XOM Exxon Mobil Corp

Exxon Mobil Corporation (NYSE:XOM): Fourth Quarter Twelve Months 2006� 2005� % 2006� 2005� % Net Income $ Millions 10,250� 10,710� -4� 39,500� 36,130� 9� $ Per Common Share Assuming Dilution 1.76� 1.71� 3� 6.62� 5.71� 16� � Special Items $ Millions 410� 390� 410� 2,270� � Earnings Excluding Special Items $ Millions 9,840� 10,320� -5� 39,090� 33,860� 15� $ Per Common Share Assuming Dilution 1.69� 1.65� 2� 6.55� 5.35� 22� � Capital and Exploration Expenditures - $ Millions 5,069� 5,331� 19,855� 17,699� EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED: "Full year 2006 earnings excluding special items were a record $39,090 million driven by strong results in every business segment. "ExxonMobil continued to leverage its globally diverse resource base to bring additional crude oil and natural gas to market. In 2006, spending on capital and exploration projects was $19.9 billion, an increase of 12% over 2005. The results of our long-term investment program yielded an additional 172�thousand oil-equivalent barrels per day of production, a 4% increase over 2005. "The Corporation distributed a total of $32.6�billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of 41% or $9.4�billion versus 2005. "ExxonMobil's fourth quarter earnings excluding special items were $9,840�million, down 5% from fourth quarter 2005. Lower natural gas realizations and refining margins were partly offset by higher crude oil realizations and improved chemical margins. Net income for the fourth quarter was down 4% from 2005." FOURTH QUARTER HIGHLIGHTS Earnings excluding special items were $9,840�million, a decrease of 5% or $480�million from the fourth quarter of 2005. Net income of $10,250 million was down 4% and includes a special tax-related benefit of $410 million. Fourth quarter 2005 net income included a special litigation gain of $390�million. Spending on capital and exploration projects was $5.1 billion, a decrease of 5% versus 2005. Excluding entitlement and divestment impacts, liquids production increased by 6%. Cash flow from operations and asset sales was approximately $9.6�billion, including asset sales of $0.8�billion and $2.4 billion in contributions to the U.S. pension plan. Earnings per share excluding special items were $1.69, an�increase of 2%, reflecting strong earnings and the continuing reduction in the number of shares outstanding. Production commenced from the Dalia field in Angola. Dalia is estimated to contain nearly 1 billion barrels (gross) of recoverable reserves and is expected to reach peak production of about 225 kbd (gross) in the first quarter of 2007. Early production of LNG began at Train 5 in the RasGas Joint Venture in Qatar. Initial operations started up only 29 months after the contract award. Completion of the offshore facilities that will supply natural gas to Train 5 on a long-term basis is anticipated by the end of the first quarter 2007. Train 5 is designed to produce 4.7�million tons per year of LNG for anticipated delivery to markets in Asia and Europe. Fourth Quarter 2006 vs. Fourth Quarter 2005 Upstream earnings were $6,220�million, down $818�million from the fourth quarter of 2005 primarily reflecting lower natural gas realizations and decreased volumes driven by lower European demand. On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2005. Excluding the impact of divestments and entitlements, production increased 2%. Liquids production of 2,678�kbd (thousands of barrels per day) was 49�kbd higher. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, and the impact of entitlements and divestments. Excluding entitlement and divestment effects, liquids production increased by 6%. Fourth quarter natural gas production was 9,301�mcfd (millions of cubic feet per day) compared with 9,822�mcfd last year. Lower European demand and the impact of mature field decline were partly offset by higher volumes from projects in Qatar and the absence of 2005 hurricane effects. Earnings from U.S. Upstream operations were $1,052�million, $735�million lower than the fourth quarter of 2005. Non-U.S. Upstream earnings excluding special items were $5,168 million, down $83 million from 2005. Downstream earnings were $1,960 million, down $430�million from the fourth quarter 2005, as lower refining and marketing margins more than offset the earnings benefit related to our continuing efforts to efficiently manage inventories. Petroleum product sales were 7,447�kbd, 145�kbd lower than last year's fourth quarter, primarily due to divestments. U.S. Downstream earnings were $945�million, down $213�million. Non-U.S. Downstream earnings of $1,015�million were $217�million lower than the fourth quarter of 2005. Chemical earnings excluding special items were $1,242�million, up $407�million from the fourth quarter of 2005 due to improved margins and higher volumes. Prime product sales of 6,827�kt (thousands of metric tons) in the fourth quarter of 2006 were up 535�kt from the prior year. Corporate and financing earnings excluding special items were $418�million, up $361�million, mainly due to tax items. During the fourth quarter of 2006, Exxon Mobil Corporation purchased 115�million shares of its common stock for the treasury at a gross cost of $8.4�billion. These purchases included $7.0�billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company's benefit plans and programs. Shares outstanding were reduced from 5,832�million at the end of the third quarter to 5,729�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 2006 vs. Full Year 2005 Net income of $39,500�million ($6.62 per share) was a record and increased $3,370�million from 2005. Net income for 2006 included a special item of $410 million for a tax-related benefit. Net income for 2005 included special items totaling a gain of $2,270 million. Excluding these impacts, earnings for 2006 increased by $5,230�million. FULL YEAR HIGHLIGHTS Earnings excluding special items were a record $39,090�million, an increase of 15% reflecting ExxonMobil's continuing strong performance across all business segments. Earnings per share excluding special items increased by 22% due to strong earnings and the continuing reduction in the number of shares outstanding. Net income was up 9%. Net income for 2006 included a special gain of $410 million for a tax-related benefit. Net income for 2005 included a $1,620 million special gain related to the restructuring of the Corporation's interest in the Dutch gas transportation business, a $460�million positive impact from the sale of the Corporation's interest in Sinopec, a $390�million litigation gain and a $200�million litigation charge. Cash flow from operations and asset sales was approximately $52.4�billion, including $3.1�billion from asset sales. The Corporation distributed a total of $32.6�billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of $9.4�billion versus 2005. Capital and exploration expenditures were $19.9�billion, an increase of $2.2�billion versus 2005. Liquids production increased 10% excluding divestment and entitlement impacts. Upstream earnings excluding special items were $26,230�million, an increase of $3,501�million from 2005. Higher liquids and natural gas realizations were partly offset by higher operating expenses. On an oil-equivalent basis, production increased 4% from last year. Excluding divestment and entitlement effects, production increased by 7%. Liquids production of 2,681�kbd increased by 158�kbd from 2005. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, entitlement effects and divestment impacts. Excluding entitlement effects and divestments, liquids production increased 10%. Natural gas production of 9,334�mcfd, increased 83�mcfd from 2005. Higher volumes from projects in Qatar were partly offset by mature field decline. Earnings from U.S. Upstream operations for 2006 were $5,168�million, a decrease of $1,032�million. Earnings outside the U.S., excluding special items, were $21,062�million, $4,533�million higher than 2005. Downstream earnings excluding special items were $8,454�million, an increase of $572�million from 2005 reflecting stronger worldwide refining margins and marketing margins, partly offset by lower refining throughput. Petroleum product sales of 7,247�kbd decreased from 7,519�kbd in 2005, primarily due to lower refining throughput and divestments. U.S. Downstream earnings excluding special items were $4,250�million, up $139�million. Non-U.S. Downstream earnings excluding special items were $4,204�million, $433�million higher than last year. Chemical earnings excluding special items were $4,382�million, up $979�million from 2005. Margins and volumes were both higher. Prime product sales were 27,350�kt, up 573�kt from 2005. Corporate and financing earnings excluding special items were $24�million, an increase of $178�million, mainly due to higher interest income. Gross share purchases in 2006 were $29.6 billion which reduced shares outstanding by 6.6%. Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in either millions or billions of dollars. ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. Central time on February 1, 2007. 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 and related expenditures, resource recoveries, 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; potential liability resulting from pending or future litigation; wars and acts of terrorism or sabotage; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" on our website and in Item 1A of ExxonMobil's 2005 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 2005 Form�10-K and is also available through the Investor Information section of our website at "www.exxonmobil.com." Attachment I � � EXXON MOBIL CORPORATION FOURTH QUARTER 2006 (millions of dollars, unless noted) Fourth Quarter Twelve Months 2006� 2005� 2006� 2005� Earnings / Earnings Per Share � Total revenues and other income1 90,028� 99,344� 377,635� 370,680� Total costs and other deductions1 74,467� 81,626� 310,233� 311,248� Income before income taxes 15,561� 17,718� 67,402� 59,432� Income taxes 5,311� 7,008� 27,902� 23,302� Net income (U.S. GAAP) 10,250� 10,710� 39,500� 36,130� � Net income per common share (dollars) 1.77� 1.72� 6.68� 5.76� � Net income per common share - assuming dilution (dollars) 1.76� 1.71� 6.62� 5.71� � Other Financial Data � Dividends on common stock Total 1,853� 1,795� 7,628� 7,185� Per common share (dollars) 0.32� 0.29� 1.28� 1.14� � Millions of common shares outstanding At December 31 5,729� 6,133� Average - assuming dilution 5,816� 6,211� 5,970� 6,322� � Shareholders' equity at December 31 113,844� 111,186� Capital employed at December 31 123,855� 121,291� � Income taxes 5,311� 7,008� 27,902� 23,302� Sales-based taxes 6,742� 7,829� 30,381� 30,742� All other taxes 10,820� 10,871� 42,393� 44,571� Total taxes 22,873� 25,708� 100,676� 98,615� � ExxonMobil's share of income taxes of equity companies 609� 466� 1,920� 2,226� � 1 Fourth quarter 2005 included $7,704 million and twelve months of 2005 included $30,810 million for purchases/sales contracts with the same counterparty. These transactions are reported on a net basis in 2006. Attachment II � EXXON MOBIL CORPORATION FOURTH QUARTER 2006 (millions of dollars) Fourth Quarter Twelve Months 2006� 2005� 2006� 2005� Net Income (U.S. GAAP) Upstream United States 1,052� 1,787� 5,168� 6,200� Non-U.S. 5,168� 5,251� 21,062� 18,149� Downstream United States 945� 1,158� 4,250� 3,911� Non-U.S. 1,015� 1,232� 4,204� 4,081� Chemical United States 384� 281� 1,360� 1,186� Non-U.S. 858� 944� 3,022� 2,757� Corporate and financing 828� 57� 434� (154) Corporate total 10,250� 10,710� 39,500� 36,130� Special Items Upstream United States 0� 0� 0� 0� Non-U.S. 0� 0� 0� 1,620� Downstream United States 0� 0� 0� (200) Non-U.S. 0� 0� 0� 310� Chemical United States 0� 0� 0� 0� Non-U.S. 0� 390� 0� 540� Corporate and financing 410� 0� 410� 0� Corporate total 410� 390� 410� 2,270� Earnings Excluding Special Items Upstream United States 1,052� 1,787� 5,168� 6,200� Non-U.S. 5,168� 5,251� 21,062� 16,529� Downstream United States 945� 1,158� 4,250� 4,111� Non-U.S. 1,015� 1,232� 4,204� 3,771� Chemical United States 384� 281� 1,360� 1,186� Non-U.S. 858� 554� 3,022� 2,217� Corporate and financing 418� 57� 24� (154) Corporate total 9,840� 10,320� 39,090� 33,860� Cash flow from operations and asset sales (billions of dollars) Net cash provided by operating activities (U.S. GAAP) 8.8� 10.5� 49.3� 48.2� Sales of subsidiaries, investments and property, plant and equipment 0.8� 1.4� 3.1� 6.0� Cash flow from operations and asset sales 9.6� 11.9� 52.4� 54.2� Attachment III � � EXXON MOBIL CORPORATION FOURTH QUARTER 2006 � Fourth Quarter Twelve Months 2006� 2005� 2006� 2005� Net production of crude oil and natural gas liquids, thousands of barrels daily (kbd) United States 404� 431� 414� 477� Canada 316� 356� 312� 346� Europe 516� 539� 520� 546� Africa 772� 795� 781� 666� Asia Pacific/Middle East 487� 330� 485� 331� Russia/Caspian 144� 131� 127� 107� Other 39� 47� 42� 50� Worldwide 2,678� 2,629� 2,681� 2,523� � Natural gas production available for sale, millions of cubic feet daily (mcfd) United States 1,588� 1,620� 1,625� 1,739� Canada 818� 912� 851� 918� Europe 4,108� 4,804� 4,086� 4,315� Asia Pacific/Middle East 2,601� 2,303� 2,596� 2,114� Russia/Caspian 110� 98� 92� 77� Other 76� 85� 84� 88� Worldwide 9,301� 9,822� 9,334� 9,251� � Oil-equivalent production (koebd)1 4,228� 4,266� 4,237� 4,065� � � � � 1Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels Attachment IV � � EXXON MOBIL CORPORATION FOURTH QUARTER 2006 � Fourth Quarter Twelve Months 2006� 2005� 2006� 2005� Petroleum product sales (kbd)1 United States 2,851� 2,816� 2,729� 2,822� Canada 483� 517� 473� 498� Europe 1,779� 1,863� 1,813� 1,824� Asia Pacific 1,530� 1,613� 1,461� 1,561� Other 804� 783� 771� 814� Worldwide 7,447� 7,592� 7,247� 7,519� � Gasolines, naphthas 2,952� 2,969� 2,866� 2,957� Heating oils, kerosene, diesel 2,303� 2,290� 2,191� 2,230� Aviation fuels 652� 626� 651� 676� Heavy fuels 677� 732� 682� 689� Specialty products 863� 975� 857� 967� Total 7,447� 7,592� 7,247� 7,519� � Refinery throughput (kbd) United States 1,837� 1,669� 1,760� 1,794� Canada 456� 479� 442� 466� Europe 1,616� 1,717� 1,672� 1,672� Asia Pacific 1,474� 1,484� 1,434� 1,490� Other 315� 303� 295� 301� Worldwide 5,698� 5,652� 5,603� 5,723� � Chemical prime product sales, thousands of metric tons (kt) United States 2,775� 2,228� 10,703� 10,369� Non-U.S. 4,052� 4,064� 16,647� 16,408� Worldwide 6,827� 6,292� 27,350� 26,777� � � � � � � 1 Petroleum product sales data is reported net of purchases/sales contracts with the same counterparty. Attachment V � � EXXON MOBIL CORPORATION FOURTH QUARTER 2006 (millions of dollars) � Fourth Quarter Twelve Months 2006� 2005� 2006� 2005� Capital and Exploration Expenditures Upstream United States 713� 542� 2,486� 2,142� Non-U.S. 3,357� 3,852� 13,745� 12,328� Total 4,070� 4,394� 16,231� 14,470� Downstream United States 197� 213� 824� 753� Non-U.S. 551� 535� 1,905� 1,742� Total 748� 748� 2,729� 2,495� Chemical United States 78� 61� 280� 243� Non-U.S. 153� 108� 476� 411� Total 231� 169� 756� 654� � Other 20� 20� 139� 80� � Worldwide 5,069� 5,331� 19,855� 17,699� � � Exploration expenses charged to income included above Consolidated affiliates United States 59� 54� 243� 157� Non-U.S. 314� 278� 925� 795� Equity companies - ExxonMobil share United States 2� 0� 2� 0� Non-U.S. 4� 0� 9� 17� Worldwide 379� 332� 1,179� 969� Attachment VI � � EXXON MOBIL CORPORATION NET INCOME � � $ Millions $ Per Common Share � 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� � 2006� First Quarter 8,400� 1.38� Second Quarter 10,360� 1.74� Third Quarter 10,490� 1.79� Fourth Quarter 10,250� 1.77� Year 39,500� 6.68�