Exxon Mobil (XOM) Q4 2013 earnings summary

Executive summary

• Q4 earnings were $8.35B, down $1.6B YoY; FY earnings were $32.58B, down $12.3B, primarily on $8.6B lower net divestment gains.

• FY production averaged 4.2M boe/d, meeting target; adjusted for entitlement volumes, quotas, and divestments, production was essentially flat YoY.

• FY cash flow from operations and asset sales was $47.6B, and shareholder distributions totaled $25.9B.

Financial highlights

• Q4 diluted EPS was $1.91, down 13% YoY; FY diluted EPS was $7.37, down 24%, or 6% excluding net divestment gains.

• Q4 cash flow from operations and asset sales was $12.0B, including $1.8B in asset-sale proceeds; FY was $47.6B, including $2.7B.

• FY earnings fell $12.3B YoY; $8.6B, or 70%, of the decline came from lower net divestment gains.

• Q4 additions to PP&E were $8.4B and shareholder distributions were $5.8B; Q4 asset-sale gains were $1B, including $775M upstream and $225M downstream.

• FY revenue and other income was $438.26B versus $480.68B in 2012; net income was $32.58B versus $44.88B.

Outlook and guidance

• Q1 2014 share purchases were expected at $3B; corporate and financing expense guidance remained $500M–$700M per quarter.

• PNG LNG first deliveries were expected in Q3 2014; the project was on budget and commissioning was progressing.

• Production and upstream capital-spending guidance updates were planned for the March analyst meeting; no specific Kearl full-capacity date was given.

• Numerous major projects were expected to start up over the next two years; dividends were expected to grow over time under the established policy, with no specific increase indicated.

• Kearl expansion was 70% complete; Upper Zakum expansion was progressing toward 750,000 b/d capacity.