10-QPeriod: Q1 FY2015

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2015

Filed May 6, 2015For Securities:XOM

Summary

ExxonMobil's first quarter 2015 report shows a significant decrease in net income attributable to ExxonMobil, falling to $4.94 billion from $9.10 billion in the same period of 2014. This decline is primarily driven by lower crude oil and natural gas realizations, impacting the Upstream segment significantly, which recorded earnings of $2.86 billion compared to $7.78 billion year-over-year. Despite the drop in earnings, the company's Downstream segment showed a strong performance, with earnings increasing to $1.67 billion from $0.81 billion, driven by improved margins. Total revenues and other income also saw a substantial decrease, dropping to $67.62 billion from $106.33 billion in Q1 2014, reflecting the challenging commodity price environment. Capital and exploration expenditures were $7.7 billion, down 9% from the prior year, indicating a measured approach to investment. The company also reported a notable increase in long-term debt, primarily due to an $8.0 billion issuance during the quarter. Overall, the report highlights ExxonMobil's resilience in navigating lower commodity prices, leveraging its integrated business model to offset some of the upstream weakness with downstream strength.

Financial Highlights

41 data points
Beta

Net Income

$4.94B

EPS (Diluted)

$1.17

Total Assets

$342.96B

Cash & Equivalents

$5.18B

Free Cash Flow

$1.15B

Financial Statements
Beta
SG&A Expenses$2.71B
Operating Expenses$60.98B
Interest Expense$88.00M
Net Income$4.94B
EPS (Basic)$1.17
EPS (Diluted)$1.17
Shares Outstanding (Basic)4.21B

Key Highlights

  • 1Net income attributable to ExxonMobil for Q1 2015 was $4.94 billion, a decrease from $9.10 billion in Q1 2014, largely due to lower commodity prices.
  • 2Upstream earnings declined significantly to $2.86 billion from $7.78 billion year-over-year, primarily driven by lower crude oil and natural gas realizations.
  • 3Downstream earnings showed robust growth, increasing to $1.67 billion from $0.81 billion, supported by stronger margins.
  • 4Total revenues and other income decreased to $67.62 billion from $106.33 billion, reflecting a lower commodity price environment.
  • 5Capital and exploration expenditures were $7.7 billion, a 9% decrease compared to Q1 2014, indicating disciplined investment.
  • 6The company issued $8.0 billion in long-term debt during the quarter, increasing total debt to $32.8 billion.
  • 7Earnings per diluted share were $1.17, down from $2.10 in the prior year's comparable quarter.

Frequently Asked Questions

The primary reason for the significant drop in net income is the substantial decrease in crude oil and natural gas prices, which directly impacted the company's Upstream segment earnings. Lower realizations led to a sharp decline in profitability for this core business.

The Downstream segment performed strongly, with earnings increasing to $1.67 billion from $0.81 billion in the prior year's quarter. This improvement was driven by stronger margins, which helped to offset some of the weakness experienced in the Upstream segment.

Capital and exploration expenditures were $7.7 billion for the first quarter of 2015, a 9% decrease from the same period in 2014. This reflects a more cautious approach to investment in light of the prevailing commodity price environment, although the company anticipates an average annual investment profile of about $34 billion for the next few years.

Yes, ExxonMobil issued $8.0 billion of long-term debt in the first quarter of 2015. This led to an increase in total debt to $32.8 billion from $29.1 billion at the end of 2014. The debt-to-total-capital ratio increased to 15.6% from 13.9%.