ExxonMobil Reports Estimated Record 2006 Results

Exxonmobil's Chairman Rex W. Tillerson Commented: "Full year 2006 earnings excluding special items were a record $39,090 million driven by strong results in every business segment.

"ExxonMobil continued to leverage its globally diverse resource base to bring additional crude oil and natural gas to market. In 2006, spending on capital and exploration projects was $19.9 billion, an increase of 12% over 2005. The results of our long-term investment program yielded an additional 172 thousand oil-equivalent barrels per day of production, a 4% increase over 2005.

"The Corporation distributed a total of $32.6 billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of 41% or $9.4 billion versus 2005.

"ExxonMobil's fourth quarter earnings excluding special items were $9,840 million, down 5% from fourth quarter 2005. Lower natural gas realizations and refining margins were partly offset by higher crude oil realizations and improved chemical margins. Net income for the fourth quarter was down 4% from 2005."

FOURTH QUARTER HIGHLIGHTS

  • Earnings excluding special items were $9,840 million, a decrease of 5% or $480 million from the fourth quarter of 2005.
  • Net income of $10,250 million was down 4% and includes a special tax-related benefit of $410 million. Fourth quarter 2005 net income included a special litigation gain of $390 million.
  • Spending on capital and exploration projects was $5.1 billion, a decrease of 5% versus 2005.
  • Excluding entitlement and divestment impacts, liquids production increased by 6%.
  • Cash flow from operations and asset sales was approximately $9.6 billion, including asset sales of $0.8 billion and $2.4 billion in contributions to the U.S. pension plan.
  • Earnings per share excluding special items were $1.69, an increase of 2%, reflecting strong earnings and the continuing reduction in the number of shares outstanding.
  • Production commenced from the Dalia field in Angola. Dalia is estimated to contain nearly 1 billion barrels (gross) of recoverable reserves and is expected to reach peak production of about 225 kbd (gross) in the first quarter of 2007.
  • Early production of LNG began at Train 5 in the RasGas Joint Venture in Qatar. Initial operations started up only 29 months after the contract award. Completion of the offshore facilities that will supply natural gas to Train 5 on a long-term basis is anticipated by the end of the first quarter 2007. Train 5 is designed to produce 4.7 million tons per year of LNG for anticipated delivery to markets in Asia and Europe.

Fourth Quarter 2006 vs. Fourth Quarter 2005

Upstream earnings were $6,220 million, down $818 million from the fourth quarter of 2005 primarily reflecting lower natural gas realizations and decreased volumes driven by lower European demand.

On an oil-equivalent basis, production decreased by 1% from the fourth quarter of 2005. Excluding the impact of divestments and entitlements, production increased 2%.

Liquids production of 2,678 kbd (thousands of barrels per day) was 49 kbd higher. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, and the impact of entitlements and divestments. Excluding entitlement and divestment effects, liquids production increased by 6%.

Fourth quarter natural gas production was 9,301 mcfd (millions of cubic feet per day) compared with 9,822 mcfd last year. Lower European demand and the impact of mature field decline were partly offset by higher volumes from projects in Qatar and the absence of 2005 hurricane effects.

Earnings from U.S. Upstream operations were $1,052 million, $735 million lower than the fourth quarter of 2005. Non-U.S. Upstream earnings excluding special items were $5,168 million, down $83 million from 2005.

Downstream earnings were $1,960 million, down $430 million from the fourth quarter 2005, as lower refining and marketing margins more than offset the earnings benefit related to our continuing efforts to efficiently manage inventories. Petroleum product sales were 7,447 kbd, 145 kbd lower than last year's fourth quarter, primarily due to divestments.

U.S. Downstream earnings were $945 million, down $213 million. Non-U.S. Downstream earnings of $1,015 million were $217 million lower than the fourth quarter of 2005.

Chemical earnings excluding special items were $1,242 million, up $407 million from the fourth quarter of 2005 due to improved margins and higher volumes. Prime product sales of 6,827 kt (thousands of metric tons) in the fourth quarter of 2006 were up 535 kt from the prior year.

Corporate and financing earnings excluding special items were $418 million, up $361 million, mainly due to tax items.

During the fourth quarter of 2006, Exxon Mobil Corporation purchased 115 million shares of its common stock for the treasury at a gross cost of $8.4 billion. These purchases included $7.0 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with the company's benefit plans and programs. Shares outstanding were reduced from 5,832 million at the end of the third quarter to 5,729 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 2006 vs. Full Year 2005

Net income of $39,500 million ($6.62 per share) was a record and increased $3,370 million from 2005. Net income for 2006 included a special item of $410 million for a tax-related benefit. Net income for 2005 included special items totaling a gain of $2,270 million. Excluding these impacts, earnings for 2006 increased by $5,230 million.

FULL YEAR HIGHLIGHTS

  • Earnings excluding special items were a record $39,090 million, an increase of 15% reflecting ExxonMobil's continuing strong performance across all business segments.
  • Earnings per share excluding special items increased by 22% due to strong earnings and the continuing reduction in the number of shares outstanding.
  • Net income was up 9%. Net income for 2006 included a special gain of $410 million for a tax-related benefit. Net income for 2005 included a $1,620 million special gain related to the restructuring of the Corporation's interest in the Dutch gas transportation business, a $460 million positive impact from the sale of the Corporation's interest in Sinopec, a $390 million litigation gain and a $200 million litigation charge.
  • Cash flow from operations and asset sales was approximately $52.4 billion, including $3.1 billion from asset sales.
  • The Corporation distributed a total of $32.6 billion to shareholders in 2006 through dividends and share purchases to reduce shares outstanding, an increase of $9.4 billion versus 2005.
  • Capital and exploration expenditures were $19.9 billion, an increase of $2.2 billion versus 2005.
  • Liquids production increased 10% excluding divestment and entitlement impacts.

Upstream earnings excluding special items were $26,230 million, an increase of $3,501 million from 2005. Higher liquids and natural gas realizations were partly offset by higher operating expenses.

On an oil-equivalent basis, production increased 4% from last year. Excluding divestment and entitlement effects, production increased by 7%.

Liquids production of 2,681 kbd increased by 158 kbd from 2005. Higher production from projects in West Africa and increased Abu Dhabi volumes were partly offset by mature field decline, entitlement effects and divestment impacts. Excluding entitlement effects and divestments, liquids production increased 10%.

Natural gas production of 9,334 mcfd, increased 83 mcfd from 2005. Higher volumes from projects in Qatar were partly offset by mature field decline.

Earnings from U.S. Upstream operations for 2006 were $5,168 million, a decrease of $1,032 million. Earnings outside the U.S., excluding special items, were $21,062 million, $4,533 million higher than 2005.

Downstream earnings excluding special items were $8,454 million, an increase of $572 million from 2005 reflecting stronger worldwide refining margins and marketing margins, partly offset by lower refining throughput. Petroleum product sales of 7,247 kbd decreased from 7,519 kbd in 2005, primarily due to lower refining throughput and divestments.

U.S. Downstream earnings excluding special items were $4,250 million, up $139 million. Non-U.S. Downstream earnings excluding special items were $4,204 million, $433 million higher than last year.

Chemical earnings excluding special items were $4,382 million, up $979 million from 2005. Margins and volumes were both higher. Prime product sales were 27,350 kt, up 573 kt from 2005.

Corporate and financing earnings excluding special items were $24 million, an increase of $178 million, mainly due to higher interest income.

Gross share purchases in 2006 were $29.6 billion which reduced shares outstanding by 6.6%.

 
                               Fourth Quarter       Twelve Months
                               ---------------     ---------------
                                2006    2005    %   2006    2005    %
                               ------- ------- --- ------- ------- ---
Net Income
-------------------------------
   $ Millions                  10,250  10,710  -4  39,500  36,130   9
   $ Per Common Share
      Assuming Dilution          1.76    1.71   3    6.62    5.71  16

Special Items
-------------------------------
   $ Millions                     410     390         410   2,270

Earnings Excluding Special
 Items
-------------------------------
   $ Millions                   9,840  10,320  -5  39,090  33,860  15
   $ Per Common Share
      Assuming Dilution          1.69    1.65   2    6.55    5.35  22

Capital and Exploration
Expenditures - $ Millions       5,069   5,331      19,855  17,699
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