NYSE$XOM

Exxon-Mobil · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

ExxonMobil's Q3 2020 results improved driven by early stages of demand recovery and on track to exceed reduction targets for 2020 capital and cash expenses.

ExxonMobil reported a third quarter 2020 loss of $680 million, or $0.15 per share assuming dilution. Third quarter capital and exploration expenditures were $4.1 billion. Oil-equivalent production was 3.7 million barrels per day, up 1 percent from the second quarter of 2020.

  • Third quarter results improved by $400 million from the second quarter, primarily driven by early stages of demand recovery; excluding identified items, results improved by $2.2 billion
  • On track to exceed reduction targets for 2020 capital and cash expenses; further reductions anticipated in 2021
  • Continued Guyana progress with third major deepwater development approval and two new discoveries
  • Preliminary 2021 capital program expected to be in the range of $16 billion to $19 billion, a reduction from the 2020 target of $23 billion announced in April.

Headline financials

Total Revenue

$46.2B

Previous: $65B-29.0%
EPS (adj)

-$0.18

Previous: $0.68-126.5%
Upstream Production

3.7M

No prior period
Capital Expenditures

-$13.7B

Previous: -$17.7B+22.7%
Free Cash Flow

-$14.3B

Previous: -$14.5B+1.1%
Net Income

-$680M

Previous: $3.17B-121.5%
Operating Income

$42.5B

Previous: $62B-31.4%
Gross Profit

$46B

Previous: $65B-29.2%
Cash & Equivalents

$8.83B

Previous: $5.35B+65.1%
Total Assets

$358B

Previous: $359B-0.4%

Revenue & EPS history

ExxonMobil · Revenue · Quarterly

$46.2B

Q3 2020-29%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

ExxonMobil expects to identify further structural efficiencies as it continues previously announced country-by-country reviews and the company expects to complete an assessment in the fourth quarter.

Tailwinds

  • Improved market conditions enabled full recovery of production impacted by economic curtailments.
  • Supply chain optimization, higher product sales due to increased demand, and higher marketing margins more than offset lower industry fuels margins driven by market oversupply and high product inventory levels.
  • Third quarter saw the best reliability and process performance in the last 10 years, while average refinery utilization increased about 6 percent from the second quarter on demand recovery.
  • Chemical sales volumes were higher than second quarter, benefiting from resilient packaging demand and recovering automotive and construction markets.
  • Compared to 2019, drilling and completion costs decreased more than 20 percent, while drilling rates (lateral feet per day) and fracturing rates (stages per day) both increased more than 30 percent.

Headwinds

  • Natural gas realizations declined, primarily due to a lag in crude-linked LNG contract pricing.
  • Government mandated curtailments negatively impacted third quarter results and are anticipated to continue in the fourth quarter.
  • Chemical margins were negatively impacted by higher feed costs.
  • Depending on the outcome of the planning process, including in particular any significant future changes to the corporation’s current development plans for its dry gas portfolio, long-lived assets with carrying values of approximately $25 billion to $30 billion could be at risk for significant impairment.
  • Rig count reductions continue, with 10-15 rigs expected to be operating by year-end.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q3 2020

Historical avgQ3 2020

-0.3%

Avg return

Earnings day

-0.5%

Avg return

5 days after

-0.1%

Avg return

30 days after

48%

35 / 73 earnings

Positive

+6.1%

Q4 2021

Best reaction

-10.5%

Q4 2017

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.1%-3.9%-2.3%
Q4 2025+0.7%+5.0%+8.5%
Q3 2025-0.4%-0.9%+1.1%
Q2 2025-2.1%-2.6%+2.1%
Q1 2025+0.3%-1.1%-3.3%
Q4 2024-2.5%+0.3%+1.6%
Q3 2024+1.6%+3.6%+1.0%
Q2 2024-1.9%-1.1%+0.8%
Q1 2024-1.4%-4.4%-6.5%
Q4 2023-0.8%-0.2%+3.4%
Q3 2023-1.6%-1.8%-2.8%
Q2 2023+1.7%-0.1%+2.7%
Q1 2023-1.8%-7.6%-10.2%
Q4 2022+1.0%-1.4%-1.9%
Q3 2022+3.0%+1.9%+5.3%
Q2 2022+2.0%-1.7%+5.6%
Q1 2022-0.9%+5.2%+11.9%
Q4 2021+6.1%+7.2%+6.7%
Q3 2021+2.1%-0.6%-4.8%
Q2 2021-2.3%-3.5%-5.4%
Q1 2021-0.2%+3.4%-1.0%
Q4 2020+5.6%+11.2%+30.7%
Q3 2020+3.1%+0.8%+21.9%
Q2 2020+0.9%+4.7%-2.8%
Q1 2020-3.4%-5.3%-2.2%
Q4 2019-6.3%-3.2%-20.6%
Q3 2019+6.1%+5.8%+0.8%
Q2 2019-3.0%-2.7%-5.5%
Q1 2019-2.7%-4.3%-9.9%
Q4 2018+2.1%+2.7%+9.2%
Q3 2018+1.2%+2.9%-1.5%
Q2 2018-3.0%-4.6%-5.5%
Q1 2018-3.8%-5.0%-2.7%
Q4 2017-10.5%-13.6%-15.2%
Q3 2017+0.1%+0.5%-2.5%
Q2 2017-1.0%-0.3%-5.1%
Q1 2017+1.0%+1.8%+0.4%
Q4 2016-2.3%-1.6%-1.8%
Q3 2016-4.1%-4.0%+0.2%
Q2 2016-4.8%-3.0%-3.2%
Q1 2016+1.2%
Q4 2015+2.9%
Q3 2015+3.7%
Q2 2015-6.0%
Q1 2015+1.1%
Q4 2014+5.5%
Q3 2014+0.9%
Q2 2014-4.3%
Q1 2014-0.4%
Q4 2013-3.1%
Q3 2013+1.1%
Q2 2013-1.9%
Q1 2013-1.6%
Q4 2012-0.9%
Q3 2012-1.0%
Q2 2012+2.6%
Q1 2012-0.9%
Q4 2011+0.2%
Q3 2011+1.5%
Q2 2011-3.7%
Q1 2011+0.2%
Q4 2010-0.5%
Q3 2010+2.3%
Q2 2010-0.0%
Q1 2009-3.7%
Q1 2010+0.8%
Q4 2009+0.4%
Q4 2007+0.4%
Q3 2009+1.8%
Q3 2008+1.8%
Q2 2009-1.2%
Q2 2008-1.2%
Q4 2008-1.2%

Discussion

Share your read of this quarter. Sign-in carries your eToro identity.

Join the conversation

Sign in with eToro to post your read of this quarter and vote on others'.

Sign in with eToro