ExxonMobil(US:XOM)2023-10-30 16:00Financial Performance - ExxonMobil's Q3 2023 earnings were $9.1 billion, or $2.25 per diluted share, down from $19.7 billion a year earlier, primarily due to lower crude and natural gas prices [56]. - For the first nine months of 2023, ExxonMobil reported earnings of $28.4 billion, or $6.98 per diluted share, compared to $43.0 billion in the same period of 2022 [56]. - Total earnings for Energy Products in Q3 2023 were $2.442 billion, a decrease of 58% from $5.819 billion in Q3 2022 [66]. - Earnings from Specialty Products in Q3 2023 totaled $619 million, down from $762 million in Q3 2022, indicating a decline of 18.7% [74]. - The company reported a loss of $33 million related to additional European taxes in Q3 2023, impacting overall earnings [66]. - Cash flow from operations for the first nine months of 2023 was $41.7 billion, a decrease of $17.5 billion from the same period in 2022 [79]. - The effective income tax rate for Q3 2023 was 34%, up from 29% in the prior year, primarily due to a change in the mix of results in jurisdictions with varying tax rates [83]. - Total taxes for the first nine months of 2023 were $37.7 billion, a decrease of $0.4 billion from 2022, with income tax expense down by $1.6 billion to $12.8 billion [83]. Production and Sales - Net production of crude oil and natural gas liquids in the United States decreased to 756 thousand barrels daily in Q3 2023 from 783 thousand barrels daily in Q3 2022, a decline of 3.5% [61]. - Worldwide oil-equivalent production was 3.688 million barrels per day in Q3 2023, down 28 thousand barrels per day from Q3 2022, while net production grew by 79 thousand barrels per day excluding impacts from entitlements and divestments [65]. - Net natural gas production available for sale in the United States was 2.271 billion cubic feet daily in Q3 2023, down from 2.351 billion cubic feet daily in Q3 2022, a decrease of 3.4% [61]. - Worldwide energy products sales reached 5.551 billion dollars in Q3 2023, slightly up from 5.537 billion dollars in Q3 2022 [68]. - Specialty Products sales in the U.S. for the third quarter of 2023 were 498,000 metric tons, up from 483,000 metric tons in the same period of 2022, while non-U.S. sales decreased to 1,414,000 metric tons from 1,434,000 metric tons [77]. Capital Expenditures and Investments - Capital and exploration expenditures for Q3 2023 were $6.0 billion, an increase of $0.3 billion from Q3 2022, and totaled $18.6 billion for the first nine months, up $3.3 billion from 2022 [56]. - The Corporation plans to complete 2023 capital spending at the top end of the guidance of $23 billion to $25 billion [85]. - The Corporation continues to evaluate opportunities for acquisitions, focusing on strategic fit, cost synergies, and potential for future growth [80]. - The company’s future capital expenditures will include allocations to low carbon solutions, although specific amounts were not disclosed [90]. Acquisitions and Strategic Initiatives - ExxonMobil announced the acquisition of Denbury Inc. on July 13, 2023, to enhance its Low Carbon Solutions opportunities [51]. - A definitive merger agreement with Pioneer Natural Resources was announced on October 11, 2023, which is expected to more than double ExxonMobil's Permian production volume to 1.3 million barrels of oil equivalent per day [51]. - The company is actively pursuing acquisitions, including the completion of the Denbury acquisition, which is part of its strategy to enhance its carbon capture and storage capabilities [90]. Environmental and Regulatory Commitments - The company aims to achieve net zero Scope 1 and Scope 2 emissions from operated assets by 2050, with a target for the Upstream Permian Basin unconventional operated assets to reach net zero by 2030 [90]. - The company plans to eliminate routine flaring in line with the World Bank's Zero Routine Flaring initiative and aims for near-zero methane emissions from its operations [90]. - The company is focused on advancing its greenhouse gas emission-reduction plans, which are incorporated into its medium-term business plans updated annually [90]. - The company’s plans are influenced by government policies, including the U.S. Inflation Reduction Act, which supports lower carbon investment opportunities [90]. Market and Economic Factors - Market risks for the nine months ended September 30, 2023, remain consistent with those discussed in the 2022 Annual Report [92]. - The company’s financial and operational performance is subject to various market factors, including global supply and demand changes for oil and natural gas [90]. - The company’s ability to maintain cost reductions and efficiencies is critical to offsetting inflationary pressures and achieving structural earnings improvement [90].