0000034088false 0000034088 2020-07-30 2020-07-31 0000034088 us-gaap:CommonStockMember 2020-07-30 2020-07-31 0000034088 xom:ZeroPointOneFourTwoPercentNotesDue2024Member 2020-07-30 2020-07-31 0000034088 xom:ZeroPointFiveTwoFourPercentNotesDue2028Member 2020-07-30 2020-07-31 0000034088 xom:ZeroPointEightThreeFivePercentNotesDue2032Member 2020-07-30 2020-07-31 0000034088 xom:OnePointFourZeroEightPercentNotesDue2039Member 2020-07-30 2020-07-31

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

 

Date of Report (Date of earliest event reported): July 31, 2020

 

Exxon Mobil Corporation

(Exact name of registrant as specified in its charter)

 

 

New Jersey

1-2256

13-5409005

(State or other jurisdiction

(Commission

(IRS Employer

of incorporation)

File Number)

Identification No.)

 

 

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

 

Registrant’s telephone number, including area code: (972) 940-6000

 

 

 

 

 

 

(Former name or former address, if changed since last report)

 

 

Securities registered pursuant to Section 12(b) of the Act:

 

 

 

Name of Each Exchange

Title of Each Class

Trading Symbol

 

on Which Registered

Common Stock, without par value

XOM

 

New York Stock Exchange

0.142% Notes due 2024

XOM24B

 

New York Stock Exchange

0.524% Notes due 2028

XOM28

 

New York Stock Exchange

0.835% Notes due 2032

XOM32

 

New York Stock Exchange

1.408% Notes due 2039

XOM39A

 

New York Stock Exchange

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.

 


 

 

 

 

Item 2.02

Results of Operations and Financial Condition

Item 7.01

Regulation FD Disclosure

 

 

 

 

 

The following information is furnished pursuant to both Item 2.02 and Item 7.01.

 

 

The Registrant hereby furnishes the information set forth in its News Release, dated July 31, 2020, announcing second quarter 2020 results, a copy of which is included as Exhibit 99.1, and furnishes the information in the related 2Q20 Investor Relations Data Summary, a copy of which is included as Exhibit 99.2. Material available by hyperlink from the News Release is not deemed to be furnished herewith or included in this filing.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2


 

 

 

 

INDEX TO EXHIBITS

 

 

 

Exhibit No.

Description

 

 

99.1

Exxon Mobil Corporation News Release, dated July 31, 2020, announcing second quarter 2020 results.

 

 

99.2

2Q20 Investor Relations Data Summary.

 

 

104

Cover Page Interactive Data File (formatted as Inline XBRL).

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3


 

 

 

 

SIGNATURE

 

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

 

 

 

EXXON MOBIL CORPORATION

 

 

 

 

 

 

Date: July 31, 2020

By:

/s/ DAVID S. ROSENTHAL

 

 

David S. Rosenthal

 

 

Vice President and Controller

 

 

(Principal Accounting Officer)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

4


 

 

 

EXHIBIT 99.1

News Release

 

Exxon Mobil Corporation

 

5959 Las Colinas Boulevard

 

Irving, TX  75039

 

972 940 6007 Telephone

 

972 940 6143 Facsimile

FOR IMMEDIATE RELEASE

 

FRIDAY, JULY 31, 2020

 

 

 

 

ExxonMobil Reports Results for Second Quarter 2020

 

 

 

 

Global oversupply and COVID-related demand impacts drive second quarter loss of $1.1 billion

 

On track to meet or exceed 2020 capital and cash operating spend reduction targets

 

Supporting COVID-19 response by reconfiguring operations to increase production of hand sanitizer and raw materials for protective equipment for first responders

         

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First

 

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

 

2020

2019

 

2020

 

2020

2019

 

Results Summary

 

 

 

 

 

 

 

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

Earnings/(Loss) (U.S. GAAP)

(1,080)

3,130

 

(610)

 

(1,690)

5,480

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Per Common Share

 

 

 

 

 

 

 

 

 

Assuming Dilution

(0.26)

0.73

 

(0.14)

 

(0.40)

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Identified Items Per Common Share

 

 

 

 

 

 

 

 

 

Assuming Dilution

0.44

0.12

 

(0.67)

 

(0.23)

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Excluding Identified Items

 

 

 

 

 

 

 

 

 

Per Common Share Assuming Dilution

(0.70)

0.61

 

0.53

 

(0.17)

1.16

 

 

 

 

 

 

 

 

 

 

 

 

Capital and Exploration Expenditures

5,327

8,079

 

7,143

 

12,470

14,969

 

 

 

IRVING, Texas – July 31, 2020 – Exxon Mobil Corporation today announced an estimated second quarter 2020 loss of $1.1 billion, or $0.26 per share assuming dilution. Results included a positive noncash inventory valuation adjustment from rising commodity prices of $1.9 billion, or $0.44 per share assuming dilution. Capital and exploration expenditures were $5.3 billion, nearly $2 billion lower than first quarter reflecting previously announced spend reductions.

 

Oil-equivalent production was 3.6 million barrels per day, down 7 percent from the second quarter of 2019, including a 3 percent decrease in liquids and a 12 percent decrease in natural gas, mainly reflecting the impacts of COVID-19 on global demand including economic and government mandated curtailments.

 

“The global pandemic and oversupply conditions significantly impacted our second quarter financial results with lower prices, margins, and sales volumes. We responded decisively by reducing near-term spending and continuing work to improve efficiency by leveraging recent reorganizations,” said Darren W. Woods, chairman and chief executive officer. “The progress we’ve made to date gives us confidence that we will meet or exceed our cost-reduction targets for 2020 and provides a strong foundation for further efficiencies.”

 


 

 

“We have increased debt to a level we feel is appropriate to provide liquidity, given market uncertainties. Based on current projections, we do not plan to take on any additional debt.”

 

The company has identified significant potential for additional reductions and is undertaking a comprehensive evaluation across the businesses on a country-by-country basis. Additional details will be provided when plans are finalized.

 

During the quarter, ExxonMobil continued to support COVID-19 response efforts by increasing production of isopropyl alcohol used in sanitizers and specialized polypropylene used in medical masks and gowns. In April, the company reconfigured manufacturing operations in Baton Rouge, Louisiana, to produce and bottle medical-grade hand sanitizer for donation to frontline workers across the U.S. and to the U.S. Air Force. In addition, ExxonMobil donated equipment and contributed to relief efforts around the world, as outlined on the company’s website.

 

 

Second Quarter 2020 Business Highlights

 

Upstream

 

Market prices for crude oil increased following the sharp decline at the end of the first quarter; however, average second quarter realizations for crude oil and natural gas were significantly lower reflecting the continued oversupply conditions in the market and the impacts of COVID-19 on global demand.

 

Liquids volumes were down 7 percent from first quarter reflecting the impact of lower demand, including economic and government mandated curtailments. Excluding these curtailment impacts, liquids volumes increased 5 percent. Natural gas volumes were 15 percent lower driven by seasonal demand in Europe and scheduled maintenance.

 

Downstream

 

Industry fuels margins were considerably lower than in the first quarter, reflecting the impacts of COVID‑19 on demand for gasoline and jet fuel. The company experienced unfavorable mark-to-market derivative impacts associated with its trading activity, compared to favorable impacts in the previous quarter, driven by significant volatility in commodity prices across the periods.

 

Average refinery utilization was down significantly from first quarter on lower demand, as the company spared about 30 percent of its refining capacity. Over the course of the quarter, utilization increased in line with global fuel demand.

 

Chemical

 

Chemical margins were largely consistent with first quarter. Chemical sales volumes however, while benefiting from resilient demand for essential products, were lower than first quarter driven by the impacts of COVID-19 on global demand.

 

The company continues to support COVID-19 response efforts, further optimizing processes to increase its monthly production of specialized polypropylene, used in masks and medical gowns, and isopropyl alcohol, used in sanitizer, by more than 10 percent.

 

Strengthening the Portfolio

 

While operations were impacted by logistical restrictions resulting from COVID-19, the company demonstrated production capacity of 120,000 gross barrels of oil per day at the Liza Phase 1 development offshore Guyana. Topsides integration is underway in Singapore on a second floating production, storage and offloading vessel, with production capacity up to 220,000 gross barrels of oil per day, to support the Liza Phase 2 development.

 

2  


 

During the quarter, ExxonMobil commenced operations at its new Delaware central processing and exporting facility in Eddy County, New Mexico. This new processing and stabilization facility enhances the company’s integration advantages by collecting and processing oil and natural gas from its assets in the Delaware Basin for delivery to Gulf Coast markets.

 

Disciplined Investing and Expense Management

 

During the quarter, ExxonMobil made significant progress on its previously announced capital and cash operating spend reductions. Planned reductions to the company’s capital investment program for 2020, from $33 billion to $23 billion, are ahead of schedule, reflecting increased efficiencies, lower market prices, and slower project pace. The expected decrease in cash operating expenses of about 15 percent is also ahead of schedule, capturing savings from increased efficiencies, reduced activity, and lower energy costs and volumes.

 

Advancing Innovative Technologies and Products

 

During the quarter, ExxonMobil launched a first-of-its-kind high-frequency network of sensors designed to monitor and detect methane emissions in the Permian Basin. Project Astra is a collaboration with the University of Texas, Gas Technology Institute, Environmental Defense Fund and Pioneer Natural Resources that could provide a more affordable, efficient solution to address methane emissions over large areas of operations.

 

 

ExxonMobil has renewed a five-year agreement with Princeton University’s Andlinger Center for Energy and Environment to accelerate research, development and deployment of energy and environmental technologies with a focus on carbon capture and storage, carbonate fuel cells, and lower-emission technologies. The collaboration extends ExxonMobil’s participation in Princeton’s E-filliates Partnership, which began in 2015.

 

 

Scientists from ExxonMobil, the Georgia Institute of Technology and Imperial College of London published joint research on potential breakthroughs in a new membrane technology that could reduce emissions and energy intensity associated with refining crude oil. Laboratory tests indicate the patent‑pending membrane could be used to replace some heat-intensive distillation at refineries in the years ahead.

3  


 

 

 

 

 

 

 

 

 

 

 

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

2Q

 

2Q

 

 

 

 

 

 

(unless noted)

2020

 

2019

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

(1,197)

 

335

 

-1,532

 

Lower prices

 

 

Non-U.S.

(454)

 

2,926

 

-3,380

 

Lower prices and volumes partly offset by reduced expenses; unfavorable identified items (noncash inventory valuation +168, prior quarter tax item -487)

 

 

Total

(1,651)

 

3,261

 

-4,912

 

Prices -4,520, volume -370, expenses +370, other -120, identified items -270

 

 

Production (koebd)

3,638

 

3,909

 

-271

 

Liquids -83 kbd: growth (+80 kbd), higher entitlements, and lower downtime/maintenance, more than offset by lower demand including economic curtailments, government mandates, and divestments

 

Gas -1,130 mcfd: growth (+105 mcfd), more than offset by divestments, lower demand including economic curtailments, and reduced entitlements

 

 

 

 

 

 

 

 

 

 

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

(101)

 

310

 

-411

 

Lower industry refining margins and reduced market demand, partly offset by lower expenses and improved manufacturing on lower scheduled maintenance; favorable identified item (noncash inventory valuation +404)

 

 

Non-U.S.

1,077

 

141

 

+936

 

Lower industry refining margins and reduced market demand more than offset by lower expenses, improved manufacturing, favorable foreign exchange, and favorable identified items (+1,199, mainly noncash inventory valuation)

 

 

Total

976

 

451

 

+525

 

Margins -1,680, market demand -380, expenses +340, manufacturing +500, forex +80, other +70, identified items +1,600

 

 

Petroleum Product Sales (kbd)

4,437

 

5,408

 

-971

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

171

 

(6)

 

+177

 

Higher margins and lower expenses partly offset by lower volumes on weaker demand

 

 

Non-U.S.

296

 

194

 

+102

 

Lower expenses partly offset by lower volumes on weaker demand; favorable identified item (+142, noncash inventory valuation)

 

 

Total

467

 

188

 

+279

 

Margins +140, expenses +240, volumes -180, other -30, identified items +110

 

 

Prime Product Sales (kt)

5,945

 

6,699

 

-754

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and financing

(872)

 

(770)

 

-102

 

Higher financing costs partly offset by lower corporate expenses

 

4  


 

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

2Q

 

1Q

 

 

 

 

 

 

(unless noted)

2020

 

2020

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

(1,197)

 

(704)

 

-493

 

Lower prices; favorable identified items (prior quarter impairment +315, noncash inventory valuation +90)

 

 

Non-U.S.

(454)

 

1,240

 

-1,694

 

Lower prices and volumes, and unfavorable foreign exchange effects, partly offset by reduced expenses; favorable identified items (noncash inventory valuation +386, prior quarter impairment +41)

 

 

Total

(1,651)

 

536

 

-2,187

 

Prices -2,760, volume -250, expenses +350, forex -220, other -140, identified items +830

 

 

Production (koebd)

3,638

 

4,046

 

-408

 

Liquids -174 kbd: higher entitlements and lower downtime/maintenance, more than offset by lower demand including economic curtailments and government mandates

 

Gas -1,406 mcfd: lower seasonal demand, higher downtime/maintenance, and lower entitlements

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

(101)

 

(101)

 

-

 

Lower margins on weaker industry refining margins and unfavorable mark-to-market derivatives, and reduced market demand, offset by lower expenses, improved manufacturing on lower downtime, and favorable identified items (noncash inventory valuation +815)

 

 

Non-U.S.

1,077

 

(510)

 

+1,587

 

Lower margins on unfavorable mark-to-market derivatives and weaker industry refining margins, and lower market demand, more than offset by lower expenses, favorable foreign exchange, and favorable identified items (noncash inventory valuation +2,386, prior quarter impairment +335)

 

 

Total

976

 

(611)

 

+1,587

 

Margins -2,340, market demand -240, expenses +220, forex +110, manufacturing +190, other +120, identified items +3,530

 

 

Petroleum Product Sales (kbd)

4,437

 

5,287

 

-850

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

171

 

288

 

-117

 

Lower margins and volumes on weaker demand partly offset by reduced expenses; favorable identified items (+61, mainly prior quarter impairment)

 

 

Non-U.S.

296

 

(144)

 

+440

 

Higher margins partly offset by lower volumes on weaker demand; favorable identified items (+376, mainly noncash inventory valuation)

 

 

Total

467

 

144

 

+323

 

Expenses +110, volumes -170, other -50, identified items +430

 

 

Prime Product Sales (kt)

5,945

 

6,237

 

-292

 

 

 

 

Corporate and financing

(872)

 

(679)

 

-193

 

Mainly higher financing costs

 

5  


 

 

Results and Volume Summary

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

YTD

 

YTD

 

 

 

 

 

 

(unless noted)

2020

 

2019

 

Change

 

Comments

 

 

Upstream

 

 

 

 

 

 

 

 

 

U.S.

(1,901)

 

431

 

-2,332

 

Lower prices; unfavorable identified item (impairment -315)

 

 

Non-U.S.

786

 

5,706

 

-4,920

 

Lower prices and volumes, partly offset by favorable foreign exchange effects and reduced expenses; unfavorable identified items (noncash inventory valuation -50, impairment -41, prior year tax item -487)

 

 

Total

(1,115)

 

6,137

 

-7,252

 

Prices -6,400, volume -280, expenses +140, forex +210, other -30, identified items -890

 

 

Production (koebd)

3,842

 

3,945

 

-103

 

Liquids +35 kbd: growth (+122 kbd), lower downtime/maintenance, and higher entitlements, partly offset by lower demand including economic curtailments, divestments, and government mandates

 

Gas -827 mcfd: growth (+201 mcfd), more than offset by divestments and lower demand including economic curtailments

 

 

Downstream

 

 

 

 

 

 

 

 

 

U.S.

(202)

 

149

 

-351

 

Lower margins on weaker industry refining margins, and lower market demand, partly offset by improved manufacturing on lower scheduled maintenance, and lower expenses

 

 

Non-U.S.

567

 

46

 

+521

 

Higher margins, with favorable mark-to-market derivatives partly offset by weaker industry refining margins, improved manufacturing, and lower expenses, partly offset by reduced market demand; unfavorable identified items (-332, mainly impairment)

 

 

Total

365

 

195

 

+170

 

Margins -360, market demand -420, manufacturing +960, expenses +250, other +80, identified items -340

 

 

Petroleum Product Sales (kbd)

4,862

 

5,412

 

-550

 

 

 

 

Chemical

 

 

 

 

 

 

 

 

 

U.S.

459

 

155

 

+304

 

Higher margins and lower expenses partly offset by lower volumes on weaker demand; unfavorable identified items (-119, mainly impairment)

 

 

Non-U.S.

152

 

551

 

-399

 

Lower margins and volumes on weaker demand partly offset by lower expenses; unfavorable identified items (-90, mainly noncash inventory valuation)

 

 

Total

611

 

706

 

-95

 

Margins +180,  expenses +190, volumes -280, other +20, identified items -210

 

 

Prime Product Sales (kt)

12,182

 

13,471

 

-1,289

 

 

 

 

Corporate and financing

(1,551)

 

(1,558)

 

+7

 

Lower corporate costs offset by higher financing costs

 

6  


 

 

Cash Flow from Operations and Asset Sales excluding Working Capital

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

 

2Q

 

 

 

 

 

 

 

 

 

2020

 

Comments

 

 

Net income (loss) including noncontrolling interests

 

(1,169)

 

Including ($89) million noncontrolling interests

 

 

Depreciation

 

4,916

 

 

 

 

Noncash inventory adjustment

 

(2,069)

 

Including ($147) million noncontrolling interests

 

 

Changes in operational working capital

 

(1,460)

 

Mainly seasonal reduction in payables and inventory build

 

 

Other

 

(218)

 

 

 

 

Cash Flow from Operating

 

-

 

 

 

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Asset sales

 

43

 

 

 

 

Cash Flow from Operations

 

43

 

 

 

 

 

 

and Asset Sales

 

 

 

 

 

 

 

 

Changes in operational working capital

 

1,460

 

 

 

 

Cash Flow from Operations

 

1,503

 

 

 

 

 

 

and Asset Sales excluding Working Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Millions of Dollars

 

 

YTD

 

 

 

 

 

 

 

 

 

2020

 

Comments

 

 

Net income (loss) including noncontrolling interests

 

(1,939)

 

Including ($249) million noncontrolling interests

 

 

Depreciation

 

10,735

 

Including impairment impacts

 

 

Noncash inventory adjustment

 

176

 

Including $2 million noncontrolling interests

 

 

Changes in operational working capital

 

(2,402)

 

Mainly lower payables and inventory build

 

 

Other

 

(296)

 

 

 

 

Cash Flow from Operating

 

6,274

 

 

 

 

 

 

Activities (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Asset sales

 

129

 

 

 

 

Cash Flow from Operations

 

6,403

 

 

 

 

 

 

and Asset Sales

 

 

 

 

 

 

 

 

Changes in operational working capital

 

2,402

 

 

 

 

 

 

Cash Flow from Operations

 

8,805

 

 

 

 

 

 

and Asset Sales excluding Working Capital

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

First Half 2020 Financial Updates

 

During the first six months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $305 million. These shares were acquired to offset dilution in conjunction with the company’s benefit plans and programs. The corporation will continue to acquire shares to offset dilution in conjunction with its benefit plans and programs.

 

 

7  


 

ExxonMobil will discuss financial and operating results and other matters during a webcast at 8:30 a.m. Central Time on July 31, 2020. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Cautionary Statement

Outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions in this release are forward-looking statements. Actual future results, including financial and operating performance; the impact of the COVID-19 pandemic on results; planned capital and cash operating expense reductions and ability to meet announced reduction objectives; total capital expenditures and mix; cash flow, dividend and shareholder returns; business and project plans, timing, costs and capacities; resource recoveries and production rates; accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions; and the impact of new technologies, including to increase capital efficiency and production and to reduce greenhouse gas emissions and intensity, could differ materially due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and differentials; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and global economies and markets; the impact of company actions to protect the health and safety of employees, vendors, customers, and communities; actions of competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the severity, length and ultimate impact of COVID-19 on people and economies; reservoir performance; the outcome of exploration projects and timely completion of development and construction projects; changes in law, taxes, or regulation including environmental regulations, and timely granting of governmental permits; war, trade agreements and patterns, shipping blockades or harassment, and other political or security disturbances; opportunities for and regulatory approval of potential investments or divestments; the actions of competitors; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating difficulties; the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs; the ability to bring new technologies to commercial scale on a cost-competitive basis, including emission reduction technologies and large-scale hydraulic fracturing projects; general economic conditions including the occurrence and duration of economic recessions; and other factors discussed under the heading Factors Affecting Future Results on the Investors page of our website at www.exxonmobil.com and in Item 1A of ExxonMobil’s 2019 Form 10-K. We assume no duty to update these statements as of any future date.

 

Frequently Used Terms and Non-GAAP Measures

This press release includes cash flow from operations and asset sales. Because of the regular nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for 2020 periods is shown on page 7 and for 2020 and 2019 periods in Attachment V.

 

This press release also includes cash flow from operations and asset sales excluding working capital. We believe it is useful for investors to consider these numbers in comparing the underlying performance of our business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for 2020 periods is shown on page 7 and for 2020 and 2019 periods in Attachment V.

 

 

 

8  


 

This press release also includes earnings/(loss) excluding identified items, which are earnings/(loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several segments. We believe it is useful for investors to consider these figures in comparing the underlying performance of our business across periods when one, or both, periods include identified items. A reconciliation to earnings is shown for 2020 and 2019 periods in Attachments II-a and II-b. Corresponding per share amounts are shown on page 1 and in attachment II-a, including a reconciliation to earnings/(loss) per common share – assuming dilution (U.S. GAAP).

 

This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the corporation’s products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue-producing transactions with customers and collected on behalf of governmental authorities (“sales-based taxes”). It combines “Income taxes” and “Total other taxes and duties” with sales‑based taxes, which are reported net in the income statement. We believe it is useful for the corporation and its investors to understand the total tax burden imposed on the corporation’s products and earnings. A reconciliation to total taxes is shown as part of the Estimated Key Financial and Operating Data in Attachment I.

 

References to the resource base and other quantities of oil, natural gas or condensate may include estimated amounts that are not yet classified as “proved reserves” under SEC definitions, but which are expected to be ultimately recoverable. The term “project” as used in this release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Further information on ExxonMobil’s frequently used financial and operating measures and other terms including “Cash flow from operations and asset sales”, and “Total taxes including sales‑based taxes” is contained under the heading “Frequently Used Terms” available through the “Investors” section of our website at www.exxonmobil.com.

 

LIFO Inventory

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The corporation’s results for the first quarter of 2020 included an after-tax earnings charge of $2,096 million from writing down the book value of inventories to their market value at the end of the period. The corporation’s results for the second quarter of 2020 include an after-tax earnings benefit of $1,922 million, mainly reflecting the partial reversal of the first quarter charge due to rising commodity prices. The earnings impact may be adjusted further in future quarters based on prevailing market prices at the time of future evaluations. At year-end, any required adjustment is considered permanent and is incorporated into the LIFO carrying value of the inventory.

 

Reference to Earnings

References to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings, Upstream, Downstream, Chemical and Corporate and financing segment earnings, and earnings per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

 

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships.

 

9  


 

 

Estimated Key Financial and Operating Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Attachment I

Exxon Mobil Corporation

Second Quarter 2020

(millions of dollars, unless noted)

 

 

 

 

 

 

 

First

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

Earnings (Loss) / Earnings (Loss) Per Share

 

 

 

 

 

 

 

 

 

Total revenues and other income

32,605

 

69,091

 

56,158

 

88,763

 

132,716

Total costs and other deductions

34,245

 

64,459

 

56,416

 

90,661

 

123,795

Income (loss) before income taxes

(1,640)

 

4,632

 

(258)

 

(1,898)

 

8,921

 

Income taxes

(471)

 

1,241

 

512

 

41

 

3,124

Net income (loss) including noncontrolling interests

(1,169)

 

3,391

 

(770)

 

(1,939)

 

5,797

 

Net income (loss) attributable to noncontrolling interests

(89)

 

261

 

(160)

 

(249)

 

317

Net income (loss) attributable to ExxonMobil (U.S. GAAP)

(1,080)

 

3,130

 

(610)

 

(1,690)

 

5,480

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share (dollars)

(0.26)

 

0.73

 

(0.14)

 

(0.40)

 

1.28

 

 

 

 

 

 

 

 

 

 

 

 

Earnings (loss) per common share

 

 

 

 

 

 

 

 

 

 

- assuming dilution (dollars)

(0.26)

 

0.73

 

(0.14)

 

(0.40)

 

1.28

 

 

 

 

 

 

 

 

 

 

 

 

Exploration expenses, including dry holes

214

 

333

 

288

 

502

 

613

 

 

 

 

 

 

 

 

 

 

 

 

Other Financial Data

 

 

 

 

 

 

 

 

 

Dividends on common stock

  

 

  

 

 

 

 

 

 

 

Total

3,715

 

3,715

 

3,719

 

7,434

 

7,220

 

Per common share (dollars)

0.87

 

0.87

 

0.87

 

1.74

 

1.69

 

 

 

 

 

 

 

 

 

 

 

 

Millions of common shares outstanding

 

 

 

 

 

 

 

 

 

 

At period end

 

 

 

 

 

 

4,228

 

4,231

 

Average - assuming dilution  

4,271

 

4,271

 

4,270

 

4,270

 

4,270

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of equity at period end

 

 

 

 

 

 

180,183

 

191,377

ExxonMobil share of capital employed at period end

 

 

 

 

 

 

251,998

 

239,033

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

(471)

 

1,241

 

512

 

41

 

3,124

Total other taxes and duties

5,683

 

8,366

 

7,497

 

13,180

 

16,453

 

Total taxes

5,212

 

9,607

 

8,009

 

13,221

 

19,577

Sales-based taxes

3,129

 

5,261

 

4,485

 

7,614

 

10,246

 

Total taxes including sales-based taxes

8,341

 

14,868

 

12,494

 

20,835

 

29,823

 

 

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of income taxes of

 

 

 

 

 

 

 

 

 

equity companies

(18)

 

501

 

460

 

442

 

1,350

 

 

 

 

 

 

 

 

 

 

 

 

10  


 

 

 

 

 

 

 

 

 

 

 

Attachment II-a

 

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Second Quarter 2020

 

 

 

 

 

 

 

 

 

First

 

 

$ Millions

 

Second Quarter

 

Quarter

 

First Half

 

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) (U.S. GAAP)

 

(1,080)

 

3,130

 

(610)

 

(1,690)

 

5,480

 

 

 

 

 

 

 

 

 

 

 

Identified Items Included in Earnings/(Loss)

 

 

 

 

 

 

 

 

 

 

 

Noncash inventory valuation - lower of cost or market

 

1,922

 

-

 

(2,096)

 

(174)

 

-

 

Impairment

 

-

 

-

 

(787)

 

(787)

 

-

 

Non-U.S. tax item

 

-

 

505

 

-

 

-

 

505

Corporate total

 

1,922

 

505

 

(2,883)

 

(961)

 

505

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Excluding Identified Items

 

(3,002)

 

2,625

 

2,273

 

(729)

 

4,975

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

$ Per Common Share1

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Per Common Share

 

 

 

 

 

 

 

 

 

 

Assuming Dilution (U.S. GAAP)

 

(0.26)

 

0.73

 

(0.14)

 

(0.40)

 

1.28

 

 

 

 

 

 

 

 

 

 

 

 

 

Identified Items Included in Earnings/(Loss)

 

 

 

 

 

 

 

 

 

 

Per Common Share Assuming Dilution

 

 

 

 

 

 

 

 

 

 

 

Noncash inventory valuation - lower of cost or market

 

0.44

 

-

 

(0.49)

 

(0.05)

 

-

 

Impairment

 

-

 

-

 

(0.18)

 

(0.18)

 

-

 

Non-U.S. tax item

 

-

 

0.12

 

-

 

-

 

0.12

Corporate total

 

0.44

 

0.12

 

(0.67)

 

(0.23)

 

0.12

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Excluding Identified Items

 

 

 

 

 

 

 

 

 

 

Per Common Share Assuming Dilution

 

(0.70)

 

0.61

 

0.53

 

(0.17)

 

1.16

 

 

 

 

 

 

 

 

 

 

 

1 Computed using the average number of shares outstanding during each period.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

11  


 

 

 

 

 

 

 

 

 

 

Attachment II-b

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Second Quarter 2020

(millions of dollars)

 

 

 

 

 

 

 

First

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

Earnings/(Loss) (U.S. GAAP)

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

(1,197)

 

335

 

(704)

 

(1,901)

 

431

 

Non-U.S.

(454)

 

2,926

 

1,240

 

786

 

5,706

Downstream

 

 

 

 

 

 

 

 

 

 

United States

(101)

 

310

 

(101)

 

(202)

 

149

 

Non-U.S.

1,077

 

141

 

(510)

 

567

 

46

Chemical

 

 

 

 

 

 

 

 

 

 

United States

171

 

(6)

 

288

 

459

 

155

 

Non-U.S.

296

 

194

 

(144)

 

152

 

551

Corporate and financing

(872)

 

(770)

 

(679)

 

(1,551)

 

(1,558)

Net income (loss) attributable to ExxonMobil

(1,080)

 

3,130

 

(610)

 

(1,690)

 

5,480

 

 

 

 

 

 

 

 

 

 

 

 

Identified Items Included in Earnings/(Loss)

 

 

 

 

 

 

 

 

 

U.S. Upstream

 

 

 

 

 

 

 

 

 

 

Other Items (Inventory valuation, Impairment)

45

 

-

 

(360)

 

(315)

 

-

Non-U.S. Upstream

 

 

 

 

 

 

 

 

 

 

Tax Items

-

 

487

 

-

 

-

 

487

 

Other Items (Inventory valuation, Impairment)

168

 

-

 

(259)

 

(91)

 

-

U.S. Downstream

 

 

 

 

 

 

 

 

 

 

Other Items (Inventory valuation, Impairment)

404

 

-

 

(411)

 

(7)

 

-

Non-U.S. Downstream

 

 

 

 

 

 

 

 

 

 

Tax Items

-

 

(9)

 

-

 

-

 

(9)

 

Other Items (Inventory valuation, Impairment)

1,190

 

-

 

(1,531)

 

(341)

 

-

U.S. Chemical

 

 

 

 

 

 

 

 

 

 

Other Items (Inventory valuation, Impairment)

(29)

 

-

 

(90)

 

(119)

 

-

Non-U.S. Chemical

 

 

 

 

 

 

 

 

 

 

Tax Items

-

 

2

 

-

 

-

 

2

 

Other Items (Inventory valuation, Impairment)

144

 

-

 

(232)

 

(88)

 

-

Corporate and financing

 

 

 

 

 

 

 

 

 

 

Tax Items

-

 

25

 

-

 

-

 

25

Corporate total

1,922

 

505

 

(2,883)

 

(961)

 

505

 

 

 

 

 

 

 

 

 

 

 

 

Earnings/(Loss) Excluding Identified Items

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

United States

(1,242)

 

335

 

(344)

 

(1,586)

 

431

 

Non-U.S.

(622)

 

2,439

 

1,499

 

877

 

5,219

Downstream

 

 

 

 

 

 

 

 

 

 

United States

(505)

 

310

 

310

 

(195)

 

149

 

Non-U.S.

(113)

 

150

 

1,021

 

908

 

55

Chemical

 

 

 

 

 

 

 

 

 

 

United States

200

 

(6)

 

378

 

578

 

155

 

Non-U.S.

152

 

192

 

88

 

240

 

549

Corporate and financing

(872)

 

(795)

 

(679)

 

(1,551)

 

(1,583)

Corporate total

(3,002)

 

2,625

 

2,273

 

(729)

 

4,975

12  


 

 

 

 

 

 

 

 

 

 

 

Attachment III

 

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Second Quarter 2020

 

 

 

 

 

 

 

 

 

First

 

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

Net production of crude oil, natural gas

 

 

 

 

 

 

 

 

 

liquids, bitumen and synthetic oil,

 

 

 

 

 

 

 

 

 

thousand barrels per day (kbd)

 

 

 

 

 

 

 

 

 

 

 

United States

628

 

662

 

699

 

664

 

631

 

 

Canada / Other Americas

483

 

469

 

558

 

520

 

462

 

 

Europe

31

 

103

 

30

 

31

 

112

 

 

Africa

333

 

383

 

360

 

346

 

376

 

 

Asia

783

 

727

 

795

 

789

 

736

 

 

Australia / Oceania

48

 

45

 

38

 

43

 

41

 

 

 

Worldwide

2,306

 

2,389

 

2,480

 

2,393

 

2,358

 

 

 

 

 

 

 

 

 

 

 

 

 

Natural gas production available for sale,

 

 

 

 

 

 

 

 

 

million cubic feet per day (mcfd)

 

 

 

 

 

 

 

 

 

 

 

United States

2,642

 

2,803

 

2,825

 

2,733

 

2,758

 

 

Canada / Other Americas

269

 

249

 

317

 

293

 

243

 

 

Europe

619

 

1,215

 

1,293

 

956

 

1,662

 

 

Africa

4

 

5

 

7

 

6

 

6

 

 

Asia

3,218

 

3,461

 

3,710

 

3,464

 

3,557

 

 

Australia / Oceania

1,238

 

1,387

 

1,244

 

1,241

 

1,294

 

 

 

Worldwide

7,990

 

9,120

 

9,396

 

8,693

 

9,520

 

 

 

 

 

 

 

 

 

 

 

 

 

Oil-equivalent production (koebd)1

3,638

 

3,909

 

4,046

 

3,842

 

3,945

 

 

 

 

 

 

 

 

 

 

 

 

 

1 Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

 

 

 

 

 

 

 

 

 

13  


 

 

 

 

 

 

 

 

 

 

Attachment IV

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Second Quarter 2020

 

 

 

 

 

 

 

 

First

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

Refinery throughput (kbd)

 

 

 

 

 

 

 

 

 

 

United States

1,440

 

1,430

 

1,558

 

1,499

 

1,402

 

Canada

278

 

344

 

383

 

330

 

364

 

Europe

1,085

 

1,314

 

1,295

 

1,190

 

1,320

 

Asia Pacific

568

 

683

 

637

 

603

 

646

 

Other

145

 

159

 

187

 

166

 

176

 

 

Worldwide

3,516

 

3,930

 

4,060

 

3,788

 

3,908

 

 

 

 

 

 

 

 

 

 

 

Petroleum product sales (kbd)

 

 

 

 

 

 

 

 

 

 

United States

1,959

 

2,264

 

2,231

 

2,095

 

2,237

 

Canada

353

 

482

 

456

 

405

 

483

 

Europe

1,130

 

1,443

 

1,403

 

1,266

 

1,476

 

Asia Pacific

640

 

775

 

708

 

674

 

762

 

Other

355

 

444

 

489

 

422

 

454

 

 

Worldwide

4,437

 

5,408

 

5,287

 

4,862

 

5,412

 

 

 

 

 

 

 

 

 

 

 

 

Gasolines, naphthas

1,736

 

2,198

 

2,122

 

1,929

 

2,173

 

Heating oils, kerosene, diesel

1,649

 

1,820

 

1,867

 

1,758

 

1,867

 

Aviation fuels

147

 

391

 

383

 

265

 

389

 

Heavy fuels

262

 

308

 

256

 

259

 

304

 

Specialty products

643

 

691

 

659

 

651

 

679

 

 

Worldwide

4,437

 

5,408

 

5,287

 

4,862

 

5,412

 

 

 

 

 

 

 

 

 

 

Chemical prime product sales,

 

 

 

 

 

 

 

 

 

thousand metric tons (kt)

 

 

 

 

 

 

 

 

 

 

United States

1,985

 

2,295

 

2,195

 

4,180

 

4,617

 

Non-U.S.

3,960

 

4,404

 

4,042

 

8,002

 

8,854

 

 

Worldwide

5,945

 

6,699

 

6,237

 

12,182

 

13,471

 

 

 

 

 

 

14  


 

 

 

 

 

 

 

 

 

 

Attachment V

 

 

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Second Quarter 2020

(millions of dollars)

 

 

 

 

 

 

 

First

 

 

 

 

 

Second Quarter

 

Quarter

 

First Half

 

 

 

2020

 

2019

 

2020

 

2020

 

2019

Capital and Exploration Expenditures

 

 

 

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

United States

1,637

 

3,255

 

2,798

 

4,435

 

5,803

 

 

Non-U.S.

1,940

 

2,987

 

2,328

 

4,268

 

5,800

 

 

Total

3,577

 

6,242

 

5,126

 

8,703

 

11,603

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

United States

719

 

624

 

747

 

1,466

 

1,038

 

 

Non-U.S.

334

 

489

 

487

 

821

 

904

 

 

Total

1,053

 

1,113

 

1,234

 

2,287

 

1,942

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

United States

563

 

553

 

597

 

1,160

 

1,105

 

 

Non-U.S.

132

 

165

 

185

 

317

 

309

 

 

Total

695

 

718

 

782

 

1,477

 

1,414

 

 

 

 

 

 

 

 

 

 

 

 

 

Other

2

 

6

 

1

 

3

 

10

 

 

 

 

 

 

 

 

 

 

 

 

 

Worldwide

5,327

 

8,079

 

7,143

 

12,470

 

14,969

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operations and asset sales excluding working capital

 

 

 

 

 

 

Net cash provided by operating activities

 

 

 

 

 

 

 

 

 

(U.S. GAAP)

-

 

5,947

 

6,274

 

6,274

 

14,285

Proceeds associated with asset sales

43

 

33

 

86

 

129

 

140

Cash flow from operations and asset sales

43

 

5,980

 

6,360

 

6,403

 

14,425

Changes in operational working capital

1,460

 

1,243

 

942

 

2,402

 

(1,014)

Cash flow from operations and asset sales

1,503

 

7,223

 

7,302

 

8,805

 

13,411

 

 

excluding working capital

 

 

 

 

 

 

 

 

 

15  


 

 

 

 

 

 

 

 

 

Attachment VI

 

 

 

 

 

 

 

 

 

 

Exxon Mobil Corporation

Earnings/(Loss)

 

 

 

 

 

 

$ Millions

 

$ Per Common Share1

 

 

 

 

 

 

 

 

 

 

 

2016

 

 

 

 

 

 

 

First Quarter

 

1,810

 

 

0.43

 

 

Second Quarter

 

1,700

 

 

0.41

 

 

Third Quarter

 

2,650

 

 

0.63

 

 

Fourth Quarter

 

1,680

 

 

0.41

 

 

 

 

Year

 

7,840

 

 

1.88

 

 

 

 

 

 

 

 

 

 

 

 

2017

 

 

 

 

 

 

 

First Quarter

 

4,010

 

 

0.95

 

 

Second Quarter

 

3,350

 

 

0.78

 

 

Third Quarter

 

3,970

 

 

0.93

 

 

Fourth Quarter

 

8,380

 

 

1.97

 

 

 

 

Year

 

19,710

 

 

4.63

 

 

 

 

 

 

 

 

 

 

2018

 

 

 

 

 

 

 

First Quarter

 

4,650

 

 

1.09

 

 

Second Quarter

 

3,950

 

 

0.92