UNITED STATES
FORM 10-Q
☑QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
or
☐TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
__________to__________
New Jersey |
| 13-5409005 | ||||||
(State or other jurisdiction of |
| |||||||
incorporation or organization) |
| (I.R.S. Employer Identification Number) |
(972) 940-6000
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Title of Each Class |
| Trading Symbol |
| Name of Each Exchange | ||||||||||
Common Stock, without par value |
| XOM |
| New York Stock Exchange | ||||||||||
0.142% Notes due 2024 | XOM24B | New York Stock Exchange | ||||||||||||
0.524% Notes due 2028 | XOM28 | New York Stock Exchange | ||||||||||||
0.835% Notes due 2032 | XOM32 | New York Stock Exchange | ||||||||||||
1.408% Notes due 2039 | XOM39A | New York Stock Exchange |
Large accelerated filer | ☑ | Accelerated filer | ☐ | ||||||||
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Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
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| Emerging growth company | ☐ |
☐ No ☑
Class |
| Outstanding as of | ||||||
Common stock, without par value |
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EXXON MOBIL CORPORATION
MARCH 31, 2021
PART I. FINANCIAL INFORMATION | |||||
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Item 1.Financial Statements |
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Notes to Condensed Consolidated Financial Statements |
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Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations |
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Item 3.Quantitative and Qualitative Disclosures About Market Risk |
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Item 4.Controls and Procedures |
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PART II. OTHER INFORMATION | |||||
Item 1.Legal Proceedings |
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Item 2.Unregistered Sales of Equity Securities and Use of Proceeds |
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Item 6.Exhibits |
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Index to Exhibits |
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Signature |
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EXXON MOBIL CORPORATION | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Revenues and other income | ||||||||||||||||||||||||||
Sales and other operating revenue | 57,552 | 55,134 | ||||||||||||||||||||||||
Income from equity affiliates | 1,473 | 775 | ||||||||||||||||||||||||
Other income | 122 | 249 | ||||||||||||||||||||||||
Total revenues and other income | 59,147 | 56,158 | ||||||||||||||||||||||||
Costs and other deductions | ||||||||||||||||||||||||||
Crude oil and product purchases | 32,601 | 32,083 | ||||||||||||||||||||||||
Production and manufacturing expenses | 8,062 | 8,297 | ||||||||||||||||||||||||
Selling, general and administrative expenses | 2,428 | 2,579 | ||||||||||||||||||||||||
Depreciation and depletion | 5,004 | 5,819 | ||||||||||||||||||||||||
Exploration expenses, including dry holes | 164 | 288 | ||||||||||||||||||||||||
Non-service pension and postretirement benefit expense | 378 | 269 | ||||||||||||||||||||||||
Interest expense | 258 | 249 | ||||||||||||||||||||||||
Other taxes and duties | 6,660 | 6,832 | ||||||||||||||||||||||||
Total costs and other deductions | 55,555 | 56,416 | ||||||||||||||||||||||||
Income (Loss) before income taxes | 3,592 | (258) | ||||||||||||||||||||||||
Income taxes | 796 | 512 | ||||||||||||||||||||||||
Net income (loss) including noncontrolling interests | 2,796 | (770) | ||||||||||||||||||||||||
Net income (loss) attributable to noncontrolling interests | 66 | (160) | ||||||||||||||||||||||||
Net income (loss) attributable to ExxonMobil | 2,730 | (610) | ||||||||||||||||||||||||
Earnings (Loss) per common share (dollars) | 0.64 | (0.14) | ||||||||||||||||||||||||
Earnings (Loss) per common share - assuming dilution (dollars) | 0.64 | (0.14) |
EXXON MOBIL CORPORATION | ||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | ||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Net income (loss) including noncontrolling interests | 2,796 | (770) | ||||||||||||||||||||||||
Other comprehensive income (loss) (net of income taxes) | ||||||||||||||||||||||||||
Foreign exchange translation adjustment | 149 | (5,649) | ||||||||||||||||||||||||
Postretirement benefits reserves adjustment (excluding amortization) | 168 | 87 | ||||||||||||||||||||||||
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs | 378 | 204 | ||||||||||||||||||||||||
Total other comprehensive income (loss) | 695 | (5,358) | ||||||||||||||||||||||||
Comprehensive income (loss) including noncontrolling interests | 3,491 | (6,128) | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to noncontrolling interests | 146 | (672) | ||||||||||||||||||||||||
Comprehensive income (loss) attributable to ExxonMobil | 3,345 | (5,456) |
EXXON MOBIL CORPORATION | |||||||||||
CONDENSED CONSOLIDATED BALANCE SHEET | |||||||||||
(millions of dollars) | |||||||||||
March 31, 2021 | December 31, 2020 | ||||||||||
Assets | |||||||||||
Current assets | |||||||||||
Cash and cash equivalents | 3,515 | 4,364 | |||||||||
Notes and accounts receivable – net | 24,755 | 20,581 | |||||||||
Inventories | |||||||||||
Crude oil, products and merchandise | 13,740 | 14,169 | |||||||||
Materials and supplies | 4,617 | 4,681 | |||||||||
Other current assets | 1,568 | 1,098 | |||||||||
Total current assets | 48,195 | 44,893 | |||||||||
Investments, advances and long-term receivables | 44,181 | 43,515 | |||||||||
Property, plant and equipment – net | 224,641 | 227,553 | |||||||||
Other assets, including intangibles – net | 16,753 | 16,789 | |||||||||
Total assets | 333,770 | 332,750 | |||||||||
Liabilities | |||||||||||
Current liabilities | |||||||||||
Notes and loans payable | 18,185 | 20,458 | |||||||||
Accounts payable and accrued liabilities | 41,017 | 35,221 | |||||||||
Income taxes payable | 948 | 684 | |||||||||
Total current liabilities | 60,150 | 56,363 | |||||||||
Long-term debt | 45,137 | 47,182 | |||||||||
Postretirement benefits reserves | 21,835 | 22,415 | |||||||||
Deferred income tax liabilities | 18,113 | 18,165 | |||||||||
Long-term obligations to equity companies | 3,279 | 3,253 | |||||||||
Other long-term obligations | 21,155 | 21,242 | |||||||||
Total liabilities | 169,669 | 168,620 | |||||||||
Commitments and contingencies (Note 3) | 0 | 0 | |||||||||
Equity | |||||||||||
Common stock without par value | |||||||||||
(9,000 million shares authorized, 8,019 million shares issued) | 15,884 | 15,688 | |||||||||
Earnings reinvested | 382,953 | 383,943 | |||||||||
Accumulated other comprehensive income | (16,090) | (16,705) | |||||||||
Common stock held in treasury | |||||||||||
(3,785 million shares at March 31, 2021 and 3,786 million shares at December 31, 2020) | (225,773) | (225,776) | |||||||||
ExxonMobil share of equity | 156,974 | 157,150 | |||||||||
Noncontrolling interests | 7,127 | 6,980 | |||||||||
Total equity | 164,101 | 164,130 | |||||||||
Total liabilities and equity | 333,770 | 332,750 |
EXXON MOBIL CORPORATION | |||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS | |||||||||||
(millions of dollars) | |||||||||||
Three Months Ended March 31, | |||||||||||
2021 | 2020 | ||||||||||
Cash flows from operating activities | |||||||||||
Net income (loss) including noncontrolling interests | 2,796 | (770) | |||||||||
Depreciation and depletion | 5,004 | 5,819 | |||||||||
Noncash inventory adjustment - lower of cost or market | 0 | 2,245 | |||||||||
Changes in operational working capital, excluding cash and debt | 1,953 | (942) | |||||||||
All other items – net | (489) | (78) | |||||||||
Net cash provided by operating activities | 9,264 | 6,274 | |||||||||
Cash flows from investing activities | |||||||||||
Additions to property, plant and equipment | (2,400) | (5,945) | |||||||||
Proceeds from asset sales and returns of investments | 307 | 86 | |||||||||
Additional investments and advances | (349) | (728) | |||||||||
Other investing activities including collection of advances | 87 | 220 | |||||||||
Net cash used in investing activities | (2,355) | (6,367) | |||||||||
Cash flows from financing activities | |||||||||||
Additions to long-term debt | 0 | 8,466 | |||||||||
Reductions in long-term debt | 0 | (2) | |||||||||
Additions to short-term debt (1) | 5,781 | 13,128 | |||||||||
Reductions in short-term debt (1) | (10,849) | (6,500) | |||||||||
Additions/(reductions) in commercial paper and debt with three months or less maturity | 1,003 | (2,332) | |||||||||
Cash dividends to ExxonMobil shareholders | (3,720) | (3,719) | |||||||||
Cash dividends to noncontrolling interests | (52) | (45) | |||||||||
Changes in noncontrolling interests | 53 | 94 | |||||||||
Common stock acquired | (1) | (305) | |||||||||
Net cash used in financing activities | (7,785) | 8,785 | |||||||||
Effects of exchange rate changes on cash | 27 | (369) | |||||||||
Increase/(decrease) in cash and cash equivalents | (849) | 8,323 | |||||||||
Cash and cash equivalents at beginning of period | 4,364 | 3,089 | |||||||||
Cash and cash equivalents at end of period | 3,515 | 11,412 | |||||||||
Supplemental Disclosures | |||||||||||
Income taxes paid | 855 | 1,372 | |||||||||
Cash interest paid | |||||||||||
Included in cash flows from operating activities | 405 | 313 | |||||||||
Capitalized, included in cash flows from investing activities | 151 | 155 | |||||||||
Total cash interest paid | 556 | 468 |
2
PART I. FINANCIAL INFORMATION | ||||||||||||||
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Item 1. Financial Statements | ||||||||||||||
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EXXON MOBIL CORPORATION | ||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF INCOME | ||||||||||||||
(millions of dollars) | ||||||||||||||
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| Three Months Ended |
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| Six Months Ended | ||||||
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| June 30, |
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| June 30, | ||||||
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| 2020 |
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| 2019 |
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| 2020 |
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| 2019 |
Revenues and other income |
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| Sales and other operating revenue |
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| 32,277 |
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| 67,491 |
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| 87,411 |
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| 129,137 | |
| Income from equity affiliates |
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| 103 |
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| 1,359 |
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| 878 |
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| 3,068 | |
| Other income |
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| 225 |
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| 241 |
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| 474 |
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| 511 | |
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| Total revenues and other income |
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| 32,605 |
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| 69,091 |
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| 88,763 |
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| 132,716 |
Costs and other deductions |
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| Crude oil and product purchases |
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| 14,069 |
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| 38,942 |
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| 46,152 |
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| 73,743 | |
| Production and manufacturing expenses |
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| 6,895 |
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| 9,522 |
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| 15,192 |
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| 18,492 | |
| Selling, general and administrative expenses |
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| 2,409 |
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| 2,827 |
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| 4,988 |
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| 5,597 | |
| Depreciation and depletion |
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| 4,916 |
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| 4,631 |
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| 10,735 |
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| 9,202 | |
| Exploration expenses, including dry holes |
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| 214 |
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| 333 |
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| 502 |
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| 613 | |
| Non-service pension and postretirement benefit expense |
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| 271 |
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| 313 |
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| 540 |
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| 671 | |
| Interest expense |
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| 317 |
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| 216 |
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| 566 |
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| 397 | |
| Other taxes and duties |
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| 5,154 |
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| 7,675 |
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| 11,986 |
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| 15,080 | |
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| Total costs and other deductions |
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| 34,245 |
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| 64,459 |
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| 90,661 |
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| 123,795 |
Income (Loss) before income taxes |
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| (1,640) |
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| 4,632 |
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| (1,898) |
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| 8,921 | ||
| Income taxes |
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| (471) |
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| 1,241 |
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| 41 |
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| 3,124 | |
Net income (loss) including noncontrolling interests |
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| (1,169) |
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| 3,391 |
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| (1,939) |
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| 5,797 | ||
| Net income (loss) attributable to noncontrolling interests |
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| (89) |
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| 261 |
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| (249) |
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| 317 | |
Net income (loss) attributable to ExxonMobil |
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| (1,080) |
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| 3,130 |
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| (1,690) |
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| 5,480 | ||
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Earnings (Loss) per common share (dollars) |
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| (0.26) |
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| 0.73 |
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| (0.40) |
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| 1.28 | ||
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Earnings (Loss) per common share - assuming dilution (dollars) |
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| (0.26) |
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| 0.73 |
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| (0.40) |
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| 1.28 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
EXXON MOBIL CORPORATION | |||||||||||||||||||||||||||||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||||||||||||||||||||
ExxonMobil Share of Equity | |||||||||||||||||||||||||||||||||||||||||
Common Stock | Earnings Reinvested | Accumulated Other Comprehensive Income | Common Stock Held in Treasury | ExxonMobil Share of Equity | Non-controlling Interests | Total Equity | |||||||||||||||||||||||||||||||||||
Balance as of December 31, 2019 | 15,637 | 421,341 | (19,493) | (225,835) | 191,650 | 7,288 | 198,938 | ||||||||||||||||||||||||||||||||||
Amortization of stock-based awards | 181 | — | — | — | 181 | — | 181 | ||||||||||||||||||||||||||||||||||
Other | (182) | — | — | — | (182) | 157 | (25) | ||||||||||||||||||||||||||||||||||
Net income (loss) for the period | — | (610) | — | — | (610) | (160) | (770) | ||||||||||||||||||||||||||||||||||
Dividends - common shares | — | (3,719) | — | — | (3,719) | (45) | (3,764) | ||||||||||||||||||||||||||||||||||
Cumulative effect of accounting change | — | (93) | — | — | (93) | (1) | (94) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | (4,846) | — | (4,846) | (512) | (5,358) | ||||||||||||||||||||||||||||||||||
Acquisitions, at cost | — | — | — | (305) | (305) | (63) | (368) | ||||||||||||||||||||||||||||||||||
Dispositions | — | — | — | 3 | 3 | — | 3 | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2020 | 15,636 | 416,919 | (24,339) | (226,137) | 182,079 | 6,664 | 188,743 | ||||||||||||||||||||||||||||||||||
Balance as of December 31, 2020 | 15,688 | 383,943 | (16,705) | (225,776) | 157,150 | 6,980 | 164,130 | ||||||||||||||||||||||||||||||||||
Amortization of stock-based awards | 202 | — | — | — | 202 | — | 202 | ||||||||||||||||||||||||||||||||||
Other | (6) | — | — | — | (6) | 53 | 47 | ||||||||||||||||||||||||||||||||||
Net income (loss) for the period | — | 2,730 | — | — | 2,730 | 66 | 2,796 | ||||||||||||||||||||||||||||||||||
Dividends - common shares | — | (3,720) | — | — | (3,720) | (52) | (3,772) | ||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) | — | — | 615 | — | 615 | 80 | 695 | ||||||||||||||||||||||||||||||||||
Acquisitions, at cost | — | — | — | (1) | (1) | 0 | (1) | ||||||||||||||||||||||||||||||||||
Dispositions | — | — | — | 4 | 4 | — | 4 | ||||||||||||||||||||||||||||||||||
Balance as of March 31, 2021 | 15,884 | 382,953 | (16,090) | (225,773) | 156,974 | 7,127 | 164,101 |
EXXON MOBIL CORPORATION | |||||||||||||||
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME | |||||||||||||||
(millions of dollars) | |||||||||||||||
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| Three Months Ended |
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| Six Months Ended | ||||||
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| June 30, |
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| June 30, | ||||||
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| 2020 |
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| 2019 |
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| 2020 |
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| 2019 |
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Net income (loss) including noncontrolling interests |
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| (1,169) |
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| 3,391 |
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| (1,939) |
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| 5,797 | |||
Other comprehensive income (loss) (net of income taxes) |
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| Foreign exchange translation adjustment |
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| 2,875 |
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| 600 |
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| (2,774) |
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| 1,349 | ||
| Postretirement benefits reserves adjustment |
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| (excluding amortization) |
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| (136) |
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| (34) |
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| (49) |
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| (60) |
| Amortization and settlement of postretirement benefits reserves |
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| adjustment included in net periodic benefit costs |
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| 203 |
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| 141 |
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| 407 |
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| 326 |
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| Total other comprehensive income (loss) |
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| 2,942 |
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| 707 |
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| (2,416) |
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| 1,615 | |
Comprehensive income (loss) including noncontrolling interests |
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| 1,773 |
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| 4,098 |
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| (4,355) |
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| 7,412 | |||
| Comprehensive income (loss) attributable to |
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| noncontrolling interests |
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| 131 |
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| 391 |
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| (541) |
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| 573 |
Comprehensive income (loss) attributable to ExxonMobil |
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| 1,642 |
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| 3,707 |
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| (3,814) |
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| 6,839 |
Three Months Ended March 31, 2021 Three Months Ended March 31, 2020 Common Stock Share Activity Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding (millions of shares) (millions of shares) Balance as of December 31 8,019 (3,786) 4,233 8,019 (3,785) 4,234 Acquisitions — — — — (6) (6) Dispositions — 1 1 — — — Balance as of March 31 8,019 (3,785) 4,234 8,019 (3,791) 4,228
EXXON MOBIL CORPORATION |
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CONDENSED CONSOLIDATED BALANCE SHEET |
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(millions of dollars) |
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| June 30, |
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| Dec. 31, |
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| 2020 |
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| 2019 |
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Assets |
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| Current assets |
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| Cash and cash equivalents |
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| 12,576 |
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| 3,089 |
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| Notes and accounts receivable – net |
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| 19,036 |
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| 26,966 |
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| Inventories |
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| Crude oil, products and merchandise |
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| 15,028 |
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| 14,010 |
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| Materials and supplies |
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| 4,629 |
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| 4,518 |
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| Other current assets |
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| 1,747 |
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| 1,469 |
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| Total current assets |
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| 53,016 |
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| 50,052 |
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| Investments, advances and long-term receivables |
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| 43,192 |
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| 43,164 |
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| Property, plant and equipment – net |
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| 250,524 |
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| 253,018 |
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| Other assets, including intangibles – net |
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| 14,763 |
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| 16,363 |
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| Total assets |
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| 361,495 |
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| 362,597 |
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Liabilities |
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| Current liabilities |
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| Notes and loans payable |
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| 22,952 |
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| 20,578 |
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| Accounts payable and accrued liabilities |
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| 33,216 |
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| 41,831 |
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| Income taxes payable |
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| 1,102 |
|
| 1,580 |
| |
|
|
| Total current liabilities |
|
| 57,270 |
|
| 63,989 |
|
| Long-term debt |
|
| 46,563 |
|
| 26,342 |
| ||
| Postretirement benefits reserves |
|
| 22,341 |
|
| 22,304 |
| ||
| Deferred income tax liabilities |
|
| 24,725 |
|
| 25,620 |
| ||
| Long-term obligations to equity companies |
|
| 3,831 |
|
| 3,988 |
| ||
| Other long-term obligations |
|
| 19,612 |
|
| 21,416 |
| ||
|
|
| Total liabilities |
|
| 174,342 |
|
| 163,659 |
|
|
|
|
|
|
|
|
|
|
|
|
Commitments and contingencies (Note 3) |
|
| - |
|
| - |
| |||
|
|
|
|
|
|
|
| |||
Equity |
|
|
|
|
|
|
| |||
| Common stock without par value |
|
|
|
|
|
|
| ||
|
| (9,000 million shares authorized, 8,019 million shares issued) |
|
| 15,812 |
|
| 15,637 |
| |
| Earnings reinvested |
|
| 412,124 |
|
| 421,341 |
| ||
| Accumulated other comprehensive income |
|
| (21,617) |
|
| (19,493) |
| ||
| Common stock held in treasury |
|
|
|
|
|
|
| ||
|
| (3,791 million shares at June 30, 2020 and |
|
|
|
|
|
|
| |
|
| 3,785 million shares at December 31, 2019) |
|
| (226,136) |
|
| (225,835) |
| |
|
|
| ExxonMobil share of equity |
|
| 180,183 |
|
| 191,650 |
|
| Noncontrolling interests |
|
| 6,970 |
|
| 7,288 |
| ||
|
|
| Total equity |
|
| 187,153 |
|
| 198,938 |
|
|
|
| Total liabilities and equity |
|
| 361,495 |
|
| 362,597 |
|
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
5
EXXON MOBIL CORPORATION |
| |||||||||
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS |
| |||||||||
(millions of dollars) |
| |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended |
| |||
|
|
|
|
|
| June 30, |
| |||
|
|
|
|
|
| 2020 |
|
| 2019 |
|
Cash flows from operating activities |
|
|
|
|
|
|
| |||
| Net income (loss) including noncontrolling interests |
|
| (1,939) |
|
| 5,797 |
| ||
| Depreciation and depletion |
|
| 10,735 |
|
| 9,202 |
| ||
| Noncash inventory adjustment - lower of cost or market |
|
| 176 |
|
| - |
| ||
| Changes in operational working capital, excluding cash and debt |
|
| (2,402) |
|
| 1,014 |
| ||
| All other items – net |
|
| (296) |
|
| (1,728) |
| ||
|
|
| Net cash provided by operating activities |
|
| 6,274 |
|
| 14,285 |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from investing activities |
|
|
|
|
|
|
| |||
| Additions to property, plant and equipment |
|
| (10,362) |
|
| (11,372) |
| ||
| Proceeds associated with sales of subsidiaries, property, plant and |
|
|
|
|
|
|
| ||
|
| equipment, and sales and returns of investments |
|
| 129 |
|
| 140 |
| |
| Additional investments and advances |
|
| (1,524) |
|
| (1,730) |
| ||
| Other investing activities including collection of advances |
|
| 309 |
|
| 292 |
| ||
|
|
| Net cash used in investing activities |
|
| (11,448) |
|
| (12,670) |
|
|
|
|
|
|
|
|
|
|
|
|
Cash flows from financing activities |
|
|
|
|
|
|
| |||
| Additions to long-term debt |
|
| 23,186 |
|
| 43 |
| ||
| Reductions in long-term debt |
|
| (3) |
|
| - |
| ||
| Reductions in short-term debt |
|
| (1,618) |
|
| (3,805) |
| ||
| Additions/(reductions) in commercial paper, and debt with three |
|
|
|
|
|
|
| ||
|
| months or less maturity (1) |
|
| 1,033 |
|
| 11,126 |
| |
| Contingent consideration payments |
| (21) |
|
| - |
| |||
| Cash dividends to ExxonMobil shareholders |
|
| (7,434) |
|
| (7,220) |
| ||
| Cash dividends to noncontrolling interests |
|
| (93) |
|
| (100) |
| ||
| Changes in noncontrolling interests |
|
| 317 |
|
| (119) |
| ||
| Common stock acquired |
|
| (305) |
|
| (421) |
| ||
|
|
| Net cash used in financing activities |
|
| 15,062 |
|
| (496) |
|
Effects of exchange rate changes on cash |
|
| (401) |
|
| 52 |
| |||
Increase/(decrease) in cash and cash equivalents |
|
| 9,487 |
|
| 1,171 |
| |||
Cash and cash equivalents at beginning of period |
|
| 3,089 |
|
| 3,042 |
| |||
Cash and cash equivalents at end of period |
|
| 12,576 |
|
| 4,213 |
| |||
|
|
|
|
|
|
|
|
|
|
|
Supplemental Disclosures |
|
|
|
|
|
|
| |||
| Income taxes paid |
|
| 1,768 |
|
| 3,884 |
| ||
| Cash interest paid |
|
|
|
|
|
|
| ||
|
| Included in cash flows from operating activities |
|
| 290 |
|
| 277 |
| |
|
| Capitalized, included in cash flows from investing activities |
|
| 335 |
|
| 355 |
| |
|
| Total cash interest paid |
|
| 625 |
|
| 632 |
|
(1) Includes a net addition of commercial paper with a maturity of over three months of $7.0 billion in 2020 and $6.5 billion in 2019. The gross amount of commercial paper with a maturity of over three months issued was $20.5 billion in 2020 and $12.3 billion in 2019, while the gross amount repaid was $13.5 billion in 2020 and $5.8 billion in 2019.
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
6
| EXXON MOBIL CORPORATION | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||
| (millions of dollars) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ExxonMobil Share of Equity |
|
|
|
|
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| Other |
| Common |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| Compre- |
| Stock |
| ExxonMobil |
| Non- |
|
|
| ||||
|
|
|
|
| Common |
| Earnings |
| hensive |
| Held in |
| Share of |
| controlling |
| Total | |||||||
|
|
|
|
| Stock |
| Reinvested |
| Income |
| Treasury |
| Equity |
| Interests |
| Equity | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of March 31, 2019 |
|
| 15,476 |
|
| 420,498 |
|
| (18,782) |
|
| (225,970) |
|
| 191,222 |
|
| 6,799 |
|
| 198,021 | |||
| Amortization of stock-based awards |
|
| 166 |
|
| - |
|
| - |
|
| - |
|
| 166 |
|
| - |
|
| 166 | ||
| Other |
|
| (3) |
|
| - |
|
| - |
|
| - |
|
| (3) |
|
| 38 |
|
| 35 | ||
| Net income (loss) for the period |
|
| - |
|
| 3,130 |
|
| - |
|
| - |
|
| 3,130 |
|
| 261 |
|
| 3,391 | ||
| Dividends - common shares |
|
| - |
|
| (3,715) |
|
| - |
|
| - |
|
| (3,715) |
|
| (57) |
|
| (3,772) | ||
| Other comprehensive income (loss) |
|
| - |
|
| - |
|
| 577 |
|
| - |
|
| 577 |
|
| 130 |
|
| 707 | ||
| Acquisitions, at cost |
|
| - |
|
| - |
|
| - |
|
| - |
|
| - |
|
| (83) |
|
| (83) | ||
Balance as of June 30, 2019 |
|
| 15,639 |
|
| 419,913 |
|
| (18,205) |
|
| (225,970) |
|
| 191,377 |
|
| 7,088 |
|
| 198,465 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Balance as of March 31, 2020 |
|
| 15,636 |
|
| 416,919 |
|
| (24,339) |
|
| (226,137) |
|
| 182,079 |
|
| 6,664 |
|
| 188,743 | |||
| Amortization of stock-based awards |
|
| 177 |
|
| - |
|
| - |
|
| - |
|
| 177 |
|
| - |
|
| 177 | ||
| Other |
|
| (1) |
|
| - |
|
| - |
|
| - |
|
| (1) |
|
| 223 |
|
| 222 | ||
| Net income (loss) for the period |
|
| - |
|
| (1,080) |
|
| - |
|
| - |
|
| (1,080) |
|
| (89) |
|
| (1,169) | ||
| Dividends - common shares |
|
| - |
|
| (3,715) |
|
| - |
|
| - |
|
| (3,715) |
|
| (48) |
|
| (3,763) | ||
| Other comprehensive income (loss) |
|
| - |
|
| - |
|
| 2,722 |
|
| - |
|
| 2,722 |
|
| 220 |
|
| 2,942 | ||
| Dispositions |
|
| - |
|
| - |
|
| - |
|
| 1 |
|
| 1 |
|
| - |
|
| 1 | ||
Balance as of June 30, 2020 |
|
| 15,812 |
|
| 412,124 |
|
| (21,617) |
|
| (226,136) |
|
| 180,183 |
|
| 6,970 |
|
| 187,153 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Three Months Ended June 30, 2020 |
|
|
|
| Three Months Ended June 30, 2019 | ||||||||||||||
|
|
|
|
|
|
|
| Held in |
|
|
|
|
|
|
|
|
|
| Held in |
|
|
| ||
| Common Stock Share Activity |
| Issued |
| Treasury |
| Outstanding |
|
|
|
| Issued |
| Treasury |
| Outstanding | ||||||||
|
|
|
| (millions of shares) |
|
|
|
| (millions of shares) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of March 31 |
|
| 8,019 |
|
| (3,791) |
|
| 4,228 |
|
|
|
|
| 8,019 |
|
| (3,788) |
|
| 4,231 | ||
|
|
| Acquisitions |
|
| - |
|
| - |
|
| - |
|
|
|
|
| - |
|
| - |
|
| - |
|
|
| Dispositions |
|
| - |
|
| - |
|
| - |
|
|
|
|
| - |
|
| - |
|
| - |
| Balance as of June 30 |
|
| 8,019 |
|
| (3,791) |
|
| 4,228 |
|
|
|
|
| 8,019 |
|
| (3,788) |
|
| 4,231 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
7
| EXXON MOBIL CORPORATION | |||||||||||||||||||||||
| CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY | |||||||||||||||||||||||
| (millions of dollars) | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ExxonMobil Share of Equity |
|
|
|
|
|
| |||||||||||||
|
|
|
|
|
|
|
|
|
| Accumulated |
|
|
|
|
|
|
|
|
|
|
| |||
|
|
|
|
|
|
|
|
|
|
| Other |
| Common |
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
| Compre- |
| Stock |
| ExxonMobil |
| Non- |
|
|
| ||||
|
|
|
|
| Common |
| Earnings |
| hensive |
| Held in |
| Share of |
| controlling |
| Total | |||||||
|
|
|
|
| Stock |
| Reinvested |
| Income |
| Treasury |
| Equity |
| Interests |
| Equity | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance as of December 31, 2018 |
|
| 15,258 |
|
| 421,653 |
|
| (19,564) |
|
| (225,553) |
|
| 191,794 |
|
| 6,734 |
|
| 198,528 | |||
| Amortization of stock-based awards |
|
| 389 |
|
| - |
|
| - |
|
| - |
|
| 389 |
|
| - |
|
| 389 | ||
| Other |
|
| (8) |
|
| - |
|
| - |
|
| - |
|
| (8) |
|
| 47 |
|
| 39 | ||
| Net income (loss) for the period |
|
| - |
|
| 5,480 |
|
| - |
|
| - |
|
| 5,480 |
|
| 317 |
|
| 5,797 | ||
| Dividends - common shares |
|
| - |
|
| (7,220) |
|
| - |
|
| - |
|
| (7,220) |
|
| (100) |
|
| (7,320) | ||
| Other comprehensive income (loss) |
|
| - |
|
| - |
|
| 1,359 |
|
| - |
|
| 1,359 |
|
| 256 |
|
| 1,615 | ||
| Acquisitions, at cost |
|
| - |
|
| - |
|
| - |
|
| (421) |
|
| (421) |
|
| (166) |
|
| (587) | ||
| Dispositions |
|
| - |
|
| - |
|
| - |
|
| 4 |
|
| 4 |
|
| - |
|
| 4 | ||
Balance as of June 30, 2019 |
|
| 15,639 |
|
| 419,913 |
|
| (18,205) |
|
| (225,970) |
|
| 191,377 |
|
| 7,088 |
|
| 198,465 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Balance as of December 31, 2019 |
|
| 15,637 |
|
| 421,341 |
|
| (19,493) |
|
| (225,835) |
|
| 191,650 |
|
| 7,288 |
|
| 198,938 | |||
| Amortization of stock-based awards |
|
| 358 |
|
| - |
|
| - |
|
| - |
|
| 358 |
|
| - |
|
| 358 | ||
| Other |
|
| (183) |
|
| - |
|
| - |
|
| - |
|
| (183) |
|
| 380 |
|
| 197 | ||
| Net income (loss) for the period |
|
| - |
|
| (1,690) |
|
| - |
|
| - |
|
| (1,690) |
|
| (249) |
|
| (1,939) | ||
| Dividends - common shares |
|
| - |
|
| (7,434) |
|
| - |
|
| - |
|
| (7,434) |
|
| (93) |
|
| (7,527) | ||
| Cumulative effect of accounting |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| change |
|
| - |
|
| (93) |
|
| - |
|
| - |
|
| (93) |
|
| (1) |
|
| (94) |
| Other comprehensive income (loss) |
|
| - |
|
| - |
|
| (2,124) |
|
| - |
|
| (2,124) |
|
| (292) |
|
| (2,416) | ||
| Acquisitions, at cost |
|
| - |
|
| - |
|
| - |
|
| (305) |
|
| (305) |
|
| (63) |
|
| (368) | ||
| Dispositions |
|
| - |
|
| - |
|
| - |
|
| 4 |
|
| 4 |
|
| - |
|
| 4 | ||
Balance as of June 30, 2020 |
|
| 15,812 |
|
| 412,124 |
|
| (21,617) |
|
| (226,136) |
|
| 180,183 |
|
| 6,970 |
|
| 187,153 | |||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Six Months Ended June 30, 2020 |
|
|
|
| Six Months Ended June 30, 2019 | ||||||||||||||
|
|
|
|
|
|
|
| Held in |
|
|
|
|
|
|
|
|
|
| Held in |
|
|
| ||
| Common Stock Share Activity |
| Issued |
| Treasury |
| Outstanding |
|
|
|
| Issued |
| Treasury |
| Outstanding | ||||||||
|
|
|
| (millions of shares) |
|
|
|
| (millions of shares) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31 |
|
| 8,019 |
|
| (3,785) |
|
| 4,234 |
|
|
|
|
| 8,019 |
|
| (3,782) |
|
| 4,237 | ||
|
|
| Acquisitions |
|
| - |
|
| (6) |
|
| (6) |
|
|
|
|
| - |
|
| (6) |
|
| (6) |
|
|
| Dispositions |
|
| - |
|
| - |
|
| - |
|
|
|
|
| - |
|
| - |
|
| - |
| Balance as of June 30 |
|
| 8,019 |
|
| (3,791) |
|
| 4,228 |
|
|
|
|
| 8,019 |
|
| (3,788) |
|
| 4,231 |
The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.
8
EXXON MOBIL CORPORATION
During the first quarter of 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil producing countries which led to sharp declines in prices for crude oil and other petrochemical products, and considerable volatility in financial markets during the first half of 2020.
As2020, mainly as a result of sharp declines in prices for crude oil, natural gas and other petrochemicalpetroleum products in the first half of 2020 and a significant decline in itsthe Corporation's market capitalization at the end of the first quarter, the Corporation recognized after-taxbefore-tax goodwill impairment charges of $836$611 million in the first half of 2020. These charges included goodwill impairments of $562 million in Upstream, Downstream, and Chemical reporting units and other impairment charges of $274$299 million mainly in the Upstream segment. Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter. Other impairment charges, mainly related to the Corporation’s investment in an Upstream equity company, were written down to estimated fair value based on recent third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties.recognized. The charges related to goodwill impairment arewere included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments arewere largely included in “Income from equity affiliates.”
3.Litigation and Other Contingencies
Litigation
A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.
The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2020,March 31, 2021, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.
|
|
|
|
|
| As of June 30, 2020 |
|
| ||||||
|
|
|
|
|
| Equity |
|
| Other |
|
|
|
|
|
|
|
|
|
|
| Company |
|
| Third Party |
|
|
|
|
|
|
|
|
|
|
| Obligations (1) |
|
| Obligations |
|
| Total |
|
|
|
|
|
|
|
| (millions of dollars) |
|
| ||||||
| Guarantees |
|
|
|
|
|
|
|
|
|
|
| ||
|
| Debt-related |
|
| 904 |
|
| 113 |
|
| 1,017 |
|
| |
|
| Other |
|
| 692 |
|
| 4,663 |
|
| 5,355 |
|
| |
|
|
| Total |
|
| 1,596 |
|
| 4,776 |
|
| 6,372 |
|
|
| (1) | ExxonMobil share |
|
|
|
|
|
|
|
|
|
|
|
As of March 31, 2021 | |||||||||||||||||||||||
Equity Company Obligations (1) | Other Third-Party Obligations | Total | |||||||||||||||||||||
(millions of dollars) | |||||||||||||||||||||||
Guarantees | |||||||||||||||||||||||
Debt-related | 1,014 | 126 | 1,140 | ||||||||||||||||||||
Other | 837 | 4,912 | 5,749 | ||||||||||||||||||||
Total | 1,851 | 5,038 | 6,889 |
An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.
11
4.Other Comprehensive Income Information
|
|
|
|
|
| Cumulative |
|
| Post- |
|
|
|
|
|
|
|
|
| Foreign |
|
| retirement |
|
|
|
|
|
|
|
|
| Exchange |
|
| Benefits |
|
|
|
| ExxonMobil Share of Accumulated Other |
|
| Translation |
|
| Reserves |
|
|
| ||
| Comprehensive Income |
|
| Adjustment |
|
| Adjustment |
|
| Total | ||
|
|
|
|
|
| (millions of dollars) | ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31, 2018 |
|
| (13,881) |
|
| (5,683) |
|
| (19,564) | ||
| Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
| ||
|
| from accumulated other comprehensive income |
|
| 1,096 |
|
| (49) |
|
| 1,047 | |
| Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
| ||
|
| comprehensive income |
|
| - |
|
| 312 |
|
| 312 | |
| Total change in accumulated other comprehensive income |
|
| 1,096 |
|
| 263 |
|
| 1,359 | ||
| Balance as of June 30, 2019 |
|
| (12,785) |
|
| (5,420) |
|
| (18,205) | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
| Balance as of December 31, 2019 |
|
| (12,446) |
|
| (7,047) |
|
| (19,493) | ||
| Current period change excluding amounts reclassified |
|
|
|
|
|
|
|
|
| ||
|
| from accumulated other comprehensive income (1) |
|
| (2,469) |
|
| (45) |
|
| (2,514) | |
| Amounts reclassified from accumulated other |
|
|
|
|
|
|
|
|
| ||
|
| comprehensive income |
|
| - |
|
| 390 |
|
| 390 | |
| Total change in accumulated other comprehensive income |
|
| (2,469) |
|
| 345 |
|
| (2,124) | ||
| Balance as of June 30, 2020 |
|
| (14,915) |
|
| (6,702) |
|
| (21,617) |
ExxonMobil Share of Accumulated Other Comprehensive Income | Cumulative Foreign Exchange Translation Adjustment | Postretirement Benefits Reserves Adjustment | Total | ||||||||||||||
(millions of dollars) | |||||||||||||||||
Balance as of December 31, 2019 | (12,446) | (7,047) | (19,493) | ||||||||||||||
Current period change excluding amounts reclassified from accumulated other comprehensive income | (5,113) | 72 | (5,041) | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | 195 | 195 | ||||||||||||||
Total change in accumulated other comprehensive income | (5,113) | 267 | (4,846) | ||||||||||||||
Balance as of March 31, 2020 | (17,559) | (6,780) | (24,339) | ||||||||||||||
Balance as of December 31, 2020 | (10,614) | (6,091) | (16,705) | ||||||||||||||
Current period change excluding amounts reclassified from accumulated other comprehensive income (1) | 88 | 158 | 246 | ||||||||||||||
Amounts reclassified from accumulated other comprehensive income | 0 | 369 | 369 | ||||||||||||||
Total change in accumulated other comprehensive income | 88 | 527 | 615 | ||||||||||||||
Balance as of March 31, 2021 | (10,526) | (5,564) | (16,090) |
|
|
|
|
|
| ||||||||||
|
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
| Amounts Reclassified Out of Accumulated Other |
|
| June 30, |
|
| June 30, | ||||||||
| Comprehensive Income - Before-tax Income/(Expense) |
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 | ||
|
|
|
|
| (millions of dollars) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
| ||||
|
| adjustment included in net periodic benefit costs |
|
|
|
|
|
|
|
|
|
| |||
|
| (Statement of Income line: Non-service pension and |
|
|
|
|
|
|
|
|
|
| |||
|
| postretirement benefit expense) | (260) |
|
| (191) |
|
| (522) |
|
| (428) |
|
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
| Income Tax (Expense)/Credit For |
|
| June 30, |
|
| June 30, | ||||||||
| Components of Other Comprehensive Income |
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 | ||
|
|
|
|
| (millions of dollars) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Foreign exchange translation adjustment |
|
| 8 |
|
| - |
|
| 15 |
|
| - | ||
| Postretirement benefits reserves adjustment |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| (excluding amortization) |
|
| 52 |
|
| 10 |
|
| (10) |
|
| 20 | |
| Amortization and settlement of postretirement benefits reserves |
|
|
|
|
|
|
|
|
|
|
| |||
|
| adjustment included in net periodic benefit costs |
|
| (57) |
|
| (50) |
|
| (115) |
|
| (102) | |
| Total |
|
| 3 |
|
| (40) |
|
| (110) |
|
| (82) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense) | 2021 | 2020 | ||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs | ||||||||||||||||||||||||||
(Statement of Income line: Non-service pension and postretirement benefit expense) | (484) | (262) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
Income Tax (Expense)/Credit For Components of Other Comprehensive Income | 2021 | 2020 | ||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Foreign exchange translation adjustment | (53) | 7 | ||||||||||||||||||||||||
Postretirement benefits reserves adjustment (excluding amortization) | (58) | (62) | ||||||||||||||||||||||||
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs | (106) | (58) | ||||||||||||||||||||||||
Total | (217) | (113) |
5.Earnings Per Share
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
|
|
|
|
| June 30, |
|
| June 30, | ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per common share |
|
|
|
|
|
|
|
|
|
|
| ||
| Net income (loss) attributable to ExxonMobil (millions of dollars) |
| (1,080) |
|
| 3,130 |
|
| (1,690) |
|
| 5,480 | ||
|
|
|
|
|
|
|
|
|
|
|
|
| ||
| Weighted average number of common shares |
|
|
|
|
|
|
|
|
|
|
| ||
|
| outstanding (millions of shares) |
| 4,271 |
|
| 4,271 |
|
| 4,270 |
|
| 4,270 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings (Loss) per common share (dollars) (1) |
| (0.26) |
|
| 0.73 |
|
| (0.40) |
|
| 1.28 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Dividends paid per common share (dollars) |
| 0.87 |
|
| 0.87 |
|
| 1.74 |
|
| 1.69 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
Earnings per common share | ||||||||||||||||||||||||||
Net income (loss) attributable to ExxonMobil (millions of dollars) | 2,730 | (610) | ||||||||||||||||||||||||
Weighted average number of common shares outstanding (millions of shares) | 4,272 | 4,270 | ||||||||||||||||||||||||
Earnings (Loss) per common share (dollars) (1) | 0.64 | (0.14) | ||||||||||||||||||||||||
Dividends paid per common share (dollars) | 0.87 | 0.87 |
|
|
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
|
|
|
|
|
|
| June 30, |
|
| June 30, | ||||||
|
|
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
|
|
| (millions of dollars) | ||||||||||
| Components of net benefit cost |
|
|
|
|
|
|
|
|
|
|
|
| |||
|
| Pension Benefits - U.S. |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Service cost |
|
| 232 |
|
| 180 |
|
| 467 |
|
| 355 | |
|
|
| Interest cost |
|
| 177 |
|
| 189 |
|
| 354 |
|
| 382 | |
|
|
| Expected return on plan assets |
|
| (175) |
|
| (142) |
|
| (350) |
|
| (284) | |
|
|
| Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| service cost |
|
| 79 |
|
| 79 |
|
| 158 |
|
| 156 |
|
|
| Net pension enhancement and |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| curtailment/settlement cost |
|
| 52 |
|
| 53 |
|
| 104 |
|
| 107 |
|
|
| Net benefit cost |
|
| 365 |
|
| 359 |
|
| 733 |
|
| 716 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Pension Benefits - Non-U.S. |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Service cost |
|
| 171 |
|
| 138 |
|
| 346 |
|
| 277 | |
|
|
| Interest cost |
|
| 162 |
|
| 192 |
|
| 323 |
|
| 384 | |
|
|
| Expected return on plan assets |
|
| (216) |
|
| (192) |
|
| (438) |
|
| (389) | |
|
|
| Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| service cost |
|
| 115 |
|
| 55 |
|
| 234 |
|
| 158 |
|
|
| Net benefit cost |
|
| 232 |
|
| 193 |
|
| 465 |
|
| 430 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Other Postretirement Benefits |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Service cost |
|
| 44 |
|
| 33 |
|
| 89 |
|
| 66 | |
|
|
| Interest cost |
|
| 68 |
|
| 79 |
|
| 138 |
|
| 158 | |
|
|
| Expected return on plan assets |
|
| (5) |
|
| (4) |
|
| (9) |
|
| (8) | |
|
|
| Amortization of actuarial loss/(gain) and prior |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| service cost |
|
| 14 |
|
| 4 |
|
| 26 |
|
| 7 |
|
|
| Net benefit cost |
|
| 121 |
|
| 112 |
|
| 244 |
|
| 223 |
Three Months Ended
March 31, 2021 2020 (millions of dollars) Components of net benefit cost Pension Benefits - U.S. Service cost 225 235 Interest cost 139 177 Expected return on plan assets (180) (175) Amortization of actuarial loss/(gain) and prior service cost 55 79 Net pension enhancement and curtailment/settlement cost 298 52 Net benefit cost 537 368 Pension Benefits - Non-U.S. Service cost 195 175 Interest cost 130 161 Expected return on plan assets (258) (222) Amortization of actuarial loss/(gain) and prior service cost 123 119 Net pension enhancement and curtailment/settlement cost 12 0 Net benefit cost 202 233 Other Postretirement Benefits Service cost 49 45 Interest cost 56 70 Expected return on plan assets (5) (4) Amortization of actuarial loss/(gain) and prior service cost 8 12 Net benefit cost 108 123
7.Financial Instruments and Derivatives
At March 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value | |||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets (1) | 1,338 | 264 | — | 1,602 | (1,332) | (62) | — | 208 | ||||||||||||||||||||||||||||||||||||||||||
Advances to/receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
from equity companies (2)(6) | — | 3,115 | 6,083 | 9,198 | — | — | (233) | 8,965 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term | ||||||||||||||||||||||||||||||||||||||||||||||||||
financial assets (3) | 1,157 | — | 1,046 | 2,203 | — | — | 120 | 2,323 | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (4) | 1,389 | 329 | — | 1,718 | (1,332) | (113) | — | 273 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt (5) | 45,594 | 111 | 4 | 45,709 | — | — | (2,236) | 43,473 | ||||||||||||||||||||||||||||||||||||||||||
Long-term obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
to equity companies (6) | — | — | 3,567 | 3,567 | — | — | (288) | 3,279 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term | ||||||||||||||||||||||||||||||||||||||||||||||||||
financial liabilities (7) | — | — | 979 | 979 | — | — | 55 | 1,034 |
At December 31, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total Gross Assets & Liabilities | Effect of Counterparty Netting | Effect of Collateral Netting | Difference in Carrying Value and Fair Value | Net Carrying Value | |||||||||||||||||||||||||||||||||||||||||||
Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative assets (1) | 1,247 | 194 | — | 1,441 | (1,282) | (6) | — | 153 | ||||||||||||||||||||||||||||||||||||||||||
Advances to/receivables | ||||||||||||||||||||||||||||||||||||||||||||||||||
from equity companies (2)(6) | — | 3,275 | 5,904 | 9,179 | — | — | (367) | 8,812 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term | ||||||||||||||||||||||||||||||||||||||||||||||||||
financial assets (3) | 1,235 | — | 944 | 2,179 | — | — | 125 | 2,304 | ||||||||||||||||||||||||||||||||||||||||||
Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative liabilities (4) | 1,443 | 254 | — | 1,697 | (1,282) | (202) | — | 213 | ||||||||||||||||||||||||||||||||||||||||||
Long-term debt (5) | 50,263 | 125 | 4 | 50,392 | — | — | (4,890) | 45,502 | ||||||||||||||||||||||||||||||||||||||||||
Long-term obligations | ||||||||||||||||||||||||||||||||||||||||||||||||||
to equity companies (6) | — | — | 3,530 | 3,530 | — | — | (277) | 3,253 | ||||||||||||||||||||||||||||||||||||||||||
Other long-term | ||||||||||||||||||||||||||||||||||||||||||||||||||
financial liabilities (7) | — | — | 964 | 964 | — | — | 44 | 1,008 |
|
|
|
|
| At June 30, 2020 | ||||||||||||||
|
|
|
|
| (millions of dollars) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair Value |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Difference |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Gross |
| Effect of |
| Effect of |
| in Carrying |
| Net |
|
|
|
|
|
|
|
|
|
|
| Assets |
| Counterparty |
| Collateral |
| Value and |
| Carrying |
|
|
|
|
| Level 1 |
| Level 2 |
| Level 3 |
| & Liabilities |
| Netting |
| Netting |
| Fair Value |
| Value |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Derivative assets (1) |
| 1,488 |
| 165 |
| - |
| 1,653 |
| (1,423) |
| (65) |
| - |
| 165 | ||
| Advances to/receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| from equity companies (2)(7) |
| - |
| 1,916 |
| 6,795 |
| 8,711 |
| - |
| - |
| 48 |
| 8,759 | |
| Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| financial assets (3) |
| 1,157 |
| - |
| 889 |
| 2,046 |
| - |
| - |
| 137 |
| 2,183 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Derivative liabilities (4) |
| 1,748 |
| 88 |
| - |
| 1,836 |
| (1,423) |
| (325) |
| - |
| 88 | ||
| Long-term debt (5) |
| 49,106 |
| 166 |
| 4 |
| 49,276 |
| - |
| - |
| (3,962) |
| 45,314 | ||
| Long-term obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| to equity companies (7) |
| - |
| - |
| 3,766 |
| 3,766 |
| - |
| - |
| 65 |
| 3,831 | |
| Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| financial liabilities (6) |
| - |
| - |
| 1,066 |
| 1,066 |
| - |
| - |
| 6 |
| 1,072 |
Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net
|
|
|
|
| At December 31, 2019 | ||||||||||||||
|
|
|
|
| (millions of dollars) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Fair Value |
|
|
|
|
|
|
|
| ||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Difference |
|
|
|
|
|
|
|
|
|
|
|
|
| Total Gross |
| Effect of |
| Effect of |
| in Carrying |
| Net |
|
|
|
|
|
|
|
|
|
|
| Assets |
| Counterparty |
| Collateral |
| Value and |
| Carrying |
|
|
|
|
| Level 1 |
| Level 2 |
| Level 3 |
| & Liabilities |
| Netting |
| Netting |
| Fair Value |
| Value |
Assets |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Derivative assets (1) |
| 533 |
| 102 |
| - |
| 635 |
| (463) |
| (70) |
| - |
| 102 | ||
| Advances to/receivables |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| from equity companies (2)(7) |
| - |
| 1,941 |
| 6,729 |
| 8,670 |
| - |
| - |
| (128) |
| 8,542 | |
| Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| financial assets (3) |
| 1,145 |
| - |
| 974 |
| 2,119 |
| - |
| - |
| 44 |
| 2,163 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Liabilities |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||
| Derivative liabilities (4) |
| 568 |
| 70 |
| - |
| 638 |
| (463) |
| (105) |
| - |
| 70 | ||
| Long-term debt (5) |
| 25,652 |
| 134 |
| 3 |
| 25,789 |
| - |
| - |
| (1,117) |
| 24,672 | ||
| Long-term obligations |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| to equity companies (7) |
| - |
| - |
| 4,245 |
| 4,245 |
| - |
| - |
| (257) |
| 3,988 | |
| Other long-term |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| financial liabilities (6) |
| - |
| - |
| 1,042 |
| 1,042 |
| - |
| - |
| 16 |
| 1,058 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) | Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles, net | ||||||||||||||||||
(2) | Included in the Balance Sheet line: Investments, advances and long-term receivables | ||||||||||||||||||
(3) | Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net | ||||||||||||||||||
(4) | Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations | ||||||||||||||||||
(5) | Excluding finance lease obligations | ||||||||||||||||||
(6) | Included in the Balance Sheet line: Other long-term obligations | ||||||||||||||||||
(7) | Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company. | ||||||||||||||||||
|
|
Long-term debt. The increase in the estimated fair value and book value of long-term debt reflects the Corporation’s issuance of new debt securities during 2020. The carrying value of these debt securities as of June 30, 2020, is below:
| |||||||||
|
|
| |||||||
| |||||||||
| |||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
| |||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
| |||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
| ||||||||
|
|
(1) Includes premiums of $156 million.
(2) Euro-denominated.
The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of June 30, 2020,March 31, 2021, the Corporation has designated $1.9$5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.
The Corporation had undrawn short-term committed lines of credit of $15.4 billion and an undrawn long-term committed line of credit of $0.2 billion as of second quarter 2020.
15
The net notional long/(short) position of derivative instruments at June 30, 2020,March 31, 2021, and December 31, 2019,2020, was as follows:
|
|
|
|
|
|
| June 30, |
|
| Dec. 31, |
|
|
|
|
|
|
|
| 2020 |
|
| 2019 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Crude oil (millions of barrels) |
|
|
| (32) |
|
| 57 |
| |||
Petroleum products (millions of barrels) |
|
|
| (53) |
|
| (38) |
| |||
Natural Gas (MMBTUs) |
|
|
| (351) |
|
| (165) |
|
March 31, | December 31, | ||||||||||
2021 | 2020 | ||||||||||
(millions) | |||||||||||
Crude oil (barrels) | 71 | 40 | |||||||||
Petroleum products (barrels) | (53) | (46) | |||||||||
Natural Gas (MMBTUs) | (532) | (500) | |||||||||
|
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
|
|
|
|
|
| June 30, |
|
| June 30, | ||||||
|
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
|
|
| (millions of dollars) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Sales and other operating revenue |
|
| (251) |
|
| 33 |
|
| 985 |
|
| (242) | |||
Crude oil and product purchases |
|
| (178) |
|
| 33 |
|
| (530) |
|
| 15 | |||
|
| Total |
|
| (429) |
|
| 66 |
|
| 455 |
|
| (227) |
Three Months Ended March 31, | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Sales and other operating revenue | (512) | 1,236 | ||||||||||||||||||||||||
Crude oil and product purchases | 1 | (352) | ||||||||||||||||||||||||
Total | (511) | 884 |
8.Disclosures about Segments and Related Information
|
|
|
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||
|
|
|
|
|
| June 30, |
|
| June 30, | ||||||
|
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
| Earnings (Loss) After Income Tax |
| (millions of dollars) | ||||||||||||
|
| Upstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| (1,197) |
|
| 335 |
|
| (1,901) |
|
| 431 |
|
|
| Non-U.S. |
|
| (454) |
|
| 2,926 |
|
| 786 |
|
| 5,706 |
|
| Downstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| (101) |
|
| 310 |
|
| (202) |
|
| 149 |
|
|
| Non-U.S. |
|
| 1,077 |
|
| 141 |
|
| 567 |
|
| 46 |
|
| Chemical |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 171 |
|
| (6) |
|
| 459 |
|
| 155 |
|
|
| Non-U.S. |
|
| 296 |
|
| 194 |
|
| 152 |
|
| 551 |
|
| Corporate and financing |
|
| (872) |
|
| (770) |
|
| (1,551) |
|
| (1,558) | |
|
| Corporate total |
|
| (1,080) |
|
| 3,130 |
|
| (1,690) |
|
| 5,480 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Sales and Other Operating Revenue |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Upstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 1,081 |
|
| 2,594 |
|
| 2,858 |
|
| 5,287 |
|
|
| Non-U.S. |
|
| 2,022 |
|
| 3,709 |
|
| 4,589 |
|
| 7,513 |
|
| Downstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 8,203 |
|
| 18,721 |
|
| 23,587 |
|
| 34,363 |
|
|
| Non-U.S. |
|
| 16,302 |
|
| 35,306 |
|
| 45,606 |
|
| 67,603 |
|
| Chemical |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 1,570 |
|
| 2,504 |
|
| 3,866 |
|
| 5,009 |
|
|
| Non-U.S. |
|
| 3,090 |
|
| 4,647 |
|
| 6,890 |
|
| 9,342 |
|
| Corporate and financing |
|
| 9 |
|
| 10 |
|
| 15 |
|
| 20 | |
|
| Corporate total |
|
| 32,277 |
|
| 67,491 |
|
| 87,411 |
|
| 129,137 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Intersegment Revenue |
|
|
|
|
|
|
|
|
|
|
|
| ||
|
| Upstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 1,378 |
|
| 2,641 |
|
| 3,651 |
|
| 4,952 |
|
|
| Non-U.S. |
|
| 2,852 |
|
| 8,376 |
|
| 9,239 |
|
| 15,505 |
|
| Downstream |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 2,056 |
|
| 6,742 |
|
| 6,008 |
|
| 11,503 |
|
|
| Non-U.S. |
|
| 2,752 |
|
| 6,568 |
|
| 7,876 |
|
| 12,737 |
|
| Chemical |
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
| United States |
|
| 1,220 |
|
| 2,569 |
|
| 2,986 |
|
| 4,458 |
|
|
| Non-U.S. |
|
| 708 |
|
| 1,583 |
|
| 1,971 |
|
| 3,130 |
|
| Corporate and financing |
|
| 56 |
|
| 55 |
|
| 111 |
|
| 108 |
Three Months Ended
March 31, 2021 2020 Earnings (Loss) After Income Tax (millions of dollars) Upstream United States 363 (704) Non-U.S. 2,191 1,240 Downstream United States (113) (101) Non-U.S. (277) (510) Chemical United States 715 288 Non-U.S. 700 (144) Corporate and financing (849) (679) Corporate total 2,730 (610) Sales and Other Operating Revenue Upstream United States 1,885 1,777 Non-U.S. 3,094 2,567 Downstream United States 16,078 15,384 Non-U.S. 28,613 29,304 Chemical United States 3,091 2,296 Non-U.S. 4,887 3,800 Corporate and financing (96) 6 Corporate total 57,552 55,134 Intersegment Revenue Upstream United States 3,323 2,273 Non-U.S. 6,817 6,387 Downstream United States 3,953 3,952 Non-U.S. 5,381 5,124 Chemical United States 1,950 1,766 Non-U.S. 1,231 1,263 Corporate and financing 57 55
| Geographic |
|
|
|
|
|
|
|
|
|
|
| ||
|
|
| Three Months Ended |
|
| Six Months Ended | ||||||||
|
|
|
|
| June 30, |
|
| June 30, | ||||||
| Sales and Other Operating Revenue |
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 | ||
|
|
|
|
| (millions of dollars) | |||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| United States |
| 10,854 |
|
| 23,819 |
|
| 30,311 |
|
| 44,659 | ||
| Non-U.S. |
| 21,423 |
|
| 43,672 |
|
| 57,100 |
|
| 84,478 | ||
|
| Total |
| 32,277 |
|
| 67,491 |
|
| 87,411 |
|
| 129,137 | |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Significant Non-U.S. revenue sources include: (1) |
|
|
|
|
|
|
|
|
|
|
| ||
|
| Canada |
| 2,148 |
|
| 5,346 |
|
| 5,971 |
|
| 10,196 | |
|
| United Kingdom |
| 1,906 |
|
| 4,781 |
|
| 5,597 |
|
| 9,202 | |
|
| Singapore |
| 1,867 |
|
| 3,135 |
|
| 4,483 |
|
| 6,255 | |
|
| France |
| 1,583 |
|
| 3,258 |
|
| 4,172 |
|
| 6,332 | |
|
| Italy |
| 1,228 |
|
| 2,494 |
|
| 3,186 |
|
| 5,139 | |
|
| Belgium |
| 1,247 |
|
| 3,245 |
|
| 3,136 |
|
| 6,773 |
Geographic Three Months Ended
March 31,Sales and Other Operating Revenue 2021 2020 (millions of dollars) United States 21,054 19,457 Non-U.S. 36,498 35,677 Total 57,552 55,134 Canada 4,258 3,823 Singapore 3,435 2,616 United Kingdom 2,943 3,691 France 2,782 2,589 Belgium 1,989 1,889 Italy 1,865 1,958 Australia 1,729 1,654
9.Restructuring ActivitiesLeases
A previously recorded operating lease was renegotiated
18
10.Allowance for Current Expected Credit Loss (CECL)
Effective January 1, 2020,2021, the Corporation adoptedrecorded before-tax charges of $39 million, consisting primarily of employee separation costs, from workforce reductions in Singapore and Europe associated with the Financial Accounting Standards Board’s update, Financial Instruments – Credit Losses (Topic 326), as amended. global review of staffing levels. These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.
The Corporation is exposed to credit losses primarily through sales of petroleum products, crude oil, NGLs and natural gas, as well as loans to equity companies and joint venture receivables. A counterparty’s ability to pay is assessed through a credit review process that considers payment terms, the counterparty’s established credit rating or the Corporation’s assessment of the counterparty’s credit worthiness, contract terms, country of operation, and other risks. The Corporation can require prepayment or collateral to mitigate certain credit risks.
The Corporation groups financial assets into portfolios that share similar risk characteristics for purposes of determining the allowance for credit losses. Each reporting period, the Corporation assesses whether a significant change in the risk of credit loss has occurred. Among the quantitative and qualitative factors considered are historical financial data, current conditions, industry and country risk, current credit ratings and the quality of third-party guarantees secured from the counterparty. Financial assets are written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recognized in earnings. The Corporation manages receivable portfolios using past due balances as a key credit quality indicator.
The Corporation recognizes a credit allowance for off-balance sheet credit exposures as a liability on the balance sheet, separate from the allowance for credit losses related to recognized financial assets. Among these exposures are unfunded loans to equity companies and financial guarantees that cannot be cancelled unilaterally by the Corporation.
In the first half of 2020, the COVID-19 pandemic spread through most areas of the world resulting in economic uncertainty, global financial market volatility, and negative effects in the credit markets. The Corporation has considered these effects, alongworkforce reduction programs associated with the significantly lower balancesglobal review of trade receivables at the end of the quarter,staffing levels, which are recorded in its estimate of credit losses“Accounts payable and concluded no material adjustment to credit allowances in the quarter was required. At June 30, 2020, the Corporation’s evaluation of financial assets under Financial Instruments – Credit Losses (Topic 326), as amended, included $15,519 million of notes and accounts receivable, net of allowances of $153 million, and $9,434 million of loans and long-term receivables, net of allowances of $443 million, and certain other financial assets where there is immaterial risk of loss.
|
|
| Reserve for | Liabilities for |
| |||
|
|
| Notes and Other | Off-Balance |
| |||
|
|
| Receivables and Loans | Sheet Assets |
| |||
|
|
| Trade | Other |
|
|
| Total |
|
|
| (millions of dollars) | |||||
|
|
|
|
|
|
|
|
|
Balance at December 31, 2019 | 34 | 469 |
| - |
| 503 | ||
Cumulative effect of accounting change | 52 | 45 |
| 12 |
| 109 | ||
Current period provision | 8 | 2 |
| - |
| 10 | ||
Write-offs charged against the allowance | (1) | (1) |
| - |
| (2) | ||
Other | - | (12) |
| - |
| (12) | ||
Balance at June 30, 2020 | 93 | 503 |
| 12 |
| 608 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2021 | |||||
(millions of dollars) | |||||
Balance at January 1 | 403 | ||||
Additions/adjustments | 39 | ||||
Payments made | (130) | ||||
Balance at March 31 | 312 |
EXXON MOBIL CORPORATION
FUNCTIONAL EARNINGS SUMMARY | |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
Earnings (Loss) (U.S. GAAP) |
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 | |
|
|
| (millions of dollars) | ||||||||||
Upstream |
|
|
|
|
|
|
|
|
|
|
|
| |
| United States |
|
| (1,197) |
|
| 335 |
|
| (1,901) |
|
| 431 |
| Non-U.S. |
|
| (454) |
|
| 2,926 |
|
| 786 |
|
| 5,706 |
Downstream |
|
|
|
|
|
|
|
|
|
|
|
| |
| United States |
|
| (101) |
|
| 310 |
|
| (202) |
|
| 149 |
| Non-U.S. |
|
| 1,077 |
|
| 141 |
|
| 567 |
|
| 46 |
Chemical |
|
|
|
|
|
|
|
|
|
|
|
| |
| United States |
|
| 171 |
|
| (6) |
|
| 459 |
|
| 155 |
| Non-U.S. |
|
| 296 |
|
| 194 |
|
| 152 |
|
| 551 |
Corporate and financing |
|
| (872) |
|
| (770) |
|
| (1,551) |
|
| (1,558) | |
| Net income (Loss) attributable to ExxonMobil (U.S. GAAP) |
| (1,080) |
|
| 3,130 |
|
| (1,690) |
|
| 5,480 | |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (Loss) per common share (dollars) |
|
| (0.26) |
|
| 0.73 |
|
| (0.40) |
|
| 1.28 | |
|
|
|
|
|
|
|
|
|
|
|
|
| |
Earnings (Loss) per common share - assuming dilution (dollars) |
| (0.26) |
|
| 0.73 |
|
| (0.40) |
|
| 1.28 |
References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings (loss), Upstream, Downstream, Chemical and Corporate and financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.
CURRENT ECONOMIC CONDITIONS
During the first quarter of
First Three Months | ||||||||||||||||||||||||||
Earnings (Loss) (U.S. GAAP) | 2021 | 2020 | ||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Upstream | ||||||||||||||||||||||||||
United States | 363 | (704) | ||||||||||||||||||||||||
Non-U.S. | 2,191 | 1,240 | ||||||||||||||||||||||||
Downstream | ||||||||||||||||||||||||||
United States | (113) | (101) | ||||||||||||||||||||||||
Non-U.S. | (277) | (510) | ||||||||||||||||||||||||
Chemical | ||||||||||||||||||||||||||
United States | 715 | 288 | ||||||||||||||||||||||||
Non-U.S. | 700 | (144) | ||||||||||||||||||||||||
Corporate and financing | (849) | (679) | ||||||||||||||||||||||||
Net income (loss) attributable to ExxonMobil (U.S. GAAP) | 2,730 | (610) | ||||||||||||||||||||||||
Earnings (Loss) per common share (dollars) | 0.64 | (0.14) | ||||||||||||||||||||||||
Earnings (Loss) per common share - assuming dilution (dollars) | 0.64 | (0.14) |
In responseCorporate earnings (loss) mean net income (loss) attributable to these conditions, the Corporation announced significant reductions in 2020 capital spending and operating expenses. Capital and exploration expenditures for 2020 are now expected to be $23 billion, downExxonMobil (U.S. GAAP) from the previously announced $33 billion. The Corporation’s near-term reduction in capital expenditures resulted in a downward revisionconsolidated income statement. Unless otherwise indicated, references to estimates of proved reserves reported in the 2019 Form 10-K of approximately 1 billion oil-equivalent barrels, mainly relatedearnings (loss), Upstream, Downstream, Chemical and Corporate and financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to unconventional drilling in the United States. Consequently, unit-of-production depreciation and depletion rates for Upstream assets increased beginning in the first quarter.noncontrolling interests.
The Corporation also took actions to strengthen its liquidity including issuing $8.5 billion of long-term U.S. debt securities in the
20
Unless industry conditions seen thus far in 2020 improve significantly in the latter half of the year, the Corporation expects lower realized prices for its products to result in substantially lower2021 earnings and operating cash flow than in 2019. Amid such conditions, project deferrals and idling of capacity may increase, and project cancellations could occur, resulting in lower volumes across one or more business segments. The capital spending reductions will result in lower near-term production volumes in the Upstream and delays in previously anticipated volume increases in future years.
The Corporation has reviewed its near-term spending reductions and resulting near-term production impacts to determine whether they put its long-lived assets at risk for impairment. During the first half of 2020, and in large part due to expectations for lower prices in the near term, the Corporation recorded impairments for certain assets that were in aggregate, insignificant. Despite the challenging environment, the Corporation’s view of long-term supply and demand fundamentals has not changed significantly. However, the Corporation continues to assess its strategic plans and longer-term price views, taking into account current and developing industry and economic conditions, as part of its annual planning process. Depending on the outcome of that process, including in particular any significant future changes in the Corporation’s strategic plans or longer-term price views, a significant portion of the Corporation’s long-lived assets could be at risk for impairment. Due to interdependencies among the many elements critical to that planning process that are still unresolved or uncertain, it is not practicable to reasonably estimate the existence or range of any potential future impairment charges. In addition, in light of the current low commodity price environment, and depending on the extent and pace of recovery, the Corporation’s planned divestment program could be adversely affected by fewer financially suitable buyers. This could result in a slowing of the pace of divestments, certain assets being sold at a price below current book value, or impairment charges if the likelihood of divesting certain assets increases.
As disclosed in ExxonMobil’s 2019 Form 10-K, low crude oil and natural gas prices can impact the Corporation’s estimates of proved reserves as reported under Securities and Exchange Commission (SEC) rules. Average year-to-date crude oil and natural gas prices have been significantly affected by the low prices experienced since the end of the first quarter. If average prices seen thus far in 2020 persist for the remainder of the year, under the SEC definition of proved reserves, certain quantities of crude oil, bitumen and natural gas will not qualify as proved reserves at year-end 2020. Proved reserves estimates are affected by a number of factors including the level of capital spending, timing and completion of development projects, reservoir performance, market prices and differentials, costs, fiscal and commercial terms, government policies, regulatory approvals and partner considerations. Based on available price information for 2020 and the effects of expected reductions in capital spending mentioned above, it is possible that reductions to proved reserves could amount to approximately 20 percent of the Corporation’s 22.4 billion oil-equivalent barrels reported at year-end 2019.
The Corporation has taken steps, in line with government guidelines and restrictions, to limit the spread of COVID-19 among employees, contractors and the broader community, while also maintaining operations to ensure reliable supply of products to customers. The Corporation maintains robust business continuity plans, but should these efforts not be successful the Corporation could experience declines in workforce productivity that exacerbate some of the adverse operating and financial effects noted above.
REVIEW OF SECOND QUARTER 2020 RESULTS
ExxonMobil’s second quarter 2020 results were a loss of $1.1$2.7 billion, or $0.26$0.64 per diluted share, compared with earningsa loss of $3.1$0.6 billion a year earlier. The decreaseincrease in earnings was primarily the result of lowerthe absence of prior year unfavorable non-operational impacts, including an inventory write-down and impairments; higher Upstream realizations reduced Downstream margins, and decreased volumes across all business segments.Chemical margins; and lower expenses. These impacts were partly offset by favorable non-operationallower Downstream margins, winter storm impacts, reduced maintenance activity mainly in the Downstream and Chemical,unfavorable foreign exchange impacts, and lower expenses across all business segments. Non-operational impacts were mainly driven by an inventory adjustment, with further information provided in Note 2 to the unaudited condensed consolidated financial statements.Upstream volumes.
Results for the first six months of 2020 were a loss of $1.7 billion, or $0.40 per diluted share, compared with earnings of $5.5 billion a year earlier.
Capital and exploration expenditures were $12.5 billion, down $2.5 billion from 2019.
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Upstream results | ||||||||||||||||||||||||||
United States | 363 | (704) | ||||||||||||||||||||||||
Non-U.S. | 2,191 | 1,240 | ||||||||||||||||||||||||
Total | 2,554 | 536 |
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
| (millions of dollars) | ||||||||||
Upstream results |
|
|
|
|
|
|
|
|
|
|
|
| ||
| United States |
|
| (1,197) |
|
| 335 |
|
| (1,901) |
|
| 431 | |
| Non-U.S. |
|
| (454) |
|
| 2,926 |
|
| 786 |
|
| 5,706 | |
|
| Total |
|
| (1,651) |
|
| 3,261 |
|
| (1,115) |
|
| 6,137 |
Upstream resultsearnings were a loss of $1,651$2,554 million in the secondfirst quarter of 2020,2021, compared with earnings of $3,261 million in the second quarter of 2019.
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Upstream results were a loss of $1,115$536 million in the first six monthsquarter of 2020, compared2020.
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
•Liquids production totaled 2.3 million barrels per day, down 222,000 barrels per day, reflecting the impacts of government mandates, lower entitlements, and the winter storm.
First Quarter | ||||||||||||||
Upstream additional information | (thousands of barrels daily) | |||||||||||||
Volumes reconciliation (Oil-equivalent production) (1) | ||||||||||||||
2020 | 4,046 | |||||||||||||
Entitlements - Net Interest | (3) | |||||||||||||
Entitlements - Price / Spend / Other | (51) | |||||||||||||
Government Mandates | (124) | |||||||||||||
Divestments | (15) | |||||||||||||
Growth / Other | (66) | |||||||||||||
2021 | 3,787 |
|
|
|
| Second Quarter |
|
| First Six Months | ||||
Upstream additional information |
|
|
| (thousands of barrels daily) |
| ||||||
Volumes reconciliation (Oil-equivalent production)(1) |
|
|
|
|
|
|
|
|
| ||
2019 |
|
|
| 3,909 |
|
|
|
| 3,945 |
| |
| Entitlements - Net Interest |
|
|
| (10) |
|
|
|
| (10) |
|
| Entitlements - Price / Spend / Other |
|
|
| 122 |
|
|
|
| 81 |
|
| Government Mandates |
|
|
| (121) |
|
|
|
| (57) |
|
| Divestments |
|
|
| (158) |
|
|
|
| (168) |
|
| Growth / Other |
|
|
| (104) |
|
|
|
| 51 |
|
2020 |
|
|
| 3,638 |
|
|
|
| 3,842 |
| |
|
|
|
|
|
|
|
|
|
|
|
|
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. |
|
|
(1)
Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Downstream results | ||||||||||||||||||||||||||
United States | (113) | (101) | ||||||||||||||||||||||||
Non-U.S. | (277) | (510) | ||||||||||||||||||||||||
Total | (390) | (611) |
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
| (millions of dollars) | ||||||||||
Downstream results |
|
|
|
|
|
|
|
|
|
|
|
| ||
| United States |
|
| (101) |
|
| 310 |
|
| (202) |
|
| 149 | |
| Non-U.S. |
|
| 1,077 |
|
| 141 |
|
| 567 |
|
| 46 | |
|
| Total |
|
| 976 |
|
| 451 |
|
| 365 |
|
| 195 |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Downstream results were $365$390 million in the first six monthsquarter of 2020,2021, a $221 million improvement from the first quarter of 2020.
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Chemical results | ||||||||||||||||||||||||||
United States | 715 | 288 | ||||||||||||||||||||||||
Non-U.S. | 700 | (144) | ||||||||||||||||||||||||
Total | 1,415 | 144 |
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Corporate and financing results | (849) | (679) |
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
24
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
| (millions of dollars) | ||||||||||
Chemical results |
|
|
|
|
|
|
|
|
|
|
|
| ||
| United States |
|
| 171 |
|
| (6) |
|
| 459 |
|
| 155 | |
| Non-U.S. |
|
| 296 |
|
| 194 |
|
| 152 |
|
| 551 | |
|
| Total |
|
| 467 |
|
| 188 |
|
| 611 |
|
| 706 |
Chemical earnings were $467 million in the second quarter of 2020, up $279 million from the second quarter of 2019.
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
Chemical earnings were $611 million in the first six months of 2020, down $95 million from the first six months of 2019.
|
| |
|
| |
|
| |
|
| |
|
| |
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
| (millions of dollars) | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
Corporate and financing results |
|
| (872) |
|
| (770) |
|
| (1,551) |
|
| (1,558) |
Corporate and financing expenses were $872 million for the second quarter of 2020, up $102 million from the second quarter of 2019 onreflecting higher financing costs.
Corporate and financing expenses were $1,551 million for the first six months of 2020, essentially in line with 2019.
LIQUIDITY AND CAPITAL RESOURCES | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Second Quarter |
|
| First Six Months | ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
| (millions of dollars) | ||||||||||
Net cash provided by/(used in) |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Operating activities |
|
|
|
|
|
|
|
| 6,274 |
|
| 14,285 | |
| Investing activities |
|
|
|
|
|
|
|
| (11,448) |
|
| (12,670) | |
| Financing activities |
|
|
|
|
|
|
|
| 15,062 |
|
| (496) | |
Effect of exchange rate changes |
|
|
|
|
|
|
|
| (401) |
|
| 52 | ||
Increase/(decrease) in cash and cash equivalents |
|
|
|
|
|
|
|
| 9,487 |
|
| 1,171 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents (at end of period) |
|
|
|
|
|
|
|
| 12,576 |
|
| 4,213 | ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash flow from operations and asset sales |
|
|
|
|
|
|
|
|
|
|
|
| ||
| Net cash provided by operating activities (U.S. GAAP) |
|
| - |
|
| 5,947 |
|
| 6,274 |
|
| 14,285 | |
| Proceeds associated with sales of subsidiaries, property, |
|
|
|
|
|
|
|
|
|
|
|
| |
|
| plant & equipment, and sales and returns of investments |
|
| 43 |
|
| 33 |
|
| 129 |
|
| 140 |
| Cash flow from operations and asset sales |
|
| 43 |
|
| 5,980 |
|
| 6,403 |
|
| 14,425 |
LIQUIDITY AND CAPITAL RESOURCES
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Net cash provided by/(used in) | ||||||||||||||||||||||||||
Operating activities | 9,264 | 6,274 | ||||||||||||||||||||||||
Investing activities | (2,355) | (6,367) | ||||||||||||||||||||||||
Financing activities | (7,785) | 8,785 | ||||||||||||||||||||||||
Effect of exchange rate changes | 27 | (369) | ||||||||||||||||||||||||
Increase/(decrease) in cash and cash equivalents | (849) | 8,323 | ||||||||||||||||||||||||
Cash and cash equivalents (at end of period) | 3,515 | 11,412 | ||||||||||||||||||||||||
Cash flow from operations and asset sales | ||||||||||||||||||||||||||
Net cash provided by operating activities (U.S. GAAP) | 9,264 | 6,274 | ||||||||||||||||||||||||
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments | 307 | 86 | ||||||||||||||||||||||||
Cash flow from operations and asset sales | 9,571 | 6,360 |
DuringNet cash used by financing activities was $7.8 billion in the first sixthree months of 2020, the Corporation issued $23.22021, including $4.1 billion of debt repayments. billion of long-term debt. NetThis compares to net cash provided by financing activities was $15.1of $8.8 billion in the prior year, due to a long-term debt issuance in the first six monthsquarter of 2020, $15.6 billion higher than 2019 reflecting 2020 debt issuances.2020.
During the first six months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $0.3 billion. These purchases were made to offset shares or units settled in shares issued in conjunction with the company’s benefit plans and programs. Shares outstanding decreased from 4,234 million at year-end to 4,228 million at the end of the second quarter of 2020. Purchases may be made both in the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.
26
Internally generated funds are generally expected to cover financial requirements, supplemented by short-term and long-term debt as required. The Corporation has increased debt to a level management believes is appropriate to provide liquidity given market uncertainties and, based on current projections, does not plan to take on additional debt.
The Corporation distributed a total of $7.4$3.7 billion to shareholders in the first sixthree months of 20202021 through dividends.
TAXES |
|
|
|
|
|
|
|
|
|
|
|
|
| ||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Second Quarter |
|
| First Six Months |
| ||||||
|
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
|
| (millions of dollars) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income taxes |
|
| (471) |
|
| 1,241 |
|
| 41 |
|
| 3,124 |
| ||
| Effective income tax rate |
|
| 29 | % |
| 34 | % |
| -33 | % |
| 44 | % | |
Total other taxes and duties (1) |
|
| 5,683 |
|
| 8,366 |
|
| 13,180 |
|
| 16,453 |
| ||
|
| Total |
|
| 5,212 |
|
| 9,607 |
|
| 13,221 |
|
| 19,577 |
|
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Income taxes | 796 | 512 | ||||||||||||||||||||||||
Effective income tax rate | 33 | % | 481 | % | ||||||||||||||||||||||
Total other taxes and duties (1) | 7,283 | 7,497 | ||||||||||||||||||||||||
Total | 8,079 | 8,009 |
Total taxes were $13.2 billion for the first six months of 2020, a decrease of $6.4 billion from 2019. Income tax expense decreased by $3.1 billion to $41 million reflecting lower pre-tax income. The effective income tax rate of -33 percent compared to 44 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties decreased by $3.3 billion to $13.2 billion.
On January 13, 2021, the District Court ruled that no penalties apply to the Corporation's positions in this suit. The Corporation filed a notice of appeal regarding the substantive issues to the Fifth Circuit Court of Appeals on April 9, 2021. The government filed a notice of appeal regarding the penalty issue to the same court on April 19, 2021. Unfavorable resolution of all positions at issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.
CAPITAL AND EXPLORATION EXPENDITURES |
| |||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Second Quarter |
|
| First Six Months |
| ||||||
|
|
|
| 2020 |
|
| 2019 |
|
| 2020 |
|
| 2019 |
|
|
|
| (millions of dollars) |
| ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Upstream (including exploration expenses) |
|
| 3,577 |
|
| 6,242 |
|
| 8,703 |
|
| 11,603 |
| |
Downstream |
|
| 1,053 |
|
| 1,113 |
|
| 2,287 |
|
| 1,942 |
| |
Chemical |
|
| 695 |
|
| 718 |
|
| 1,477 |
|
| 1,414 |
| |
Other |
|
| 2 |
|
| 6 |
|
| 3 |
|
| 10 |
| |
| Total |
|
| 5,327 |
|
| 8,079 |
|
| 12,470 |
|
| 14,969 |
|
CAPITAL AND EXPLORATION EXPENDITURES
First Three Months | ||||||||||||||||||||||||||
2021 | 2020 | |||||||||||||||||||||||||
(millions of dollars) | ||||||||||||||||||||||||||
Upstream (including exploration expenses) | 2,357 | 5,126 | ||||||||||||||||||||||||
Downstream | 470 | 1,234 | ||||||||||||||||||||||||
Chemical | 306 | 782 | ||||||||||||||||||||||||
Other | — | 1 | ||||||||||||||||||||||||
Total | 3,133 | 7,143 |
Capital and exploration expenditures in the first six months of 2020 were $12.5 billion, down 1756 percent from the first six monthsquarter of 2019 in response to market conditions.2020. The Corporation anticipates an investment levelexpects 2021 capital spending to be in the range of $23$16 billion in 2020, down from the previously announced $33to $19 billion. Actual spending could vary depending on the progress of individual projects and property acquisitions.
If market conditions continue above the Corporation's planning basis, additional cash will not be used to increase capital investment above this range, but will instead be used to accelerate deleveraging.
28
Item 3. Quantitative and Qualitative Disclosures About Market Risk
2020.
29
PART II. OTHER INFORMATION
Item 1A. Risk Factors
The risk factors that are discussed in Item 1A of the registrant’s Annual Report on Form 10-K for 2019, including those risk factors in respect of commodity supply and demand and public health, encompass, among other things, current market conditions of production oversupply as well as demand reduction due to the COVID-19 pandemic which has led to a significant decrease in commodity prices. Our future business results, including cash flows and financing needs, will be affected by the extent and duration of these conditions and the effectiveness of responsive actions that we and others take, including our actions to reduce capital and operating expenses and government actions to address the COVID-19 pandemic, as well as any resulting impact on national and global economies and markets. At this time, it is difficult to predict the timing of any resolution of the current supply imbalances and the ultimate impact of COVID-19, and we continue to monitor market developments and evaluate the impacts of decreased demand on our production levels, as well as impacts on project development and future production.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
| ||||||||||||||||||||||||||||||||||||
Issuer Purchase of Equity Securities for Quarter Ended | ||||||||||||||||||||||||||||||||||||
Period | Total Number | Average | ||||||||||||||||||||||||||||||||||
Total Number of | Maximum Number | |||||||||||||||||||||||||||||||||||
|
| |||||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
| — | $ | — | — |
|
|
|
| ||||||||||||||||||||||||||||
February 2021 | — | $ | — | — | ||||||||||||||||||||||||||||||||
| — | $ | — | — |
|
|
| |||||||||||||||||||||||||||||
| — |
| — |
|
| |||||||||||||||||||||||||||||||
|
|
|
| |||||||||||||||||||||||||||||||||
|
|
| (See Note 1) |
Note 1 - On August 1, 2000,During the first quarter, the Corporation announced its intention to resume purchases ofdid not purchase any shares of its common stock for the treasury, both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding. The announcement did not specify an amountissue or expiration date. The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases.sell any unregistered equity securities.
.
31
INDEX TO EXHIBITS
|
| ||||||||
Exhibit | Description | ||||||||
|
| ||||||||
| |||||||||
ExxonMobil Supplemental Savings Plan. | |||||||||
ExxonMobil Supplemental Pension Plan. | |||||||||
ExxonMobil Additional Payments Plan. | |||||||||
Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer. | |||||||||
| Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer. | ||||||||
| Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer. | ||||||||
| Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer. | ||||||||
| Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer. | ||||||||
| Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer. | ||||||||
101 |
| Interactive Data Files (formatted as Inline XBRL). | |||||||
104 |
| Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101). | |||||||
32
EXXON MOBIL CORPORATION
| ||||||||
Date: | By: | /s/ | ||||||
|
|
| ||||||
|
| Vice President, Controller and | ||||||
|
| Principal Accounting Officer | ||||||
33