Exxon Mobil Corporation Announces Estimated Fourth Quarter 2009 Results
IRVING, Texas--(BUSINESS WIRE)-- Exxon Mobil Corporation (NYSE:XOM):
Fourth Quarter Twelve Months
2009 2008 % 2009 2008 %
Earnings Excluding Special Items
$ Millions 6,050 7,820 -23 19,420 44,060 -56
$ Per Common Share
Assuming Dilution1 1.27 1.54 -18 4.01 8.44 -52
Special Items
$ Millions 0 0 (140 ) 1,160
Earnings1
$ Millions 6,050 7,820 -23 19,280 45,220 -57
$ Per Common Share
Assuming Dilution1 1.27 1.54 -18 3.98 8.66 -54
Capital and Exploration
Expenditures - $ Millions 8,263 6,829 21 27,092 26,143 4
1 See Accounting guidance adopted in first quarter 2009
EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:
"Despite continuing difficult global economic conditions, ExxonMobil delivered strong business results and built on our long-term focus. Our full year 2009 earnings excluding special items were $19,420 million despite significantly lower commodity prices and weak product margins.
"Our financial strength provided us with the foundation to continue investing in new energy supplies to help meet global energy demand and to fuel economic growth. Capital and exploration spending was $27.1 billion in 2009, another record year, and in line with our longer term plan.
"Underscoring our commitment to creating sustainable, long-term value, ExxonMobil and XTO Energy announced a $41 billion agreement in the fourth quarter 2009 that will enhance ExxonMobil's position in the development of unconventional resources. ExxonMobil and XTO resources will combine to provide numerous opportunities to supply new affordable and reliable energy resources on a global basis.
"In addition to our robust investment program, we distributed a total of $26 billion to shareholders in 2009 through dividends and share purchases to reduce shares outstanding. This reflects a 7% increase in annual per share dividends and an overall reduction in shares outstanding of 5% and reaffirms our commitment to creating value for shareholders.
"ExxonMobil's fourth quarter earnings excluding special items were $6,050 million, a decrease of 23% from the fourth quarter of 2008. Lower refining and fuels margins and lower natural gas realizations were partly offset by higher crude oil realizations."
FOURTH QUARTER HIGHLIGHTS
-- Earnings were $6,050 million, a decrease of 23% or $1,770 million from
the fourth quarter of 2008.
-- Earnings per share were $1.27, a decrease of 18%.
-- Capital and exploration expenditures were $8.3 billion, up 21% from the
fourth quarter of 2008.
-- Oil-equivalent production increased nearly 2% from the fourth quarter of
2008. Excluding the impacts of entitlement volumes, OPEC quota effects
and divestments, production was up over 3%.
-- Cash flow from operations and asset sales was $8.9 billion, including
asset sales of $0.3 billion.
-- Share purchases to reduce shares outstanding were $2.0 billion.
-- Exxon Mobil Corporation and XTO Energy Inc. announced an all-stock
transaction valued at $41 billion. The agreement, subject to regulatory
clearance and XTO shareholder approval, will enhance ExxonMobil's
position in the development of unconventional natural gas and oil
resources and enhance our ability to create sustainable, long-term
value. XTO has a diverse resource base equivalent to 45 trillion cubic
feet of gas which includes shale gas, tight gas, coal bed methane and
shale oil and possesses extensive unconventional technical capabilities
and operating expertise.
-- Project participants agreed to proceed with development of the Papua New
Guinea (PNG) liquefied natural gas (LNG) project. The PNG LNG project
will include gas production and processing facilities, onshore and
offshore pipelines, and liquefaction facilities with capacity of 6.6
million tons per year.
-- Exxon Mobil Corporation and Qatar Petroleum agreed to develop a
world-scale petrochemical complex in Ras Laffan Industrial City, Qatar.
The complex will include a 1.6 million ton-per-year steam cracker, two
650 thousand ton-per-year polyethylene plants, and a 700 thousand
ton-per-year ethylene glycol facility. The plant is expected to start up
in late 2015.
Fourth Quarter 2009 vs. Fourth Quarter 2008
Upstream earnings were $5,780 million, up $146 million from the fourth quarter of 2008. Higher crude oil realizations increased earnings $1.8 billion while lower gas realizations reduced earnings by $1.2 billion. Lower gains from asset sales decreased earnings by $600 million.
On an oil-equivalent basis, production increased nearly 2% from the fourth quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 3%.
Liquids production totaled 2,393 kbd (thousands of barrels per day), down 79 kbd from the fourth quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was essentially flat, as increased production from projects in Qatar was offset by field decline.
Fourth quarter natural gas production was 10,717 mcfd (millions of cubic feet per day), up 868 mcfd from 2008. Project ramp-up in Qatar was partly offset by decline in Europe.
Earnings from U.S. Upstream operations were $1,011 million, $312 million higher than the fourth quarter of 2008. Non-U.S. Upstream earnings were $4,769 million, down $166 million.
Downstream earnings were a loss of $189 million, down $2,603 million. Lower margins drove the majority of the decline, reducing earnings $2.2 billion. Fewer gains from asset sales also contributed to the decrease. Petroleum product sales of 6,489 kbd were 272 kbd lower than last year's fourth quarter, mainly reflecting asset divestments and lower demand.
The U.S. Downstream recorded a loss of $287 million, down $267 million from the fourth quarter of 2008. Non-U.S. Downstream earnings of $98 million were $2,336 million lower.
Chemical earnings of $716 million were $561 million higher than the fourth quarter of 2008. Stronger margins improved earnings by $190 million while higher sales volumes increased earnings $190 million. All other items, primarily lower hurricane costs, increased earnings by $180 million. Fourth quarter prime product sales of 6,675 kt (thousands of metric tons) were 1,049 kt higher than the prior year primarily due to improved demand and the absence of last year's hurricane impacts.
Corporate and financing expenses were $257 million, down $126 million from fourth quarter 2008, mainly due to favorable tax items.
During the fourth quarter of 2009, Exxon Mobil Corporation purchased 33 million shares of its common stock for the treasury at a gross cost of $2.4 billion. These purchases included $2.0 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. Shares outstanding were reduced from 4,747 million at the end of the third quarter to 4,727 million at the end of the fourth quarter. First quarter 2010 share purchases are continuing at a pace consistent with fourth quarter 2009 share reduction spending of $2.0 billion. However, total purchases for the quarter may be less due to trading restrictions during the proxy solicitation period for the XTO merger. 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 2009 vs. Full Year 2008
Earnings of $19,280 million ($3.98 per share) decreased $25,940 million from 2008. Earnings for 2009 included an after-tax special charge of $140 million related to the Valdez litigation. Earnings for 2008 included an after-tax special gain of $1,620 million from the sale of a natural gas transportation business in Germany and after-tax special charges of $460 million related to the Valdez litigation. Excluding these special items, 2009 earnings decreased by $24,640 million.
FULL YEAR HIGHLIGHTS
-- Earnings excluding special items were $19,420 million, down 56%.
-- Earnings per share excluding special items decreased 52% to $4.01,
reflecting lower earnings and the continued reduction in the number of
shares outstanding.
-- Earnings were down 57% from 2008. Earnings for 2009 included a special
charge of $140 million for interest related to the Valdez punitive
damages award. Earnings for 2008 included a special gain of $1,620
million from the sale of a natural gas transportation business in
Germany and special charges of $460 million related to the Valdez
punitive damages award.
-- On an oil-equivalent basis, production increased 11 koebd (thousand of
oil equivalent barrels per day) from last year. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, production was
up about 2%.
-- Cash flow from operations and asset sales was $29.9 billion, including
$1.4 billion from asset sales.
-- The Corporation distributed a total of $26.0 billion to shareholders in
2009 through dividends and share purchases to reduce shares outstanding.
This reflects a 7% increase in annual per share dividends and an overall
reduction in shares outstanding of 5% versus 2008.
-- Capital and exploration expenditures were $27.1 billion, up 4% versus
2008.
Upstream earnings, excluding special items, were $17,107 million, down $16,675 million from 2008. Lower crude oil and natural gas realizations decreased earnings $15.2 billion while higher operating costs reduced earnings by $1.4 billion.
On an oil-equivalent basis, production increased by 11 koebd compared to 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 2%.
Liquids production of 2,387 kbd declined less than 1% from last year. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up nearly 2%, as the ramp-up of project volumes in the U.S., Qatar and West Africa was partly offset by field decline.
Natural gas production of 9,273 mcfd increased 178 mcfd, or 2%, from 2008. Higher volumes from Qatar were partly offset by field decline.
Earnings from U.S. Upstream operations for 2009 were $2,893 million, a decrease of $3,350 million. Earnings outside the U.S. excluding special items were $14,214 million, down $13,325 million.
Downstream earnings of $1,781 million were $6,370 million lower than 2008. Weaker margins decreased earnings $5.1 billion. Lower asset divestment activity reduced earnings about $1.0 billion. Petroleum product sales of 6,428 kbd decreased from 6,761 kbd in 2008, mainly reflecting asset divestments and lower demand.
U.S. Downstream earnings were a loss of $153 million, down $1,802 million. Non-U.S. Downstream earnings were $1,934 million, $4,568 million lower than last year.
Chemical earnings of $2,309 million decreased $648 million from 2008. Weaker margins reduced earnings by $340 million while lower volumes reduced earnings $190 million. Prime product sales of 24,825 kt were down 157 kt from 2008.
Corporate and financing expenses excluding special items were $1,777 million, up $947 million, mainly due to lower interest income.
In 2009, Exxon Mobil Corporation purchased 277 million shares of its common stock for the treasury at a gross cost of $19.7 billion. These purchases included $18.0 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. Shares outstanding were reduced from 4,976 million at the end of 2008 to 4,727 million at the end of 2009, a decrease of 5.0%.
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 February 1, 2010. 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 benefits resulting from the XTO transaction; project plans, costs, timing, and capacities; capital and exploration expenditures; and share purchase levels, could differ materially due to factors including: the timing and conditions of regulatory clearance for the XTO merger; our ability to integrate the businesses of XTO and ExxonMobil effectively after closing; 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 2008 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.
Accounting guidance adopted in first quarter 2009
Effective January 1, 2009, ExxonMobil adopted the authoritative guidance on consolidation as it relates to noncontrolling interests. The guidance changed the accounting and reporting for minority interests, which were recharacterized as noncontrolling interests and classified as a component of equity. The guidance required retrospective adoption of the presentation and disclosure requirements for existing minority interests. All other requirements will be applied prospectively. The adoption of the accounting guidance did not have a material impact on the Corporation's financial statements.
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.
Effective January 1, 2009, ExxonMobil adopted the authoritative guidance for earnings per share as it relates to determining whether instruments granted in share-based payment transactions are participating securities. The guidance required that all unvested share-based payment awards that contain nonforfeitable rights to dividends should be included in the basic Earnings Per Share (EPS) calculation. Prior-year EPS numbers have been adjusted retrospectively on a consistent basis with 2009 reporting. This guidance did not affect the consolidated financial position or results of operations.
Attachment I
EXXON MOBIL CORPORATION
FOURTH QUARTER 2009
(millions of dollars, unless noted)
Fourth Quarter Twelve Months
2009 2008 2009 2008
Earnings / Earnings Per Share1
Total revenues and other income 89,841 84,696 310,586 477,359
Total costs and other deductions 79,635 70,897 275,809 393,962
Income before income taxes 10,206 13,799 34,777 83,397
Income taxes 4,067 5,375 15,119 36,530
Net income including noncontrolling interests 6,139 8,424 19,658 46,867
Net income attributable to noncontrolling 89 604 378 1,647
interests
Net income attributable to ExxonMobil (U.S. 6,050 7,820 19,280 45,220
GAAP)
Earnings per common share (dollars) 1.27 1.55 3.99 8.70
Earnings per common share
- assuming dilution (dollars) 1.27 1.54 3.98 8.66
Other Financial Data
Dividends on common stock
Total 1,992 2,018 8,023 8,058
Per common share (dollars) 0.42 0.40 1.66 1.55
Millions of common shares outstanding
At December 31 4,727 4,976
Average - assuming dilution1 4,760 5,062 4,848 5,221
ExxonMobil share of equity at December 31 110,569 112,965
ExxonMobil share of capital employed at December 31 124,398 125,702
Income taxes 4,067 5,375 15,119 36,530
Sales-based taxes 7,009 7,211 25,936 34,508
All other taxes 10,129 9,463 37,571 45,223
Total taxes 21,205 22,049 78,626 116,261
ExxonMobil share of income taxes of
equity companies 873 1,238 2,489 4,001
1See Accounting guidance adopted in first quarter 2009
Attachment II
EXXON MOBIL CORPORATION
FOURTH QUARTER 2009
(millions of dollars)
Fourth Quarter Twelve Months
2009 2008 2009 2008
Earnings (U.S. GAAP)
Upstream
United States 1,011 699 2,893 6,243
Non-U.S. 4,769 4,935 14,214 29,159
Downstream
United States (287 ) (20 ) (153 ) 1,649
Non-U.S. 98 2,434 1,934 6,502
Chemical
United States 292 81 769 724
Non-U.S. 424 74 1,540 2,233
Corporate and financing (257 ) (383 ) (1,917 ) (1,290 )
Net income attributable to ExxonMobil 6,050 7,820 19,280 45,220
Special Items
Upstream
United States 0 0 0 0
Non-U.S. 0 0 0 1,620
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 (140 ) (460 )
Corporate total 0 0 (140 ) 1,160
Earnings Excluding Special Items
Upstream
United States 1,011 699 2,893 6,243
Non-U.S. 4,769 4,935 14,214 27,539
Downstream
United States (287 ) (20 ) (153 ) 1,649
Non-U.S. 98 2,434 1,934 6,502
Chemical
United States 292 81 769 724
Non-U.S. 424 74 1,540 2,233
Corporate and financing (257 ) (383 ) (1,777 ) (830 )
Corporate total 6,050 7,820 19,420 44,060
Cash flow from operations and asset sales
(billions of dollars)
Net cash provided by operating activities 8.6 10.5 28.5 59.7
(U.S. GAAP)
Sales of subsidiaries, investments and 0.3 1.8 1.4 6.0
property, plant and equipment
Cash flow from operations and asset sales 8.9 12.3 29.9 65.7
Attachment III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2009
Fourth Quarter Twelve Months
2009 2008 2009 2008
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 385 376 384 367
Canada/South America 255 303 267 292
Europe 372 421 379 428
Africa 657 697 685 652
Asia Pacific/Middle East 537 508 490 506
Russia/Caspian 187 167 182 160
Worldwide 2,393 2,472 2,387 2,405
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 1,298 1,216 1,275 1,246
Canada/South America 641 616 643 640
Europe 4,401 4,652 3,689 3,949
Africa 14 31 19 32
Asia Pacific/Middle East 4,180 3,196 3,494 3,114
Russia/Caspian 183 138 153 114
Worldwide 10,717 9,849 9,273 9,095
Oil-equivalent production (koebd)1 4,179 4,113 3,932 3,921
1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand
barrels
Attachment IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2009
Fourth Quarter Twelve Months
2009 2008 2009 2008
Refinery throughput (kbd)
United States 1,748 1,647 1,767 1,702
Canada 412 441 413 446
Europe 1,571 1,593 1,548 1,601
Asia Pacific 1,348 1,320 1,328 1,352
Other 300 312 294 315
Worldwide 5,379 5,313 5,350 5,416
Petroleum product sales (kbd)
United States 2,516 2,593 2,523 2,540
Canada 421 456 413 444
Europe 1,652 1,687 1,625 1,712
Asia Pacific 1,335 1,369 1,329 1,359
Other 565 656 538 706
Worldwide 6,489 6,761 6,428 6,761
Gasolines, naphthas 2,621 2,691 2,573 2,654
Heating oils, kerosene, diesel 2,027 2,164 2,013 2,096
Aviation fuels 520 551 536 607
Heavy fuels 636 632 598 636
Specialty products 685 723 708 768
Worldwide 6,489 6,761 6,428 6,761
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,562 2,021 9,649 9,526
Non-U.S. 4,113 3,605 15,176 15,456
Worldwide 6,675 5,626 24,825 24,982
Attachment V
EXXON MOBIL CORPORATION
FOURTH QUARTER 2009
(millions of dollars)
Fourth Quarter Twelve Months
2009 2008 2009 2008
Capital and Exploration Expenditures
Upstream
United States 983 1,000 3,585 3,334
Non-U.S. 5,543 4,105 17,119 16,400
Total 6,526 5,105 20,704 19,734
Downstream
United States 355 438 1,511 1,636
Non-U.S. 547 516 1,685 1,893
Total 902 954 3,196 3,529
Chemical
United States 82 96 319 441
Non-U.S. 731 639 2,829 2,378
Total 813 735 3,148 2,819
Other 22 35 44 61
Worldwide 8,263 6,829 27,092 26,143
Exploration expenses charged to income
included above
Consolidated affiliates
United States 64 45 219 189
Non-U.S. 617 328 1,795 1,252
Equity companies - ExxonMobil share
United States 1 0 1 0
Non-U.S. 3 3 12 16
Worldwide 685 376 2,027 1,457
Attachment VI
EXXON MOBIL CORPORATION
EARNINGS
$ Millions $ Per Common Share1,2
2005
First Quarter 7,860 1.23
Second Quarter 7,640 1.21
Third Quarter 9,920 1.58
Fourth Quarter 10,710 1.72
Year 36,130 5.74
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
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 See Accounting guidance adopted in first quarter 2009
Source: Exxon Mobil Corporation
Released February 1, 2010