ExxonMobil (XOM) Tops Q3 EPS by 18c

(Updated - October 31, 2014 8:07 AM EDT)

ExxonMobil (NYSE: XOM) reported Q3 EPS of $1.89, $0.18 better than the analyst estimate of $1.71. Revenue was $107.5 billion, versus estimates of $105.5 billion.

CEO Rex Tillerson commented: “Earnings in the period rose 3 percent from the third quarter of 2013, driven by higher margins and improved operations in the Downstream and Chemical businesses, partially offset by the impact of lower Upstream realizations.
ExxonMobil’s quarterly results demonstrate the strength of our integrated business model. Integration across Upstream, Downstream and Chemical gives us competitive advantages in scale, efficiency, technical and commercial capabilities, regardless of market fluctuations over the business cycle.

"The Corporation’s cash flow from oprations and asset sales through the first nine months of 2014 fully covered net investments and shareholder distributions.

"We continue to meet our operational and project development objectives. Upstream production for 2014 remains on track with previous full-year estimates of 4 million oil-equivalent barrels per day as the company adds new production from project startups."

Y/Y Operating Metrics:

Upstream earnings were $6,416 million in the third quarter of 2014, down $297 million from the third quarter of 2013. Lower realizations decreased earnings by $670 million. Favorable volume mix effects increased earnings by $340 million. All other items increased earnings by $30 million.

On an oil-equivalent basis, production decreased 4.7 percent from the third quarter of 2013. Excluding the impact of the expiry of the Abu Dhabi onshore concession, production decreased 1 percent.

Liquids production totaled 2,065 kbd (thousands of barrels per day), down 134 kbd from the third quarter of 2013. The Abu Dhabi onshore concession expiry reduced volumes by 148 kbd. Excluding this impact, liquids production was up slightly as project ramp-up and work programs more than offset field decline, divestment impacts and higher downtime.

Third quarter natural gas production was 10,595 mcfd (millions of cubic feet per day), down 319 mcfd from 2013. Field decline and lower entitlement volumes were partly offset by new production from Papua New Guinea and work programs.

Earnings from U.S. Upstream operations were $1,257 million, $207 million higher than the third quarter of 2013. Non-U.S. Upstream earnings were $5,159 million, down $504 million from the prior year.

Downstream earnings were $1,024 million, up $432 million from the third quarter of 2013. Stronger margins, primarily refining, increased earnings by $820 million. Volume and mix effects increased earnings by $100 million. All other items, primarily foreign exchange impacts, decreased earnings by $490 million. Petroleum product sales of 5,999 kbd were 32 kbd lower than last year's third quarter.

Earnings from the U.S. Downstream were $460 million, up $145 million from the third quarter of 2013. Non-U.S. Downstream earnings of $564 million were $287 million higher than last year.

For earnings history and earnings-related data on ExxonMobil (XOM) click here.

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