Exxon Mobil Corporation Announces Estimated Second Quarter 2011 Results
IRVING, Texas--(BUSINESS WIRE)-- Exxon Mobil Corporation (NYSE:XOM):
Second Quarter First Half
2011 2010 % 2011 2010 %
Earnings Excluding Special Items1
$ Millions 10,680 7,560 41 21,330 13,860 54
$ Per Common Share
Assuming Dilution 2.18 1.60 36 4.32 2.93 47
Special Items
$ Millions 0 0 0 0
Earnings
$ Millions 10,680 7,560 41 21,330 13,860 54
$ Per Common Share
Assuming Dilution 2.18 1.60 36 4.32 2.93 47
Capital and Exploration
Expenditures - $ Millions 10,306 6,519 58 18,127 13,396 35
1See Reference to Earnings
EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:
"ExxonMobil recorded strong results during the second quarter of 2011, while investing at a record level of over $10 billion to develop new supplies of energy to meet growing world demand.
"Second quarter earnings of $10.7 billion were up 41% from the second quarter of 2010, reflecting higher crude oil and natural gas realizations, improved Downstream results and continued strength in Chemicals. First half 2011 earnings of $21.3 billion increased 54% over the first half of 2010.
"In the second quarter, capital and exploration expenditures were a record $10.3 billion, up 58% from the second quarter of 2010.
"Oil-equivalent production increased by 10% over the second quarter of 2010, driven by our world-class assets in Qatar and our growing unconventional gas portfolio.
"The Corporation returned over $7 billion to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding."
SECOND QUARTER HIGHLIGHTS
-- Earnings were $10,680 million, an increase of 41% or $3,120 million from
the second quarter of 2010.
-- Earnings per share were $2.18, an increase of 36%.
-- Capital and exploration expenditures were a record $10.3 billion, up 58%
from the second quarter of 2010.
-- Oil-equivalent production increased 10% from the second quarter of 2010.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, production was up over 12%.
-- Cash flow from operations and asset sales was $14.4 billion, including
asset sales of $1.5 billion.
-- Share purchases to reduce shares outstanding were $5 billion.
-- Dividends per share of $0.47 increased by 7% compared to the second
quarter of 2010.
-- Announced two major oil discoveries and a gas discovery in the deepwater
Gulf of Mexico after drilling the company's first post-moratorium
deepwater exploration well.
-- Concluded the acquisitions of two Phillips companies, nearly doubling
our Marcellus acreage footprint to more than 700,000 net acres.
Second Quarter 2011 vs. Second Quarter 2010
Upstream earnings were $8,541 million, up $3,205 million from the second quarter of 2010. Higher liquids and natural gas realizations increased earnings by $3.6 billion. Production mix and volume effects decreased earnings by $480 million.
On an oil-equivalent basis, production increased 10% from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 12%.
Liquids production totaled 2,351 kbd (thousands of barrels per day), up 26 kbd from the second quarter of 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 4%, as increased production in Qatar, the U.S. and Iraq more than offset field decline.
Second quarter natural gas production was 12,267 mcfd (millions of cubic feet per day), up 2,242 mcfd from the second quarter of 2010, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.
Earnings from U.S. Upstream operations were $1,449 million, $584 million higher than the second quarter of 2010. Non-U.S. Upstream earnings were $7,092 million, up $2,621 million from last year.
Downstream earnings of $1,356 million were up $136 million from the second quarter of 2010. Margins increased earnings by $60 million. Positive volume and mix effects increased earnings by $150 million, while all other items decreased earnings by $70 million. Petroleum product sales of 6,331 kbd were 27 kbd higher than last year's second quarter.
Earnings from the U.S. Downstream were $734 million, up $294 million from the second quarter of 2010. Non-U.S. Downstream earnings of $622 million were $158 million lower than last year.
Chemical earnings of $1,321 million were $47 million lower than the second quarter of 2010. Improved margins increased earnings by $120 million, while lower sales volumes decreased earnings by $90 million. Other items, mainly unfavorable tax effects, decreased earnings by $80 million. Second quarter prime product sales of 6,181 kt (thousands of metric tons) were 315 kt lower than last year's second quarter.
Corporate and financing expenses were $538 million, up $174 million from the second quarter of 2010 due to the absence of favorable 2010 tax items.
During the second quarter of 2011, Exxon Mobil Corporation purchased 67 million shares of its common stock for the treasury at a gross cost of $5.5 billion. These purchases included $5 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. Share purchases to reduce shares outstanding are currently anticipated to equal $5 billion in the third quarter of 2011. 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 2011 vs. First Half 2010
Earnings of $21,330 million increased $7,470 million from 2010. Earnings per share increased 47% to $4.32.
FIRST HALF HIGHLIGHTS
-- Earnings were $21,330 million, up 54%.
-- Earnings per share increased 47% to $4.32.
-- Oil-equivalent production was up 10% from 2010. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, production was
up 12%.
-- Cash flow from operations and asset sales was $32.6 billion, including
asset sales of $2.8 billion.
-- The Corporation distributed over $14 billion to shareholders in the
first half of 2011 through dividends and share purchases to reduce
shares outstanding.
-- Capital and exploration expenditures were a record $18.1 billion, up 35%
from the first half of 2010.
Upstream earnings were $17,216 million, up $6,066 million from 2010. Higher crude oil and natural gas realizations increased earnings by $6.2 billion. Production mix and volume effects decreased earnings by $710 million, while all other items, mainly gains from asset sales, increased earnings by $600 million.
On an oil-equivalent basis, production was up 10% compared to the same period in 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 12%.
Liquids production of 2,375 kbd increased 5 kbd compared with 2010. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 3%, as higher volumes from Qatar and the U.S. more than offset field decline.
Natural gas production of 13,390 mcfd increased 2,538 mcfd from 2010, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.
Earnings from U.S. Upstream operations for 2011 were $2,728 million, an increase of $772 million. Earnings outside the U.S. were $14,488 million, up $5,294 million.
Downstream earnings of $2,455 million increased $1,198 million from 2010. Margins increased earnings by $510 million. Positive volume and mix effects increased earnings by $520 million, while all other items, mainly favorable foreign exchange effects, increased earnings by $170 million. Petroleum product sales of 6,299 kbd increased 49 kbd from 2010.
U.S. Downstream earnings were $1,428 million, up $1,048 million from 2010. Non-U.S. Downstream earnings were $1,027 million, $150 million higher than last year.
Chemical earnings of $2,837 million were $220 million higher than 2010. Stronger margins increased earnings by $470 million, while lower volumes decreased earnings by $60 million. Other items, including unfavorable tax effects and higher maintenance expenses, decreased earnings by $190 million. Prime product sales of 12,503 kt were down 481 kt from 2010.
Corporate and financing expenses were $1,178 million, up $14 million from 2010.
Gross share purchases through the first half of 2011 were $11.2 billion, reducing shares outstanding by 136 million shares.
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 28, 2011. To listen to the event live or in archive, go to our website at exxonmobil.com.
Cautionary statement
Statements relating to future plans, projections, events or conditions are forward-looking statements. Actual results, including project plans, costs, timing, and capacities; capital and exploration expenditures; and share purchase levels, could differ materially due to factors including: 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 2010 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 2011
(millions of dollars, unless noted)
Second Quarter First Half
2011 2010 2011 2010
Earnings / Earnings Per Share
Total revenues and other income 125,486 92,486 239,490 182,737
Total costs and other deductions 106,867 79,780 201,954 157,963
Income before income taxes 18,619 12,706 37,536 24,774
Income taxes 7,721 4,960 15,725 10,453
Net income including noncontrolling interests 10,898 7,746 21,811 14,321
Net income attributable to noncontrolling 218 186 481 461
interests
Net income attributable to ExxonMobil (U.S. 10,680 7,560 21,330 13,860
GAAP)
Earnings per common share (dollars) 2.19 1.61 4.33 2.94
Earnings per common share
- assuming dilution (dollars) 2.18 1.60 4.32 2.93
Other Financial Data
Dividends on common stock
Total 2,308 2,066 4,496 4,052
Per common share (dollars) 0.47 0.44 0.91 0.86
Millions of common shares outstanding
At June 30 4,862 5,092
Average - assuming dilution 4,912 4,729 4,941 4,733
ExxonMobil share of equity at June 30 155,551 140,172
ExxonMobil share of capital employed at June 175,822 164,318
30
Income taxes 7,721 4,960 15,725 10,453
Sales-based taxes 8,613 6,946 16,529 13,761
All other taxes 11,175 9,244 21,491 18,593
Total taxes 27,509 21,150 53,745 42,807
ExxonMobil share of income taxes of equity 1,376 834 2,889 1,810
companies
Attachment II
EXXON MOBIL CORPORATION
SECOND QUARTER 2011
(millions of dollars)
Second Quarter First Half
2011 2010 2011 2010
Earnings (U.S. GAAP)
Upstream
United States 1,449 865 2,728 1,956
Non-U.S. 7,092 4,471 14,488 9,194
Downstream
United States 734 440 1,428 380
Non-U.S. 622 780 1,027 877
Chemical
United States 625 685 1,294 1,224
Non-U.S. 696 683 1,543 1,393
Corporate and financing (538 ) (364 ) (1,178 ) (1,164 )
Net income attributable to ExxonMobil 10,680 7,560 21,330 13,860
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 1,449 865 2,728 1,956
Non-U.S. 7,092 4,471 14,488 9,194
Downstream
United States 734 440 1,428 380
Non-U.S. 622 780 1,027 877
Chemical
United States 625 685 1,294 1,224
Non-U.S. 696 683 1,543 1,393
Corporate and financing (538 ) (364 ) (1,178 ) (1,164 )
Corporate total 10,680 7,560 21,330 13,860
Cash flow from operations and asset sales(billions of
dollars)
Net cash provided by operating activities 12.9 9.3 29.8 22.3
(U.S. GAAP)
Sales of subsidiaries, investments and 1.5 0.4 2.8 0.8
property, plant and equipment
Cash flow from operations and asset sales 14.4 9.7 32.6 23.1
Attachment III
EXXON MOBIL CORPORATION
SECOND QUARTER 2011
Second Quarter First Half
2011 2010 2011 2010
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 429 357 428 373
Canada/South America 240 267 252 266
Europe 273 348 289 356
Africa 522 599 541 632
Asia 834 692 813 684
Australia/Oceania 53 62 52 59
Worldwide 2,351 2,325 2,375 2,370
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 3,842 1,412 3,873 1,374
Canada/South America 397 594 432 580
Europe 2,694 3,268 3,732 4,198
Africa 8 20 7 16
Asia 4,961 4,365 5,025 4,380
Australia/Oceania 365 366 321 304
Worldwide 12,267 10,025 13,390 10,852
Oil-equivalent production (koebd)1 4,396 3,996 4,607 4,179
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand
barrels
Attachment IV
EXXON MOBIL CORPORATION
SECOND QUARTER 2011
Second Quarter First Half
2011 2010 2011 2010
Refinery throughput (kbd)
United States 1,783 1,807 1,777 1,764
Canada 397 418 425 428
Europe 1,602 1,570 1,525 1,550
Asia Pacific 1,109 1,143 1,166 1,192
Other 302 254 294 240
Worldwide 5,193 5,192 5,187 5,174
Petroleum product sales (kbd)
United States 2,488 2,521 2,482 2,452
Canada 441 435 444 433
Europe 1,634 1,612 1,584 1,610
Asia Pacific 1,140 1,183 1,179 1,204
Other 628 553 610 551
Worldwide 6,331 6,304 6,299 6,250
Gasolines, naphthas 2,498 2,565 2,484 2,550
Heating oils, kerosene, diesel 1,949 1,887 1,991 1,874
Aviation fuels 481 455 473 453
Heavy fuels 601 581 578 605
Specialty products 802 816 773 768
Worldwide 6,331 6,304 6,299 6,250
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,303 2,449 4,578 4,973
Non-U.S. 3,878 4,047 7,925 8,011
Worldwide 6,181 6,496 12,503 12,984
Attachment V
EXXON MOBIL CORPORATION
SECOND QUARTER 2011
(millions of dollars)
Second Quarter First Half
2011 2010 2011 2010
Capital and Exploration Expenditures
Upstream
United States 4,075 772 6,155 1,544
Non-U.S. 5,361 4,570 10,181 9,344
Total 9,436 5,342 16,336 10,888
Downstream
United States 114 264 231 611
Non-U.S. 370 320 703 647
Total 484 584 934 1,258
Chemical
United States 65 66 121 134
Non-U.S. 287 492 680 1,038
Total 352 558 801 1,172
Other 34 35 56 78
Worldwide 10,306 6,519 18,127 13,396
Exploration expenses charged to income
included above
Consolidated affiliates
United States 49 45 112 100
Non-U.S. 543 361 813 991
Equity companies - ExxonMobil share
United States 4 1 5 2
Non-U.S. 2 8 3 11
Worldwide 598 415 933 1,104
Attachment VI
EXXON MOBIL CORPORATION
EARNINGS
$ Millions $ Per Common Share1
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
Third Quarter 7,350 1.44
Fourth Quarter 9,250 1.86
Year 30,460 6.24
2011
First Quarter 10,650 2.14
Second Quarter 10,680 2.19
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.
Source: Exxon Mobil Corporation
Released July 28, 2011