ExxonMobil Earns $7.8 Billion in 2016
Darren W. Woods, chairman and chief executive officer.
“The company’s continued focus on fundamentals and our ability to leverage an attractive global portfolio through our integrated business ensures we are well positioned to generate long-term shareholder value.”ExxonMobil completed five major Upstream projects during the year in Australia, Kazakhstan and the U.S., adding 250,000 oil-equivalent barrels per day of working interest production capacity. The company made three important new discoveries in Guyana, Nigeria and Papua New Guinea, and is growing its exploration portfolio, capturing 16 exploration blocks in 2016 with three additional awards to be finalized in 2017. In the Downstream segment, ExxonMobil completed a 20,000-barrel-per-day crude expansion project at the Beaumont, Texas, refinery that increased the site’s flexibility to process domestic light crude oils. ExxonMobil is also advancing projects to increase production of higher-value fuels and lubricants, including investments at refineries in Belgium and the Netherlands. The Chemical business continued to capitalize on its liquids and gas cracking capabilities, capturing increased specialty and commodity product demand. The company is selectively investing to extend its advantage with projects that expand production capacity for ethylene and related products around the world. During 2016, the corporation distributed $12.5 billion in dividends to shareholders. Fourth Quarter 2016 Highlights • Earnings of $1.7 billion decreased $1.1 billion, or 40 percent, from the fourth quarter of 2015. Excluding an impairment charge of $2 billion, earnings of $3.7 billion increased $927 million from the fourth quarter of 2015. • Earnings per share assuming dilution were $0.41. • Cash flow from operations and asset sales of $9.5 billion, including proceeds associated with asset sales of $2.1 billion, more than covered dividends and additions to property, plant and equipment. • Capital and exploration expenditures were $4.8 billion, down 35 percent from the fourth quarter of 2015. • Oil-equivalent production was 4.1 million oil-equivalent barrels per day, with liquids down 3.9 percent and natural gas down 1.7 percent from the prior year. • The corporation distributed $3.1 billion in dividends to shareholders. • Dividends per share of $0.75 increased 2.7 percent compared to the fourth quarter of 2015. • In January 2017, ExxonMobil announced an acquisition that will more than double its Permian Basin resource potential to six billion oil-equivalent barrels. The upfront acquisition cost of $5.6 billion, to be paid in ExxonMobil shares, will add resource potential of 3.4 billion oil-equivalent barrels across 250,000 net acres in New Mexico’s Delaware Basin. Additional cash payments over time totaling up to $1 billion are contingent on resource development. • In January 2017, ExxonMobil announced positive results from its Payara-1 well offshore Guyana. The well encountered more than 95 feet of high-quality, oil-bearing sandstone reservoirs, and is the second discovery on the Stabroek Block. In addition to the Payara discovery, appraisal drilling at Liza-3 has identified an additional high-quality, deeper reservoir directly below the Liza field. This deeper reservoir is estimated to contain resources between 100 million and 150 million oil-equivalent barrels. • ExxonMobil continues to enhance its global exploration portfolio. ExxonMobil and Total S.A. have jointly submitted the high bid for Block 2 located in the Perdido area offshore Mexico. Additionally, ExxonMobil and its partner Qatar Petroleum were selected to negotiate the terms of an exploration and production sharing contract for Block 10 offshore Cyprus. • In October, the Kashagan oil field in Kazakhstan achieved a stable re-start of production and the second LNG Train at Gorgon in Australia started up. Production continued to ramp up at these assets through the fourth quarter. • The Port Allen Aviation Lubricants Plant achieved full production during the quarter. The new 90,000-square-foot facility expands on the integrated chemical and lubricants complex in Baton Rouge, Louisiana, and helps meet rising demand for high-performance synthetic aviation lubricants. The state-of-the-art complex blends, packages and distributes the entire line of Mobil Jet engine lubricants. • ExxonMobil announced plans to add a new production unit at its Beaumont, Texas, polyethylene plant that will increase capacity by 65 percent, or approximately 650,000 metric tons per year, to meet growing global chemical demand. Construction of the new unit has begun at the plant and start-up is expected in 2019. Source / More : Full Year 2016 vs. Full Year 2015 Oil and Gas News Undiluted !!! “The squeaky wheel gets the oil” Follow us: @OilAndGasPress on Twitter | OilAndGasPress on Facebook ]]>