10-KPeriod: FY2014

EXXON MOBIL CORP Annual Report, Year Ended Dec 31, 2014

Filed February 25, 2015For Securities:XOM

Summary

Exxon Mobil Corporation's 2014 Form 10-K details a year of robust operations within the energy sector, marked by significant capital expenditures and a focus on long-term strategic positioning. The company demonstrated resilience in a volatile commodity market, with upstream earnings showing a modest increase compared to the prior year. Downstream and Chemical segments also contributed to financial performance, though margins in these areas faced competitive pressures. ExxonMobil continued its substantial investment in exploration and development projects globally, underscoring its commitment to meeting future energy demand. The company's financial strength, characterized by a solid balance sheet and strong cash flow generation, provided a stable foundation for its operations and shareholder returns amidst evolving market conditions and regulatory landscapes, including those related to climate change.

Financial Highlights

47 data points
Beta

Revenue

$394.11B

Net Income

$32.52B

8.3% Net Margin

EPS (Diluted)

$7.60

Total Assets

$349.49B

Cash & Equivalents

$4.62B

Free Cash Flow

$12.16B

Financial Statements
Beta
Revenue$394.11B
R&D Expenses$971.00M
SG&A Expenses$12.60B
Operating Expenses$360.31B
Interest Expense$286.00M
Net Income$32.52B
EPS (Basic)$7.60
EPS (Diluted)$7.60
Shares Outstanding (Basic)4.28B

Key Highlights

  • 1ExxonMobil reported robust operational performance in 2014, navigating a volatile commodity market with a continued focus on long-term strategic investments.
  • 2Upstream segment earnings saw a modest increase, driven by a favorable volume mix and asset sales, despite lower commodity prices.
  • 3The company continued substantial capital and exploration expenditures, totaling $38.5 billion, with a significant portion directed towards Upstream projects in North America, Canada, and Australia.
  • 4Downstream segment earnings decreased year-over-year, influenced by competitive refining margins, while the Chemical segment showed improved earnings driven by higher commodity-driven margins and increased demand.
  • 5ExxonMobil maintained a strong financial position, with cash flow from operations and asset sales of $49.2 billion and a significant portion of its asset base focused on developing future energy supplies.
  • 6The company actively managed its asset portfolio, including divesting underperforming assets and investing in projects that capitalize on integration, technology, and market growth opportunities.
  • 7The report highlights ongoing efforts in environmental stewardship, with approximately $6.2 billion spent on environmental expenditures in 2014.

Frequently Asked Questions

In 2014, ExxonMobil generated $32.5 billion in net income attributable to ExxonMobil. Sales and other operating revenue were $394.1 billion. The company maintained a strong financial position, with cash flow from operations and asset sales totaling $49.2 billion, underscoring its ability to fund its extensive capital expenditure program and return value to shareholders.

The Upstream segment reported earnings of $27.5 billion, a slight increase from 2013. The Downstream segment earned $3.0 billion, a decrease from the previous year primarily due to lower margins. The Chemical segment's earnings improved to $4.3 billion, driven by higher commodity-driven margins and increased demand. Corporate and financing activities resulted in a net expense of $2.4 billion.

ExxonMobil invested $38.5 billion in capital and exploration expenditures in 2014. The majority of this spending, $32.7 billion, was directed towards the Upstream segment, supporting projects in areas like the U.S. Gulf of Mexico, U.S. onshore drilling, Russia, Canada, and Australia. Investments also continued in Downstream and Chemical segment expansions and upgrades.

Key risks include volatility in oil, gas, and petrochemical prices due to supply and demand fluctuations, economic conditions impacting energy demand, political and regulatory developments in operating regions, environmental regulations (including those related to climate change and greenhouse gas emissions), operational risks, and the company's ability to successfully manage complex, long-term capital-intensive projects. The company also faces risks related to cybersecurity and natural disasters.