01—Abstract
Summary
Summary of the 10-K filed February 24, 2016. Cited figures are marked; the original filing is the authoritative source.
ExxonMobil Corporation's 2015 Form 10-K reflects a challenging year for the energy giant, marked by a significant decline in net income attributable to ExxonMobil, dropping to $16.15 billiona from $32.52 billion in 2014.
This decrease was primarily driven by lower crude oil and natural gas prices, which impacted the Upstream segment's earnings significantly, resulting in a loss for the U.S. Upstream operations. Despite these headwinds, the company maintained substantial revenue and operations, with a global workforce of approximately 73,500 employees. ExxonMobil continued its commitment to long-term investments, including capital expenditures of $31.1 billionb, focusing on growth opportunities across its Upstream, Downstream, and Chemical segments, particularly in areas like North America, Canada, and Australia.
The company's strategic focus remained on maintaining financial strength, disciplined capital investment, and operational efficiency. Despite the commodity price downturn, ExxonMobil's integrated business model and diversified operations provided a degree of resilience. The report also highlights the company's ongoing efforts in environmental stewardship and its preparedness for future energy demands, emphasizing its long-term outlook for global energy consumption, with projected growth driven by developing economies and an increasing demand for electricity and transportation fuels.
02—Key points
Key Highlights
- Net income attributable to ExxonMobil decreased by nearly 50% to $16.15 billion in 2015, down from $32.52 billion in 2014, primarily due to lower commodity prices.
- Upstream segment earnings significantly declined, with U.S. Upstream operations reporting a loss of $1.08 billion, compared to a profit of $5.20 billion in 2014.
- ExxonMobil reported total capital and exploration expenditures of $31.1 billion for 2015, with a projected $23.2 billion for 2016, indicating continued investment in growth projects.
- The company's production levels remained robust, with oil-equivalent production at 4.1 million barrels per day in 2015, an increase from 4.0 million barrels per day in 2014.
- Long-term debt increased significantly to $19.9 billion from $11.7 billion in 2014, partly due to debt issuance in the first quarter of 2015.
- The company continued its share repurchase program, buying back 48 million shares for $4.0 billion in 2015, while also increasing dividends per common share to $2.88.
- Environmental expenditures for 2015 totaled $5.6 billion, reflecting ongoing efforts to minimize the impact of operations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2015filed February 24, 2016Financial Statements
FY2015 against FY2014
| Line item | FY2015FY2014 | Change |
|---|---|---|
| Revenue | $239.85B$394.11B | −39.1% |
| R&D Expenses | $1.01B$971.00M | +3.8% |
| SG&A Expenses | $11.50B$12.60B | −8.7% |
| Operating Expenses | $227.28B$360.31B | −36.9% |
| Interest Expense | $311.00M$286.00M | +8.7% |
| Net Income | $16.15B$32.52B | −50.3% |
| EPS (Basic) | $3.85$7.60 | −49.3% |
| EPS (Diluted) | $3.85$7.60 | −49.3% |
| Shares Outstanding (Basic) | 4.20B4.28B | −2.0% |
05—Questions
Frequently Asked Questions
What was the primary driver for the significant drop in ExxonMobil's net income in 2015?
The primary driver for the significant drop in ExxonMobil's net income in 2015 was the sharp decline in crude oil and natural gas prices. This directly impacted the Upstream segment's earnings, which is a major contributor to the company's overall profitability.
How did ExxonMobil's capital expenditure plans change for 2016 compared to 2015?
ExxonMobil's capital expenditures were $31.1 billion in 2015 and were projected to decrease to $23.2 billion in 2016. This reduction reflects a strategic adjustment in response to market conditions and the completion of several major projects, while still maintaining significant investment for future growth.
What is the company's outlook for global energy demand in the long term?
ExxonMobil anticipates a continued rise in global energy demand, projecting an increase of about 25 percent from 2014 to 2040, driven by population growth and economic development, particularly in non-OECD countries. The company expects oil to remain the largest energy source, with natural gas being the fastest-growing major fuel source.
How did the company manage its debt levels in 2015?
ExxonMobil increased its long-term debt to $19.9 billion in 2015 from $11.7 billion in 2014, partly due to issuing $8.0 billion in long-term debt. Despite this increase, the company maintained a strong financial position with a debt-to-capital ratio of 18.0%, indicating a continued focus on financial strength and flexibility.
06—Continue