ExxonMobil releases 4Q19 financial results

Oil-equivalent production was in line with 4Q18, at 4 million bpd, with a 4% increase in liquids offset by a 5% decrease in gas. Excluding entitlement effects and divestments, liquids production increased 2% driven by Permian Basin growth, while natural gas volumes decreased 4%.

"Our operations performed well, while short-term supply length in the downstream and chemicals businesses impacted margins and financial results," said Darren W. Woods, chairman and chief executive officer. "Growth in demand for the products that underpin our businesses remains strong. We remain focused on improving our base businesses, driving efficiencies, and optimising the value of our investment portfolio."

In the company's upstream sector, average crude and natural gas realisations were essentially in line with 3Q18. Liquids volumes increased 2% from 3Q18, on growth and lower scheduled maintenance. Natural gas volumes increased 5% driven by seasonal demand. Permian unconventional development continued with production up 54% from 4Q18.

Oil production started from the Liza field offshore Guyana, less than five years after the first discovery of hydrocarbons – well ahead of industry average. Gross production from the Liza Phase 1 development, located in the Stabroek block, is expected to reach capacity of 120 000 gross barrels of oil per day in coming months. A second floating production, storage and offloading vessel (FPSO), with production capacity up to 220 000 gross barrels of oil per day, is under construction to support the Liza Phase 2 development. During the quarter, the company also announced its 15th discovery on the Stabroek block, at the Mako-1 well southeast of the Liza field. Inclusive of other recent discoveries, the estimated recoverable resource offshore Guyana now exceeds 8 billion gross oil-equivalent barrels. ExxonMobil anticipates that by 2025 at least five FPSOs will be producing more than 750 000 gross barrels of oil per day.

The company completed the previously announced sale of its non-operated upstream assets in Norway to Vår Energi AS for US$4.5 billion as part of its plans to divest approximately US$15 billion in non-strategic assets by 2021. Estimated total cash flow from the divestment is around US$4 billion after closing adjustments, including US$2.9 billion received in the fourth quarter and estimated cash flow in future periods associated with deferred consideration of US$0.3 billion and a refund of income tax payments of $0.6 billion. The corporation’s 4Q19 earnings include a US$3.7 billion gain on the sale.

ExxonMobil secured more than 1.7 million acres for exploration offshore Egypt during the quarter. The acquisition includes 1.2 million acres in the North Marakia Offshore block, which is located approximately five miles offshore Egypt’s northern coast in the Herodotus basin. The remaining 0.5 million acres are in the North East El Amriya Offshore block in the Nile Delta. Exploration activities are scheduled to begin in 2020.

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