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Exxon Mobil Corporation Announces Estimated Second Quarter 2010 Results

IRVING, Texas--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE:XOM):

"We continued our focus on investing for the future with capital and exploration spending of $13.4 billion year to date, up 9% from the first half of last year."










Second Quarter


First Half



2010
2009
%
2010
2009
% Earnings Excluding Special Items 1













$ Millions
7,560
4,090

85
13,860
8,640

60 $ Per Common Share











Assuming Dilution
1.60
0.84

90
2.93
1.76

66











Special Items













$ Millions
0
(140 )


0
(140 )













Earnings













$ Millions
7,560
3,950

91
13,860
8,500

63 $ Per Common Share











Assuming Dilution
1.60
0.81

98
2.93
1.73

69











Capital and Exploration











Expenditures - $ Millions
6,519
6,562

-1
13,396
12,336

9











1 See Reference to Earnings

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

"ExxonMobil's focus on operational excellence continues to deliver strong results. Second quarter earnings, excluding special items, of $7.6 billion, were up 85% from second quarter of last year reflecting higher crude oil realizations, improved downstream margins, and strong chemical results. First half earnings, excluding special items, of $13.9 billion increased by 60% over the first half of 2009.

"Oil-equivalent production increased by 8% over the second quarter of 2009 driven by contributions from our world-class assets in Qatar.

"We continued our focus on investing for the future with capital and exploration spending of $13.4 billion year to date, up 9% from the first half of last year.

"Over $3 billion was returned to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding.

"The Corporation's second quarter 2010 earnings and production volumes included de minimis amounts for the period from June 25 to June 30 resulting from the merger with XTO Energy Inc. which closed on June 25, 2010."

SECOND QUARTER HIGHLIGHTS

  • Earnings excluding special items were $7,560 million, an increase of 85% or $3,470 million from the second quarter of 2009.
  • Earnings per share excluding special items were $1.60, an increase of 90%.
  • Earnings were up 91% from the second quarter of 2009 which included a special charge of $140 million for interest related to the Valdez punitive damages award. Earnings for the second quarter of 2010 did not include any special items.
  • Capital and exploration expenditures were $6.5 billion, down 1% from the second quarter of 2009.
  • Oil-equivalent production increased 8% from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 10%.
  • Cash flow from operations and asset sales was $9.6 billion, including asset sales of $0.5 billion.
  • Share purchases to reduce shares outstanding were over $1 billion.
  • Dividends per share of $0.44 increased by 5% compared to the second quarter of 2009.
  • The merger with XTO Energy, a leading U.S. unconventional natural gas and oil producer, was completed on June 25, 2010, making ExxonMobil the largest U.S. natural gas producer. Through this transaction ExxonMobil has acquired a resource base in excess of 45 trillion cubic feet equivalent at a cost of under $1 per kcf equivalent.
  • ExxonMobil and Synthetic Genomics Inc. (SGI) announced the opening of a greenhouse facility enabling the next step of research and testing in our algae biofuels program. SGI and ExxonMobil researchers are using the facility to test whether large-scale quantities of affordable fuel can be produced from algae.
Second Quarter 2010 vs. Second Quarter 2009

Upstream earnings were $5,336 million, up $1,524 million from the second quarter of 2009. Higher crude oil and natural gas realizations drove the improvement and increased earnings by $1.6 billion.

On an oil-equivalent basis, production increased 8% from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 10%.

Liquids production totaled 2,325 kbd (thousands of barrels per day), down 21 kbd from the second quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 1%, as increased production from projects in Qatar and Kazakhstan more than offset net field decline.

Second quarter natural gas production was 10,025 mcfd (millions of cubic feet per day), up 1,984 mcfd from 2009, driven by project ramp-ups in Qatar and higher demand in Europe, partly offset by net field decline.

Earnings from U.S. Upstream operations were $865 million, $52 million higher than the second quarter of 2009. Non-U.S. Upstream earnings were $4,471 million, up $1,472 million from last year.

Downstream earnings of $1,220 million were up $708 million from the second quarter of 2009. Higher industry refining and marketing margins increased earnings by $780 million. Volumes and product mix effects increased earnings by $170 million while other factors, mainly unfavorable foreign exchange impacts, decreased earnings by $240 million. Petroleum product sales of 6,241 kbd were 246 kbd lower than last year's second quarter, mainly reflecting lower demand.

Earnings from the U.S. Downstream were $440 million, up $455 million from the second quarter of 2009. Non-U.S. Downstream earnings of $780 million were $253 million higher than last year.

Chemical earnings of $1,368 million were $1,001 million higher than the second quarter of 2009. Stronger margins improved earnings by $840 million and higher sales volumes increased earnings by $120 million. Second quarter prime product sales of 6,496 kt (thousands of metric tons) were 229 kt higher than the prior year primarily due to improved global demand.

Corporate and financing expenses excluding special items were $364 million, down $237 million due mainly to favorable tax items.

During the second quarter of 2010, Exxon Mobil Corporation purchased 24 million shares of its common stock for the treasury at a gross cost of $1.6 billion. These purchases included over $1 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. As a result of regulatory requirements, no open market purchases of shares were made during the proxy solicitation period for the XTO transaction. Including 416 million shares issued in connection with the XTO merger, shares outstanding increased from 4,698 million at the end of the first quarter to 5,092 million at the end of the second quarter. Share purchases to reduce shares outstanding are currently anticipated to equal $3 billion in the third quarter of 2010. 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 2010 vs. First Half 2009

Earnings of $13,860 million ($2.93 per share) increased $5,360 million from 2009. Excluding special items, earnings for the first half of 2010 increased $5,220 million from 2009.

FIRST HALF HIGHLIGHTS

  • Earnings excluding special items were $13,860 million, up 60%.
  • Earnings per share excluding special items increased 66% to $2.93.
  • Earnings were up 63% from 2009. Earnings for 2009 included a special charge of $140 million for interest related to the Valdez punitive damages award. Earnings for the first half of 2010 did not include any special items.
  • Oil equivalent production was up 6% from 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 8%.
  • Cash flow from operations and asset sales was $23.1 billion, including $0.9 billion from asset sales.
  • The Corporation distributed over $7 billion to shareholders in the first half of 2010 through dividends and share purchases to reduce shares outstanding.
  • Capital and exploration expenditures were $13.4 billion, up 9% versus 2009.
Upstream earnings were $11,150 million, up $3,835 million from 2009. Higher net realizations increased earnings approximately $4 billion. The favorable impact of higher volumes of $0.4 billion was partially offset by higher operating costs of $0.3 billion.

On an oil-equivalent basis, production was up 6% compared to the same period in 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 8%.

Liquids production of 2,370 kbd decreased 41 kbd compared with 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was flat with 2009, as new volumes from project ramp-ups in Qatar and Kazakhstan were offset by net field decline.

Natural gas production of 10,852 mcfd increased 1,744 mcfd from 2009, driven by higher volumes from Qatar projects and higher demand in Europe.

Earnings from U.S. Upstream operations for 2010 were $1,956 million, an increase of $783 million. Earnings outside the U.S. were $9,194 million, up $3,052 million.

Downstream earnings of $1,257 million were $388 million lower than 2009. Lower refining margins decreased earnings by $0.5 billion. Unfavorable forex impacts of $0.4 billion were offset by improved marketing margins, and favorable sales volume mix and refining operations effects. Petroleum product sales of 6,193 kbd decreased 268 kbd, mainly reflecting lower demand.

U.S. Downstream earnings were $380 million, up $43 million from 2009. Non-U.S. Downstream earnings were $877 million, $431 million lower than last year.

Chemical earnings of $2,617 million increased $1,900 million from 2009. Stronger margins increased earnings by approximately $1.4 billion while higher volumes increased earnings about $0.3 billion. Prime product sales of 12,984 kt were up 1,190 kt from 2009.

Corporate and financing expenses excluding special items were $1,164 million, up $127 million from 2009 mainly due to a tax charge related to the U.S. health care legislation during the first half of 2010.

Gross share purchases through the first half of 2010 were $4.1 billion, reducing shares outstanding by 61 million shares, excluding the impact of the XTO transaction.

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 July 29, 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: our ability to integrate the businesses of XTO and ExxonMobil effectively; 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 2009 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.

Reference to Earnings

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.

Attachment I EXXON MOBIL CORPORATION SECOND QUARTER 2010

(millions of dollars, unless noted)
Second Quarter First Half

2010 2009
2010 2009 Earnings / Earnings Per Share















Total revenues and other income
92,486
74,457

182,737
138,485 Total costs and other deductions
79,780
66,940

157,963
123,118 Income before income taxes
12,706
7,517

24,774
15,367 Income taxes
4,960
3,571

10,453
6,719 Net income including noncontrolling interests
7,746
3,946

14,321
8,648 Net income attributable to noncontrolling interests
186
(4 )
461
148 Net income attributable to ExxonMobil (U.S. GAAP)
7,560
3,950

13,860
8,500







Earnings per common share (dollars)
1.61
0.82

2.94
1.74







Earnings per common share







- assuming dilution (dollars)
1.60
0.81

2.93
1.73







Other Financial Data















Dividends on common stock







Total
2,066
2,039

4,052
4,020 Per common share (dollars)
0.44
0.42

0.86
0.82







Millions of common shares outstanding







At June 30




5,092
4,806 Average - assuming dilution
4,729
4,871

4,733
4,916







ExxonMobil share of equity at June 30




140,172
106,592 ExxonMobil share of capital employed at June 30


164,318
119,645







Income taxes
4,960
3,571

10,453
6,719 Sales-based taxes
6,946
6,216

13,761
12,122 All other taxes
9,244
9,124

18,593
17,713 Total taxes
21,150
18,911

42,807
36,554







ExxonMobil share of income taxes of







equity companies
834
413

1,810
1,101

Attachment II EXXON MOBIL CORPORATION SECOND QUARTER 2010

(millions of dollars)

Second Quarter First Half

2010 2009
2010 2009 Earnings (U.S. GAAP)







Upstream







United States
865

813

1,956

1,173
Non-U.S.
4,471

2,999

9,194

6,142
Downstream







United States
440

(15 )
380

337
Non-U.S.
780

527

877

1,308
Chemical







United States
685

79

1,224

162
Non-U.S.
683

288

1,393

555
Corporate and financing
(364 )
(741 )
(1,164 )
(1,177 ) Net income attributable to ExxonMobil
7,560

3,950

13,860

8,500
Special Items







Upstream







United States
0

0

0

0
Non-U.S.
0

0

0

0
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

(140 )
0

(140 ) Corporate total
0

(140 )
0

(140 ) Earnings Excluding Special Items







Upstream







United States
865

813

1,956

1,173
Non-U.S.
4,471

2,999

9,194

6,142
Downstream







United States
440

(15 )
380

337
Non-U.S.
780

527

877

1,308
Chemical







United States
685

79

1,224

162
Non-U.S.
683

288

1,393

555
Corporate and financing
(364 )
(601 )
(1,164 )
(1,037 ) Corporate total 7,560 4,090 13,860 8,640 Cash flow from operations and asset sales (billions of dollars)





Net cash provided by operating activities
(U.S. GAAP)
9.1

2.2

22.2

11.1
Sales of subsidiaries, investments and property, plant and equipment
0.5

0.8

0.9

0.9
Cash flow from operations and asset sales 9.6 3.0 23.1 12.0 Attachment III




EXXON MOBIL CORPORATION SECOND QUARTER 2010











Second Quarter
First Half

2010
2009
2010
2009 Net production of crude oil







and natural gas liquids,







thousands of barrels daily (kbd)







United States
357
380
373
389 Canada/South America
267
242
266
274 Europe
348
383
356
397 Africa
599
702
632
709 Asia Pacific/Middle East
573
462
557
464 Russia/Caspian
181
177
186
178 Worldwide
2,325
2,346
2,370
2,411







Natural gas production available for sale,







millions of cubic feet daily (mcfd)







United States
1,412
1,267
1,374
1,255 Canada/South America
594
649
580
643 Europe
3,268
2,869
4,198
3,909 Africa
20
23
16
24 Asia Pacific/Middle East
4,552
3,107
4,495
3,137 Russia/Caspian
179
126
189
140 Worldwide
10,025
8,041
10,852
9,108







Oil-equivalent production (koebd) 1
3,996
3,686
4,179
3,929































1 Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels Attachment IV




EXXON MOBIL CORPORATION SECOND QUARTER 2010











Second Quarter
First Half

2010
2009
2010
2009 Refinery throughput (kbd)







United States
1,807
1,765
1,764
1,785 Canada
418
365
428
412 Europe
1,570
1,560
1,550
1,539 Asia Pacific
1,143
1,306
1,192
1,306 Other
254
294
240
293 Worldwide
5,192
5,290
5,174
5,335







Petroleum product sales (kbd)







United States
2,521
2,538
2,452
2,557 Canada
435
403
433
410 Europe
1,612
1,671
1,610
1,619 Asia Pacific
1,183
1,346
1,204
1,345 Other
490
529
494
530 Worldwide
6,241
6,487
6,193
6,461







Gasolines, naphthas
2,565
2,617
2,550
2,537 Heating oils, kerosene, diesel
1,887
1,991
1,874
2,089 Aviation fuels
455
544
453
535 Heavy fuels
581
567
605
581 Specialty products
753
768
711
719 Worldwide
6,241
6,487
6,193
6,461







Chemical prime product sales,







thousands of metric tons (kt)







United States
2,449
2,519
4,973
4,562 Non-U.S.
4,047
3,748
8,011
7,232 Worldwide
6,496
6,267
12,984
11,794

Attachment V






EXXON MOBIL CORPORATION
SECOND QUARTER 2010


(millions of dollars)









Second Quarter
First Half


2010
2009
2010
2009
Capital and Exploration Expenditures








Upstream








United States
772
941
1,544
1,744
Non-U.S.
4,570
3,964
9,344
7,527
Total
5,342
4,905
10,888
9,271
Downstream








United States
264
407
611
760
Non-U.S.
320
410
647
703
Total
584
817
1,258
1,463
Chemical








United States
66
94
134
171
Non-U.S.
492
736
1,038
1,417
Total
558
830
1,172
1,588









Other
35
10
78
14









Worldwide
6,519
6,562
13,396
12,336


















Exploration expenses charged to income








included above








Consolidated affiliates








United States
45
53
100
95
Non-U.S.
361
437
991
744
Equity companies - ExxonMobil share








United States
1
0
2
0
Non-U.S.
8
1
11
2
Worldwide
415
491
1,104
841 Attachment VI


EXXON MOBIL CORPORATION EARNINGS











$ Millions
$ Per Common Share 1,2



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





2010





First Quarter
6,300
1.33 Second Quarter
7,560
1.61





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 For periods prior to 2009, earnings per share (EPS) numbers have been adjusted retrospectively
on a consistent basis with 2009 reporting when new authoritative guidance on EPS was adopted.

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