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
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.
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
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