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
MONDAY, JANUARY 31, 2005
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
FOURTH QUARTER AND 2004 RESULTS
Net Income
$ Millions
$ Per Common Share
Assuming Dilution
1.30
1.01
3.89
3.23
Earnings Excluding Accounting
Change and Other Special Items
$ Millions
8,420
4,420
25,880
17,030
$ Per Common Share
Assuming Dilution
Total Revenues and
Other Income - $ Millions
Capital and Exploration
Expenditures - $ Millions
IRVING, TX, January 31 -- Exxon Mobil Corporation today reported fourth quarter results. Net income of $8,420 million ($1.30 per share) was the highest quarter ever for the Corporation. Net income increased $1,770 million from the fourth quarter of 2003, which included a special item of $2,230 million relating to the settlement of a long-running U.S. tax dispute. Excluding this special item, fourth quarter earnings increased $4,000 million.
Revenues and other income for the fourth quarter of 2004 totaled $83,357 million compared with $65,952 million in 2003. Capital and exploration expenditures of $4,233 million in the fourth quarter of 2004 were down $127 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
"Fourth quarter earnings were $8,420 million with all business segments reporting record earnings.
"Upstream earnings were $4,887 million, an increase of $1,618 million from fourth quarter 2003 results reflecting higher average crude and natural gas prices.
"Downstream earnings were $2,344 million, an increase of $1,608 million from last year's fourth quarter due to strong refining margins and improved marketing results.
"Chemical earnings were $1,248 million, an increase of $772 million from fourth quarter 2003 results reflecting strong worldwide demand.
"In the fourth quarter, ExxonMobil continued its active investment program, spending $4,233 million on capital and exploration projects, compared with $4,360 million last year, reflecting continued strong levels of upstream spending.
"ExxonMobil's full year 2004 net income was a record $25,330 million, up $3,820 million from 2003. Earnings excluding an accounting change in 2003 and special items in 2003 and 2004 were $25,880 million, up $8,850 million from 2003 reflecting record performance in all segments of the business.
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"Strong operational performance in all areas of our business helped ExxonMobil capture the benefits of favorable market conditions in 2004.
"During the fourth quarter, the corporation acquired 61 million shares at a gross cost of $3,041 million to offset the dilution associated with benefit plans and to reduce common stock outstanding."
Additional comments on earnings by operating segments follow:
Fourth Quarter 2004 vs. Fourth Quarter 2003
Upstream earnings were $4,887 million, up $1,618 million from the fourth quarter of 2003 reflecting higher crude oil and natural gas realizations.
Liquids production of 2,565 kbd (thousands of barrels per day) was down 1% versus the fourth quarter of 2003. Higher production from new fields in West Africa and Norway was more than offset by natural field decline in mature areas, entitlement effects and divestment impacts. Excluding divestment and entitlement effects, production increased 3%.
Fourth quarter natural gas production decreased to 10,430 mcfd (millions of cubic feet per day) from 10,858 mcfd last year. The impact of projects and work programs and an additional LNG train in Qatar were more than offset by natural field decline in mature areas, divestment impacts and entitlement effects.
On an oil-equivalent basis, production decreased by 2% from the fourth quarter of 2003. Excluding divestment and entitlement effects, production increased by 1%.
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Earnings from U.S. Upstream operations were $1,384 million, up $528 million. Non-U.S. Upstream earnings of $3,503 million were $1,090 million higher than last year's fourth quarter.
Downstream earnings were $2,344 million, an increase of $1,608 million from the fourth quarter 2003. The improved results reflect stronger refining margins, increased refinery throughput from more efficient operations and higher marketing margins. Petroleum product sales were 8,446 kbd, 209 kbd higher than last year's fourth quarter.
U.S. Downstream earnings were $876 million, up $492 million. Non-U.S. Downstream earnings of $1,468 million were $1,116 million higher than last year's fourth quarter.
Chemical earnings were $1,248 million, up $772 million from the same quarter a year ago due to improved margins and increased sales volumes. Prime product sales of 6,949 kt (thousands of metric tons) were up 257 kt, reflecting improved demand.
Corporate and financing expenses of $59 million were $2 million lower than the fourth quarter of 2003 after excluding the earnings from a tax settlement reported as a special item in 2003.
During the fourth quarter of 2004, Exxon Mobil Corporation purchased 61 million shares of its common stock for the treasury at a gross cost of $3,041 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 6,451 million at the end of the third quarter of 2004 to 6,401 million at the end of the fourth quarter. Purchases may be made in both the open market and
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through negotiated transactions. Purchases may be increased, decreased or discontinued at any time without prior notice.
Full year 2004 vs. Full year 2003
Net income of $25,330 million ($3.89 per share) was a record and increased $3,820 million from 2003. Net income for 2004 included a special charge of $550 million for the Allapattah lawsuit provision. Net income for 2003 included a $550 million positive impact for the required adoption of FAS 143 relating to accounting for asset retirement obligations. Net income for 2003 also included one-time special items of $2,230 million relating to the positive settlement of a long-running U.S. tax dispute and a gain of $1,700 million from the transfer of shares in Ruhrgas AG. Excluding the accounting change and special items, 2004 earnings increased by $8,850 million.
Upstream earnings of $16,675 million increased $3,873 million, excluding special items, due to higher liquids and natural gas realizations.
Liquids production of 2,571 kbd increased by 2% versus 2003. Higher production in West Africa and Norway was partly offset by natural field decline in mature areas, entitlement effects and divestment impacts.
Natural gas production of 9,864 mcfd decreased 255 mcfd from 2003. Natural field decline in mature areas, divestment impacts and entitlement effects 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 was flat versus 2003. Excluding divestment and entitlement effects, production increased by 3%.
Earnings from U.S. Upstream operations for 2004 were $4,948 million, an increase of $1,043 million. Earnings outside the U.S. were $11,727 million, $2,830 million higher than last year.
Downstream earnings, excluding the $550 million special charge in 2004, were $6,256 million, an increase of $2,740 million from 2003 reflecting stronger worldwide refining margins and higher refinery throughput, partly offset by weaker marketing margins. Petroleum product sales of 8,210 kbd compared with 7,957 kbd in 2003.
U.S. Downstream earnings, excluding the special charge, were $2,736 million, up $1,388 million. Non-U.S. Downstream earnings of $3,520 million were $1,352 million higher than last year.
Chemical earnings of $3,428 million were up $1,996 million from 2003 due to improved margins, higher volumes and favorable foreign exchange effects. Prime product sales were a record 27,788 kt, up 5%, reflecting higher demand.
Corporate and financing expenses of $479 million decreased by $241 million mainly due to lower U.S. pension costs, excluding the earnings from a tax settlement reported as a special item in 2003.
During 2004, Exxon Mobil Corporation purchased 218 million shares of its common stock for the treasury at a gross cost of $9,951 million. These purchases were to offset shares issued in conjunction with company benefit plans and programs and to reduce the number of shares outstanding.
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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 January 31, 2005. 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 fourth quarter press release includes both net income and earnings excluding a required accounting change and special items. In 2003, there was a special item and a required accounting change reported in the first quarter and a special item reported in the fourth quarter. In 2004, there was a special item reported in the third quarter. 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 used financial and
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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
FOURTH QUARTER 2004
(millions of dollars, except per share amounts)
EARNINGS / EARNINGS PER SHARE
Total revenues and other income
83,357
65,952
298,027
246,738
Total costs and other deductions
70,092
56,574
256,786
214,772
Income before income taxes
$13,265
$9,378
$41,241
$31,966
Income taxes
4,845
2,728
15,911
11,006
Income before accounting change
$8,420
$6,650
$25,330
$20,960
Accounting change
0
0
0
550
Net income (U.S. GAAP)
$8,420
$6,650
$25,330
$21,510
Net income per common share (dollars)
Income before accounting change
1.31
1.01
3.91
3.16
Accounting change
0.00
0.00
0.00
0.08
Net income
$1.31
$1.01
$3.91
$3.24
Net income per common share
- assuming dilution (dollars)
Income before accounting change
1.30
1.01
3.89
3.15
Accounting change
0.00
0.00
0.00
0.08
Net income
$1.30
$1.01
$3.89
$3.23
OTHER FINANCIAL DATA
Dividends on common stock
$1,738
$1,649
$6,896
$6,515
Per common share
Millions of common shares outstanding
Average
Average - assuming dilution
6,461
6,612
6,519
6,662
Shareholders' equity at December 31
Capital employed at December 31
Income taxes
Excise taxes
All other taxes
Total taxes
ExxonMobil's share of income taxes
of equity companies
ATTACHMENT II
EXXON MOBIL CORPORATION
FOURTH 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
8,420
6,650
25,330
20,960
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
United States
0
0
(550)
0
Corporate and financing
0
2,230
0
2,230
Accounting change
0
0
0
550
Corporate total
Earnings Excluding Accounting Change and Other Special Items
Upstream
United States
1,384
856
4,948
3,905
Non-U.S.
3,503
2,413
11,727
8,897
Downstream
United States
876
384
2,736
1,348
Non-U.S.
1,468
352
3,520
2,168
Chemical
United States
425
212
1,020
381
Non-U.S.
823
264
2,408
1,051
Corporate and financing
(59)
(61)
(479)
(720)
Corporate total
$8,420
$4,420
$25,880
$17,030
ATTACHMENT III
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
Canada
Europe
Asia Pacific
189
236
202
237
Africa
612
500
572
442
Other Non-U.S.
Worldwide
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
Canada
Europe
Asia Pacific
1,382
1,711
1,519
1,803
Other Non-U.S.
Worldwide
Oil-equivalent production (koebd)*
4,303
4,405
4,215
4,203
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
Petroleum product sales (kbd)
United States
Canada
Europe
Asia Pacific
1,751
1,693
1,689
1,675
Other Non-U.S.
Worldwide
Gasolines, naphthas
Heating oils, kerosene, diesel
Aviation fuels
Heavy fuels
Specialty products
Total
Refinery throughput (kbd)
United States
Canada
Europe
Asia Pacific
1,491
1,345
1,423
1,390
Other Non-U.S.
Worldwide
Chemical product revenue
($ millions)
United States
Non-U.S.
Worldwide
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,871
2,717
11,521
10,740
Non-U.S.
4,078
3,975
16,267
15,827
Worldwide
6,949
6,692
27,788
26,567
ATTACHMENT IV
EXXON MOBIL CORPORATION
FOURTH QUARTER 2004
(millions of dollars)
Capital and Exploration Expenditures
Upstream
United States
Non-U.S.
2,774
2,733
9,793
9,863
Total
3,294
3,304
11,715
11,988
Downstream
United States
175
291
775
1,244
Non-U.S.
496
528
1,630
1,537
Total
671
819
2,405
2,781
Chemical
United States
79
94
262
333
Non-U.S.
177
113
428
359
Total
256
207
690
692
Other
12
30
75
64
Worldwide
Exploration expenses charged to income
included above
Consolidated affiliates
United States
Non-U.S.
Equity companies - ExxonMobil share
United States
9
0
9
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