10-QPeriod: Q1 FY2018

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2018

Filed May 3, 2018For Securities:XOM

Summary

ExxonMobil Corporation's first quarter 2018 report shows a significant increase in earnings and cash flow compared to the same period in 2017. Net income attributable to ExxonMobil was $4.65 billion, a rise from $4.01 billion in Q1 2017, driven by higher commodity prices across its Upstream, Downstream, and Chemical segments. The company highlights strong operational efficiency and portfolio strengthening as key drivers. Cash flow from operations and asset sales reached $10.0 billion, the highest since 2014, indicating robust financial health and capacity for reinvestment and shareholder distributions. Total revenues and other income grew to $68.21 billion, up from $58.67 billion in the prior year quarter. The Upstream segment saw a substantial earnings increase, largely due to higher liquids and gas realizations, despite a slight decrease in production volumes primarily attributed to the Papua New Guinea earthquake and divestments. Downstream and Chemical segments also contributed positively, though with varying performance dynamics in margins and volumes. The company continues its capital expenditure program, planning for approximately $24 billion in 2018, and maintained its focus on shareholder returns through dividends and share repurchases.

Financial Highlights

40 data points
Beta

Revenue

$65.44B

Net Income

$4.65B

7.1% Net Margin

EPS (Diluted)

$1.09

Total Assets

$348.83B

Cash & Equivalents

$4.13B

Free Cash Flow

$5.17B

Financial Statements
Beta
Revenue$65.44B
SG&A Expenses$2.75B
Operating Expenses$60.97B
Interest Expense$204.00M
Net Income$4.65B
EPS (Basic)$1.09
EPS (Diluted)$1.09
Shares Outstanding (Basic)4.27B

Key Highlights

  • 1Net income attributable to ExxonMobil increased by 15.7% to $4.65 billion in Q1 2018, up from $4.01 billion in Q1 2017.
  • 2Total revenues and other income rose by 16.3% to $68.21 billion in Q1 2018, compared to $58.67 billion in Q1 2017.
  • 3Cash flow from operations and asset sales reached $10.0 billion in Q1 2018, a significant increase driven by higher earnings and asset management activity.
  • 4Upstream segment earnings more than doubled year-over-year, driven by higher crude oil and natural gas prices.
  • 5Despite a 6% decrease in oil-equivalent production, Upstream earnings grew substantially due to favorable commodity prices.
  • 6The company distributed $3.3 billion to shareholders via dividends in Q1 2018.
  • 7Capital and exploration expenditures totaled $4.9 billion in Q1 2018, with plans for $24 billion in total for 2018.

Frequently Asked Questions

The primary driver for the increase in ExxonMobil's earnings in the first quarter of 2018 was higher commodity prices, particularly for liquids and natural gas, which significantly boosted results in the Upstream segment. Favorable market conditions also contributed to improved performance in the Downstream and Chemical businesses.

ExxonMobil reported strong cash flow from operations and asset sales of $10.0 billion in the first quarter of 2018. This represents the highest figure since 2014 and reflects higher earnings and increased proceeds from asset management activities, providing substantial liquidity for the company.

Yes, ExxonMobil adopted several new accounting standards effective January 1, 2018. These include ASC Topic 606 'Revenue from Contracts with Customers', ASC Topic 825-10 'Financial Instruments—Overall', and an update to ASC Topic 715 'Compensation—Retirement Benefits' to improve the presentation of net periodic pension cost. The adoption of these standards did not have a material impact on the reported financial statements, except for a small cumulative effect on equity from the financial instruments standard.

ExxonMobil plans to invest approximately $24 billion in capital and exploration expenditures for the full year 2018, with $4.9 billion already spent in the first quarter. The company continues to prioritize shareholder returns, distributing $3.3 billion in dividends during Q1 2018 and continuing share repurchases to offset dilution.