10-QPeriod: Q1 FY2017

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2017

Filed May 3, 2017For Securities:XOM

Summary

ExxonMobil's first quarter 2017 results show a significant rebound in profitability, with net income attributable to ExxonMobil more than doubling to $4.01 billion ($0.95 per diluted share) from $1.81 billion ($0.43 per diluted share) in the same period of 2016. This improvement was driven by higher commodity prices, effective cost management, and stronger refining operations. Total revenues and other income saw a substantial increase to $63.29 billion from $48.71 billion year-over-year. The Upstream segment, in particular, showed a remarkable turnaround, reporting earnings of $2.25 billion compared to a loss of $76 million in Q1 2016, largely due to improved liquids and gas realizations. While Downstream earnings also increased, the Chemical segment experienced a decline in earnings. The company also made strategic acquisitions, including InterOil Corporation and Permian Basin properties, which were funded partly by issuing company stock.

Financial Highlights

41 data points
Beta

Revenue

$56.47B

Net Income

$4.01B

7.1% Net Margin

EPS (Diluted)

$0.95

Total Assets

$344.21B

Cash & Equivalents

$4.90B

Free Cash Flow

$5.28B

Financial Statements
Beta
Revenue$56.47B
SG&A Expenses$2.50B
Operating Expenses$52.75B
Interest Expense$146.00M
Net Income$4.01B
EPS (Basic)$0.95
EPS (Diluted)$0.95
Shares Outstanding (Basic)4.22B

Key Highlights

  • 1Net income attributable to ExxonMobil surged to $4.01 billion in Q1 2017, a significant increase from $1.81 billion in Q1 2016, with earnings per diluted share rising to $0.95 from $0.43.
  • 2Total revenues and other income grew substantially to $63.29 billion from $48.71 billion, reflecting improved commodity prices and operational performance.
  • 3The Upstream segment turned profitable, reporting earnings of $2.25 billion compared to a loss of $76 million in the prior year's quarter, driven by higher liquids and gas prices.
  • 4Downstream segment earnings increased by $210 million to $1.12 billion, supported by higher margins and improved volume/mix.
  • 5Chemical segment earnings decreased by $184 million to $1.17 billion, attributed to weaker margins and higher expenses.
  • 6ExxonMobil completed significant acquisitions, including InterOil Corporation for $2.7 billion and Permian Basin properties for $6.2 billion, utilizing both stock and cash.
  • 7Cash flow from operating activities increased significantly to $8.17 billion from $4.81 billion, reflecting improved earnings and operational working capital management.

Frequently Asked Questions

The substantial increase in net income was primarily driven by a significant improvement in commodity prices, coupled with effective cost management and enhanced performance in the company's refining (Downstream) operations. The Upstream segment, in particular, saw a dramatic turnaround from a loss to strong profitability due to higher oil and gas prices.

The Upstream segment was the primary driver of the earnings improvement, turning profitable with $2.25 billion in earnings compared to a loss in the prior year's quarter, thanks to higher commodity prices. The Downstream segment also contributed positively with increased earnings of $1.12 billion. However, the Chemical segment experienced a decline in earnings.

Yes, ExxonMobil completed two significant acquisitions in the first quarter of 2017. They acquired InterOil Corporation for $2.7 billion, which included significant stock issuance, and acquired oil and gas properties in the Permian Basin from the Bass family for $6.2 billion, also involving a substantial stock component. There were no major divestitures highlighted in this report.

Cash flow from operating activities saw a robust increase, rising to $8.17 billion in Q1 2017 from $4.81 billion in Q1 2016. This improvement was fueled by higher earnings and better management of operational working capital. Overall, the company generated strong cash flows to support its operations and investments.