ExxonMobil Announces Full-Year 2022 Results
- Delivered industry-leading 2022 earnings, cash flow from operations, total shareholder return, and return on capital employed 1
- Generated earnings of $55.7 billion and $76.8 billion of cash flow from operating activities in 2022 by leveraging an advantaged portfolio and delivering strong operational performance
- Increased year-over-year Guyana and Permian production by over 30%
- Achieved best-ever annual refining throughput in North America and the highest globally since 2012 2
- Operated Permian assets achieved zero routine flaring as of year-end 2022 3
- Started up one of the largest advanced recycling facilities in North America, capable of processing more than 80 million pounds of plastic waste per year
IRVING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM):
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Results Summary |
|
|||||||
|
|
|
|
|
|
|
|
|
|
|
4Q22 |
3Q22 |
Change |
4Q21 |
Change |
Dollars in millions (except per share data) |
2022 |
2021 |
Change |
|
12,750 |
19,660 |
-6,910 |
8,870 |
+3,880 |
Earnings (U.S. GAAP) |
55,740 |
23,040 |
+32,700 |
|
14,035 |
18,682 |
-4,647 |
8,795 |
+5,240 |
Earnings Excluding Identified Items (non-GAAP) |
59,101 |
23,013 |
+36,088 |
|
|
|
|
|
|
|
|
|
|
|
3.09 |
4.68 |
-1.59 |
2.08 |
+1.01 |
Earnings Per Common Share 4 |
13.26 |
5.39 |
+7.87 |
|
3.40 |
4.45 |
-1.05 |
2.05 |
+1.35 |
Earnings Excl. Identified Items Per Common Share 4 |
14.06 |
5.38 |
+8.68 |
|
|
|
|
|
|
|
|
|
|
|
7,463 |
5,728 |
+1,735 |
5,808 |
+1,655 |
Capital and Exploration Expenditures |
22,704 |
16,595 |
+6,109 |
Exxon Mobil Corporation today announced fourth-quarter 2022 earnings of $12.8 billion, or $3.09 per share assuming dilution, resulting in full-year earnings of $55.7 billion, or $13.26 per share assuming dilution. Fourth-quarter results included unfavorable identified items of $1.3 billion associated with additional European taxes on the energy sector and asset impairments, partly offset by one-time adjustments related to the Sakhalin-1 expropriation. Capital and exploration expenditures were $7.5 billion in the fourth quarter, bringing full-year 2022 investments to $22.7 billion, consistent with our guidance.
“The hard work and commitment of our people enabled us to deliver industry-leading operating and financial results and shareholder returns in 2022,” said Darren Woods, chairman and chief executive officer.
“While our results clearly benefited from a favorable market, the counter-cyclical investments we made before and during the pandemic provided the energy and products people needed as economies began recovering and supplies became tight. We leaned in when others leaned out. Our plan for 2023 calls for further progress on our strategic objectives, which include leading the industry in safety, operating, and financial performance. We will continue to invest in our advantaged projects to deliver profitable growth, help meet society’s growing needs, and reduce emissions in our operations, while providing innovative solutions that help others reduce theirs.”
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1 One-year (2022) results with industry peer group estimated using nine month 2022 annualized figures or announced programs (shareholder distributions); industry peer group includes BP, Chevron, Shell, and TotalEnergies. |
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2 Best-ever annual refining throughput in North America and the highest globally since 2012, both based on current refinery circuit. |
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3 References to routine flaring herein are consistent with the World Bank’s Zero Routine Flaring Initiative/Global Gas Flaring Reduction Partnership’s (GGFRP) principle of routine flaring, and excludes safety and non-routine flaring. |
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4 Assuming dilution. |
Full-year Financial Highlights
- Full-year 2022 earnings were $55.7 billion compared with $23.0 billion in 2021, an increase of $32.7 billion. Identified items unfavorably impacted earnings by $3.4 billion mainly from Sakhalin-1 impairments in the first quarter. Earnings excluding these identified items were $59.1 billion, an increase of $36.1 billion from prior year.
- Other factors impacting results were price and margin improvements driven by recovering demand and tight supply, the favorable mark-to-market impact of unsettled derivatives, and volume increases on strong refining throughput and growth of advantaged assets. Structural cost savings and disciplined expense management helped to offset inflation and higher operating costs from growth projects and capacity additions. In addition, results also benefited from lower Corporate and Financing costs as well as net favorable one-time items.
- Structural cost savings now total $7 billion compared to 2019. The company achieved an additional $2 billion of savings during the year and is on track to deliver $9 billion of total annual savings in 2023 vs. 2019.
- Leading peers¹ with 87% total shareholder return for the year as well as 25% return on capital employed, the highest one-year return since 2012.
- Cash increased by $22.9 billion in 2022 with free cash flow of $62.1 billion. Shareholder distributions were $29.8 billion, including $14.9 billion in dividends and $14.9 billion of share repurchases. The company also increased and extended its share-repurchase program with up to $35 billion of cumulative share repurchases in 2023-2024.
- The Corporation declared a first-quarter dividend of $0.91 per share, payable on March 10, 2023, to shareholders of record of Common Stock at the close of business on February 14, 2023.
- Net-debt-to-capital ratio improved to about 5%, reflecting 2022 debt retirements of $7.2 billion and a period-end cash balance of $29.7 billion, further strengthening the balance sheet and providing greater financial flexibility.
- Non-core asset sales and divestments generated $5.2 billion of cash proceeds during the year.
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1 One-year (2022) results with industry peer group estimated using nine month 2022 annualized figures or announced programs (shareholder distributions); industry peer group includes BP, Chevron, Shell, and TotalEnergies. |
Progress Toward Net Zero
- Permian operated assets achieved a major milestone in the fourth quarter by achieving zero routine flaring.1 This is a key part of ongoing efforts to achieve net-zero Scope 1 and Scope 2 greenhouse gas emissions from our Permian operated unconventional assets by 2030. The company remains on track to meet its goal of achieving zero routine flaring across all its global Upstream operated assets by 2030 in support of the World Bank’s Zero Routine Flaring Initiative.
- The company reduced methane emissions intensity at all operated assets by more than 40% compared to 2016 levels.2
Biofuels and Hydrogen
- ExxonMobil announced the next step in the development of the world’s largest low-carbon hydrogen production facility with a contract award for front-end engineering and design. The integrated ExxonMobil Baytown facility is expected to produce 1 billion cubic feet of low-carbon hydrogen per day, that would make it the largest low-carbon hydrogen project in the world with an expected startup in 2027-2028. More than 98% of the associated CO2 produced by the facility, or around 7 million metric tons per year, is expected to be captured and permanently stored. The carbon capture and storage network being developed for the project will be made available for use by third-party CO2 emitters in the area in support of their decarbonization efforts.3
- ExxonMobil’s majority-owned affiliate, Imperial Oil Ltd., will invest about $560 million to move forward with construction of the largest renewable diesel facility in Canada. The project at Imperial’s Strathcona Refinery is expected to produce 20,000 barrels of renewable diesel per day primarily from locally sourced feedstocks. This is expected to help reduce greenhouse gas emissions in the Canadian transportation sector by about 3 million metric tons per year.4
Carbon Capture and Storage
- ExxonMobil and Mitsubishi Heavy Industries (MHI) announced a joint effort to deploy MHI’s leading carbon capture technology as part of ExxonMobil’s end-to-end carbon capture and storage solution for industrial customers.
- The company advanced its evaluation of carbon capture and storage projects in the United Kingdom and Indonesia. In the United Kingdom, ExxonMobil, along with Solent Local Enterprise Partnership and the University of Southampton, announced the first major decarbonization initiative that would substantially reduce carbon emissions from industry, transportation, and households across Southern England. In Indonesia, ExxonMobil and the state-owned energy company, Pertamina, agreed to progress a previously announced regional carbon capture and storage hub offshore Java for domestic and international CO2.
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1 References to routine flaring herein are consistent with the World Bank’s Zero Routine Flaring Initiative/Global Gas Flaring Reduction Partnership’s (GGFRP) principle of routine flaring, and excludes safety and non-routine flaring. |
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2 2021 vs. 2016 levels (at ExxonMobil operated assets); we are working to continuously improve our performance and methods to detect, measure, and address greenhouse gas emissions. |
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3 The Baytown hydrogen facility has not reached final investment decision. Individual opportunities may advance based on a number of factors, including supportive policy, technology, and market conditions. |
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4 Calculated using Canada’s Clean Fuel Regulation and in comparison to conventional fuels. |
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EARNINGS AND VOLUME SUMMARY BY SEGMENT |
|
Upstream |
|||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
|
|
|
Earnings/(Loss) (U.S. GAAP) |
|
|
|
2,493 |
3,110 |
1,768 |
United States |
11,728 |
3,663 |
|
5,708 |
9,309 |
4,317 |
Non-U.S. |
24,751 |
12,112 |
|
8,201 |
12,419 |
6,085 |
Worldwide |
36,479 |
15,775 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Excluding Identified Items (non-GAAP) |
|
|
|
2,493 |
3,110 |
2,031 |
United States |
11,429 |
3,926 |
|
6,269 |
8,731 |
4,597 |
Non-U.S. |
27,989 |
12,392 |
|
8,762 |
11,841 |
6,628 |
Worldwide |
39,418 |
16,318 |
|
|
|
|
|
|
|
|
3,822 |
3,716 |
3,816 |
Production (koebd) |
3,737 |
3,712 |
- Upstream fourth-quarter 2022 earnings were $8.2 billion compared to $12.4 billion in the third quarter, a decrease of $4.2 billion. Earnings decreased mainly from lower prices with both crude and gas realizations down, 15% and 13% respectively, on higher global inventories. Positive unsettled derivatives mark-to-market effects of $1.6 billion were driven by the decline in gas prices and more than offset year-end inventory impacts and seasonally higher expenses. Identified items unfavorably impacted earnings by $1.1 billion, mainly from additional European taxes on the energy sector partly offset by net favorable divestments and adjustments related to the Sakhalin-1 expropriation. Earnings excluding these identified items decreased $3.1 billion from $11.8 billion to $8.8 billion.
- Production in the fourth quarter was 3.8 million oil-equivalent barrels per day. Growth more than offset divestment impacts, as production increased by more than 100,000 oil-equivalent barrels per day compared to the prior quarter.
- The Permian delivered record production in the quarter of more than 560,000 oil-equivalent barrels per day and the company also loaded the first LNG cargo from the Coral South LNG development in Mozambique.
- Compared to the same quarter last year, earnings increased $2.1 billion. The improvement was driven by a 46% increase in natural gas realizations and an increase of nearly 10% in crude realizations. Results benefited from $1.4 billion positive unsettled derivatives mark-to-market effects, which more than offset the impact of year-end inventory impacts and higher expenses. Excluding divestments and the Sakhalin-1 expropriation, oil-equivalent production grew by 217,000 barrels per day, driven by the company’s advantaged growth projects in the Permian and Guyana. Earnings excluding identified items were $8.8 billion for the quarter, an increase of $2.1 billion compared to the same quarter last year.
- Full-year earnings were $36.5 billion, an increase of $20.7 billion versus 2021 despite a $2.4 billion unfavorable impact from identified items, most notably additional European taxes on the energy sector and the Sakhalin-1 impairment. Earnings excluding identified items were $39.4 billion, an increase of $23.1 billion.
- Other factors impacting full-year results were improved liquids and natural gas realizations, reflecting tight supply and recovering demand, and favorable unsettled derivatives mark-to-market effects of $2.8 billion resulting from lower gas prices and the absence of unfavorable 2021 impacts. In addition, structural cost savings and disciplined expense management largely offset higher expenses associated with advantaged growth projects and inflation. Excluding impacts from divestments and the Sakhalin-1 expropriation, oil-equivalent production grew by about 170,000 barrels per day from continued investment in advantaged growth projects in the Permian and Guyana. Production in the Permian grew about 90,000 oil-equivalent barrels per day and Guyana production grew about 70,000 oil-equivalent barrels per day with Liza Phase 2 starting up ahead of schedule and both Liza Phase 1 and 2 producing above the investment basis.
|
Energy Products |
|||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
|
|
|
Earnings/(Loss) (U.S. GAAP) |
|
|
|
2,188 |
3,008 |
699 |
United States |
8,340 |
668 |
|
1,882 |
2,811 |
203 |
Non-U.S. |
6,626 |
(1,014) |
|
4,070 |
5,819 |
901 |
Worldwide |
14,966 |
(347) |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Excluding Identified Items (non-GAAP) |
|
|
|
2,246 |
3,008 |
699 |
United States |
8,398 |
668 |
|
2,508 |
2,811 |
203 |
Non-U.S. |
7,252 |
(1,014) |
|
4,754 |
5,819 |
901 |
Worldwide |
15,650 |
(347) |
|
|
|
|
|
|
|
|
5,423 |
5,537 |
5,373 |
Energy Products Sales (kbd) |
5,347 |
5,130 |
- Energy Products fourth-quarter 2022 earnings totaled $4.1 billion compared to $5.8 billion in the third quarter, a decrease of $1.7 billion. Continued strong industry refining margins partially offset an unfavorable derivatives mark-to-market impact of $1.0 billion, mainly due to the absence of prior quarter gains. In addition, increased maintenance spend and lower throughput, driven by French industrial actions, were offset by favorable year-end inventory impacts. Identified items associated with additional European taxes on the energy sector as well as asset impairments reduced earnings by $0.7 billion. Earnings excluding these identified items were $4.8 billion for the quarter, a decrease of $1.1 billion from the third quarter.
- Earnings increased $3.2 billion compared to the fourth quarter of 2021 due to stronger industry refining margins, increased marketing and trading contributions, and favorable foreign exchange impacts, partly offset by increased maintenance expenses and unfavorable derivatives mark-to-market impacts. In addition, earnings were unfavorably impacted by identified items of $0.7 billion, mainly additional European taxes on the energy sector and asset impairments. Earnings excluding identified items were $4.8 billion for the quarter, an increase of $3.9 billion from the same quarter last year.
- Full-year 2022 earnings were $15.0 billion compared to a loss of $0.3 billion last year. Identified items reduced earnings by $0.7 billion mainly from additional European taxes on the energy sector and asset impairments. Earnings excluding identified items were $15.7 billion, an increase of $16 billion from last year.
- Results for the year increased from improved industry refining margins, which benefited from higher demand and low inventories. Results were also helped by stronger trading and marketing margins, improved product yields, higher throughput, as well as favorable foreign exchange and year-end inventory impacts. In addition, continued disciplined cost management helped to offset higher expenses from inflation and project activity.
- Refining throughput for the year was 4 million barrels per day, up 171,000 barrels from 2021 on a current refinery circuit basis, reflecting best-ever annual refining throughput in North America and the highest globally since 2012.
- The company mechanically completed its Beaumont Refinery expansion, the largest in the United States since 2012 and expects to bring 250,000 barrels per day of crude distillation capacity to the market in first quarter 2023.
- The company announced an agreement with Par Pacific Holdings for the sale of the Billings Refinery and select midstream assets in Montana and Washington, as well as an agreement with Italiana Petroli for the sale of the Italy fuels business during the quarter. Additionally, in January an agreement was reached with Bangchak Corporation for the sale of ExxonMobil’s interest in Esso Thailand, including the Sriracha Refinery, select distribution terminals, and a network of Esso-branded retail stations.
|
Chemical Products |
|||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
|
|
|
Earnings/(Loss) (U.S. GAAP) |
|
|
|
298 |
635 |
774 |
United States |
2,328 |
3,697 |
|
(48) |
177 |
597 |
Non-U.S. |
1,215 |
3,292 |
|
250 |
812 |
1,371 |
Worldwide |
3,543 |
6,989 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Excluding Identified Items (non-GAAP) |
|
|
|
298 |
635 |
774 |
United States |
2,328 |
3,697 |
|
(48) |
177 |
597 |
Non-U.S. |
1,215 |
3,292 |
|
250 |
812 |
1,371 |
Worldwide |
3,543 |
6,989 |
|
|
|
|
|
|
|
|
4,658 |
4,680 |
4,833 |
Chemical Products Sales (kt) |
19,167 |
19,142 |
- Chemical Products fourth-quarter 2022 earnings were $0.3 billion compared to $0.8 billion in the third quarter on weaker margins as a result of continued supply additions and softening demand in North America and Europe partially offset by lower North America feed costs.
- Earnings were $1.1 billion lower compared to fourth-quarter 2021 on weaker industry margins and lower sales, reflecting softening market conditions.
- Full-year earnings of $3.5 billion were above the 10-year average, though below the record $7.0 billion earned in 2021. Earnings remained strong despite bottom-of-cycle conditions in Asia Pacific, increased supply, and the closure of the regional pricing disconnect between Asia and the Atlantic Basin during the year. In addition, earnings were unfavorably impacted by product mix effects, higher expenses from production capacity additions, and foreign exchange effects from a stronger U.S. dollar.
- The company started up its advanced recycling facility in Baytown, Texas, one of the largest advanced recycling facilities in North America, capable of processing more than 80 million pounds of plastic waste per year.
- The company also successfully started up a new polypropylene production unit in Baton Rouge, Louisiana, doubling the plant’s polypropylene production to meet growing demand for high-performance, lightweight, and durable plastics.
|
Specialty Products |
|||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
|
|
|
Earnings/(Loss) (U.S. GAAP) |
|
|
|
406 |
306 |
763 |
United States |
1,190 |
1,452 |
|
354 |
456 |
353 |
Non-U.S. |
1,225 |
1,807 |
|
760 |
762 |
1,116 |
Worldwide |
2,415 |
3,259 |
|
|
|
|
|
|
|
|
|
|
|
Earnings/(Loss) Excluding Identified Items (non-GAAP) |
|
|
|
406 |
306 |
265 |
United States |
1,190 |
954 |
|
394 |
456 |
217 |
Non-U.S. |
1,265 |
1,672 |
|
800 |
762 |
482 |
Worldwide |
2,455 |
2,625 |
|
|
|
|
|
|
|
|
1,787 |
1,917 |
1,835 |
Specialty Products Sales (kt) |
7,810 |
7,666 |
- Specialty Products fourth-quarter 2022 earnings were $0.8 billion, in line with the third quarter. The robust quarterly performance was driven by improved margins with continued pricing actions and lower energy prices, partly offset by lower volumes on supply length and higher seasonal expenses.
- Fourth-quarter 2022 earnings were $0.8 billion compared to $1.1 billion in the same quarter last year, a decrease of $0.4 billion driven by the absence of prior year identified items associated with asset sales. Earnings excluding identified items were $0.8 billion, $0.3 billion higher than the same quarter last year.
- Quarterly results increased from improved basestock industry margins and positive year-end inventory effects, partly offset by lower sales volumes.
- Full-year earnings were $2.4 billion compared with $3.3 billion in 2021, a decrease of $0.8 billion. Identified items reduced earnings by $0.7 billion, mainly associated with the absence of an asset sale gain. Earnings excluding identified items were $2.5 billion, a decrease of $0.2 billion compared to last year.
- Full-year results were also impacted by decreased margins with higher feed costs and energy prices largely offset by continued focus on revenue management, increased expenses from higher maintenance and inflation, and unfavorable foreign exchange impacts partly offset by positive year-end inventory effects.
|
Corporate and Financing |
|||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
(531) |
(152) |
(603) |
Earnings/(Loss) (U.S. GAAP) |
(1,663) |
(2,636) |
|
(531) |
(552) |
(587) |
Earnings/(Loss) Excluding Identified Items (non-GAAP) |
(1,965) |
(2,572) |
- Corporate and Financing reported net charges of $0.5 billion in the fourth quarter of 2022 compared to charges of $0.2 billion in the third quarter, an increase of $0.4 billion driven by the absence of prior quarter identified items related to tax and other reserve adjustments.
- Net charges of $0.5 billion in the fourth quarter of 2022 were down $0.1 billion from the same quarter of 2021.
- Full-year net charges of $1.7 billion declined $1.0 billion from last year, mainly due to decreased pension-related expenses, favorable one-time tax impacts, lower financing costs, and favorable identified item impacts of $0.4 billion associated with tax and other reserve adjustments.
|
|
. |
|
|
|
|
CASH FLOW FROM OPERATIONS AND ASSET SALES EXCLUDING WORKING CAPITAL |
||||
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions |
2022 |
2021 |
|
13,055 |
20,198 |
9,079 |
Net income/(loss) including noncontrolling interests |
57,577 |
23,598 |
|
5,064 |
5,642 |
5,661 |
Depreciation and depletion (includes impairments) |
24,040 |
20,607 |
|
(200) |
1,667 |
1,930 |
Changes in operational working capital |
(194) |
4,162 |
|
(298) |
(3,082) |
454 |
Other |
(4,626) |
(238) |
|
17,621 |
24,425 |
17,124 |
Cash Flow from Operating Activities (U.S. GAAP) |
76,797 |
48,129 |
|
|
|
|
|
|
|
|
1,333 |
2,682 |
2,601 |
Proceeds associated with asset sales |
5,247 |
3,176 |
|
18,954 |
27,107 |
19,725 |
Cash Flow from Operations and Asset Sales (non-GAAP) |
82,044 |
51,305 |
|
|
|
|
|
|
|
|
200 |
(1,667) |
(1,930) |
Changes in operational working capital |
194 |
(4,162) |
|
19,154 |
25,440 |
17,795 |
Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP) |
82,238 |
47,143 |
|
FREE CASH FLOW |
|
|
|||
|
|
|
|
|
|
|
|
4Q22 |
3Q22 |
4Q21 |
Dollars in millions |
2022 |
2021 |
|
17,621 |
24,425 |
17,124 |
Cash Flow from Operating Activities (U.S. GAAP) |
76,797 |
48,129 |
|
|
|
|
|
|
|
|
(5,783) |
(4,876) |
(4,089) |
Additions to property, plant and equipment |
(18,407) |
(12,076) |
|
(2,175) |
(272) |
(1,762) |
Additional investments and advances |
(3,090) |
(2,817) |
|
1,270 |
88 |
1,140 |
Other investing activities including collection of advances |
1,508 |
1,482 |
|
1,333 |
2,682 |
2,601 |
Proceeds from asset sales and returns of investments |
5,247 |
3,176 |
|
12,266 |
22,047 |
15,014 |
Free Cash Flow (non-GAAP) |
62,055 |
37,894 |
|
RETURN ON AVERAGE CAPITAL EMPLOYED |
|
|
|
|
|
|
|
Dollars in millions (unless otherwise noted) |
2022 |
2021 |
|
Net income/(loss) attributable to ExxonMobil (U.S. GAAP) |
55,740 |
23,040 |
|
Financing costs (after-tax) |
|
|
|
Gross third-party debt |
(1,213) |
(1,196) |
|
ExxonMobil share of equity companies |
(198) |
(170) |
|
All other financing costs – net |
276 |
11 |
|
Total financing costs |
(1,135) |
(1,355) |
|
Earnings/(loss) excluding financing costs (non-GAAP) |
56,875 |
24,395 |
|
|
|
|
|
Total assets (U.S. GAAP) |
369,067 |
338,923 |
|
Less liabilities and noncontrolling interests share of assets and liabilities |
|
|
|
Total current liabilities excluding notes and loans payable |
(68,411) |
(52,367) |
|
Total long-term liabilities excluding long-term debt |
(56,990) |
(63,169) |
|
Noncontrolling interests share of assets and liabilities |
(9,205) |
(8,746) |
|
Add ExxonMobil share of debt-financed equity company net assets |
3,705 |
4,001 |
|
Total capital employed (non-GAAP) |
238,166 |
218,642 |
|
|
|
|
|
Average capital employed (non-GAAP) |
228,404 |
222,890 |
|
|
|
|
|
Return on average capital employed – corporate total (non-GAAP) |
24.9% |
10.9% |
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