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 28, 2005
EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED
SECOND QUARTER 2005 RESULTS
Net Income
$ Millions
$ Per Common Share
Assuming Dilution
1.20
0.88
2.42
1.71
Earnings Excluding Special Items
$ Millions
7,840
5,790
15,240
11,230
$ Per Common Share
Assuming Dilution
Capital and Exploration
Expenditures - $ Millions
IRVING, TX, July 28 -- Exxon Mobil Corporation today reported record second quarter results. Earnings excluding special items of $7,840 million ($1.23 per share) increased $2,050 million from the second quarter of 2004. Second quarter net income included a special charge of $200 million for the Allapattah lawsuit provision. Including this charge, net income of $7,640 million ($1.20 per share) increased by $1,850 million. Record first half net income of $15,500 million ($2.42 per share) increased by 38% versus the first half of 2004.
Capital and exploration expenditures of $4,537 million in the second quarter of 2005 were up $920 million compared with last year.
ExxonMobil's Chairman Lee R. Raymond commented as follows:
“Compared with last year’s second quarter, ExxonMobil’s second quarter 2005 earnings excluding special items of $7,840 million increased $2,050 million and are the highest second quarter ever for the Corporation. Including the special charge for the Allapattah lawsuit provision, net income increased $1,850 million.
"Upstream earnings were $4,908 million, an increase of $1,062 million from second quarter 2004 reflecting continued strength in crude and natural gas prices.
"Downstream earnings, excluding Allapattah, were $2,221 million, an increase of $714 million from last year due to improved worldwide refining conditions and higher refinery throughput.
"Chemical earnings were $814 million, up $207 million from second quarter 2004 due to higher margins.
"ExxonMobil's net income for the first half of 2005 was a record $15,500 million, up $4,270 million from the first half of 2004. Excluding special items, earnings increased by $4,010 million reflecting improvements in all areas of the business.
"Exxon Mobil continued its active investment program in the second quarter, spending $4,537 million on capital and exploration projects, compared with $3,617 million last year, with continued strong levels of Upstream spending. Our disciplined project management systems remain a competitive advantage.
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ExxonMobil-operated projects that are key to future volume growth continue to be on budget and on or ahead of schedule.
"During the second quarter, the Corporation purchased $3.7 billion of shares including $3.5 billion to reduce common stock outstanding, a $1.0 billion increase from the $2.5 billion of share reduction purchases in the first quarter. As a consequence of the continued strengthening of our financial position, share purchases to reduce shares outstanding will be increased to $5.0 billion in the third quarter."
Additional comments on earnings for the major operating segments follow:
Second Quarter 2005 vs. Second Quarter 2004
Upstream earnings were $4,908 million, up $1,062 million from the second quarter 2004 reflecting strong crude and natural gas prices partly offset by lower production.
On an oil-equivalent basis, production decreased by 4.3% from the second quarter of 2004. Excluding divestment and entitlement effects, production decreased by 2%. Our mature fields continue to perform as expected and for those fields we operate, maintenance has been as anticipated.
Liquids production of 2,466 kbd (thousands of barrels per day) was 115 kbd lower than the second quarter of 2004. Higher production in West Africa was more than offset by mature field decline, maintenance activities, as well as entitlement and divestment impacts.
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Second quarter natural gas production decreased to 8,686 mcfd (millions of cubic feet per day), compared with 9,061 mcfd last year. Higher volumes in Qatar were more than offset by mature field decline, maintenance activities, and the impact of divestments.
Earnings from U.S. Upstream operations were $1,389 million, $152 million higher than last year's second quarter. Non-U.S. Upstream earnings of $3,519 million were up $910 million from 2004.
Downstream earnings, excluding the $200 million Allapattah charge, were $2,221 million, up $714 million from the second quarter of 2004, reflecting improved refining margins and higher refinery throughput. Petroleum product sales were 8,259 kbd, 236 kbd higher than last year's second quarter.
U.S. Downstream earnings, excluding Allapattah, were $1,199 million, $292 million higher than last year's second quarter. Non-U.S. Downstream earnings were up $422 million at $1,022 million.
Chemical earnings were $814 million, up $207 million from the same quarter a year ago due to improved margins partly offset by lower volumes. Prime product sales of 6,592 kt (thousands of metric tons) were down 338 kt from last year's second quarter.
Corporate and financing expenses of $103 million were lower by $67 million mainly due to higher interest income.
During the second quarter of 2005, Exxon Mobil Corporation purchased 64 million shares of its common stock for the treasury at a gross cost of $3,713 million. These purchases included $3.5 billion to reduce the number of shares outstanding and
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the balance to offset shares issued in conjunction with company benefit plans and programs. Shares outstanding were reduced from 6,366 million at the end of the first quarter to 6,305 million at the end of the second quarter. 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 Half 2005 vs. First Half 2004
Record net income of $15,500 million ($2.42 per share) for the first half of 2005 increased $4,270 million from the first half of 2004. Net income for the first half of 2005 included a $460 million positive impact (Downstream - $310 million; Chemical - $150 million) from the sale of the Corporation's stake in China Petroleum and Chemical Corporation ("Sinopec") and a special charge in the Downstream of $200 million for the Allapattah lawsuit provision. Excluding these impacts, earnings for the first half of 2005 increased by $4,010 million.
Upstream earnings of $9,962 million increased $2,103 million from the first half of 2004 due to higher liquids and natural gas realizations partly offset by lower production.
On an oil-equivalent basis, production decreased by 4.5% from the first half of last year. Excluding divestment and entitlement effects, production decreased by 3% from the first half of last year. Our mature fields continue to perform as expected and for those fields we operate, maintenance has been as anticipated.
Liquids production of 2,504 kbd decreased by 104 kbd from 2004. Higher production from new fields in West Africa and the North Sea was more than offset by mature field decline, maintenance, as well as the impact of entitlements and divestments.
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First half natural gas production of 9,730 mcfd decreased 545 mcfd from 2004. Higher volumes in Qatar were more than offset by mature field decline, maintenance, and the impact of divestments.
Earnings from U.S. Upstream operations for the first half of 2005 were $2,742 million, an increase of $351 million. Earnings outside the U.S. were $7,220 million, $1,752 million higher than last year.
Downstream earnings, excluding special items, of $3,364 million increased by $853 million from the first half of 2004 reflecting stronger worldwide refining margins and higher refinery throughput partly offset by weak marketing margins. Petroleum product sales of 8,244 kbd compared with 8,074 kbd in the first half of 2004.
U.S. Downstream earnings, excluding Allapattah, were $1,844 million, up $545 million. Non-U.S. Downstream earnings, excluding Sinopec, of $1,520 million were $308 million higher than last year.
Chemical earnings, excluding Sinopec, of $2,096 million were up $925 million from the first half of 2004 due to improved margins partly offset by lower volumes. Prime product sales of 13,530 kt were down 192 kt from 2004.
Corporate and financing expenses of $182 million decreased by $129 million mainly due to higher interest income.
Gross share purchases in the first half of 2005 were $7,337 million which reduced shares outstanding by 1.5%.
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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 July 28, 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 long-term oil or gas prices or other market conditions affecting the oil and gas industry; 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 2004 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 special items. In 2005, there were special items reported in the first and second quarters. 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 operating measures is contained on pages 28 and 29 in the 2004 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com.
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ATTACHMENT I
EXXON MOBIL CORPORATION
SECOND QUARTER 2005
(millions of dollars, except per share amounts)
EARNINGS / EARNINGS PER SHARE
Total revenues and other income
88,568
70,693
170,619
138,295
Total costs and other deductions
75,809
61,213
144,957
119,853
Income before income taxes
$12,759
$9,480
$25,662
$18,442
Income taxes
5,119
3,690
10,162
7,212
Net income (U.S. GAAP)
$7,640
$5,790
$15,500
$11,230
Net income per common share (dollars)
$1.21
$0.89
$2.44
$1.72
Net income per common share
- assuming dilution (dollars)
$1.20
$0.88
$2.42
$1.71
OTHER FINANCIAL DATA
Dividends on common stock
Total
$1,840
$1,763
$3,568
$3,405
Per common share
Millions of common shares outstanding
Average - assuming dilution
6,370
6,547
6,394
6,563
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 2005
(millions of dollars)
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
Net income (U.S. GAAP)
Special Items
Downstream
United States
(200)
0
(200)
0
Non-U.S.
0
0
310
0
Chemical
Non-U.S.
0
0
150
0
Corporate total
Earnings Excluding Special Items
Upstream
United States
1,389
1,237
2,742
2,391
Non-U.S.
3,519
2,609
7,220
5,468
Downstream
United States
1,199
907
1,844
1,299
Non-U.S.
1,022
600
1,520
1,212
Chemical
United States
343
148
835
266
Non-U.S.
471
459
1,261
905
Corporate and financing
(103)
(170)
(182)
(311)
Corporate total
$7,840
$5,790
$15,240
$11,230
ATTACHMENT III
EXXON MOBIL CORPORATION
SECOND QUARTER 2005
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States
Canada
Europe
Asia Pacific
173
198
173
207
Africa
583
542
590
543
Other Non-U.S.
Worldwide
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States
Canada
Europe
Asia Pacific
1,333
1,590
1,322
1,590
Other Non-U.S.
Worldwide
Oil-equivalent production (koebd)*
3,914
4,091
4,126
4,320
(continued)
*Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels
ATTACHMENT III (continued)
EXXON MOBIL CORPORATION
SECOND QUARTER 2005
Petroleum product sales (kbd)
United States
Canada
Europe
Asia Pacific
1,722
1,585
1,783
1,655
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
1,413
1,314
1,472
1,363
Other Non-U.S.
Worldwide
Chemical prime product sales,
thousands of metric tons (kt)
United States
2,664
2,925
5,502
5,728
Non-U.S.
3,928
4,005
8,028
7,994
Worldwide
6,592
6,930
13,530
13,722
ATTACHMENT IV
EXXON MOBIL CORPORATION
SECOND QUARTER 2005
(millions of dollars)
Capital and Exploration Expenditures
Upstream
United States
Non-U.S.
3,147
2,376
5,518
4,625
Total
3,678
2,840
6,490
5,544
Downstream
United States
201
196
349
398
Non-U.S.
448
428
752
736
Total
649
624
1,101
1,134
Chemical
United States
73
64
128
115
Non-U.S.
102
84
195
165
Total
175
148
323
280
Other
35
5
40
60
Worldwide
Exploration expenses charged to income
included above
Consolidated affiliates
United States
Non-U.S.
Equity companies - ExxonMobil share
United States
0
0
0
0
Non-U.S.
Worldwide
ATTACHMENT V
EXXON MOBIL CORPORATION
NET INCOME
$ Millions
Per Common Share
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
-
Second Quarter
-
Third Quarter
-
Fourth Quarter
Year
2005
-
First Quarter