Exxon Mobil Corporation (NYSE:XOM):
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*T
Second Quarter First Half
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2007 2006 % 2007 2006 %
-------- ------- -- ------- ------ ---
Net Income
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$ 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
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$ Millions 0 0 0 0
Earnings Excluding Special Items
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$ 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
*T
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."