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Exxon Mobil: 5959 Las Colinas Boulevard

The following excerpt is from the company's SEC filing.

Irving, TX 75039

972 444 1107 Telephone

972 444 1138 Facsimile


ExxonMobil Earns $4.2 Billion in Third Quarter of 2015

Focus remains on business fundamentals, including cost management

Corporation continues to deliver on investment and operating commitments

Downstream and Chemical earnings rise, highlighting strength of integrated businesses

Third Quarter

Nine Months

Earnings Summary

(Dollars in millions, except per share data)



< br>25,950

Earnings Per Common Share

Assuming Dilution

Capital and Exploration






IRVING, Texas – October 30, 2015 – Exxon Mobil Corporation today announced estimated third quarter 2015 earnings of $4.2 billion, or $1.01 per diluted share, compared with $8.1 billion a year earlier. Significantly lower Upstream realizations more than offset higher Downstream and Chemical earnings.

“We maintain a relentless focus on business fundamentals, including cost management, regardless of commodity prices,” said Rex W. Tillerson, chairman and chief executive officer. “Quarterly results reflect the continued strength of our Downstream and Chemical businesses and underscore the benefits of our integrated business model.”

Downstream segment earnings nearly doubled from the third quarter of 2014 due to stronger refining margins. Chemical results, comparable with the year‑ago quarter, reflect continued strength in product margins and the quality of the company’s product and asset mix.

Upstream production volumes increased 2.3 percent, or 87,000 barrels per day, to 3.9 million oil‑equivalent barrels per day. Liquids volumes of 2.3 million barrels per day rose 13 percent driven by new developments in Canada, Indonesia, the United States, Angola and Nigeria.

During the quarter, the corporation distributed $3.6 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding.

Third Quarter Highlights

Earnings of $4.2 billion decreased $3.8 billion, or 47 percent, from the third quarter of 2014.

Earnings per share, assuming dilution, were $1.01, a decrease of 47 percent.

Capital and exploration expenditures were $7.7 billion, down 22 percent from the third quarter of 2014.

Oil‑equivalent production increased 2.3 percent from the third quarter of 2014, with liquids up 13 percent and natural gas down 10 percent.

Cash flow from operations and asset sales was $9.7 billion, including proceeds associated with asset sales of $491 million.

The corporation distributed $3.6 billion to shareholders in the third quarter of 2015, including $500 million in share purchases to reduce shares outstanding.

Dividends per share of $0.73 increased 5.8 percent compared with the third quarter of 2014.

Production at the Erha North Phase 2 project started five months ahead of schedule and $400 million under budget, with an expected peak gross production of 65,000 barrels of oil per day. This capital-efficient, deepwater subsea development is located 60 miles offshore Nigeria and includes seven wells from three drill centers tied back to facilities at the existing Erha field, thus reducing additional infrastructure requirements.

The corporation executed two agreements to obtain horizontal development rights in 48,000 acres adjoining its existing acreage position in the Midland Basin. The acreage will provide rights to all intervals within the basin and be operated by ExxonMobil’s subsidiary XTO Energy, Inc. ExxonMobil has executed five agreements in the Midland Basin since January 2014, increasing the company’s position to over 135,000 net acres.

ExxonMobil announced plans to utilize its proprietary technology at the Rotterdam refinery in the Netherlands to efficiently produce high quality Group II basestocks and ultra-low sulfur diesel to meet growing market demand. This expansion project follows recent basestock investments at ExxonMobil’s Baytown, Texas, and Singapore refineries and further strengthens our position as the world’s largest producer of lube basestocks.

The company announced an expansion at ExxonMobil’s Singapore lubricants plant to produce synthetic lubricants, including Mobil 1

, its flagship synthetic engine oil. When completed in the second half of 2017, the facility will be the only plant in the Asia Pacific region producing Mobil 1, demonstrating the company’s commitment to applying technology and bringing premium products to market in support of growing demand.

ExxonMobil plans to increase crude processing capacity at the Beaumont, Texas, refinery by approximately 20,000 barrels per day, adding flexibility to process domestic light crude oils. This capacity expansion further strengthens the competitiveness of the company’s strategic assets in North America and enhances U.S. energy security.

Third Quarter 2015 vs. Third Quarter 2014

Upstream earnings were $1.4 billion in the third quarter of 2015, down $5.1 billion from the third quarter of 2014. Lower liquids and gas realizations decreased earnings by $5.1 billion, while volume and mix effects, driven by new developments, increased earnings by $110 million. All other items decreased earnings by $70 million.

On an oil‑equivalent basis, production increased 2.3 percent from the third quarter of 2014. Liquids production totaled 2.3 million barrels per day, up 266,000...