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
Released October 28, 2010