Exhibit 99.1
News Release
ExxonMobil
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving, TX 75039-2298
972 444 1107 Telephone
972 444 1138 Facsimile
FOR IMMEDIATE RELEASE
THURSDAY, JULY 29, 2004
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
SECOND QUARTER 2004 RESULTS
Net Income
$ Millions
$ Per Common Share
Assuming Dilution
0.88
0.62
1.71
1.67
Earnings Excluding Accounting
Change and Other Special Items
$ Millions
5,790
4,170
11,230
8,960
$ Per Common Share
Assuming Dilution
Total Revenues and
Other Income - $ Millions
Capital and Exploration
Expenditures - $ Millions
IRVING, TX, July 29 -- Exxon Mobil Corporation today reported second quarter results. Net income was $5,790 million ($0.88 per share), an increase of $1,620 million, or 39%, from the second quarter of 2003. Earnings in the second quarter, excluding accounting changes and special items, were a record.
Revenues and other income for the second quarter of 2004 totaled $70,693 million compared with $57,165 million in 2003. Capital and exploration expenditures of $3,617 million in the second quarter of 2004 were down $214 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Second quarter earnings, excluding accounting changes and special items, were a record and improved in all parts of the business.
"Compared with last year's second quarter, ExxonMobil's earnings of $5,790 million were up $1,620 million.
"Upstream earnings were $3,846 million, an increase of $1,008 million from second quarter 2003 results reflecting higher average crude and natural gas prices.
"Liquids production increased by 4% versus second quarter 2003. On an oil-equivalent basis, production increased by 1%. Plans for long-term capacity increases remain on track as reflected by continued high levels of capital spending.
"Downstream earnings were $1,507 million, the highest quarterly level since 1991, and increased $361 million from last year's second quarter reflecting improved worldwide refining conditions partly offset by continued weakness in marketing margins.
"Chemical earnings of $607 million, the highest quarterly level since 1995, were up $168 million from second quarter 2003 results. Earnings benefited from higher worldwide margins and record sales volumes.
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"ExxonMobil's net income for the first half of 2004 was a record $11,230 million, up $20 million from the first half of 2003. Excluding accounting changes and special items, earnings increased by $2,270 million reflecting improvements in all areas of the business.
"In the second quarter, ExxonMobil continued its active investment program, spending $3,617 million on capital and exploration projects, compared with $3,831 million last year, reflecting continued strong levels of upstream spending.
"During the quarter, the corporation acquired 45 million shares at a gross cost of $1,947 million to offset the dilution associated with benefit plans and to reduce common stock outstanding. As a consequence of the continued strengthening of our financial position, the rate of share purchases was increased in July. "
Additional comments on earnings for the major operating segments follow:
Second Quarter 2004 vs. Second Quarter 2003
Upstream earnings were $3,846 million, up $1,008 million from the second quarter 2003 reflecting higher crude oil and natural gas realizations.
Liquids production of 2,581 kbd (thousands of barrels per day) increased by 4% from 2,477 kbd in the second quarter of 2003. Higher production from new fields in West Africa and Norway and the absence of last year's operational issues was partly offset by natural field decline in mature areas, adverse entitlement effects and divestment impacts.
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Second quarter natural gas production decreased to 9,001 mcfd (millions of cubic feet per day) from 9,283 mcfd last year. Natural field decline in mature areas, divestment impacts and adverse entitlement effects were partly offset by projects, work programs and an additional LNG train in Qatar.
Earnings from U.S. upstream operations were $1,237 million, up $330 million. Non-U.S. upstream earnings of $2,609 million were $678 million higher than last year's second quarter.
Downstream earnings of $1,507 million increased $361 million from the second quarter of last year reflecting improved refining margins and higher refinery throughput partly offset by weaker marketing margins. Petroleum product sales were 8,023 kbd, 228 kbd higher than last year's second quarter.
U.S. downstream earnings were $907 million, up $488 million. Non-U.S. downstream earnings of $600 million were $127 million lower than last year's second quarter due to weaker marketing margins.
Chemical earnings of $607 million were up $168 million from the same quarter a year ago due to improved margins and increased sales volumes. Record prime product sales of 6,930 kt (thousands of metric tons) were up 595 kt, reflecting improved demand.
Corporate and financing expenses of $170 million decreased by $83 million mainly due to lower U.S. pension costs.
During the second quarter of 2004, Exxon Mobil Corporation purchased 45 million shares of its common stock for the treasury at a gross cost of $1,947 million.
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These purchases were to offset shares issued in conjunction with company benefit plans and programs and to reduce the number of shares outstanding. Shares outstanding were reduced from 6,540 million at the end of the first quarter of 2004 to 6,506 million at the end of the second quarter. In July, the corporation increased its rate of share purchases. Purchases to reduce shares outstanding are anticipated to increase by approximately $1 billion in the third quarter versus the second quarter. Purchases may be made in both the open market and through negotiated transactions. Purchases may be increased, decreased or discontinued at any time without prior notice.
First Half 2004 vs. First Half 2003
Record net income of $11,230 million ($1.71 per share) for the first half of 2004 increased $20 million from the first half of 2003. Net income for the first half 2003 included a $550 million positive impact for the required adoption of FAS 143 relating to accounting for asset retirement obligations and a one-time gain of $1,700 million from the transfer of shares in Ruhrgas AG. Excluding these impacts, earnings for the first half of 2004 increased by $2,270 million.
Upstream earnings, excluding special items, of $7,859 million increased $1,028 million from the first half of 2003 due to higher liquids and natural gas realizations and increased production.
Liquids production of 2,608 kbd increased by 5% from 2,491 kbd in the first half of 2003. Higher production in West Africa and Norway and the absence of last year's national strike effects in Venezuela, were partly offset by natural field decline in mature areas, adverse entitlement effects and divestment impacts.
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First half natural gas production of 10,234 mcfd, decreased 423 mcfd from 2003. Natural field decline in mature areas and adverse entitlement effects were partly offset by the start-up of an additional LNG train in Qatar and by projects and work programs.
On an oil-equivalent basis, production increased by 1% from the first half of last year. Excluding divestment and entitlement effects, production increased by 3% from the first half of last year.
Earnings from U.S. upstream operations for the first half of 2004 were $2,391 million, an increase of $225 million. Earnings outside the U.S. were $5,468 million, $803 million higher than last year.
Downstream earnings of $2,511 million increased by $642 million from the first half of 2003 reflecting stronger worldwide refining margins and higher refinery throughput partly offset by weak marketing margins. Petroleum product sales of 8,074 kbd compared with 7,827 kbd in the first half of 2003.
U.S. downstream earnings were $1,299 million, up $706 million. Non-U.S. downstream earnings of $1,212 million were $64 million lower than last year.
Chemical earnings of $1,171 million were up $445 million from the first half of 2003 due to improved margins, higher volumes and favorable foreign exchange effects. Prime product sales were a record 13,722 kt, up 507 kt, reflecting higher demand.
Corporate and financing expenses of $311 million decreased by $155 million mainly due to lower U.S. pension costs.
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During the first half of 2004, Exxon Mobil Corporation purchased 92 million shares of its common stock for the treasury at a gross cost of $3,900 million. These purchases were to offset shares issued in conjunction with company benefit plans and programs and to reduce the number of shares outstanding.
Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in millions of dollars.
ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on July 29, 2004. To listen to the event live or in archive, go to our website at www.exxonmobil.com.
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Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including production growth and capital spending, could differ materially due to changes in market conditions affecting the oil and gas industry or long-term oil or gas prices; political events or disturbances; reservoir performance; changes in OPEC quotas; timely completion of development projects; changes in technical or operating conditions; and other factors including those discussed under the heading "Factors Affecting Future Results" on our website and in Item 1 of ExxonMobil's 2003 Form 10-K. We assume no duty to update these statements as of any future date.
Consistent with previous practice, the second quarter press release includes both net income and earnings excluding a required accounting change and a special item, both of which occurred in the first quarter of 2003. There were no special items reported in 2004. Earnings that exclude the aforementioned segments are a non-GAAP financial measure and are included to help facilitate comparisons of base business
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performance across periods. A reconciliation to net income is shown in Attachment II. Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 26 and 27 in the 2003 Form 10-K and is also available through our website at www.exxonmobil.com.
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ATTACHMENT I
EXXON MOBIL CORPORATION
SECOND QUARTER 2004
(millions of dollars, except per share amounts)
EARNINGS / EARNINGS PER SHARE
Total revenues and other income
70,693
57,165
138,295
120,945
Total costs and other deductions
61,213
50,417
119,853
104,319
Income before income taxes
$9,480
$6,748
$18,442
$16,626
Income taxes
3,690
2,578
7,212
5,966
Income before accounting change
$5,790
$4,170
$11,230
$10,660
Accounting change
0
0
0
550
Net income (U.S. GAAP)
$5,790
$4,170
$11,230
$11,210
Net income per common share (dollars)
Income before accounting change
0.89
0.63
1.72
1.60
Accounting change
0.00
0.00
0.00
0.08
Net income
$0.89
$0.63
$1.72
$1.68
Net income per common share
- assuming dilution (dollars)
Income before accounting change
0.88
0.62
1.71
1.59
Accounting change
0.00
0.00
0.00
0.08
Net income
$0.88
$0.62
$1.71
$1.67
OTHER FINANCIAL DATA
Dividends on common stock
$1,763
$1,667
$3,405
$3,208
Per common share
Millions of common shares outstanding
Average
Average - assuming dilution
6,547
6,687
6,563
6,701
Shareholders' equity at June 30
Income taxes
Excise taxes
All other taxes
Total taxes
ExxonMobil's share of income taxes
of equity companies
ATTACHMENT II
EXXON MOBIL CORPORATION
SECOND QUARTER 2004
(millions of dollars)
FUNCTIONAL EARNINGS
Net Income (U.S. GAAP)
Upstream
United States
Non-U.S.
Downstream
United States
Non-U.S.
Chemical
United States
Non-U.S.
Corporate and financing
Income before accounting change
5,790
4,170
11,230
10,660
Accounting change
0
0
0
550
Net income (U.S. GAAP)
Accounting Change and Other Special Items
Upstream
Non-U.S.
0
0
0
1,700
Accounting change
0
0
0
550
Corporate total
Earnings Excluding Accounting Change and Other Special Items
Upstream
United States
1,237
907
2,391
2,166
Non-U.S.
2,609
1,931
5,468
4,665
Downstream
United States
907
419
1,299
593
Non-U.S.
600
727
1,212
1,276
Chemical
United States
148
128
266
144
Non-U.S.
459
311
905
582
Corporate and financing
(170)
(253)
(311)
(466)
Corporate total
$5,790
$4,170
$11,230
$8,960
ATTACHMENT III
EXXON MOBIL CORPORATION
SECOND QUARTER 2004
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
Canada
Europe
Asia-Pacific
198
241
207
236
Africa
542
399
543
406
Other Non-U.S.
Worldwide
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
Canada
Europe
Asia-Pacific
1,590
1,890
1,590
1,821
Other Non-U.S.
Worldwide
Oil-equivalent production (koebd)*
4,081
4,024
4,314
4,267
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
SECOND QUARTER 2004
Petroleum product sales (kbd)
United States
Canada
Europe
Asia-Pacific
1,585
1,566
1,655
1,685
Other Non-U.S.
Worldwide
Gasolines, naphthas
Heating oils, kerosene, diesel
Aviation fuels
Heavy fuels
Specialty products
Total
Refinery throughput (kbd)
United States
Canada
Europe
Asia-Pacific
1,314
1,347
1,363
1,426
Other Non-U.S.
Worldwide
Chemical product revenue
($ millions)
United States
Non-U.S.
Worldwide
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,925
2,509
5,728
5,359
Non-U.S.
4,005
3,826
7,994
7,856
Worldwide
6,930
6,335
13,722
13,215
ATTACHMENT IV
EXXON MOBIL CORPORATION
SECOND QUARTER 2004
(millions of dollars)
Capital and Exploration Expenditures
Upstream
United States
Non-U.S.
2,376
2,395
4,625
4,690
Total
2,840
2,921
5,544
5,705
Downstream
United States
196
333
398
641
Non-U.S.
428
380
736
653
Total
624
713
1,134
1,294
Chemical and administrative
United States
69
107
166
170
Non-U.S.
84
90
174
158
Total
153
197
340
328
Worldwide
Exploration expenses charged to income
included above
Consolidated affiliates
United States
Non-U.S.
Equity companies - ExxonMobil share
United States
0
1
0
1
Non-U.S.
Worldwide
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
$ Millions
Per Common Share
2000
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2001
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2002
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2003
-
First Quarter
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2004
-
First Quarter