Exxon 2014 Annual Report Download - page 4

We delivered solid financial and operating results despite
challenging and volatile economic and geopolitical conditions,
as highlighted by earnings of $32.5 billion and an industry-leading
return on capital employed of 16.2 percent.
ExxonMobil is dedicated to generating long-term shareholder value. We recognize the nature and risk of the commodities
we produce and have positioned our businesses to be successful throughout the business cycle. We provide industry
leadership and innovative technologies to meet the world’s greatest challenge – supplying the energy needed to improve
and sustain the lives of billions of people while protecting the environment for future generations. Our business approach
enables us to maintain strong financial results throughout a cyclical business environment and remain the partner of
choice for resource owners across the energy value chain. As you will read in the coming pages, our success is achieved
through our operational excellence, project execution capabilities, and the application of new technologies, underpinned
by strong financial flexibility, investment discipline, and a world-class workforce.
Results from 2014 reflect our continued ability to capitalize on the strength of our integrated businesses and the talents
of the 75,000 men and women who work for ExxonMobil. Our people are committed to the highest standards of business
conduct and integrity in the pursuit of premier results.
We delivered solid financial and operating results despite challenging and volatile economic and geopolitical conditions,
as highlighted by earnings of $32.5 billion and an industry-leading return on average capital employed of 16.2 percent.
Production of 4 million oil-equivalent barrels per day was in line with our plans as we added new volumes from project
start-ups and work programs. We invested in attractive opportunities with capital and exploration expenditures of
$38.5 billion. Cash flow from operations remained strong, enabling us to achieve shareholder distributions of $23.6 billion
in the form of dividends and share purchases to reduce shares outstanding. Over the past five years, ExxonMobil has
distributed an industry-leading $128 billion to shareholders, while maintaining a strong balance sheet.
In achieving these results, we maintain an unwavering
commitment to operational excellence and effective risk
management that delivered strong environmental results
and best-ever safety performance in 2014. We know that
effective management of risk is an imperative to achieving
our vision that Nobody Gets Hurt.
We continue to successfully advance major resource development projects in the Upstream. ExxonMobil remains on target
to grow production to 4.3 million oil-equivalent barrels per day by 2017, while maximizing profitability derived from resource
quality, volume mix, improved fiscal terms, and reduced exposure to lower-margin barrels.
Over the past year, we completed eight new major projects with more than 250 thousand oil-equivalent barrels per day
of working interest production capacity. Our liquefied natural gas project in Papua New Guinea represents one of several
significant achievements and underscores ExxonMobil’s expertise in major project development. The facilities were completed
ahead of schedule and ramped up to full operational capacity in just three months. The benefits from the project have
the potential to transform the country’s economy, boosting GDP and revenues for social and economic programs. Other
successful projects completed this year include Arkutun-Dagi in Russia; Cold Lake Nabiye Expansion in Canada; Lucius in the
Gulf of Mexico; and Cravo-Lirio-Orquidea-Violeta (CLOV) in Angola.
In the United States, ExxonMobil is increasing development activities to grow higher-margin liquids production across the
Permian, the Bakken, and the Ardmore/Marietta plays. We continue to add attractive acreage to our portfolio and implement
advanced technologies to improve well productivity and capture cost efficiencies.
New project start-ups such as Banyu Urip in Indonesia; Kearl Expansion in Canada; and Hadrian South in the Gulf of Mexico
will add significant volume in 2015. We also anticipate new production in the Gulf of Mexico, the United Arab Emirates,
Australia, Kazakhstan, and Canada in 2016 and 2017.
As we look beyond 2017, ExxonMobil has a deep and diverse portfolio of opportunities around the world, and a total resource
base of more than 92 billion oil-equivalent barrels. We have unparalleled optionality to select and invest in only the most
attractive resource development projects.
In the Downstream and Chemical businesses, we continue to capture significant benefits by diversifying feedstocks through
our flexible and integrated system, driving operational efficiencies, expanding logistics capabilities, and maximizing sales of
higher-value lubricant, diesel, and chemical products.
To Our Shareholders
EXXONMOBIL 2014 SUMMARY ANNUAL REPORT
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