XOM Exxon Mobil Corp

Exxon Mobil Corporation (NYSE:XOM): Second Quarter First Half 2007 2006 % 2007 2006 % Net Income $ Millions 10,260 10,360 -1 19,540 18,760 4 $ Per Common Share Assuming Dilution 1.83 1.72 6 3.45 3.09 12 � Special Items $ Millions 0 0 0 0 � Earnings Excluding Special Items $ Millions 10,260 10,360 -1 19,540 18,760 4 $ Per Common Share Assuming Dilution 1.83 1.72 6 3.45 3.09 12 � Capital and Exploration Expenditures - $ Millions 5,039 4,901 9,261 9,725 EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED: "ExxonMobil's second quarter net income was $10,260 million. Earnings per share were up 6% from the second quarter of 2006. Lower natural gas realizations were mostly offset by higher refining, marketing and chemical margins. Record first half net income of $19,540 million increased by 4% versus 2006 and 12% on an earnings per share basis over the first half of 2006. "ExxonMobil continued to actively invest in the second quarter, spending $5.0 billion on capital and exploration projects. For the first half of 2007, spending on capital and exploration projects was $9.3 billion. "The Corporation distributed a total of $9.0�billion to shareholders in the second quarter through dividends of $2.0 billion and share purchases to reduce shares outstanding of $7.0 billion, an increase of 14% versus the second quarter of 2006." SECOND QUARTER HIGHLIGHTS Net income was $10,260 million. Earnings per share were up 6% to $1.83 reflecting the reduced number of shares outstanding. Cash flow from operations and asset sales was approximately $12.5�billion, including asset sales of $1.2�billion. Spending on capital and exploration projects was $5.0 billion. Excluding cumulative entitlement and divestment impacts, as well as OPEC quota effects, liquids production increased by 5%. ExxonMobil completed drilling the longest measured depth extended-reach drilling well in the world. Located on Sakhalin Island offshore Eastern Russia, the record-setting well achieved a total measured depth of 37,016 feet or over seven miles. Second Quarter 2007 vs. Second Quarter 2006 Upstream earnings were $5,953�million, down $1,181�million from the second quarter of 2006 primarily reflecting lower gas realizations, lower gains on asset sales and the absence of prior period tax items. On an oil-equivalent basis, production decreased by 1% from the second quarter of 2006. Excluding the cumulative impact of entitlements and divestments, as well as OPEC quota effects, production was up nearly 4%. Liquids production of 2,668�kbd (thousands of barrels per day) was 34�kbd lower. Mature field decline was partly offset by increased production from projects in Russia and Qatar. Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, liquids production increased by 5%. Second quarter natural gas production was 8,711�mcfd (millions of cubic feet per day) compared with 8,754�mcfd last year. The impact of mature field decline and lower European demand was offset by higher volumes from projects in Qatar, Canada and Malaysia and the absence of planned maintenance activity in 2006. Excluding cumulative entitlement and divestment effects natural gas production increased by nearly 1%. Earnings from U.S. Upstream operations were $1,222�million, $422�million lower than the second quarter of 2006. Non-U.S. Upstream earnings were $4,731 million, down $759 million from 2006. Downstream earnings were $3,393 million, up $908�million from the second quarter of 2006, driven by higher refining and marketing margins and the sale of the Ingolstadt refinery in Germany. Petroleum product sales were 6,974�kbd, 86�kbd lower than last year's second quarter. U.S. Downstream earnings were $1,745�million, up $391�million from the second quarter of 2006. Non-U.S. Downstream earnings of $1,648�million were $517�million higher. Chemical earnings were $1,013�million, up $173�million from the second quarter of 2006 due to improved margins. Prime product sales of 6,897�kt (thousands of metric tons) in the second quarter of 2007 were up 42�kt from the prior year. Corporate and financing expenses of $99�million were flat with 2006. During the second quarter of 2007, Exxon Mobil Corporation purchased 99 million shares of its common stock for the treasury at a gross cost of $8.1�billion. These purchases included $7.0�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. Shares outstanding were reduced from 5,633�million at the end of the first quarter to 5,546�million at the end of the second 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. First Half 2007 vs. First Half 2006 Net income of $19,540�million ($3.45 per share) was a record and increased $780�million from 2006. FIRST HALF HIGHLIGHTS Net income was a record $19,540�million, an increase of 4%. Earnings per share increased by 12% due to strong earnings and the reduction in the number of shares outstanding. Cash flow from operations and asset sales was approximately $27.3�billion, including $1.7�billion from asset sales. The Corporation distributed a total of $17.8�billion to shareholders in 2007 through dividends and share purchases to reduce shares outstanding, an increase of $2.9�billion versus 2006. Capital and exploration expenditures were $9.3�billion. Excluding cumulative entitlement and divestment impacts, as well as OPEC quota effects, liquids production increased by 6%. Upstream earnings were $11,994�million, a decrease of $1,523�million from 2006 due to lower liquids and natural gas realizations and lower gains from asset sales. On an oil-equivalent basis, production decreased 2% from last year. Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, production increased by 2%. Liquids production of 2,707�kbd increased by 7�kbd from 2006. Higher production from projects in West Africa and Russia was partly offset by mature field decline. Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, liquids production increased 6%. Natural gas production of 9,409�mcfd decreased 549�mcfd from 2006. Lower volumes from mature field decline and lower European demand were partly offset by projects in Qatar, Canada and Malaysia. Earnings from U.S. Upstream operations for 2007 were $2,399�million, a decrease of $525�million. Earnings outside the U.S. were $9,595�million, $998�million lower than 2006. Downstream earnings were $5,305�million, an increase of $1,549�million from 2006 reflecting stronger worldwide refining and marketing margins and the sale of the Ingolstadt refinery in Germany. Petroleum product sales of 7,085�kbd decreased from 7,118�kbd in 2006. U.S. Downstream earnings were $2,584�million, up $551�million. Non-U.S. Downstream earnings were $2,721�million, $998 million higher than last year. Chemical earnings were $2,249�million, up $460�million from 2006 driven by higher margins. Prime product sales were 13,702�kt, down 69�kt from 2006. Corporate and financing expenses were $8�million, a decrease of $294�million, mainly due to favorable tax items. Gross share purchases in 2007 were $16.0 billion which reduced shares outstanding by 3.2%. 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 26, 2007. To listen to the event live or in archive, go to our website at "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 2006 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 32 and 33 in the 2006 Form�10-K and is also available through the Investor Information section of our website at "exxonmobil.com." Attachment I � � EXXON MOBIL CORPORATION SECOND QUARTER 2007 (millions of dollars, unless noted) Second Quarter First Half 2007 2006 2007 2006 Earnings / Earnings Per Share � Total revenues and other income 98,350 99,034 185,573 188,014 Total costs and other deductions 80,422 80,830 151,581 154,351 Income before income taxes 17,928 18,204 33,992 33,663 Income taxes 7,668 7,844 14,452 14,903 Net income (U.S. GAAP) 10,260 10,360 19,540 18,760 � Net income per common share (dollars) 1.85 1.74 3.49 3.12 � Net income per common share - assuming dilution (dollars) 1.83 1.72 3.45 3.09 � Other Financial Data � Dividends on common stock Total 1,961 1,926 3,786 3,883 Per common share (dollars) 0.35 0.32 0.67 0.64 � Millions of common shares outstanding At June 30 5,546 5,945 Average - assuming dilution 5,620 6,030 5,665 6,076 � Shareholders' equity at June 30 116,350 115,764 Capital employed at June 30 126,520 125,714 � Income taxes 7,668 7,844 14,452 14,903 Sales-based taxes 7,810 8,211 15,094 15,875 All other taxes 10,665 11,033 21,073 20,780 Total taxes 26,143 27,088 50,619 51,558 � ExxonMobil's share of income taxes of equity companies 517 356 1,090 877 Attachment II � EXXON MOBIL CORPORATION SECOND QUARTER 2007 (millions of dollars) Second Quarter First Half 2007 � 2006 � 2007 � 2006 � Net Income (U.S. GAAP) Upstream United States 1,222 1,644 2,399 2,924 Non-U.S. 4,731 5,490 9,595 10,593 Downstream United States 1,745 1,354 2,584 2,033 Non-U.S. 1,648 1,131 2,721 1,723 Chemical United States 204 189 550 518 Non-U.S. 809 651 1,699 1,271 Corporate and financing (99 ) (99 ) (8 ) (302 ) Corporate total 10,260 10,360 19,540 18,760 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 0 0 0 Corporate total 0 0 0 0 Earnings Excluding Special Items Upstream United States 1,222 1,644 2,399 2,924 Non-U.S. 4,731 5,490 9,595 10,593 Downstream United States 1,745 1,354 2,584 2,033 Non-U.S. 1,648 1,131 2,721 1,723 Chemical United States 204 189 550 518 Non-U.S. 809 651 1,699 1,271 Corporate and financing (99 ) (99 ) (8 ) (302 ) Corporate total 10,260 � 10,360 � 19,540 � 18,760 � Cash flow from operations and asset sales (billions of dollars) Net cash provided by operating activities (U.S. GAAP) 11.3 11.3 25.6 25.9 Sales of subsidiaries, investments and property, plant and equipment 1.2 1.1 1.7 1.5 Cash flow from operations and asset sales 12.5 � 12.4 � 27.3 � 27.4 � Attachment III � � EXXON MOBIL CORPORATION SECOND QUARTER 2007 � Second Quarter First Half 2007 2006 2007 2006 Net production of crude oil and natural gas liquids, thousands of barrels daily (kbd) United States 393 435 404 438 Canada 312 300 304 316 Europe 490 511 507 537 Africa 734 808 758 774 Asia Pacific/Middle East 529 481 518 474 Russia/Caspian 182 125 184 119 Other 28 42 32 42 Worldwide 2,668 2,702 2,707 2,700 � Natural gas production available for sale, millions of cubic feet daily (mcfd) United States 1,517 1,656 1,515 1,673 Canada 794 841 784 861 Europe 3,032 3,466 3,816 4,711 Asia Pacific/Middle East 3,173 2,616 3,086 2,540 Russia/Caspian 97 85 106 84 Other 98 90 102 89 Worldwide 8,711 8,754 9,409 9,958 � Oil-equivalent production (koebd)1 4,120 4,161 4,275 4,360 � � � � 1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels Attachment IV � � EXXON MOBIL CORPORATION SECOND QUARTER 2007 � Second Quarter First Half 2007 2006 2007 2006 Refinery throughput (kbd) United States 1,592 1,720 1,695 1,718 Canada 410 366 425 426 Europe 1,621 1,707 1,631 1,676 Asia Pacific 1,337 1,312 1,420 1,388 Other 319 302 320 269 Worldwide 5,279 5,407 5,491 5,477 � Petroleum product sales (kbd)1 United States 2,651 2,689 2,712 2,670 Canada 451 451 450 468 Europe 1,769 1,852 1,791 1,824 Asia Pacific 1,345 1,303 1,386 1,414 Other 758 765 746 742 Worldwide 6,974 7,060 7,085 7,118 � Gasolines, naphthas 2,876 2,875 2,867 2,805 Heating oils, kerosene, diesel 1,995 2,055 2,107 2,149 Aviation fuels 622 632 627 633 Heavy fuels 660 665 681 675 Specialty products 821 833 803 856 Worldwide 6,974 7,060 7,085 7,118 � Chemical prime product sales, thousands of metric tons (kt) United States 2,701 2,628 5,432 5,248 Non-U.S. 4,196 4,227 8,270 8,523 Worldwide 6,897 6,855 13,702 13,771 � � � 1 Petroleum product sales data is reported net of purchases/sales contracts with the same counterparty. Attachment V � � EXXON MOBIL CORPORATION SECOND QUARTER 2007 (millions of dollars) � Second Quarter First Half 2007 2006 2007 2006 Capital and Exploration Expenditures Upstream United States 497 619 963 1,167 Non-U.S. 3,369 3,313 6,372 6,852 Total 3,866 3,932 7,335 8,019 Downstream United States 317 250 529 412 Non-U.S. 557 492 876 911 Total 874 742 1,405 1,323 Chemical United States 62 64 146 127 Non-U.S. 214 122 349 203 Total 276 186 495 330 � Other 23 41 26 53 � Worldwide 5,039 4,901 9,261 9,725 � � Exploration expenses charged to income included above Consolidated affiliates United States 37 36 126 99 Non-U.S. 308 134 487 348 Equity companies - ExxonMobil share United States 1 0 2 0 Non-U.S. 1 0 3 3 Worldwide 347 170 618 450 Attachment VI � � EXXON MOBIL CORPORATION NET INCOME � � $ Millions $ Per Common Share � 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 � 2007 First Quarter 9,280 1.64 Second Quarter 10,260 1.85