Exxon Mobil Corporation Announces Estimated Fourth Quarter 2011 Results

31.01.2012  |  Business Wire

Exxon Mobil Corporation (NYSE:XOM):

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

'ExxonMobil recorded strong results while investing at record levels
to develop new supplies of energy that are critical to meeting growing
world demand, and supporting economic recovery and growth.

'Fourth quarter earnings of $9.4 billion were up 2% from the fourth
quarter of 2010.Full year 2011 earnings were $41.1 billion, up
35% from 2010, reflecting higher crude oil and natural gas realizations,
improved refining and chemical margins, and gains on asset sales.

'Capital and exploration expenditures were a record $36.8 billion in
2011.

'Oil-equivalent production was up 1% from 2010.Excluding the
impacts of entitlement volumes, OPEC quota effects and divestments,
production was up 4%.

'In 2011, the Corporation distributed $29 billion to shareholders
through dividends and share purchases to reduce shares outstanding.?

FOURTH QUARTER HIGHLIGHTS

• 
  Earnings were $9,400 million, an increase of 2% or $150 million from
  the fourth quarter of 2010.
  
• 
  Earnings per share (assuming dilution) were $1.97, an increase of 6%
  from the fourth quarter of 2010.
  
• 
  Capital and exploration expenditures were $10.0 billion, consistent
  with the fourth quarter of 2010.
  
• 
  Oil-equivalent production decreased 9% from the fourth quarter of
  2010. Excluding the impacts of entitlement volumes, OPEC quota effects
  and divestments, production was down 4%.
  
• 
  Cash flow from operations and asset sales was $17.6 billion, including
  proceeds associated with asset sales of $6.9 ?billion.
  
• 
  Share purchases to reduce shares outstanding were $5 billion.
  
• 
  Dividends per share of $0.47 increased 7% compared to the fourth
  quarter of 2010.
  
• 
  ExxonMobil was the high bidder on 50 blocks in the most recent U.S.
  Gulf of Mexico lease sale, providing new exploration opportunities.
  
• 
  Construction of a lower-sulfur fuels project began at the joint Saudi
  Aramco and ExxonMobil refinery in Yanbu, Saudi Arabia.
  

Fourth Quarter 2011 vs. Fourth Quarter 2010

Upstream earnings were $8,829 ?million, up $1,349 million from the fourth
quarter of 2010. Higher liquids and natural gas realizations increased
earnings by $1,990 million. Lower volumes and production mix effects
decreased earnings by $1,450 million. All other items, primarily gains
on asset sales, increased earnings by $810 ?million.

On an oil-equivalent basis, production decreased 9% from the fourth
quarter of 2010. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was down 4%.

Liquids production totaled 2,250 ?kbd (thousands of barrels per day),
down 276 kbd from the fourth quarter of 2010. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, liquids
production was down 3%, mainly due to field decline.

Fourth quarter natural gas production was 13,677 ?mcfd (millions of cubic
feet per day), down 975 mcfd from 2010, as U.S. growth was more than
offset by field decline and lower demand in Europe.

Earnings from U.S. Upstream operations were $1,184 ?million, $133 ?million
lower than the fourth quarter of 2010. Non-U.S. Upstream earnings were
$7,645 million, up $1,482 ?million from last year.

Downstream earnings of $425 ?million were down $725 ?million from the
fourth quarter of 2010. Weaker margins, principally in refining,
decreased earnings $740 million. Volume and mix effects decreased
earnings by $30 million, while all other items increased earnings by
$40 ?million. Petroleum product sales of 6,493 ?kbd were 62 ?kbd lower than
last year's fourth quarter.

Earnings from the U.S. Downstream were $30 ?million, down $196 ?million
from the fourth quarter of 2010. Non-U.S. Downstream earnings of
$395 ?million were $529 ?million lower than last year.

Chemical earnings of $543 ?million were $524 ?million lower than the
fourth quarter of 2010. Weaker margins decreased earnings by $230
million, while lower volumes and mix effects reduced earnings by $40
million. Other items, mainly unfavorable tax effects, decreased earnings
by $250 million. Fourth quarter prime product sales of 6,271 ?kt
(thousands of metric tons) were 78 ?kt lower than last year's fourth
quarter.

Corporate and financing expenses were $397 ?million, down $50 ?million
from the same period in 2010.

During the fourth quarter of 2011, Exxon Mobil Corporation purchased 69
million shares of its common stock for the treasury at a gross cost of
$5.4 billion. These purchases included $5 ?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. Share
purchases to reduce shares outstanding are currently anticipated to
equal $5 ?billion in the first quarter of 2012. 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 2011 vs. Full Year 2010

Earnings of $41,060 ?million increased $10,600 million from 2010.
Earnings per share increased 35% to $8.42.

FULL YEAR HIGHLIGHTS

• 
  Earnings were $41,060 million, up 35%.
  
• 
  Earnings per share (assuming dilution) increased 35% to $8.42.
  
• 
  Oil-equivalent production was up 1% from 2010. Excluding the impacts
  of entitlement volumes, OPEC quota effects and divestments, production
  was up 4%.
  
• 
  Cash flow from operations and asset sales was $66.5 billion, including
  proceeds associated with asset sales of $11.1 ?billion.
  
• 
  The Corporation distributed $29 billion to shareholders in 2011
  through dividends and share purchases to reduce shares outstanding.
  
• 
  Capital and exploration expenditures were a record $36.8 billion, up
  14% from 2010.
  

Upstream earnings were $34,439 ?million, up $10,342 million from 2010.
Higher crude oil and natural gas realizations increased earnings by
$10.6 ?billion, while volume and production mix effects decreased
earnings by $2.5 billion. All other items increased earnings by $2.2
billion, driven by higher gains on asset sales of $2.7 billion, partly
offset by increased activity.

On an oil-equivalent basis, production was up 1% compared to 2010.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, production was up 4%.

Liquids production of 2,312 ?kbd decreased 110 kbd from 2010. Excluding
the impacts of entitlement volumes, OPEC quota effects and divestments,
liquids production was in line with 2010, as higher volumes from Qatar,
the U.S., and Iraq offset field decline.

Natural gas production of 13,162 ?mcfd increased 1,014 ?mcfd from 2010,
driven by additional U.S. unconventional gas volumes and project
ramp-ups in Qatar.

Earnings from U.S. Upstream operations for 2011 were $5,096 ?million, an
increase of $824 ?million. Earnings outside the U.S. were
$29,343 ?million, up $9,518 ?million.

Downstream earnings of $4,459 ?million increased $892 million from 2010.
Margins, mainly refining, increased earnings by $800 million. Volume and
mix effects improved earnings by $630 million. All other items,
primarily the absence of favorable tax effects and higher expenses,
decreased earnings by $540 million. Petroleum product sales of 6,413 ?kbd
were in line with 2010.

U.S. Downstream earnings were $2,268 ?million, up $1,498 ?million from
2010. Non-U.S. Downstream earnings were $2,191 million, $606 ?million
lower than last year.

Chemical earnings of $4,383 ?million were down $530 ?million from 2010.
Stronger margins increased earnings by $260 million, while lower volumes
reduced earnings by $180 ?million. Other items, including unfavorable tax
effects and higher planned maintenance expense, decreased earnings by
$610 million. Prime product sales of 25,006 ?kt were down 885 ?kt from
2010.

Corporate and financing expenses were $2,221 ?million, up $104 million
from 2010.

Gross share purchases for 2011 were $22 billion, reducing shares
outstanding by 278 million shares.

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 January 31, 2012.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; and share purchase levels, could differ
materially due to factors including: changes inoil 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 2010 Form10-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 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.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.