ExxonMobil’s upstream production
In the previous part, we discussed ExxonMobil’s (XOM) key upstream positions. Now, we’ll evaluate the company’s latest performance.
ExxonMobil produced 4.0 MMboed (million barrel of oil equivalent per day) in the fourth quarter from its worldwide operations. The company’s total production rose 0.5% YoY due to higher liquids output from the Permian region and the Hebron project.
ExxonMobil’s production mix and realizations
Liquids accounted for 2.3 MMboed (or 59%) of ExxonMobil’s total production. The company’s liquids production rose 4.3% YoY in the fourth quarter. The Permian output rose 93% YoY in the fourth quarter.
However, natural gas production fell 4.5%. Natural gas fell due to a decline in the United States led by the company’s focus on high grading its portfolio. Lower demand and divestments also impacted the volumes.
Out of ExxonMobil’s total output, 3.0 MMboed or 75% was from international operations. A 3.8% YoY fall in non-US natural gas impacted the company’s volumes.
In the fourth quarter of 2018, ExxonMobil’s average oil realizations in the United States rose to $55 per barrel from $54 per barrel in the fourth quarter of 2017. ExxonMobil’s natural gas realizations from the domestic operations were less than half of the international operations. In the fourth quarter, the average natural gas realizations in the United States were at $3.6 per thousand cubic feet, while the realizations in the international arena were at $8.2 per thousand cubic feet.
Next, we’ll discuss ExxonMobil’s downstream position.