01—Abstract
Summary
Summary of the 10-K filed February 26, 2020. Cited figures are marked; the original filing is the authoritative source.
ExxonMobil's 2019 10-K filing shows a significant year-over-year decline in net income, primarily driven by lower commodity prices and weaker refining margins.
Despite these challenges, the company maintained substantial capital expenditures, investing heavily in upstream projects, particularly in the Americas and Guyana. The company's long-term outlook remains focused on growth in energy demand, with a strategic emphasis on natural gas and developing unconventional resources.
ExxonMobil continues to highlight its integrated business model, financial strength, and disciplined investment approach as key competitive advantages in navigating the dynamic energy landscape. The company also detailed its extensive oil and gas reserves, production data, and operational capacities across its upstream, downstream, and chemical segments.
02—Key points
Key Highlights
- Net income attributable to ExxonMobil decreased to $14.34 billion in 2019 from $20.84 billion in 2018, impacted by lower realizations and refining margins.
- Upstream earnings saw a slight increase to $14.44 billion, benefiting from favorable volume and mix effects and a gain from asset divestments, despite lower overall realizations.
- Downstream earnings significantly declined to $2.32 billion from $6.01 billion in 2018, primarily due to weaker refining margins and higher expenses.
- Chemical segment earnings dropped sharply to $592 million from $3.35 billion in 2018, largely attributed to weaker margins and increased expenses related to new assets.
- Capital and exploration expenditures totaled $31.1 billion in 2019, with a significant portion directed towards upstream projects, including growth in the U.S. Permian Basin and key developments in Guyana.
- Total proved liquids reserves remained robust at approximately 14.6 billion barrels, with a significant portion (about 34%) classified as proved undeveloped.
- The company maintained a strong financial position, with debt-to-capital ratios of 19.1% in 2019, supported by significant cash flow from operations.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2019filed February 26, 2020Financial Statements
FY2019 against FY2018
| Line item | FY2019FY2018 | Change |
|---|---|---|
| Revenue | $255.58B$279.33B | −8.5% |
| R&D Expenses | $1.21B$1.12B | +8.8% |
| SG&A Expenses | $11.40B$11.48B | −0.7% |
| Operating Expenses | $244.88B$259.26B | −5.5% |
| Interest Expense | $830.00M$766.00M | +8.4% |
| Net Income | $14.34B$20.84B | −31.2% |
| EPS (Basic) | $3.36$4.88 | −31.1% |
| EPS (Diluted) | $3.36$4.88 | −31.1% |
| Shares Outstanding (Basic) | 4.27B4.27B | 0.0% |
05—Questions
Frequently Asked Questions
What was ExxonMobil's financial performance in 2019 compared to 2018?
ExxonMobil's net income attributable to ExxonMobil decreased to $14.34 billion in 2019, down from $20.84 billion in 2018. This decline was primarily driven by lower earnings in the Downstream and Chemical segments due to weaker margins and increased expenses, partially offset by a slight increase in Upstream earnings.
How did ExxonMobil's capital and exploration expenditures trend in 2019?
Capital and exploration expenditures totaled $31.1 billion in 2019, an increase from $25.9 billion in 2018. The majority of these investments were directed towards the Upstream segment, with significant allocations to growth projects in the U.S. Permian Basin and key developments in Guyana.
What is ExxonMobil's outlook for global energy demand and its strategy to meet it?
ExxonMobil anticipates continued growth in global energy demand through 2040, driven by population growth and rising living standards, particularly in developing countries. Its strategy focuses on developing a diverse portfolio of oil and gas resources, with an increasing emphasis on natural gas and unconventional sources, while also investing in technologies to improve efficiency and reduce emissions.
How does ExxonMobil manage risks related to commodity price volatility?
ExxonMobil manages commodity price risk through a disciplined investment approach, evaluating major investments across a range of price scenarios and maintaining a strong financial position. The company's integrated business model, spanning upstream, downstream, and chemical segments, also helps to mitigate the impact of price volatility on overall earnings.
06—Continue