IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM):
Results Summary | |||||
Dollars in millions (except per share data) | 1Q23 | 4Q22 | Change
vs 4Q22 |
1Q22 | Change
vs 1Q22 |
Earnings (U.S. GAAP) | 11,430 | 12,750 | -1,320 | 5,480 | +5,950 |
Earnings Excluding Identified Items (non-GAAP) | 11,618 | 14,035 | -2,417 | 8,833 | +2,785 |
Earnings Per Common Share ¹ | 2.79 | 3.09 | -0.30 | 1.28 | +1.51 |
Earnings Excluding Identified Items Per Common Share ¹ (non-GAAP) | 2.83 | 3.40 | -0.57 | 2.07 | +0.76 |
Capital and Exploration Expenditures | 6,380 | 7,463 | -1,083 | 4,904 | +1,476 |
¹ Assuming dilution. |
Exxon Mobil Corporation today announced first-quarter 2023 earnings of $11.4 billion, or $2.79 per share assuming dilution. Results included unfavorable identified items of approximately $200 million associated with additional European taxes on the energy sector. Capital and exploration expenditures were $6.4 billion, on track to meet the company’s full year guidance of $23 billion to $25 billion.
“Our people’s hard work to execute on our strategic priorities delivered a record first quarter following a record year,” said Darren Woods, chairman and chief executive officer.
“We are growing value by increasing production from our advantaged assets to meet global demand. At the same time, our Low Carbon Solutions team is rapidly growing this new business with an additional carbon capture, transportation and storage agreement that underscores the company’s growing momentum in providing industrial customers with large-scale emission reduction solutions.”
Financial Highlights
Shareholder Distributions
Reducing Emissions
Carbon Capture and Storage2
1 Scope 1 and 2 greenhouse gas emission estimates from ExxonMobil’s operated assets (2022, compared to 2016 levels); the company is working to continuously improve its performance and methods to detect, measure and address greenhouse gas emissions.
2 The emission reduction outcome of this project 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
. | ||||
EARNINGS AND VOLUME SUMMARY BY SEGMENT |
Upstream | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Earnings/(Loss) (U.S. GAAP) | |||
United States | 1,632 | 2,493 | 2,376 |
Non-U.S. | 4,825 | 5,708 | 2,112 |
Worldwide | 6,457 | 8,201 | 4,488 |
Earnings/(Loss) Excluding Identified Items (non-GAAP) | |||
United States | 1,632 | 2,493 | 2,376 |
Non-U.S. | 4,983 | 6,269 | 5,367 |
Worldwide | 6,615 | 8,762 | 7,743 |
Production (koebd) | 3,831 | 3,822 | 3,675 |
Energy Products | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Earnings/(Loss) (U.S. GAAP) | |||
United States | 1,910 | 2,188 | 489 |
Non-U.S. | 2,273 | 1,882 | (684) |
Worldwide | 4,183 | 4,070 | (196) |
Earnings/(Loss) Excluding Identified Items (non-GAAP) | |||
United States | 1,910 | 2,246 | 489 |
Non-U.S. | 2,303 | 2,508 | (684) |
Worldwide | 4,213 | 4,754 | (196) |
Energy Products Sales (kbd) | 5,277 | 5,423 | 5,111 |
1 Based on ExxonMobil estimates using historical benchmarking results from Solomon Associates
Chemical Products | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Earnings/(Loss) (U.S. GAAP) | |||
United States | 324 | 298 | 770 |
Non-U.S. | 47 | (48) | 636 |
Worldwide | 371 | 250 | 1,405 |
Earnings/(Loss) Excluding Identified Items (non-GAAP) | |||
United States | 324 | 298 | 770 |
Non-U.S. | 47 | (48) | 636 |
Worldwide | 371 | 250 | 1,405 |
Chemical Products Sales (kt) | 4,649 | 4,658 | 5,018 |
Specialty Products | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Earnings/(Loss) (U.S. GAAP) | |||
United States | 451 | 406 | 246 |
Non-U.S. | 323 | 354 | 230 |
Worldwide | 774 | 760 | 476 |
Earnings/(Loss) Excluding Identified Items (non-GAAP) | |||
United States | 451 | 406 | 246 |
Non-U.S. | 323 | 394 | 230 |
Worldwide | 774 | 800 | 476 |
Specialty Product Sales (kt) | 1,940 | 1,787 | 2,006 |
Corporate and Financing | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Earnings/(Loss) (U.S. GAAP) | (355) | (531) | (694) |
Earnings/(Loss) Excluding Identified Items (non-GAAP) | (355) | (531) | (596) |
. | ||||
CASH FLOW FROM OPERATIONS AND ASSET SALES EXCLUDING WORKING CAPITAL |
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Net income/(loss) including noncontrolling interests | 11,843 | 13,055 | 5,750 |
Depreciation and depletion (includes impairments) | 4,244 | 5,064 | 8,883 |
Changes in operational working capital, excluding cash and debt | (302) | (200) | 1,086 |
Other | 556 | (298) | (931) |
Cash Flow from Operating Activities (U.S. GAAP) | 16,341 | 17,621 | 14,788 |
Proceeds from asset sales and returns of investments | 854 | 1,333 | 293 |
Cash Flow from Operations and Asset Sales (non-GAAP) | 17,195 | 18,954 | 15,081 |
Changes in operational working capital, excluding cash and debt | 302 | 200 | (1,086) |
Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP) | 17,497 | 19,154 | 13,995 |
FREE CASH FLOW | |||
Dollars in millions (unless otherwise noted) | 1Q23 | 4Q22 | 1Q22 |
Cash Flow from Operating Activities (U.S. GAAP) | 16,341 | 17,621 | 14,788 |
Additions to property, plant and equipment | (5,412) | (5,783) | (3,911) |
Additional investments and advances | (445) | (2,175) | (417) |
Other investing activities including collection of advances | 78 | 1,270 | 90 |
Proceeds from asset sales and returns of investments | 854 | 1,333 | 293 |
Free Cash Flow (non-GAAP) | 11,416 | 12,266 | 10,843 |
CALCULATION OF STRUCTURAL COST SAVINGS | ||||||
Dollars in billions (unless otherwise noted) | Twelve Months
Ended December 31, |
Three Months
Ended March 31, |
||||
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 | 10.2 | 9.4 | ||
Selling, general and administrative expenses | 11.4 | 10.1 | 2.4 | 2.4 | ||
Depreciation and depletion (includes impairments) | 19.0 | 24.0 | 8.9 | 4.2 | ||
Exploration expenses, including dry holes | 1.3 | 1.0 | 0.2 | 0.1 | ||
Non-service pension and postretirement benefit expense | 1.2 | 0.5 | 0.1 | 0.2 | ||
Subtotal | 69.7 | 78.2 | 21.8 | 16.4 | ||
ExxonMobil’s share of equity company expenses (non-GAAP) | 9.1 | 13.0 | 2.6 | 2.7 | ||
Total adjusted operating costs (non-GAAP) | 78.8 | 91.2 | 24.4 | 19.1 | ||
Total adjusted operating costs (non-GAAP) | 78.8 | 91.2 | 24.4 | 19.1 | ||
Less: | ||||||
Depreciation and depletion (includes impairments) | 19.0 | 24.0 | 8.9 | 4.2 | ||
Non-service pension and postretirement benefit expense | 1.2 | 0.5 | 0.1 | 0.2 | ||
Other adjustments (includes equity company depreciation
and depletion) |
3.6 | 3.5 | 0.8 | 0.8 | ||
Total cash operating expenses (cash opex) (non-GAAP) | 55.0 | 63.2 | 14.6 | 13.9 | ||
Energy and production taxes (non-GAAP) | 11.0 | 23.8 | 5.2 | 4.3 | ||
Total cash operating expenses (cash opex) excluding energy and production taxes (non-GAAP) | 44.0 | 39.4 | 9.4 | 9.6 | ||
Change
vs 2019 |
Change
vs 1Q22 |
Estimated Cumulative vs
2019 |
||||
Total cash operating expenses (cash opex) excluding energy and production taxes (non-GAAP) | -5 | +0.2 | ||||
Market | +3 | +0.2 | ||||
Activity /Other | -1 | +0.3 | ||||
Structural Savings | -7 | -0.3 | -7.2 |
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 $7.2 billion, which included an additional $0.3 billion in the first three 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. 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 April 28, 2023. To listen to the event or access an archived replay, please visit www.exxonmobil.com.
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; 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 investments or divestments and satisfaction of applicable conditions to closing, including 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 8.
This press release also includes 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 8.
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.
Contacts
Media Relations
972-940-6007