15:02 | 29.07.2010
Exxon Mobil Corporation Announces Estimated Second Quarter 2010 Results
Exxon Mobil Corporation (NYSE:XOM):
Second Quarter
First Half
2010
2009
%
2010
2009
%Earnings Excluding Special Items
1
$ Millions
7,560
4,090
85
13,860
8,640
60
$ Per Common Share
Assuming Dilution
1.60
0.84
90
2.93
1.76
66
Special Items
$ Millions
0
(140
)
0
(140
)
Earnings
$ Millions
7,560
3,950
91
13,860
8,500
63
$ Per Common Share
Assuming Dilution
1.60
0.81
98
2.93
1.73
69
Capital and Exploration
Expenditures – $ Millions
6,519
6,562
-1
13,396
12,336
9
1 See Reference to
EarningsEXXONMOBIL’S CHAIRMAN REX W. TILLERSON
COMMENTED:
“ExxonMobil’s focus on operational excellence continues to deliver
strong results.Second quarter earnings, excluding special items,
of $7.6 billion, were up 85% from second quarter of last year reflecting
higher crude oil realizations, improved downstream margins, and strong
chemical results.First half earnings, excluding special items,
of $13.9 billion increased by 60% over the first half of 2009.“Oil-equivalent production increased by 8% over the second quarter of
2009 driven by contributions from our world-class assets in Qatar.“We continued our focus on investing for the future with capital and
exploration spending of $13.4 billion year to date, up 9% from the first
half of last year.“Over $3 billion was returned to shareholders in the second quarter
through dividends and share purchases to reduce shares outstanding.“The Corporation’s second quarter 2010 earnings and production
volumes included de minimis amounts for the period from June 25 to June
30 resulting from the merger with XTO Energy Inc. which closed on June
25, 2010.”SECOND QUARTER HIGHLIGHTS
Earnings excluding special items were $7,560 million, an increase of
85% or $3,470 million from the second quarter of 2009.
Earnings per share excluding special items were $1.60, an increase of
90%.
Earnings were up 91% from the second quarter of 2009 which included a
special charge of $140 million for interest related to the Valdez
punitive damages award. Earnings for the second quarter of 2010 did
not include any special items.
Capital and exploration expenditures were $6.5 billion, down 1% from
the second quarter of 2009.
Oil-equivalent production increased 8% from the second quarter of
2009. Excluding the impacts of entitlement volumes, OPEC quota effects
and divestments, production was up about 10%.
Cash flow from operations and asset sales was $9.6 billion, including
asset sales of $0.5 billion.
Share purchases to reduce shares outstanding were over $1 billion.
Dividends per share of $0.44 increased by 5% compared to the second
quarter of 2009.
The merger with XTO Energy, a leading U.S. unconventional natural gas
and oil producer, was completed on June 25, 2010, making ExxonMobil
the largest U.S. natural gas producer. Through this transaction
ExxonMobil has acquired a resource base in excess of 45 trillion cubic
feet equivalent at a cost of under $1 per kcf equivalent.
ExxonMobil and Synthetic Genomics Inc. (SGI) announced the opening of
a greenhouse facility enabling the next step of research and testing
in our algae biofuels program. SGI and ExxonMobil researchers are
using the facility to test whether large-scale quantities of
affordable fuel can be produced from algae.
Second Quarter 2010 vs. Second Quarter
2009
Upstream earnings were $5,336 million, up $1,524 million from the second
quarter of 2009. Higher crude oil and natural gas realizations drove the
improvement and increased earnings by $1.6 billion.
On an oil-equivalent basis, production increased 8% from the second
quarter of 2009. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was up about 10%.
Liquids production totaled 2,325 kbd (thousands of barrels per day),
down 21 kbd from the second quarter of 2009. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, liquids
production was up 1%, as increased production from projects in Qatar and
Kazakhstan more than offset net field decline.
Second quarter natural gas production was 10,025 mcfd (millions of cubic
feet per day), up 1,984 mcfd from 2009, driven by project ramp-ups in
Qatar and higher demand in Europe, partly offset by net field decline.
Earnings from U.S. Upstream operations were $865 million, $52 million
higher than the second quarter of 2009. Non-U.S. Upstream earnings were
$4,471 million, up $1,472 million from last year.
Downstream earnings of $1,220 million were up $708 million from the
second quarter of 2009. Higher industry refining and marketing margins
increased earnings by $780 million. Volumes and product mix effects
increased earnings by $170 million while other factors, mainly
unfavorable foreign exchange impacts, decreased earnings by $240
million. Petroleum product sales of 6,241 kbd were 246 kbd lower than
last year’s second quarter, mainly reflecting lower demand.
Earnings from the U.S. Downstream were $440 million, up $455 million
from the second quarter of 2009. Non-U.S. Downstream earnings of
$780 million were $253 million higher than last year.
Chemical earnings of $1,368 million were $1,001 million higher than the
second quarter of 2009. Stronger margins improved earnings by $840
million and higher sales volumes increased earnings by $120 million.
Second quarter prime product sales of 6,496 kt (thousands of metric
tons) were 229 kt higher than the prior year primarily due to improved
global demand.
Corporate and financing expenses excluding special items were
$364 million, down $237 million due mainly to favorable tax items.
During the second quarter of 2010, Exxon Mobil Corporation purchased 24
million shares of its common stock for the treasury at a gross cost of
$1.6 billion. These purchases included over $1 billion to reduce the
number of shares outstanding, with the balance used to offset shares
issued in conjunction with the company’s benefit plans and programs. As
a result of regulatory requirements, no open market purchases of shares
were made during the proxy solicitation period for the XTO transaction.
Including 416 million shares issued in connection with the XTO merger,
shares outstanding increased from 4,698 million at the end of the first
quarter to 5,092 million at the end of the second quarter. Share
purchases to reduce shares outstanding are currently anticipated to
equal $3 billion in the third quarter of 2010. Purchases may be made in
both the open market and through negotiated transactions, and may be
increased, decreased or discontinued at any time without prior notice.
First Half 2010 vs. First Half 2009
Earnings of $13,860 million ($2.93 per share) increased $5,360 million
from 2009. Excluding special items, earnings for the first half of 2010
increased $5,220 million from 2009.
FIRST HALF HIGHLIGHTS
Earnings excluding special items were $13,860 million, up 60%.
Earnings per share excluding special items increased 66% to $2.93.
Earnings were up 63% from 2009. Earnings for 2009 included a special
charge of $140 million for interest related to the Valdez punitive
damages award. Earnings for the first half of 2010 did not include any
special items.
Oil equivalent production was up 6% from 2009. Excluding the impacts
of entitlement volumes, OPEC quota effects and divestments, production
was up 8%.
Cash flow from operations and asset sales was $23.1 billion, including
$0.9 billion from asset sales.
The Corporation distributed over $7 billion to shareholders in the
first half of 2010 through dividends and share purchases to reduce
shares outstanding.
Capital and exploration expenditures were $13.4 billion, up 9% versus
2009.
Upstream earnings were $11,150 million, up $3,835 million from 2009.
Higher net realizations increased earnings approximately $4 billion. The
favorable impact of higher volumes of $0.4 billion was partially offset
by higher operating costs of $0.3 billion.
On an oil-equivalent basis, production was up 6% compared to the same
period in 2009. Excluding the impacts of entitlement volumes, OPEC quota
effects and divestments, production was up 8%.
Liquids production of 2,370 kbd decreased 41 kbd compared with 2009.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, liquids production was flat with 2009, as new volumes from
project ramp-ups in Qatar and Kazakhstan were offset by net field
decline.
Natural gas production of 10,852 mcfd increased 1,744 mcfd from 2009,
driven by higher volumes from Qatar projects and higher demand in Europe.
Earnings from U.S. Upstream operations for 2010 were $1,956 million, an
increase of $783 million. Earnings outside the U.S. were $9,194 million,
up $3,052 million.
Downstream earnings of $1,257 million were $388 million lower than 2009.
Lower refining margins decreased earnings by $0.5 billion. Unfavorable
forex impacts of $0.4 billion were offset by improved marketing margins,
and favorable sales volume mix and refining operations effects.
Petroleum product sales of 6,193 kbd decreased 268 kbd, mainly
reflecting lower demand.
U.S. Downstream earnings were $380 million, up $43 million from 2009.
Non-U.S. Downstream earnings were $877 million, $431 million lower than
last year.
Chemical earnings of $2,617 million increased $1,900 million from 2009.
Stronger margins increased earnings by approximately $1.4 billion while
higher volumes increased earnings about $0.3 billion. Prime product
sales of 12,984 kt were up 1,190 kt from 2009.
Corporate and financing expenses excluding special items were
$1,164 million, up $127 million from 2009 mainly due to a tax charge
related to the U.S. health care legislation during the first half of
2010.
Gross share purchases through the first half of 2010 were $4.1 billion,
reducing shares outstanding by 61 million shares, excluding the impact
of the XTO transaction.
Estimates of key financial and operating data follow.
ExxonMobil will discuss financial and operating results and other
matters on a webcast at 10 a.m. Central time on July 29, 2010.To
listen to the event live or in archive, go to our website at exxonmobil.com.Cautionary statementStatements in this release relating to future plans, projections,
events or conditions are forward-looking statements.Actual
results, including benefits resulting from the XTO transaction; project
plans, costs, timing, and capacities; capital and exploration
expenditures; and share purchase levels, could differ materially due to
factors including: our ability to integrate the businesses of XTO and
ExxonMobil effectively; changes in long-term oil or gas prices or other
market or economic conditions affecting the oil and gas industry;
unforeseen technical difficulties; political events or disturbances;
reservoir performance; the outcome of commercial negotiations; wars and
acts of terrorism or sabotage; changes in technical or operating
conditions; and other factors discussed under the heading “Factors
Affecting Future Results” in the “investors” section of our website and
in Item 1A of ExxonMobil’s 2009 Form 10-K. We assume no duty to update
these statements as of any future date. References to quantities of oil
or natural gas may include amounts that we believe will ultimately be
produced, but that are not yet classified as “proved reserves” under SEC
definitions.Frequently used termsConsistent with previous practice, this press release includes both
earnings excluding special items and earnings per share excluding
special items.Both are non-GAAP financial measures and are
included to help facilitate comparisons of base business performance
across periods.Reconciliation to net income attributable to
ExxonMobil is shown in Attachment II.The release also includes
cash flow from operations and asset sales.Because of the regular
nature of our asset management and divestment program, we believe it is
useful for investors to consider sales proceeds together with cash
provided by operating activities when evaluating cash available for
investment in the business and financing activities. A reconciliation to
net cash provided by operating activities is shown in Attachment II.Further
information on ExxonMobil’s frequently used financial and operating
measures and other terms is contained under the heading “Frequently Used
Terms” available through the “investors” section of our website at
exxonmobil.com.Reference to EarningsReferences to total corporate earnings mean net income attributable
to ExxonMobil (U.S. GAAP) from the income statement.Unless
otherwise indicated, references to earnings, special items, earnings
excluding special items, Upstream, Downstream, Chemical and Corporate
and Financing segment earnings, and earnings per share are ExxonMobil’s
share after excluding amounts attributable to noncontrolling interests.Attachment I
EXXON MOBIL CORPORATIONSECOND QUARTER 2010
(millions of dollars, unless noted)
Second Quarter
First Half
2010
2009
2010
2009Earnings / Earnings Per Share
Total revenues and other income
92,486
74,457
182,737
138,485
Total costs and other deductions
79,780
66,940
157,963
123,118
Income before income taxes
12,706
7,517
24,774
15,367
Income taxes
4,960
3,571
10,453
6,719
Net income including noncontrolling interests
7,746
3,946
14,321
8,648
Net income attributable to noncontrolling interests
186
(4
)
461
148
Net income attributable to ExxonMobil (U.S. GAAP)
7,560
3,950
13,860
8,500
Earnings per common share (dollars)
1.61
0.82
2.94
1.74
Earnings per common share
– assuming dilution (dollars)
1.60
0.81
2.93
1.73
Other Financial Data
Dividends on common stock
Total
2,066
2,039
4,052
4,020
Per common share (dollars)
0.44
0.42
0.86
0.82
Millions of common shares outstanding
At June 30
5,092
4,806
Average – assuming dilution
4,729
4,871
4,733
4,916
ExxonMobil share of equity at June 30
140,172
106,592
ExxonMobil share of capital employed at June 30
164,318
119,645
Income taxes
4,960
3,571
10,453
6,719
Sales-based taxes
6,946
6,216
13,761
12,122
All other taxes
9,244
9,124
18,593
17,713
Total taxes
21,150
18,911
42,807
36,554
ExxonMobil share of income taxes of
equity companies
834
413
1,810
1,101
Attachment II
EXXON MOBIL CORPORATIONSECOND QUARTER 2010
(millions of dollars)
Second Quarter
First Half
2010
2009
2010
2009
Earnings (U.S. GAAP)
Upstream
United States
865
813
1,956
1,173
Non-U.S.
4,471
2,999
9,194
6,142
Downstream
United States
440
(15
)
380
337
Non-U.S.
780
527
877
1,308
Chemical
United States
685
79
1,224
162
Non-U.S.
683
288
1,393
555
Corporate and financing
(364)
(741
)
(1,164)
(1,177
)
Net income attributable to ExxonMobil
7,560
3,950
13,860
8,500
Special Items
Upstream
United States
0
0
0
0
Non-U.S.
0
0
0
0
Downstream
United States
0
0
0
0
Non-U.S.
0
0
0
0
Chemical
United States
0
0
0
0
Non-U.S.
0
0
0
0
Corporate and financing
0
(140
)
0
(140
)
Corporate total
0
(140
)
0
(140
)
Earnings Excluding Special Items
Upstream
United States
865
813
1,956
1,173
Non-U.S.
4,471
2,999
9,194
6,142
Downstream
United States
440
(15
)
380
337
Non-U.S.
780
527
877
1,308
Chemical
United States
685
79
1,224
162
Non-U.S.
683
288
1,393
555
Corporate and financing
(364)
(601
)
(1,164)
(1,037
)
Corporate total
7,560
4,090
13,860
8,640
Cash flow from operations and asset sales (billions of
dollars)
Net cash provided by operating activities(U.S. GAAP)
9.1
2.2
22.2
11.1
Sales of subsidiaries, investments and property, plant and equipment
0.5
0.8
0.9
0.9
Cash flow from operations and asset sales
9.6
3.0
23.1
12.0
Attachment III
EXXON MOBIL CORPORATIONSECOND QUARTER 2010
Second Quarter
First Half
2010
2009
2010
2009
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
357
380
373
389
Canada/South America
267
242
266
274
Europe
348
383
356
397
Africa
599
702
632
709
Asia Pacific/Middle East
573
462
557
464
Russia/Caspian
181
177
186
178
Worldwide
2,325
2,346
2,370
2,411
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
1,412
1,267
1,374
1,255
Canada/South America
594
649
580
643
Europe
3,268
2,869
4,198
3,909
Africa
20
23
16
24
Asia Pacific/Middle East
4,552
3,107
4,495
3,137
Russia/Caspian
179
126
189
140
Worldwide
10,025
8,041
10,852
9,108
Oil-equivalent production (koebd) 1
3,996
3,686
4,179
3,929
1 Gas converted to oil-equivalent at 6 million cubic feet
= 1 thousand barrels
Attachment IV
EXXON MOBIL CORPORATIONSECOND QUARTER 2010
Second Quarter
First Half
2010
2009
2010
2009
Refinery throughput (kbd)
United States
1,807
1,765
1,764
1,785
Canada
418
365
428
412
Europe
1,570
1,560
1,550
1,539
Asia Pacific
1,143
1,306
1,192
1,306
Other
254
294
240
293
Worldwide
5,192
5,290
5,174
5,335
Petroleum product sales (kbd)
United States
2,521
2,538
2,452
2,557
Canada
435
403
433
410
Europe
1,612
1,671
1,610
1,619
Asia Pacific
1,183
1,346
1,204
1,345
Other
490
529
494
530
Worldwide
6,241
6,487
6,193
6,461
Gasolines, naphthas
2,565
2,617
2,550
2,537
Heating oils, kerosene, diesel
1,887
1,991
1,874
2,089
Aviation fuels
455
544
453
535
Heavy fuels
581
567
605
581
Specialty products
753
768
711
719
Worldwide
6,241
6,487
6,193
6,461
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,449
2,519
4,973
4,562
Non-U.S.
4,047
3,748
8,011
7,232
Worldwide
6,496
6,267
12,984
11,794
Attachment V
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
(millions of dollars)
Second Quarter
First Half
2010
2009
2010
2009
Capital and Exploration Expenditures
Upstream
United States
772
941
1,544
1,744
Non-U.S.
4,570
3,964
9,344
7,527
Total
5,342
4,905
10,888
9,271
Downstream
United States
264
407
611
760
Non-U.S.
320
410
647
703
Total
584
817
1,258
1,463
Chemical
United States
66
94
134
171
Non-U.S.
492
736
1,038
1,417
Total
558
830
1,172
1,588
Other
35
10
78
14
Worldwide
6,519
6,562
13,396
12,336
Exploration expenses charged to income
included above
Consolidated affiliates
United States
45
53
100
95
Non-U.S.
361
437
991
744
Equity companies – ExxonMobil share
United States
1
0
2
0
Non-U.S.
8
1
11
2
Worldwide
415
491
1,104
841
Attachment VI
EXXON MOBIL CORPORATIONEARNINGS
$ Millions
$ Per Common Share 1,2
2006
First Quarter
8,400
1.38
Second Quarter
10,360
1.72
Third Quarter
10,490
1.77
Fourth Quarter
10,250
1.77
Year
39,500
6.64
2007
First Quarter
9,280
1.63
Second Quarter
10,260
1.83
Third Quarter
9,410
1.71
Fourth Quarter
11,660
2.14
Year
40,610
7.31
2008
First Quarter
10,890
2.03
Second Quarter
11,680
2.24
Third Quarter
14,830
2.86
Fourth Quarter
7,820
1.55
Year
45,220
8.70
2009
First Quarter
4,550
0.92
Second Quarter
3,950
0.82
Third Quarter
4,730
0.98
Fourth Quarter
6,050
1.27
Year
19,280
3.99
2010
First Quarter
6,300
1.33
Second Quarter
7,560
1.61
1 Computed using the average number of shares
outstanding during each period.The sum of the four quarters
may not add to the full year.
2 For periods prior to 2009, earnings per share (EPS)
numbers have been adjusted retrospectivelyon a consistent
basis with 2009 reporting when new authoritative guidance on EPS
was adopted.
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