SEC Filing | Exxon Mobil Corporation

View:

Download DOC

Download PDF

Download XLS

Download XBRL

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to________

Commission File Number 1-2256

Exxon Mobil Corporation

(Exact name of registrant as specified in its charter)

New Jersey		13-5409005
(State or other jurisdiction of		(I.R.S. Employer
incorporation or organization)		Identification Number)

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

		Name of Each Exchange
Title of Each Class	Trading Symbol	on Which Registered
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

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

Class		Outstanding as of June 30, 2020
Common stock, without par value		4,228,233,288

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2020

TABLE OF CONTENTS

PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Condensed Consolidated Statement of Income Three and six months ended June 30, 2020 and 2019	3

Condensed Consolidated Statement of Comprehensive Income Three and six months ended June 30, 2020 and 2019	4

Condensed Consolidated Balance Sheet As of June 30, 2020 and December 31, 2019	5

Condensed Consolidated Statement of Cash Flows Six months ended June 30, 2020 and 2019	6

Condensed Consolidated Statement of Changes in Equity Three months ended June 30, 2020 and 2019	7

Condensed Consolidated Statement of Changes in Equity Six months ended June 30, 2020 and 2019	8

Notes to Condensed Consolidated Financial Statements	9

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations	20

Item 3.Quantitative and Qualitative Disclosures About Market Risk	29

Item 4.Controls and Procedures	29


PART II. OTHER INFORMATION
Item 1.Legal Proceedings	30

Item 1A.Risk Factors	30

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds	31

Item 6.Exhibits	31

Index to Exhibits	32

Signature	33

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)

			Three Months Ended		Six Months Ended
			June 30,		June 30,
			2020	2019	2020	2019
Revenues and other income
	Sales and other operating revenue		32,277	67,491	87,411	129,137
	Income from equity affiliates		103	1,359	878	3,068
	Other income		225	241	474	511
		Total revenues and other income	32,605	69,091	88,763	132,716
Costs and other deductions
	Crude oil and product purchases		14,069	38,942	46,152	73,743
	Production and manufacturing expenses		6,895	9,522	15,192	18,492
	Selling, general and administrative expenses		2,409	2,827	4,988	5,597
	Depreciation and depletion		4,916	4,631	10,735	9,202
	Exploration expenses, including dry holes		214	333	502	613
	Non-service pension and postretirement benefit expense		271	313	540	671
	Interest expense		317	216	566	397
	Other taxes and duties		5,154	7,675	11,986	15,080
		Total costs and other deductions	34,245	64,459	90,661	123,795
Income (Loss) before income taxes			(1,640)	4,632	(1,898)	8,921
	Income taxes		(471)	1,241	41	3,124
Net income (loss) including noncontrolling interests			(1,169)	3,391	(1,939)	5,797
	Net income (loss) attributable to noncontrolling interests		(89)	261	(249)	317
Net income (loss) attributable to ExxonMobil			(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

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)

				Three Months Ended		Six Months Ended
				June 30,		June 30,
				2020	2019	2020	2019

Net income (loss) including noncontrolling interests				(1,169)	3,391	(1,939)	5,797
Other comprehensive income (loss) (net of income taxes)
	Foreign exchange translation adjustment			2,875	600	(2,774)	1,349
	Postretirement benefits reserves adjustment
			(excluding amortization)	(136)	(34)	(49)	(60)
	Amortization and settlement of postretirement benefits reserves
			adjustment included in net periodic benefit costs	203	141	407	326
		Total other comprehensive income (loss)		2,942	707	(2,416)	1,615
Comprehensive income (loss) including noncontrolling interests				1,773	4,098	(4,355)	7,412
	Comprehensive income (loss) attributable to
			noncontrolling interests	131	391	(541)	573
Comprehensive income (loss) attributable to ExxonMobil				1,642	3,707	(3,814)	6,839

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)

				June 30,	Dec. 31,
				2020	2019
Assets
	Current assets
		Cash and cash equivalents		12,576	3,089
		Notes and accounts receivable – net		19,036	26,966
		Inventories
			Crude oil, products and merchandise	15,028	14,010
			Materials and supplies	4,629	4,518
		Other current assets		1,747	1,469
			Total current assets	53,016	50,052
	Investments, advances and long-term receivables			43,192	43,164
	Property, plant and equipment – net			250,524	253,018
	Other assets, including intangibles – net			14,763	16,363
			Total assets	361,495	362,597

Liabilities
	Current liabilities
		Notes and loans payable		22,952	20,578
		Accounts payable and accrued liabilities		33,216	41,831
		Income taxes payable		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.

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.

	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.

	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)		(