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Press release from Business Wire

Exxon Mobil Corporation Announces Estimated First Quarter 2012 Results

Thursday, April 26, 2012

Exxon Mobil Corporation Announces Estimated First Quarter 2012 Results09:16 EDT Thursday, April 26, 2012 IRVING, Texas (Business Wire) -- Exxon Mobil Corporation (NYSE:XOM):             First Quarter2012       2011%Earnings Excluding Special Items1 $ Millions 9,450 10,650 -11 $ Per Common Share Assuming Dilution 2.00 2.14 -7   Special Items $ Millions 0 0   Earnings $ Millions 9,450 10,650 -11 $ Per Common Share Assuming Dilution 2.00 2.14 -7   Capital and Exploration Expenditures - $ Millions 8,834 7,821 13   1 See Reference to EarningsEXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED: “First quarter results reflect our ongoing focus on developing and delivering energy needed to support job creation and economic growth.Despite continuing economic uncertainty, we are progressing our robust investment plans to meet the energy demands of the future.“Capital and exploration expenditures were $8.8 billion as we continue with plans to invest about $37 billion per year over the next five years.“We continued to generate strong cash flow from operations and asset sales with $21.8 billion in the quarter.“First quarter earnings of $9.5 billion were down 11% from the first quarter of 2011.“Oil-equivalent production was down over 5% from 2011.Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, production was down 1%.“The Corporation distributed more than $7 billion to shareholders in the first quarter through dividends and share purchases to reduce shares outstanding.”FIRST QUARTER HIGHLIGHTS Earnings of $9,450 million, which included gains from asset sales of about $400 million, decreased 11% or $1,200 million from the first quarter of 2011. Earnings per share (assuming dilution) were $2.00, a decrease of 7%. Capital and exploration expenditures were $8.8 billion, up 13% from the first quarter of 2011. Oil-equivalent production decreased over 5% from the first quarter of 2011. Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, production was down 1%. Cash flow from operations and asset sales was $21.8 billion, including proceeds associated with asset sales of $2.5 billion. Share purchases to reduce shares outstanding were $5 billion. Dividends per share of $0.47 increased 7% compared to the first quarter of 2011. ExxonMobil and Rosneft announced the signing of agreements to progress a long-term Strategic Cooperation Agreement to jointly explore for and develop oil and natural gas in Russia, and to share technology and expertise. Additionally, Rosneft will take equity in exploration and development projects in the United States and Canada. In Romania, ExxonMobil's affiliate drilled a successful deepwater new play test on the Neptun block in the Black Sea with the Deepwater Champion drillship and has additional 3D seismic data acquisition planned to support future drilling opportunities on the block. ExxonMobil participated in a successful exploration well offshore Tanzania which discovered approximately 5 trillion cubic feet of recoverable gas in a high quality reservoir. A second exploration well is planned to test another prospect on the block. First Quarter 2012 vs. First Quarter 2011 Upstream earnings were $7,802 million, down $873 million from the first quarter of 2011. Higher liquids and natural gas realizations increased earnings by $980 million. Lower sales volumes decreased earnings by $850 million. All other items, primarily higher operating expenses and the absence of gains on asset sales, decreased earnings by $1.0 billion. On an oil-equivalent basis, production decreased over 5% from the first quarter of 2011. Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, production was down 1%. Liquids production totaled 2,214 kbd (thousands of barrels per day), down 185 kbd from the first quarter of 2011. Excluding the impact of higher prices on entitlement volumes, OPEC quota effects and divestments, liquids production was down less than 1%, as field decline was mostly offset by ramp-up of Angola and Iraq projects, and lower downtime. First quarter natural gas production was 14,036 mcfd (millions of cubic feet per day), down 489 mcfd from 2011, mainly due to field decline and divestments. Earnings from U.S. Upstream operations were $1,010 million, $269 million lower than the first quarter of 2011. Non-U.S. Upstream earnings were $6,792 million, down $604 million from the prior year. Downstream earnings of $1,586 million were up $487 million from the first quarter of 2011. Lower margins decreased earnings $40 million. Volume and mix effects increased earnings by $210 million, while all other items, mainly gains on asset sales, increased earnings by $320 million. Petroleum product sales of 6,316 kbd were 49 kbd higher than last year's first quarter. Earnings from the U.S. Downstream were $603 million, down $91 million from the first quarter of 2011. Non-U.S. Downstream earnings of $983 million were $578 million higher than last year. Chemical earnings of $701 million were $815 million lower than the first quarter of 2011. Weaker margins decreased earnings by $520 million. Other items, including higher planned maintenance and the absence of favorable tax items, decreased earnings by $300 million. First quarter prime product sales of 6,337 kt (thousands of metric tons) were 15 kt higher than last year's first quarter. Corporate and financing expenses were $639 million, consistent with the prior year. During the first quarter of 2012, Exxon Mobil Corporation purchased 66 million shares of its common stock for the treasury at a gross cost of $5.7 billion. These purchases included $5 billion to reduce the number of shares outstanding, with the balance used to acquire shares in conjunction with the company's benefit plans and programs. Share purchases to reduce shares outstanding are currently anticipated to equal $5 billion in the second quarter of 2012. 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. 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 April 26, 2012.To listen to the event live or in archive, go to our website at exxonmobil.com.Cautionary statementStatements relating to future plans, projections, events or conditions are forward-looking statements.Actual results, including project plans, costs, timing, and capacities; capital and exploration expenditures; resource recoveries; and share purchase levels, could differ materially due to factors including: changes in oil or gas prices or other market or economic conditions affecting the oil and gas industry, including the scope and duration of economic recessions; the outcome of exploration and development efforts; changes in law or government regulation, including tax and environmental requirements; the outcome of commercial negotiations; 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 2011 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 proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments 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 CORPORATIONFIRST QUARTER 2012 (millions of dollars, unless noted)     First Quarter   2012   2011Earnings / Earnings Per Share   Total revenues and other income 124,053 114,004 Total costs and other deductions 106,538 95,087 Income before income taxes 17,515 18,917 Income taxes 7,716 8,004 Net income including noncontrolling interests 9,799 10,913 Net income attributable to noncontrolling interests 349 263 Net income attributable to ExxonMobil (U.S. GAAP) 9,450 10,650   Earnings per common share (dollars) 2.00 2.14   Earnings per common share - assuming dilution (dollars) 2.00 2.14   Other Financial Data   Dividends on common stock Total 2,221 2,188 Per common share (dollars) 0.47 0.44   Millions of common shares outstanding At March 31 4,676 4,926 Average - assuming dilution 4,716 4,971   ExxonMobil share of equity at March 31 157,012 151,480 ExxonMobil share of capital employed at March 31 177,137 171,235   Income taxes 7,716 8,004 Sales-based taxes 8,493 7,916 All other taxes 11,203 10,316 Total taxes 27,412 26,236   ExxonMobil share of income taxes of equity companies 1,705 1,513   Attachment II   EXXON MOBIL CORPORATIONFIRST QUARTER 2012 (millions of dollars)   First Quarter   2012     2011   Earnings (U.S. GAAP) Upstream United States 1,010 1,279 Non-U.S. 6,792 7,396 Downstream United States 603 694 Non-U.S. 983 405 Chemical United States 433 669 Non-U.S. 268 847 Corporate and financing (639) (640 ) Net income attributable to ExxonMobil 9,450 10,650 Special Items Upstream United States 0 0 Non-U.S. 0 0 Downstream United States 0 0 Non-U.S. 0 0 Chemical United States 0 0 Non-U.S. 0 0 Corporate and financing 0 0 Corporate total 0 0 Earnings Excluding Special Items Upstream United States 1,010 1,279 Non-U.S. 6,792 7,396 Downstream United States 603 694 Non-U.S. 983 405 Chemical United States 433 669 Non-U.S. 268 847 Corporate and financing (639) (640 ) Corporate total       9,450     10,650   Cash flow from operations and asset sales (billions of dollars) Net cash provided by operating activities(U.S. GAAP) 19.3 16.9 Proceeds associated with asset sales 2.5 1.3 Cash flow from operations and asset sales       21.8     18.2       Attachment III           EXXON MOBIL CORPORATIONFIRST QUARTER 2012     First Quarter20122011 Net production of crude oil   and natural gas liquids, thousands of barrels daily (kbd) United States 426 428 Canada/South America 248 262 Europe 228 306 Africa 464 561 Asia 802 792 Australia/Oceania 46 50 Worldwide 2,214 2,399   Natural gas production available for sale, millions of cubic feet daily (mcfd) United States 3,932 3,904 Canada/South America 377 468 Europe 4,447 4,783 Africa 12 6 Asia 5,011 5,089 Australia/Oceania 257 275 Worldwide 14,036 14,525   Oil-equivalent production (koebd) 14,553 4,820   1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels   Attachment IV           EXXON MOBIL CORPORATIONFIRST QUARTER 2012   First Quarter20122011 Refinery throughput (kbd) United States 1,825 1,771 Canada 438 452 Europe 1,481 1,446 Asia Pacific 1,296 1,223 Other 290 288 Worldwide 5,330 5,180   Petroleum product sales (kbd) United States 2,473 2,475 Canada 423 447 Europe 1,564 1,533 Asia Pacific 1,232 1,218 Other 624 594 Worldwide 6,316 6,267   Gasolines, naphthas 2,522 2,470 Heating oils, kerosene, diesel 2,096 2,034 Aviation fuels 458 464 Heavy fuels 505 555 Specialty products 735 744 Worldwide 6,316 6,267   Chemical prime product sales, thousands of metric tons (kt) United States 2,365 2,275 Non-U.S. 3,972 4,047 Worldwide 6,337 6,322   Attachment V           EXXON MOBIL CORPORATIONFIRST QUARTER 2012 (millions of dollars)   First Quarter20122011Capital and Exploration Expenditures Upstream United States 2,422 2,080 Non-U.S. 5,657 4,820 Total 8,079 6,900 Downstream United States 110 117 Non-U.S. 329 333 Total 439 450 Chemical United States 74 56 Non-U.S. 239 393 Total 313 449   Other 3 22   Worldwide 8,834 7,821     Exploration expenses charged to income included above Consolidated affiliates United States 103 63 Non-U.S. 417 270 Equity companies - ExxonMobil share United States 1 1 Non-U.S. 6 1 Worldwide 527 335   Attachment VI       EXXON MOBIL CORPORATIONEARNINGS     $ Millions$ Per Common Share 1   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 Third Quarter 7,350 1.44 Fourth Quarter 9,250 1.86 Year 30,460 6.24   2011 First Quarter 10,650 2.14 Second Quarter 10,680 2.19 Third Quarter 10,330 2.13 Fourth Quarter 9,400 1.97 Year 41,060 8.43   2012 First Quarter 9,450 2.00   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. ExxonMobilMedia Relations, 972-444-1107