Exxon Mobil Corporation Announces Estimated Second Quarter 2007 Results
IRVING, Texas--(BUSINESS WIRE)--
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
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$ 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
Source: Exxon Mobil Corporation
Released July 26, 2007