What were the main drivers of ExxonMobil's increased profitability in Q2 2022?

ExxonMobil's strong profitability in Q2 2022 was primarily driven by higher oil and natural gas prices, leading to increased realizations in the Upstream segment. Additionally, improved industry refining margins contributed significantly to the performance of the Energy Products segment.

How did the company's decision to exit the Sakhalin-1 project impact financial results?

ExxonMobil recorded after-tax charges of $3.4 billion in the first quarter of 2022 related to the impairment of its operations associated with the planned exit from the Sakhalin-1 project. This impacted the "Depreciation and depletion (including impairments)" line on the income statement.

What is the company's capital allocation strategy as outlined in this report?

ExxonMobil's capital allocation priorities remain focused on investing in advantaged projects, strengthening the balance sheet, and paying a reliable dividend. The company also continues to return value to shareholders through share repurchases, with $6.1 billion in repurchases in the first six months of 2022.

How has the company's debt level changed?

Total debt at the end of Q2 2022 was $46.9 billion, a slight decrease from $47.7 billion at year-end 2021. The debt-to-total capital ratio improved to 20.3% from 21.4%, and the net debt-to-capital ratio decreased to 13.2%.

XOM 10-Q Quarterly Report Q2 FY2022 — Revenue, Net Income, EPS

Summary

ExxonMobil Corporation (XOM) reported robust financial performance for the second quarter and first half of 2022, driven by significantly higher oil and gas prices and refining margins. Total revenues and other income surged to $115.7 billion for the quarter and $206.2 billion for the first half, a substantial increase from the prior year. Net income attributable to ExxonMobil reached $17.85 billion for the quarter and $23.33 billion for the first half, marking a significant improvement compared to Q2 2021 ($4.69 billion) and the first half of 2021 ($7.42 billion). The company's Upstream segment was the primary driver of this growth, benefiting from higher realizations for crude oil and natural gas. The Energy Products segment also contributed positively due to improved industry refining margins. While Chemical Products and Specialty Products segments saw a decline in earnings compared to the strong prior year, they remained profitable. ExxonMobil's strong operational performance and favorable market conditions are reflected in its substantial increase in cash flow from operating activities, which reached $34.8 billion for the first six months of 2022, enabling significant capital expenditures, shareholder distributions, and share repurchases.

Financial Highlights

43 data points

Beta

Revenue

$111.27B

Net Income

$17.85B

0.2% Net Margin

EPS (Diluted)

$4.21

Total Assets

$367.77B

Cash & Equivalents

$18.86B

Free Cash Flow

$16.13B

Financial Statements

Beta

Revenue	$111.27B
SG&A Expenses	$2.53B
Operating Expenses	$90.75B
Interest Expense	$194.00M
Net Income	$17.85B
EPS (Basic)	$4.21
EPS (Diluted)	$4.21
Shares Outstanding (Basic)	4.23B

Key Highlights

1Total revenues increased significantly, reaching $115.7 billion for Q2 2022 and $206.2 billion for the first six months of 2022.
2Net income attributable to ExxonMobil surged to $17.85 billion in Q2 2022 and $23.33 billion in the first six months of 2022, a substantial increase from the prior year.
3The Upstream segment saw a significant earnings boost due to higher oil and natural gas realizations.
4Energy Products segment benefited from improved industry refining margins, contributing to strong overall profitability.
5Cash flow from operating activities was robust, totaling $34.8 billion for the first six months of 2022, enabling significant shareholder returns.
6Capital expenditures increased, with $9.5 billion invested in the first six months of 2022, reflecting ongoing investment in growth projects.
7ExxonMobil distributed $7.5 billion to shareholders via dividends and repurchased $6.1 billion of common stock in the first six months of 2022.

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2022

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions