Exxon Mobil (XOM) Q2 2014 earnings summary

Executive summary

• Q2 net income was $8.78B, up 28% YoY, reflecting strong operations and asset-management impacts; diluted EPS rose 32% to $2.05.

• H1 net income rose 9% to $17.88B; production remained in line with plans, and PNG LNG started ahead of schedule.

Financial highlights

• Q2 cash flow from operations and asset sales was $12.8B, including $2.6B in asset-sale proceeds; H1 totaled $29.0B, including $3.7B in proceeds.

• Capital and exploration expenditures were $9.8B in Q2, down 4% YoY, and $18.2B in H1, down 17%.

• Cash ended Q2 at $6.3B, up $0.5B; debt was $21.8B.

• Q2 earnings fell $320M sequentially as lower Downstream and Chemical results and higher corporate and financing expenses partly offset stronger Upstream earnings.

Outlook and guidance

• 2014 Upstream production remained in line with plans; Q3 share purchases to reduce outstanding shares were expected at $3B.

• Arkutun-Dagi was expected to start up late in 2014, adding up to 90 kbd gross to Sakhalin-1 production; PNG LNG shipped its first cargo ahead of schedule.

• Texas ethane cracker and polyethylene facilities were planned for 2017; Antwerp and Singapore specialty-fluid expansions were planned for 2015 and 2016.