Exxon Mobil Corp. estimated first-quarter 2021 earnings of $2.7 billion, compared with a loss of $610 million in first-quarter 2020, and compared to a fourth-quarter 2020 loss of $20.1 billion (OGJ Online, Feb. 3, 2021).
Results included unfavorable identified items of $31 million. First quarter capital and exploration expenditures were $3.1 billion, $4 billion lower than first-quarter 2020.
Cash flow from operating activities was $9.3 billion.
Oil-equivalent production was 3.8 million b/d, up 3% from fourth-quarter 2020. Excluding entitlement effects, government mandates and divestments, oil-equivalent production was up 2%.
The severe weather event in Texas in February reduced first quarter earnings by nearly $600 million across all businesses from decreased production and lower sales volumes, repair costs, and the net impact of energy purchases and sales. All affected facilities have resumed normal operations.
Upstream
Total production volumes increased 98,000 boe/d from fourth-quarter 2020. Excluding entitlement effects, government mandates and divestments, liquids volumes were down 3% including impacts from higher maintenance and the winter storm. Natural gas volumes increased 12% driven by higher seasonal demand in Europe. The segment earned $2.55 billion for the quarter.
During the quarter, production volumes in the Permian Basin averaged 394,000 boe/d, an increase of 12% from the prior year.
Downstream
Industry fuels margins improved from the fourth quarter, but remained below 10-year-lows driven by market oversupply and high product inventory levels. Lubricants delivered strong performance, underpinned by lower costs and improved margins. The company reported a loss of $390 million in the segment for the quarter.
Overall refining throughput was essentially flat with the fourth quarter as the company managed refinery operations in line with fuel demand and integrated chemical manufacturing needs.
Chemical
Industry margins improved further in the quarter reflecting continued strong demand, global shipping constraints, and ongoing supply disruptions, particularly in North America, where the polyethylene and polypropylene markets were affected by severe winter weather in Texas.
Chemical earnings performance of $1.4 billion was supported by robust base operations capturing high margins and continued delivery of cost efficiencies, the company said.
The company is pursuing three new advanced recycling initiatives in the US and Europe and plans to begin marketing certified circular plastics products later this year.
Capital program
ExxonMobil’s 2021 capital program remains at $16 billion-19 billion. If market conditions continue above the company's planning basis, additional cash will be used to accelerate deleveraging.
