ExxonMobil Corp. reported estimated third-quarter earnings of $6.2 billion compared with $4 billion in the same quarter in 2017. Cash flow from operating activities of $11.1 billion was the highest since third-quarter 2014. Capital and exploration expenditures were $6.6 billion—$18.1 billion year-to-date—and up 10% from the prior year.
Production reached 3.8 million boe/d, a 4% increase from this year’s second quarter and a 2% decrease from third-quarter 2017.
Excluding entitlement effects and divestments, liquids production increased 6%, as growth in North America more than offset decline and higher downtime. Natural gas volumes decreased 4%, excluding entitlement effects and divestments, largely due to a continuing near-term shift in US unconventional development from dry gas to liquids.
“We are seeing the benefits of integration as we capture value from advantaged feedstock from the Permian and Western Canada for our North American refineries,” said Darren W. Woods, chairman and chief executive officer. “The logistical network we’ve established provides reliable connectivity between upstream production and manufacturing facilities.”
Woods continued, “We’re pleased with the increase in production from the second quarter of 2018 recognizing it reflects contributions from just one of our key growth areas, the Permian. We expect to continue to increase volumes over time as we ramp up activity in the Permian and new projects start up.”
Portfolio developments
ExxonMobil made its ninth discovery offshore Guyana with the Hammerhead-1 well, marking its fifth discovery on the Stabroek Block in the past year (OGJ Online, Aug. 30, 2018). Hammerhead-1 encountered 197 ft of high-quality, oil-bearing sandstone reservoir.
The company increased holdings in Brazil’s presalt basins, winning the Tita exploration block with co-venturer Qatar Petroleum during Brazil’s fifth presalt bid round (OGJ Online, Sept. 28, 2018). The awarded block added more than 71,500 net acres to the portfolio, expanding its total position in the country to 2.3 million net acres. ExxonMobil will be the operator with 64% interest.
ExxonMobil completed the sale of about 1,000 Esso-branded service stations in Germany to EG Group Ltd. on Oct. 1.
Production started at the Kaombo project, an offshore development on Angola Block 32, where ExxonMobil has a 15% interest (OGJ Online, July 27, 2018). Production will reach an estimated 230,000 b/d at its peak, and the associated gas will be delivered to the Angola LNG plant in Soyo.
A 1.5 million-tonne/year ethane cracker started at the company’s integrated Baytown, Tex., chemical and refining complex (OGJ Online, July 26, 2018). It provides ethylene feedstock to new performance polyethylene lines at the company’s Mont Belvieu plastics plant, which began production in fall 2017. The Mont Belvieu plant has a manufacturing capacity of about 1.3 million tpy.
ExxonMobil signed a cooperation framework agreement with the Guangdong Provincial People’s Government in China to advance discussions concerning the proposed construction of a chemical complex in the Huizhou Dayawan Petrochemical Industrial Park. Subject to a final investment decision, the complex would include a 1.2 million-tpy ethylene flexible feed steam cracker, two performance polyethylene lines and two differentiated performance polypropylene lines. Startup is planned for 2023 (OGJ Online, Sept. 6, 2018).
The framework agreement also confirms Guangdong Province’s support in progressing the Huizhou LNG receiving terminal, in which ExxonMobil intends to participate, including supply of LNG.
