Summary
ExxonMobil Corporation's (XOM) Q3 2016 10-Q filing reveals a challenging operating environment, with net income attributable to ExxonMobil declining to $2.65 billion for the third quarter, down from $4.24 billion in the same period of 2015. This decline was primarily driven by lower commodity prices and refining margins across its Upstream and Downstream segments, despite stable oil-equivalent production. Capital and exploration expenditures were significantly reduced year-over-year, reflecting a strategic focus on efficiency and value creation amidst prevailing market conditions. The company continued its commitment to shareholder returns by distributing $9.3 billion in dividends during the first nine months of the year. Looking ahead, ExxonMobil is navigating a complex energy landscape, with continued focus on cost efficiencies, strategic investments, and managing its asset portfolio. The company also announced a significant acquisition of InterOil Corporation for over $2.5 billion, subject to closing conditions, aimed at expanding its resource base. While the company anticipates potential impacts on reported proved reserves due to low commodity prices, it maintains that this will not affect the operational outlook or future production volumes.
Financial Highlights
40 data points| SG&A Expenses | $2.74B |
| Operating Expenses | $55.45B |
| Interest Expense | $106.00M |
| Net Income | $2.65B |
| EPS (Basic) | $0.63 |
| EPS (Diluted) | $0.63 |
| Shares Outstanding (Basic) | 4.18B |
Key Highlights
- 1Net income attributable to ExxonMobil for Q3 2016 was $2.65 billion, a decrease from $4.24 billion in Q3 2015, primarily due to lower commodity prices and refining margins.
- 2Earnings per diluted share for Q3 2016 were $0.63, down from $1.01 in Q3 2015.
- 3Capital and exploration expenditures for the first nine months of 2016 were $14.5 billion, a significant decrease of 39% from $23.6 billion in the same period of 2015, reflecting a focus on efficiency.
- 4Oil-equivalent production remained stable year-over-year, with liquids production up 2.6% and natural gas down 4.4% for the first nine months of 2016.
- 5The company distributed $9.3 billion in dividends to shareholders during the first nine months of 2016.
- 6ExxonMobil announced an agreement to acquire InterOil Corporation for over $2.5 billion, subject to closing conditions, to expand its resource base.
- 7The company's debt-to-total capital ratio increased to 20.7% at the end of Q3 2016 from 18.0% at year-end 2015, largely due to a significant issuance of long-term debt in Q1 2016.