

6,000

 

 

1.41

 

 

 

 

Year

 

20,840

 

 

4.88

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

</BCLPAGE>15