--> XOM -0.13% 58k shares traded
Exxon Mobil reports Q4 (Dec) results, revs in-line
- Reports Q4 (Dec) earnings of $0.41 per share, including about $2 bln in charges, may not be comparable to the Capital IQ Consensus of $0.71; revenues rose 2.0% year/year to $61.02 bln vs the $60.9 bln Capital IQ Consensus
- As disclosed in the co's Q3 2016 Form 10-Q filing, continued weakness in the upstream industry environment during 2016, continued weak financial results for several assets in North America, and a reduction in the mid-point of the ranges of the corp's long-term oil and natural gas prices developed as part of its annual planning and budgeting cycle, led the corporation to conclude that the facts and circumstances supported performing an impairment assessment of certain long-lived assets, notably North America natural gas assets and certain other assets across the remainder of its Upstream operations..... results include an after-tax charge of $2 bln to reduce the carrying value of those assets to fair value. The asset groups subject to this impairment charge are primarily dry gas operations in the Rocky Mountains region of the United States with large undeveloped acreage positions.
Upstream:
- Upstream earnings were a loss of $642 mln in Q4 of 2016, including an impairment charge of $2 bln mainly related to dry gas operations with undeveloped acreage in the Rocky Mountains region of the U.S.
- Excluding the impairment charge, earnings were $1.4 bln, up $528 mln from Q4 of 2015
- Higher liquids realizations partially offset by lower gas realizations increased earnings by a net $510 mln
- Lower volume and mix effects decreased earnings by $50 mln. All other items, including lower expenses partly offset by the absence of favorable non-U.S. tax items from the prior year, increased earnings by $70 mln
- On an oil-equivalent basis, production was down 127,000 barrels per day, or 3%, compared with the fourth quarter of 2015. Liquids production totaled 2.4 mln barrels per day, down 97,000 barrels per day as field decline and lower entitlements were partly offset by increased project volumes, notably in Nigeria and Indonesia
- Natural gas production was 10.4 bln cubic feet per day, down 179 mln cubic feet per day from 2015 as higher project volumes were more than offset by field decline and lower entitlements
- U.S. Upstream earnings were a loss of $2.3 bln in Q4 of 2016, including an impairment charge of $2 bln. Excluding the impairment charge, earnings were a loss of $301 mln, an improvement of $237 mln from Q4 of 2015. Non-U.S. Upstream earnings were $1.7 bln, up $291 mln from the prior year period.
Downstream:
- Downstream earnings were $1.2 bln, down $110 mln from Q4 of 2015
- Weaker refining and marketing margins decreased earnings by $570 mln, while favorable volume and mix effects increased earnings by $200 mln. All other items increased earnings by $260 mln as gains from divestments in Canada were partly offset by higher maintenance expense and unfavorable foreign exchange impacts.
- Petroleum product sales of 5.5 mln barrels per day were down 173,000 barrels per day from the prior year mainly reflecting the divestment of refineries in California and Louisiana
- Earnings from the U.S. Downstream were $270 mln, down $165 mln from Q4 of 2015. Non-U.S. Downstream earnings of $971 mln were $55 mln higher than prior year.