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, OCTOBER 28, 2004
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
THIRD QUARTER 2004 RESULTS
Net Income
$ Millions
$ Per Common Share
Assuming Dilution
0.88
0.55
2.59
2.22
Earnings Excluding Accounting
Change and Other Special Items
$ Millions
6,230
3,650
17,460
12,610
$ Per Common Share
Assuming Dilution
Total Revenues and
Other Income - $ Millions
Capital and Exploration
Expenditures - $ Millions
IRVING, TX, October 28 -- Exxon Mobil Corporation today reported third quarter results. Net income of $5,680 million ($0.88 per share), after a special charge of $550 million for the Allapattah lawsuit provision, increased $2,030 million from the third quarter of 2003. Third quarter earnings, excluding the special charge, of $6,230 million ($0.96 per share) were the highest quarter ever.
Revenues and other income for the third quarter of 2004 totaled $76,375 million compared with $59,841 million in 2003. Capital and exploration expenditures of $3,634 million in the third quarter of 2004 were down $204 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Third quarter earnings, excluding a special item, were a record $6,230 million and improved in all business segments.
"Upstream earnings were $3,929 million, an increase of $1,227 million from third quarter 2003 results reflecting higher average crude and natural gas prices.
"On an oil-equivalent basis, production increased by 1% versus third quarter 2003. Plans for long-term capacity increases remain on track as reflected by continued high levels of capital spending.
"Downstream earnings were $1,401 million, an increase of $490 million from last year's third quarter reflecting improved worldwide refining conditions partly offset by continued weakness in marketing margins.
"Chemical earnings were a record $1,009 million, and increased $779 million from third quarter 2003 results. Earnings benefited from higher worldwide margins and record sales volumes.
"ExxonMobil's net income for the first nine months of 2004 was a record $16,910 million, up $2,050 million from 2003, and $17,460 million excluding special
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items. Excluding an accounting change and special items in both years, earnings increased by $4,850 million reflecting improvements in all segments of the business.
"In the third quarter, ExxonMobil continued its active investment program, spending $3,634 million on capital and exploration projects, compared with $3,838 million last year, reflecting continued strong levels of upstream spending.
"During the quarter, the corporation acquired 65 million shares at a gross cost of $3,010 million to offset the dilution associated with benefit plans and to reduce common stock outstanding."
Additional comments on earnings by operating segments follow:
Third Quarter 2004 vs. Third Quarter 2003
Upstream earnings were $3,929 million, up $1,227 million from the third quarter of 2003 reflecting higher crude oil and natural gas realizations.
Liquids production of 2,506 kbd (thousands of barrels per day) increased by 1% versus the third quarter of 2003. Higher production from new fields in West Africa and Norway was partly offset by natural field decline in mature areas, adverse entitlement effects, divestment impacts, and planned maintenance activity.
Third quarter natural gas production increased to 8,428 mcfd (millions of cubic feet per day) from 8,323 mcfd last year. Higher European volumes, the impact of projects and work programs and an additional LNG train in Qatar were partly offset by natural field decline in mature areas, planned maintenance activity, divestment impacts and adverse entitlement effects.
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Earnings from U.S. upstream operations were $1,173 million, up $290 million. Non-U.S. upstream earnings of $2,756 million were $937 million higher than last year's third quarter.
Downstream earnings, excluding the $550 million special charge, were $1,401 million, an increase of $490 million from the third quarter 2003. The improved results reflect stronger refining margins and higher refinery throughput from more efficient operations partly offset by weaker marketing margins. Petroleum product sales were 8,242 kbd, 311 kbd higher than last year's third quarter.
U.S. downstream earnings, excluding the special charge, were $561 million, up $190 million. Non-U.S. downstream earnings of $840 million were $300 million higher than last year's third quarter.
Chemical earnings were a record $1,009 million and were up $779 million from the same quarter a year ago due to improved margins and increased sales volumes. Record prime product sales of 7,117 kt (thousands of metric tons) were up 457 kt, reflecting improved demand.
Corporate and financing expenses of $109 million decreased by $84 million mainly due to lower U.S. pension costs and higher interest income.
During the third quarter of 2004, Exxon Mobil Corporation purchased 65 million shares of its common stock for the treasury at a gross cost of $3,010 million. 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 6,506 million at the end of the second quarter of 2004 to 6,451 million at
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the end of the third 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 Nine Months 2004 vs. First Nine Months 2003
Record net income of $16,910 million ($2.59 per share) for the first nine months of 2004 increased $2,050 million from 2003. Net income for 2004 included a special charge of $550 million for the Allapattah lawsuit provision. Net income for the first nine months of 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 special items, earnings for the first nine months of 2004 increased by $4,850 million.
Upstream earnings, excluding special items, of $11,788 million increased $2,255 million from the first nine months of 2003 due to higher liquids and natural gas realizations and increased production.
Liquids production of 2,574 kbd increased by 3% versus the first nine months of 2003. Higher production in West Africa and Norway, was partly offset by natural field decline in mature areas, adverse entitlement effects and divestment impacts.
Natural gas production of 9,640 mcfd, decreased 230 mcfd from 2003. Natural field decline in mature areas, adverse entitlement effects and divestment impacts were partly offset by the start-up of an additional LNG train in Qatar and by projects and work programs.
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On an oil-equivalent basis, production increased by 1% from the first nine months of last year. Excluding divestment and entitlement effects, production increased by 4%.
Earnings from U.S. upstream operations for the first nine months of 2004 were $3,564 million, an increase of $515 million. Earnings outside the U.S. were $8,224 million, $1,740 million higher than last year.
Downstream earnings, excluding the $550 million special charge in 2004, were $3,912 million, an increase of $1,132 million from the first nine months of 2003 reflecting stronger worldwide refining margins and higher refinery throughput partly offset by weak marketing margins. Petroleum product sales of 8,131 kbd compared with 7,862 kbd in the first nine months of 2003.
U.S. downstream earnings, excluding the special charge, were $1,860 million, up $896 million. Non-U.S. downstream earnings of $2,052 million were $236 million higher than last year.
Chemical earnings of $2,180 million were up $1,224 million from the first nine months of 2003 due to improved margins, higher volumes and favorable foreign exchange effects. Prime product sales were 20,839 kt, up 5%, reflecting higher demand.
Corporate and financing expenses of $420 million decreased by $239 million mainly due to lower U.S. pension costs and lower net interest expense.
During the first nine months of 2004, Exxon Mobil Corporation purchased 157 million shares of its common stock for the treasury at a gross cost of $6,910 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.
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 October 28, 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 third quarter press release includes both net income and earnings excluding a required accounting change and special items. There was a special item and a required accounting change reported in the first quarter of 2003 and a special item reported in the third quarter of 2004. Earnings that exclude the aforementioned items are a non-GAAP financial measure and are included to help facilitate comparisons of base business performance across periods. A reconciliation to net income is shown in Attachment II. Further information on ExxonMobil's frequently
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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
THIRD QUARTER 2004
(millions of dollars, except per share amounts)
EARNINGS / EARNINGS PER SHARE
Total revenues and other income
76,375
59,841
214,670
180,786
Total costs and other deductions
66,841
53,879
186,694
158,198
Income before income taxes
$9,534
$5,962
$27,976
$22,588
Income taxes
3,854
2,312
11,066
8,278
Income before accounting change
$5,680
$3,650
$16,910
$14,310
Accounting change
0
0
0
550
Net income (U.S. GAAP)
$5,680
$3,650
$16,910
$14,860
Net income per common share (dollars)
Income before accounting change
0.88
0.55
2.60
2.15
Accounting change
0.00
0.00
0.00
0.08
Net income
$0.88
$0.55
$2.60
$2.23
Net income per common share
- assuming dilution (dollars)
Income before accounting change
0.88
0.55
2.59
2.14
Accounting change
0.00
0.00
0.00
0.08
Net income
$0.88
$0.55
$2.59
$2.22
OTHER FINANCIAL DATA
Dividends on common stock
$1,753
$1,658
$5,158
$4,866
Per common share
Millions of common shares outstanding
Average
Average - assuming dilution
6,508
6,652
6,542
6,683
Shareholders' equity at September 30
Capital employed at September 30
Income taxes
Excise taxes
All other taxes
Total taxes
ExxonMobil's share of income taxes
of equity companies
ATTACHMENT II
EXXON MOBIL CORPORATION
THIRD 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
5,680
3,650
16,910
14,310
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
Downstream
U.S.
(550)
0
(550)
0
Accounting change
0
0
0
550
Corporate total
Earnings Excluding Accounting Change and Other Special Items
Upstream
United States
1,173
883
3,564
3,049
Non-U.S.
2,756
1,819
8,224
6,484
Downstream
United States
561
371
1,860
964
Non-U.S.
840
540
2,052
1,816
Chemical
United States
329
25
595
169
Non-U.S.
680
205
1,585
787
Corporate and financing
(109)
(193)
(420)
(659)
Corporate total
$6,230
$3,650
$17,460
$12,610
ATTACHMENT III
EXXON MOBIL CORPORATION
THIRD QUARTER 2004
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
Canada
Europe
Asia-Pacific
204
241
206
238
Africa
589
456
558
423
Other Non-U.S.
Worldwide
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
Canada
Europe
Asia-Pacific
1,516
1,860
1,565
1,834
Other Non-U.S.
Worldwide
Oil-equivalent production (koebd)*
3,911
3,872
4,181
4,134
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
THIRD QUARTER 2004
Petroleum product sales (kbd)
United States
Canada
Europe
Asia-Pacific
1,695
1,637
1,669
1,669
Other Non-U.S.
Worldwide
Gasolines, naphthas
Heating oils, kerosene, diesel
Aviation fuels
Heavy fuels
Specialty products
Total
Refinery throughput (kbd)
United States
Canada
Europe
Asia-Pacific
1,473
1,364
1,400
1,405
Other Non-U.S.
Worldwide
Chemical product revenue
($ millions)
United States
Non-U.S.
Worldwide
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,922
2,664
8,650
8,023
Non-U.S.
4,195
3,996
12,189
11,852
Worldwide
7,117
6,660
20,839
19,875
ATTACHMENT IV
EXXON MOBIL CORPORATION
THIRD QUARTER 2004
(millions of dollars)
Capital and Exploration Expenditures
Upstream
United States
Non-U.S.
2,394
2,440
7,019
7,130
Total
2,877
2,979
8,421
8,684
Downstream
United States
202
312
600
953
Non-U.S.
398
356
1,134
1,009
Total
600
668
1,734
1,962
Chemical
United States
68
88
183
239
Non-U.S.
86
95
251
246
Total
154
183
434
485
Other
3
8
63
34
Worldwide
Exploration expenses charged to income
included above
Consolidated affiliates
United States
Non-U.S.
Equity companies - ExxonMobil share
United States
0
0
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