Exxon Mobil Corporation (NYSE: XOM) stock lost over 5.6% on Feb 2nd, 2018 (as of 1:58PM EST; Source: Google finance) post their fourth quarter of 2017 update.
The group’s Net favorable non-cash impacts reached $4.6 billion during the quarter which comprises $5.9 billion from U.S. tax reform, partially offset by asset impairments of $1.3 billion. But without U.S. tax reform and impairments, the earnings fell 2% to $3.7 billion, or $0.88 per share assuming dilution, in the fourth quarter 2017, against the prior-year quarter. Moreover, the Oil-equivalent production fell 3% yoy to 4 million barrels per day.
On the other hand, the group is planning to invest over $50 billion in the U.S. over the next five years to boost their production of profitable volumes and enhance their integrated portfolio, which is supported by a better business climate created by tax reform. They are infusing billions of dollars to boost their oil production in the Permian Basin in West Texas and New Mexico, while expanding current operations.
The Upstream earnings reached $8.4 billion during the quarter with $7.1 billion from U.S. tax reform and asset impairments of $1.3 billion. Earnings excluding U.S. tax reform and impairments surged $1 billion, to $2.5 billion, boosted by higher prices as liquids realizations enhanced more than $10 per barrel.
The Downstream earnings reached $1.6 billion, including $618 million from U.S. tax reform. Earnings excluding U.S. tax reform and impairments fell $289 million, to $952 million, as the absence of last year’s Canada retail divestment gain of $522 million was partially offset by a better margins and asset management gains in the current quarter.
The group made a the sixth oil discovery offshore Guyana by finishing the Ranger-1 exploration well. The well encountered 230 feet (70 meters) of oil-bearing carbonate reservoir. Earlier offshore Guyana discoveries are currently expected to be more than 3.2 billion recoverable oil-equivalent barrels, excluding Ranger. The group also finished an agreement with Statoil ASA to acquire an interest in the BM-S-8 block offshore Brazil, which contains part of the discovered pre-salt Carcara oil field. The group added 14 offshore blocks in Brazil comprising more than 1.25 million net acres via bid rounds and announced farm-in agreements.