ExxonMobil’s full-year 2017 earnings of $19.7 billion were
up 151% year-over-year. Earnings excluding US tax reform
and impairments were $15.3 billion, up 52% from $10.1 billion in 2016. Hurricane Harvey reduced earnings by an estimated $250 million. Cash flow from operations and asset
sales was $33.2 billion, including proceeds associated with
asset sales of $3.1 billion. Capital and exploration expenditures were $23.1 billion, up 20% from 2016. Production
was 4 million boe/d, down 2% from the prior year. Excluding entitlement effects and divestments, production was flat
with the prior year.
Full-year 2017 upstream earnings were $13.4 billion, up
$13.2 billion from 2016. Higher realizations increased earnings by $5.3 billion. Unfavorable volume and mix effects decreased earnings by $440 million. All other items increased
earnings by $8.3 billion, primarily due to the $7.1 billion
noncash impact from US tax reform, lower asset impairments of $659 million, lower expenses, and gains from asset
Production of 4 million boe/d for full-year 2017 was down
2% compared to 2016. Liquids production of 2. 3 million b/d
decreased 82,000 b/d as field decline and lower entitlements
were partly offset by increased project volumes and work
programs. Natural gas production of 10. 2 bcfd increased 84
MMcfd from 2016 as project ramp-up, primarily in Australia, was partly offset by field decline and regulatory restrictions in the Netherlands.
US upstream earnings were $6.6 billion in 2017, including $7.6 billion of tax reform benefits and asset impairments
of $521 million. US upstream earnings excluding US tax reform and impairments were a loss of $459 million. Non-US
upstream earnings were $6.7 billion, including asset impairments of $983 million and unfavorable impacts of $480 million from US tax reform. Non-US upstream earnings excluding US tax reform and impairments were $8.2 billion.
Downstream earnings of $5.6 billion in 2017 increased
$1.4 billion from 2016. Stronger refining and marketing
margins increased earnings by $1.5 billion, while volume
and mix effects decreased earnings by $30 million. All other
items decreased earnings by $40 million, driven by the absence of a $904 million gain from the Canadian retail assets
sale, and Hurricane Harvey related expenses, which were
mostly offset by $618 million of US tax reform impacts and
non-US asset management gains in the current year.
During 2017, ExxonMobil purchased 6 million shares of its
common stock at a gross cost of $496 million to offset dilution
related to the company’s benefit plans and programs. ExxonMobil said it will continue to do so, but that there are currently no
plans to make purchases to reduce shares outstanding. The company issued a combined 96 million shares of common stock during the first-quarter to complete the acquisition of InterOil Corp.
(OGJ Online, Feb. 15, 2017) and the acquisition of entities that
own oil and gas properties in the Permian basin.
5 years—two-thirds in the upstream market and one-third
in the downstream market—to increase production and enhance its integrated portfolio. “The impact of tax reform on
our earnings reflects the magnitude of our historic investment in the US and strengthens our commitment to further
grow our business here,” ExxonMobil Chairman and Chief
Executive Officer Darren W. Woods.
The company recently announced plans to triple total
daily production from its Permian basin operations by 2025
and invest $2 billion in terminal and transportation expansions in the area (OGJ Online, Jan. 30, 2017).
US upstream earnings were $7.1 billion in fourth-quarter
2017, including $7.6 billion for tax reform and asset impairments of $481 million. US upstream earnings excluding US
tax reform and impairments were a loss of $60 million. Non-US upstream earnings were $1.3 billion, including asset impairments of $807 million and unfavorable impacts of $480
million from US tax reform. Non-US upstream earnings excluding US tax reform and impairments were $2.6 billion.
Global fourth-quarter upstream earnings were $8.4 billion, up $9 billion from fourth-quarter 2016, driven by US
tax reform impacts. Fourth-quarter earnings excluding US
tax reform and impairments increased $1 billion, to $2.5 billion, driven by higher prices as liquids realizations increased
more than $10/bbl.
Also adjusting for charges for US tax reform and impairments, ExxonMobil reported fourth-quarter 2017 net
income of $3.7 billion, a 2% decrease from fourth-quarter
2016 attributed primarily to the company’s international
downstream segment. Full-year 2017 earnings were $19.7
billion compared with $7.8 billion in 2016.
Downstream earnings in the fourth quarter were $1.6 billion, including $618 million from US tax reform. Earnings
excluding US tax reform and impairments declined $289
million, to $952 million, as the absence of last year’s Canada
retail divestment gain of $522 million was partially offset by
higher margins and asset management gains in the current
quarter. Chemical earnings were $1.3 billion in the fourth
quarter. Excluding the $335 million impact from US tax reform, chemical earnings increased $63 million, or 7%, due
to higher sales. Prime product sales of 6. 8 million tonnes
were the highest in a decade.
Production was down 130,000 boe/d, or 3%, in fourth-quarter 2017 compared with fourth-quarter 2016. Liquids
production totaled 2. 3 million b/d, down 133,000 b/d as
field decline and lower entitlements were partly offset by
higher volumes from work programs and projects. Natural
gas production was 10. 4 bcfd, up 17 MMcfd from 2016, as
project ramp-up and work programs were partly offset by
field decline and lower demand.