What was the primary driver of the significant decrease in net income for the first quarter of 2016?

The primary driver for the significant decrease in net income was the substantial decline in Upstream earnings, largely due to lower crude oil and natural gas realizations. Weaker refining margins in the Downstream segment also contributed to the overall decrease.

How did the company manage its capital expenditures in this challenging environment?

ExxonMobil reduced its capital and exploration expenditures by 33% year-over-year, spending $5.1 billion in the first quarter of 2016. The company projected total capital expenditures of $23.2 billion for the full year 2016, indicating a more restrained investment approach in response to market conditions.

What is the company's strategy regarding debt and financing in the current quarter?

In the first quarter of 2016, ExxonMobil issued $12.0 billion of long-term debt, partly to reduce short-term debt. This led to an increase in total debt to $43.1 billion and a slight rise in the debt-to-total capital ratio to 19.5%. The company indicated that internally generated funds are expected to cover the majority of its financial requirements, supplemented by debt.

How did the Chemical segment perform in the first quarter?

The Chemical segment showed a strong performance, with earnings increasing to $1.36 billion from $982 million in the prior year. This improvement was driven by higher margins and favorable volume and mix effects.

XOM 10-Q Quarterly Report Q1 FY2016 — Revenue, Net Income, EPS

Summary

ExxonMobil Corporation's first quarter 2016 results, filed on May 4, 2016, show a significant decrease in net income attributable to ExxonMobil, falling to $1.81 billion from $4.94 billion in the same period of 2015. This decline is primarily driven by lower Upstream and Downstream earnings, impacted by lower commodity prices and weaker refining margins. Despite these challenges, the company reported stronger Chemical segment results and a decrease in corporate and financing expenses. Operationally, ExxonMobil saw an increase in liquid production due to new project capacity, although overall upstream volumes saw a slight increase. The company continues to invest in capital expenditures, with a planned $23.2 billion for 2016, albeit at a reduced pace compared to the previous year. The balance sheet reflects an increase in long-term debt, used in part to reduce short-term debt, and a slight increase in the debt-to-total capital ratio. The company maintained its dividend payments to shareholders, distributing $3.1 billion in the quarter.

Financial Highlights

40 data points

Beta

Net Income

$1.81B

EPS (Diluted)

$0.43

Total Assets

$342.79B

Cash & Equivalents

$4.85B

Free Cash Flow

$211.00M

Financial Statements

Beta

SG&A Expenses	$2.59B
Operating Expenses	$46.98B
Interest Expense	$77.00M
Net Income	$1.81B
EPS (Basic)	$0.43
EPS (Diluted)	$0.43
Shares Outstanding (Basic)	4.18B

Key Highlights

1Net income attributable to ExxonMobil decreased significantly to $1.81 billion in Q1 2016 from $4.94 billion in Q1 2015.
2Upstream earnings experienced a substantial decline, reporting a loss of $76 million compared to earnings of $2.86 billion in the prior year, largely due to lower commodity prices.
3Downstream earnings also fell to $906 million from $1.67 billion, primarily due to weaker refining margins.
4Chemical segment earnings improved, reaching $1.36 billion compared to $982 million in the prior year, driven by better margins and volume.
5Capital and exploration expenditures were reduced by 33% year-over-year, totaling $5.1 billion in Q1 2016, with a full-year projection of $23.2 billion.
6Total debt increased to $43.1 billion from $38.7 billion at year-end 2015, and the debt-to-total capital ratio rose to 19.5% from 18.0%.
7The company distributed $3.1 billion in dividends to shareholders during the quarter.

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2016

Summary

Financial Highlights

Key Highlights

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