ExxonMobil thrilled with US$3.1B second quarter earnings

Aug 03, 2019 News

ExxonMobil Corporation revealed yesterday that it earned US$3.1 billion or $0.73 per share assuming dilution for the second quarter (Q) of 2019.

ExxonMobil CEO, Darren Woods

It noted via its Q2 2019 ExxonMobil Corp Earnings Call, that earnings included a favorable identified item of about US$500 million, or $0.12 per share assuming dilution, reflecting the impact of a tax rate change in Alberta, Canada.
Further, it was noted that capital and exploration expenditures were $8.1 billion, up 22 percent from the prior year, reflecting key investments in the Permian Basin.
ExxonMobil stated that oil-equivalent production was 3.9 million barrels per day, up seven percent from the second quarter of 2018. It said that liquids production increased eight percent driven by Permian Basin growth and reduced downtime, with limited impact from entitlement effects and divestments.
It also disclosed that natural gas volumes increased five percent, excluding entitlement effects and divestments.
Commenting on the performance, ExxonMobil’s Chairman and Chief Executive Officer (CEO), Darren Woods, said, “We continue to make significant progress toward delivering our long-term growth plans.
Our new U.S. Gulf Coast steam cracker is exceeding design capacity by 10 percent, less than a year after startup.”
Woods added, “Our upstream liquids production increased by eight percent from last year, driven by growth in the Permian Basin. We are preparing to startup the Liza Phase One development in Guyana, where the estimated recoverable resource increased to more than six billion oil-equivalent barrels.”
With respect to its plans to invest for growth, Exxon noted that it has funded the Liza Phase Two development offshore Guyana after it received Government and regulatory approvals. It was noted that the Phase Two startup is expected in mid-2022, producing up to 220,000 barrels of oil per day, while Phase One remains on track for first oil by the first quarter of 2020.
ExxonMobil estimates it will achieve gross production of over 750,000 barrels per day from the Stabroek Block by 2025 while noting that Guyana project plans are on or slightly ahead of schedule.
KEY DIFFERENCES
According to the Environmental Protection Agency (EPA) reports which were perused by this newspaper, there are some key differences between the Liza Phase Two Development and the Liza Phase One Development.
In the area of Oil Production Rates, the Phase Two production rate will be approximately 190,000 to 220,000 barrels of oil per day while Phase One’s production rate is 100,000 barrels of oil per day with the ability to operate at sustained peaks of 120,000 barrels per day.
With respect to FPSO Oil Storage Volume, Phase Two storage volume will be approximately 1.6 to 2 million barrels, depending on the hull selected. Phase One storage volume is 1.6 million barrels.
In terms of the number of wells, Phase Two will have approximately 35-40 wells. Phase One has 17 wells.
POSSIBLE EFFECTS
The reports held by the EPA notes that the Liza Phase Two project comes with a fair number of possible effects on people, wildlife and the environment.
The effects include changes in quality of air; disturbance of seabed; changes in quality of ocean water; impacts to whales, dolphins, sea turtles, fish, birds and protected species; changes in food sources for fish and wildlife; restriction on fishing around drill ships (temporary) and FPSOs; and oil spills which could impact the environment (e.g. coastline, protected areas), indigenous communities, and the livelihoods of farmers and fishermen.

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