Exxon Mobil Corporation Announces Estimated Third Quarter 2010 Results

IRVING, Texas--(BUSINESS WIRE)--

Exxon Mobil Corporation (NYSE:XOM):


                                   Third Quarter      Nine Months

                                   2010   2009    %   2010    2009      %

Earnings Excluding Special Items1

$ Millions                         7,350  4,730   55  21,210  13,370    59

$ Per Common Share

Assuming Dilution                  1.44   0.98    47  4.37    2.74      59

Special Items

$ Millions                         0      0           0       (140   )

Earnings

$ Millions                         7,350  4,730   55  21,210  13,230    60

$ Per Common Share

Assuming Dilution                  1.44   0.98    47  4.37    2.71      61

Capital and Exploration

Expenditures - $ Millions          8,769  6,493   35  22,165  18,829    18

1 See Reference to Earnings



EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

"Despite continuing economic uncertainty, we had strong quarterly results and continued to advance our robust investment opportunities. Third quarter earnings were $7.4 billion, up 55% from third quarter of last year due to higher crude oil and natural gas realizations, improved refining margins, and solid chemical results. Earnings for the first nine months of 2010, excluding special items, were $21.2 billion, up 59% over the first nine months of 2009.

"Oil-equivalent production was over 20% higher than the third quarter of 2009, driven by our world-class assets in Qatar and our recent unconventional gas acquisition.

"Capital and exploration spending for the first nine months of 2010 was $22.2 billion, up 18% from the first nine months of last year.

"The Corporation returned over $5 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding."

THIRD QUARTER HIGHLIGHTS

    --  Earnings were $7,350 million, an increase of 55% or $2,620 million from
        the third quarter of 2009.
    --  Earnings per share were $1.44, an increase of 47%.
    --  Capital and exploration expenditures were $8.8 billion, up 35% from the
        third quarter of 2009.
    --  Oil-equivalent production increased over 20% from the third quarter of
        2009. Excluding the impacts of entitlement volumes, OPEC quota effects
        and divestments, production was up 20%.
    --  Cash flow from operations and asset sales was $13.9 billion, including
        asset sales of $0.8 billion.
    --  Share purchases to reduce shares outstanding were $3 billion.
    --  Dividends per share of $0.44 increased by 5% compared to the third
        quarter of 2009.
    --  During the third quarter, production began from the Odoptu field, the
        latest development phase of the Sakhalin-1 project in Russia.
    --  ExxonMobil announced the commissioning of new units to produce ultra low
        sulfur diesel at its Baytown, Texas and Baton Rouge, Louisiana
        refineries. This will enable ExxonMobil to increase the supply of ultra
        low sulfur diesel by over 3 million gallons a day.

Third Quarter 2010 vs. Third Quarter 2009

Upstream earnings were $5,467 million, up $1,455 million from the third quarter of 2009. Higher crude oil and natural gas realizations increased earnings by $1 billion, while higher liquids and gas volumes improved earnings by $270 million.

On an oil-equivalent basis, production increased over 20% from the third quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 20%.

Liquids production totaled 2,421 kbd (thousands of barrels per day), up 86 kbd or nearly 4% from the third quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 3%, as increased production from projects in Qatar and the addition of XTO volumes more than offset net field decline.

Third quarter natural gas production was 12,192 mcfd (millions of cubic feet per day), up 4,037 mcfd from 2009, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.

Earnings from U.S. Upstream operations were $999 million, $290 million higher than the third quarter of 2009. Non-U.S. Upstream earnings were $4,468 million, up $1,165 million from last year.

Downstream earnings of $1,160 million were up $835 million from the third quarter of 2009. Higher industry refining margins, partly offset by lower marketing margins increased earnings by $300 million. Volume and product mix effects increased earnings by $150 million while other factors, mainly asset sales and favorable foreign exchange impacts, increased earnings by $390 million. Petroleum product sales of 6,574 kbd were 273 kbd higher than last year's third quarter, mainly reflecting higher demand.

Earnings from the U.S. Downstream were $164 million, up $367 million from the third quarter of 2009. Non-U.S. Downstream earnings of $996 million were $468 million higher than last year.

Chemical earnings of $1,229 million were $353 million higher than the third quarter of 2009. Improved margins increased earnings by $370 million. Third quarter prime product sales of 6,558 kt (thousands of metric tons) were 202 kt higher than the prior year primarily due to improved global demand and start-up of the Fujian facility in China.

Corporate and financing expenses were $506 million, up $23 million from the third quarter of 2009.

During the third quarter of 2010, Exxon Mobil Corporation purchased 54 million shares of its common stock for the treasury at a gross cost of $3.3 billion. These purchases included $3 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 fourth 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 Nine Months 2010 vs. First Nine Months 2009

Earnings of $21,210 million ($4.37 per share) increased $7,980 million from 2009. Excluding special items, earnings for the first nine months of 2010 increased $7,840 million from 2009.

FIRST NINE MONTHS HIGHLIGHTS

    --  Earnings excluding special items were $21,210 million, up 59%.
    --  Earnings per share excluding special items increased 59% to $4.37.
    --  Earnings were up 60% 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 nine months of 2010 did not
        include any special items.
    --  Oil equivalent production was up 11% from 2009. Excluding the impacts of
        entitlement volumes, OPEC quota effects and divestments, production was
        up 12%.
    --  Cash flow from operations and asset sales was $37 billion, including
        $1.6 billion from asset sales.
    --  The Corporation distributed over $12 billion to shareholders in the
        first nine months of 2010 through dividends and share purchases to
        reduce shares outstanding.
    --  Capital and exploration expenditures were $22.2 billion, up 18% versus
        2009.

Upstream earnings were $16,617 million, up $5,290 million from 2009. Higher crude oil and natural gas realizations increased earnings approximately $5.1 billion. The favorable impact of higher volumes of $590 million was partially offset by higher operating costs of $340 million.

On an oil-equivalent basis, production was up 11% compared to the first nine months of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 12%.

Liquids production of 2,387 kbd increased 2 kbd compared with 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production increased 1% compared with 2009, as new volumes from project ramp-ups in Qatar were offset by net field decline.

Natural gas production of 11,304 mcfd increased 2,518 mcfd from 2009, driven by higher volumes from Qatar projects and additional U.S. unconventional gas volumes.

Earnings from U.S. Upstream operations for 2010 were $2,955 million, an increase of $1,073 million from 2009. Non-U.S. Upstream earnings were $13,662 million, up $4,217 million from 2009.

Downstream earnings of $2,417 million were $447 million higher than 2009. Positive sales volume mix effects increased earnings by $430 million. Negative foreign exchange impacts of $320 million were offset by favorable tax items. Petroleum product sales of 6,359 kbd decreased 48 kbd.

U.S. Downstream earnings were $544 million, up $410 million from 2009. Non-U.S. Downstream earnings were $1,873 million, $37 million higher than last year.

Chemical earnings of $3,846 million increased $2,253 million from 2009. Improved margins increased earnings by approximately $1.7 billion while higher volumes increased earnings about $370 million. Prime product sales of 19,542 kt were up 1,392 kt from 2009.

Corporate and financing expenses excluding special items were $1,670 million, up $150 million from 2009 mainly due to a tax charge related to the U.S. health care legislation during the first quarter of 2010.

Gross share purchases through the first nine months of 2010 were $7.3 billion, reducing shares outstanding by 115 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 October 28, 2010. Slides for the webcast will be posted on our website at approximately 9 a.m. Central time. 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 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 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

THIRD QUARTER 2010

(millions of dollars, unless noted)

                                               Third Quarter   Nine Months

                                               2010    2009    2010     2009

Earnings / Earnings Per Share

Total revenues and other income                95,298  82,260  278,035  220,745

Total costs and other deductions               82,440  73,056  240,403  196,174

Income before income taxes                     12,858  9,204   37,632   24,571

Income taxes                                   5,297   4,333   15,750   11,052

Net income including noncontrolling interests  7,561   4,871   21,882   13,519

Net income attributable to noncontrolling      211     141     672      289
interests

Net income attributable to ExxonMobil (U.S.    7,350   4,730   21,210   13,230
GAAP)

Earnings per common share (dollars)            1.44    0.98    4.38     2.72

Earnings per common share

- assuming dilution (dollars)                  1.44    0.98    4.37     2.71

Other Financial Data

Dividends on common stock

Total                                          2,234   2,011   6,286    6,031

Per common share (dollars)                     0.44    0.42    1.30     1.24

Millions of common shares outstanding

At September 30                                                5,043    4,747

Average - assuming dilution                    5,089   4,803   4,851    4,878

ExxonMobil share of equity at September 30                     145,031  107,265

ExxonMobil share of capital employed at                        167,040  120,351
September 30

Income taxes                                   5,297   4,333   15,750   11,052

Sales-based taxes                              7,172   6,805   20,933   18,927

All other taxes                                10,071  9,729   28,664   27,442

Total taxes                                    22,540  20,867  65,347   57,421

ExxonMobil share of income taxes of

equity companies                               881     515     2,691    1,616




Attachment II

EXXON MOBIL CORPORATION

THIRD QUARTER 2010

(millions of dollars)

                                           Third Quarter     Nine Months

                                           2010     2009     2010      2009

Earnings (U.S. GAAP)

Upstream

United States                              999      709      2,955     1,882

Non-U.S.                                   4,468    3,303    13,662    9,445

Downstream

United States                              164      (203  )  544       134

Non-U.S.                                   996      528      1,873     1,836

Chemical

United States                              676      315      1,900     477

Non-U.S.                                   553      561      1,946     1,116

Corporate and financing                    (506  )  (483  )  (1,670 )  (1,660 )

Net income attributable to ExxonMobil      7,350    4,730    21,210    13,230

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         (140   )

Corporate total                            0        0        0         (140   )

Earnings Excluding Special Items

Upstream

United States                              999      709      2,955     1,882

Non-U.S.                                   4,468    3,303    13,662    9,445

Downstream

United States                              164      (203  )  544       134

Non-U.S.                                   996      528      1,873     1,836

Chemical

United States                              676      315      1,900     477

Non-U.S.                                   553      561      1,946     1,116

Corporate and financing                    (506  )  (483  )  (1,670 )  (1,520 )

Corporate total                            7,350    4,730    21,210    13,370

Cash flow from operations and asset sales
(billions of dollars)

Net cash provided by operating activities  13.1     8.8      35.4      19.9
(U.S. GAAP)

Sales of subsidiaries, investments and     0.8      0.2      1.6       1.1
property, plant and equipment

Cash flow from operations and asset sales  13.9     9.0      37.0      21.0




Attachment III

EXXON MOBIL CORPORATION

THIRD QUARTER 2010

                                            Third Quarter  Nine Months

                                            2010    2009   2010         2009

Net production of crude oil

and natural gas liquids,

thousands of barrels daily (kbd)

United States                               430     373    392          383

Canada/South America                        253     267    261          272

Europe                                      294     350    335          381

Africa                                      631     666    632          694

Asia Pacific/Middle East                    633     494    583          474

Russia/Caspian                              180     185    184          181

Worldwide                                   2,421   2,335  2,387        2,385

Natural gas production available for sale,

millions of cubic feet daily (mcfd)

United States                               3,726   1,292  2,167        1,268

Canada/South America                        550     646    570          643

Europe                                      2,365   2,545  3,580        3,449

Africa                                      15      16     16           21

Asia Pacific/Middle East                    5,371   3,510  4,790        3,263

Russia/Caspian                              165     146    181          142

Worldwide                                   12,192  8,155  11,304       8,786

Oil-equivalent production (koebd)1          4,453   3,694  4,271        3,849

1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand
barrels




Attachment IV

EXXON MOBIL CORPORATION

THIRD QUARTER 2010

                                Third Quarter  Nine Months

                                2010   2009    2010    2009

Refinery throughput (kbd)

United States                   1,752  1,751   1,760   1,773

Canada                          453    417     437     414

Europe                          1,550  1,542   1,550   1,540

Asia Pacific                    1,304  1,349   1,230   1,321

Other                           305    293     261     293

Worldwide                       5,364  5,352   5,238   5,341

Petroleum product sales (kbd)

United States                   2,534  2,462   2,480   2,525

Canada                          450    412     439     411

Europe                          1,656  1,607   1,626   1,615

Asia Pacific                    1,278  1,292   1,229   1,328

Other                           656    528     585     528

Worldwide                       6,574  6,301   6,359   6,407

Gasolines, naphthas             2,680  2,593   2,594   2,556

Heating oils, kerosene, diesel  1,949  1,851   1,899   2,009

Aviation fuels                  526    553     478     541

Heavy fuels                     597    596     602     585

Specialty products              822    708     786     716

Worldwide                       6,574  6,301   6,359   6,407

Chemical prime product sales,

thousands of metric tons (kt)

United States                   2,628  2,525   7,601   7,087

Non-U.S.                        3,930  3,831   11,941  11,063

Worldwide                       6,558  6,356   19,542  18,150




Attachment V

EXXON MOBIL CORPORATION

THIRD QUARTER 2010

(millions of dollars)

                                        Third Quarter  Nine Months

                                        2010   2009    2010    2009

Capital and Exploration Expenditures

Upstream

United States                           2,352  858     3,896   2,602

Non-U.S.                                5,280  4,049   14,624  11,576

Total                                   7,632  4,907   18,520  14,178

Downstream

United States                           201    396     812     1,156

Non-U.S.                                357    435     1,004   1,138

Total                                   558    831     1,816   2,294

Chemical

United States                           62     66      196     237

Non-U.S.                                463    681     1,501   2,098

Total                                   525    747     1,697   2,335

Other                                   54     8       132     22

Worldwide                               8,769  6,493   22,165  18,829

Exploration expenses charged to income

included above

Consolidated affiliates

United States                           62     60      162     155

Non-U.S.                                437    434     1,428   1,178

Equity companies - ExxonMobil share

United States                           1      0       3       0

Non-U.S.                                1      7       12      9

Worldwide                               501    501     1,605   1,342




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

Third Quarter  7,350       1.44

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