Exxon Mobil Corporation (NYSE:XOM):
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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
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$ Millions 410 390 410 2,270
Earnings Excluding Special
Items
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$ 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
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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."
