Exxon Mobil Corporation (NYSE:XOM):
= = = = = = = = = = =
First Quarter
- - - - - -
2008
2007
%
- - - - - -
Net Income
- - - - - -
$ Millions
10,890
9,280
17
- - - - - -
$ Per Common Share
- - - - - -
Assuming Dilution
2.03
1.62
25
- - - - - -
- - - - - -
Special Items
- - - - - -
$ Millions
0
0
- - - - - -
- - - - - -
Earnings Excluding Special Items
- - - - - -
$ Millions
10,890
9,280
17
- - - - - -
$ Per Common Share
- - - - - -
Assuming Dilution
2.03
1.62
25
- - - - - -
- - - - - -
Capital and Exploration
- - - - - -
Expenditures - $ Millions
5,491
4,222
30
- - - - - -
EXXONMOBIL´S CHAIRMAN REX W. TILLERSON
COMMENTED:
"ExxonMobil´s first quarter net income was a record $10,890 million
up 17% from the first quarter of 2007. Earnings per share were up
25% reflecting the impact of the continuing share purchase program. Higher
crude oil and natural gas realizations, driven by record worldwide crude
oil prices, were partly offset by lower refining and chemical margins
lower production volumes and higher operating costs.
"Spending on capital and exploration projects was $5.5 billion in the
first quarter, up 30% from last year, as we continued to actively invest
in projects to bring additional crude oil, natural gas and finished
products to market.
"Share purchases to reduce shares outstanding were increased to $8.0
billion in the first quarter of 2008. The Corporation distributed
a total of $9.9 billion to shareholders during the quarter through
dividends and share purchases to reduce shares outstanding, an increase
of 13% or $1.1 billion versus the first quarter of 2007."
FIRST QUARTER HIGHLIGHTS
Record first quarter net income was $10,890 million, up 17% from the
first quarter of 2007.
Earnings per share were up 25% to $2.03 reflecting strong earnings and
the reduced number of shares outstanding.
Spending on capital and exploration projects was $5.5 billion, up 30%
from the first quarter of 2007.
Cash flow from operations and asset sales was approximately
$21.8 billion, including asset sales of $0.4 billion.
Share purchases of $8.0 billion reduced shares outstanding by 1.8%.
The ExxonMobil-operated Kizomba C deepwater development started
production from the Mondo field in January 2008, 23 months after
project approval. Kizomba C is designed to develop 600 million barrels
of oil (gross) from the Mondo, Saxi and Batuque fields off the coast
of Angola, utilizing two new floating production, storage, and
offloading (FPSO) vessels. The Saxi and Batuque fields are expected to
begin production later in 2008, and combined peak production from the
three fields is expected to reach 200,000 barrels of oil per day
(gross).
ExxonMobil and Malaysia´s national oil
company, PETRONAS, signed the main principles agreement for a new 25
year production sharing contract (PSC), to further develop petroleum
resources offshore Peninsular Malaysia. The contract includes
commitments to implement significant enhanced oil recovery activities
and for major investments to continue conventional oil development.
First Quarter 2008 vs. First Quarter
2007
Upstream earnings were $8,785 million, up $2,744 million from the first
quarter of 2007. Record high crude oil and natural gas realizations
increased earnings approximately $4.4 billion. Volume and mix effects
decreased earnings about $800 million, as increased natural gas volumes
were more than offset by lower crude oil volumes. Higher taxes
increased operating costs and lower gains on asset sales decreased
earnings approximately $900 million.
On an oil-equivalent basis, production decreased 5.6% from the first
quarter of 2007. Excluding the Venezuela expropriation, divestments
OPEC quota effects and price and spend impacts on volumes, production
was down 3%.
Liquids production totaled 2,474 kbd (thousands of barrels per day)
down 272 kbd from the first quarter of 2007. Excluding the Venezuela
expropriation, divestments, OPEC quota effects and price and spend
impacts on volumes, liquids production was down 6%. Increased production
from projects in west Africa and the North Sea was more than offset by
mature field decline, PSC net interest reductions and maintenance
activities.
First quarter natural gas production was 10,246 mcfd (millions of cubic
feet per day), up 132 mcfd from 2007. Higher European demand and North
Sea project additions were partly offset by mature field decline.
Earnings from U.S. Upstream operations were $1,631 million, $454 million
higher than the first quarter of 2007. Non-U.S. Upstream earnings were
$7,154 million, up $2,290 million from 2007.
Downstream earnings of $1,166 million were $746 million lower than the
first quarter of 2007. Significantly lower worldwide refining margins
decreased earnings approximately $1.0 billion, while improved refinery
operations increased earnings about $350 million. Petroleum product
sales of 6,821 kbd were 377 kbd lower than last year´s first quarter
mainly reflecting asset sales.
U.S. Downstream earnings were $398 million, down $441 million from the
first quarter of 2007. Non-U.S. Downstream earnings of $768 million were
$305 million lower.
Chemical earnings of $1,028 million were $208 million lower than the
first quarter of 2007. Lower margins, which decreased earnings
approximately $350 million, were partly offset by favorable foreign
exchange and tax effects. Prime product sales of 6,578 kt (thousands of
metric tons) in the first quarter of 2008 were 227 kt lower than the
prior year.
Corporate and financing expenses were $89 million, up $180 million
mainly due to higher corporate costs and tax items.
During the first quarter of 2008, Exxon Mobil Corporation purchased 110
million shares of its common stock for the treasury at a gross cost of
$9.5 billion. These purchases included $8.0 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 5,382 million at the end of the fourth
quarter to 5,284 million at the end of the first 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.
ExxonMobil will discuss financial and operating results and other
matters on a webcast at 10 a.m. Central time on May 1, 2008. 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, capacities, and timing and resource
recoveries, 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; 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 2007 Form 10-K. We
assume no duty to update these statements as of any future date. References
to quantities of oil expected to be developed may include amounts not
yet classified as proved reserves but that we believe will ultimately be
produced.
Consistent with previous practice, this press release includes both
earnings excluding special items and earnings per share excluding
special items. Both are non-GAAP financial measures 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. A reconciliation to net
cash provided by operating activities is shown in Attachment II. Further
information on ExxonMobil´s frequently used financial and operating
measures and other terms is contained under the heading "Frequently Used
Terms" available through the Investor Information section of our website
at exxonmobil.com.
