EX-99.1 2 f8k4q991.htm Exxon Mobil Corporation - 8k Press Release

EXHIBIT 99.1

News Release

[f8k4q991002.gif]

 

Exxon Mobil Corporation

 

5959 Las Colinas Boulevard

 

Irving, TX  75039

 

972 444 1107 Telephone

 

972 444 1138 Facsimile

 

 

 

 

FOR IMMEDIATE RELEASE

 

MONDAY, JANUARY 31, 2011

 

 

 


EXXON MOBIL CORPORATION ANNOUNCES ESTIMATED

FOURTH QUARTER 2010 RESULTS



 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

2010

2009

%

2010

2009

%

Earnings Excluding Special Items 1

 

 

 

 

 

 

   $ Millions

9,250

6,050

53

30,460

19,420

57

   $ Per Common Share

 

 

 

 

 

 

      Assuming Dilution

1.85

1.27

46

6.22

4.01

55

 

 

 

 

 

 

 

Special Items

 

 

 

 

 

 

   $ Millions

0

0

 

0

(140)

 

 

 

 

 

 

 

 

Earnings

 

 

 

 

 

 

   $ Millions

9,250

6,050

53

30,460

19,280

58

   $ Per Common Share

 

 

 

 

 

 

      Assuming Dilution

1.85

1.27

46

6.22

3.98

56

 

 

 

 

 

 

 

Capital and Exploration

 

 

 

 

 

 

Expenditures - $ Millions

10,061

8,263

22

32,226

27,092

19

 

 

 

 

 

 

 

1 See page 8 for a reference to earnings


EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

“ExxonMobil continues to deliver strong financial and operating results.  The full year 2010 earnings, excluding special items, were $30.5 billion, up 57% from 2009, driven by higher crude oil and natural gas realizations, stronger refining margins and record Chemical performance.  Fourth quarter earnings were $9.3 billion, an increase of 53%.


Oil-equivalent production was 19% higher than the fourth quarter of 2009, driven by our world-class assets in Qatar and our growing unconventional gas production.


Capital and exploration expenditures were $32.2 billion in 2010, reflecting a record level of investment.


The Corporation returned over $19 billion to shareholders in 2010 through dividends and share purchases to reduce shares outstanding.”





FOURTH QUARTER HIGHLIGHTS


·

Earnings were $9,250 million, an increase of 53% or $3,200 million from the fourth quarter of 2009.


·

Earnings per share were $1.85, an increase of 46%.


·

Capital and exploration expenditures were $10.1 billion, up 22% from the fourth quarter of 2009.


·

Oil-equivalent production increased 19% from the fourth quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 18%.


·

Cash flow from operations and asset sales was $14.7 billion, including asset sales of    $1.7 billion.


·

Share purchases to reduce shares outstanding were $5 billion.


·

Dividends per share of $0.44 increased by 5% compared to the fourth quarter of 2009.


·

A joint venture agreement was signed with Qatar Petroleum to progress the Barzan Project.  The project is expected to supply 1.4 billion cubic feet per day of natural gas with first gas planned for 2014.

 

·

Fayetteville shale assets of Petrohawk Energy were acquired, including 150 thousand net acres and 95 million cubic feet per day of net production, providing an attractive addition to XTO’s existing position in the Fayetteville trend.


·

Expansion of the carbon dioxide capture plant at our LaBarge facility in Wyoming was completed.  The expansion increases the amount of carbon dioxide captured by the plant by 50%.  The facility is now capable of capturing, in one day, a carbon dioxide volume equivalent to the emissions of 1.5 million cars.





-2-


Fourth Quarter 2010 vs. Fourth Quarter 2009


Upstream earnings were $7,480 million, up $1,700 million from the fourth quarter of 2009.  Higher crude oil and natural gas realizations increased earnings by nearly $1.4 billion.  Higher liquids and gas volumes improved earnings by $560 million while higher operating expenses reduced earnings by $200 million.  


On an oil-equivalent basis, production increased 19% from the fourth quarter of 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 18%.


Liquids production totaled 2,526 kbd (thousands of barrels per day), up 133 kbd or nearly 6% from the fourth quarter of 2009.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 6%, as increased production from projects in Qatar and the addition of XTO volumes more than offset net field decline.


Fourth quarter natural gas production was 14,652 mcfd (millions of cubic feet per day), up 3,935 mcfd from 2009, driven by additional U.S. unconventional gas volumes and project ramp-ups in Qatar.


Earnings from U.S. Upstream operations were $1,317 million, $306 million higher than the fourth quarter of 2009. Non-U.S. Upstream earnings were $6,163 million, up $1,394 million from last year.


Downstream earnings of $1,150 million were up $1,339 million from the fourth quarter of 2009, driven by higher industry refining margins which increased earnings by $1.3 billion.  Petroleum product sales of 6,555 kbd were 66 kbd higher than last year's fourth quarter, mainly reflecting higher demand.


Earnings from the U.S. Downstream were $226 million, up $513 million from the fourth quarter of 2009. Non-U.S. Downstream earnings of $924 million were $826 million higher than last year.




-3-



Chemical earnings of $1,067 million were $351 million higher than the fourth quarter of 2009. Improved margins increased earnings by $380 million. Fourth quarter prime product sales of 6,349 kt (thousands of metric tons) were 326 kt lower than the prior year.


Corporate and financing expenses were $447 million, up $190 million from the fourth quarter of 2009 due to financing activities.


During the fourth quarter of 2010, Exxon Mobil Corporation purchased 83 million shares of its common stock for the treasury at a gross cost of $5.8 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 2011.  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.








-4-


Full Year 2010 vs. Full Year 2009


Earnings of $30,460 million ($6.22 per share) increased $11,180 million from 2009.  Excluding special items, earnings for 2010 increased $11,040 million from 2009.



FULL YEAR HIGHLIGHTS


·

Earnings excluding special items were $30,460 million, up 57%.


·

Earnings per share excluding special items increased 55% to $6.22.


·

Earnings were up 58% from 2009. Earnings for 2009 included a special charge of $140 million for interest related to the Valdez punitive damages award.  Earnings for the full year of 2010 did not include any special items.


·

Oil-equivalent production was up 13% from 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 14%.


·

Cash flow from operations and asset sales was $51.7 billion, including $3.3 billion from asset sales.


·

The Corporation distributed over $19 billion to shareholders in 2010 through dividends and share purchases to reduce shares outstanding.


·

Capital and exploration expenditures were $32.2 billion, up 19% versus 2009.



Upstream earnings were $24,097 million, up $6,990 million from 2009. Higher realizations increased earnings approximately $6.5 billion.  Higher volumes increased earnings by $1.2 billion, while all other items, including higher operating costs, decreased earnings by $690 million.


On an oil-equivalent basis, production was up 13% compared to 2009. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 14%.


Liquids production of 2,422 kbd increased 35 kbd compared with 2009.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production increased 2% from 2009, as project ramp-ups in Qatar and the addition of XTO were offset by net field decline.



-5-


Natural gas production of 12,148 mcfd increased 2,875 mcfd from 2009, driven by higher volumes from Qatar projects and additional U.S. unconventional gas volumes.


Earnings from U.S. Upstream operations for 2010 were $4,272 million, an increase of $1,379 million from 2009.  Non-U.S. Upstream earnings were $19,825 million, up $5,611 million from 2009.


Downstream earnings of $3,567 million were $1,786 million higher than 2009.  Higher industry refining margins increased earnings by $1.2 billion.  Positive volume and mix effects increased earnings by $420 million, while all other items, including lower operating expenses, increased earnings by $210 million.  Petroleum product sales of 6,414 kbd decreased 14 kbd.


U.S. Downstream earnings were $770 million, up $923 million from 2009. Non-U.S. Downstream earnings were $2,797 million, $863 million higher than last year.


Chemical earnings were a record $4,913 million, up $2,604 million from 2009. Improved margins increased earnings by $2 billion while higher volumes increased earnings about $380 million. Prime product sales of 25,891 kt were up 1,066 kt from 2009.


Corporate and financing expenses excluding special items were $2,117 million, up $340 million from 2009 mainly due to a tax charge related to the U.S. health care legislation during the first quarter of 2010 and financing activities.


Gross share purchases for 2010 were $13 billion, reducing shares outstanding by 199 million shares.


Estimates of key financial and operating data follow.  



-6-


ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. Central time on January 31, 2011.  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; 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.




-7-



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.





-8-



 

Attachment I

 

 

 

 

EXXON MOBIL CORPORATION

 

 

FOURTH QUARTER 2010

 

 

(millions of dollars, unless noted)

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2010

2009

 

2010

2009

 

 

Earnings / Earnings Per Share

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total revenues and other income

105,186

89,841

 

383,221

310,586

 

 

Total costs and other deductions

89,859

79,635

 

330,262

275,809

 

 

Income before income taxes

15,327

10,206

 

52,959

34,777

 

 

Income taxes

5,811

4,067

 

21,561

15,119

 

 

Net income including noncontrolling interests

9,516

6,139

 

31,398

19,658

 

 

Net income attributable to noncontrolling interests

266

89

 

938

378

 

 

Net income attributable to ExxonMobil (U.S. GAAP)

9,250

6,050

 

30,460

19,280

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

1.86

1.27

 

6.24

3.99

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

- assuming dilution (dollars)

1.85

1.27

 

6.22

3.98

 

 

 

 

 

 

 

 

 

 

Other Financial Data

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Dividends on common stock

 

 

 

 

 

 

 

Total

2,212

1,992

 

8,498

8,023

 

 

Per common share (dollars)

0.44

0.42

 

1.74

1.66

 

 

 

 

 

 

 

 

 

 

Millions of common shares outstanding

 

 

 

 

 

 

 

At December 31

 

 

 

4,979

4,727

 

 

Average - assuming dilution

5,031

4,760

 

4,897

4,848

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of equity at December 31

 

 

 

146,839

110,569

 

 

ExxonMobil share of capital employed at December 31

 

 

166,036

124,398

 

 

 

 

 

 

 

 

 

 

Income taxes

5,811

4,067

 

21,561

15,119

 

 

Sales-based taxes

7,614

7,009

 

28,547

25,936

 

 

All other taxes

10,463

10,129

 

39,127

37,571

 

 

Total taxes

23,888

21,205

 

89,235

78,626

 

 

 

 

 

 

 

 

 

 

ExxonMobil share of income taxes of

 

 

 

 

 

 

 

equity companies

1,367

873

 

4,058

2,489

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




-9-



 

Attachment II

 

 

 

EXXON MOBIL CORPORATION

 

 

FOURTH QUARTER 2010

 

 

(millions of dollars)

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2010

2009

 

2010

2009

 

 

Earnings (U.S. GAAP)

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

United States

1,317

1,011

 

4,272

2,893

 

 

Non-U.S.

6,163

4,769

 

19,825

14,214

 

 

Downstream

 

 

 

 

 

 

 

United States

226

(287)

 

770

(153)

 

 

Non-U.S.

924

98

 

2,797

1,934

 

 

Chemical

 

 

 

 

 

 

 

United States

522

292

 

2,422

769

 

 

Non-U.S.

545

424

 

2,491

1,540

 

 

Corporate and financing

(447)

(257)

 

(2,117)

(1,917)

 

 

Net income attributable to ExxonMobil

9,250

6,050

 

30,460

19,280

 

 

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

0

 

0

(140)

 

 

Corporate total

0

0

 

0

(140)

 

 

Earnings Excluding Special Items

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

United States

1,317

1,011

 

4,272

2,893

 

 

Non-U.S.

6,163

4,769

 

19,825

14,214

 

 

Downstream

 

 

 

 

 

 

 

United States

226

(287)

 

770

(153)

 

 

Non-U.S.

924

98

 

2,797

1,934

 

 

Chemical

 

 

 

 

 

 

 

United States

522

292

 

2,422

769

 

 

Non-U.S.

545

424

 

2,491

1,540

 

 

Corporate and financing

(447)

(257)

 

(2,117)

(1,777)

 

 

Corporate total

9,250

6,050

 

30,460

19,420

 

 

Cash flow from operations and asset sales (billions of dollars)

 

 

 

 

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

13.0

8.6

 

48.4

28.5

 

 

Sales of subsidiaries, investments and property, plant and equipment

1.7

0.3

 

3.3

1.4

 

 

Cash flow from operations and asset sales

14.7

8.9

 

51.7

29.9

 




-10-



 

Attachment III

 

 

 

 

 

 

 

 

 

 

 

EXXON MOBIL CORPORATION

 

 

FOURTH QUARTER 2010

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2010

2009

 

2010

2009

 

 

Net production of crude oil

 

 

 

 

 

 

 

and natural gas liquids,

 

 

 

 

 

 

 

thousands of barrels daily (kbd)

 

 

 

 

 

 

 

United States

455

385

 

408

384

 

 

Canada/South America

266

255

 

263

267

 

 

Europe

335

372

 

335

379

 

 

Africa

618

657

 

628

685

 

 

Asia Pacific/Middle East

639

537

 

597

490

 

 

Russia/Caspian

213

187

 

191

182

 

 

Worldwide

2,526

2,393

 

2,422

2,387

 

 

 

 

 

 

 

 

 

 

Natural gas production available for sale,

 

 

 

 

 

 

 

millions of cubic feet daily (mcfd)

 

 

 

 

 

 

 

United States

3,869

1,298

 

2,596

1,275

 

 

Canada/South America

564

641

 

569

643

 

 

Europe

4,596

4,401

 

3,836

3,689

 

 

Africa

9

14

 

14

19

 

 

Asia Pacific/Middle East

5,409

4,180

 

4,946

3,494

 

 

Russia/Caspian

205

183

 

187

153

 

 

Worldwide

14,652

10,717

 

12,148

9,273

 

 

 

 

 

 

 

 

 

 

Oil-equivalent production (koebd) 1

4,968

4,179

 

4,447

3,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 



-11-



 

Attachment IV

 

 

 

 

 

 

 

 

 

 

 

EXXON MOBIL CORPORATION

 

 

FOURTH QUARTER 2010

 

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2010

2009

 

2010

2009

 

 

Refinery throughput (kbd)

 

 

 

 

 

 

 

United States

1,732

1,748

 

1,753

1,767

 

 

Canada

467

412

 

444

413

 

 

Europe

1,501

1,571

 

1,538

1,548

 

 

Asia Pacific

1,307

1,348

 

1,249

1,328

 

 

Other

291

300

 

269

294

 

 

Worldwide

5,298

5,379

 

5,253

5,350

 

 

 

 

 

 

 

 

 

 

Petroleum product sales (kbd)

 

 

 

 

 

 

 

United States

2,581

2,516

 

2,511

2,523

 

 

Canada

475

421

 

450

413

 

 

Europe

1,576

1,652

 

1,611

1,625

 

 

Asia Pacific

1,277

1,335

 

1,241

1,329

 

 

Other

646

565

 

601

538

 

 

Worldwide

6,555

6,489

 

6,414

6,428

 

 

 

 

 

 

 

 

 

 

Gasolines, naphthas

2,615

2,621

 

2,611

2,573

 

 

Heating oils, kerosene, diesel

2,106

2,027

 

1,951

2,013

 

 

Aviation fuels

472

520

 

476

536

 

 

Heavy fuels

602

636

 

603

598

 

 

Specialty products

760

685

 

773

708

 

 

Worldwide

6,555

6,489

 

6,414

6,428

 

 

 

 

 

 

 

 

 

 

Chemical prime product sales,

 

 

 

 

 

 

 

thousands of metric tons (kt)

 

 

 

 

 

 

 

United States

2,214

2,562

 

9,815

9,649

 

 

Non-U.S.

4,135

4,113

 

16,076

15,176

 

 

Worldwide

6,349

6,675

 

25,891

24,825

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 




-12-



 

Attachment V

 

 

 

 

 

 

 

 

 

 

 

EXXON MOBIL CORPORATION

 

 

FOURTH QUARTER 2010

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

Fourth Quarter

 

Twelve Months

 

 

 

2010

2009

 

2010

2009

 

 

Capital and Exploration Expenditures

 

 

 

 

 

 

 

Upstream

 

 

 

 

 

 

 

United States

2,453

983

 

6,349

3,585

 

 

Non-U.S.

6,346

5,543

 

20,970

17,119

 

 

Total

8,799

6,526

 

27,319

20,704

 

 

Downstream

 

 

 

 

 

 

 

United States

170

355

 

982

1,511

 

 

Non-U.S.

519

547

 

1,523

1,685

 

 

Total

689

902

 

2,505

3,196

 

 

Chemical

 

 

 

 

 

 

 

United States

83

82

 

279

319

 

 

Non-U.S.

435

731

 

1,936

2,829

 

 

Total

518

813

 

2,215

3,148

 

 

 

 

 

 

 

 

 

 

Other

55

22

 

187

44

 

 

 

 

 

 

 

 

 

 

Worldwide

10,061

8,263

 

32,226

27,092

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Exploration expenses charged to income

 

 

 

 

 

 

 

included above

 

 

 

 

 

 

 

Consolidated affiliates

 

 

 

 

 

 

 

United States

121

64

 

283

219

 

 

Non-U.S.

427

617

 

1,855

1,795

 

 

Equity companies - ExxonMobil share

 

 

 

 

 

 

 

United States

1

1

 

4

1

 

 

Non-U.S.

9

3

 

21

12

 

 

Worldwide

558

685

 

2,163

2,027

 

 

 

 

 

 

 

 

 




-13-



 

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

 

 

Third Quarter

7,350

 

1.44

 

 

Fourth Quarter

9,250

 

1.86

 

 

Year

30,460

 

6.24

 

 

 

 

 

 

 

 

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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