Exxon Mobil Corporation Announces Estimated Second Quarter 2012 Results

26.07.2012  |  Business Wire

Exxon
Mobil Corporation (NYSE:XOM):

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

'Second quarter results reflect our ongoing commitment to develop and
deliver the energy needed to help meet global demand and underpin
economic recovery and growth.Despite global economic
uncertainty, we continue to invest throughout the business cycle taking
a long-term view of resource development.

'Second quarter earnings of $15.9 billion included a net gain of $7.5
billion associated with divestments and tax-related items.Excluding
these items, second quarter earnings were $8.4 billion.

'Capital and exploration expenditures were $9.3 billion in the second
quarter and a record $18.2 billion for the first six months of 2012 as
we progress our plans to invest about $37 ?billion per year over the next
five years to help meet the global demand for energy.

'The Corporation distributed $7.7 billion to shareholders in the
second quarter through dividends and share purchases to reduce shares
outstanding.?

SECOND QUARTER HIGHLIGHTS

• 
  Earnings of $15,910 million increased $5,230 million or 49% from the
  second quarter of 2011. Earnings included a net gain of $7.5 billion
  associated with divestments and tax-related items.
  
• 
  On June 1, ExxonMobil completed the restructuring of its Downstream
  and Chemical holdings in Japan. Under the restructuring, TonenGeneral
  Sekiyu K.K. (TG) purchased ExxonMobil′s shares in a wholly-owned
  affiliate in Japan for approximately $3.9 billion. As a result,
  ExxonMobil′s effective ownership of TG was reduced from 50% to 22%.
  
• 
  Earnings per share (assuming dilution) were $3.41, an increase of 56%.
  
• 
  Capital and exploration expenditures were $9.3 billion, down 9% from
  the second quarter of 2011.
  
• 
  Oil-equivalent production decreased 5.6% from the second quarter of
  2011. Excluding the impacts of entitlement volumes, OPEC quota effects
  and divestments, production was essentially flat.
  
• 
  Cash flow from operations and asset sales was $13.9 billion, including
  proceeds associated with asset sales of $3.7 ?billion.
  
• 
  Share purchases to reduce shares outstanding were $5 billion.
  
• 
  Dividends per share of $0.57 increased 21% compared to the second
  quarter of 2011.
  
• 
  ExxonMobil and Rosneft signed agreements to jointly develop tight oil
  reserves in Western Siberia and establish a joint Arctic Research
  Center for Offshore Developments.
  
• 
  ExxonMobil has filed permit applications to progress plans for a
  world-class petrochemical expansion on the U.S. Gulf Coast, in
  anticipation of a 2016 start-up. The potential project would include a
  new ethane cracker and premium product facilities at ExxonMobil′s
  integrated Baytown complex in Texas.
  
• 
  ExxonMobil and joint venture partner Saudi Basic Industries
  Corporation will proceed with construction of a world-scale specialty
  elastomers facility. The 400 thousand metric tons per year facility
  will be integrated with the existing Al Jubail complex in Saudi
  Arabia, and completion is anticipated in 2015.
  

Second Quarter 2012 vs. Second Quarter 2011

Upstream earnings were $8,358 ?million, down $183 million from the second
quarter of 2011. Lower liquids and U.S. natural gas realizations
decreased earnings by $870 ?million, while lower sales volumes reduced
earnings by $330 million. All other items, including gains on asset
sales mainly in Angola, increased earnings by $1.0 ?billion.

On an oil-equivalent basis, production decreased 5.6% from the second
quarter of 2011. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was essentially flat.

Liquids production totaled 2,208 ?kbd (thousands of barrels per day),
down 143 kbd from the second quarter of 2011. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, liquids
production was down about 1%, as field decline was mostly offset by
lower downtime and ramp-up of Angola and Nigeria projects.

Second quarter natural gas production was 11,661 ?mcfd (millions of cubic
feet per day), down 606 mcfd from 2011. Excluding the impacts of
entitlement volumes and divestments, natural gas production was up about
1%, as higher demand and lower downtime more than offset field decline.

Earnings from U.S. Upstream operations were $678 ?million, $771 ?million
lower than the second quarter of 2011. Non-U.S. Upstream earnings were
$7,680 million, up $588 ?million from the prior year.

Downstream earnings of $6,646 ?million were up $5.3 ?billion from the
second quarter of 2011. The gain associated with the Japan restructuring
contributed $5.3 billion. Improved margins and volume and mix effects
increased earnings by $670 million. All other items, including
unfavorable foreign exchange effects, higher operating expenses, and
one-time tax items, decreased earnings $670 million. Petroleum product
sales of 6,171 ?kbd were 160 ?kbd lower than last year's second quarter.

Earnings from the U.S. Downstream were $834 ?million, up $100 ?million
from the second quarter of 2011. Non-U.S. Downstream earnings of
$5,812 ?million were $5,190 ?million higher than last year.

Chemical earnings of $1,449 ?million were $128 ?million higher than the
second quarter of 2011. The gain associated with the Japan restructuring
increased earnings by $630 ?million, while weaker margins decreased
earnings by $150 million. Volume and mix effects lowered earnings by
$100 million. All other items, mainly unfavorable foreign exchange
effects, decreased earnings by $250 million. Second quarter prime
product sales of 5,972 ?kt (thousands of metric tons) were 209 ?kt lower
than last year's second quarter.

Corporate and financing expenses of $543 ?million were flat with the
second quarter of 2011, as the benefit from the Japan restructuring was
offset by one-time tax items.

During the second quarter of 2012, Exxon Mobil Corporation purchased 60
million shares of its common stock for the treasury to reduce the number
of shares outstanding at a gross cost of $5.0 billion. Share purchases
to reduce shares outstanding are currently anticipated to equal
$5 ?billion in the third 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.

First Half 2012 vs. First Half 2011

Earnings of $25,360 ?million increased $4,030 million from 2011. Earnings
per share increased 25% to $5.41.

FIRST HALF HIGHLIGHTS

• 
  Earnings were $25,360 million, up 19% from the first half of 2011.
  
• 
  Earnings per share increased 25% to $5.41.
  
• 
  Oil-equivalent production was down 5.5% from 2011. Excluding the
  impacts of entitlement volumes, OPEC quota effects and divestments,
  production was down about 1%.
  
• 
  Cash flow from operations and asset sales was $35.7 billion, including
  proceeds associated with asset sales of $6.2 billion.
  
• 
  The Corporation distributed nearly $15 billion to shareholders in the
  first half of 2012 through dividends and share purchases to reduce
  shares outstanding.
  
• 
  Capital and exploration expenditures were a record $18.2 billion.
  

Upstream earnings were $16,160 ?million, down $1,056 million from the
first half of 2011. Higher liquids realizations, partially offset by
lower gas realizations, increased earnings by $80 million. Lower sales
volumes decreased earnings by $1,140 million. Net gains on asset sales,
mainly in Angola, were offset by higher operating expenses and
unfavorable tax effects.

On an oil-equivalent basis, production was down 5.5% compared to the
same period in 2011. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was down about 1%.

Liquids production of 2,211 ?kbd decreased 164 kbd compared with 2011.
Excluding the impacts of entitlement volumes, OPEC quota effects and
divestments, liquids production was down about 1%, as field decline was
mostly offset by project ramp-up and lower downtime.

Natural gas production of 12,849 ?mcfd decreased 541 ?mcfd from 2011.
Excluding the impacts of entitlement volumes and divestments, natural
gas production was down about 1%, with field decline partly offset by
higher demand and lower downtime.

Earnings from U.S. Upstream operations for 2012 were $1,688 ?million,
down $1,040 ?million from 2011. Earnings outside the U.S. were
$14,472 ?million, essentially flat with the prior year.

Downstream earnings of $8,232 ?million increased $5,777 million from
2011. The gain associated with the Japan restructuring contributed $5.3
billion. Higher margins increased earnings by $610 million, while volume
and mix effects increased earnings by $220 million. All other items,
including higher operating expenses, one-time tax items, and unfavorable
foreign exchange effects, partially offset by other asset management
gains, decreased earnings by $360 million. Petroleum product sales of
6,243 ?kbd decreased 56 ?kbd from 2011.

U.S. Downstream earnings were $1,437 ?million, consistent with 2011.
Non-U.S. Downstream earnings were $6,795 million, an increase of
$5,768 ?million from last year.

Chemical earnings of $2,150 ?million were $687 ?million lower than 2011.
The gain associated with the Japan restructuring increased earnings by
$630 million, while weaker margins decreased earnings by $750 million.
Lower volumes decreased earnings by $70 million. All other items,
including unfavorable foreign exchange effects, higher operating
expenses, and tax items, decreased earnings by $500 ?million. Prime
product sales of 12,309 ?kt were down 194 ?kt from 2011.

Corporate and financing expenses were $1,182 ?million, flat with the
first half of 2011 as the benefit from the Japan restructuring was
offset by one-time tax items.

Gross share purchases through the first half of 2012 were $10.7 billion,
reducing shares outstanding by 127 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 July 26, 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; 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.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.