Exxon Mobil Corporation Announces Estimated First Quarter 2006 Results.IRVING, Texas Irving (pronounced 'er-ving') is a city located in the U.S. state of Texas within Dallas County. According to the 2000 U.S. Census, the city population was 191,615; the 2006 estimate was 201,927 according to the North Central Texas Council of Governments, and 196,084 according to -- Exxon Mobil Corporation Exxon Mobil Corporation U.S.-based oil and gas company formed in 1999 through the merger of Exxon Corp. and Mobil Corp. It has investments and operations in petroleum and natural gas, coal, nuclear fuels, chemicals, and ores. (NYSE NYSE See: New York Stock Exchange :XOM XOM Exxon Mobil Corporation (stock symbol) XOM X/Open Object Management XOM OSI-Abstract-Data Manipulation API XOM Xml Object Model XOM X/Open Osi Abstract Data Manipulation ):
First Quarter
----------------------
2006 2005 %
------------ --------- -------
Net Income
--------------------------------
$ Millions 8,400 7,860 7
$ Per Common Share
Assuming Dilution 1.37 1.22 12
Earnings Excluding Special Items
--------------------------------
$ Millions 8,400 7,400 14
$ Per Common Share
Assuming Dilution 1.37 1.15 19
Capital and Exploration
Expenditures - $ Millions 4,824 3,417
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 SINOPEC China Petrochemical Corporation . 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 Exxon Mobil Corporation or ExxonMobil (NYSE: XOM), a multi-national American corporation and a direct descendant of John D. Rockefeller's Standard Oil company[2] 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 An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called 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 ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $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 Abu Dhabi (ä`b  thä`bē, zä–, dä–), Arab. Abu Zabi, sheikhdom (1995 pop. 928,360), c. National Oil Company
(ADNOC ADNOC Abu Dhabi National Oil Company ) for a 28% undivided interest undivided interest n. title to real property held by two or more persons without specifying the interests of each party by percentage or description of a portion of the real estate. in the Upper Zakum Oil Field. Upper
Zakum is one of the world's largest oil fields This list of oil fields includes major fields of the past and present. The list is incomplete; there are more than 40,000 oil and gas fields of all sizes in the world[1]. 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 Barrels per day (abbreviated BPD, bbl/d, bpd, bd or b/d) is a measurement used to describe the amount of crude oil (measured in barrels) produced or consumed by an entity in one day. .--ExxonMobil signed a Joint Operating Agreement Any contract, agreement, Joint Venture, or other arrangement entered into by two or more businesses in which the operations and the physical facilities of a failing business are merged, although each business retains its status as a separate entity in terms of profits and (JOA JOA Joint Operating Agreement JOA Joan of Arc JOA Joint Operations Area JOA Journal of Accountancy (AICPA publication) JOA Joint Operational Area (US DoD) JOA Joint Operating Area ) with P.T. Pertamina PERTAMINA Perusahaan Pertambangan Minyak Dan Gas Bumi Negara for the Cepu Contract Area located in East and Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. , Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. . 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 From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger 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 Cents per share The amount of a mutual fund's dividend or capital gains distributions that a shareholder will receive for each share owned. . Non-U non-U adj. Chiefly British Not characteristic of the upper class, especially in language usage. [non- + U2. .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 West Africa A region of western Africa between the Sahara Desert and the Gulf of Guinea. It was largely controlled by colonial powers until the 20th century. West African adj. & n. and increased volumes in Abu Dhabi were partly offset by mature field decline, and the impact of entitlements and divestments. Excluding entitlement An individual's right to receive a value or benefit provided by law. Commonly recognized entitlements are benefits, such as those provided by Social Security or Workers' Compensation. and divestment divestment to strip one's investment from an entity. 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 Qatar or Katar (both: kŭ`tər, gŭ–, kətär`), officially State of Qatar, independent emirate (2005 est. pop. 863,000), c. and increased European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. demand were partly offset by the impact of mature field decline. Downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). earnings excluding special items, were $1,271 million, up $128 million from the first quarter 2005, primarily due to higher marketing margins, improved refining refining, any of various processes for separating impurities from crude or semifinished materials. It includes the finer processes of metallurgy, the fractional distillation of petroleum into its commercial products, and the purifying of cane, beet, and maple sugar 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 The speed with which a computer processes data. It is a combination of internal processing speed, peripheral speeds (I/O) and the efficiency of the operating system and other system software all working together. 1. 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 (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber. ) 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 conjunction, in astronomy conjunction, in astronomy, alignment of two celestial bodies as seen from the earth. Conjunction of the moon and the planets is often determined by reference to the sun. 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 dis·con·tin·ue v. dis·con·tin·ued, dis·con·tin·u·ing, dis·con·tin·ues v.tr. 1. To stop doing or providing (something); end or abandon: 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 (1) A file that contains one or more compressed files. Most archive formats are also capable of storing folders in order to reconstruct the file/folder relationship when decompressed. See archive formats. , go to our website at www.exxonmobil.com. Statements in this release relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future plans, projections, events, or conditions are forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Actual results, including project plans, resource recoveries, timing, and capacities, could differ materially due to changes in long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir reservoir (rĕz`əvôr, -vwär), storage tank or wholly or partly artificial lake for storing water. Building an embankment or dam to preserve a supply of water for irrigation is an ancient practice; India and Egypt have many old and performance; the outcome of commercial negotiations; potential liability resulting from pending or future litigation; wars and acts of terrorism terrorism, the threat or use of violence, often against the civilian population, to achieve political or social ends, to intimidate opponents, or to publicize grievances. or sabotage sabotage [Fr., sabot=wooden shoe; hence, to work clumsily], form of direct action by workers against employers through obstruction of work and/or lowering of plant efficiency. Methods range from peaceful slowing of production to destruction of property. ; 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 Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 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 See attach a file. II. The release also includes cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses 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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