ExxonMobil Corp. had first-quarter 2023 earnings of $11.4 billion, compared with $12.8 billion in fourth-quarter 2022. Excluding the identified item associated with additional European taxes on the energy sector, adjusted earnings of first-quarter 2023 were $11.6 billion compared with $14 billion in the prior quarter.
Capital and exploration expenditures for first-quarter 2023 were $6.4 billion, on track to meet the company's full year guidance of $23-25 billion. The company's debt-to-capital ratio remained at 17% and the net-debt-to-capital ratio declined to about 4%, reflecting a period-end cash balance of $32.7 billion. ExxonMobil reiterated share repurchases of $35 billion in 2023-2024.
Upstream
ExxonMobil’s upstream earnings were $6.5 billion in first-quarter 2023, a decrease of $1.7 billion from fourth-quarter 2022. The main drivers were lower prices, with crude and natural gas realizations down 10% and 23%, respectively, and unfavorable unsettled derivatives mark-to-market effects of $2 billion, largely reflecting the absence of a positive mark-to-market impact in the prior quarter. These impacts were partially offset by robust cost control and seasonally lower expenses, the absence of year-end inventory effects, and favorable mix effects from advantaged growth in the Permian basin, Guyana, and in LNG. Identified items unfavorably impacted earnings by $158 million this quarter, down from $561 million in the previous quarter. Adjusted earnings excluding identified items were $6.6 billion, down from $8.8 billion in the prior quarter.
Net production in the first quarter was 3.8 MMboe/d, an increase of nearly 160,000 boe/d compared with the same quarter last year. Excluding divestments, entitlements and the Sakhalin-1 expropriation, net production increased nearly 300,000 boe/d driven by advantaged projects in Guyana and the Permian basin.
The company also noted sanction of the Uaru development in Guyana. This is the fifth offshore project and is expected to provide an additional 250,000 boe/d of gross capacity with start-up targeted for 2026. In addition, two new exploration discoveries were made this year.
Downstream
Energy Products earnings totaled $4.2 billion, up $113 million from the fourth quarter. Positive drivers were volume and mix improvements driven by reliable operations and the Beaumont refinery expansion start-up and the absence of unfavorable prior-quarter unsettled derivatives. The absence of year-end inventory effects, foreign exchange impacts, and downtime from scheduled maintenance as well as fewer days in the quarter negatively impacted results. Earnings excluding identified items decreased to $4.2 billion from $4.8 billion. Identified items in the fourth quarter included a higher impact from the additional European taxes on the energy sector and asset impairments.
Chemical Products earnings were $371 million, up from $250 million in the fourth quarter, mainly on improved margins from strengthening of the North American ethane feed advantage partly offset by higher scheduled maintenance.
Specialty Products earnings were $774 million, up $14 million from the fourth quarter. Improved finished lubes margins partially offset lower industry basestock prices. Unfavorable margin effects were more than offset by higher volumes supported by China demand recovery and finished lubes market position growth as well as seasonally lower expenses. In addition, earnings were impacted by the absence of favorable year-end inventory impacts.