ExxonMobil explains $3.4 bn earnings in 2Q 2017
By Jackline Oshiokameh
Exxon Mobil Corporation estimated second quarter 2017 earnings of $3.4 billion, or $0.78 per diluted share, compared with $1.7 billion a year earlier, as oil and gas realizations increased and refining margins improved.
“These solid results across our businesses were driven by higher commodity prices and a continued focus on operations and business fundamentals,” said Darren W. Woods, chairman and chief executive officer.
“Our job is to grow long-term value by investing in our integrated portfolio of opportunities that succeed regardless of market conditions.”
He said that during the second quarter, upstream earnings rose substantially to $1.2 billion as realisations increased.
Woods disclosed that downstream results grew 68 percent to $1.4 billion on improved refining margins and higher refinery volumes.
He stated that chemical earnings were $985 million; $232 million lower than a year ago, primarily due to higher turnaround activities, lower volumes, and decreased margins.
The company also stated that upstream volumes declined 1 percent to 3.9 million oil-equivalent barrels per day compared with a year ago largely due to lower entitlements, while increases from projects and work programs more than offset the impacts of field decline.
“Cash flow from operations and asset sales was $7.1 billion, including proceeds associated with asset sales of $154 million. Capital and exploration expenditures were $3.9 billion, down 24 percent from the second quarter of 2016. Oil-equivalent production was 3.9 million oil-equivalent barrels per day, down 1 percent from the prior year.
“Excluding entitlement effects and divestments, oil-equivalent production was up 1 percent from the prior year. The corporation distributed $3.3 billion in dividends to shareholders. Dividends per share of $0.77 increased 2.7 percent compared to the second quarter of 2016. The company made a final investment decision to proceed with the first phase of the Liza field development located offshore Guyana.
“Production is expected to begin by 2020, less than five years after discovery of the field, from a floating production, storage, and offloading vessel designed to produce up to 120,000 barrels of oil per day. The Liza-4 well encountered more than 197 feet (60 meters) of high-quality, oil-bearing sandstone reservoirs, which will underpin a potential Liza Phase 2 development. In July, the company also announced positive results from the Payara-2 well, which encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone reservoirs.
“Gross recoverable resources for the Stabroek block are now estimated at 2.25 billion to 2.75 billion oil-equivalent barrels, which includes Liza and discoveries at Payara and Snoek. ExxonMobil announced positive results for the Muruk-1 sidetrack 3 well in Papua New Guinea, located about 13 miles (21 kilometers) northwest of Hides gas field.
“The Muruk-1 sidetrack well was safely drilled to 13,550 feet (4,130 meters) and encountered high-quality sandstone reservoirs southwest of the Muruk-1 natural gas discovery. During a subsequent production test the well successfully flowed gas and condensate at an equipment constrained rate of 16 million standard cubic feet per day. The company spuds its first well on the recently acquired Delaware Basin acreage, drilling a 12,500 foot (3,810 meters) lateral section.
“ExxonMobil continues to expand midstream capabilities in the basin through strategic partnerships such as the recently signed agreement with Summit Midstream Partners, LP. The company safely towed the Hebron platform from the Bull Arm construction site in Newfoundland and Labrador, Canada, to the Hebron field in the Jeanne d’Arc Basin, located about 220 miles (350 kilometers) offshore.”