ExxonMobil Announces Estimated Fourth Quarter 2005 Results

Exxon Mobil Corporation (NYSE: XOM) reported fourth quarter 2005 results. Earnings excluding special items were $10,320 million ($1.65 per share), an increase of $1,900 million from the fourth quarter of 2004. Fourth quarter net income included a special gain of $390 million from the resolution of a previously disclosed litigation issue. Including this gain, net income of $10,710 million ($1.71 per share) increased by $2,290 million.

ExxonMobil's Chairman Rex W. Tillerson Commented:

"ExxonMobil's fourth quarter earnings excluding special items were $10,320 million, up 23% from fourth quarter 2004, reflecting higher crude oil and natural gas realizations and improved refining and marketing margins. Net income for the fourth quarter was $10,710 million, up 27% from 2004.

"There is a great deal of public interest in global energy prices. We recognize that consumers worldwide want and need reliable supplies of affordable energy -- to fuel their vehicles, light and heat their homes and run their businesses. Our strong financial results will continue to allow us to make significant, long-term investments required to do our part in meeting the world's energy needs.

"ExxonMobil continued its active investment program in the fourth quarter, spending $5.3 billion on capital and exploration projects, bringing full year spending to $17.7 billion, an increase of 19% or $2.8 billion versus 2004.

"The Corporation distributed a total of $6.8 billion to shareholders in the fourth quarter through dividends and share purchases to reduce shares outstanding. Distributions to shareholders totaled $23.2 billion for the full year, an increase of 56% or $8.3 billion versus 2004."

FOURTH QUARTER HIGHLIGHTS

  • Earnings excluding special items were $10,320 million, an increase of 23% or $1,900 million from the fourth quarter of 2004.
  • Net income of $10,710 million includes a special gain of $390 million from the previously disclosed litigation issue.
  • Cash flow from operations and asset sales was approximately $11.9 billion, including asset sales of $1.4 billion.
  • Share purchases to reduce shares outstanding of $5.0 billion were at the same level as the third quarter of 2005.
  • Earnings per share excluding special items were $1.65, an increase of 27%, reflecting strong earnings and the reduction in the number of shares outstanding.
  • Production from the multi-phase Sakhalin 1 project started on schedule during the fourth quarter. This initial phase of the project is expected to produce 250 thousand barrels per day (gross) of liquids and 130 million cubic feet per day (gross) of gas by the end of 2006.

                                Fourth Quarter      Twelve Months
                                --------------     ---------------
                                 2005    2004   %   2005    2004    %
                                ------- ------ --- ------- ------- ---
Net Income
---------------------------    
 $ Millions                     10,710  8,420  27  36,130  25,330  43
 $ Per Common Share
   Assuming Dilution              1.71   1.30  32    5.71    3.89  47

Earnings Excluding Special
 Items
---------------------------    
 $ Millions                     10,320  8,420  23  33,860  25,880  31
 $ Per Common Share
   Assuming Dilution              1.65   1.30  27    5.35    3.97  35

Capital and Exploration
Expenditures - $ Millions        5,331  4,233      17,699  14,885

Fourth Quarter 2005 vs. Fourth Quarter 2004

Upstream earnings were $7,038 million, up $2,151 million from the fourth quarter of 2004 reflecting higher crude oil and natural gas realizations.

On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2004. Excluding the residual impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production increased 2%.

Liquids production of 2,629 kbd (thousands of barrels per day) was 64 kbd higher. Higher production from projects in West Africa, Azerbaijan and the North Sea was partly offset by the impact of mature field decline, the residual effect of hurricanes Katrina and Rita, and entitlement and divestment impacts. Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased by 6%.

Fourth quarter natural gas production was 9,822 mcfd (millions of cubic feet per day) compared with 10,430 mcfd last year. Higher volumes from projects in Qatar, the North Sea and North America were more than offset by the impact of mature field decline, lower European demand, maintenance activity, the residual effect of hurricanes Katrina and Rita, as well as entitlement and divestment impacts.

Earnings from U.S. Upstream operations were $1,787 million, $403 million higher than the fourth quarter of 2004. Non-U.S. Upstream earnings were $5,251 million, up $1,748 million from 2004.

Downstream earnings were $2,390 million, up $46 million from the fourth quarter 2004. Higher refining and marketing margins were partly offset by residual impacts from hurricanes Katrina and Rita. Petroleum product sales were 8,322 kbd, 124 kbd lower than last year's fourth quarter, primarily due to the hurricanes.

U.S. Downstream earnings were $1,158 million, up $282 million. Non-U.S. Downstream earnings of $1,232 million were $236 million lower than the fourth quarter of 2004.

Chemical earnings excluding special items were $835 million, down $413 million from the same quarter a year ago primarily due to reduced margins from increased feedstock costs. Prime product sales of 6,292 kt (thousands of metric tons) were down 657 kt from last year's fourth quarter, largely due to the hurricanes.

Corporate and financing recorded a gain of $57 million, up $116 million mainly due to higher interest income.

During the fourth quarter of 2005, Exxon Mobil Corporation purchased 92 million shares of its common stock for the treasury at a gross cost of $5.3 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 6,222 million at the end of the third quarter to 6,133 million at the end of the fourth 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.

Full Year 2005 vs. Full Year 2004

Net income of $36,130 million ($5.71 per share) increased $10,800 million from 2004. Net income for 2005 included special items totaling $2,270 million. Excluding special items in both periods, earnings increased by $8 billion versus 2004.

FULL YEAR HIGHLIGHTS

  • Earnings excluding special items were $33,860 million, an increase of 31%, with strong contributions from all segments of the business. Net income increased by 43%.
  • Earnings per share excluding special items increased by 35% reflecting strong earnings and the reduction in the number of shares outstanding.
  • Special items of $2,270 million included a $1,620 million special gain related to Gasunie, a $460 million positive impact from the sale of the Corporation's stake in Sinopec, a $390 million gain from the previously disclosed litigation issue, and a charge of $200 million for Allapattah. Net income for 2004 included a $550 million special charge for Allapattah.
  • Cash flow from operations and asset sales was approximately $54.2 billion, including $6.0 billion from asset sales.
  • The Corporation distributed a total of $23.2 billion to shareholders in 2005 through dividends and share purchases to reduce shares outstanding, an increase of $8.3 billion versus 2004.
  • Capital and exploration expenditures were $17.7 billion, an increase of $2.8 billion versus 2004.

Upstream earnings excluding special items were $22,729 million, an increase of $6,054 million from 2004. Higher liquids and natural gas realizations were partly offset by lower production.

On an oil-equivalent basis, production decreased 3.6% from last year. Excluding the impact of hurricanes Katrina and Rita, as well as divestment and entitlement effects, production decreased by 1%.

Liquids production of 2,523 kbd decreased by 48 kbd from 2004. Higher production from projects in West Africa, the North Sea and North America was more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, as well as entitlement and divestment impacts. Excluding the impact of the hurricanes, entitlement effects, and divestments, liquids production increased 1.5%.

Natural gas production of 9,251 mcfd, decreased 613 mcfd from 2004. Higher volumes from projects in Qatar, the North Sea and North America were more than offset by mature field decline, the impact of hurricanes Katrina and Rita, maintenance activity, lower European demand, as well as entitlement and divestment impacts.

Earnings from U.S. Upstream operations for 2005 were $6,200 million, an increase of $1,252 million. Earnings outside the U.S., excluding special items, were $16,529 million, $4,802 million higher than 2004.

Downstream earnings excluding special items were $7,882 million, an increase of $1,626 million from 2004 reflecting stronger worldwide refining margins partly offset by weaker marketing margins. Petroleum product sales of 8,257 kbd increased from 8,210 kbd in 2004.

U.S. Downstream earnings excluding special items were $4,111 million, up $1,375 million. Non-U.S. Downstream earnings, excluding special items, were $3,771 million, $251 million higher than last year.

Chemical earnings excluding special items were $3,403 million, down $25 million from 2004 due to lower volumes. Prime product sales were 26,777 kt, down 1,011 kt from 2004, largely due to the hurricanes.

Corporate and financing expenses of $154 million decreased by $325 million mainly due to higher interest income.

Gross share purchases in 2005 were $18,221 million which reduced shares outstanding by 4.2%.

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