10-QPeriod: Q2 FY2023

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2023

Filed August 1, 2023For Securities:XOM

Summary

ExxonMobil Corporation reported a decrease in net income for the second quarter and first six months of 2023 compared to the same periods in 2022, primarily due to lower crude oil and natural gas prices, as well as declining industry refining margins. Despite this, the company generated significant cash flow from operations, demonstrating resilience in its business model. Capital expenditures increased year-over-year as ExxonMobil continues to invest in its strategic priorities, including growth projects and low-carbon solutions, highlighted by the announced acquisition of Denbury Inc. to bolster its carbon capture capabilities. The company's financial position remains strong, with a stable debt-to-capital ratio. ExxonMobil also continued its commitment to shareholder returns, distributing substantial amounts through dividends and share repurchases. While facing a challenging commodity price environment, the company's diversified business segments and strategic investments position it for future performance.

Financial Highlights

41 data points
Beta

Revenue

$80.80B

Net Income

$7.88B

9.8% Net Margin

EPS (Diluted)

$1.94

Total Assets

$363.25B

Cash & Equivalents

$29.56B

Free Cash Flow

$4.02B

Financial Statements
Beta
Revenue$80.80B
SG&A Expenses$2.45B
Operating Expenses$71.26B
Interest Expense$249.00M
Net Income$7.88B
EPS (Basic)$1.94
EPS (Diluted)$1.94
Shares Outstanding (Basic)4.07B

Key Highlights

  • 1Net income for Q2 2023 was $7.9 billion, down from $17.9 billion in Q2 2022, reflecting lower commodity prices and refining margins.
  • 2First six months 2023 net income was $19.3 billion, down from $23.3 billion in the prior year period.
  • 3Capital and exploration expenditures increased by 32% year-to-date to $12.5 billion, signaling continued investment in strategic projects.
  • 4The company announced the acquisition of Denbury Inc. for $4.9 billion, aimed at accelerating its low-carbon solutions business, particularly in carbon capture.
  • 5ExxonMobil distributed $7.4 billion to shareholders via dividends and repurchased $8.7 billion of common stock in the first six months of 2023.
  • 6Total debt remained stable at $41.5 billion, with a debt-to-total capital ratio of 16.7% as of June 30, 2023, indicating a strong balance sheet.

Frequently Asked Questions

The primary drivers for the decrease in net income were lower average crude oil and natural gas prices, as well as a decline in industry refining margins. These factors significantly impacted the company's revenue and profitability compared to the strong performance observed in the prior year periods.

ExxonMobil is increasing its capital and exploration expenditures, with $12.5 billion invested in the first six months of 2023. The company's capital allocation priorities include investing in high-return projects, maintaining a strong balance sheet, and returning capital to shareholders through dividends and share repurchases. A key strategic investment is the announced acquisition of Denbury Inc. to expand its carbon capture, utilization, and storage (CCUS) capabilities.

The acquisition of Denbury Inc. for approximately $4.9 billion is a strategic move to accelerate ExxonMobil's Low Carbon Solutions business. It will significantly enhance the company's capabilities in carbon capture, utilization, and storage (CCUS), acquiring CO2 transportation infrastructure and storage assets, along with oil and natural gas operations. The transaction is expected to close in the fourth quarter of 2023.

ExxonMobil maintained a strong financial position, with total debt at $41.5 billion and a debt-to-total capital ratio of 16.7% as of June 30, 2023, indicating a healthy leverage profile. The company demonstrated a strong commitment to shareholder returns, distributing $7.4 billion in dividends and repurchasing $8.7 billion of its common stock in the first six months of 2023.