XOM Exxon Mobil Corp

Exxon Mobil Corporation (NYSE:XOM): -0- *T Fourth Quarter Twelve Months -------------- --------------- 2005 2004 % 2005 2004 % ------- ------ --- ------- ------- --- Net Income --------------------------- $ Millions 10,710 8,420 27 36,130 25,330 43 $ Per Common Share Assuming Dilution 1.71 1.30 32 5.71 3.89 47 Earnings Excluding Special Items --------------------------- $ Millions 10,320 8,420 23 33,860 25,880 31 $ Per Common Share Assuming Dilution 1.65 1.30 27 5.35 3.97 35 Capital and Exploration Expenditures - $ Millions 5,331 4,233 17,699 14,885 *T Exxon Mobil Corporation (NYSE:XOM) today reported fourth quarter 2005 results. Earnings excluding special items were $10,320 million ($1.65 per share), an increase of $1,900 million from the fourth quarter of 2004. Fourth quarter net income included a special gain of $390 million from the resolution of a previously disclosed litigation issue. Including this gain, net income of $10,710 million ($1.71 per share) increased by $2,290 million. ExxonMobil's Chairman Rex W. Tillerson Commented: "ExxonMobil's fourth quarter earnings excluding special items were $10,320 million, up 23% from fourth quarter 2004, reflecting higher crude oil and natural gas realizations and improved refining and marketing margins. Net income for the fourth quarter was $10,710 million, up 27% from 2004. "There is a great deal of public interest in global energy prices. We recognize that consumers worldwide want and need reliable supplies of affordable energy -- to fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs. "ExxonMobil continued its active investment program in the fourth quarter, spending $5.3 billion on capital and exploration projects, bringing full year spending to $17.7 billion, an increase of 19% or $2.8 billion versus 2004. "The Corporation distributed a total of $6.8 billion to shareholders in the fourth quarter through dividends and share purchases to reduce shares outstanding. Distributions to shareholders totaled $23.2 billion for the full year, an increase of 56% or $8.3 billion versus 2004." FOURTH QUARTER HIGHLIGHTS -- Earnings excluding special items were $10,320 million, an increase of 23% or $1,900 million from the fourth quarter of 2004. -- Net income of $10,710 million includes a special gain of $390 million from the previously disclosed litigation issue. -- Cash flow from operations and asset sales was approximately $11.9 billion, including asset sales of $1.4 billion. -- Share purchases to reduce shares outstanding of $5.0 billion were at the same level as the third quarter of 2005. -- Earnings per share excluding special items were $1.65, an increase of 27%, reflecting strong earnings and the reduction in the number of shares outstanding. -- Production from the multi-phase Sakhalin 1 project started on schedule during the fourth quarter. This initial phase of the project is expected to produce 250 thousand barrels per day (gross) of liquids and 130 million cubic feet per day (gross) of gas by the end of 2006. Fourth Quarter 2005 vs. Fourth Quarter 2004 Upstream earnings were $7,038 million, up $2,151 million from the fourth quarter of 2004 reflecting higher crude oil and natural gas realizations. On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2004. Excluding the residual impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production increased 2%. Liquids production of 2,629 kbd (thousands of barrels per day) was 64 kbd higher. Higher production from projects in West Africa, Azerbaijan and the North Sea was partly offset by the impact of mature field decline, the residual effect of hurricanes Katrina and Rita, and entitlement and divestment impacts. Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased by 6%. Fourth quarter natural gas production was 9,822 mcfd (millions of cubic feet per day) compared with 10,430 mcfd last year. Higher volumes from projects in Qatar, the North Sea and North America were more than offset by the impact of mature field decline, lower European demand, maintenance activity, the residual effect of hurricanes Katrina and Rita, as well as entitlement and divestment impacts. Earnings from U.S. Upstream operations were $1,787 million, $403 million higher than the fourth quarter of 2004. Non-U.S. Upstream earnings were $5,251 million, up $1,748 million from 2004. Downstream earnings were $2,390 million, up $46 million from the fourth quarter 2004. Higher refining and marketing margins were partly offset by residual impacts from hurricanes Katrina and Rita. Petroleum product sales were 8,322 kbd, 124 kbd lower than last year's fourth quarter, primarily due to the hurricanes. U.S. Downstream earnings were $1,158 million, up $282 million. Non-U.S. Downstream earnings of $1,232 million were $236 million lower than the fourth quarter of 2004. Chemical earnings excluding special items were $835 million, down $413 million from the same quarter a year ago primarily due to reduced margins from increased feedstock costs. Prime product sales of 6,292 kt (thousands of metric tons) were down 657 kt from last year's fourth quarter, largely due to the hurricanes. Corporate and financing recorded a gain of $57 million, up $116 million mainly due to higher interest income. During the fourth quarter of 2005, Exxon Mobil Corporation purchased 92 million shares of its common stock for the treasury at a gross cost of $5.3 billion. These purchases included $5.0 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company benefits plans and programs. Shares outstanding were reduced from 6,222 million at the end of the third quarter to 6,133 million at the end of the fourth quarter. 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. Full Year 2005 vs. Full Year 2004 Net income of $36,130 million ($5.71 per share) increased $10,800 million from 2004. Net income for 2005 included special items totaling $2,270 million. Excluding special items in both periods, earnings increased by $8 billion versus 2004. FULL YEAR HIGHLIGHTS -- Earnings excluding special items were $33,860 million, an increase of 31%, with strong contributions from all segments of the business. Net income increased by 43%. -- Earnings per share excluding special items increased by 35% reflecting strong earnings and the reduction in the number of shares outstanding. -- Special items of $2,270 million included a $1,620 million special gain related to Gasunie, a $460 million positive impact from the sale of the Corporation's stake in Sinopec, a $390 million gain from the previously disclosed litigation issue, and a charge of $200 million for Allapattah. Net income for 2004 included a $550 million special charge for Allapattah. -- Cash flow from operations and asset sales was approximately $54.2 billion, including $6.0 billion from asset sales. -- The Corporation distributed a total of $23.2 billion to shareholders in 2005 through dividends and share purchases to reduce shares outstanding, an increase of $8.3 billion versus 2004. -- Capital and exploration expenditures were $17.7 billion, an increase of $2.8 billion versus 2004. Upstream earnings excluding special items were $22,729 million, an increase of $6,054 million from 2004. Higher liquids and natural gas realizations were partly offset by lower production. On an oil-equivalent basis, production decreased 3.6% from last year. Excluding the impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production decreased by 1%. Liquids production of 2,523 kbd decreased by 48 kbd from 2004. Higher production from projects in West Africa, the North Sea and North America was more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, as well as entitlement and divestment impacts. Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased 1.5%. Natural gas production of 9,251 mcfd, decreased 613 mcfd from 2004. Higher volumes from projects in Qatar, the North Sea and North America were more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, lower European demand, as well as entitlement and divestment impacts. Earnings from U.S. Upstream operations for 2005 were $6,200 million, an increase of $1,252 million. Earnings outside the U.S., excluding special items, were $16,529 million, $4,802 million higher than 2004. Downstream earnings excluding special items were $7,882 million, an increase of $1,626 million from 2004 reflecting stronger worldwide refining margins partly offset by weaker marketing margins. Petroleum product sales of 8,257 kbd increased from 8,210 kbd in 2004. U.S. Downstream earnings excluding special items were $4,111 million, up $1,375 million. Non-U.S. Downstream earnings, excluding special items, were $3,771 million, $251 million higher than last year. Chemical earnings excluding special items were $3,403 million, down $25 million from 2004 due to lower volumes. Prime product sales were 26,777 kt, down 1,011 kt from 2004, largely due to the hurricanes. Corporate and financing expenses of $154 million decreased by $325 million mainly due to higher interest income. Gross share purchases in 2005 were $18,221 million which reduced shares outstanding by 4.2%. Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in millions of dollars. ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on January 30, 2006. To listen to the event live or in archive, go to our website at www.exxonmobil.com. Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including project plans, timing, and capacities, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir performance; the outcome of commercial negotiations; severe weather events; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" on our website and in Item 1 of ExxonMobil's 2004 Form 10-K. We assume no duty to update these statements as of any future date. Consistent with previous practice this press release includes both net income and earnings excluding special items. Earnings that exclude special items are a non-GAAP financial measure and are included to help facilitate comparisons of base business performance across periods. A reconciliation to net income 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. Calculation of this cash flow is shown in Attachment II. Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 28 and 29 in the 2004 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com. -0- *T Attachment I EXXON MOBIL CORPORATION FOURTH QUARTER 2005 ----------------------------------- (millions of dollars, unless noted) Fourth Quarter Twelve Months --------------- ----------------- 2005 2004 2005 2004 ------- ------- -------- -------- Earnings / Earnings Per Share Total revenues and other income 99,662 83,365 370,998 298,035 Total costs and other deductions 81,944 70,100 311,566 256,794 Income before income taxes 17,718 13,265 59,432 41,241 Income taxes 7,008 4,845 23,302 15,911 Net income (U.S. GAAP) 10,710 8,420 36,130 25,330 Net income per common share (dollars) 1.72 1.31 5.76 3.91 Net income per common share - assuming dilution (dollars) 1.71 1.30 5.71 3.89 Other Financial Data Dividends on common stock Total 1,795 1,738 7,185 6,896 Per common share (dollars) 0.29 0.27 1.14 1.06 Millions of common shares outstanding At December 31 6,133 6,401 Average - assuming dilution 6,211 6,461 6,322 6,519 Shareholders' equity at December 31 111,058 101,756 Capital employed at December 31 121,181 112,630 Income taxes 7,008 4,845 23,302 15,911 Excise taxes 7,829 7,288 30,742 27,263 All other taxes 10,871 11,419 44,571 43,605 Total taxes 25,708 23,552 98,615 86,779 ExxonMobil's share of income taxes of equity companies 466 294 2,226 1,180 Attachment II EXXON MOBIL CORPORATION FOURTH QUARTER 2005 ------------------------- (millions of dollars) Fourth Quarter Twelve Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Net Income (U.S. GAAP) Upstream United States 1,787 1,384 6,200 4,948 Non-U.S. 5,251 3,503 18,149 11,727 Downstream United States 1,158 876 3,911 2,186 Non-U.S. 1,232 1,468 4,081 3,520 Chemical United States 281 425 1,186 1,020 Non-U.S. 944 823 2,757 2,408 Corporate and financing 57 (59) (154) (479) Corporate total 10,710 8,420 36,130 25,330 Special Items Upstream Non-U.S. 0 0 1,620 0 Downstream United States 0 0 (200) (550) Non-U.S. 0 0 310 0 Chemical Non-U.S. 390 0 540 0 Corporate total 390 0 2,270 (550) Earnings Excluding Special Items Upstream United States 1,787 1,384 6,200 4,948 Non-U.S. 5,251 3,503 16,529 11,727 Downstream United States 1,158 876 4,111 2,736 Non-U.S. 1,232 1,468 3,771 3,520 Chemical United States 281 425 1,186 1,020 Non-U.S. 554 823 2,217 2,408 Corporate and financing 57 (59) (154) (479) Corporate total 10,320 8,420 33,860 25,880 Cash flow from operations and asset sales (billions of dollars) Net cash provided by operating activities (U.S. GAAP) 10.5 12.4 48.2 40.6 Sales of subsidiaries, investments and property, plant and equipment 1.4 0.7 6.0 2.7 Cash flow from operations and asset sales 11.9 13.1 54.2 43.3 Attachment III EXXON MOBIL CORPORATION FOURTH QUARTER 2005 ------------------------- Fourth Quarter Twelve Months -------------- ------------- 2005 2004 2005 2004 ------ ------- ------ ------ Net production of crude oil and natural gas liquids, thousands of barrels daily (kbd) United States 431 534 477 557 Canada 356 357 346 355 Europe 539 564 546 583 Asia Pacific 154 189 169 202 Africa 795 612 666 572 Other 354 309 319 302 Worldwide 2,629 2,565 2,523 2,571 Natural gas production available for sale, millions of cubic feet daily (mcfd) United States 1,620 1,810 1,739 1,947 Canada 912 951 918 972 Europe 4,804 5,370 4,315 4,614 Asia Pacific 1,132 1,382 1,268 1,519 Other 1,354 917 1,011 812 Worldwide 9,822 10,430 9,251 9,864 Oil-equivalent production (koebd)(a) 4,266 4,303 4,065 4,215 (a) Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels Attachment IV EXXON MOBIL CORPORATION FOURTH QUARTER 2005 ------------------------ Fourth Quarter Twelve Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Petroleum product sales (kbd) United States 2,900 2,993 2,915 2,872 Canada 641 643 620 615 Europe 2,155 2,167 2,115 2,139 Asia Pacific 1,837 1,751 1,786 1,689 Other 789 892 821 895 Worldwide 8,322 8,446 8,257 8,210 Gasolines, naphthas 3,274 3,380 3,274 3,301 Heating oils, kerosene, diesel 2,632 2,609 2,560 2,517 Aviation fuels 649 722 700 698 Heavy fuels 754 693 711 659 Specialty products 1,013 1,042 1,012 1,035 Total 8,322 8,446 8,257 8,210 Refinery throughput (kbd) United States 1,669 1,881 1,794 1,850 Canada 479 470 466 468 Europe 1,717 1,701 1,672 1,663 Asia Pacific 1,484 1,491 1,490 1,423 Other 303 309 301 309 Worldwide 5,652 5,852 5,723 5,713 Chemical prime product sales, thousands of metric tons (kt) United States 2,228 2,871 10,369 11,521 Non-U.S. 4,064 4,078 16,408 16,267 Worldwide 6,292 6,949 26,777 27,788 Attachment V EXXON MOBIL CORPORATION FOURTH QUARTER 2005 ------------------------- (millions of dollars) Fourth Quarter Twelve Months -------------- --------------- 2005 2004 2005 2004 ------- ------ ------- ------- Capital and Exploration Expenditures Upstream United States 542 520 2,142 1,922 Non-U.S. 3,852 2,774 12,328 9,793 Total 4,394 3,294 14,470 11,715 Downstream United States 213 175 753 775 Non-U.S. 535 496 1,742 1,630 Total 748 671 2,495 2,405 Chemical United States 61 79 243 262 Non-U.S. 108 177 411 428 Total 169 256 654 690 Other 20 12 80 75 Worldwide 5,331 4,233 17,699 14,885 Exploration expenses charged to income included above Consolidated affiliates United States 54 41 157 192 Non-U.S. 278 268 795 891 Equity companies - ExxonMobil share United States 0 9 0 9 Non-U.S. 0 16 17 27 Worldwide 332 334 969 1,119 Attachment VI EXXON MOBIL CORPORATION NET INCOME ------------------------ $ Millions $ Per Common Share ---------------- ------------------ 2001 -------------------- First Quarter 5,000 0.72 Second Quarter 4,460 0.66 Third Quarter 3,180 0.46 Fourth Quarter 2,680 0.39 Year 15,320 2.23 2002 -------------------- First Quarter 2,090 0.30 Second Quarter 2,640 0.40 Third Quarter 2,640 0.39 Fourth Quarter 4,090 0.60 Year 11,460 1.69 2003 -------------------- First Quarter 7,040 1.05 Second Quarter 4,170 0.63 Third Quarter 3,650 0.55 Fourth Quarter 6,650 1.01 Year 21,510 3.24 2004 -------------------- First Quarter 5,440 0.83 Second Quarter 5,790 0.89 Third Quarter 5,680 0.88 Fourth Quarter 8,420 1.31 Year 25,330 3.91 2005 -------------------- First Quarter 7,860 1.23 Second Quarter 7,640 1.21 Third Quarter 9,920 1.60 Fourth Quarter 10,710 1.72 Year 36,130 5.76 *T