First Quarter 2013 Earnings Call David Rosenthal Vice President - - PowerPoint PPT Presentation

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First Quarter 2013 Earnings Call David Rosenthal Vice President - - PowerPoint PPT Presentation

First Quarter 2013 Earnings Call David Rosenthal Vice President Investor Relations & Secretary April 25, 2013 Cautionary Statement Forward-Looking Statements. Outlooks, forecasts, estimates, targets, business plans, and other statements of


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First Quarter 2013 Earnings Call

David Rosenthal Vice President Investor Relations & Secretary April 25, 2013

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Cautionary Statement

Forward-Looking Statements. Outlooks, forecasts, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; ExxonMobil’s production growth and mix; the amount and mix of capital expenditures; future distributions; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; drilling programs; product sales and mix; corporate and financing expenses; and the impact of technology could differ materially due to a number of factors. These include changes in oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; the outcome of exploration; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation, including tax and environmental regulations; the outcome of commercial negotiations; the actions of competitors and customers; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investors section of our Web site at exxonmobil.com. See also Item 1A of ExxonMobil’s 2012 Form 10-K. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date. Frequently Used Terms. References to barrels of oil or bitumen and similar terms include quantities of oil and gas that are not yet classified as proved reserves under SEC definitions but that we believe will likely be developed and moved into the proved reserves category in the future. For definitions and more information regarding resources, reserves, return on average capital employed, cash flow from operations and asset sales, and other terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms" posted on the Investors section of our Web

  • site. The Financial and Operating Review on our Web site also shows ExxonMobil's net interest in specific projects.

The term “project” as used in this presentation does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment reporting. For example, a single project for purposes of the rule may encompass numerous properties, agreements, investments, developments, phases, work efforts, activities and components, each of which we may also informally describe herein as a “project.”

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Business Environment

Global economic growth was mixed in the first quarter

■ U.S. economic growth moderate ■ China’s growth rate slowed ■ European economies remain challenged ■ Crude oil and non-U.S. natural gas prices increased; U.S. natural gas prices flat ■ Industry refining margins strengthened ■ Chemical commodity product margins improved

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1Q13 Financial Results

Continued strong results, including earnings per share growth of 6% from a year ago

Earnings 9.5 Earnings Per Share – Diluted (dollars) 2.12 Shareholder Distributions 7.6 CAPEX 11.8 Cash Flow from Ops and Asset Sales* 14.0 Cash 6.6 Debt 13.4

Billions of dollars unless specified otherwise Note: cash includes restricted cash of $376M. * Includes $0.4B associated with asset sales.

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1Q13 Sources and Uses of Funds

Cash generation continues to fund a robust investment program and industry-leading shareholder distributions

Note: beginning and ending balances include restricted cash of $341M and $376M respectively.

Beginning Cash 9.9 Earnings 9.5 Depreciation 4.1 Working Capital / Other 0.0 Proceeds Associated with Asset Sales 0.4 Additions to PP&E (7.5) Shareholder Distributions (7.6) Additional Financing / Investing (2.2) Ending Cash 6.6

Billions of dollars unless specified otherwise

14.0

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Total Earnings – 1Q13 vs. 1Q12

Earnings increased by $50M, as higher Chemical earnings and lower corporate and financing expenses were mostly offset by lower Upstream earnings

1Q12 U/S D/S Chem C&F 1Q13

9,450 (765) (41) 436 420 9,500

Millions of Dollars

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Total Earnings – 1Q13 vs. 4Q12

Earnings decreased by $450M as lower Upstream and Downstream earnings were partly offset by higher Chemical earnings and lower corporate and financing expenses

4Q12 U/S D/S Chem C&F 1Q13

9,950 (725) (223) 179 319 9,500

Millions of Dollars

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Upstream

Major Projects

Continue to advance global portfolio of high-quality projects

■ Kearl development progressing

 Processing bitumen  Expansion project 32% complete

■ Telok gas field commenced

production

 On schedule and within budget

■ Hadrian North appraisal drilling

completed

■ Erha North Phase 2 sanctioned

Installation of the Telok A Platform

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Upstream

Conventional Exploration

Active exploration drilling program

■ Tanzania

 Tangawizi-1 – significant gas discovery  Zafarani-2 – successful appraisal well  Additional drilling in 2013

■ Gulf of Mexico

 Phobos - encouraging early results  Preparing to drill Thorn prospect

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Upstream

Conventional Exploration

Increasing portfolio of high-quality opportunities

■ Russia Arctic

 Expanded Rosneft SCA  Additional 150M gross acres

■ Liberia

 New Country Entry  500K net acres offshore

■ Gulf of Mexico

 Awarded high bid blocks from Western OCS Sale 229  Successful bidder in Central OCS Sale 227  Acquired Maui interest

LIBERIA SIERRA LEONE

50 KM

ExxonMobil

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Upstream

Unconventional Liquids

Progressing high-potential, liquids-rich unconventional opportunities

■ Celtic Acquisition

 Significant acreage position in liquids- rich plays

■ Bakken

 Growing production  Focused development drilling activity

■ Woodford Ardmore

 Growing production  Encouraging results in Marietta Basin  Delineating Caney Shale potential

ALBERTA BRITISH COLOMBIA

Celtic IOL / EM Canada

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Upstream

Earnings – 1Q13 vs. 1Q12

Earnings decreased $765M due to lower liquids realizations, lower volumes, and higher expenses, partly offset by higher gas realizations

1Q12 Realization Vol/Mix Other 1Q13

7,802 (230) (280) (250) 7,037

Millions of Dollars

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koebd

Upstream

Volumes – 1Q13 vs. 1Q12

Volumes decreased 3.5%: liquids -21 kbd, natural gas -823 mcfd

1Q12 Entitlements Quotas Divestments Net Growth 1Q13

4,553 11 (26) (55) 4,395

Price/Spend: +48 Net Interest: (136)

(88)

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Upstream

Earnings – 1Q13 vs. 4Q12

Earnings decreased $725M mainly due to the absence of gains on asset sales and tax items, partly offset by higher realizations

4Q12 Realization Vol/Mix Other 1Q13

7,762 340 (80) (980) 7,037

Millions of Dollars

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Upstream

Volumes – 1Q13 vs. 4Q12

Volumes increased 2.4%: liquids -10 kbd, natural gas +672 mcfd

4Q12 Entitlements Quotas Divestments Net Growth 1Q13 Price/Spend: (70) Net Interest: (2)

4,293 (72) (10) 184 4,395

koebd

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Downstream

Earnings – 1Q13 vs. 1Q12

1Q12 Margin Vol/Mix Other 1Q13

Millions of Dollars

1,586 780 (290) (530) 1,545

Earnings decreased $41M as lower gains on asset sales and lower volumes were offset by improved refining margins

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Downstream

Earnings – 1Q13 vs. 4Q12

Earnings decreased $223M reflecting lower volumes and the absence

  • f a LIFO gain, partly offset by improved refining margins

4Q12 Margin Vol/Mix Other 1Q13

Millions of Dollars

1,768 470 (430) (260) 1,545

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Chemical

Earnings – 1Q13 vs. 1Q12

Earnings increased $436M due to stronger commodity margins and gains on asset sales

1Q12 Margin Vol/Mix Other 1Q13

Millions of Dollars

701 320 120 1,137

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Chemical

Earnings – 1Q13 vs. 4Q12

Earnings increased $179M due to improved commodity margins and gains on asset sales

4Q12 Margin Vol/Mix Other 1Q13

Millions of Dollars

958 80 10 90 1,137

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Summary

ExxonMobil’s financial and operating performance reflects the value of

  • ur strong integrated business model

* Includes $0.4B associated with asset sales

■ ExxonMobil possesses unique

strengths that create long-term shareholder value

 Balanced portfolio  Disciplined investing  High-impact technologies  Operational excellence  Global integration

Billions

1Q13 Earnings $9.5 Cash Flow from Ops and Asset Sales* $14.0 Capex $11.8 Shareholder Distributions $7.6

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Questions and Answers