10-QPeriod: Q1 FY2001

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2001

Filed May 14, 2001For Securities:XOM

Summary

ExxonMobil reported a strong first quarter in 2001, with net income rising significantly to $5.0 billion, or $1.45 per share, compared to $3.48 billion, or $1.00 per share, in the prior year period. This robust performance was driven by record earnings in its Upstream segment, fueled by higher natural gas realizations, particularly in the U.S., and improved refining margins in the Downstream segment. The company also saw revenue increase to $57.3 billion from $54.1 billion in the prior year. Despite the strong operational results, the company incurred merger-related expenses, though these were lower than in the previous year. Extraordinary gains from required asset divestitures were also present, albeit at a lower level than in the first quarter of 2000. The company maintained a strong balance sheet with robust cash flows from operations and continued its commitment to returning capital to shareholders through dividends and share repurchases, while also investing in capital and exploration projects.

Key Highlights

  • 1Net income for the first quarter of 2001 was $5.0 billion, a significant increase from $3.48 billion in the same period of 2000.
  • 2Earnings per share (EPS) were $1.45, up from $1.00 in the prior year, reflecting strong operational performance.
  • 3Upstream segment earnings reached a record high, driven by higher natural gas realizations and increased liquids production.
  • 4Downstream segment earnings saw substantial improvement due to stronger refining margins and improved refinery performance.
  • 5Total revenue increased to $57.3 billion from $54.1 billion, indicating solid top-line growth.
  • 6Capital and exploration expenditures increased by 13% to $2.5 billion, reflecting continued investment in growth opportunities.
  • 7The company repurchased $1.44 billion of its common stock during the quarter to offset dilution and reduce outstanding shares.

Frequently Asked Questions

The significant increase in net income was primarily driven by record earnings in the Upstream segment, fueled by higher natural gas realizations, particularly in the U.S., and improved refining margins in the Downstream segment. Increased liquids production also contributed to the strong performance.

Merger-related expenses were recorded in the first quarter of 2001, totaling $90 million after tax, which was lower than the $325 million recorded in the first quarter of 2000. The company also reported extraordinary gains from required asset divestitures, though these were also lower than in the prior year ($40 million in Q1 2001 vs. $455 million in Q1 2000).

ExxonMobil increased its capital and exploration expenditures by 13% to $2.5 billion in the first quarter of 2001 compared to the prior year. The company expects capital and exploration investments to increase by 15-20% in 2001 versus 2000, and by another 10% in 2002.

The company generated strong net cash from operating activities ($8.7 billion in Q1 2001) and used net cash for investing activities ($1.1 billion in Q1 2001). Financing activities used $3.7 billion, including dividends and share repurchases. Total debt decreased slightly, and the debt-to-capital ratio remained healthy at 14.6%.