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| Exxon Mobil Corporation Announces First Quarter 2006 Results |
| Net Income of $8.4 billion after $4.8 billion spent on capital and exploration projects |
| From the RD News Desk |
| Comment on this report |
| Exxon Mobil Corporation (NYSE:XOM)
today reported first quarter 2006 results. Net income of $8,400 million
($1.37 per share), increased $540 million from the first quarter of
2005. First quarter 2005 net income included a positive special item of
$460 million from the sale of ExxonMobil's interest in Sinopec.
Excluding this impact, first quarter 2006 earnings increased by $1,000
million.
ExxonMobil's Chairman Rex W. Tillerson Commented: "ExxonMobil's first quarter earnings excluding special items, were $8,400 million, up 14% from first quarter 2005. Higher crude oil and natural gas realizations and improved marketing margins were partly offset by lower chemical margins. Net income for the first quarter was up 7% from 2005. ExxonMobil continued its active investment program in the first quarter, spending $4.8 billion on capital and exploration projects, an increase of 41% or $1.4 billion versus 2005. In the first quarter of 2006, the results of our continuing long term investment program contributed to a 5% increase in production. The Corporation distributed a total of $7.0 billion to shareholders in the first quarter through dividends of $2.0 billion and share purchases to reduce shares outstanding of $5.0 billion, an increase of 67% versus the first quarter of 2005. As a consequence of the continued strengthening of our financial position, share purchases to reduce shares outstanding will be increased to $6.0 billion in the second quarter." First Quarter Highlights -- Earnings excluding special items were $8,400 million, an increase of 14% or $1,000 million from the first quarter of 2005. First quarter 2006 earnings were impacted by litigation and tax items. -- Net income was up 7%. There were no special items in first quarter 2006. First quarter 2005 net income included a positive special item of $460 million from the sale of ExxonMobil's interest in Sinopec. -- Cash flow from operations and asset sales was approximately $15.0 billion, including asset sales of $0.4 billion. -- Earnings per share excluding special items were $1.37, an increase of 19%, reflecting strong earnings and the reduction in the number of shares outstanding. -- ExxonMobil signed agreements with Abu Dhabi National Oil Company (ADNOC) for a 28% undivided interest in the Upper Zakum Oil Field. Upper Zakum is one of the world's largest oil fields with potential for substantial production growth. ExxonMobil, with ADNOC and other non-operating joint venture parties will provide support in pursuing the objective of increasing production by about 50% to a target of 750,000 (gross) barrels per day. -- ExxonMobil signed a Joint Operating Agreement (JOA) with P.T. Pertamina for the Cepu Contract Area located in East and Central Java, Indonesia. The Banyu Urip discovery on the Cepu Contract Area is estimated to contain more than 250 million barrels of oil (gross). At peak production, the field is expected to produce up to 165,000 barrels of oil per day (gross). The Area has potential for additional exploration and development opportunities. First Quarter 2006 vs. First Quarter 2005 Upstream earnings were $6,383 million, up $1,329 million from the first quarter of 2005. Earnings from U.S. Upstream operations were $1,280 million, $73 million lower than the first quarter of 2005. The combination of a litigation item and higher tax expenses reduced results by over 4 cents per share. Non-U.S. Upstream earnings were $5,103 million, up $1,402 million from 2005. Higher realizations were partly offset by negative foreign exchange impacts. On an oil-equivalent basis, production increased by 5% from the first quarter of 2005. Excluding the impact of divestments and entitlements, production increased 7%. Liquids production of 2,696 kbd (thousands of barrels per day) was 152 kbd higher. Higher production from projects in West Africa and increased volumes in Abu Dhabi were partly offset by mature field decline, and the impact of entitlements and divestments. Excluding entitlement and divestment effects, liquids production increased by 10%. First quarter natural gas production was 11,199 mcfd (millions of cubic feet per day) compared with 10,785 mcfd last year. Higher volumes from projects in Qatar and increased European demand were partly offset by the impact of mature field decline. Downstream earnings excluding special items, were $1,271 million, up $128 million from the first quarter 2005, primarily due to higher marketing margins, improved refining operations and positive foreign exchange effects. Petroleum product sales were 7,865 kbd, 364 kbd lower than last year's first quarter, primarily due to lower refining throughput and divestments. U.S. Downstream earnings were $679 million, up $34 million. Non-U.S. Downstream earnings of $592 million were $94 million higher than the first quarter of 2005. Chemical earnings excluding special items were $949 million, down $333 million from the record quarter a year ago primarily due to reduced margins. Prime product sales of 6,916 kt (thousands of metric tons) were down 22 kt from last year's first quarter. Corporate and financing expenses were $203 million, up $124 million mainly due to tax items. During the first quarter of 2006, Exxon Mobil Corporation purchased 99 million shares of its common stock for the treasury at a gross cost of $6.0 billion. These purchases included $5.0 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company benefits plans and programs. Shares outstanding were reduced from 6,133 million at the end of the fourth quarter to 6,050 million at the end of the first quarter. 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. ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on April 27, 2006. To listen to the event live or in archive, go to our website at www.exxonmobil.com. Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including project plans, resource recoveries, timing, and capacities, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir performance; the outcome of commercial negotiations; potential liability resulting from pending or future litigation; 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 2005 Form 10-K. We assume no duty to update these statements as of any future date. Consistent with previous practice this press release includes both net income and earnings excluding special items. Earnings that exclude special items are a non-GAAP financial measure and are included to help facilitate comparisons of base business performance across periods. A reconciliation to net income 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. Calculation of this cash flow is shown in Attachment II. Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 28 and 29 in the 2005 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com. Attachment I
EXXON MOBIL CORPORATION
FIRST QUARTER 2006
-----------------------------------
(millions of dollars, unless noted)
First Quarter
-----------------
2006 2005
-------- --------
Earnings / Earnings Per Share
Total revenues and other income(1) 88,980 82,051
Total costs and other deductions(1) 73,521 69,148
Income before income taxes 15,459 12,903
Income taxes 7,059 5,043
Net income (U.S. GAAP) 8,400 7,860
Net income per common share (dollars) 1.38 1.23
Net income per common share
- assuming dilution (dollars) 1.37 1.22
Other Financial Data
Dividends on common stock
Total 1,957 1,728
Per common share (dollars) 0.32 0.27
Millions of common shares outstanding
At March 31 6,050 6,366
Average - assuming dilution 6,126 6,421
Shareholders' equity at March 31 112,463 103,698
Capital employed at March 31 122,286 114,171
Income taxes 7,059 5,043
Excise taxes 7,664 7,238
All other taxes 11,049 10,944
Total taxes 25,772 23,225
ExxonMobil's share of income taxes
of equity companies 521 493
(1) 2005 includes $7,160 million for purchases/sales contracts with
the same counterparty. These transactions are reported on a net
basis in 2006.
Attachment II
EXXON MOBIL CORPORATION
FIRST QUARTER 2006
-----------------------
(millions of dollars)
First Quarter
-------------
2006 2005
------ ------
Net Income (U.S. GAAP)
Upstream
United States 1,280 1,353
Non-U.S. 5,103 3,701
Downstream
United States 679 645
Non-U.S. 592 808
Chemical
United States 329 492
Non-U.S. 620 940
Corporate and financing (203) (79)
Corporate total 8,400 7,860
Special Items
Upstream
United States 0 0
Non-U.S. 0 0
Downstream
United States 0 0
Non-U.S. 0 310
Chemical
United States 0 0
Non-U.S. 0 150
Corporate and financing 0 0
Corporate total 0 460
Earnings Excluding Special Items
Upstream
United States 1,280 1,353
Non-U.S. 5,103 3,701
Downstream
United States 679 645
Non-U.S. 592 498
Chemical
United States 329 492
Non-U.S. 620 790
Corporate and financing (203) (79)
Corporate total 8,400 7,400
Cash flow from operations and asset sales (billions of
dollars)
Net cash provided by operating activities
(U.S. GAAP) 14.6 13.0
Sales of subsidiaries, investments and
property, plant and equipment 0.4 1.8
Cash flow from operations and asset sales 15.0 14.8
Attachment III
EXXON MOBIL CORPORATION
FIRST QUARTER 2006
------------------------
First Quarter
---------------
2006 2005
------- -------
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 440 540
Canada 332 358
Europe 563 575
Africa 741 596
Asia Pacific/Middle East 467 329
Russia/Caspian 114 95
Other 39 51
Worldwide 2,696 2,544
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 1,707 1,897
Canada 882 923
Europe 5,977 5,767
Asia Pacific/Middle East 2,462 2,036
Russia/Caspian 82 74
Other 89 88
Worldwide 11,199 10,785
Oil-equivalent production (koebd)(1) 4,562 4,341
(1) Gas converted to oil-equivalent at 6 million cubic feet = 1
thousand barrels
Attachment IV
EXXON MOBIL CORPORATION
FIRST QUARTER 2006
-----------------------
First Quarter
----------------
2006 2005
-------- -------
Petroleum product sales (kbd)(1)
United States 2,714 2,870
Canada 591 620
Europe 2,101 2,055
Asia Pacific 1,735 1,844
Other 724 840
Worldwide 7,865 8,229
Gasolines, naphthas 3,008 3,144
Heating oils, kerosene, diesel 2,601 2,690
Aviation fuels 655 691
Heavy fuels 689 718
Specialty products 912 986
Total 7,865 8,229
Refinery throughput (kbd)
United States 1,716 1,860
Canada 486 481
Europe 1,645 1,566
Asia Pacific 1,465 1,533
Other 236 309
Worldwide 5,548 5,749
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,620 2,838
Non-U.S. 4,296 4,100
Worldwide 6,916 6,938
(1) Petroleum product sales include 689 kbd for first quarter 2006 and
735 kbd for first quarter 2005 for purchases/sales contracts with
the same counterparty.
Attachment V
EXXON MOBIL CORPORATION
FIRST QUARTER 2006
-----------------------
(millions of dollars)
First Quarter
---------------
2006 2005
------- -------
Capital and Exploration Expenditures
Upstream
United States 548 441
Non-U.S. 3,539 2,371
Total 4,087 2,812
Downstream
United States 162 148
Non-U.S. 419 304
Total 581 452
Chemical
United States 63 55
Non-U.S. 81 93
Total 144 148
Other 12 5
Worldwide 4,824 3,417
Exploration expenses charged to income
included above
Consolidated affiliates
United States 63 21
Non-U.S. 214 147
Equity companies - ExxonMobil share
United States 0 0
Non-U.S. 3 5
Worldwide 280 173
Attachment VI
EXXON MOBIL CORPORATION
NET INCOME
------------------------
$ Millions $ Per Common Share
------------------- ------------------
2002
--------------------------------
First Quarter 2,090 0.30
Second Quarter 2,640 0.40
Third Quarter 2,640 0.39
Fourth Quarter 4,090 0.60
Year 11,460 1.69
2003
--------------------------------
First Quarter 7,040 1.05
Second Quarter 4,170 0.63
Third Quarter 3,650 0.55
Fourth Quarter 6,650 1.01
Year 21,510 3.24
2004
--------------------------------
First Quarter 5,440 0.83
Second Quarter 5,790 0.89
Third Quarter 5,680 0.88
Fourth Quarter 8,420 1.31
Year 25,330 3.91
2005
--------------------------------
First Quarter 7,860 1.23
Second Quarter 7,640 1.21
Third Quarter 9,920 1.60
Fourth Quarter 10,710 1.72
Year 36,130 5.76
2006
--------------------------------
First Quarter 8,400 1.38
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