10-QPeriod: Q3 FY2014

EXXON MOBIL CORP Quarterly Report for Q3 Ended Sep 30, 2014

Filed November 5, 2014For Securities:XOM

Summary

ExxonMobil Corporation's third quarter 2014 report shows a modest increase in net income attributable to ExxonMobil, reaching $8.07 billion, up from $7.87 billion in the same period last year. This growth was driven by stronger performance in the Downstream and Chemical segments, benefiting from higher margins and improved operations, which helped offset a decline in Upstream realizations. For the first nine months of 2014, net income grew to $25.95 billion from $24.23 billion in the prior year. The company maintained a strong operational cash flow, providing $37.7 billion in the first nine months of 2014, which supported significant shareholder distributions through dividends and share repurchases totaling $17.6 billion. Capital and exploration expenditures were reduced compared to the previous year, reflecting a more focused investment strategy.

Financial Highlights

40 data points
Beta

Net Income

$8.07B

EPS (Diluted)

$1.89

Total Assets

$352.76B

Cash & Equivalents

$4.96B

Free Cash Flow

$4.20B

Financial Statements
Beta
SG&A Expenses$3.17B
Operating Expenses$93.72B
Interest Expense$88.00M
Net Income$8.07B
EPS (Basic)$1.89
EPS (Diluted)$1.89
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1Net income attributable to ExxonMobil for the third quarter of 2014 was $8.07 billion, an increase of 2.5% year-over-year.
  • 2Earnings per diluted share for the third quarter were $1.89, up from $1.79 in the prior year's third quarter.
  • 3The Downstream and Chemical segments showed improved earnings driven by higher margins, while the Upstream segment experienced lower realizations.
  • 4Cash flow from operating activities for the nine months ended September 30, 2014, was $37.7 billion, an increase of $3.0 billion from the prior year.
  • 5Capital and exploration expenditures for the first nine months of 2014 totaled $28.1 billion, a decrease of 14% compared to the same period in 2013, partly due to the absence of a major acquisition.
  • 6ExxonMobil distributed $17.6 billion to shareholders through dividends and share repurchases during the first nine months of 2014.
  • 7The company's debt to total capital ratio improved to 10.4% at the end of the third quarter of 2014, down from 11.2% at year-end 2013.

Frequently Asked Questions

The increase in net income was primarily driven by improved performance in the Downstream and Chemical segments, which benefited from higher margins and enhanced operational efficiency. These gains helped to offset lower realizations in the Upstream segment.

Capital and exploration expenditures for the first nine months of 2014 decreased by 14% to $28.1 billion compared to the same period in 2013. This reduction was partly due to the absence of a significant acquisition that occurred in the prior year and a general decrease in Upstream spending.

ExxonMobil returned a significant amount of capital to shareholders through dividends and share repurchases. In the first nine months of 2014, total distributions amounted to $17.6 billion, indicating a continued commitment to shareholder returns.

While ExxonMobil is involved in various legal and environmental matters, as detailed in Note 2, management does not believe the ultimate outcome of any currently pending lawsuit will have a material adverse effect on the Corporation's operations, financial condition, or financial statements taken as a whole. Specific cases, such as the arbitration award from Venezuela, are ongoing, but the company does not expect them to have a material impact on its operations or financial condition.