Exxon Mobil Corporation Announces Estimated Fourth Quarter 2012 Results

01.02.2013  |  Business Wire

Exxon
Mobil Corporation (NYSE:XOM):

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

'Energy is fundamental to economic growth and improved living
standards.ExxonMobil′s strong financial performance enables
continued investment in new energy supplies, which creates jobs and
supports economic expansion.

'Fourth quarter 2012 earnings were over $9.9 billion, up 6% from the
fourth quarter of 2011.Full year 2012 earnings were $44.9
billion, up 9% from 2011, with record earnings per share of $9.70.

'Capital and exploration expenditures were a record $39.8 billion in
2012 as we continue pursuing opportunities to find and produce new
supplies of oil and natural gas to meet global demand for energy.

'In 2012, the Corporation distributed over $30 billion to
shareholders through dividends and share purchases to reduce shares
outstanding.?

FOURTH QUARTER HIGHLIGHTS

• 
  Earnings of $9,950 million increased $550 million or 6% from the
  fourth quarter of 2011.
  
• 
  Earnings per share (assuming dilution) were $2.20, an increase of 12%
  from the fourth quarter of 2011.
  
• 
  Gains from asset sales in the fourth quarter of 2012 were nearly $600
  million, down $800 ?million from the prior year.
  
• 
  LIFO inventory gains were over $300 million for the fourth quarter of
  2012, similar to the 2011 level.
  
• 
  Capital and exploration expenditures were $12.4 billion, up 24% from
  the fourth quarter of 2011.
  
• 
  Oil-equivalent production decreased 5% from the fourth quarter of
  2011. Excluding the impacts of entitlement volumes, OPEC quota effects
  and divestments, production decreased 2%.
  
• 
  Cash flow from operations and asset sales was $14.0 billion, including
  proceeds associated with asset sales of $0.8 ?billion.
  
• 
  Share purchases to reduce shares outstanding were $5 billion.
  
• 
  Dividends per share of $0.57 increased 21% compared to the fourth
  quarter of 2011.
  
• 
  ExxonMobil commenced start-up operations at one of the world′s largest
  ethylene steam crackers, the centerpiece of the company′s
  multi-billion dollar expansion at its Singapore petrochemical complex.
  Powered by a new 220-megawatt cogeneration plant, the expansion adds
  2.6 million tonnes per year of new finished product capacity.
  
• 
  As announced on January 4, 2013, ExxonMobil will develop the Hebron
  oil field offshore the Canadian province of Newfoundland and Labrador
  using a gravity-based structure that will recover more than 700
  million barrels of oil, an increase versus earlier estimates. Capital
  cost for the project, which is expected to begin oil production around
  the end of 2017, is estimated at $14 billion. The platform is being
  designed for daily production of 150,000 barrels of oil.
  

Fourth Quarter 2012 vs. Fourth Quarter 2011

Upstream earnings were $7,762 ?million in the fourth quarter of 2012,
down $1,067 ?million from the fourth quarter of 2011. Lower liquids
realizations, partially offset by improved natural gas realizations,
decreased earnings by $70 ?million. Production volume and mix effects
reduced earnings by $400 million. All other items, including over $500
million of lower gains from asset sales, decreased earnings by a net
$600 ?million.

On an oil-equivalent basis, production decreased 5.2% from the fourth
quarter of 2011. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production decreased 2.1%.

Liquids production totaled 2,203 ?kbd (thousands of barrels per day),
down 47 kbd from the fourth quarter of 2011. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, liquids
production was down 1.4%, as field decline was partially offset by
project ramp-up in West Africa and lower downtime.

Fourth quarter natural gas production was 12,541 ?mcfd (millions of cubic
feet per day), down 1,136 mcfd from 2011. Excluding the impacts of
entitlement volumes and divestments, natural gas production was down
2.8%, as field decline was partially offset by higher demand and lower
downtime.

Earnings from U.S. Upstream operations were $1,604 ?million, $420 ?million
higher than the fourth quarter of 2011. Non-U.S. Upstream earnings were
$6,158 million, down $1,487 ?million from the prior year.

Downstream earnings were $1,768 ?million, up $1,343 ?million from the
fourth quarter of 2011. Stronger refining-driven margins increased
earnings by $1.2 billion, while volume and mix effects contributed an
additional $80 million. All other items increased earnings by about $80
million. Petroleum product sales of 6,108 ?kbd were 385 ?kbd lower than
last year's fourth quarter due mainly to the Japan restructuring and
divestments.

Earnings from the U.S. Downstream were $697 ?million, up $667 ?million
from the fourth quarter of 2011. Non-U.S. Downstream earnings of
$1,071 ?million were $676 ?million higher than last year.

Chemical earnings of $958 ?million were $415 million higher than the
fourth quarter of 2011. Higher margins, mainly commodities, increased
earnings by $330 million. All other items increased earnings by $90
million. Fourth quarter prime product sales of 5,901 ?kt (thousands of
metric tons) were 370 ?kt lower than last year's fourth quarter due
mainly to the Japan restructuring.

Corporate and financing expenses were $538 ?million for the fourth
quarter of 2012, up $141 million from the fourth quarter of 2011, due
mainly to tax impacts.

During the fourth quarter of 2012, Exxon Mobil Corporation purchased 59
million shares of its common stock for the treasury at a gross cost of
$5.3 billion. These purchases included $5.0 billion to reduce the number
of shares outstanding, with the balance used to acquire shares in
conjunction with the company′s benefit plans and programs. Share
purchases to reduce shares outstanding are currently anticipated to
equal $5 ?billion in the first quarter of 2013. 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.

Full Year 2012 vs. Full Year 2011

Earnings of $44,880 ?million increased $3,820 million from 2011. Earnings
per share increased 15% to $9.70.

FULL YEAR HIGHLIGHTS

• 
  Earnings were $44,880 million, up 9%.
  
• 
  Earnings include $9.9 billion of divestment and restructuring gains,
  mainly Japan of $6.5 ?billion.
  
• 
  Earnings per share increased 15% to $9.70.
  
• 
  Oil-equivalent production was down 6% from 2011. Excluding the impacts
  of entitlement volumes, OPEC quota effects and divestments, production
  was down 2%.
  
• 
  Cash flow from operations and asset sales was $63.8 billion, including
  proceeds associated with asset sales of $7.7 billion.
  
• 
  The Corporation distributed over $30 billion to shareholders in 2012
  through dividends and share purchases to reduce shares outstanding.
  
• 
  Capital and exploration expenditures were a record $39.8 billion.
  
• 
  The Corporation participated in three major liquids project start-ups
  in West Africa in 2012 with capacity of 350 thousand gross barrels of
  oil per day.
  

Upstream earnings were $29,895 ?million, down $4,544 million from 2011.
Lower liquids realizations, partly offset by improved natural gas
realizations, decreased earnings by about $100 million. Production
volume and mix effects decreased earnings by $2.3 ?billion. All other
items, including higher operating expenses, unfavorable tax items, lower
gains on asset sales, and unfavorable foreign exchange effects, reduced
earnings by $2.1 billion.

On an oil-equivalent basis, production was down 5.9% compared to 2011.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, production was down 1.7%.

Liquids production of 2,185 ?kbd decreased 127 kbd from 2011. Excluding
the impacts of entitlement volumes, OPEC quota effects and divestments,
liquids production was down 1.6%, as field decline was partly offset by
project ramp-up in West Africa and lower downtime.

Natural gas production of 12,322 ?mcfd decreased 840 ?mcfd from 2011.
Excluding the impacts of entitlement volumes and divestments, natural
gas production was down 1.9%, as field decline was partially offset by
higher demand and lower downtime.

Earnings from U.S. Upstream operations for 2012 were $3,925 ?million,
down $1,171 ?million from 2011. Earnings outside the U.S. were
$25,970 ?million, down $3,373 ?million.

Downstream earnings of $13,190 ?million increased $8,731 million from
2011. Stronger refining-driven margins increased earnings by $2.6
billion, while volume and mix effects increased earnings by about $200
million. All other items increased earnings by $5.9 ?billion due
primarily to the $5.3 billion gain associated with the Japan
restructuring and other divestment gains. Petroleum product sales of
6,174 ?kbd decreased 239 ?kbd from 2011 due mainly to the Japan
restructuring and divestments.

U.S. Downstream earnings were $3,575 ?million, up $1,307 million from
2011. Non-U.S. Downstream earnings were $9,615 million, an increase of
$7,424 ?million from last year.

Chemical earnings of $3,898 ?million were $485 ?million lower than 2011.
Margins decreased earnings by $440 million, while volume effects lowered
earnings by $100 ?million. All other items increased earnings by $50
million, as a $630 million gain associated with the Japan restructuring
and favorable tax impacts were mostly offset by unfavorable foreign
exchange effects and higher operating expenses. Prime product sales of
24,157 ?kt were down 849 ?kt from 2011.

Corporate and financing expenses were $2,103 ?million, down $118 million
from 2011.

Gross share purchases for 2012 were $21.1 billion, reducing shares
outstanding by 244 ?million shares.

Estimates of key financial and operating data follow.

ExxonMobil will discuss financial and operating results and other
matters on a webcast at 8:30 a.m. Central time on February 1, 2013.To
listen to the event live or in archive, go to our website at exxonmobil.com.

Cautionary statement

Statements 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; resource recoveries; and share purchase
levels, could differ materially due to factors including: changes in oil
or gas prices or other market or economic conditions affecting the oil
and gas industry, including the scope and duration of economic
recessions; the outcome of exploration and development efforts; changes
in law or government regulation, including tax and environmental
requirements; the outcome of commercial negotiations; 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 2011 Form 10-K.We
assume no duty to update these statements as of any future date.

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 proceeds associated with the sales of
subsidiaries, property, plant and equipment, and sales and returns of
investments 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.References in this release
to barrels of oil include amounts that are not yet classified as proved
reserves under SEC definitions but that we believe will ultimately be
produced.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.

The term 'project? as used in this release does not necessarily have
the same meaning as under SEC Rule 13q-1 relating to government payment
reporting.For example, a single project for purposes of the rule
may encompass numerous properties, agreements, investments,
developments, phases, work efforts, activities and components, each of
which we may also informally describe as a 'project.?

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.