Exxon Mobil Corporation Announces Estimated Record 2006 Results
IRVING, Texas--(BUSINESS WIRE)--
Exxon Mobil Corporation (NYSE:XOM):
Fourth Quarter Twelve Months
--------------- ---------------
2006 2005 % 2006 2005 %
------- ------- --- ------- ------- ---
Net Income
-------------------------------
$ Millions 10,250 10,710 -4 39,500 36,130 9
$ Per Common Share
Assuming Dilution 1.76 1.71 3 6.62 5.71 16
Special Items
-------------------------------
$ Millions 410 390 410 2,270
Earnings Excluding Special
Items
-------------------------------
$ Millions 9,840 10,320 -5 39,090 33,860 15
$ Per Common Share
Assuming Dilution 1.69 1.65 2 6.55 5.35 22
Capital and Exploration
Expenditures - $ Millions 5,069 5,331 19,855 17,699
EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:
"Full year 2006 earnings excluding special items were a record $39,090 million driven by strong results in every business segment.
"ExxonMobil continued to leverage its globally diverse resource base to bring additional crude oil and natural gas to market. In 2006, spending on capital and exploration projects was $19.9 billion, an increase of 12% over 2005. The results of our long-term investment program yielded an additional 172 thousand oil-equivalent barrels per day of production, a 4% increase over 2005.
"The Corporation distributed a total of $32.6 billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of 41% or $9.4 billion versus 2005.
"ExxonMobil's fourth quarter earnings excluding special items were $9,840 million, down 5% from fourth quarter 2005. Lower natural gas realizations and refining margins were partly offset by higher crude oil realizations and improved chemical margins. Net income for the fourth quarter was down 4% from 2005."
FOURTH QUARTER HIGHLIGHTS
-- Earnings excluding special items were $9,840 million, a
decrease of 5% or $480 million from the fourth quarter of
2005.
-- Net income of $10,250 million was down 4% and includes a
special tax-related benefit of $410 million. Fourth quarter
2005 net income included a special litigation gain of
$390 million.
-- Spending on capital and exploration projects was $5.1 billion,
a decrease of 5% versus 2005.
-- Excluding entitlement and divestment impacts, liquids
production increased by 6%.
-- Cash flow from operations and asset sales was approximately
$9.6 billion, including asset sales of $0.8 billion and $2.4
billion in contributions to the U.S. pension plan.
-- Earnings per share excluding special items were $1.69,
an increase of 2%, reflecting strong earnings and the
continuing reduction in the number of shares outstanding.
-- Production commenced from the Dalia field in Angola. Dalia is
estimated to contain nearly 1 billion barrels (gross) of
recoverable reserves and is expected to reach peak production
of about 225 kbd (gross) in the first quarter of 2007.
-- Early production of LNG began at Train 5 in the RasGas Joint
Venture in Qatar. Initial operations started up only 29 months
after the contract award. Completion of the offshore
facilities that will supply natural gas to Train 5 on a
long-term basis is anticipated by the end of the first quarter
2007. Train 5 is designed to produce 4.7 million tons per year
of LNG for anticipated delivery to markets in Asia and Europe.
Fourth Quarter 2006 vs. Fourth Quarter 2005
Upstream earnings were $6,220 million, down $818 million from the fourth quarter of 2005 primarily reflecting lower natural gas realizations and decreased volumes driven by lower European demand.
On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2005. Excluding the impact of divestments and entitlements, production increased 2%.
Liquids production of 2,678 kbd (thousands of barrels per day) was 49 kbd higher. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, and the impact of entitlements and divestments. Excluding entitlement and divestment effects, liquids production increased by 6%.
Fourth quarter natural gas production was 9,301 mcfd (millions of cubic feet per day) compared with 9,822 mcfd last year. Lower European demand and the impact of mature field decline were partly offset by higher volumes from projects in Qatar and the absence of 2005 hurricane effects.
Earnings from U.S. Upstream operations were $1,052 million, $735 million lower than the fourth quarter of 2005. Non-U.S. Upstream earnings excluding special items were $5,168 million, down $83 million from 2005.
Downstream earnings were $1,960 million, down $430 million from the fourth quarter 2005, as lower refining and marketing margins more than offset the earnings benefit related to our continuing efforts to efficiently manage inventories. Petroleum product sales were 7,447 kbd, 145 kbd lower than last year's fourth quarter, primarily due to divestments.
U.S. Downstream earnings were $945 million, down $213 million. Non-U.S. Downstream earnings of $1,015 million were $217 million lower than the fourth quarter of 2005.
Chemical earnings excluding special items were $1,242 million, up $407 million from the fourth quarter of 2005 due to improved margins and higher volumes. Prime product sales of 6,827 kt (thousands of metric tons) in the fourth quarter of 2006 were up 535 kt from the prior year.
Corporate and financing earnings excluding special items were $418 million, up $361 million, mainly due to tax items.
During the fourth quarter of 2006, Exxon Mobil Corporation purchased 115 million shares of its common stock for the treasury at a gross cost of $8.4 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 5,832 million at the end of the third quarter to 5,729 million at the end of the fourth 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.
Full Year 2006 vs. Full Year 2005
Net income of $39,500 million ($6.62 per share) was a record and increased $3,370 million from 2005. Net income for 2006 included a special item of $410 million for a tax-related benefit. Net income for 2005 included special items totaling a gain of $2,270 million. Excluding these impacts, earnings for 2006 increased by $5,230 million.
FULL YEAR HIGHLIGHTS
-- Earnings excluding special items were a record
$39,090 million, an increase of 15% reflecting ExxonMobil's
continuing strong performance across all business segments.
-- Earnings per share excluding special items increased by 22%
due to strong earnings and the continuing reduction in the
number of shares outstanding.
-- Net income was up 9%. Net income for 2006 included a special
gain of $410 million for a tax-related benefit. Net income for
2005 included a $1,620 million special gain related to the
restructuring of the Corporation's interest in the Dutch gas
transportation business, a $460 million positive impact from
the sale of the Corporation's interest in Sinopec, a
$390 million litigation gain and a $200 million litigation
charge.
-- Cash flow from operations and asset sales was approximately
$52.4 billion, including $3.1 billion from asset sales.
-- The Corporation distributed a total of $32.6 billion to
shareholders in 2006 through dividends and share purchases to
reduce shares outstanding, an increase of $9.4 billion versus
2005.
-- Capital and exploration expenditures were $19.9 billion, an
increase of $2.2 billion versus 2005.
-- Liquids production increased 10% excluding divestment and
entitlement impacts.
Upstream earnings excluding special items were $26,230 million, an increase of $3,501 million from 2005. Higher liquids and natural gas realizations were partly offset by higher operating expenses.
On an oil-equivalent basis, production increased 4% from last year. Excluding divestment and entitlement effects, production increased by 7%.
Liquids production of 2,681 kbd increased by 158 kbd from 2005. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, entitlement effects and divestment impacts. Excluding entitlement effects and divestments, liquids production increased 10%.
Natural gas production of 9,334 mcfd, increased 83 mcfd from 2005. Higher volumes from projects in Qatar were partly offset by mature field decline.
Earnings from U.S. Upstream operations for 2006 were $5,168 million, a decrease of $1,032 million. Earnings outside the U.S., excluding special items, were $21,062 million, $4,533 million higher than 2005.
Downstream earnings excluding special items were $8,454 million, an increase of $572 million from 2005 reflecting stronger worldwide refining margins and marketing margins, partly offset by lower refining throughput. Petroleum product sales of 7,247 kbd decreased from 7,519 kbd in 2005, primarily due to lower refining throughput and divestments.
U.S. Downstream earnings excluding special items were $4,250 million, up $139 million. Non-U.S. Downstream earnings excluding special items were $4,204 million, $433 million higher than last year.
Chemical earnings excluding special items were $4,382 million, up $979 million from 2005. Margins and volumes were both higher. Prime product sales were 27,350 kt, up 573 kt from 2005.
Corporate and financing earnings excluding special items were $24 million, an increase of $178 million, mainly due to higher interest income.
Gross share purchases in 2006 were $29.6 billion which reduced shares outstanding by 6.6%.
Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in either millions or billions of dollars.
ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. Central time on February 1, 2007. To listen to the event live or in archive, go to our website at "www.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 2005 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 28 and 29 in the 2005 Form 10-K and is also available through the Investor Information section of our website at "www.exxonmobil.com."
Attachment I
EXXON MOBIL CORPORATION
FOURTH QUARTER 2006
---------------------------------------------------------------------
(millions of dollars, unless noted)
Fourth Quarter Twelve Months
--------------- -----------------
2006 2005 2006 2005
------- ------- -------- --------
Earnings / Earnings Per Share
Total revenues and other
income(1) 90,028 99,344 377,635 370,680
Total costs and other
deductions(1) 74,467 81,626 310,233 311,248
Income before income taxes 15,561 17,718 67,402 59,432
Income taxes 5,311 7,008 27,902 23,302
Net income (U.S. GAAP) 10,250 10,710 39,500 36,130
Net income per common share
(dollars) 1.77 1.72 6.68 5.76
Net income per common share -
assuming dilution (dollars) 1.76 1.71 6.62 5.71
Other Financial Data
Dividends on common stock
Total 1,853 1,795 7,628 7,185
Per common share (dollars) 0.32 0.29 1.28 1.14
Millions of common shares
outstanding
At December 31 5,729 6,133
Average - assuming dilution 5,816 6,211 5,970 6,322
Shareholders' equity at December
31 113,844 111,186
Capital employed at December 31 123,855 121,291
Income taxes 5,311 7,008 27,902 23,302
Sales-based taxes 6,742 7,829 30,381 30,742
All other taxes 10,820 10,871 42,393 44,571
Total taxes 22,873 25,708 100,676 98,615
ExxonMobil's share of income
taxes of equity companies 609 466 1,920 2,226
(1)Fourth quarter 2005 included $7,704 million and twelve months of
2005 included $30,810 million for purchases/sales contracts with the
same counterparty. These transactions are reported on a net basis in
2006.
Attachment II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2006
---------------------------------------------------------------------
(millions of dollars)
Fourth Quarter Twelve Months
--------------- ---------------
2006 2005 2006 2005
------- ------- ------- -------
Net Income (U.S. GAAP)
Upstream
United States 1,052 1,787 5,168 6,200
Non-U.S. 5,168 5,251 21,062 18,149
Downstream
United States 945 1,158 4,250 3,911
Non-U.S. 1,015 1,232 4,204 4,081
Chemical
United States 384 281 1,360 1,186
Non-U.S. 858 944 3,022 2,757
Corporate and financing 828 57 434 (154)
Corporate total 10,250 10,710 39,500 36,130
Special Items
Upstream
United States 0 0 0 0
Non-U.S. 0 0 0 1,620
Downstream
United States 0 0 0 (200)
Non-U.S. 0 0 0 310
Chemical
United States 0 0 0 0
Non-U.S. 0 390 0 540
Corporate and financing 410 0 410 0
Corporate total 410 390 410 2,270
Earnings Excluding Special Items
Upstream
United States 1,052 1,787 5,168 6,200
Non-U.S. 5,168 5,251 21,062 16,529
Downstream
United States 945 1,158 4,250 4,111
Non-U.S. 1,015 1,232 4,204 3,771
Chemical
United States 384 281 1,360 1,186
Non-U.S. 858 554 3,022 2,217
Corporate and financing 418 57 24 (154)
Corporate total 9,840 10,320 39,090 33,860
------- ------- ------- -------
Cash flow from operations and asset
sales (billions of dollars)
Net cash provided by operating
activities (U.S. GAAP) 8.8 10.5 49.3 48.2
Sales of subsidiaries, investments and
property, plant and equipment 0.8 1.4 3.1 6.0
Cash flow from operations and asset
sales 9.6 11.9 52.4 54.2
Attachment III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2006
---------------------------------------------------------------------
Fourth Quarter Twelve Months
-------------- --------------
2006 2005 2006 2005
------- ------ ------- ------
Net production of crude oil and natural
gas liquids, thousands of barrels daily
(kbd)
United States 404 431 414 477
Canada 316 356 312 346
Europe 516 539 520 546
Africa 772 795 781 666
Asia Pacific/Middle East 487 330 485 331
Russia/Caspian 144 131 127 107
Other 39 47 42 50
Worldwide 2,678 2,629 2,681 2,523
Natural gas production available for
sale, millions of cubic feet daily
(mcfd)
United States 1,588 1,620 1,625 1,739
Canada 818 912 851 918
Europe 4,108 4,804 4,086 4,315
Asia Pacific/Middle East 2,601 2,303 2,596 2,114
Russia/Caspian 110 98 92 77
Other 76 85 84 88
Worldwide 9,301 9,822 9,334 9,251
Oil-equivalent production (koebd)(1) 4,228 4,266 4,237 4,065
(1)Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
Attachment IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2006
---------------------------------------------------------------------
Fourth Quarter Twelve Months
-------------- ---------------
2006 2005 2006 2005
------- ------ ------- -------
Petroleum product sales (kbd)(1)
United States 2,851 2,816 2,729 2,822
Canada 483 517 473 498
Europe 1,779 1,863 1,813 1,824
Asia Pacific 1,530 1,613 1,461 1,561
Other 804 783 771 814
Worldwide 7,447 7,592 7,247 7,519
Gasolines, naphthas 2,952 2,969 2,866 2,957
Heating oils, kerosene, diesel 2,303 2,290 2,191 2,230
Aviation fuels 652 626 651 676
Heavy fuels 677 732 682 689
Specialty products 863 975 857 967
Total 7,447 7,592 7,247 7,519
Refinery throughput (kbd)
United States 1,837 1,669 1,760 1,794
Canada 456 479 442 466
Europe 1,616 1,717 1,672 1,672
Asia Pacific 1,474 1,484 1,434 1,490
Other 315 303 295 301
Worldwide 5,698 5,652 5,603 5,723
Chemical prime product sales, thousands
of metric tons (kt)
United States 2,775 2,228 10,703 10,369
Non-U.S. 4,052 4,064 16,647 16,408
Worldwide 6,827 6,292 27,350 26,777
(1)Petroleum product sales data is reported net of purchases/sales
contracts with the same counterparty.
Attachment V
EXXON MOBIL CORPORATION
FOURTH QUARTER 2006
---------------------------------------------------------------------
(millions of dollars)
Fourth Quarter Twelve Months
-------------- ---------------
2006 2005 2006 2005
------- ------ ------- -------
Capital and Exploration Expenditures
Upstream
United States 713 542 2,486 2,142
Non-U.S. 3,357 3,852 13,745 12,328
Total 4,070 4,394 16,231 14,470
Downstream
United States 197 213 824 753
Non-U.S. 551 535 1,905 1,742
Total 748 748 2,729 2,495
Chemical
United States 78 61 280 243
Non-U.S. 153 108 476 411
Total 231 169 756 654
Other 20 20 139 80
Worldwide 5,069 5,331 19,855 17,699
Exploration expenses charged to income
included above
Consolidated affiliates
United States 59 54 243 157
Non-U.S. 314 278 925 795
Equity companies - ExxonMobil share
United States 2 0 2 0
Non-U.S. 4 0 9 17
Worldwide 379 332 1,179 969
Attachment VI
EXXON MOBIL CORPORATION
NET INCOME
---------------------------------------------------------------------
$ Millions $ Per Common Share
------------------- ------------------
2002
-------------------------------
First Quarter 2,090 0.30
Second Quarter 2,640 0.40
Third Quarter 2,640 0.39
Fourth Quarter 4,090 0.60
Year 11,460 1.69
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
Source: Exxon Mobil Corporation
Released February 1, 2007