ExxonMobil, an American multinational oil and gas corporation and one of the largest companies in the world by market value, today announced earnings of $9,400 million for the 4th quarter 2011, an increase of 2% or $150 million from the fourth quarter of 2010.
Upstream earnings were $8,829 million, up $1,349 million from the fourth quarter of 2010. Higher liquids and natural gas realizations increased earnings by $1,990 million. Lower volumes and production mix effects decreased earnings by $1,450 million. All other items, primarily gains on asset sales, increased earnings by $810 million.
On an oil-equivalent basis, production decreased 9% from the fourth quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was down 4%.
Liquids production totaled 2,250 kbd (thousands of barrels per day), down 276 kbd from the fourth quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was down 3%, mainly due to field decline.
Fourth quarter natural gas production was 13,677 mcfd (millions of cubic feet per day), down 975 mcfd from 2010, as U.S. growth was more than offset by field decline and lower demand in Europe.
Earnings from U.S. Upstream operations were $1,184 million, $133 million lower than the fourth quarter of 2010. Non-U.S. Upstream earnings were $7,645 million, up $1,482 million from last year. Downstream earnings of $425 million were down $725 million from the fourth quarter of 2010. Weaker margins, principally in refining, decreased earnings $740 million. Volume and mix effects decreased earnings by $30 million, while all other items increased earnings by $40 million. Petroleum product sales of 6,493 kbd were 62 kbd lower than last year’s fourth quarter.
ExxonMobil was the high bidder on 50 blocks in the most recent U.S. Gulf of Mexico lease sale, providing new exploration opportunities.
Corporate and financing expenses were $397 million, down $50 million from the same period in 2010.
ExxonMobil’s Chairman Rex W. Tillerson commented:
“ExxonMobil recorded strong results while investing at record levels to develop new supplies of energy that are critical to meeting growing world demand, and supporting economic recovery and growth. Fourth quarter earnings of $9.4 billion were up 2% from the fourth quarter of 2010. Full year 2011 earnings were $41.1 billion, up 35% from 2010, reflecting higher crude oil and natural gas realizations, improved refining and chemical margins, and gains on asset sales. Capital and exploration expenditures were a record $36.8 billion in 2011. Oil-equivalent production was up 1% from 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 4%. In 2011, the Corporation distributed $29 billion to shareholders through dividends and share purchases to reduce shares outstanding.”
Offshore Energy Today Staff, January 31, 2012;