Exxon Mobil Corporation Announces Estimated First Quarter 2007 Results
IRVING, Texas--(BUSINESS WIRE)--
Exxon Mobil Corporation (NYSE:XOM):
First Quarter
---------------------
2007 2006 %
----------- --------- -----
Net Income
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$ Millions 9,280 8,400 10
$ Per Common Share
Assuming Dilution 1.62 1.37 18
Special Items
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$ Millions 0 0
Earnings Excluding Special Items
-------------------------------------------
$ Millions 9,280 8,400 10
$ Per Common Share
Assuming Dilution 1.62 1.37 18
Capital and Exploration
Expenditures - $ Millions 4,275 4,824
EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:
"ExxonMobil's first quarter net income was $9,280 million, up 10% from the first quarter of 2006. Higher refining, marketing and chemical margins were partly offset by a decrease in crude oil and natural gas realizations.
"In the first quarter, ExxonMobil continued to actively invest, bringing additional crude oil, finished products and natural gas to market. Spending on capital and exploration projects totaled $4.3 billion in the first quarter.
"The Corporation distributed a total of $8.8 billion to shareholders in the first quarter through dividends of $1.8 billion and share purchases to reduce shares outstanding of $7.0 billion, an increase of 26% versus the first quarter of 2006."
FIRST QUARTER HIGHLIGHTS
-- Net income was $9,280 million, an increase of 10% or
$880 million from the first quarter of 2006.
-- Spending on capital and exploration projects was $4.3 billion.
-- Excluding cumulative entitlement and divestment impacts, as
well as OPEC quota effects, liquids production increased
by 7%.
-- Cash flow from operations and asset sales was approximately
$14.8 billion, including asset sales of $0.5 billion.
-- Earnings per share excluding special items were $1.62,
an increase of 18%, reflecting strong earnings and the
benefits of the share repurchase program.
-- Share purchases of $7.0 billion reduced shares outstanding by
1.7%.
-- ExxonMobil signed contracts for the Fujian Refining and
Ethylene Joint Venture Project and the Fujian Fuels Marketing
Joint Venture Project. The two joint ventures, with a total
investment of about $5 billion, are the first fully integrated
refining, petrochemicals and fuels marketing projects with
foreign participation in China.
First Quarter 2007 vs. First Quarter 2006
Upstream earnings were $6,041 million, down $342 million from the first quarter of 2006 primarily reflecting lower realizations and decreased natural gas volumes driven by lower European demand.
On an oil-equivalent basis, production decreased by 3% from the first quarter of 2006. Excluding the cumulative impact of entitlements and divestments, as well as OPEC quota effects, production was up almost 1%.
Liquids production of 2,747 kbd (thousands of barrels per day) was 49 kbd higher. Increased production from projects in West Africa, Russia and the Middle East were partly offset by mature field decline and the cumulative impact of entitlements and divestments. Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, liquids production increased by 7%.
First quarter natural gas production was 10,131 mcfd (millions of cubic feet per day) compared with 11,175 mcfd last year. The impact of mature field decline and the reduction of European demand by about 1,400 mcfd due to weather were partly offset by higher volumes from projects in Qatar.
Earnings from U.S. Upstream operations were $1,177 million, $103 million lower than the first quarter of 2006. Non-U.S. Upstream earnings were $4,864 million, down $239 million from 2006.
Downstream earnings were $1,912 million, up $641 million from the first quarter 2006, driven by higher refining and marketing margins and improved refinery throughput. Petroleum product sales were 7,198 kbd, 21 kbd higher than last year's first quarter.
U.S. Downstream earnings were $839 million, up $160 million from the first quarter of 2006. Non-U.S. Downstream earnings of $1,073 million were $481 million higher.
Chemical earnings were $1,236 million, up $287 million from the first quarter of 2006 due to improved margins. Prime product sales of 6,805 kt (thousands of metric tons) in the first quarter of 2007 were down 111 kt from the prior year.
Corporate and financing earnings were $91 million, up $294 million, mainly due to tax items.
During the first quarter of 2007, Exxon Mobil Corporation (NYSE:XOM) purchased 108 million shares of its common stock for the treasury at a gross cost of $8.0 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 5,729 million at the end of the fourth quarter to 5,633 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 April 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
FIRST QUARTER 2007
----------------------------------------------------------------------
(millions of dollars, unless noted)
First Quarter
-----------------
2007 2006
-------- --------
Earnings / Earnings Per Share
Total revenues and other income 87,223 88,980
Total costs and other deductions 71,159 73,521
Income before income taxes 16,064 15,459
Income taxes 6,784 7,059
Net income (U.S. GAAP) 9,280 8,400
Net income per common share (dollars) 1.64 1.38
Net income per common share
- assuming dilution (dollars) 1.62 1.37
Other Financial Data
Dividends on common stock
Total 1,825 1,957
Per common share (dollars) 0.32 0.32
Millions of common shares outstanding
At March 31 5,633 6,050
Average - assuming dilution 5,714 6,126
Shareholders' equity at March 31 114,110 112,463
Capital employed at March 31 124,266 122,286
Income taxes 6,784 7,059
Sales-based taxes 7,284 7,664
All other taxes 10,408 9,747
Total taxes 24,476 24,470
ExxonMobil's share of income taxes of equity
companies 573 521
Attachment II
EXXON MOBIL CORPORATION
FIRST QUARTER 2007
----------------------------------------------------------------------
(millions of dollars)
First Quarter
-------------
2007 2006
------ ------
Net Income (U.S. GAAP)
Upstream
United States 1,177 1,280
Non-U.S. 4,864 5,103
Downstream
United States 839 679
Non-U.S. 1,073 592
Chemical
United States 346 329
Non-U.S. 890 620
Corporate and financing 91 (203)
Corporate total 9,280 8,400
Special Items
Upstream
United States 0 0
Non-U.S. 0 0
Downstream
United States 0 0
Non-U.S. 0 0
Chemical
United States 0 0
Non-U.S. 0 0
Corporate and financing 0 0
Corporate total 0 0
Earnings Excluding Special Items
Upstream
United States 1,177 1,280
Non-U.S. 4,864 5,103
Downstream
United States 839 679
Non-U.S. 1,073 592
Chemical
United States 346 329
Non-U.S. 890 620
Corporate and financing 91 (203)
Corporate total 9,280 8,400
-------------------------------------------------------- ------ ------
Cash flow from operations and asset sales (billions of
dollars)
Net cash provided by operating activities (U.S. GAAP) 14.3 14.6
Sales of subsidiaries, investments and property, plant
and equipment 0.5 0.4
Cash flow from operations and asset sales 14.8 15.0
Attachment III
EXXON MOBIL CORPORATION
FIRST QUARTER 2007
----------------------------------------------------------------------
First Quarter
---------------
2007 2006
------- -------
Net production of crude oil and natural gas liquids,
thousands of barrels daily (kbd)
United States 417 442
Canada 297 332
Europe 523 563
Africa 782 741
Asia Pacific/Middle East 508 467
Russia/Caspian 186 114
Other 34 39
Worldwide 2,747 2,698
Natural gas production available for sale, millions of
cubic feet daily (mcfd)
United States 1,529 1,690
Canada 774 882
Europe 4,611 5,970
Asia Pacific/Middle East 2,998 2,462
Russia/Caspian 116 82
Other 103 89
Worldwide 10,131 11,175
Oil-equivalent production (koebd)(1) 4,436 4,560
(1)Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
Attachment IV
EXXON MOBIL CORPORATION
FIRST QUARTER 2007
----------------------------------------------------------------------
First Quarter
-------------
2007 2006
------ ------
Refinery throughput (kbd)
United States 1,798 1,716
Canada 441 486
Europe 1,641 1,645
Asia Pacific 1,504 1,465
Other 321 236
Worldwide 5,705 5,548
Petroleum product sales (kbd)(1)
United States 2,774 2,651
Canada 449 484
Europe 1,812 1,797
Asia Pacific 1,428 1,527
Other 735 718
Worldwide 7,198 7,177
Gasolines, naphthas 2,858 2,735
Heating oils, kerosene, diesel 2,220 2,244
Aviation fuels 633 634
Heavy fuels 701 685
Specialty products 786 879
Worldwide 7,198 7,177
Chemical prime product sales, thousands of metric tons
(kt)
United States 2,731 2,620
Non-U.S. 4,074 4,296
Worldwide 6,805 6,916
(1) Petroleum product sales data is reported net of purchases/sales
contracts with the same counterparty.
Attachment V
EXXON MOBIL CORPORATION
FIRST QUARTER 2007
----------------------------------------------------------------------
(millions of dollars)
First Quarter
-------------
2007 2006
------ ------
Capital and Exploration Expenditures
Upstream
United States 466 548
Non-U.S. 3,003 3,539
Total 3,469 4,087
Downstream
United States 212 162
Non-U.S. 319 419
Total 531 581
Chemical
United States 84 63
Non-U.S. 188 81
Total 272 144
Other 3 12
Worldwide 4,275 4,824
Exploration expenses charged to income included above
Consolidated affiliates
United States 89 63
Non-U.S. 179 214
Equity companies - ExxonMobil share
United States 1 0
Non-U.S. 2 3
Worldwide 271 280
Attachment VI
EXXON MOBIL CORPORATION
NET INCOME
----------------------------------------------------------------------
$ Per Common
$ Millions Share
-------------- ------------
2003
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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
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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
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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
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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
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First Quarter 9,280 1.64
Source: Exxon Mobil Corporation
Released April 26, 2007