Exxon Mobil Corporation 10-Q


UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D. C. 20549


FORM 10-Q


( X )   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934


For the quarterly period ended March 31, 2009


or


(   )  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934


For the transition period from __________to________


Commission File Number 1-2256



                                 EXXON MOBIL CORPORATION                                 

(Exact name of registrant as specified in its charter)



                            NEW JERSEY                                                             13-5409005                         

               (State or other jurisdiction of                                              (I.R.S. Employer                     

               incorporation or organization)                                        Identification Number)               


     5959 Las Colinas Boulevard, Irving, Texas                             75039-2298       

(Address of principal executive offices)                               (Zip Code)


                                         (972) 444-1000                                         

(Registrant's telephone number, including area code)


Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes  X  No    


Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).  Yes  X  No    


Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

           Large accelerated filer   X                 Accelerated filer      

           Non-accelerated filer                         Smaller reporting company      


Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes     No  X 


Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


                      Class                                                                         Outstanding as of March 31, 2009

Common stock, without par value                                                             4,879,710,154                





EXXON MOBIL CORPORATION


FORM 10-Q


FOR THE QUARTERLY PERIOD ENDED MARCH 31, 2009


TABLE OF CONTENTS


Page

Number


PART I.  FINANCIAL INFORMATION


Item 1.

Financial Statements


Condensed Consolidated Statement of Income

3

Three months ended March 31, 2009 and 2008


Condensed Consolidated Balance Sheet

4

As of March 31, 2009 and December 31, 2008


Condensed Consolidated Statement of Cash Flows

5

Three months ended March 31, 2009 and 2008


Notes to Condensed Consolidated Financial Statements

6


Item 2.

Management's Discussion and Analysis of Financial

Condition and Results of Operations

15


Item 3.

Quantitative and Qualitative Disclosures About Market Risk

19


Item 4.

Controls and Procedures

19


PART II.  OTHER INFORMATION


Item 1.

Legal Proceedings

19


Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

20


Item 6.

Exhibits

21


Signature

22


Index to Exhibits

23




-2-




PART I.  FINANCIAL INFORMATION



Item 1.  Financial Statements


EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)



 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

REVENUES AND OTHER INCOME

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenue (1)

 

 

 

 

 

 

$

62,128

 

$

113,223

 

Income from equity affiliates

 

 

 

 

 

 

 

1,470

 

 

2,809

 

Other income

 

 

 

 

 

 

 

430

 

 

822

 

       Total revenues and other income

 

 

 

 

 

 

 

64,028

 

 

116,854

 

 

 

 

 

 

 

 

 

 

 

 

 

 

COSTS AND OTHER DEDUCTIONS

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil and product purchases

 

 

 

 

 

 

 

27,794

 

 

60,971

 

Production and manufacturing expenses

 

 

 

 

 

 

 

7,979

 

 

8,893

 

Selling, general and administrative expenses

 

 

 

 

 

 

 

3,448

 

 

3,802

 

Depreciation and depletion

 

 

 

 

 

 

 

2,793

 

 

3,104

 

Exploration expenses, including dry holes

 

 

 

 

 

 

 

351

 

 

342

 

Interest expense

 

 

 

 

 

 

 

107

 

 

130

 

Sales-based taxes (1)

 

 

 

 

 

 

 

5,906

 

 

8,432

 

Other taxes and duties

 

 

 

 

 

 

 

7,800

 

 

10,706

 

       Total costs and other deductions

 

 

 

 

 

 

 

56,178

 

 

96,380

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INCOME BEFORE INCOME TAXES

 

 

 

 

 

 

 

7,850

 

 

20,474

 

       Income taxes

 

 

 

 

 

 

 

3,148

 

 

9,302

 

NET INCOME INCLUDING NONCONTROLLING INTERESTS

 

 

 

 

 

 

 

4,702

 

 

11,172

 

       Net income attributable to noncontrolling interests

 

 

 

 

 

 

 

152

 

 

282

 

NET INCOME ATTRIBUTABLE TO EXXONMOBIL

 

 

 

 

 

 

$

4,550

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 - ASSUMING DILUTION (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.02

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

DIVIDENDS PER COMMON SHARE (dollars)

 

 

 

 

 

 

$

0.40

 

$

0.35

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Sales-based taxes included in sales and other

 

 

 

 

 

 

 

 

 

 

 

 

         operating revenue

 

 

 

 

 

 

$

5,906

 

$

8,432

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.



-3-




EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(millions of dollars)


 

March 31,

 

Dec. 31,

 

 

2009

 

2008

 

ASSETS

 

 

 

 

 

 

 

 

Current assets

 

 

 

 

 

 

 

 

   Cash and cash equivalents

 

$

24,972

 

 

$

31,437

 

   Marketable securities

 

 

168

 

 

 

570

 

   Notes and accounts receivable - net

 

 

22,942

 

 

 

24,702

 

   Inventories

 

 

 

 

 

 

 

 

     Crude oil, products and merchandise

 

 

10,296

 

 

 

9,331

 

     Materials and supplies

 

 

2,421

 

 

 

2,315

 

   Other current assets

 

 

4,019

 

 

 

3,911

 

     Total current assets

 

 

64,818

 

 

 

72,266

 

Investments, advances and long-term assets

 

 

29,105

 

 

 

28,556

 

Property, plant and equipment - net

 

 

122,224

 

 

 

121,346

 

Other assets, including intangibles, net

 

 

6,344

 

 

 

5,884

 

     TOTAL ASSETS

 

$

222,491

 

 

$

228,052

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

Current liabilities

 

 

 

 

 

 

 

 

   Notes and loans payable

 

$

2,163

 

 

$

2,400

 

   Accounts payable and accrued liabilities

 

 

38,468

 

 

 

36,643

 

   Income taxes payable

 

 

8,874

 

 

 

10,057

 

     Total current liabilities

 

 

49,505

 

 

 

49,100

 

Long-term debt

 

 

7,041

 

 

 

7,025

 

Postretirement benefits reserves

 

 

20,451

 

 

 

20,729

 

Deferred income tax liabilities

 

 

20,063

 

 

 

19,726

 

Other long-term liabilities

 

 

14,053

 

 

 

13,949

 

     TOTAL LIABILITIES

 

 

111,113

 

 

 

110,529

 

 

 

 

 

 

 

 

 

 

Commitments and contingencies (note 3)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EQUITY

 

 

 

 

 

 

 

 

Common stock, without par value:

 

 

 

 

 

 

 

 

   Authorized:  

9,000 million shares

 

 

 

 

 

 

 

 

   Issued:      

8,019 million shares

 

 

5,066

 

 

 

5,314

 

Earnings reinvested

 

 

268,249

 

 

 

265,680

 

Accumulated other comprehensive income

 

 

 

 

 

 

 

 

   Cumulative foreign exchange translation adjustment

 

 

(93

)

 

 

1,146

 

   Postretirement benefits reserves adjustment

 

 

(10,807

)

 

 

(11,077

)

Common stock held in treasury:

 

 

 

 

 

 

 

 

       3,139 million shares at March 31, 2009

 

 

(155,412

)

 

 

 

 

       3,043 million shares at December 31, 2008

 

 

 

 

 

 

(148,098

)

     ExxonMobil share of equity

 

 

107,003

 

 

 

112,965

 

Noncontrolling interests

 

 

4,375

 

 

 

4,558

 

     TOTAL EQUITY

 

 

111,378

 

 

 

117,523

 

     TOTAL LIABILITIES AND EQUITY

 

$

222,491

 

 

$

228,052

 

 

 

 

 

 

 

 

 

 

The number of shares of common stock issued and outstanding at March 31, 2009 and

December 31, 2008 were 4,879,710,154 and 4,976,055,639, respectively.

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.


-4-





EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)




 

 

Three Months Ended

 

 

 

March 31,

 

 

 

 

2009

 

 

 

2008

 

CASH FLOWS FROM OPERATING ACTIVITIES

 

 

 

 

 

 

 

 

   Net income including noncontrolling interests

 

$

4,702

 

 

$

11,172

 

   Depreciation and depletion

 

 

2,793

 

 

 

3,104

 

   Changes in operational working capital, excluding cash and debt

 

 

1,132

 

 

 

7,803

 

   All other items - net

 

 

283

 

 

 

(659

)

    Net cash provided by operating activities

 

 

8,910

 

 

 

21,420

 

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM INVESTING ACTIVITIES

 

 

 

 

 

 

 

 

   Additions to property, plant and equipment

 

 

(4,673

)

 

 

(3,979

)

   Sales of subsidiaries, investments, and property, plant and equipment

 

 

141

 

 

 

413

 

   Other investing activities - net

 

 

(208

)

 

 

(734

)

    Net cash used in investing activities

 

 

(4,740

)

 

 

(4,300

)

 

 

 

 

 

 

 

 

 

CASH FLOWS FROM FINANCING ACTIVITIES

 

 

 

 

 

 

 

 

   Additions to long-term debt

 

 

22

 

 

 

35

 

   Reductions in long-term debt

 

 

(11

)

 

 

(46

)

   Additions/(reductions) in short-term debt - net

 

 

(203

)

 

 

190

 

   Cash dividends to ExxonMobil shareholders

 

 

(1,981

)

 

 

(1,879

)

   Cash dividends to noncontrolling interests

 

 

(90

)

 

 

(105

)

   Changes in noncontrolling interests

 

 

(111

)

 

 

(214

)

   Common stock acquired

 

 

(7,852

)

 

 

(9,465

)

   Common stock sold

 

 

121

 

 

 

131

 

    Net cash used in financing activities

 

 

(10,105

)

 

 

(11,353

)

 

 

 

 

 

 

 

 

 

Effects of exchange rate changes on cash

 

 

(530

)

 

 

1,165

 

Increase/(decrease) in cash and cash equivalents

 

 

(6,465

)

 

 

6,932

 

Cash and cash equivalents at beginning of period

 

 

31,437

 

 

 

33,981

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

24,972

 

 

$

40,913

 

 

 

 

 

 

 

 

 

 

SUPPLEMENTAL DISCLOSURES

 

 

 

 

 

 

 

 

   Income taxes paid

 

$

3,817

 

 

$

4,849

 

   Cash interest paid

 

$

101

 

 

$

184

 

 

 

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.




-5-





EXXON MOBIL CORPORATION


NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS


1.

Basis of Financial Statement Preparation


These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2008 Annual Report on Form 10-K.  In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein.  All such adjustments are of a normal recurring nature.  The Corporation's exploration and production activities are accounted for under the "successful efforts" method.



2.

Accounting Changes


Effective January 1, 2009, ExxonMobil adopted the Financial Accounting Standards Board's (FASB) Statement No. 157 (FAS 157), “Fair Value Measurements” for nonfinancial assets and liabilities that are measured at fair value on a nonrecurring basis.  FAS 157 defines fair value, establishes a framework for measuring fair value when an entity is required to use a fair value measure for recognition or disclosure purposes and expands the disclosures about fair value measures.  The adoption did not have a material impact on the Corporation’s financial statements.  The Corporation previously adopted FAS 157 for financial assets and liabilities that are measured at fair value and for nonfinancial assets and liabilities that are measured at fair value on a recurring basis.  


Effective January 1, 2009, ExxonMobil adopted Financial Accounting Standards Board's (FASB) Statement No. 160 (FAS 160), “Noncontrolling Interests in Consolidated Financial Statements – an Amendment of ARB No. 51.” FAS 160 changed the accounting and reporting for minority interests, which will be recharacterized as noncontrolling interests and classified as a component of equity.  FAS 160 required retrospective adoption of the presentation and disclosure requirements for existing minority interests.  All other requirements of FAS 160 will be applied prospectively.  The adoption of FAS 160 did not have a material impact on the Corporation’s financial statements.


Effective January 1, 2009, ExxonMobil adopted the Financial Accounting Standards Board's Staff Position (FSP) on the Emerging Issues Task Force (EITF) Issue No. 03-6-1, “Determining Whether Instruments Granted in Share-Based Payment Transactions are Participating Securities.”  The FSP required that all unvested share-based payment awards that contain nonforfeitable rights to dividends should be included in the basic Earnings Per Share (EPS) calculation.  Prior-year EPS numbers have been adjusted retrospectively on a consistent basis with 2009 reporting.  This standard did not affect the consolidated financial position or results of operations.


3.

Litigation and Other Contingencies


Litigation


A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies.  The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated.  If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued.  The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote.  For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. ExxonMobil will continue to defend itself vigorously in these matters.  Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a materially adverse effect upon the Corporation’s operations or financial condition.




-6-




A number of lawsuits, including class actions, were brought in various courts against Exxon Mobil Corporation and certain of its subsidiaries relating to the accidental release of crude oil from the tanker Exxon Valdez in 1989. All the compensatory claims have been resolved and paid.  All of the punitive damage claims were consolidated in the civil trial that began in 1994.  On June 25, 2008, the U.S. Supreme Court vacated the $2.5 billion punitive damage award previously entered by the Ninth Circuit Court of Appeals and remanded the case to the Circuit Court with an instruction that punitive damages in the case may not exceed a maximum amount of $507.5 million.  The parties have filed briefs in the Ninth Circuit Court of Appeals on the issue of post-judgment interest and recovery of costs.  Exxon Mobil Corporation recorded total after-tax charges of $460 million in 2008 reflecting an estimate of the resolution of these issues.



Other Contingencies


 

As of March 31, 2009

 

       Equity

 

 

       Other

 

 

 

 

    Company

 

 

   Third Party

 

 

 

 

 Obligations

 

 

  Obligations

 

   Total

 

 

(millions of dollars)

Total guarantees

 

$

   7,311

 

  $

 1,680

 

 $

   8,991

 


The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2009, for $8,991 million, primarily relating to guarantees for notes, loans and performance under contracts.  Included in this amount were guarantees by consolidated affiliates of $7,311 million, for ExxonMobil’s share of obligations of certain equity companies.  These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.


Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.  The Corporation's outstanding unconditional purchase obligations at March 31, 2009, were similar to those at the prior year-end period.  Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.


The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations.  Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.


In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project.  This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project.  The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture.  ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.


On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes.  An affiliate of ExxonMobil has also filed an arbitration under the rules of the International Chamber of Commerce against PdVSA and a PdVSA affiliate for breach of their contractual obligations under certain Cerro Negro Project agreements.  At this time, the net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated.  However, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition. ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.


-7-




4.

Comprehensive Income



 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income including noncontrolling interests

 

 

 

 

 

 

$

4,702

 

$

11,172

 

Other comprehensive income (net of income taxes)

 

 

 

 

 

 

 

 

 

 

 

 

Foreign exchange translation adjustment

 

 

 

 

 

 

 

(1,411

)

 

1,712

 

Postretirement benefits reserves adjustment

 

 

 

 

 

 

 

 

 

 

 

 

 (excluding amortization)

 

 

 

 

 

 

 

(42

)

 

(140

)

Amortization of postretirement benefits reserves

 

 

 

 

 

 

 

 

 

 

 

 

 adjustment included in net periodic benefit costs

 

 

 

 

 

 

 

350

 

 

189

 

Comprehensive income including noncontrolling interests

 

 

 

 

 

 

 

3,599

 

 

12,933

 

Comprehensive income attributable to

 

 

 

 

 

 

 

 

 

 

 

 

 noncontrolling interests

 

 

 

 

 

 

 

18

 

 

528

 

Comprehensive income attributable to ExxonMobil

 

 

 

 

 

 

$

3,581

 

$

12,405

 



5.

Earnings Per Share



 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ExxonMobil (millions of dollars)

 

 

 

 

 

 

$

4,550

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

  outstanding (millions of shares)

 

 

 

 

 

 

 

4,937

 

 

5,343

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.03

 

 

 

 

 

 

 

 

 

 

 

 

 

 

EARNINGS PER COMMON SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 - ASSUMING DILUTION

 

 

 

 

 

 

 

 

 

 

 

 

Net income attributable to ExxonMobil (millions of dollars)

 

 

 

 

 

 

$

4,550

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

  outstanding (millions of shares)

 

 

 

 

 

 

 

4,937

 

 

5,343

 

    Effect of employee stock-based awards

 

 

 

 

 

 

 

22

 

 

36

 

Weighted average number of common shares

 

 

 

 

 

 

 

 

 

 

 

 

  outstanding - assuming dilution

 

 

 

 

 

 

 

4,959

 

 

5,379

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

   - assuming dilution (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.02

 




-8-




6.

Pension and Other Postretirement Benefits


 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Pension Benefits - U.S.

 

 

 

 

 

 

 

 

 

 

 

 

   Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

      Service cost

 

 

 

 

 

 

$

103

 

$

95

 

      Interest cost

 

 

 

 

 

 

 

202

 

 

182

 

      Expected return on plan assets

 

 

 

 

 

 

 

(164

)

 

(229

)

      Amortization of actuarial loss/(gain)

 

 

 

 

 

 

 

 

 

 

 

 

        and prior service cost

 

 

 

 

 

 

 

173

 

 

59

 

      Net pension enhancement and

 

 

 

 

 

 

 

 

 

 

 

 

        curtailment/settlement cost

 

 

 

 

 

 

 

121

 

 

44

 

      Net benefit cost

 

 

 

 

 

 

$

435

 

$

151

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Pension Benefits - Non-U.S.

 

 

 

 

 

 

 

 

 

 

 

 

   Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

      Service cost

 

 

 

 

 

 

$

103

 

$

113

 

      Interest cost

 

 

 

 

 

 

 

261

 

 

301

 

      Expected return on plan assets

 

 

 

 

 

 

 

(205

)

 

(318

)

      Amortization of actuarial loss/(gain)

 

 

 

 

 

 

 

 

 

 

 

 

        and prior service cost

 

 

 

 

 

 

 

167

 

 

101

 

      Net pension enhancement and

 

 

 

 

 

 

 

 

 

 

 

 

        curtailment/settlement cost

 

 

 

 

 

 

 

0

 

 

0

 

      Net benefit cost

 

 

 

 

 

 

$

326

 

$

197

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Other Postretirement Benefits

 

 

 

 

 

 

 

 

 

 

 

 

   Components of net benefit cost

 

 

 

 

 

 

 

 

 

 

 

 

      Service cost

 

 

 

 

 

 

$

27

 

$

29

 

      Interest cost

 

 

 

 

 

 

 

110

 

 

108

 

      Expected return on plan assets

 

 

 

 

 

 

 

(16

)

 

(12

)

      Amortization of actuarial loss/(gain)

 

 

 

 

 

 

 

 

 

 

 

 

        and prior service cost

 

 

 

 

 

 

 

71

 

 

84

 

      Net benefit cost

 

 

 

 

 

 

$

192

 

$

209

 




-9-




7.

Disclosures about Segments and Related Information



 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

 

 

 

March 31,

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

 

(millions of dollars)

 

EARNINGS AFTER INCOME TAX

 

 

 

 

 

 

 

 

 

 

 

 

  Upstream

 

 

 

 

 

 

 

 

 

 

 

 

    United States

 

 

 

 

 

 

$

360

 

$

1,631

 

    Non-U.S.

 

 

 

 

 

 

 

3,143

 

 

7,154

 

  Downstream

 

 

 

 

 

 

 

 

 

 

 

 

    United States

 

 

 

 

 

 

 

352

 

 

398

 

    Non-U.S.

 

 

 

 

 

 

 

781

 

 

768

 

  Chemical

 

 

 

 

 

 

 

 

 

 

 

 

    United States

 

 

 

 

 

 

 

83

 

 

284

 

    Non-U.S.

 

 

 

 

 

 

 

267

 

 

744

 

  All other

 

 

 

 

 

 

 

(436

)

 

(89

)

  Corporate total

 

 

 

 

 

 

$

4,550

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SALES AND OTHER OPERATING REVENUE (1)

 

 

 

 

 

 

 

 

 

 

  Upstream

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

$

821

 

$

1,764

 

     Non-U.S.

 

 

 

 

 

 

 

5,176

 

 

8,399

 

  Downstream

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

 

15,193

 

 

28,458

 

     Non-U.S.

 

 

 

 

 

 

 

35,985

 

 

64,517

 

  Chemical

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

 

1,848

 

 

3,652

 

     Non-U.S.

 

 

 

 

 

 

 

3,103

 

 

6,429

 

  All other

 

 

 

 

 

 

 

2

 

 

4

 

  Corporate total

 

 

 

 

 

 

$

62,128

 

$

113,223

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Includes sales-based taxes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

INTERSEGMENT REVENUE

 

 

 

 

 

 

 

 

 

 

 

 

  Upstream

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

$

1,204

 

$

2,561

 

     Non-U.S.

 

 

 

 

 

 

 

6,576

 

 

14,881

 

  Downstream

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

 

1,669

 

 

3,861

 

     Non-U.S.

 

 

 

 

 

 

 

6,879

 

 

16,543

 

  Chemical

 

 

 

 

 

 

 

 

 

 

 

 

     United States

 

 

 

 

 

 

 

1,221

 

 

2,428

 

     Non-U.S.

 

 

 

 

 

 

 

1,284

 

 

2,432

 

  All other

 

 

 

 

 

 

 

71

 

 

67

 




-10-




8.

Condensed Consolidating Financial Information Related to Guaranteed Securities Issued by Subsidiaries


Exxon Mobil Corporation has fully and unconditionally guaranteed the deferred interest debentures due 2012 ($1,979 million long-term at March 31, 2009) and the debt securities due 2009-2011 ($26 million long-term and $13 million short-term) of SeaRiver Maritime Financial Holdings, Inc., a 100 percent owned subsidiary of Exxon Mobil Corporation.


The following condensed consolidating financial information is provided for Exxon Mobil Corporation, as guarantor, and for SeaRiver Maritime Financial Holdings, Inc., as issuer, as an alternative to providing separate financial statements for the issuer.  The accounts of Exxon Mobil Corporation and SeaRiver Maritime Financial Holdings, Inc. are presented utilizing the equity method of accounting for investments in subsidiaries.



 

 

 

SeaRiver

 

 

 

 

 

 

 

 

Exxon Mobil

 

Maritime

 

 

 

Consolidating

 

 

 

 

Corporation

 

Financial

 

 

 

and

 

 

 

 

Parent

 

Holdings

 

All Other

 

Eliminating

 

 

 

 

Guarantor

 

Inc.

 

Subsidiaries

 

Adjustments

 

Consolidated

 

 

(millions of dollars)

 

 

Condensed consolidated statement of income for three months ended March 31, 2009

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenue,

including sales-based taxes


$


2,167

 


$


-

 


$


59,961

 


$


-

 


$


62,128

 

Income from equity affiliates

 

4,752

 

 

7

 

 

1,450

 

 

(4,739

)

 

1,470

 

Other income

 

145

 

 

-

 

 

285

 

 

-

 

 

430

 

Intercompany revenue

 

5,865

 

 

1

 

 

52,635

 

 

(58,501

)

 

-

 

Total revenues and other income

 

12,929

 

 

8

 

 

114,331

 

 

(63,240

)

 

64,028

 

Costs and other deductions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil and product purchases

 

5,074

 

 

-

 

 

77,851

 

 

(55,131

)

 

27,794

 

Production and manufacturing

expenses

 


1,966

 

 


-

 

 


7,294

 

 


(1,281


)

 


7,979

 

 

Selling, general and administrative

expenses

 


658

 

 


-

 

 


2,968

 

 


(178


)

 


3,448

 

Depreciation and depletion

 

367

 

 

-

 

 

2,426

 

 

-

 

 

2,793

 

Exploration expenses, including dry

holes

 


55

 

 


-

 

 


296

 

 


-

 

 


351

 

Interest expense

 

361

 

 

55

 

 

1,622

 

 

(1,931

)

 

107

 

Sales-based taxes

 

-

 

 

-

 

 

5,906

 

 

-

 

 

5,906

 

Other taxes and duties

 

9

 

 

-

 

 

7,791

 

 

-

 

 

7,800

 

Total costs and other deductions

 

8,490

 

 

55

 

 

106,154

 

 

(58,521

)

 

56,178

 

Income before income taxes

 

4,439

 

 

(47

)

 

8,177

 

 

(4,719

)

 

7,850

 

Income taxes

 

(111

)

 

(20

)

 

3,279

 

 

-

 

 

3,148

 

Net income including noncontrolling

interests

 


4,550

 

 


(27


)

 


4,898

 

 


(4,719


)

 


4,702

 

Net income attributable to

noncontrolling interests

 


-

 

 


-

 

 


152

 

 


-

 

 


152

 

Net income attributable to ExxonMobil

$

4,550

 

$

(27

)

$

4,746

 

$

(4,719

)

$

4,550

 




-11-




 

 

 

SeaRiver

 

 

 

 

 

 

 

 

Exxon Mobil

 

Maritime

 

 

 

Consolidating

 

 

 

 

Corporation

 

Financial

 

 

 

and

 

 

 

 

Parent

 

Holdings

 

All Other

 

Eliminating

 

 

 

 

Guarantor

 

Inc.

 

Subsidiaries

 

Adjustments

 

Consolidated

 

 

(millions of dollars)

 

 

Condensed consolidated statement of income for three months ended March 31, 2008

Revenues and other income

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and other operating revenue,

including sales-based taxes


$


4,515

 


$


-

 


$


108,708

 


$


-

 


$


113,223

 

Income from equity affiliates

 

11,068

 

 

1

 

 

2,798

 

 

(11,058

)

 

2,809

 

Other income

 

25

 

 

-

 

 

797

 

 

-

 

 

822

 

Intercompany revenue

 

11,600

 

 

17

 

 

112,600

 

 

(124,217

)

 

-

 

Total revenues and other income

 

27,208

 

 

18

 

 

224,903

 

 

(135,275

)

 

116,854

 

Costs and other deductions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Crude oil and product purchases

 

11,850

 

 

-

 

 

167,242

 

 

(118,121

)

 

60,971

 

Production and manufacturing

expenses

 


1,911

 

 


-

 

 


8,329

 

 


(1,347


)

 


8,893

 

 

Selling, general and administrative

expenses

 


702

 

 


-

 

 


3,313

 

 


(213


)

 


3,802

 

Depreciation and depletion

 

393

 

 

-

 

 

2,711

 

 

-

 

 

3,104

 

Exploration expenses, including dry

holes

 


79

 

 


-

 

 


263

 

 


-

 

 


342

 

Interest expense

 

1,194

 

 

53

 

 

3,510

 

 

(4,627

)

 

130

 

Sales-based taxes

 

-

 

 

-

 

 

8,432

 

 

-

 

 

8,432

 

Other taxes and duties

 

15

 

 

-

 

 

10,691

 

 

-

 

 

10,706

 

Total costs and other deductions

 

16,144

 

 

53

 

 

204,491

 

 

(124,308

)

 

96,380

 

Income before income taxes

 

11,064

 

 

(35

)

 

20,412

 

 

(10,967

)

 

20,474

 

Income taxes

 

174

 

 

(12

)

 

9,140

 

 

-

 

 

9,302

 

Net income including noncontrolling

interests

 


10,890

 

 


(23


)

 


11,272

 

 


(10,967


)

 


11,172

 

Net income attributable to

noncontrolling interests

 


-

 

 


-

 

 


282

 

 


-

 

 


282

 

Net income attributable to ExxonMobil

$

10,890

 

$

(23

)

$

10,990

 

$

(10,967

)

$

10,890

 





-12-




 

 

 

SeaRiver

 

 

 

 

 

 

 

 

Exxon Mobil

 

Maritime

 

 

 

Consolidating

 

 

 

 

Corporation

 

Financial

 

 

 

and

 

 

 

 

Parent

 

Holdings

 

All Other

 

Eliminating

 

 

 

 

Guarantor

 

Inc.

 

Subsidiaries

 

Adjustments

 

Consolidated

 

 

(millions of dollars)

 

Condensed consolidated balance sheet as of March 31, 2009

 

Cash and cash equivalents

$

550

 

$

-

 

$

24,422

 

$

-

 

$

24,972

 

Marketable securities

 

-

 

 

-

 

 

168

 

 

-

 

 

168

 

Notes and accounts receivable - net

 

2,501

 

 

15

 

 

21,559

 

 

(1,133

)

 

22,942

 

Inventories

 

1,407

 

 

-

 

 

11,310

 

 

-

 

 

12,717

 

Other current assets

 

483

 

 

-

 

 

3,536

 

 

-

 

 

4,019

 

      Total current assets

 

4,941

 

 

15

 

 

60,995

 

 

(1,133

)

 

64,818

 

Property, plant and equipment - net

 

17,117

 

 

-

 

 

105,107

 

 

-

 

 

122,224

 

Investments and other assets

 

206,330

 

 

476

 

 

452,964

 

 

(624,321

)

 

35,449

 

Intercompany receivables

 

6,817

 

 

2,208

 

 

426,389

 

 

(435,414

)

 

-

 

      Total assets

$

235,205

 

$

2,699

 

$

1,045,455

 

$

(1,060,868

)

$

222,491

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and loan payables

$

41

 

$

13

 

$

2,109

 

$

-

 

$

2,163

 

Accounts payable and accrued liabilities

 

3,264

 

 

-

 

 

35,204

 

 

-

 

 

38,468

 

Income taxes payable

 

-

 

 

-

 

 

10,007

 

 

(1,133

)

 

8,874

 

      Total current liabilities

 

3,305

 

 

13

 

 

47,320

 

 

(1,133

)

 

49,505

 

Long-term debt

 

279

 

 

2,005

 

 

4,757

 

 

-

 

 

7,041

 

Postretirement benefits reserves

 

11,989

 

 

-

 

 

8,462

 

 

-

 

 

20,451

 

Deferred income tax liabilities

 

42

 

 

171

 

 

19,850

 

 

-

 

 

20,063

 

Other long-term liabilities

 

5,175

 

 

-

 

 

8,878

 

 

-

 

 

14,053

 

Intercompany payables

 

107,412

 

 

382

 

 

327,620

 

 

(435,414

)

 

-

 

      Total liabilities

 

128,202

 

 

2,571

 

 

416,887

 

 

(436,547

)

 

111,113

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings reinvested

 

268,249

 

 

(591

)

 

121,430

 

 

(120,839

)

 

268,249

 

Other ExxonMobil equity

 

(161,246

)

 

719

 

 

502,763

 

 

(503,482

)

 

(161,246

)

      ExxonMobil share of equity

 

107,003

 

 

128

 

 

624,193

 

 

(624,321

)

 

107,003

 

Noncontrolling interests

 

-

 

 

-

 

 

4,375

 

 

-

 

 

4,375

 

      Total equity

 

107,003

 

 

128

 

 

628,568

 

 

(624,321

)

 

111,378

 

      Total liabilities and equity

$

235,205

 

$

2,699

 

$

1,045,455

 

$

(1,060,868

)

$

222,491

 



Condensed consolidated balance sheet as of December 31, 2008

 

Cash and cash equivalents

$

4,011

 

$

-

 

$

27,426

 

$

-

 

$

31,437

 

Marketable securities

 

-

 

 

-

 

 

570

 

 

-

 

 

570

 

Notes and accounts receivable - net

 

2,486

 

 

3

 

 

23,224

 

 

(1,011

)

 

24,702

 

Inventories

 

1,253

 

 

-

 

 

10,393

 

 

-

 

 

11,646

 

Other current assets

 

348

 

 

-

 

 

3,563

 

 

-

 

 

3,911

 

      Total current assets

 

8,098

 

 

3

 

 

65,176

 

 

(1,011

)

 

72,266

 

Property, plant and equipment - net

 

16,939

 

 

-

 

 

104,407

 

 

-

 

 

121,346

 

Investments and other assets

 

202,471

 

 

469

 

 

456,237

 

 

(624,737

)

 

34,440

 

Intercompany receivables

 

10,026

 

 

2,057

 

 

432,902

 

 

(444,985

)

 

-

 

      Total assets

$

237,534

 

$

2,529

 

$

1,058,722

 

$

(1,070,733

)

$

228,052

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Notes and loan payables

$

7

 

$

13

 

$

2,380

 

$

-

 

$

2,400

 

Accounts payable and accrued liabilities

 

3,352

 

 

-

 

 

33,291

 

 

-

 

 

36,643

 

Income taxes payable

 

-

 

 

-

 

 

11,068

 

 

(1,011

)

 

10,057

 

      Total current liabilities

 

3,359

 

 

13

 

 

46,739

 

 

(1,011

)

 

49,100

 

Long-term debt

 

279

 

 

1,951

 

 

4,795

 

 

-

 

 

7,025

 

Postretirement benefits reserves

 

11,653

 

 

-

 

 

9,076

 

 

-

 

 

20,729

 

Deferred income tax liabilities

 

120

 

 

178

 

 

19,428

 

 

-

 

 

19,726

 

Other long-term liabilities

 

5,175

 

 

-

 

 

8,774

 

 

-

 

 

13,949

 

Intercompany payables

 

103,983

 

 

382

 

 

340,620

 

 

(444,985

)

 

-

 

      Total liabilities

 

124,569

 

 

2,524

 

 

429,432

 

 

(445,996

)

 

110,529

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings reinvested

 

265,680

 

 

(564

)

 

116,805

 

 

(116,241

)

 

265,680

 

Other ExxonMobil equity

 

(152,715

)

 

569

 

 

507,927

 

 

(508,496

)

 

(152,715

)

      ExxonMobil share of equity

 

112,965

 

 

5

 

 

624,732

 

 

(624,737

)

 

112,965

 

Noncontrolling interests

 

-

 

 

-

 

 

4,558

 

 

-

 

 

4,558

 

      Total equity

 

112,965

 

 

5

 

 

629,290

 

 

(624,737

)

 

117,523

 

      Total liabilities and equity

$

237,534

 

$

2,529

 

$

1,058,722

 

$

(1,070,733

)

$

228,052

 


-13-




 

 

 

SeaRiver

 

 

 

 

 

 

 

 

Exxon Mobil

 

Maritime

 

 

 

Consolidating

 

 

 

 

Corporation

 

Financial

 

 

 

and

 

 

 

 

Parent

 

Holdings

 

All Other

 

Eliminating

 

 

 

 

Guarantor

 

Inc.

 

Subsidiaries

 

Adjustments

 

Consolidated

 

 

(millions of dollars)

 

Condensed consolidated statement of cash flows for three months ended March 31, 2009

 

Cash provided by/(used in) operating

activities


$


421

 


$


1

 


$


8,609

 


$


(121


)


$


8,910

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and

equipment

 


(542


)

 


-

 

 


(4,131


)

 


-

 

 


(4,673


)

Sales of long-term assets

 

32

 

 

-

 

 

109

 

 

-

 

 

141

 

Net intercompany investing

 

6,306

 

 

(151

)

 

(6,477

)

 

322

 

 

-

 

All other investing, net

 

-

 

 

-

 

 

(208

)

 

-

 

 

(208

)

Net cash provided by/(used in)

investing activities

 


5,796

 

 


(151


)

 


(10,707


)

 


322


 


(4,740


)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to long-term debt

 

-

 

 

-

 

 

22

 

 

-

 

 

22

 

Reductions in long-term debt

 

-

 

 

-

 

 

(11

)

 

-

 

 

(11

)

Additions/(reductions) in short-term

debt - net

 


34


 


-

 

 


(237


)

 


-

 

 


(203


)

Cash dividends

 

(1,981

)

 

-

 

 

(121

)

 

121

 

 

(1,981

)

Net ExxonMobil shares sold/(acquired)

 

(7,731

)

 

-

 

 

-

 

 

-

 

 

(7,731

)

Net intercompany financing activity

 

-

 

 

-

 

 

172

 

 

(172

)

 

-

 

All other financing, net

 

-

 

 

150

 

 

(201

)

 

(150

)

 

(201

)

Net cash provided by/(used in)

financing activities

 


(9,678


)

 


150

 

 


(376


)

 


(201


)

 


(10,105


)

Effects of exchange rate changes

on cash

 


-

 

 


-

 

 


(530


)

 


-

 

 


(530


)

Increase/(decrease) in cash and cash

equivalents


$


(3,461


)


$


-

 


$


(3,004


)


$


-

 


$


(6,465


)


Condensed consolidated statement of cash flows for three months ended March 31, 2008

 

Cash provided by/(used in) operating

activities


$


1,400

 


$


13

 


$


20,552

 


$


(545


)


$


21,420

 

Cash flows from investing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to property, plant and

equipment

 


(352


)

 


-

 

 


(3,627


)

 


-

 

 


(3,979


)

Sales of long-term assets

 

20

 

 

-

 

 

393

 

 

-

 

 

413

 

Net intercompany investing

 

9,046

 

 

(114

)

 

(9,093

)

 

161

 

 

-

 

All other investing, net

 

-

 

 

-

 

 

(734

)

 

-

 

 

(734

)

Net cash provided by/(used in)

investing activities

 


8,714

 

 


(114


)

 


(13,061


)

 


161


 


(4,300


)

Cash flows from financing activities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Additions to long-term debt

 

-

 

 

-

 

 

35

 

 

-

 

 

35

 

Reductions in long-term debt

 

-

 

 

-

 

 

(46

)

 

-

 

 

(46

)

Additions/(reductions) in short-term

debt - net

 


-


 


-

 

 


190


 


-

 

 


190


Cash dividends

 

(1,879

)

 

-

 

 

(545

)

 

545

 

 

(1,879

)

Net ExxonMobil shares sold/(acquired)

 

(9,334

)

 

-

 

 

-

 

 

-

 

 

(9,334

)

Net intercompany financing activity

 

-

 

 

1

 

 

60

 

 

(61

)

 

-

 

All other financing, net

 

-

 

 

100

 

 

(319

)

 

(100

)

 

(319

)

Net cash provided by/(used in)

financing activities

 


(11,213


)

 


101

 

 


(625


)

 


384

 

 


(11,353


)

Effects of exchange rate changes

on cash

 


-

 

 


-

 

 


1,165


 


-

 

 


1,165


Increase/(decrease) in cash and cash

equivalents


$


(1,099


)


$


-

 


$


8,031

 


$


-

 


$


6,932

 




-14-



EXXON MOBIL CORPORATION


Item 2.

Management's Discussion and Analysis of Financial Condition

and Results of Operations


FUNCTIONAL EARNINGS SUMMARY


 

 

 

 

 

 

 

First Three Months

 

Earnings (U.S. GAAP)

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Upstream

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

$

360

 

$

1,631

 

   Non-U.S.

 

 

 

 

 

 

 

3,143

 

 

7,154

 

Downstream

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

 

352

 

 

398

 

   Non-U.S.

 

 

 

 

 

 

 

781

 

 

768

 

Chemical

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

 

83

 

 

284

 

   Non-U.S.

 

 

 

 

 

 

 

267

 

 

744

 

Corporate and financing

 

 

 

 

 

 

 

(436

)

 

(89

)

Net Income attributable to ExxonMobil (U.S. GAAP)

 

 

 

 

$

4,550

 

$

10,890

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Earnings per common share (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.03

 

Earnings per common share

 

 

 

 

 

 

 

 

 

 

 

 

   - assuming dilution (dollars)

 

 

 

 

 

 

$

0.92

 

$

2.02

 


References in this discussion to total corporate earnings mean net income attributable to

ExxonMobil (U.S. GAAP) from the income statement.  Unless otherwise indicated, references

to earnings, Upstream, Downstream, Chemical and Corporate and Financing segment earnings,

and earnings per share are ExxonMobil's share after excluding amounts attributable to

noncontrolling interests.


REVIEW OF FIRST QUARTER 2009 RESULTS


Exxon Mobil Corporation reported first quarter 2009 earnings of $4,550 million, down 58 percent from the first quarter of 2008.  Earnings per share of $0.92 were down 54 percent reflecting lower earnings and the benefit of the share purchase program.  ExxonMobil posted solid first quarter results despite the slowdown in the global marketplace and sharply lower commodity prices.  The Corporation returned significant cash to shareholders in the first quarter, distributing a total of $9.0 billion through dividends and share purchases to reduce shares outstanding.



 

 

 

First Three Months

 

 

 

 

 

 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Upstream earnings

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

$

360

 

$

1,631

 

   Non-U.S.

 

 

 

 

 

 

 

3,143

 

 

7,154

 

Total

 

 

 

 

 

 

$

3,503

 

$

8,785

 


Upstream earnings were $3,503 million, down $5,282 million from the first quarter of 2008.  Lower crude oil realizations reduced earnings approximately $4.4 billion while lower natural gas prices decreased earnings about $500 million.  Higher operating expenses reduced earnings about $300 million.


On an oil-equivalent basis, production was up slightly from the first quarter of 2008.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 2 percent.


Liquids production totaled 2,475 kbd (thousands of barrels per day), up 7 kbd from the first quarter of 2008.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 3 percent, as increased production from projects in west Africa, the United States and the North Sea, and lower maintenance activity more than offset natural field decline.


First quarter natural gas production was 10,195 mcfd (millions of cubic feet per day), down 34 mcfd from 2008.   New production volumes from project additions in Qatar, the North Sea, and Malaysia were offset by natural field decline and lower European demand.


Earnings from U.S. Upstream operations were $360 million, $1,271 million lower than the first quarter of 2008.  Non-U.S. Upstream earnings were $3,143 million, down $4,011 million from last year.



-15-




 

 

 

First Three Months

 

 


 


 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Downstream earnings

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

$

352

 

$

398

 

   Non-U.S.

 

 

 

 

 

 

 

781

 

 

768

 

Total

 

 

 

 

 

 

$

1,133

 

$

1,166

 


Downstream earnings of $1,133 million were down $33 million from the first quarter of 2008.  Volume and mix effects reduced earnings about $400 million, while unfavorable foreign exchange impacts and higher operating expenses decreased earnings about $300 million.  Higher margins increased earnings about $700 million.  Petroleum product sales of 6,434 kbd were 387 kbd lower than last year's first quarter, mainly reflecting asset sales and lower demand.


U.S. Downstream earnings were $352 million, down $46 million from the first quarter of 2008.  Non-U.S. Downstream earnings of $781 million were $13 million higher than last year.



 

 

 

First Three Months

 

 


 


 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Chemical earnings

 

 

 

 

 

 

 

 

 

 

 

 

   United States

 

 

 

 

 

 

$

83

 

$

284

 

   Non-U.S.

 

 

 

 

 

 

 

267

 

 

744

 

Total

 

 

 

 

 

 

$

350

 

$

1,028

 


Chemical earnings of $350 million were $678 million lower than the first quarter of 2008.  Lower volumes and lower margins each reduced earnings approximately $300 million.  Unfavorable foreign exchange effects also reduced earnings.  First quarter prime product sales of 5,527 kt (thousands of metric tons) were 1,051 kt lower than the prior year due to lower demand.



 

 

 

First Three Months

 

 


 


 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate and financing earnings

 

 

 

 

 

 

$

(436

)

$

(89

)


Corporate and financing expenses of $436 million increased by $347 million due overall to net lower interest income.



LIQUIDITY AND CAPITAL RESOURCES

 

 

 

 

 

 

 

First Three Months

 

 

 

 

 

 

 

 

 

2009

 

 

2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

Net cash provided by/(used in)

 

 

 

 

 

 

 

 

 

 

 

 

Operating activities

 

 

 

 

 

 

$

8,910

 

$

21,420

 

Investing activities

 

 

 

 

 

 

 

(4,740

)

 

(4,300

)

Financing activities

 

 

 

 

 

 

 

(10,105

)

 

(11,353

)

Effect of exchange rate changes

 

 

 

 

 

 

 

(530

)

 

1,165

 

Increase/(decrease) in cash and cash equivalents

 

 

 

 

 

 

$

(6,465

)

$

6,932

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents (at end of period)

 

 

 

 

 

 

$

24,972

 

$

40,913

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash flow from operations and asset sales

 

 

 

 

 

 

 

 

 

 

 

 

Net cash provided by operating activities (U.S. GAAP)

 

 

 

 

 

 

$

8,910

 

$

21,420

 

Sales of subsidiaries, investments and property,

 

 

 

 

 

 

 

 

 

 

 

 

    plant and equipment

 

 

 

 

 

 

 

141

 

 

413

 

Cash flow from operations and asset sales

 

 

 

 

 

 

$

9,051

 

$

21,833

 


Because of the ongoing nature of our asset management and divestment program, we believe

it is useful for investors to consider asset sales proceeds together with cash provided by operating

activities when evaluating cash available for investment in the business and financing activities.



-16-





Total cash and cash equivalents of $25.0 billion at the end of the first quarter of 2009 compared to $40.9 billion at the end of the first quarter of 2008.


Cash provided by operating activities totaled $8,910 million for the first three months of 2009, $12,510 million lower than 2008.  The major source of funds was net income including noncontrolling interests of $4,702 million, adjusted for the noncash provision of $2,793 million for depreciation and depletion, both of which decreased.  The effects of changing prices on the timing of payments of accounts and other payables added to cash provided by operating activities.  For additional details, see the Condensed Consolidated Statement of Cash Flows on page 5.


Investing activities for the first three months of 2009 used net cash of $4,740 million compared to $4,300 million in the prior year.  Spending for additions to property, plant and equipment increased $694 million to $4,673 million.  Proceeds from asset divestments of $141 million in 2009 were lower.


Cash flow from operations and asset sales in the first three months of 2009 of $9.1 billion, including asset sales of $0.1 billion, decreased $12.8 billion from the comparable 2008 period.


Net cash used in financing activities of $10,105 million in the first three months of 2009 was $1,248 million lower reflecting a lower level of purchases of shares of ExxonMobil stock.


During the first quarter of 2009, Exxon Mobil Corporation purchased 107 million shares of its common stock for the treasury at a gross cost of $7.9 billion.  These purchases included $7.0 billion 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 4,976 million at the end of the fourth quarter to 4,880 million at the end of the first quarter.  Share purchases to reduce shares outstanding are currently anticipated to equal $5.0 billion through the second 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.


The Corporation distributed a total of $9.0 billion to shareholders during the quarter through dividends and share purchases to reduce shares outstanding compared to $9.9 billion in the first quarter of 2008.


Total debt of $9.2 billion at March 31, 2009, compared to $9.4 billion at year-end 2008.  The Corporation's debt to total capital ratio was 7.6 percent at the end of the first quarter of 2009 compared to 7.4 percent at year-end 2008.


Although the Corporation issues long-term debt from time to time and maintains a revolving commercial paper program, internally generated funds cover the majority of its financial requirements.


The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.  Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses.


In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.


On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes. An affiliate of ExxonMobil has also filed an arbitration under the rules of the International Chamber of Commerce against PdVSA and a PdVSA affiliate for breach of their contractual obligations under certain Cerro Negro Project agreements. At this time, the net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. However, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition. ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.




-17-




TAXES

 

 

 

First Three Months

 

 


 


 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income taxes

 

 

 

 

 

 

$

3,148

 

$

9,302

 

Sales-based taxes

 

 

 

 

 

 

 

5,906

 

 

8,432

 

All other taxes and duties

 

 

 

 

 

 

 

8,589

 

 

11,607

 

Total

 

 

 

 

 

 

$

17,643

 

$

29,341

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Effective income tax rate

 

 

 

 

 

 

 

45

%

 

48

%


Income, sales-based and all other taxes and duties for the first quarter of 2009 of $17,643 million were lower than 2008.  In the first quarter of 2009 income tax expense declined to $3,148 million reflecting the lower level of earnings and the effective income tax rate was 45 percent, compared to $9,302 million and 48 percent, respectively, in the prior year period.  Sales-based taxes and all other taxes and duties decreased in 2009 reflecting lower prices and foreign exchange effects.



CAPITAL AND EXPLORATION EXPENDITURES

 

 

 

First Three Months

 

 


 


 

 2009

 

 2008

 

 

 

 

 

 

 

 

(millions of dollars)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Upstream (including exploration expenses)

 

 

 

 

 

 

$

4,366

 

$

4,095

 

Downstream

 

 

 

 

 

 

 

646

 

 

827

 

Chemical

 

 

 

 

 

 

 

758

 

 

566

 

Other

 

 

 

 

 

 

 

4

 

 

3

 

Total

 

 

 

 

 

 

$

5,774

 

$

5,491

 


In spite of the dramatic changes to the global economic environment, ExxonMobil is maintaining its long-term focus and disciplined approach to capital investment.  In the first quarter, capital and exploration project spending increased to $5.8 billion, up 5% from last year.


We are committed to investing in our world-class inventory of projects to develop new energy supplies which are vital to economic growth.  Capital and exploration expenditures for full year 2008 were $26.1 billion and are expected to range from $25 billion to $30 billion for the next several years.  Actual spending could vary depending on the progress of individual projects.



FORWARD-LOOKING STATEMENTS


Statements in this report relating to future plans, projections, events or conditions are forward-looking statements.  Actual results, including project plans, costs, timing, and capacities; capital expenditures; and share purchase levels, could differ materially due to factors including: changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; completion of repair projects as planned; unforeseen technical difficulties; political events or disturbances; reservoir performance; the outcome of commercial negotiations; wars and acts of terrorism or sabotage; 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 2008 Form 10-K.  We assume no duty to update these statements as of any future date.




-18-




Item 3.  Quantitative and Qualitative Disclosures About Market Risk


Information about market risks for the three months ended March 31, 2009, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2008.


Item 4.  Controls and Procedures


As indicated in the certifications in Exhibit 31 of this report, the Corporation’s chief executive officer, principal financial officer and principal accounting officer have evaluated the Corporation’s disclosure controls and procedures as of March 31, 2009.  Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.  There were no changes during the Corporation's last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation's internal control over financial reporting.



PART II.  OTHER INFORMATION


Item 1.  Legal Proceedings


The Wyoming Department of Environmental Quality (WDEQ) has alleged certain violations of the state air permitting and state and federal air quality regulations associated with the operation of the three AGI cogeneration turbines located at the ExxonMobil Shute Creek Treatment Facility in LaBarge, Wyoming.  A notice of violation was issued on September 21, 2007, but no other formal complaint has been filed.  In discussions during the first quarter of 2009, WDEQ indicated that it will seek corrective action and penalties in excess of $100,000 to resolve the matter.


Regarding six previously reported matters involving the Corporation's Baytown Refinery; Baytown Chemical Plant and Baytown Olefins Plant, and ExxonMobil Oil Corporation's Beaumont Refinery, the Texas Commission on Environmental Quality (TCEQ) has entered into an agreement with the Corporation and ExxonMobil Oil Corporation to consolidate and resolve these matters along with fifteen other similar actions.  Each of the actions alleges exceedances of facility air permits and/or violations of applicable air regulations.  The proposed settlement amount is $602,801, half to be paid as a civil penalty and half in the form of a supplemental environmental project.  It is anticipated that this final settlement will be approved by the TCEQ Commissioners in the third quarter of 2009.


Refer to the relevant portions of note 3 on pages 6 and 7 of this Quarterly Report on Form 10-Q for further information on legal proceedings.




-19-




Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds


 

Issuer Purchase of Equity Securities for Quarter Ended March 31, 2009

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Number of

 

Maximum Number

 

 

 

 

 

 

 

Shares Purchased

 

Of Shares that May

 

 

 

Total Number

 

Average

 

as Part of Publicly

 

Yet Be Purchased

 

 

 

Of Shares

 

Price Paid

 

Announced Plans

 

Under the Plans or

 

Period

 

Purchased

 

per Share

 

or Programs

 

Programs

 

 

 

 

 

 

 

 

 

 

 

January, 2009

 

35,463,703

 

$78.30

 

35,463,703

 

 

 

 

 

 

 

 

 

 

 

 

 

February, 2009

 

33,395,889

 

$74.44

 

33,395,889

 

 

 

 

 

 

 

 

 

 

 

 

 

March, 2009

 

38,414,472

 

$67.42

 

38,414,472

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

 

107,274,064

 

$73.20

 

107,274,064

 

(See Note 1)


Note 1 --

On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding.  The announcement did not specify an amount or expiration date.  The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases.  In its most recent earnings release dated April 30, 2009, the Corporation stated that share purchases to reduce shares outstanding are anticipated to equal $5.0 billion in the second quarter of 2009.  Purchases may be made in both the open market and through negotiated transactions, and purchases may be increased, decreased or discontinued at any time without prior notice.




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Item 6.  Exhibits


Exhibit

Description


10(iii)(f.1)

2004 Non-Employee Director Restricted Stock Plan.


31.1

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief

 

  Executive Officer.


31.2

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal

  Financial Officer.


31.3

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal

  Accounting Officer.


32.1

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief

  

 

  Executive Officer.


32.2

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by

  Principal Financial Officer.


32.3

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by

  Principal Accounting Officer.





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EXXON MOBIL CORPORATION



SIGNATURE




Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.




EXXON MOBIL CORPORATION




Date: May 5, 2009  

By:   /s/  Patrick T. Mulva                        

        Name:  Patrick T. Mulva

           

        Title:     Vice President, Controller and

                      Principal Accounting Officer





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INDEX TO EXHIBITS


Exhibit

Description


10(iii)(f.1)

2004 Non-Employee Director Restricted Stock Plan.


31.1

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by

  Chief Executive Officer.


31.2

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by

  Principal Financial Officer.


31.3

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by

  Principal Accounting Officer.


32.1

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief

  

  Executive Officer.


32.2

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal

 

   Financial Officer.


32.3

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal

 

   Accounting Officer.






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