Exxon Mobil Corporation Announces Estimated Second Quarter 2012 Results

Jul 26, 2012 - 09:12 AM EDT

Dateline:

IRVING, Texas

Public Company Information:

NYSE:
XOM

IRVING, Texas--(BUSINESS WIRE)--Exxon Mobil Corporation (NYSE:XOM):

             
Second Quarter First Half
2012 2011 % 2012   2011 %

Earnings Excluding Special Items 1

$ Millions 15,910 10,680 49 25,360 21,330 19
$ Per Common Share
Assuming Dilution 3.41 2.18 56 5.41 4.32 25
 

Special Items

$ Millions 0 0 0 0
 

Earnings

$ Millions 15,910 10,680 49 25,360 21,330 19
$ Per Common Share
Assuming Dilution 3.41 2.18 56 5.41 4.32 25
 
Capital and Exploration
Expenditures - $ Millions 9,339 10,306 -9 18,173 18,127 0
 

1 See Reference to Earnings

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.

 
Attachment I
 
 
EXXON MOBIL CORPORATION

SECOND QUARTER 2012

(millions of dollars, unless noted)
  Second Quarter   First Half
2012   2011 2012   2011
Earnings / Earnings Per Share
 
Total revenues and other income 127,363 125,486 251,416 239,490
Total costs and other deductions 101,172 106,867 207,710 201,954
Income before income taxes 26,191 18,619 43,706 37,536
Income taxes 8,537 7,721 16,253 15,725
Net income including noncontrolling interests 17,654 10,898 27,453 21,811
Net income attributable to noncontrolling interests 1,744 218 2,093 481
Net income attributable to ExxonMobil (U.S. GAAP) 15,910 10,680 25,360 21,330
 
Earnings per common share (dollars) 3.41 2.19 5.41 4.33
 
Earnings per common share
- assuming dilution (dollars) 3.41 2.18 5.41 4.32
 
Other Financial Data
 
Dividends on common stock
Total 2,657 2,308 4,878 4,496
Per common share (dollars) 0.57 0.47 1.04 0.91
 
Millions of common shares outstanding
At June 30 4,616 4,862
Average - assuming dilution 4,657 4,912 4,687 4,941
 
ExxonMobil share of equity at June 30 162,811 155,551
ExxonMobil share of capital employed at June 30 181,900 175,822
 
Income taxes 8,537 7,721 16,253 15,725
Sales-based taxes 8,027 8,613 16,520 16,529
All other taxes 10,036 11,175 21,239 21,491
Total taxes 26,600 27,509 54,012 53,745
 
ExxonMobil share of income taxes of
equity companies 1,441 1,376 3,146 2,889
 

Attachment II

 
EXXON MOBIL CORPORATION

SECOND QUARTER 2012

(millions of dollars)
  Second Quarter First Half
2012     2011   2012     2011  
Earnings (U.S. GAAP)
Upstream
United States 678 1,449 1,688 2,728
Non-U.S. 7,680 7,092 14,472 14,488
Downstream
United States 834 734 1,437 1,428
Non-U.S. 5,812 622 6,795 1,027
Chemical
United States 494 625 927 1,294
Non-U.S. 955 696 1,223 1,543
Corporate and financing (543 ) (538 ) (1,182 ) (1,178 )
Net income attributable to ExxonMobil 15,910 10,680 25,360 21,330
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 0
Corporate total 0 0 0 0
Earnings Excluding Special Items
Upstream
United States 678 1,449 1,688 2,728
Non-U.S. 7,680 7,092 14,472 14,488
Downstream
United States 834 734 1,437 1,428
Non-U.S. 5,812 622 6,795 1,027
Chemical
United States 494 625 927 1,294
Non-U.S. 955 696 1,223 1,543
Corporate and financing (543 ) (538 ) (1,182 ) (1,178 )
Corporate total   15,910     10,680     25,360     21,330  
Cash flow from operations and asset sales (billions of dollars)
Net cash provided by operating activities
(U.S. GAAP)
10.2 12.9 29.5 29.8
Proceeds associated with asset sales 3.7 1.5 6.2 2.8
Cash flow from operations and asset sales   13.9     14.4     35.7     32.6  
 

Attachment III

                 
       

EXXON MOBIL CORPORATION

SECOND QUARTER 2012

 

Second Quarter

First Half

2012

2011

2012

2011
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States

419

429

423

428
Canada/South America

243

240

246

252
Europe

213

273

220

289
Africa

514

522

489

541
Asia

766

834

784

813
Australia/Oceania

53

53

49

52
Worldwide

2,208

2,351

2,211

2,375
 
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States

3,897

3,842

3,915

3,873
Canada/South America

392

397

385

432
Europe

2,578

2,694

3,512

3,732
Africa

25

8

18

7
Asia

4,379

4,961

4,695

5,025
Australia/Oceania

390

365

324

321
Worldwide

11,661

12,267

12,849

13,390
 

Oil-equivalent production (koebd)1

4,152

4,396

4,352

4,607
 
 
 

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

 
Attachment IV
 
       
EXXON MOBIL CORPORATION

SECOND QUARTER 2012

 
Second Quarter First Half
2012 2011 2012 2011
Refinery throughput (kbd)
United States 1,740 1,783 1,782 1,777
Canada 384 397 411 425
Europe 1,489 1,602 1,485 1,525
Asia Pacific 1,064 1,109 1,180 1,166
Other 285 302 288 294
Worldwide 4,962 5,193 5,146 5,187
 
Petroleum product sales (kbd)
United States 2,488 2,488 2,480 2,482
Canada 421 441 422 444
Europe 1,582 1,634 1,573 1,584
Asia Pacific 1,065 1,140 1,148 1,179
Other 615 628 620 610
Worldwide 6,171 6,331 6,243 6,299
 
Gasolines, naphthas 2,489 2,498 2,505 2,484
Heating oils, kerosene, diesel 1,915 1,949 2,005 1,991
Aviation fuels 452 481 455 473
Heavy fuels 554 601 530 578
Specialty products 761 802 748 773
Worldwide 6,171 6,331 6,243 6,299
 
Chemical prime product sales,
thousands of metric tons (kt)
United States 2,296 2,303 4,661 4,578
Non-U.S. 3,676 3,878 7,648 7,925
Worldwide 5,972 6,181 12,309 12,503
 
Attachment V
 
       
EXXON MOBIL CORPORATION

SECOND QUARTER 2012

(millions of dollars)
 
Second Quarter First Half
2012 2011 2012 2011
Capital and Exploration Expenditures
Upstream
United States 2,662 4,075 5,084 6,155
Non-U.S. 5,731 5,361 11,388 10,181
Total 8,393 9,436 16,472 16,336
Downstream
United States 176 114 286 231
Non-U.S. 393 370 722 703
Total 569 484 1,008 934
Chemical
United States 95 65 169 121
Non-U.S. 273 287 512 680
Total 368 352 681 801
 
Other 9 34 12 56
 
Worldwide 9,339 10,306 18,173 18,127
 
 
Exploration expenses charged to income
included above
Consolidated affiliates
United States 83 49 186 112
Non-U.S. 288 543 705 813
Equity companies - ExxonMobil share
United States 0 4 1 5
Non-U.S. 4 2 10 3
Worldwide 375 598 902 933
 
Attachment VI
   
 
EXXON MOBIL CORPORATION

EARNINGS

 
 
$ Millions $ Per Common Share 1
 

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
 

2011

First Quarter 10,650 2.14
Second Quarter 10,680 2.19
Third Quarter 10,330 2.13
Fourth Quarter 9,400 1.97
Year 41,060 8.43
 

2012

First Quarter 9,450 2.00
Second Quarter 15,910 3.41
 
 
 
 
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.

Contact:

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