(Source: Business Wire)

Exxon Mobil Corporation (NYSE:XOM):
Third Quarter Nine Months
2009 2008 % 2009 2008 %
Earnings Excluding Special Items
$ Millions 4,730 13,380 -65 13,370 36,240 -63
$ Per Common Share
Assuming Dilution( 1) 0.98 2.58 -62 2.74 6.87 -60
Special Items
$ Millions 0 1,450 (140 ) 1,160
Earnings 1
$ Millions 4,730 14,830 -68 13,230 37,400 -65
$ Per Common Share
Assuming Dilution( 1) 0.98 2.85 -66 2.71 7.09 -62
Capital and Exploration
Expenditures - $ Millions 6,493 6,853 -5 18,829 19,314 -3
(1 )See Accounting guidance adopted in first quarter 2009
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EXXONMOBIL'S CHAIRMAN REX W. TILLERSON
COMMENTED:
"Despite ongoing global economic weakness and reduced demand for
products, we continued our robust investment program and delivered
strong results.
"Our third quarter earnings, excluding special items, were $4.7
billion. While continuing to be impacted by lower commodity prices and
weak product margins, we maintained our focus on operational excellence
and invested $19 billion through the first three quarters of the year to
develop new energy supplies.
"Oil-equivalent production increased by 3% over the third quarter of
2008 with contributions from major start-ups of world-class assets
including Qatargas 2, Train 5 and Ras Laffan 3, Train 6 in Qatar.
"We are well-positioned for continued production growth with projects
such as QatarGas, RasGas and Gorgon LNG which will contribute additional
long plateau production for decades and provide ExxonMobil with a strong
foundation.
"ExxonMobil's industry leading financial strength has allowed us to
continue to invest across the economic cycle focusing on world class
opportunities.
"Our commitment to a disciplined and long term focused investment
strategy sets ExxonMobil apart from its competitors.
"In addition to funding our capital and operating programs, we
distributed $2.0 billion in dividends and purchased $4.0 billion of
ExxonMobil common stock to reduce shares outstanding during the third
quarter."
THIRD QUARTER HIGHLIGHTS
Earnings excluding special items were $4,730million, a decrease of
65% or $8,650million from the third quarter of 2008.
Earnings per share excluding special items were $0.98, a decrease of
62%.
Earnings were down 68% from the third quarter of 2008 which included a
special gain of $1,620 million from the sale of a natural gas
transportation business in Germany and a special charge of $170
million related to the Valdez punitive damages award. Earnings for the
third quarter of 2009 did not include any special items.
Capital and exploration expenditures were $6.5billion, down 5% from
the third quarter of 2008, reflecting the impacts of a stronger U.S.
dollar.
Oil-equivalent production increased nearly 3% from the third quarter
of 2008. Excluding the impacts of entitlement volumes, OPEC quota
effects and divestments, production was up about 5%.
Cash flow from operations and asset sales was approximately
$9.0billion, including asset sales of $0.2 billion.
Share purchases of $4.0 billion reduced shares outstanding by 1.2%.
Two major liquefied natural gas (LNG) facilities in Qatar -- Qatargas
2, Train 5 and Ras Laffan 3, Train 6 -- commenced production. With
annual production capacity of 7.8 million tons each, both trains join
Qatargas 2, Train 4 as the largest operating LNG production facilities
in the world.
Participants in the Gorgon liquefied natural gas (LNG) project
approved a development plan that will include three LNG processing
trains with a capacity of 5 million tons per year each. The
development decision followed execution of LNG sales and purchase
agreements with PetroChina International Company Limited and Petronet
LNG Limited of India for ExxonMobil's equity share of LNG in the
project.
Fujian Refining and Petrochemical Company Limited announced the
startup of new chemical units -- including an ethylene steam cracker, a
polyethylene unit, a polypropylene unit and aromatics facilities -- in
its new fully integrated refining and petrochemical complex in Fujian
Province, China.
ExxonMobil announced an alliance with leading biotech company,
Synthetic Genomics Inc., to research and develop next generation
biofuels from photosynthetic algae. If research and development
milestones are met, ExxonMobil expects to spend more than $600 million
under the program.
Third Quarter 2009 vs. Third Quarter
2008
Upstream earnings, excluding special items, were $4,012million down
$5,339 million from the third quarter of 2008. Lower crude oil and
natural gas realizations accounted for the majority of the decline,
reducing earnings approximately $4.9 billion while higher operating
costs reduced earnings approximately $300 million.
On an oil-equivalent basis, production increased nearly 3% from the
third quarter of 2008. Excluding the impacts of entitlement volumes,
OPEC quota effects and divestments, production was up about 5%.
Liquids production totaled 2,335kbd (thousands of barrels per day), up
45 kbd from the third quarter of 2008. Excluding the impacts of
entitlement volumes, OPEC quota effects and divestments, liquids
production was up over 5%, as increased production from projects in the
United States and Kazakhstan was partly offset by field decline.
Third quarter natural gas production was 8,129mcfd (millions of cubic
feet per day), up 309 mcfd from 2008. New production volumes from
project additions in Qatar and the United States were partly offset by
maintenance in Europe.
Earnings from U.S. Upstream operations were $709million, $1,170million
lower than the third quarter of 2008. Non-U.S. Upstream earnings,
excluding special items, were $3,303 million, down $4,169million from
last year.
Downstream earnings of $325million were down $2,688million from the
third quarter of 2008. Lower refining margins drove the decline,
reducing earnings $2.6 billion. Petroleum product sales of 6,301kbd
were 387kbd lower than last year's third quarter, mainly reflecting
asset sales and lower demand.
The U.S. Downstream recorded a loss of $203million, down $1,181million
from the third quarter of 2008. Non-U.S. Downstream earnings of
$528million were $1,507million lower than last year.
Chemical earnings of $876million were $211million lower than the third
quarter of 2008. Weaker margins drove the decline, reducing earnings
$170 million. Third quarter prime product sales of 6,356kt (thousands
of metric tons) were 296kt higher than the prior year primarily due to
the absence of last year's hurricane impacts.
Corporate and financing expenses excluding special items were
$483million, up $412million due mainly to lower interest income.
During the third quarter of 2009, Exxon Mobil Corporation purchased
61million shares of its common stock for the treasury at a gross cost
of $4.2billion. These purchases included $4.0billion 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.
Shares outstanding were reduced from 4,806million at the end of the
second quarter to 4,747million at the end of the third quarter. Share
purchases to reduce shares outstanding are currently anticipated to
equal $2.0 billion in the fourth quarter of 2009. 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 Nine Months 2009 vs. First Nine
Months 2008
Earnings of $13,230million ($2.71 per share) decreased $24,170million
from 2008. Excluding special items, earnings for the first nine months
of 2009 were $13,370 million, a decrease of $22,870million from 2008.
FIRST NINE MONTHS HIGHLIGHTS
Earnings excluding special items were $13,370million, down 63%.
Earnings per share excluding special items decreased 60% to $2.74,
reflecting lower earnings and the continued reduction in the number of
shares outstanding.
Earnings were down 65% from 2008. Earnings for 2009 included a special
charge of $140million for interest related to the Valdez punitive
damages award. Earnings for 2008 included a special gain of $1,620
million from the sale of a natural gas transportation business in
Germany and special charges of $460 million related to the Valdez
punitive damages award.
Oil equivalent production remained essentially flat with the same
period in 2008. Excluding the impacts of entitlement volumes, OPEC
quota effects and divestments, production was up 1%.
Cash flow from operations and asset sales was approximately
$21.0billion, including $1.1billion from asset sales.
The Corporation distributed a total of $22.0billion to shareholders
in the first nine months of 2009 through dividends and share purchases
to reduce shares outstanding.
Dividends per share of $1.24 increased 8%.
Capital and exploration expenditures were $18.8billion, down 3%
versus 2008 due to the stronger U.S. dollar.
Upstream earnings, excluding special items, were $11,327million, down
$16,821 million from 2008. Lower crude oil and natural gas realizations
decreased earnings approximately $15.8billion while higher operating
costs reduced earnings about $1.0billion.
On an oil-equivalent basis, production was essentially flat compared to
the same period in 2008. Excluding the impacts of entitlement volumes,
OPEC quota effects and divestments, production was up 1%.
Liquids production of 2,385kbd remained flat with 2008. Excluding the
impacts of entitlement volumes, OPEC quota effects and divestments,
liquids production was up over2%, as new volumes from project additions
in west Africa and the United States, and lower maintenance activity,
were partly offset by field decline.
Natural gas production of 8,778mcfd decreased 64mcfd from 2008. Higher
volumes from Qatar were more than offset by field decline.
Earnings from U.S. Upstream operations for 2009 were $1,882million, a
decrease of $3,662million. Earnings outside the U.S. excluding special
items were $9,445million, down $13,159million.
Downstream earnings of $1,970million were $3,767million lower than
2008. Weaker margins decreased earnings approximately $2.8billion.
Lower volumes and refinery optimization due to weaker demand reduced
earnings about $500million while higher operating costs resulted in a
$300 million decline in earnings. Petroleum product sales of 6,407kbd
decreased from 6,761kbd in 2008, mainly reflecting asset sales and
lower demand.
U.S. Downstream earnings were $134million, down $1,535million.
Non-U.S. Downstream earnings were $1,836million, $2,232million lower
than last year.
Chemical earnings of $1,593million decreased $1,209million from 2008.
Weaker margins reduced earnings by approximately $500 million while
lower volumes reduced earnings about $400 million. Unfavorable foreign
exchange effects decreased earnings by $200 million. Prime product sales
of 18,150kt were down 1,206kt from 2008.
Corporate and financing expenses excluding special items were
$1,520million, up $1,073 million mainly due to lower interest income.
Gross share purchases through the first nine months of 2009 were $17.3
billion, reducing shares outstanding by 4.6%.
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 October 29, 2009.