Exxon Handed Shareholders $9.4 Billion in One Quarter. Here's What It Earned to Cover It.
The pace of dividends and buybacks runs near $37 billion a year -- and the cash covering it arrives unevenly.
Overview
ExxonMobil (NYSE: XOM) handed its shareholders $9.4 billion during the second quarter -- $4.3 billion of dividends and $5.1 billion of share repurchases. For an income-focused investor, the more important number is what the oil giant produced to pay for it all.
The second quarter produced plenty. Exxon earned $14.5 billion -- $3.48 per share, or $3.52 on an adjusted basis -- and cash flow from operations came to $23.6 billion. And free cash flow (what's left after capital spending) was $17.2 billion, covering the quarter's distributions nearly twice over.
Details
Zoom out to the full first half, though, and the coverage looks much tighter. The difference matters for anyone counting on the pace to continue.
Source
Originally published at www.fool.com.
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