Exxon Mobil Corporation Announces Estimated
Third Quarter 2000 Results
Business Editors IRVING,
Texas--(BUSINESS WIRE)--Oct. 24, 2000--Exxon Mobil Corporation
(NYSE:XOM):
Third Quarter Nine Months
2000 1999 2000 1999
Net Income
$ Millions 4,490 2,188 12,500 5,626
$ Per Common Share
Assuming Dilution 1.28 0.62 3.55 1.60
Earnings Excluding
Merger Effects/Special Items
$ Millions 4,290 2,205 11,790 5,671
$ Per Common Share
Assuming Dilution 1.22 0.62 3.35 1.61
Revenue - $ Millions 58,852 48,986 168,889 130,945
Capital & Exploration
Expenditures - $ Millions 2,646 2,935 7,294 9,850
Exxon Mobil Corporation today
reported record results for the third consecutive quarter. Excluding
merger effects, third quarter 2000 earnings of $4,290 million ($1.22
per share) increased $2,085 million from the third quarter of last
year. Including net favorable merger effects of $200 million, net
income of $4,490 million ($1.28 per share) increased $2,302 million
from the third quarter of last
year.
Revenue for the third quarter of
2000 totaled $58,852 million compared with $48,986 million in 1999.
Capital and exploration expenditures of $2,646 million in the third
quarter of 2000 were up about 10% from the second quarter and are
expected to increase further in the fourth
quarter.
ExxonMobil's Chairman Lee R.
Raymond commented as follows:
"Excluding
merger effects, ExxonMobil's third quarter 2000 earnings improved
substantially from the same period a year ago, and were a third
consecutive quarterly record. These results continue to reflect
historically high crude oil and natural gas prices and further
improvements in operating efficiency. The combined assets of the new
company continue to perform well and financial results for the
upstream and downstream businesses significantly exceeded the same
period last year. As was the case last quarter, the majority of the
improvement in profits came from outside the U.S. and from our
upstream business due to higher crude oil and natural gas prices.
These prices, which are the raw material costs for our downstream
and chemicals businesses, increased at a faster pace than prices in
the highly competitive end-user and consumer
markets.
"Upstream earnings were $3.1
billion and represented a fourth consecutive record quarter.
Upstream results benefited from higher crude oil prices, which were
up almost $10 per barrel from the third quarter of 1999, reflecting
the continuing impact of tight worldwide crude oil markets.
Substantially higher natural gas prices, particularly in the U.S.,
also contributed to improved earnings. Liquids production, excluding
the effects of lower entitlements caused by higher crude prices, was
2% higher this quarter, mainly reflecting new production from fields
in the North Sea and Venezuela and increased production from eastern
Canada and Alaska.
"Downstream earnings
improved from last year's depressed results when business
fundamentals were deteriorating due to product oversupply and the
inability of product prices to keep pace with rising crude costs.
However, these conditions have continued in many markets throughout
2000 and have restrained downstream profitability. The current
quarter's results reflected improved worldwide refining margins,
improved refining performance and lower operating expenses, partly
offset by continued weakness in worldwide marketing margins and
adverse foreign exchange effects. While downstream earnings improved
versus the depressed levels of last year, they were lower than
downstream results achieved in the third quarters of 1997 and
1998.
"Chemicals earnings declined,
reflecting lower specialty chemical margins due to the combined
effect of rising feedstock and energy costs and adverse foreign
exchange effects. Earnings from other operations improved on higher
copper prices and lower operating
expenses.
"Third quarter results also
included a net after tax gain of $430 million from asset divestments
that were required as a condition of regulatory approval of the
merger. Sales transactions that closed in the third quarter included
Exxon's share of Thyssengas GmbH, a gas transmission, distribution
and storage company in Germany and Mobil's share of Colonial
Pipeline Company in the U.S. The net gain from asset divestitures
exceeded third quarter merger implementation expenses of $230
million after tax ($372 million before tax). Since the completion of
the merger, gains on regulatory required asset sales total $1,415
million after tax and have more than offset cumulative 1999 and 2000
merger expenses of $1,174 million after
tax.
"During the quarter, ExxonMobil
continued its active investment program, spending $2,646 million on
capital and exploration projects. Capital expenditures are expected
to continue to increase in the fourth
quarter.
"On August 1, ExxonMobil
announced its intention to purchase shares of its common stock.
During the third quarter the Corporation acquired 11.7 million
shares at a gross cost of $989 million to offset the dilution
associated with benefit plans and to reduce common stock
outstanding."
Additional comments on
earnings for the major operating segments
follow:
Third Quarter 2000 vs. Third
Quarter 1999
Upstream earnings
benefited from higher crude oil prices that averaged almost $10 per
barrel more than the third quarter of 1999. Worldwide average
natural gas realizations were over 45% higher than last year, partly
driven by much higher U.S. gas prices as a result of growing demand
and low industry inventory levels. Lower exploration expenses also
benefited upstream results.
Liquids
production of 2,486 kbd (thousands of barrels per day) increased
from 2,477 kbd in the third quarter of 1999. Excluding the impact of
lower entitlement volumes that resulted from higher crude prices,
liquids volumes increased 2%, reflecting a third full quarter of
production from the Balder and Jotun developments in Norway and the
Cerro Negro development in Venezuela. These increases more than
offset the effects of natural field declines. Third quarter natural
gas production of 8,706 mcfd (millions of cubic feet per day)
increased slightly from the prior year due to higher production in
Europe, eastern Canada and Qatar, partly offset by lower Indonesian
volumes.
Earnings from U.S. upstream
operations were $1,215 million, an increase of $623 million from the
prior year. Upstream earnings outside the U.S. were $1,885 million,
an increase of $948 million.
Downstream
results improved mainly as a result of stronger worldwide refining
margins. Improved refinery performance, including better yields and
reduced downtime, and lower operating expenses also benefited
earnings. These favorable factors were partly offset by continued
weakness in worldwide marketing margins as product prices were not
able to keep pace with the rapid run-up in supply costs during the
quarter. Adverse foreign exchange effects resulting from the
strengthening U.S. dollar also lowered earnings from the prior
period. Petroleum product sales were 8,101 kbd compared with 8,879
kbd in the prior year's third quarter. The reduction was mainly due
to the regulatory divestiture of Mobil's European fuels joint
venture and U.S. marketing and refining
assets.
U.S. downstream earnings were
$392 million, up $151 million as a result of higher refining
margins, improved operating performance and lower operating
expenses, partly offset by lower marketing margins. Outside of the
U.S., higher refining margins more than offset the effects of lower
marketing margins and adverse foreign exchange movements. Non-U.S.
downstream earnings of $501 million were $391 million higher than
the depressed levels of last
year.
Although total downstream earnings
improved from last year's depressed levels, we had difficulty in
recovering the significantly higher crude oil costs in the market
place. Even with these improved results, the U.S. business made
about 4 cents per gallon.
Chemicals
earnings were $264 million, down $89 million from the same quarter a
year ago as higher feedstock and energy costs put significant
pressure on margins. Results were also reduced by adverse foreign
exchange effects related to the strengthening of the U.S. dollar.
Prime product sales volumes of 6,038 kt (thousands of metric tons)
were down from the record level of 6,288 kt last year, primarily
reflecting planned turnarounds.
Earnings
from other operations, including coal, minerals and power, totaled
$148 million, compared with $108 million in the third quarter of
1999. Higher copper prices and lower operating expenses more than
offset the impact of lower coal
prices.
Corporate and financing expenses
of $115 million compared with $136 million in the third quarter of
1999. The decrease was driven by a reduction in administrative
expenses as a result of combining Exxon and Mobil headquarters
operations and lower interest expenses due to lower debt levels.
These benefits were partly offset by the effect of higher interest
rates and lower tax-related
benefits.
During the period, the
company's operating segments continued to benefit from reductions in
the tax rates of several countries and favorable resolution of
tax-related issues.
Third quarter net
income included gains on regulatory asset divestments of $430
million, offset by $230 million of merger expenses, including
implementation expenses and employee
separations.
Prior to the merger, the
corporation purchased shares of its common stock for the treasury.
Consistent with pooling accounting requirements, this repurchase
program was terminated effective with the close of the ExxonMobil
merger on November 30, 1999. On August 1, 2000, the corporation
announced its intention to purchase shares of its common stock.
During the third quarter of 2000, Exxon Mobil Corporation purchased
11.7 million shares of its common stock for the treasury at a gross
cost of $989 million. These purchases were to offset shares issued
in conjunction with company benefit plans and programs and to reduce
the number of shares outstanding. Shares outstanding were reduced
from 3,484 million at the end of the second quarter of 2000 to 3,476
million at the end of the third quarter. Purchases may be made in
both the open market and through negotiated transactions, and may be
discontinued at any time.
First Nine
Months 2000 vs. First Nine Months
1999
Excluding merger effects and
special items, earnings of $11,790 million ($3.35 per share) for the
first nine months of 2000 increased $6,119 million from the first
nine months of last year. Including net favorable merger effects of
$710 million in the current year, net income of $12,500 million
($3.55 per share) increased $6,874
million.
Upstream earnings increased due
to higher crude oil and natural gas realizations, up about 80% and
40%, respectively. Liquids production of 2,525 kbd increased from
2,496 kbd in the first nine months of 1999. Excluding the effects of
lower entitlements caused by higher crude prices, liquids production
was 3% higher than last year, mainly reflecting new production from
fields in the North Sea and Venezuela and increased production from
eastern Canada and Alaska. These increases more than offset the
effects of natural field declines. Worldwide natural gas production
of 10,016 mcfd was up 228 mcfd reflecting higher production in
eastern Canada, Europe and Qatar, partly offset by lower production
in Indonesia. Exploration expenses were also lower this
year.
Earnings from U.S. upstream
operations for the first nine months were $3,181 million, an
increase of $2,079 million from 1999. Earnings outside the U.S. were
$5,438 million, $3,068 million higher than last year, excluding
special items from 1999.
Petroleum
product sales of 7,970 kbd compared with 8,898 kbd in the first nine
months of 1999. The decrease reflects the effects of the regulatory
divestiture of Mobil's European fuels joint venture and U.S.
marketing and refining assets and lower supply sales in Asia-
Pacific as a result of the low margin environment. Overall, year to
date downstream results have been adversely affected by continued
difficulty in recovering the significant increases in raw material
costs. Earnings from U.S. downstream operations were $1,168 million,
up $543 million from 1999, reflecting stronger refining margins,
improved operations and lower operating expenses. Excluding special
items from 1999, earnings outside the U.S. of $1,092 million were
$351 million higher than last year. The effects of lower marketing
margins and volumes were more than offset by stronger European and
Southeast Asian refining
margins.
Chemicals earnings totaled $946
million in the first nine months of 2000 compared with $962 million
last year. Prime product sales volumes of 19,153 kt were 3% higher
than last year. The effects of higher volumes and stronger industry
commodity prices were offset by significant margin pressure on
specialty products and adverse foreign exchange
effects.
Earnings from other operations
totaled $394 million, an increase of $104 million from the first
nine months of 1999, reflecting higher copper prices and lower
operating expenses, partly offset by lower coal
prices.
Corporate and financing expenses
of $429 million compared with $419 million in the first nine months
of 1999. A reduction in administrative expenses as a result of
combining Exxon and Mobil headquarters operations and lower interest
expense resulting from lower debt levels were offset by the effect
of higher interest rates and lower tax-related
benefits.
Estimates of key financial and
operating data follow on the attached tables. Financial data, except
per share amounts, are expressed in millions of
dollars.
ExxonMobil will discuss
financial and operating results and other matters on a webcast at
1:00 p.m. (EDT) on October 24. To listen to the event live or in
archive, go to our Web site at "http://www.exxon.mobil.com/."
Statements in this release relating to
future plans, events, expectations or conditions, such as future
capital expenditures, are forward-looking statements. Actual results
could differ materially due to changes in market conditions
affecting the oil and gas industry, changes in technical or
operating conditions, and other factors including those discussed
under the heading "Factors Affecting Future Results" in Item 1 of
ExxonMobil's 1999 Form 10-K. We assume no duty to update these
statements as of any future date.
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
$ MILLIONS
Third Quarter Nine Months
2000 1999 2000 1999
FUNCTIONAL EARNINGS
Petroleum and natural gas
Exploration and production
United States 1,215 592 3,181 1,102
Non-U.S. 1,885 937 5,438 2,489
Refining and marketing
United States 392 241 1,168 625
Non-U.S. 501 110 1,092 621
Total petroleum and natural gas $3,993 $1,880 $10,879 $4,837
Chemicals
United States 132 199 551 541
Non-U.S. 132 154 395 421
Other operations 148 108 394 290
Corporate and financing (115) (136) (429) (419)
Merger expenses (230) (17) (705) (44)
Regulatory divestitures 430 0 1,415 0
Net income $4,490 $2,188 $12,500 $5,626
Net income per common share $1.29 $0.63 $3.59 $1.62
Net income per common share
- assuming dilution $1.28 $0.62 $3.55 $1.60
OTHER FINANCIAL DATA
Total revenue $58,852 $48,986 $168,889 $130,945
Dividends paid on common stock
Total $1,533 $1,441 $4,596 $4,324
Per common share $0.44 $0.42 $1.32 $1.25
Millions of common shares outstanding
At September 30 3,476 3,454
Average 3,479 3,452 3,479 3,451
Average-assuming dilution 3,521 3,521 3,520 3,518
Shareholders' equity at Sept. 30 $68,068 $62,849
Capital employed at Sept. 30 $86,668 $86,279
Income and other taxes
Income taxes 2,625 1,304 7,572 2,227
Excise taxes 5,254 5,391 16,204 15,491
All other taxes 9,011 9,167 25,744 26,557
Total taxes $16,890 $15,862 $49,520 $44,275
ExxonMobil's share of income taxes
of equity companies: $135 $82 $405 $299
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
MERGER EFFECTS/SPECIAL ITEMS NOTED IN PRESS RELEASE
$ MILLIONS
Third Quarter Nine Months
2000 1999 2000 1999
Exploration and production
Non-U.S. 0 0 0 119
Refining and marketing
Non-U.S. 0 0 0 (120)
Merger expenses (230) (17) (705) (44)
Regulatory divestitures 430 0 1,415 0
Total included in net income 200 (17) 710 (45)
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
EARNINGS EXCLUDING MERGER EFFECTS/SPECIAL ITEMS
$ MILLIONS
Third Quarter Nine Months
2000 1999 2000 1999
FUNCTIONAL EARNINGS
Petroleum and natural gas
Exploration and production
United States 1,215 592 3,181 1,102
Non-U.S. 1,885 937 5,438 2,370
Refining and marketing
United States 392 241 1,168 625
Non-U.S. 501 110 1,092 741
Total petroleum and natural gas $3,993 $1,880 $10,879 $4,838
Chemicals
United States 132 199 551 541
Non-U.S. 132 154 395 421
Other operations 148 108 394 290
Corporate and financing (115) (136) (429) (419)
Total $4,290 $2,205 $11,790 $5,671
Earnings per common share $1.23 $0.63 $3.39 $1.63
Earnings per common share
- assuming dilution $1.22 $0.62 $3.35 $1.61
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
Third Quarter Nine Months
2000 1999 2000 1999
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
United States 718 708 731 728
Canada 288 328 297 315
Europe 679 613 706 625
Asia-Pacific 253 308 259 313
Africa 331 334 316 326
Other Non-U.S. 217 186 216 189
Worldwide 2,486 2,477 2,525 2,496
Worldwide production adjusted
for entitlement price effects 2,521 2,569
Natural gas production available for sale,
millions of cubic feet daily (mcfd)
United States 2,867 2,872 2,891 2,852
Canada 857 718 818 683
Europe 2,757 2,701 4,134 3,984
Asia-Pacific 1,801 2,131 1,779 1,998
Other Non-U.S. 424 278 394 271
Worldwide 8,706 8,700 10,016 9,788
Worldwide production adjusted
for entitlement price effects 8,806 10,136
Petroleum product sales (kbd)
United States 2,678 3,021 2,702 2,934
Canada 579 598 574 581
Europe 2,192 2,518 2,105 2,555
Asia-Pacific 1,677 1,738 1,631 1,839
Other Non-U.S. 975 1,004 958 989
Worldwide 8,101 8,879 7,970 8,898
Gasolines, naphthas 3,219 3,532 3,153 3,447
Heating oils, kerosene, diesel 2,320 2,496 2,336 2,629
Aviation fuels 775 847 752 829
Heavy fuels 704 697 678 707
Specialty products 1,083 1,307 1,051 1,286
Total 8,101 8,879 7,970 8,898
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
Third Quarter Nine Months
2000 1999 2000 1999
Refinery throughput (kbd)
United States 1,888 1,972 1,877 1,915
Canada 470 450 457 444
Europe 1,600 1,762 1,544 1,771
Asia-Pacific 1,478 1,422 1,447 1,547
Other Non-U.S. 300 293 287 295
Worldwide 5,736 5,899 5,612 5,972
Chemicals product revenue
($ millions)
United States 2,826 2,062 7,653 5,414
Non-U.S. 3,045 2,129 8,335 5,728
Worldwide $5,871 $4,191 $15,988 $11,142
Chemicals prime product sales,
thousands of metric tons (kt)
United States 2,729 2,945 8,751 8,765
Non-U.S. 3,309 3,343 10,402 9,861
Worldwide 6,038 6,288 19,153 18,626
EXXON MOBIL CORPORATION
THIRD QUARTER 2000
$ MILLIONS
Third Quarter Nine Months
2000 1999 2000 1999
Capital and Exploration Expenditures
Exploration and production
United States 478 406 1,295 1,239
Non-U.S. 1,251 1,366 3,612 5,232
Total 1,729 1,772 4,907 6,471
Refining and marketing
United States 301 232 657 647
Non-U.S. 264 353 654 866
Total 565 585 1,311 1,513
Chemicals, other operations, and administrative
United States 84 185 268 573
Non-U.S. 268 393 808 1,293
Total 352 578 1,076 1,866
Worldwide $2,646 $2,935 $7,294 $9,850
Exploration expenses charged to income
included above
Consolidated affiliates
United States 42 60 109 165
Non-U.S. 184 230 490 678
Equity companies - ExxonMobil share
Non-U.S. 2 4 12 28
Worldwide $228 $294 $611 $871
EXXON MOBIL CORPORATION
NET INCOME
$ Millions Per Common Share
1997 - First Quarter 3,001 0.84
- Second Quarter 2,815 0.80
- Third Quarter 2,712 0.77
- Fourth Quarter 3,204 0.91
Year $11,732 $3.32
1998 - First Quarter 2,525 0.72
- Second Quarter 2,262 0.65
- Third Quarter 1,909 0.55
- Fourth Quarter 1,378 0.39
Year $8,074 $2.31
1999 - First Quarter 1,484 0.42
- Second Quarter 1,954 0.57
- Third Quarter 2,188 0.63
- Fourth Quarter 2,284 0.66
Year $7,910 $2.28
2000 - First Quarter 3,480 1.00
- Second Quarter 4,530 1.30
- Third Quarter 4,490 1.29
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