Exxon Mobil Corporation (NYSE:XOM) Announces Third-Quarter 2023 Results
-- Generated strong third-quarter earnings of $9.1 billion, or $2.25 per
share, reflecting reliable operating performance of an advantaged
portfolio
-- Produced $16.0 billion of operating cash flow and increased cash
balance by $3.4 billion
-- Delivered the best-ever third-quarter global refinery throughput1 at
4.2 million barrels per day
-- Returned $8.1 billion to shareholders in the quarter and increased
fourth-quarter dividend to $0.95 per share
-- Announced agreement to merge with Pioneer Natural Resources, a
combination that will increase U.S. Permian production, enhance energy
security and accelerate Pioneer's path to net zero
SPRING, Texas--(BUSINESS WIRE)--October 27, 2023--
Exxon Mobil Corporation (NYSE:XOM):
Results Summary
Change Change Dollars in Change
vs vs millions (except YTD YTD vs YTD
3Q23 2Q23 2Q23 3Q22 3Q22 per share data) 2023 2022 2022
Earnings (U.S.
9,070 7,880 +1,190 19,660 -10,590 GAAP) 28,380 42,990 -14,610
Earnings
Excluding
Identified Items
9,117 7,874 +1,243 18,682 -9,565 (non-GAAP) 28,609 45,066 -16,457
Earnings Per
2.25 1.94 +0.31 4.68 -2.43 Common Share (2) 6.98 10.17 -3.19
Earnings Excl.
Identified Items
Per Common Share
2.27 1.94 +0.33 4.45 -2.18 (2) 7.04 10.66 -3.62
Capital and
Exploration
6,022 6,166 -144 5,728 +294 Expenditures 18,568 15,241 +3,327
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Exxon Mobil Corporation today announced third-quarter 2023 earnings of $9.1 billion, or $2.25 per share assuming dilution. Cash flow from operations was $16.0 billion, up $6.6 billion versus the second quarter. In line with plans, capital and exploration expenditures were $6.0 billion in the third quarter, bringing year-to-date 2023 expenditures to $18.6 billion. Full-year capital and exploration expenditures are expected to be at the top end of the guidance of $23 billion to $25 billion as the company pursues value accretive opportunities.
“We delivered another quarter of strong operational performance, earnings and cash flows, adding nearly 80,000 net oil-equivalent barrels per day to support global supply(3) ,” said Darren Woods, chairman and chief executive officer. “The organization’s relentless focus on safety, environment and value is paying off — driving record refining throughputs, delivering big projects at first-quintile cost and schedule, and exceeding planned structural cost savings while reducing emissions intensity and the impact on the environment.
“The two transactions we’ve announced further underscore our ongoing commitment to the ‘and’ equation by continuing to meet the world’s needs for energy and essential products while reducing emissions. Pioneer will help us grow supply to meet the world’s energy needs with lower carbon intensity while Denbury improves our competitive position to economically reduce emissions in hard-to-decarbonize industries. Our disciplined operational and financial performance, combined with these strategic transactions, will strengthen our portfolio and position us to deliver profitable growth and attractive returns for many years to come.”
(1) Highest third-quarter global refinery throughput (2000-2023) since Exxon and Mobil merger in 1999, based on current refinery circuit.
(2) Assuming dilution.
(3) Compared to third-quarter 2022; Excludes impacts from divestments, entitlements, and government-mandated curtailments.
Third-Quarter 2023 Financial Highlights
-- Earnings were $9.1 billion compared with second-quarter earnings of
$7.9 billion. Results improved with strong operating performance,
including record third-quarter refining throughput1 as well as a higher
crude price and industry refining margin environment. These factors were
partly offset by weaker chemical margins, unfavorable derivative
mark-to-market impacts and trading timing effects that are expected to
unwind over time.
-- The company achieved $9.0 billion of cumulative structural cost savings
versus 2019, ahead of schedule, with further savings expected by
year-end.
-- Strong earnings drove cash flow from operations of $16.0 billion and
free cash flow of $11.7 billion, an increase of $6.6 billion and $6.7
billion respectively versus the second quarter. Third-quarter shareholder
distributions of $8.1 billion included $3.7 billion of dividends and $4.4
billion of share repurchases. Year-to-date share repurchases were $13.1
billion, consistent with the company's plan to repurchase $17.5 billion
of shares in 2023.
-- The Corporation declared a fourth-quarter dividend of $0.95 per share,
payable on Dec. 11, 2023, to shareholders of record of Common Stock at
the close of business on Nov. 15, 2023. The company has increased its
annual dividend for 41 consecutive years, including this increase of
$0.04 per share, or 4 percent.
-- The debt-to-capital ratio remained at 17% and the net-debt-to-capital
ratio was 4%, reflecting a period-end cash balance of $33.0 billion.
-- The company continued to strengthen its portfolio with the closing of
the Thailand refinery divestment in the third quarter. Total asset sales
and divestments generated $0.9 billion of cash proceeds, bringing the
year-to-date total to $3.1 billion.
(1) Highest third-quarter global refinery throughput (2000-2023) since Exxon and Mobil merger in 1999, based on current refinery circuit.
ADVANCING CLIMATE SOLUTIONS
Progress Toward Net Zero
-- ExxonMobil has industry-leading plans to achieve net zero Scope 1 and 2
greenhouse gas emissions from its Permian unconventional operations by
2030. As part of the announced Pioneer merger, ExxonMobil plans to
accelerate Pioneer's net-zero Permian ambition to 2035 from 2050. In
addition, using a combination of technology, operating capabilities,
infrastructure, recycling, and water sharing, the company expects to
increase the amount of water sourced from oil and gas production used in
its Permian fracturing operations to more than 90% by 2030.
Carbon Capture and Storage
-- In July, the company entered into a definitive agreement to acquire
Denbury Inc. The planned acquisition will provide ExxonMobil with one of
the largest owned and operated carbon dioxide (CO2) pipeline networks in
the United States. The combination will further expand ExxonMobil's
ability to provide large-scale emission-reduction services to industrial
customers. Denbury scheduled a shareholder vote for October 31, 2023,
with the transaction expected to close in early November. The acquisition
is an all-stock transaction valued at $4.9 billion, and the expected
number of shares issuable in connection with the transaction is
approximately 45 million.
EARNINGS AND VOLUME SUMMARY BY SEGMENT
Upstream
Dollars in millions (unless
3Q23 2Q23 3Q22 otherwise noted) YTD 2023 YTD 2022
Earnings/(Loss) (U.S. GAAP)
----- ----- ------ ---------------------------------- ---------- --------
1,566 920 3,110 United States 4,118 9,235
4,559 3,657 9,309 Non-U.S. 13,041 19,043
6,125 4,577 12,419 Worldwide 17,159 28,278
Earnings/(Loss) Excluding
Identified Items (non-GAAP)
----- ----- ------ ---------------------------------- ---------- --------
1,566 920 3,110 United States 4,118 8,936
4,573 3,669 8,731 Non-U.S. 13,225 21,720
6,139 4,589 11,841 Worldwide 17,343 30,656
3,688 3,608 3,716 Production (koebd) 3,709 3,708
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-- Upstream third-quarter earnings were $6.1 billion, an increase of $1.5
billion from the second quarter, driven by higher crude prices, lower
scheduled maintenance, and favorable tax impacts. Identified items
unfavorably impacted earnings by $14 million in the quarter.
-- Compared to the same quarter last year, earnings decreased $6.3
billion. Excluding identified items, earnings declined $5.7 billion,
driven by a nearly 60% decrease in natural gas realizations and a 14%
decrease in crude realizations. Excluding the impacts from divestments,
entitlements, and government-mandated curtailments, net production grew
about 80,000 oil-equivalent barrels per day, driven by the Permian and
Guyana.
-- Year-to-date earnings were $17.2 billion, a decrease of $11.1 billion
versus the first nine months of 2022. The prior-year period was impacted
by net negative identified items totaling $2.4 billion, including an
identified item associated with the Sakhalin-1 expropriation. Excluding
identified items, earnings declined $13.3 billion. Higher production from
advantaged projects in Guyana and the Permian provided a partial offset