10-QPeriod: Q1 FY2014

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2014

Filed May 7, 2014For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported its first-quarter 2014 financial results, demonstrating a slight decrease in net income attributable to ExxonMobil to $9.1 billion, down from $9.5 billion in the first quarter of 2013. This reduction was primarily driven by lower earnings in the Downstream and Chemical segments, although these were partially offset by a strong increase in Upstream earnings. The company generated robust operating cash flow of $15.1 billion, reflecting its core business strength. Capital expenditures were $8.4 billion for the quarter, a decrease from the prior year, partly due to the absence of a significant acquisition in Q1 2013. ExxonMobil continued its commitment to shareholder returns, distributing $5.7 billion through dividends and share repurchases. The company's financial position remained solid, with a debt-to-total capital ratio of 10.5% at the end of the quarter.

Financial Highlights

39 data points
Beta

Net Income

$9.10B

EPS (Diluted)

$2.10

Total Assets

$353.03B

Cash & Equivalents

$5.60B

Free Cash Flow

$7.78B

Financial Statements
Beta
SG&A Expenses$3.13B
Operating Expenses$91.10B
Interest Expense$66.00M
Net Income$9.10B
EPS (Basic)$2.10
EPS (Diluted)$2.10
Shares Outstanding (Basic)4.33B

Key Highlights

  • 1Net income attributable to ExxonMobil for Q1 2014 was $9.1 billion, a 4% decrease from $9.5 billion in Q1 2013.
  • 2Upstream segment earnings increased by 11% to $7.8 billion, driven by higher natural gas realizations and improved production mix.
  • 3Downstream earnings declined significantly by $732 million to $813 million, primarily due to weaker refining margins.
  • 4Chemical segment earnings decreased by $90 million to $1.047 billion, also impacted by weaker margins.
  • 5Operating cash flow remained strong at $15.1 billion, an increase from $13.6 billion in the prior year period.
  • 6Capital and exploration expenditures were $8.4 billion, down 28% from Q1 2013, reflecting reduced acquisition activity.
  • 7Shareholders received $5.7 billion in the quarter through dividends and share repurchases.

Frequently Asked Questions

The primary driver for the decrease in net income was a significant decline in earnings from the Downstream and Chemical segments, largely due to weaker refining and chemical margins. While the Upstream segment showed strong growth, it was not enough to fully offset these declines.

Capital and exploration expenditures for the first quarter of 2014 were $8.4 billion, a decrease of 28% compared to the $11.8 billion spent in the first quarter of 2013. This reduction was largely due to the absence of the significant acquisition of Celtic Exploration Ltd. that occurred in the prior year's quarter.

ExxonMobil continues to prioritize returning capital to shareholders. In the first quarter of 2014, the company distributed a total of $5.7 billion through dividends and share repurchases, the latter aimed at both reducing the number of shares outstanding and offsetting shares issued under employee benefit plans.

The Upstream segment performed strongly, with earnings up 11% to $7.8 billion, benefiting from higher natural gas prices and production mix. The Downstream segment saw a substantial earnings decrease to $813 million due to weaker refining margins. The Chemical segment also experienced a decline in earnings to $1.047 billion, attributed to weaker margins as well. Corporate and financing expenses increased due to the absence of favorable tax impacts seen in the prior year.