ExxonMobil Earns $4.9 Billion in First Quarter of 2015
Exxon Mobil Corporation today announced estimated first quarter 2015 earnings of $4.9 billion, or $1.17 per diluted share, compared with $9.1 billion a year earlier, demonstrating the value of the company’s integrated businesses in a lower commodity price environment.
“ExxonMobil’s balanced portfolio delivered solid financial results in the quarter,” said Rex W. Tillerson, chairman and chief executive officer. “Regardless of current market conditions, we remain focused on business fundamentals and competitive advantages that create long-term shareholder value.”
During the quarter, ExxonMobil produced 4.2 million oil-equivalent barrels per day, an increase of 97,000 barrels per day over the first quarter of 2014. Volumes were up 2.3 percent, benefiting from new developments in Papua New Guinea, Canada, Angola, Indonesia, and U.S. onshore liquids plays. Field decline and maintenance impacts were mostly offset by higher entitlement volumes.
Downstream and Chemical segment earnings were strong across all regions, driven by lower feedstock costs, improved demand, and the company’s competitive product and asset mix.
During the quarter, the corporation distributed $3.9 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.
First Quarter Highlights
- Earnings of $4.9 billion decreased 46 percent from the first quarter of 2014.
- Earnings per share were $1.17 assuming dilution, a decrease of 44 percent.
- Capital and exploration expenditures were $7.7 billion, down 9 percent from the first quarter of 2014, in line with plan
- Oil-equivalent production increased 2.3 percent from the first quarter of 2014, with liquids up 6 percent and gas down 1.6 percent.
- Cash flow from operations and asset sales was $8.5 billion, including proceeds associated with asset sales of $484 million.
- The corporation distributed $3.9 billion to shareholders in the first quarter of 2015, including $1 billion in share purchases to reduce shares outstanding.
- Dividends per share of $0.69 increased 9.5 percent compared with the first quarter of 2014.
- Production started at the Sakhalin-1 project’s Arkutun-Dagi field, the last of the three fields to be developed. Peak daily gross production from the field is expected to reach 90,000 barrels and will bring total daily production at Sakhalin-1 to more than 200,000 barrels.
- Production started at Hadrian South in the Gulf of Mexico with ExxonMobil’s deepest subsea tie-back. Daily gross production is expected to reach approximately 300 million cubic feet of gas and 3,000 barrels of liquids from two wells.
- Oil production started ahead of schedule at the Kizomba Satellites Phase 2 project offshore Angola. This capital-efficient project utilizes subsea tie-backs to optimize existing Block 15 facilities, increasing current production levels without requiring additional floating production, storage and offloading vessels. The project develops approximately 190 million barrels of oil with peak production currently estimated at 70,000 gross barrels of oil per day. The project is expected to increase total daily Block 15 production to 350,000 barrels.
- Construction of an 84 megawatt cogeneration plant is underway at the Singapore refinery, which will improve the energy efficiency of the site upon completion. The project will enable the shutdown of less efficient power generation facilities and reduce carbon dioxide emissions. This project underscores ExxonMobil’s commitment to improving energy efficiency, lowering emissions, and reducing costs.
- Drilling resumed at Point Thomson on Alaska’s North Slope as construction continues toward bringing the initial production systems, designed to produce up to 10,000 gross barrels per day of natural gas condensate, online in 2016. The initial production will provide reservoir development insights and economic benefits to Alaskans.