Exxon Mobil Earnings

Exxon Mobil released its earnings today. The company reported earnings of $9.4 billion for the fourth quarter of 2011, up 2% from the fourth quarter of 2010. Full year 2011 earnings were up 35% compared to 2010 to $41.1 billion. The company attributed the increase to higher realized prices on oil and natural gas, as well as improved margins in its refining and chemical businesses.

Exxon spent a record $36.8 billion in capital and exploration expenses in 2011. In the fourth quarter the company spent $10.0 billion in capital and exploration expenses. Through share buybacks and dividends Exxon also distributed $29 billion to shareholders.

Exxon announced that it was the highest bidder on 50 of the blocks in an auction of US Gulf of Mexico leasehold. It also announced that construction began on a new low-sulfur fuels plant in Yanbu, Saudi Arabia.

See the business segment breakdown after the break.

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Fourth quarter business segment breakdown:

• Liquids production
• 2.25 million barrels per day, down 276,000 compared to 2010
• Attributed decrease primarily to field decline

• Natural gas production
• 13.677 billion cubic feet per day, down 975,000,000 compared to 2010
• Attributed decrease primarily to field decline

• Downstream
• Earnings of $425 million were down $725 million compared to 2010
• Exxon noted a $740 million decrease because of weaker margins

• Chemical
• Earnings of $543 million were down $524 million compared to 2010
• Exxon noted margins contributed to a $230 million decrease
• Noted that other items contributed to a $250 million decrease, primarily related to unfavorable tax effects

Separately, executives mentioned that they weren't following suit of others companies and shutting in natural gas production in the United States. Exxon did note; however, that they were shifting onshore US drilling to primarily liquids and liquids rich shale plays.

Also worth noting is the potential strike of union refinery workers looming in the United States. Refineries are scrambling to hire and train workers in the event of a union strike.