ExxonMobil 2014 financial results

ExxonMobil Corporation has announced estimated full year 2014 earnings of US$32.5 billion compared with US$32.6 billion a year earlier. Rex W. Tillerson, Chairman and Chief Executive Officer, commented: “ExxonMobil’s results illustrate the value of our proven business model that integrates upstream, downstream, and chemical businesses. Our balanced portfolio uniquely positions ExxonMobil to deliver superior results throughout the commodity price cycle”.

Fourth quarter highlights

• Earnings of US$6.6. billion decreased US$1.8 billion (21%) from the fourth quarter of 2013. Current period results were favourably impacted by approximately US$1 billion of non-cash effects that included US deferred income tax items and the recognition of a favourable arbitration ruling for expropriated Venezuela assets.
• Earnings per share, assuming dilution, were US$1.56, a decrease of 18%.
• Capital and exploration expenditures were US$10.5 billion, up 5% from the fourth quarter of 2013.
• Oil equivalent production decreased 3.8% from the fourth quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 0.7%, with liquids up 3.6% and natural gas down 5.5%.
• Cash flow from operations and asset sales were US$7.7 billion, including proceeds associated with asset sales of US$241 million.
• The corporation distributed US$5.9 billion to shareholders in the fourth quarter of 2014, including US$3 billion in share purchases to reduce shares outstanding.
• Dividends per share of US$0.69 increased 9.5% compared with the fourth quarter of 2013.
• ExxonMobil Canada Ltd., with Suncor Energy Inc. and ConocoPhillips Canada Resources Corporation, emerged as the high bidder on all three block sought offshore Newfoundland and Labrador, expanding its presence in the Canadian North Atlantic by adding 889 000 net acres to the portfolio. ExxonMobil Canada Ltd. will be the operator of all three blocks and have a 100% interest in one of the three.
• ExxonMobil successfully completed negotiations for a production sharing contract with the government of Cote d’Ivoire on two offshore blocks. ExxonMobil will deploy its extensive expertise in offshore exploration and state of the art technologies to assist Cote d’Ivoire in the development of its natural resources.

Fourth quarter 2014 vs fourth quarter 2013

Upstream earnings were US$5.5 billion in the fourth quarter of 2014, down US$1.3 billion from the fourth quarter of 2013. Lower liquids realizations decreased earnings by US$2.4 billion, while favourable volume effects increased earnings by US$400 million. All other items increased earnings by a net US$640 million, including US deferred income tax effects and the recognition of a favourable arbitration ruling for expropriated Venezuelan assets.

On an oil equivalent basis, production decreased 3.8% from the fourth quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 0.7%

Liquids production totaled 2.2 million bpd, down 53 000 bpd from the fourth quarter of 2013. The Abu Dhabi onshore concession expiry reduced volumes by 133 000 bpd. Excluding this impact, liquids production was up 80 000 bpd as project and work program contributions more than offset field decline and divestment impacts.

Fourth quarter natural gas production was 11.2 billion ft³ /d. Excluding this impact, liquids production was up 80 000 bpd as project and work program contributions more than offset field decline and divestment impacts.

Fourth quarter natural gas production was 11.2 billion ft³/d, down 653 million ft³/d from 2013. Field decline, lower demand, and reduced entitlement volumes were partly offset by higher volumes from Papua New Guinea and work programs.

Earnings from US Upstream operations were US$1.5 billion, US$317 million higher than the fourth quarter of 2013. Non-US Upstream earnings were US$4.0 billion, down US$1.6 billion from the prior year.

Downstream earnings were US$497 million, down from US$419 million from the fourth quarter of 2013. Stronger marketing and non-US refining margins, mostly offset by weaker US refining margins, increased earnings by a net US$40 million. Volume and mix effects increased earnings by US$20 million. All other items, primarily higher expenses and unfavourable tax effects, decreased earnings by US$480 million. Petroleum product sales of 5.8 million bpd were 149 000 bpd lower than the prior year’s fourth quarter.

The US Downstream recorded a loss of US$1 million, down US$598 million from the fourth quarter of 2013. Non-US Downstream, earning of US$498 million were US$179 million higher than the prior year.

Corporate and financing expenses were US$622 million for the fourth quarter of 2014, up US$360 million from the fourth quarter of 2013 due primarily to tax related impacts.

During the fourth quarter of 2014, ExxonMobil purchased 36 million shares of its common stock for the treasury at a cost of US$3.3 billion. These purchases included US$3.0 billion to reduce the number of shares outstanding, with the balance used to acquire shares in conjunction with the company’s benefit plans and programs. Share purchases to reduce shares outstanding are currently anticipated to equal US$1 billion in the first quarter of 2015. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.

Full year 2014 highlights

• Earnings were US$32.5 billion, down US$60 million from 2013.
• Earnings per share, assuming dilution, increased 3% to US$7.60.
• Capital and exploration expenditures were US$38.5 billion, down 9% from 2013.
• Oil equivalent production decreased 4.9% from 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 1.7%.
• Upstream per barrel profitability, excluding noncontrolling interest volumes,  increased 8% from full year 2013 to US$19.47/bbl.
• Cash flow from operations and asset sales was US$49.2 billion, including proceeds associated with asset sales of US$4.0 billion.
• The corporation distributed US$23.6 billion to shareholders in 2014 through dividends and share purchases to reduce shares outstanding.

Adapted from a press release by Emma McAleavey.

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