Exxon Mobil (XOM) Q4 2012 earnings summary

Executive summary

• Q4 earnings were $9.95B, up 6% YoY, and diluted EPS rose 12% to $2.20; FY earnings were $44.88B, up 9%, with record diluted EPS of $9.70, up 15%.

• FY earnings included $9.9B of divestment and restructuring gains, mainly $6.5B related to Japan; lower production partially offset gains.

• Refining and chemical gains more than offset lower upstream results; cash generation supported $30.1B of FY distributions and $39.8B of capital and exploration expenditures.

Financial highlights

• Q4 cash flow from operations and asset sales was $14.0B, including $0.8B of proceeds; FY cash flow was $63.8B, including $7.7B of proceeds.

• Q4 capital expenditures were $12.4B, up 24% YoY; FY expenditures were $39.8B, including $34.3B of PP&E additions and ~$3B of acquisitions.

• Revenue and other income was $115.2B in Q4 and $482.3B for FY 2012.

Outlook and guidance

• Kearl initial development construction was complete, with first bitumen anticipated in 1Q13; phased startup targeted 110,000 b/d later in 2013, subject to safe commissioning progress.

• Q1 2013 share purchases to reduce shares outstanding were anticipated at $5B; future purchases could be changed or discontinued without prior notice.

• Hebron first oil was anticipated near end-2017; production outlook was scheduled for the March analyst meeting after 2012 volumes came in below the March outlook.

• Gulf of Mexico exploration continued, with a 2013 program; West Siberia drilling was anticipated in 2013.

• Argentina well tests were under evaluation, with four additional wells planned for 2013; Rosneft tight-oil work focused on testing commercial potential.