Third Quarter Third Quarter 2014 Earnings Call 2014 Earnings Call - - PowerPoint PPT Presentation
Third Quarter Third Quarter 2014 Earnings Call 2014 Earnings Call - - PowerPoint PPT Presentation
Third Quarter Third Quarter 2014 Earnings Call 2014 Earnings Call Jeff Woodbury Vice President Investor Relations & Secretary October 31, 2014 Cautionary Statement Forward-Looking Statements. Outlooks, expectations, forecasts,
- Forward-Looking Statements. Outlooks, expectations, 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 volume/production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; drilling programs; product sales and mix; dividend and share purchase levels; cash and debt balances; corporate and financing expenses; and the impact
- f 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; the occurrence and duration of economic recessions; reservoir performance; the outcome of exploration; timely completion of development projects; war and
- ther political or security disturbances; changes in law or government regulation, including sanctions as well as tax and
environmental regulations; the outcome of commercial negotiations; opportunities for investments or divestments that may arise; the actions of competitors and customers; unexpected technological developments; 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 2013 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 resources, barrels of oil, volumes of gas and liquids, and similar terms include
quantities 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. Shareholder distributions referred to in this presentation mean cash dividends plus shares purchased to reduce shares outstanding (excluding anti-dilutive purchases). For definitions and more information regarding resources, reserves, return on average capital employed, cash flow from
- perations and asset sales, free cash flow,, 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 can refer to a variety of different activities and does not necessarily have
the same meaning as in any government payment transparency reports.
Cautionary Statement
2
■ Financial results reflect the strength of our integrated business model ■ Year-to-date cash flow from operations and asset sales fully covered net
investments and robust shareholder distributions
■ Meeting operational and project development objectives; On track to deliver 4.0
MOEBD full-year production plan
Headlines
3
■ U.S. economy expanded at a moderate pace ■ China’s economic growth tapered slightly ■ Signs of European economy weakening ■ Crude oil prices decreased sharply; lower Henry Hub prices ■ WTI spread to Brent narrowed ■ Global industry refining margins remained flat ■ Chemical commodity and specialty margins strengthened
Business Environment
4
Mixed economic growth in Mixed economic growth in the third quarter the third quarter
Earnings Earnings 8.1 8.1 Earnings Per Earnings Per Share – Share – Diluted iluted (dollars) 1.89 1.89 Shareholder Distributi Shareholder Distributions
- ns
5.9 5.9 CAPE CAPEX 9.8 9.8 Cash Flow from Cash Flow from Operati Operations and Asset Sales ns and Asset Sales1 12.5 12.5 Cash Cash2 5.0 5.0 Debt Debt 21.8 21.8
Billions of dollars unless specified otherwise
1 Includes $0.1B associated with asset sales 2 Includes restricted cash of $0.1B
3Q14 Financial Results
5
Cash decreased by $1.3B in the third quarter Cash decreased by $1.3B in the third quarter
1 Beginning and ending balances include restricted cash of $0.2B and $0.1B, respectively 2 Includes PP&E adds of ($8.2B) and net advances of $0.3B
Beginning Cash Beginning Cash1 6.3 6.3 Earnings 8.1 8.1 Depreciation 4.4 4.4 Working Capital / Other (0.1) (0.1) Proceeds Associated with Asset Sales 0.1 0.1 PP&E Adds / Investments and Advances2 (7.9) (7.9) Shareholder Distributions (5.9) (5.9) Other Financing 0.0 0.0 Ending Cash Ending Cash1 5.0 5.0
Billions of dollars unless specified otherwise
12.5 12.5
3Q14 Sources and Uses of Funds
6
3Q13 3Q13 U/S U/S D/S /S Chem Chem C&F C&F 3Q14 Q14
7, 7,870 870 (297) (297) 432 432 175 175 (110) (110) 8, 8,070 070
Total Earnings – 3Q14 vs. 3Q13
7
Millions of Dollars
Earnings Earnings increased $200M, reflecting increased $200M, reflecting higher higher Downstream and Chemical Downstream and Chemical margins margins, partly offs partly offset by et by lower lower Upstream liquids Upstream liquids realizations realizations
2Q14 2Q14 U/S U/S D/S /S Chem Chem C&F C&F 3Q14 Q14
8, 8,780 780 (1,465) 465) 313 313 359 359 83 83
Total Earnings – 3Q14 vs. 2Q14
8
8, 8,070 070
Millions of Dollars
Earnings Earnings decreased by decreased by $710M as lower $710M as lower gains on Upstream asset sales were gains on Upstream asset sales were partially offs partially offset by et by higher higher Do Downstream and Chemical earnings wnstream and Chemical earnings
Upstream
Earnings Earnings decreased $297M due to lower liq decreased $297M due to lower liquids uids realizations realizations, partly offset by , partly offset by favorable sales mix effects favorable sales mix effects
3Q13 3Q13 Realizatio Realization Vol/Mix
- l/Mix
Other Other 3Q14 Q14
6, 6,713 713 (670) (670) 340 340 30 30 6,416 6,416
Millions of Dollars
Earnings – 3Q14 vs. 3Q13
9
Volumes decreased 1.0%*: Volumes decreased 1.0%*: Liquids Liquids +14 +14 kbd, natural gas -319 kbd, natural gas -319 mcfd mcfd
3Q13 3Q13 UA UAE Expiry E Expiry Entitl Entitlements ements Divestments Divestments Net Growth Net Growth 3Q14 Q14
koebd
Upstream
4, 4,018 018 (46 (46) (36 36) 43 43 3, 3,831 831
Price/Spend: -44 Net Interest:
- 2
Volumes – 3Q14 vs. 3Q13
Liquids: +51 Gas:
- 8
* Excludes the impact of the UAE onshore concession expiry
(148 148)
10 3Q13 3Q14 Delta % Delta % Liquids (KBD) 2,199 2,065
- 134
- 6.1%
+14 +0.6% Gas (MCFD) 10,914 10,595
- 319
- 2.9%
- 319
- 2.9%
Total (KOEBD) 4,018 3,831
- 187
- 4.7%
- 39
- 1.0%
Ex-UAE Expiry Impact:
Upstream
Earnings Earnings decreased $1.5B due to decreased $1.5B due to lo lower gains on asset sales and lower wer gains on asset sales and lower realizations realizations, partly offset by , partly offset by favorable sales mix effects favorable sales mix effects
2Q14 2Q14 Realizatio Realization Vol/Mix
- l/Mix
Other Other 3Q14 Q14
7,881 7,881 (850) (850) 460 460 (1,070) 070)
Millions of Dollars
Earnings – 3Q14 vs. 2Q14
11
6, 6,416 416
Volumes essentially flat: Volumes essentially flat: Liquids Liquids +17 +17 kbd, natural gas -155 kbd, natural gas -155 mcfd mcfd
koebd
Upstream
Volumes – 3Q14 vs. 2Q14
2Q14 2Q14 Entitlements Entitlements Divestments Divestments Net Growth Net Growth 3Q14 Q14
3, 3,840 840 6 (13 (13) (2) (2) 3, 3,831 831
Price/Spend: +6 Liquids: +16 Gas:
- 18
12
Downstream
Earnings Earnings increased $432M due to higher increased $432M due to higher re refining margins fining margins, partially offs partially offset by et by unfavorable forex and other effects unfavorable forex and other effects
3Q13 3Q13 Margin Margin Vol/Mix Vol/Mix Other ther 3Q14 3Q14
592 592 820 820 100 100 (490) (490) 1, 1,024 024
Earnings – 3Q14 vs. 3Q13
13
Millions of Dollars
Downstream 2Q14 2Q14 Margin Margin Vol/Mix Vol/Mix Other ther 3Q14 3Q14
711 711 310 310 210 210 (210) (210) 1, 1,024 024
Earnings – 3Q14 vs. 2Q14
14
Millions of Dollars
Earnings Earnings increased $313M reflecting hi increased $313M reflecting higher gher non-U.S. refining margins non-U.S. refining margins and and lo lower m wer maintenance, p intenance, partly o rtly offset by fset by unfavorable fo unfavorable forex and o rex and other e her effects fects
Chemical 3Q13 3Q13 Margin Margin Vol/Mix Vol/Mix Other ther 3Q14 3Q14
1, 1,025 025 10 10 (40 (40) 1, 1,200 200
Earnings – 3Q14 vs. 3Q13
15
210 210
Millions of Dollars
Earning Earnings increased $175M due to increased $175M due to higher higher commodity margins commodity margins
Chemical 2Q14 2Q14 Margin Margin Vol/Mix Vol/Mix Other ther 3Q14 3Q14
841 841 (10 (10) 20 20 1, 1,200 200
Earnings – 3Q14 vs. 2Q14
16
350 350
Millions of Dollars
Earnings Earnings increased $359M reflecti increased $359M reflecting stronger ng stronger product margins product margins
10 20 30 40
Dividends Dividends
Free Cash Flow: $19.4 billion, increased by $12.0 billion vs. 2013 YTD
Share Purchases
Strong Year-To-Date Cash Flow
$B
Cash Flow Cash Flow from Operati from Operations and Asset and Asset Sales Sales 1
1
PP&E Adds PP&E Adds / / Investmen Investments and s and Advances Advances 2
2
Shareh Shareholder
- lder
Distri Distribu butions Oth Other r Finan Financin ing g
41.5 41.5 (22.1) (22.1) (17.6) (17.6) (1.7 (1.7) 0.1 0.1
Change in Cash Change in Cash Balan Balance
1 Includes $3.8B associated with asset sales 2 Includes PP&E adds of ($24.1B) and net advances of $2.0B
17
YTD cash flow more than covered investments and shareh YTD cash flow more than covered investments and shareholder distributions
- lder distributions
Delivering Profitable Growth
Banyu Urip, Indonesia
On track for a On track for a recor record start-up start-up year; adding 300 year; adding 300 koebd koebd net capacity et capacity
Upstream
Analyst Mtg. $112 Brent Actuals at $109 Brent
■ 1H2014 start-ups
- PNG LNG
- CLOV
- Damar gas
■ Recent achievements
- Increased Banyu Urip early production
- Started up Tapis EOR
- Completed Qatargas 1 Plateau Maintenance
■ Advancing several 4Q start-ups
- Arkutun-Dagi
- Hadrian South and Lucius
- Cold Lake Nabiye
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■ Continuing Bakken development
- 38% annual growth
- Optimizing completions, pad development
■ Robust growth in the Woodford
- 25% annual growth
- Ardmore pad development
- Delineating Marietta
■ Growing and delineating Permian
unconventional
- 8% annual growth
- Acquired additional acreage in the Wolfcamp
U.S. Onshore Liquids
Upstream
Gro Growing hig ing high-m
- margin liq
argin liquids p uids production
- duction
19
Permian Basin
New Opportunity Growth
Upstream
Successfully progressing high Successfully progressing high potential exploration plays potential exploration plays
■ Progressing opportunities in Romania
- Evaluating Domino gas discovery
- Drilling Pelican South wildcat well
■ Drilled seventh gas discovery in Tanzania ■ Drilling and testing continue in the Vaca
Muerta in Argentina
■ Successfully drilled University-1 well in
the Russian Arctic
ExxonMobil licensed acreage Domino-1 Domino-2 Pelican South-1
Romania Bulgaria Turkey Georgia Russia Ukraine
NEPTUN DEEP MIDIA DEEP Romania Activity Map 20
Black Sea
Billions of dollars unless specified otherwise
YTD YTD Earnings Earnings 26.0 26.0 Upstream Production Upstream Production (MOEBD) 3.9 3.9 Upst Upstream Unit Profitability ream Unit Profitability1
($/OEB)
21.03 21.03 Free Cash Free Cash Flow Flow 19.4 19.4 Shareholder Distributions Shareholder Distributions 17.6 17.6
Highli Highlights ts
■ Production volumes on target ■ Improving production mix/profitability ■ Disciplined capital allocation ■ Growing free cash flow ■ Maintaining robust shareholder
distributions
Summary
21
1 ExxonMobil volume excludes noncontrolling interest share
Strong performance underscores the va Strong performance underscores the value of lue of our
- ur integrated business model