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Exxon Mobil Corporation Announces Estimated Third Quarter 2009 Results

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










Third Quarter


Nine Months



2009
2008
%
2009
2008
% Earnings Excluding Special Items













$ Millions
4,730
13,380
-65
13,370

36,240
-63 $ Per Common Share











Assuming Dilution 1
0.98
2.58
-62
2.74

6.87
-60











Special Items













$ Millions
0
1,450


(140 )
1,160













Earnings 1













$ Millions
4,730
14,830
-68
13,230

37,400
-65 $ Per Common Share











Assuming Dilution 1
0.98
2.85
-66
2.71

7.09
-62











Capital and Exploration











Expenditures - $ Millions
6,493
6,853
-5
18,829

19,314
-3











1 See Accounting guidance adopted in first quarter 2009


EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED
:

"Despite ongoing global economic weakness and reduced demand for products, we continued our robust investment program and delivered strong results.

"Our third quarter earnings, excluding special items, were $4.7 billion. While continuing to be impacted by lower commodity prices and weak product margins, we maintained our focus on operational excellence and invested $19 billion through the first three quarters of the year to develop new energy supplies.

"Oil-equivalent production increased by 3% over the third quarter of 2008 with contributions from major start-ups of world-class assets including Qatargas 2, Train 5 and Ras Laffan 3, Train 6 in Qatar.

"We are well-positioned for continued production growth with projects such as QatarGas, RasGas and Gorgon LNG which will contribute additional long plateau production for decades and provide ExxonMobil with a strong foundation.

"ExxonMobil's industry leading financial strength has allowed us to continue to invest across the economic cycle focusing on world class opportunities.

"Our commitment to a disciplined and long term focused investment strategy sets ExxonMobil apart from its competitors.

"In addition to funding our capital and operating programs, we distributed $2.0 billion in dividends and purchased $4.0 billion of ExxonMobil common stock to reduce shares outstanding during the third quarter."

THIRD QUARTER HIGHLIGHTS
  • Earnings excluding special items were $4,730 million, a decrease of 65% or $8,650 million from the third quarter of 2008.
  • Earnings per share excluding special items were $0.98, a decrease of 62%.
  • Earnings were down 68% from the third quarter of 2008 which included a special gain of $1,620 million from the sale of a natural gas transportation business in Germany and a special charge of $170 million related to the Valdez punitive damages award. Earnings for the third quarter of 2009 did not include any special items.
  • Capital and exploration expenditures were $6.5 billion, down 5% from the third quarter of 2008, reflecting the impacts of a stronger U.S. dollar.
  • Oil-equivalent production increased nearly 3% from the third quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 5%.
  • Cash flow from operations and asset sales was approximately $9.0 billion, including asset sales of $0.2 billion.
  • Share purchases of $4.0 billion reduced shares outstanding by 1.2%.
  • Two major liquefied natural gas (LNG) facilities in Qatar - Qatargas 2, Train 5 and Ras Laffan 3, Train 6 - commenced production. With annual production capacity of 7.8 million tons each, both trains join Qatargas 2, Train 4 as the largest operating LNG production facilities in the world.
  • Participants in the Gorgon liquefied natural gas (LNG) project approved a development plan that will include three LNG processing trains with a capacity of 5 million tons per year each. The development decision followed execution of LNG sales and purchase agreements with PetroChina International Company Limited and Petronet LNG Limited of India for ExxonMobil's equity share of LNG in the project.
  • Fujian Refining and Petrochemical Company Limited announced the startup of new chemical units - including an ethylene steam cracker, a polyethylene unit, a polypropylene unit and aromatics facilities - in its new fully integrated refining and petrochemical complex in Fujian Province, China.
  • ExxonMobil announced an alliance with leading biotech company, Synthetic Genomics Inc., to research and develop next generation biofuels from photosynthetic algae. If research and development milestones are met, ExxonMobil expects to spend more than $600 million under the program.
Third Quarter 2009 vs. Third Quarter 2008

Upstream earnings, excluding special items, were $4,012 million down $5,339 million from the third quarter of 2008. Lower crude oil and natural gas realizations accounted for the majority of the decline, reducing earnings approximately $4.9 billion while higher operating costs reduced earnings approximately $300 million.

On an oil-equivalent basis, production increased nearly 3% from the third quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up about 5%.

Liquids production totaled 2,335 kbd (thousands of barrels per day), up 45 kbd from the third quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up over 5%, as increased production from projects in the United States and Kazakhstan was partly offset by field decline.

Third quarter natural gas production was 8,129 mcfd (millions of cubic feet per day), up 309 mcfd from 2008. New production volumes from project additions in Qatar and the United States were partly offset by maintenance in Europe.

Earnings from U.S. Upstream operations were $709 million, $1,170 million lower than the third quarter of 2008. Non-U.S. Upstream earnings, excluding special items, were $3,303 million, down $4,169 million from last year.

Downstream earnings of $325 million were down $2,688 million from the third quarter of 2008. Lower refining margins drove the decline, reducing earnings $2.6 billion. Petroleum product sales of 6,301 kbd were 387 kbd lower than last year's third quarter, mainly reflecting asset sales and lower demand.

The U.S. Downstream recorded a loss of $203 million, down $1,181 million from the third quarter of 2008. Non-U.S. Downstream earnings of $528 million were $1,507 million lower than last year.

Chemical earnings of $876 million were $211 million lower than the third quarter of 2008. Weaker margins drove the decline, reducing earnings $170 million. Third quarter prime product sales of 6,356 kt (thousands of metric tons) were 296 kt higher than the prior year primarily due to the absence of last year's hurricane impacts.

Corporate and financing expenses excluding special items were $483 million, up $412 million due mainly to lower interest income.

During the third quarter of 2009, Exxon Mobil Corporation purchased 61 million shares of its common stock for the treasury at a gross cost of $4.2 billion. These purchases included $4.0 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. Shares outstanding were reduced from 4,806 million at the end of the second quarter to 4,747 million at the end of the third quarter. Share purchases to reduce shares outstanding are currently anticipated to equal $2.0 billion in the fourth quarter of 2009. 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 Nine Months 2009 vs. First Nine Months 2008

Earnings of $13,230 million ($2.71 per share) decreased $24,170 million from 2008. Excluding special items, earnings for the first nine months of 2009 were $13,370 million, a decrease of $22,870 million from 2008.

FIRST NINE MONTHS HIGHLIGHTS

  • Earnings excluding special items were $13,370 million, down 63%.
  • Earnings per share excluding special items decreased 60% to $2.74, reflecting lower earnings and the continued reduction in the number of shares outstanding.
  • Earnings were down 65% from 2008. Earnings for 2009 included a special charge of $140 million for interest related to the Valdez punitive damages award. Earnings for 2008 included a special gain of $1,620 million from the sale of a natural gas transportation business in Germany and special charges of $460 million related to the Valdez punitive damages award.
  • Oil equivalent production remained essentially flat with the same period in 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 1%.
  • Cash flow from operations and asset sales was approximately $21.0 billion, including $1.1 billion from asset sales.
  • The Corporation distributed a total of $22.0 billion to shareholders in the first nine months of 2009 through dividends and share purchases to reduce shares outstanding.
  • Dividends per share of $1.24 increased 8%.
  • Capital and exploration expenditures were $18.8 billion, down 3% versus 2008 due to the stronger U.S. dollar.
Upstream earnings, excluding special items, were $11,327 million, down $16,821 million from 2008. Lower crude oil and natural gas realizations decreased earnings approximately $15.8 billion while higher operating costs reduced earnings about $1.0 billion.

On an oil-equivalent basis, production was essentially flat compared to the same period in 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 1%.

Liquids production of 2,385 kbd remained flat with 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up over 2%, as new volumes from project additions in west Africa and the United States, and lower maintenance activity, were partly offset by field decline.

Natural gas production of 8,778 mcfd decreased 64 mcfd from 2008. Higher volumes from Qatar were more than offset by field decline.

Earnings from U.S. Upstream operations for 2009 were $1,882 million, a decrease of $3,662 million. Earnings outside the U.S. excluding special items were $9,445 million, down $13,159 million.

Downstream earnings of $1,970 million were $3,767 million lower than 2008. Weaker margins decreased earnings approximately $2.8 billion. Lower volumes and refinery optimization due to weaker demand reduced earnings about $500 million while higher operating costs resulted in a $300 million decline in earnings. Petroleum product sales of 6,407 kbd decreased from 6,761 kbd in 2008, mainly reflecting asset sales and lower demand.

U.S. Downstream earnings were $134 million, down $1,535 million. Non-U.S. Downstream earnings were $1,836 million, $2,232 million lower than last year.

Chemical earnings of $1,593 million decreased $1,209 million from 2008. Weaker margins reduced earnings by approximately $500 million while lower volumes reduced earnings about $400 million. Unfavorable foreign exchange effects decreased earnings by $200 million. Prime product sales of 18,150 kt were down 1,206 kt from 2008.

Corporate and financing expenses excluding special items were $1,520 million, up $1,073 million mainly due to lower interest income.

Gross share purchases through the first nine months of 2009 were $17.3 billion, reducing shares outstanding by 4.6%.

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 October 29, 2009. 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 project plans, costs, timing, and capacities; capital and exploration expenditures; and share purchase levels, could differ materially due to factors including: changes in long-term oil or gas prices or other market or economic conditions affecting the oil and gas industry; completion of repair projects as planned; 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" on our website and in Item 1A of ExxonMobil's 2008 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.

Accounting guidance adopted in first quarter 2009

Effective January 1, 2009, ExxonMobil adopted the authoritative guidance on consolidation as it relates to noncontrolling interests. The guidance changed the accounting and reporting for minority interests, which were recharacterized as noncontrolling interests and classified as a component of equity. The guidance required retrospective adoption of the presentation and disclosure requirements for existing minority interests. All other requirements will be applied prospectively. The adoption of the accounting guidance did not have a material impact on the Corporation's financial statements.

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.

Effective January 1, 2009, ExxonMobil adopted the authoritative guidance for earnings per share as it relates to determining whether instruments granted in share-based payment transactions are participating securities. The guidance required that all unvested share-based payment awards that contain nonforfeitable rights to dividends should be included in the basic Earnings Per Share (EPS) calculation. Prior-year EPS numbers have been adjusted retrospectively on a consistent basis with 2009 reporting. This guidance did not affect the consolidated financial position or results of operations.

Attachment I

EXXON MOBIL CORPORATION THIRD QUARTER 2009

(millions of dollars, unless noted)

Third Quarter Nine Months

2009 2008
2009 2008 Earnings / Earnings Per Share 1















Total revenues and other income
82,260
137,737
220,745
392,663 Total costs and other deductions
73,056
111,044
196,174
323,065 Income before income taxes
9,204
26,693
24,571
69,598 Income taxes
4,333
11,327
11,052
31,155 Net income including noncontrolling interests
4,871
15,366
13,519
38,443 Net income attributable to noncontrolling interests
141
536
289
1,043 Net income attributable to ExxonMobil (U.S. GAAP)
4,730
14,830
13,230
37,400







Earnings per common share (dollars)
0.98
2.86
2.72
7.13







Earnings per common share







- assuming dilution (dollars)
0.98
2.85
2.71
7.09







Other Financial Data















Dividends on common stock







Total
2,011
2,063
6,031
6,040 Per common share (dollars)
0.42
0.40
1.24
1.15







Millions of common shares outstanding







At September 30




4,747
5,087 Average - assuming dilution 1
4,803
5,178
4,878
5,278







ExxonMobil share of equity at September 30




107,265
125,286 ExxonMobil share of capital employed at September 30




120,351
138,185







Income taxes
4,333
11,327
11,052
31,155 Sales-based taxes
6,805
9,327
18,927
27,297 All other taxes
9,729
11,856
27,442
35,760 Total taxes
20,867
32,510
57,421
94,212







ExxonMobil share of income taxes of







equity companies
515
870
1,616
2,763







1 See Accounting guidance adopted in first quarter 2009

Attachment II EXXON MOBIL CORPORATION THIRD QUARTER 2009

(millions of dollars)
Third Quarter
Nine Months

2009 2008
2009 2008 Earnings (U.S. GAAP)






Upstream






United States
709
1,879

1,882

5,544
Non-U.S.
3,303
9,092

9,445

24,224
Downstream






United States
(203 ) 978

134

1,669
Non-U.S.
528
2,035

1,836

4,068
Chemical






United States
315
257

477

643
Non-U.S.
561
830

1,116

2,159
Corporate and financing
(483 ) (241 )
(1,660 )
(907 ) Net income attributable to ExxonMobil
4,730
14,830

13,230

37,400
Special Items






Upstream






United States
0
0

0

0
Non-U.S.
0
1,620

0

1,620
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
(170 )
(140 )
(460 ) Corporate total
0
1,450

(140 )
1,160
Earnings Excluding Special Items






Upstream






United States
709
1,879

1,882

5,544
Non-U.S.
3,303
7,472

9,445

22,604
Downstream






United States
(203 ) 978

134

1,669
Non-U.S.
528
2,035

1,836

4,068
Chemical






United States
315
257

477

643
Non-U.S.
561
830

1,116

2,159
Corporate and financing
(483 ) (71 )
(1,520 )
(447 ) Corporate total 4,730 13,380 13,370 36,240 Cash flow from operations and asset sales (billions of dollars)


Net cash provided by operating activities
(U.S. GAAP)
8.8
14.4

19.9

49.2
Sales of subsidiaries, investments and property, plant and equipment
0.2
2.6

1.1

4.2
Cash flow from operations and asset sales 9.0 17.0 21.0 53.4










Attachment III




EXXON MOBIL CORPORATION THIRD QUARTER 2009











Third Quarter
Nine Months

2009
2008
2009
2008 Net production of crude oil







and natural gas liquids,







thousands of barrels daily (kbd)







United States
373
340
383
364 Canada/South America
267
283
272
287 Europe
350
397
381
431 Africa
666
639
694
637 Asia Pacific/Middle East
494
510
474
506 Russia/Caspian
185
121
181
158 Worldwide
2,335
2,290
2,385
2,383







Natural gas production available for sale,







millions of cubic feet daily (mcfd)







United States
1,260
1,163
1,257
1,256 Canada/South America
646
634
643
649 Europe
2,551
2,768
3,452
3,713 Africa
16
33
21
32 Asia Pacific/Middle East
3,510
3,135
3,263
3,086 Russia/Caspian
146
87
142
106 Worldwide
8,129
7,820
8,778
8,842







Oil-equivalent production (koebd) 1
3,690
3,593
3,848
3,857







































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




EXXON MOBIL CORPORATION THIRD QUARTER 2009











Third Quarter
Nine Months

2009
2008
2009
2008 Refinery throughput (kbd)







United States
1,751
1,592
1,773
1,720 Canada
417
468
414
448 Europe
1,542
1,647
1,540
1,603 Asia Pacific
1,349
1,328
1,321
1,363 Other
293
319
293
316 Worldwide
5,352
5,354
5,341
5,450







Petroleum product sales (kbd)







United States
2,462
2,437
2,525
2,523 Canada
412
452
411
439 Europe
1,607
1,736
1,615
1,721 Asia Pacific
1,292
1,338
1,328
1,356 Other
528
725
528
722 Worldwide
6,301
6,688
6,407
6,761







Gasolines, naphthas
2,593
2,622
2,556
2,641 Heating oils, kerosene, diesel
1,851
2,063
2,009
2,073 Aviation fuels
553
640
541
625 Heavy fuels
596
602
585
639 Specialty products
708
761
716
783 Worldwide
6,301
6,688
6,407
6,761







Chemical prime product sales,







thousands of metric tons (kt)







United States
2,525
2,248
7,087
7,505 Non-U.S.
3,831
3,812
11,063
11,851 Worldwide
6,356
6,060
18,150
19,356







Attachment V




EXXON MOBIL CORPORATION THIRD QUARTER 2009

(millions of dollars)







Third Quarter
Nine Months

2009
2008
2009
2008 Capital and Exploration Expenditures







Upstream







United States
858
1,000
2,602
2,334 Non-U.S.
4,049
4,277
11,576
12,295 Total
4,907
5,277
14,178
14,629 Downstream







United States
396
421
1,156
1,198 Non-U.S.
435
423
1,138
1,377 Total
831
844
2,294
2,575 Chemical







United States
66
123
237
345 Non-U.S.
681
598
2,098
1,739 Total
747
721
2,335
2,084







Other
8
11
22
26







Worldwide
6,493
6,853
18,829
19,314















Exploration expenses charged to income







included above







Consolidated affiliates







United States
60
45
155
144 Non-U.S.
434
353
1,178
924 Equity companies - ExxonMobil share







United States
0
0
0
0 Non-U.S.
7
6
9
13 Worldwide
501
404
1,342
1,081







Attachment VI


EXXON MOBIL CORPORATION EARNINGS











$ Millions
$ Per Common Share 1,2





2005





First Quarter
7,860
1.23 Second Quarter
7,640
1.21 Third Quarter
9,920
1.58 Fourth Quarter
10,710
1.72 Year
36,130
5.74





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











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 See Accounting guidance adopted in first quarter 2009

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