10-QPeriod: Q1 FY2023

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2023

Filed May 2, 2023For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported a strong first quarter for 2023, with net income attributable to shareholders of $11.43 billion, or $2.79 per diluted share, a significant increase from $5.48 billion ($1.28 per diluted share) in the first quarter of 2022. This performance was driven by improved margins in the Energy Products and Specialty Products segments, coupled with increased volumes and favorable product mix. The company's upstream segment saw a notable earnings increase, largely due to growth in Guyana and the Permian basin, which more than offset impacts from divestments and the Russia expropriation. The Energy Products segment benefited significantly from stronger industry refining margins and marketing contributions, despite some seasonal softening. Chemical Products, however, experienced weaker margins and lower sales, reflecting global market conditions. Capital expenditures increased year-over-year, aligning with ExxonMobil's strategic priorities of investing in high-return projects while maintaining a strong balance sheet and returning value to shareholders through buybacks and dividends.

Financial Highlights

41 data points
Beta

Revenue

$83.64B

Net Income

$11.43B

13.7% Net Margin

EPS (Diluted)

$2.79

Total Assets

$369.37B

Cash & Equivalents

$32.68B

Free Cash Flow

$10.93B

Financial Statements
Beta
Revenue$83.64B
SG&A Expenses$2.39B
Operating Expenses$69.76B
Interest Expense$159.00M
Net Income$11.43B
EPS (Basic)$2.79
EPS (Diluted)$2.79
Shares Outstanding (Basic)4.10B

Key Highlights

  • 1Net income attributable to ExxonMobil increased to $11.43 billion in Q1 2023, up from $5.48 billion in Q1 2022.
  • 2Earnings per diluted share rose to $2.79 in Q1 2023, compared to $1.28 in Q1 2022.
  • 3Upstream segment earnings significantly benefited from growth in Guyana and the Permian, with overall upstream earnings of $6.46 billion, up from $4.49 billion in the prior year.
  • 4Energy Products segment earnings surged to $4.18 billion from a loss of $0.20 billion in Q1 2022, driven by strong refining margins.
  • 5Capital and exploration expenditures increased to $6.38 billion in Q1 2023, compared to $4.90 billion in Q1 2022, reflecting investments in growth projects.
  • 6The company repurchased approximately 39.3 million shares of common stock during the quarter for $4.3 billion.
  • 7Total cash generated from operations and asset sales increased to $17.2 billion in Q1 2023, up from $15.1 billion in Q1 2022.

Frequently Asked Questions

The substantial increase in net income was primarily driven by improved margins in the Energy Products segment due to stronger industry refining margins, and favorable volume and mix impacts across several segments. Additionally, the Upstream segment saw higher earnings due to growth projects in Guyana and the Permian, partially offsetting divestments and prior year charges related to Russia.

Capital and exploration expenditures increased to $6.38 billion in the first quarter of 2023, up from $4.90 billion in the same period last year. This reflects the company's commitment to investing in competitively advantaged, high-return projects. ExxonMobil plans to invest between $23 billion and $25 billion in capital expenditures for the full year 2023.

ExxonMobil's capital allocation priorities include investing in high-return projects, maintaining a strong balance sheet, and returning value to shareholders. In the first quarter of 2023, the company distributed $3.7 billion to shareholders through dividends and repurchased approximately $4.3 billion of its stock under its ongoing share repurchase program.

The Chemical Products segment experienced a decline in earnings to $371 million from $1.41 billion in the prior year. This was primarily due to weaker industry margins and lower sales volumes, reflecting softening market conditions, particularly in the Asia Pacific region. Higher scheduled maintenance expenses also contributed to the decrease.