Exxon Mobil Corporation Announces Estimated Second Quarter 2010 Results
IRVING, Texas--(BUSINESS WIRE)-- Exxon Mobil Corporation (NYSE:XOM):
Second Quarter First Half
2010 2009 % 2010 2009 %
Earnings Excluding Special Items1
$ Millions 7,560 4,090 85 13,860 8,640 60
$ Per Common Share
Assuming Dilution 1.60 0.84 90 2.93 1.76 66
Special Items
$ Millions 0 (140 ) 0 (140 )
Earnings
$ Millions 7,560 3,950 91 13,860 8,500 63
$ Per Common Share
Assuming Dilution 1.60 0.81 98 2.93 1.73 69
Capital and Exploration
Expenditures - $ Millions 6,519 6,562 -1 13,396 12,336 9
1See Reference to Earnings
EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:
"ExxonMobil's focus on operational excellence continues to deliver strong results. Second quarter earnings, excluding special items, of $7.6 billion, were up 85% from second quarter of last year reflecting higher crude oil realizations, improved downstream margins, and strong chemical results. First half earnings, excluding special items, of $13.9 billion increased by 60% over the first half of 2009.
"Oil-equivalent production increased by 8% over the second quarter of 2009 driven by contributions from our world-class assets in Qatar.
"We continued our focus on investing for the future with capital and exploration spending of $13.4 billion year to date, up 9% from the first half of last year.
"Over $3 billion was returned to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding.
"The Corporation's second quarter 2010 earnings and production volumes included de minimis amounts for the period from June 25 to June 30 resulting from the merger with XTO Energy Inc. which closed on June 25, 2010."
SECOND QUARTER HIGHLIGHTS
-- Earnings excluding special items were $7,560 million, an increase of 85%
or $3,470 million from the second quarter of 2009.
-- Earnings per share excluding special items were $1.60, an increase of
90%.
-- Earnings were up 91% from the second quarter of 2009 which included a
special charge of $140 million for interest related to the Valdez
punitive damages award. Earnings for the second quarter of 2010 did not
include any special items.
-- Capital and exploration expenditures were $6.5 billion, down 1% from the
second quarter of 2009.
-- Oil-equivalent production increased 8% from the second quarter of 2009.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, production was up about 10%.
-- Cash flow from operations and asset sales was $9.6 billion, including
asset sales of $0.5 billion.
-- Share purchases to reduce shares outstanding were over $1 billion.
-- Dividends per share of $0.44 increased by 5% compared to the second
quarter of 2009.
-- The merger with XTO Energy, a leading U.S. unconventional natural gas
and oil producer, was completed on June 25, 2010, making ExxonMobil the
largest U.S. natural gas producer. Through this transaction ExxonMobil
has acquired a resource base in excess of 45 trillion cubic feet
equivalent at a cost of under $1 per kcf equivalent.
-- ExxonMobil and Synthetic Genomics Inc. (SGI) announced the opening of a
greenhouse facility enabling the next step of research and testing in
our algae biofuels program. SGI and ExxonMobil researchers are using the
facility to test whether large-scale quantities of affordable fuel can
be produced from algae.
Second Quarter 2010 vs. Second Quarter 2009
Upstream earnings were $5,336 million, up $1,524 million from the second quarter of 2009. Higher crude oil and natural gas realizations drove the improvement and increased earnings by $1.6 billion.
On an oil-equivalent basis, production increased 8% from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 10%.
Liquids production totaled 2,325 kbd (thousands of barrels per day), down 21 kbd from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 1%, as increased production from projects in Qatar and Kazakhstan more than offset net field decline.
Second quarter natural gas production was 10,025 mcfd (millions of cubic feet per day), up 1,984 mcfd from 2009, driven by project ramp-ups in Qatar and higher demand in Europe, partly offset by net field decline.
Earnings from U.S. Upstream operations were $865 million, $52 million higher than the second quarter of 2009. Non-U.S. Upstream earnings were $4,471 million, up $1,472 million from last year.
Downstream earnings of $1,220 million were up $708 million from the second quarter of 2009. Higher industry refining and marketing margins increased earnings by $780 million. Volumes and product mix effects increased earnings by $170 million while other factors, mainly unfavorable foreign exchange impacts, decreased earnings by $240 million. Petroleum product sales of 6,241 kbd were 246 kbd lower than last year's second quarter, mainly reflecting lower demand.
Earnings from the U.S. Downstream were $440 million, up $455 million from the second quarter of 2009. Non-U.S. Downstream earnings of $780 million were $253 million higher than last year.
Chemical earnings of $1,368 million were $1,001 million higher than the second quarter of 2009. Stronger margins improved earnings by $840 million and higher sales volumes increased earnings by $120 million. Second quarter prime product sales of 6,496 kt (thousands of metric tons) were 229 kt higher than the prior year primarily due to improved global demand.
Corporate and financing expenses excluding special items were $364 million, down $237 million due mainly to favorable tax items.
During the second quarter of 2010, Exxon Mobil Corporation purchased 24 million shares of its common stock for the treasury at a gross cost of $1.6 billion. These purchases included over $1 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. As a result of regulatory requirements, no open market purchases of shares were made during the proxy solicitation period for the XTO transaction. Including 416 million shares issued in connection with the XTO merger, shares outstanding increased from 4,698 million at the end of the first quarter to 5,092 million at the end of the second quarter. Share purchases to reduce shares outstanding are currently anticipated to equal $3 billion in the third quarter of 2010. 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 2010 vs. First Half 2009
Earnings of $13,860 million ($2.93 per share) increased $5,360 million from 2009. Excluding special items, earnings for the first half of 2010 increased $5,220 million from 2009.
FIRST HALF HIGHLIGHTS
-- Earnings excluding special items were $13,860 million, up 60%.
-- Earnings per share excluding special items increased 66% to $2.93.
-- Earnings were up 63% from 2009. Earnings for 2009 included a special
charge of $140 million for interest related to the Valdez punitive
damages award. Earnings for the first half of 2010 did not include any
special items.
-- Oil equivalent production was up 6% from 2009. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, production was
up 8%.
-- Cash flow from operations and asset sales was $23.1 billion, including
$0.9 billion from asset sales.
-- The Corporation distributed over $7 billion to shareholders in the first
half of 2010 through dividends and share purchases to reduce shares
outstanding.
-- Capital and exploration expenditures were $13.4 billion, up 9% versus
2009.
Upstream earnings were $11,150 million, up $3,835 million from 2009. Higher net realizations increased earnings approximately $4 billion. The favorable impact of higher volumes of $0.4 billion was partially offset by higher operating costs of $0.3 billion.
On an oil-equivalent basis, production was up 6% compared to the same period in 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 8%.
Liquids production of 2,370 kbd decreased 41 kbd compared with 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was flat with 2009, as new volumes from project ramp-ups in Qatar and Kazakhstan were offset by net field decline.
Natural gas production of 10,852 mcfd increased 1,744 mcfd from 2009, driven by higher volumes from Qatar projects and higher demand in Europe.
Earnings from U.S. Upstream operations for 2010 were $1,956 million, an increase of $783 million. Earnings outside the U.S. were $9,194 million, up $3,052 million.
Downstream earnings of $1,257 million were $388 million lower than 2009. Lower refining margins decreased earnings by $0.5 billion. Unfavorable forex impacts of $0.4 billion were offset by improved marketing margins, and favorable sales volume mix and refining operations effects. Petroleum product sales of 6,193 kbd decreased 268 kbd, mainly reflecting lower demand.
U.S. Downstream earnings were $380 million, up $43 million from 2009. Non-U.S. Downstream earnings were $877 million, $431 million lower than last year.
Chemical earnings of $2,617 million increased $1,900 million from 2009. Stronger margins increased earnings by approximately $1.4 billion while higher volumes increased earnings about $0.3 billion. Prime product sales of 12,984 kt were up 1,190 kt from 2009.
Corporate and financing expenses excluding special items were $1,164 million, up $127 million from 2009 mainly due to a tax charge related to the U.S. health care legislation during the first half of 2010.
Gross share purchases through the first half of 2010 were $4.1 billion, reducing shares outstanding by 61 million shares, excluding the impact of the XTO transaction.
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 29, 2010. To listen to the event live or in archive, go to our website at exxonmobil.com.
Cautionary statement
Statements in this release relating to future plans, projections, events or conditions are forward-looking statements. Actual results, including benefits resulting from the XTO transaction; project plans, costs, timing, and capacities; capital and exploration expenditures; and share purchase levels, could differ materially due to factors including: our ability to integrate the businesses of XTO and ExxonMobil effectively; changes in long-term oil or gas prices or other market or economic conditions affecting the oil and gas industry; unforeseen technical difficulties; 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" in the "investors" section of our website and in Item 1A of ExxonMobil's 2009 Form 10-K. We assume no duty to update these statements as of any future date. References to quantities of oil or natural gas may include amounts that we believe will ultimately be produced, but that are not yet classified as "proved reserves" under SEC definitions.
Frequently used terms
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. Reconciliation to net income attributable to ExxonMobil 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 "investors" section of our website at exxonmobil.com.
Reference to Earnings
References to total corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the income statement. Unless otherwise indicated, references to earnings, special items, earnings excluding special items, Upstream, Downstream, Chemical and Corporate and Financing segment earnings, and earnings per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.
Attachment I
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
(millions of dollars, unless noted)
Second Quarter First Half
2010 2009 2010 2009
Earnings / Earnings Per Share
Total revenues and other income 92,486 74,457 182,737 138,485
Total costs and other deductions 79,780 66,940 157,963 123,118
Income before income taxes 12,706 7,517 24,774 15,367
Income taxes 4,960 3,571 10,453 6,719
Net income including noncontrolling 7,746 3,946 14,321 8,648
interests
Net income attributable to noncontrolling 186 (4 ) 461 148
interests
Net income attributable to ExxonMobil (U.S. 7,560 3,950 13,860 8,500
GAAP)
Earnings per common share (dollars) 1.61 0.82 2.94 1.74
Earnings per common share
- assuming dilution (dollars) 1.60 0.81 2.93 1.73
Other Financial Data
Dividends on common stock
Total 2,066 2,039 4,052 4,020
Per common share (dollars) 0.44 0.42 0.86 0.82
Millions of common shares outstanding
At June 30 5,092 4,806
Average - assuming dilution 4,729 4,871 4,733 4,916
ExxonMobil share of equity at June 30 140,172 106,592
ExxonMobil share of capital employed at June 30 164,318 119,645
Income taxes 4,960 3,571 10,453 6,719
Sales-based taxes 6,946 6,216 13,761 12,122
All other taxes 9,244 9,124 18,593 17,713
Total taxes 21,150 18,911 42,807 36,554
ExxonMobil share of income taxes of
equity companies 834 413 1,810 1,101
Attachment II
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
(millions of dollars)
Second Quarter First Half
2010 2009 2010 2009
Earnings (U.S. GAAP)
Upstream
United States 865 813 1,956 1,173
Non-U.S. 4,471 2,999 9,194 6,142
Downstream
United States 440 (15 ) 380 337
Non-U.S. 780 527 877 1,308
Chemical
United States 685 79 1,224 162
Non-U.S. 683 288 1,393 555
Corporate and financing (364 ) (741 ) (1,164 ) (1,177 )
Net income attributable to ExxonMobil 7,560 3,950 13,860 8,500
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 (140 ) 0 (140 )
Corporate total 0 (140 ) 0 (140 )
Earnings Excluding Special Items
Upstream
United States 865 813 1,956 1,173
Non-U.S. 4,471 2,999 9,194 6,142
Downstream
United States 440 (15 ) 380 337
Non-U.S. 780 527 877 1,308
Chemical
United States 685 79 1,224 162
Non-U.S. 683 288 1,393 555
Corporate and financing (364 ) (601 ) (1,164 ) (1,037 )
Corporate total 7,560 4,090 13,860 8,640
Cash flow from operations and asset sales
(billions of dollars)
Net cash provided by operating activities 9.1 2.2 22.2 11.1
(U.S. GAAP)
Sales of subsidiaries, investments and 0.5 0.8 0.9 0.9
property, plant and equipment
Cash flow from operations and asset sales 9.6 3.0 23.1 12.0
Attachment III
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
Second Quarter First Half
2010 2009 2010 2009
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 357 380 373 389
Canada/South America 267 242 266 274
Europe 348 383 356 397
Africa 599 702 632 709
Asia Pacific/Middle East 573 462 557 464
Russia/Caspian 181 177 186 178
Worldwide 2,325 2,346 2,370 2,411
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 1,412 1,267 1,374 1,255
Canada/South America 594 649 580 643
Europe 3,268 2,869 4,198 3,909
Africa 20 23 16 24
Asia Pacific/Middle East 4,552 3,107 4,495 3,137
Russia/Caspian 179 126 189 140
Worldwide 10,025 8,041 10,852 9,108
Oil-equivalent production (koebd)1 3,996 3,686 4,179 3,929
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand
barrels
Attachment IV
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
Second Quarter First Half
2010 2009 2010 2009
Refinery throughput (kbd)
United States 1,807 1,765 1,764 1,785
Canada 418 365 428 412
Europe 1,570 1,560 1,550 1,539
Asia Pacific 1,143 1,306 1,192 1,306
Other 254 294 240 293
Worldwide 5,192 5,290 5,174 5,335
Petroleum product sales (kbd)
United States 2,521 2,538 2,452 2,557
Canada 435 403 433 410
Europe 1,612 1,671 1,610 1,619
Asia Pacific 1,183 1,346 1,204 1,345
Other 490 529 494 530
Worldwide 6,241 6,487 6,193 6,461
Gasolines, naphthas 2,565 2,617 2,550 2,537
Heating oils, kerosene, diesel 1,887 1,991 1,874 2,089
Aviation fuels 455 544 453 535
Heavy fuels 581 567 605 581
Specialty products 753 768 711 719
Worldwide 6,241 6,487 6,193 6,461
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,449 2,519 4,973 4,562
Non-U.S. 4,047 3,748 8,011 7,232
Worldwide 6,496 6,267 12,984 11,794
Attachment V
EXXON MOBIL CORPORATION
SECOND QUARTER 2010
(millions of dollars)
Second Quarter First Half
2010 2009 2010 2009
Capital and Exploration Expenditures
Upstream
United States 772 941 1,544 1,744
Non-U.S. 4,570 3,964 9,344 7,527
Total 5,342 4,905 10,888 9,271
Downstream
United States 264 407 611 760
Non-U.S. 320 410 647 703
Total 584 817 1,258 1,463
Chemical
United States 66 94 134 171
Non-U.S. 492 736 1,038 1,417
Total 558 830 1,172 1,588
Other 35 10 78 14
Worldwide 6,519 6,562 13,396 12,336
Exploration expenses charged to income
included above
Consolidated affiliates
United States 45 53 100 95
Non-U.S. 361 437 991 744
Equity companies - ExxonMobil share
United States 1 0 2 0
Non-U.S. 8 1 11 2
Worldwide 415 491 1,104 841
Attachment VI
EXXON MOBIL CORPORATION
EARNINGS
$ Millions $ Per Common Share1,2
2006
First Quarter 8,400 1.38
Second Quarter 10,360 1.72
Third Quarter 10,490 1.77
Fourth Quarter 10,250 1.77
Year 39,500 6.64
2007
First Quarter 9,280 1.63
Second Quarter 10,260 1.83
Third Quarter 9,410 1.71
Fourth Quarter 11,660 2.14
Year 40,610 7.31
2008
First Quarter 10,890 2.03
Second Quarter 11,680 2.24
Third Quarter 14,830 2.86
Fourth Quarter 7,820 1.55
Year 45,220 8.70
2009
First Quarter 4,550 0.92
Second Quarter 3,950 0.82
Third Quarter 4,730 0.98
Fourth Quarter 6,050 1.27
Year 19,280 3.99
2010
First Quarter 6,300 1.33
Second Quarter 7,560 1.61
1 Computed using the average number of shares outstanding during each
period.
The sum of the four quarters may not add to the full year.
2 For periods prior to 2009, earnings per share (EPS) numbers have been
adjusted retrospectively
on a consistent basis with 2009 reporting when new authoritative guidance on
EPS was adopted.
Source: Exxon Mobil Corporation
Released July 29, 2010