10-Q 1 r10q080707.htm 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 June 30, 2007


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 is a large accelerated filer, an accelerated filer, or a non-accelerated filer.  See definition of "accelerated filer and large accelerated filer" in Rule 12b-2 of the Exchange Act.

         Large accelerated filer   X        Accelerated filer               Non-accelerated filer      


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 June 30, 2007

Common stock, without par value                                                              5,546,261,560                







EXXON MOBIL CORPORATION


FORM 10-Q


FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2007


TABLE OF CONTENTS


Page

Number


PART I.  FINANCIAL INFORMATION


Item 1.

Financial Statements


Condensed Consolidated Statement of Income

3

Three and six months ended June 30, 2007 and 2006


Condensed Consolidated Balance Sheet

4

As of June 30, 2007 and December 31, 2006


Condensed Consolidated Statement of Cash Flows

5

Six months ended June 30, 2007 and 2006


Notes to Condensed Consolidated Financial Statements

6-16


Item 2.

Management's Discussion and Analysis of Financial

Condition and Results of Operations

17-21


Item 3.

Quantitative and Qualitative Disclosures About Market Risk

22


Item 4.

Controls and Procedures

22


PART II.  OTHER INFORMATION


Item 1.

Legal Proceedings

22-23


Item 2.

Unregistered Sales of Equity Securities and Use of Proceeds

23


Item 4.

Submission of Matters to a Vote of Security Holders

24-26


Item 6.

Exhibits

26


Signature

27


Index to Exhibits

28




-2-



PART I.  FINANCIAL INFORMATION



Item 1.  Financial Statements


EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)



 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
  

2007

  

2006

  

2007

  

2006

 

REVENUES AND OTHER INCOME

            

Sales and other operating revenue (1)

$

95,059

 

$

96,024

 

$

179,233

 

$

182,341

 

Income from equity affiliates

 

2,015

  

1,687

  

3,930

  

3,487

 

Other income

 

1,276

  

1,323

  

2,410

  

2,186

 

       Total revenues and other income

 

98,350

  

99,034

  

185,573

  

188,014

 

 

            

COSTS AND OTHER DEDUCTIONS

            

Crude oil and product purchases

 

47,627

  

48,180

  

87,669

  

91,001

 

Production and manufacturing expenses

 

7,678

  

7,416

  

14,961

  

14,840

 

Selling, general and administrative expenses

 

3,788

  

3,557

  

7,180

  

7,023

 

Depreciation and depletion

 

2,994

  

2,760

  

5,936

  

5,404

 

Exploration expenses, including dry holes

 

353

  

176

  

625

  

458

 

Interest expense

 

96

  

107

  

199

  

272

 

Sales-based taxes (1)

 

7,810

  

8,211

  

15,094

  

15,875

 

Other taxes and duties

 

9,888

  

10,170

  

19,479

  

19,043

 

Income applicable to minority interests

 

188

  

253

  

438

  

435

 

       Total costs and other deductions

 

80,422

  

80,830

  

151,581

  

154,351

 

 

            

INCOME BEFORE INCOME TAXES

 

17,928

  

18,204

  

33,992

  

33,663

 

       Income taxes

 

7,668

  

7,844

  

14,452

  

14,903

 

NET INCOME

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 
             

 

            

NET INCOME PER COMMON SHARE (dollars)

$

1.85

 

$

1.74

 

$

3.49

 

$

3.12

 

 

            

NET INCOME PER COMMON SHARE

            

 - ASSUMING DILUTION (dollars)

$

1.83

 

$

1.72

 

$

3.45

 

$

3.09

 
             
             

DIVIDENDS PER COMMON SHARE (dollars)

$

0.35

 

$

0.32

 

$

0.67

 

$

0.64

 
             
             

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

            

         operating revenue

$

7,810

 

$

8,211

 

$

15,094

 

$

15,875

 
             
             

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)


 

June 30,

 

Dec. 31,

 
 

2007

 

2006

 

ASSETS

        

Current assets

        

   Cash and cash equivalents

 

$

28,959

  

$

28,244

 

   Cash and cash equivalents - restricted (note 3)

  

4,604

   

4,604

 

   Notes and accounts receivable - net

  

30,315

   

28,942

 

   Inventories

        

     Crude oil, products and merchandise

  

10,866

   

8,979

 

     Materials and supplies

  

2,029

   

1,735

 

   Prepaid taxes and expenses

  

3,947

   

3,273

 

     Total current assets

  

80,720

   

75,777

 

Property, plant and equipment - net

  

116,058

   

113,687

 

Investments and other assets

  

31,537

   

29,551

 
         

     TOTAL ASSETS

 

$

228,315

  

$

219,015

 
         

LIABILITIES

        

Current liabilities

        

   Notes and loans payable

 

$

2,033

  

$

1,702

 

   Accounts payable and accrued liabilities

  

41,247

   

39,082

 

   Income taxes payable

  

8,636

   

8,033

 

     Total current liabilities

  

51,916

   

48,817

 

Long-term debt

  

6,757

   

6,645

 

Deferred income tax liabilities

  

21,548

   

20,851

 

Other long-term liabilities

  

31,744

   

28,858

 
         

     TOTAL LIABILITIES

  

111,965

   

105,171

 
         

Commitments and contingencies (note 3)

        
         

SHAREHOLDERS' EQUITY

        

Common stock, without par value:

        

   Authorized:  

9,000 million shares

        

   Issued:      

8,019 million shares

  

4,795

   

4,786

 

Earnings reinvested

  

211,283

   

195,207

 

Accumulated other comprehensive income

        

   Cumulative foreign exchange translation adjustment

  

5,381

   

3,733

 

   Postretirement benefits reserves adjustment

  

(6,655

)

  

(6,495

)

Common stock held in treasury:

        

       2,473 million shares at June 30, 2007

  

(98,454

)

    

       2,290 million shares at December 31, 2006

      

(83,387

)

         

     TOTAL SHAREHOLDERS' EQUITY

  

116,350

   

113,844

 
         

     TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

 

$

228,315

  

$

219,015

 
         

The number of shares of common stock issued and outstanding at June 30, 2007 and

December 31, 2006 were 5,546,261,560 and 5,728,702,212, 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)




  

Six Months Ended

 
  

June 30,

 
   

2007

   

2006

 

CASH FLOWS FROM OPERATING ACTIVITIES

        

   Net income

 

$

19,540

  

$

18,760

 

   Depreciation and depletion

  

5,936

   

5,404

 

   Changes in operational working capital, excluding cash and debt

  

(366

)

  

1,002

 

   All other items - net

  

494

   

761

 
         

    Net cash provided by operating activities

  

25,604

   

25,927

 
         

CASH FLOWS FROM INVESTING ACTIVITIES

        

   Additions to property, plant and equipment

  

(6,892

)

  

(7,586

)

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

  

1,673

   

1,450

 

   Other investing activities - net

  

(1,104

)

  

(640

)

         

    Net cash used in investing activities

  

(6,323

)

  

(6,776

)

         

CASH FLOWS FROM FINANCING ACTIVITIES

        

   Additions to long-term debt

  

99

   

72

 

   Reductions in long-term debt

  

(75

)

  

(27

)

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

  

246

   

106

 

   Cash dividends to ExxonMobil shareholders

  

(3,786

)

  

(3,883

)

   Cash dividends to minority interests

  

(142

)

  

(125

)

   Changes in minority interests and sales/(purchases)

        

      of affiliate stock

  

(319

)

  

(252

)

   Tax benefits related to stock-based awards

  

237

   

128

 

   Net ExxonMobil shares acquired

  

(15,421

)

  

(12,394

)

         

    Net cash used in financing activities

  

(19,161

)

  

(16,375

)

         

Effects of exchange rate changes on cash

  

595

   

666

 
         

Increase/(decrease) in cash and cash equivalents

  

715

   

3,442

 

Cash and cash equivalents at beginning of period

  

28,244

   

28,671

 

CASH AND CASH EQUIVALENTS AT END OF PERIOD

 

$

28,959

  

$

32,113

 
         

SUPPLEMENTAL DISCLOSURES

        

   Income taxes paid

 

$

12,382

  

$

12,221

 

   Cash interest paid

 

$

246

  

$

988

 
  
  
 

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 2006 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 Change for Uncertainty in Income Taxes


Effective January 1, 2007, the Corporation adopted the Financial Accounting Standards Board’s (FASB) Interpretation No. 48 (FIN 48), "Accounting for Uncertainty in Income Taxes".  FIN 48 is an interpretation of FASB Statement No. 109, "Accounting for Income Taxes", and prescribes a comprehensive model for recognizing, measuring, presenting and disclosing in the financial statements uncertain tax positions that the Corporation has taken or expects to take in its income tax returns.  Upon the adoption of FIN 48, the Corporation recognized a transition gain of $267 million in shareholders’ equity.  The gain reflected the recognition of several refund claims, partly offset by increased liability reserves.


The Corporation is subject to income taxation in many jurisdictions around the world.  The total amount of unrecognized income tax benefits in these jurisdictions at January 1, 2007, was $3.7 billion, almost all of which is classified as long term.  Resolution of the related tax positions through negotiations with the relevant tax authorities or through litigation will take many years to complete.  Accordingly, it is difficult to predict the timing of resolution for individual tax positions.  However, the Corporation does not anticipate that the total amount of unrecognized tax benefits will significantly increase or decrease in the next 12 months.  Given the long time periods involved in resolving individual tax positions, the Corporation does not expect that the recognition of unrecognized tax benefits will have a material impact on the Corporation’s effective income tax rate in any given year.


The unrecognized tax benefits described above will not be included in the Corporation's annual Form 10-K contractual obligations table because the Corporation is unable to make reasonably reliable estimates of the timing of cash settlements with the respective taxing authorities.  The total amount of unrecognized tax benefits will be disclosed in a footnote to the contractual obligations table.


The following table summarizes the tax years that remain subject to examination by major tax jurisdiction:


 

Country of Operation

Open Tax Years

   
 

Abu Dhabi

2000-2006

 

Angola

2002-2006

 

Australia

2000-2006

 

Canada

1990-2006

 

Equatorial Guinea

1996-2006

 

Germany

1998-2006

 

Japan

2002-2006

 

Malaysia

1983-2006

 

Nigeria

1998-2006

 

Norway

1993-2006

 

United Kingdom

2002-2006

 

United States

1989-2006


The Corporation classifies interest on income tax related balances as interest expense or interest income and classifies tax related penalties as operating expense.  


At January 1, 2007, the Corporation had accrued interest payable of $0.5 billion related to income tax reserve balances.


-6-



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 and tax disputes. Management has regular litigation and tax 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.


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. The first judgment from the United States District Court for the District of Alaska in the amount of $5 billion was vacated by the United States Court of Appeals for the Ninth Circuit as being excessive under the Constitution. The second judgment in the amount of $4 billion was vacated by the Ninth Circuit panel without argument and sent back for the District Court to reconsider in light of the recent U.S. Supreme Court decision in Campbell v. State Farm. The most recent District Court judgment for punitive damages was for $4.5 billion plus interest and was entered in January 2004. The Corporation posted a $5.4 billion letter of credit. ExxonMobil and the plaintiffs appealed this decision to the Ninth Circuit, which ruled on December 22, 2006, that the award be reduced to $2.5 billion. On January 12, 2007, ExxonMobil petitioned the Ninth Circuit Court of Appeals for a rehearing en banc of its appeal. On May 23, 2007, with two dissenting opinions, the Ninth Circuit determined not to re-hear ExxonMobil's appeal before the full court. ExxonMobil will now proceed with a petition for writ of certiorari to the U.S. Supreme Court. While it is reasonably possible that a liability for punitive damages may have been incurred from the Exxon Valdez grounding, it is not possible to predict the ultimate outcome or to reasonably estimate any such potential liability.


In December 2000, a jury in the 15th Judicial Circuit Court of Montgomery County, Alabama, returned a verdict against the Corporation in a dispute over royalties in the amount of $88 million in compensatory damages and $3.4 billion in punitive damages in the case of Exxon Corporation v. State of Alabama, et al. The verdict was upheld by the trial court in May 2001. In December 2002, the Alabama Supreme Court vacated the $3.5 billion jury verdict. The case was retried and in November 2003, a state district court jury in Montgomery, Alabama, returned a verdict against Exxon Mobil Corporation. The verdict included $63.5 million in compensatory damages and $11.8 billion in punitive damages. In March 2004, the district court judge reduced the amount of punitive damages to $3.5 billion. ExxonMobil believes the judgment is not justified by the evidence, that any punitive damage award is not justified by either the facts or the law, and that the amount of the award is grossly excessive and unconstitutional. ExxonMobil has appealed the decision to the Alabama Supreme Court. The Alabama Supreme Court heard oral arguments on February 6, 2007. Management believes that the likelihood of the judgment being upheld is remote. While it is reasonably possible that a liability may have been incurred by ExxonMobil from this dispute over royalties, it is not possible to predict the ultimate outcome or to reasonably estimate any such potential liability. In May 2004, the Corporation posted a $4.5 billion supersedeas bond as required by Alabama law to stay execution of the judgment pending appeal. The Corporation has pledged to the issuer of the bond collateral consisting of cash and short-term, high-quality securities with an aggregate value of approximately $4.6 billion. This collateral is reported as restricted cash and cash equivalents on the Condensed Consolidated Balance Sheet. Under the terms of the pledge agreement, the Corporation is entitled to receive the income generated from the cash and securities and to make investment decisions, but is restricted from using the pledged cash and securities for any other purpose until such time the bond is canceled.



-7-


In 2001, a Louisiana state court jury awarded compensatory damages of $56 million and punitive damages of $1 billion to a landowner for damage caused by a third party that leased the property from the landowner. The third party provided pipe cleaning and storage services for the Corporation and other entities. The Louisiana Fourth Circuit Court of Appeals reduced the punitive damage award to $112 million in 2005. The Corporation appealed this decision to the Louisiana Supreme Court which, in March 2006, refused to hear the appeal. ExxonMobil has fully accrued and paid the compensatory and punitive damage awards. The Corporation appealed the punitive damage award to the U.S. Supreme Court, which on February 26, 2007, vacated the judgment and remanded the case to the Louisiana Fourth Circuit Court of Appeals for reconsideration in light of the recent U.S. Supreme Court decision in Williams v. Phillip Morris USA.


Tax issues for 1989 to 1993 remain pending before the U.S. Tax Court. The ultimate resolution of these issues is not expected to have a materially adverse effect upon the Corporation’s operations or financial condition.


Other Contingencies


 

As of June 30, 2007

 

       Equity

  

       Other

   
 

    Company

  

   Third Party

   
 

 Obligations

  

  Obligations

 

  Total

 
 

(millions of dollars)

Total guarantees

 

$

   4,030

 

  $

     739

 

$

  4,769

 


The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2007, for $4,769 million, primarily relating to guarantees for notes, loans and performance under contracts. Included in this amount were guarantees by consolidated affiliates of $4,030 million, representing 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 June 30, 2007, 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 Chavez in February of this year, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro heavy oil development on May 1, 2007.  This development had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the project.  ExxonMobil's net investment in Cerro Negro producing assets is about $750 million, which is less than one percent of ExxonMobil's worldwide property, plant and equipment.


The decree also required conversion of the Cerro Negro project into a "mixed enterprise" structure and an increase in PdVSA's or another Venezuelan state-owned oil company's ownership interest in the project, with the stipulation that if an agreement was not reached for the formation of the mixed enterprise during a specified period of time, the government would "directly take on the activities" carried out by the joint venture.  ExxonMobil's affiliate was not able to reach agreement on the formation of a mixed enterprise and on June 27, 2007, the government took over ExxonMobil's 41.67 percent interest in the Cerro Negro project.  Discussions with Venezuelan authorities over the compensation to be paid to ExxonMobil have not yet been completed.  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.



-8-



4.

Comprehensive Income



 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
  

2007

  

2006

  

2007

  

2006

 
 

(millions of dollars)

 
             

Net income

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 

Other comprehensive income

            

 (net of income taxes)

            

Foreign exchange translation adjustment

 

1,225

  

1,476

  

1,648

  

1,890

 

Postretirement benefits reserves adjustment

            

 (excluding amortization)

 

(167

)

 

0

  

(575

)

 

0

 

Amortization of postretirement benefits reserves

            

 adjustment included in net periodic benefit costs

 

214

  

0

  

415

  

0

 

Minimum pension liability adjustment

            

 (before December 31, 2006, adoption of FAS 158)

 

0

  

(81

)

 

0

  

(98

)

Total comprehensive income

$

11,532

 

$

11,755

 

$

21,028

 

$

20,552

 



5.

Earnings Per Share



 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
  

2007

  

2006

  

2007

  

2006

 
             

NET INCOME PER COMMON SHARE

            

Net income (millions of dollars)

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 

 

            

Weighted average number of common shares

            

  outstanding (millions of shares)

 

5,555

  

5,971

  

5,603

  

6,019

 
             

Net income per common share (dollars)

$

1.85

 

$

1.74

 

$

3.49

 

$

3.12

 
             

NET INCOME PER COMMON SHARE

            

 - ASSUMING DILUTION

            

Net income (millions of dollars)

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 
             

Weighted average number of common shares

            

  outstanding (millions of shares)

 

5,555

  

5,971

  

5,603

  

6,019

 

    Effect of employee stock-based awards

 

65

  

59

  

62

  

57

 

Weighted average number of common shares

            

  outstanding - assuming dilution

 

5,620

  

6,030

  

5,665

  

6,076

 
             

Net income per common share

            

   - assuming dilution (dollars)

$

1.83

 

$

1.72

 

$

3.45

 

$

3.09

 




-9-



6.

Pension and Other Postretirement Benefits



 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
  

2007

  

2006

  

2007

  

2006

 
 

(millions of dollars)

 

Pension Benefits - U.S.

            

   Components of net benefit cost

            

      Service cost

$

93

 

$

83

 

$

190

 

$

168

 

      Interest cost

 

172

  

158

  

344

  

317

 

      Expected return on plan assets

 

(212

)

 

(155

)

 

(422

)

 

(312

)

      Amortization of actuarial loss/(gain)

            

        and prior service cost

 

67

  

67

  

134

  

136

 

      Net pension enhancement and

            

        curtailment/settlement cost

 

48

  

40

  

95

  

79

 

      Net benefit cost

$

168

 

$

193

 

$

341

 

$

388

 
             
             

Pension Benefits - Non-U.S.

            

   Components of net benefit cost

            

      Service cost

$

112

 

$

107

 

$

221

 

$

210

 

      Interest cost

 

247

  

221

  

484

  

436

 

      Expected return on plan assets

 

(270

)

 

(245

)

 

(533

)

 

(482

)

      Amortization of actuarial loss/(gain)

            

        and prior service cost

 

111

  

127

  

223

  

253

 

      Net pension enhancement and

            

        curtailment/settlement cost

 

9

  

1

  

9

  

2

 

      Net benefit cost

$

209

 

$

211

 

$

404

 

$

419

 
             
             

Other Postretirement Benefits

            

   Components of net benefit cost

            

      Service cost

$

30

 

$

19

 

$

57

 

$

37

 

      Interest cost

 

98

  

75

  

210

  

152

 

      Expected return on plan assets

 

(8

)

 

(10

)

 

(23

)

 

(20

)

      Amortization of actuarial loss/(gain)

            

        and prior service cost

 

80

  

53

  

158

  

106

 

      Net benefit cost

$

200

 

$

137

 

$

402

 

$

275

 






-10-



7.

Disclosures about Segments and Related Information



 

Three Months Ended

 

Six Months Ended

 
 

June 30,

 

June 30,

 
  

2007

  

2006

  

2007

  

2006

 
 

(millions of dollars)

 

EARNINGS AFTER INCOME TAX

            

  Upstream

            

    United States

$

1,222

 

$

1,644

 

$

2,399

 

$

2,924

 

    Non-U.S.

 

4,731

  

5,490

  

9,595

  

10,593

 

  Downstream

            

    United States

 

1,745

  

1,354

  

2,584

  

2,033

 

    Non-U.S.

 

1,648

  

1,131

  

2,721

  

1,723

 

  Chemical

            

    United States

 

204

  

189

  

550

  

518

 

    Non-U.S.

 

809

  

651

  

1,699

  

1,271

 

  All other

 

(99

)

 

(99

)

 

(8

)

 

(302

)

  Corporate total

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 
             

SALES AND OTHER OPERATING REVENUE (1)

          

  Upstream

            

     United States

$

1,436

 

$

1,400

 

$

2,798

 

$

3,177

 

     Non-U.S.

 

5,303

  

8,262

  

10,796

  

15,801

 

  Downstream

            

     United States

 

25,645

  

25,656

  

46,905

  

46,784

 

     Non-U.S.

 

53,472

  

52,277

  

101,113

  

99,981

 

  Chemical

            

     United States

 

3,460

  

3,260

  

6,649

  

6,485

 

     Non-U.S.

 

5,740

  

5,165

  

10,964

  

10,105

 

  All other

 

3

  

4

  

8

  

8

 

  Corporate total

$

95,059

 

$

96,024

 

$

179,233

 

$

182,341

 
             

(1) Includes sales-based taxes

            
           

INTERSEGMENT REVENUE

            

  Upstream

            

     United States

$

1,780

 

$

2,085

 

$

3,343

 

$

3,939

 

     Non-U.S.

 

11,670

  

10,350

  

22,265

  

19,224

 

  Downstream

            

     United States

 

3,561

  

3,294

  

6,343

  

6,076

 

     Non-U.S.

 

12,885

  

12,349

  

23,826

  

23,332

 

  Chemical

            

     United States

 

2,217

  

2,100

  

3,914

  

3,923

 

     Non-U.S.

 

2,166

  

1,816

  

3,688

  

3,398

 

  All other

 

90

  

64

  

169

  

132

 





-11-



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 ($1,639 million long-term at June 30, 2007) and the debt securities due 2007-2011 ($52 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 June 30, 2007

Revenues and other income

               

Sales and other operating revenue,

               

including sales-based taxes

$

4,142

 

$

-

 

$

90,917

 

$

-

 

$

95,059

 

Income from equity affiliates

 

10,151

  

(1

)

 

1,999

  

(10,134

)

 

2,015

 

Other income

 

60

  

-

  

1,216

  

-

  

1,276

 

Intercompany revenue

 

9,467

  

25

  

85,939

  

(95,431

)

 

-

 

Total revenues and other income

 

23,820

  

24

  

180,071

  

(105,565

)

 

98,350

 

Costs and other deductions

               

Crude oil and product purchases

 

8,619

  

-

  

127,760

  

(88,752

)

 

47,627

 

Production and manufacturing

               

expenses

 

1,833

  

-

  

7,155

  

(1,310

)

 

7,678

 

Selling, general and administrative

               

expenses

 

681

  

-

  

3,311

  

(204

)

 

3,788

 

Depreciation and depletion

 

397

  

-

  

2,597

  

-

  

2,994

 

Exploration expenses, including dry

               

holes

 

42

  

-

  

311

  

-

  

353

 

Interest expense

 

1,570

  

51

  

3,844

  

(5,369

)

 

96

 

Sales-based taxes

 

-

  

-

  

7,810

  

-

  

7,810

 

Other taxes and duties

 

11

  

-

  

9,877

  

-

  

9,888

 

Income applicable to minority interests

 

-

  

-

  

188

  

-

  

188

 

Total costs and other deductions

 

13,153

  

51

  

162,853

  

(95,635

)

 

80,422

 

Income before income taxes

 

10,667

  

(27

)

 

17,218

  

(9,930

)

 

17,928

 

Income taxes

 

407

  

(9

)

 

7,270

  

-

  

7,668

 

Net income

$

10,260

 

$

(18

)

$

9,948

 

$

(9,930

)

$

10,260

 




-12-



   

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 June 30, 2006

Revenues and other income

               

Sales and other operating revenue,

               

including sales-based taxes

$

3,929

 

$

-

 

$

92,095

 

$

-

 

$

96,024

 

Income from equity affiliates

 

9,901

  

3

  

1,685

  

(9,902

)

 

1,687

 

Other income

 

217

  

-

  

1,106

  

-

  

1,323

 

Intercompany revenue

 

11,047

  

23

  

84,441

  

(95,511

)

 

-

 

Total revenues and other income

 

25,094

  

26

  

179,327

  

(105,413

)

 

99,034

 

Costs and other deductions

               

Crude oil and product purchases

 

10,273

  

-

  

128,037

  

(90,130

)

 

48,180

 

Production and manufacturing

               

expenses

 

1,752

  

-

  

6,951

  

(1,287

)

 

7,416

 

Selling, general and administrative

               

expenses

 

669

  

-

  

3,039

  

(151

)

 

3,557

 

Depreciation and depletion

 

342

  

-

  

2,418

  

-

  

2,760

 

Exploration expenses, including dry

               

holes

 

49

  

-

  

127

  

-

  

176

 

Interest expense

 

1,083

  

46

  

2,924

  

(3,946

)

 

107

 

Sales-based taxes

 

-

  

-

  

8,211

  

-

  

8,211

 

Other taxes and duties

 

10

  

-

  

10,160

  

-

  

10,170

 

Income applicable to minority interests

 

-

  

-

  

253

  

-

  

253

 

Total costs and other deductions

 

14,178

  

46

  

162,120

  

(95,514

)

 

80,830

 

Income before income taxes

 

10,916

  

(20

)

 

17,207

  

(9,899

)

 

18,204

 

Income taxes

 

556

  

(8

)

 

7,296

  

-

  

7,844

 

Net income

$

10,360

 

$

(12

)

$

9,911

 

$

(9,899

)

$

10,360

 


Condensed consolidated statement of income for six months ended June 30, 2007

Revenues and other income

               

Sales and other operating revenue,

               

including sales-based taxes

$

7,999

 

$

-

 

$

171,234

 

$

-

 

$

179,233

 

Income from equity affiliates

 

19,318

  

6

  

3,903

  

(19,297

)

 

3,930

 

Other income

 

282

  

-

  

2,128

  

-

  

2,410

 

Intercompany revenue

 

17,748

  

51

  

163,828

  

(181,627

)

 

-

 

Total revenues and other income

 

45,347

  

57

  

341,093

  

(200,924

)

 

185,573

 

Costs and other deductions

               

Crude oil and product purchases

 

16,499

  

-

  

240,006

  

(168,836

)

 

87,669

 

Production and manufacturing

               

expenses

 

3,547

  

-

  

13,947

  

(2,533

)

 

14,961

 

Selling, general and administrative

               

expenses

 

1,272

  

-

  

6,297

  

(389

)

 

7,180

 

Depreciation and depletion

 

785

  

-

  

5,151

  

-

  

5,936

 

Exploration expenses, including dry

               

holes

 

142

  

-

  

483

  

-

  

625

 

Interest expense

 

3,016

  

101

  

7,332

  

(10,250

)

 

199

 

Sales-based taxes

 

-

  

-

  

15,094

  

-

  

15,094

 

Other taxes and duties

 

24

  

-

  

19,455

  

-

  

19,479

 

Income applicable to minority interests

 

-

  

-

  

438

  

-

  

438

 

Total costs and other deductions

 

25,285

  

101

  

308,203

  

(182,008

)

 

151,581

 

Income before income taxes

 

20,062

  

(44

)

 

32,890

  

(18,916

)

 

33,992

 

Income taxes

 

522

  

(17

)

 

13,947

  

-

  

14,452

 

Net income

$

19,540

 

$

(27

)

$

18,943

 

$

(18,916

)

$

19,540

 




-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 income for six months ended June 30, 2006

Revenues and other income

               

Sales and other operating revenue,

               

including sales-based taxes

$

8,150

 

$

-

 

$

174,191

 

$

-

 

$

182,341

 

Income from equity affiliates

 

18,344

  

12

  

3,482

  

(18,351

)

 

3,487

 

Other income

 

408

  

-

  

1,778

  

-

  

2,186

 

Intercompany revenue

 

19,816

  

43

  

162,244

  

(182,103

)

 

-

 

Total revenues and other income

 

46,718

  

55

  

341,695

  

(200,454

)

 

188,014

 

Costs and other deductions

               

Crude oil and product purchases

 

18,727

  

-

  

244,236

  

(171,962

)

 

91,001

 

Production and manufacturing

               

expenses

 

3,789

  

-

  

13,567

  

(2,516

)

 

14,840

 

Selling, general and administrative

               

expenses

 

1,355

  

-

  

5,959

  

(291

)

 

7,023

 

Depreciation and depletion

 

653

  

-

  

4,751

  

-

  

5,404

 

Exploration expenses, including dry

               

holes

 

155

  

-

  

303

  

-

  

458

 

Interest expense

 

2,076

  

91

  

5,445

  

(7,340

)

 

272

 

Sales-based taxes

 

-

  

-

  

15,875

  

-

  

15,875

 

Other taxes and duties

 

16

  

-

  

19,027

  

-

  

19,043

 

Income applicable to minority interests

 

-

  

-

  

435

  

-

  

435

 

Total costs and other deductions

 

26,771

  

91

  

309,598

  

(182,109

)

 

154,351

 

Income before income taxes

 

19,947

  

(36

)

 

32,097

  

(18,345

)

 

33,663

 

Income taxes

 

1,187

  

(17

)

 

13,733

  

-

  

14,903

 

Net income

$

18,760

 

$

(19

)

$

18,364

 

$

(18,345

)

$

18,760

 




-14-



   

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 June 30, 2007

 

Cash and cash equivalents

$

6,272

 

$

-

 

$

22,687

 

$

-

 

$

28,959

 

Cash and cash equivalents - restricted

 

-

  

-

  

4,604

  

-

  

4,604

 

Notes and accounts receivable - net

 

4,159

  

6

  

28,253

  

(2,103

)

 

30,315

 

Inventories

 

1,383

  

-

  

11,512

  

-

  

12,895

 

Prepaid taxes and expenses

 

459

  

-

  

3,488

  

-

  

3,947

 

      Total current assets

 

12,273

  

6

  

70,544

  

(2,103

)

 

80,720

 

Property, plant and equipment - net

 

16,397

  

-

  

99,661

  

-

  

116,058

 

Investments and other assets

 

225,671

  

429

  

409,650

  

(604,213

)

 

31,537

 

Intercompany receivables

 

10,527

  

1,918

  

461,048

  

(473,493

)

 

-

 

      Total assets

$

264,868

 

$

2,353

 

$

1,040,903

 

$

(1,079,809

)

$

228,315

 
                

Notes and loan payables

$

135

 

$

13

 

$

1,885

 

$

-

 

$

2,033

 

Accounts payable and accrued liabilities

 

2,807

  

1

  

38,439

  

-

  

41,247

 

Income taxes payable

 

-

  

-

  

10,739

  

(2,103

)

 

8,636

 

      Total current liabilities

 

2,942

  

14

  

51,063

  

(2,103

)

 

51,916

 

Long-term debt

 

276

  

1,691

  

4,790

  

-

  

6,757

 

Deferred income tax liabilities

 

1,679

  

227

  

19,642

  

-

  

21,548

 

Other long-term liabilities

 

11,773

  

-

  

19,971

  

-

  

31,744

 

Intercompany payables

 

131,848

  

383

  

341,262

  

(473,493

)

 

-

 

      Total liabilities

 

148,518

  

2,315

  

436,728

  

(475,596

)

 

111,965

 
                

Earnings reinvested

 

211,283

  

(431

)

 

163,152

  

(162,721

)

 

211,283

 

Other shareholders' equity

 

(94,933

)

 

469

  

441,023

  

(441,492

)

 

(94,933

)

      Total shareholders' equity

 

116,350

  

38

  

604,175

  

(604,213

)

 

116,350

 

      Total liabilities and

               

        shareholders' equity

$

264,868

 

$

2,353

 

$

1,040,903

 

$

(1,079,809

)

$

228,315

 



Condensed consolidated balance sheet as of December 31, 2006

 

Cash and cash equivalents

$

6,355

 

$

-

 

$

21,889

 

$

-

 

$

28,244

 

Cash and cash equivalents - restricted

 

-

  

-

  

4,604

  

-

  

4,604

 

Notes and accounts receivable - net

 

2,057

  

-

  

26,885

  

-

  

28,942

 

Inventories

 

1,213

  

-

  

9,501

  

-

  

10,714

 

Prepaid taxes and expenses

 

357

  

-

  

2,916

  

-

  

3,273

 

      Total current assets

 

9,982

  

-

  

65,795

  

-

  

75,777

 

Property, plant and equipment - net

 

16,730

  

-

  

96,957

  

-

  

113,687

 

Investments and other assets

 

201,257

  

423

  

415,910

  

(588,039

)

 

29,551

 

Intercompany receivables

 

16,501

  

1,883

  

435,221

  

(453,605

)

 

-

 

      Total assets

$

244,470

 

$

2,306

 

$

1,013,883

 

$

(1,041,644

)

$

219,015

 
                

Notes and loan payables

$

90

 

$

13

 

$

1,599

 

$

-

 

$

1,702

 

Accounts payable and accrued liabilities

 

3,025

  

1

  

36,056

  

-

  

39,082

 

Income taxes payable

 

548

  

1

  

7,484

  

-

  

8,033

 

      Total current liabilities

 

3,663

  

15

  

45,139

  

-

  

48,817

 

Long-term debt

 

274

  

1,602

  

4,769

  

-

  

6,645

 

Deferred income tax liabilities

 

1,975

  

237

  

18,639

  

-

  

20,851

 

Other long-term liabilities

 

8,044

  

-

  

20,814

  

-

  

28,858

 

Intercompany payables

 

116,670

  

387

  

336,548

  

(453,605

)

 

-

 

      Total liabilities

 

130,626

  

2,241

  

425,909

  

(453,605

)

 

105,171

 
                

Earnings reinvested

 

195,207

  

(404

)

 

144,607

  

(144,203

)

 

195,207

 

Other shareholders' equity

 

(81,363

)

 

469

  

443,367

  

(443,836

)

 

(81,363

)

      Total shareholders' equity

 

113,844

  

65

  

587,974

  

(588,039

)

 

113,844

 

      Total liabilities and

               

        shareholders' equity

$

244,470

 

$

2,306

 

$

1,013,883

 

$

(1,041,644

)

$

219,015

 




-15-



   

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 six months ended June 30, 2007

 

Cash provided by/(used in) operating

               

activities

$

1,135

 

$

39

 

$

24,879

 

$

(449

)

$

25,604

 

Cash flows from investing activities

               

Additions to property, plant and

               

equipment

 

(622

)

 

-

  

(6,270

)

 

-

  

(6,892

)

Sales of long-term assets

 

156

  

-

  

1,517

  

-

  

1,673

 

Net intercompany investing

 

18,178

  

(35

)

 

(18,189

)

 

46

  

-

 

All other investing, net

 

-

  

-

  

(1,104

)

 

-

  

(1,104

)

Net cash provided by/(used in)

               

investing activities

 

17,712

  

(35

)

 

(24,046

)

 

46

  

(6,323

)

Cash flows from financing activities

               

Additions to long-term debt

 

-

  

-

  

99

  

-

  

99

 

Reductions in long-term debt

 

-

  

-

  

(75

)

 

-

  

(75

)

Additions/(reductions) in short-term

               

debt - net

 

40

  

-

  

206

  

-

  

246

 

Cash dividends

 

(3,786

)

 

-

  

(449

)

 

449

  

(3,786

)

Net ExxonMobil shares sold/(acquired)

 

(15,421

)

 

-

  

-

  

-

  

(15,421

)

Net intercompany financing activity

 

-

  

(4

)

 

50

  

(46

)

 

-

 

All other financing, net

 

237

  

-

  

(461

)

 

-

  

(224

)

Net cash provided by/(used in)

               

financing activities

 

(18,930

)

 

(4

)

 

(630

)

 

403

  

(19,161

)

Effects of exchange rate changes

               

on cash

 

-

  

-

  

595

  

-

  

595

 

Increase/(decrease) in cash and cash

               

equivalents

$

(83

)

$

-

 

$

798

 

$

-

 

$

715

 



Condensed consolidated statement of cash flows for six months ended June 30, 2006

 

Cash provided by/(used in) operating

               

activities

$

1,687

 

$

54

 

$

25,330

 

$

(1,144

)

$

25,927

 

Cash flows from investing activities

               

Additions to property, plant and

               

equipment

 

(755

)

 

-

  

(6,831

)

 

-

  

(7,586

)

Sales of long-term assets

 

96

  

-

  

1,354

  

-

  

1,450

 

Net intercompany investing

 

12,576

  

(55

)

 

(12,611

)

 

90

  

-

 

All other investing, net

 

-

  

-

  

(640

)

 

-

  

(640

)

Net cash provided by/(used in)

               

investing activities

 

11,917

  

(55

)

 

(18,728

)

 

90

  

(6,776

)

Cash flows from financing activities

               

Additions to long-term debt

 

-

  

-

  

72

  

-

  

72

 

Reductions in long-term debt

 

-

  

-

  

(27

)

 

-

  

(27

)

Additions/(reductions) in short-term

               

debt - net

 

(122

)

 

-

  

228

  

-

  

106

 

Cash dividends

 

(3,883

)

 

-

  

(1,144

)

 

1,144

  

(3,883

)

Net ExxonMobil shares sold/(acquired)

 

(12,394

)

 

-

  

-

  

-

  

(12,394

)

Net intercompany financing activity

 

-

  

1

  

89

  

(90

)

 

-

 

All other financing, net

 

128

  

-

  

(377

)

 

-

  

(249

)

Net cash provided by/(used in)

               

financing activities

 

(16,271

)

 

1

  

(1,159

)

 

1,054

  

(16,375

)

Effects of exchange rate changes

               

on cash

 

-

  

-

  

666

  

-

  

666

 

Increase/(decrease) in cash and cash

               

equivalents

$

(2,667

)

$

-

 

$

6,109

 

$

-

 

$

3,442

 




-16-



EXXON MOBIL CORPORATION


Item 2.

Management's Discussion and Analysis of Financial Condition

and Results of Operations


FUNCTIONAL EARNINGS SUMMARY


 

Second Quarter

 

First Six Months

 
  

2007

  

2006

  

2007

  

2006

 
  

(millions of dollars)

 

Net Income (U.S. GAAP)

            

Upstream

            

   United States

$

1,222

 

$

1,644

 

$

2,399

 

$

2,924

 

   Non-U.S.

 

4,731

  

5,490

  

9,595

  

10,593

 

Downstream

            

   United States

 

1,745

  

1,354

  

2,584

  

2,033

 

   Non-U.S.

 

1,648

  

1,131

  

2,721

  

1,723

 

Chemical

            

   United States

 

204

  

189

  

550

  

518

 

   Non-U.S.

 

809

  

651

  

1,699

  

1,271

 

Corporate and financing

 

(99

)

 

(99

)

 

(8

)

 

(302

)

Net Income (U.S. GAAP)

$

10,260

 

$

10,360

 

$

19,540

 

$

18,760

 
             
             

Net income per common share (dollars)

$

1.85

 

$

1.74

 

$

3.49

 

$

3.12

 

Net income per common share

            

   - assuming dilution (dollars)

$

1.83

 

$

1.72

 

$

3.45

 

$

3.09

 




REVIEW OF SECOND QUARTER AND FIRST SIX MONTHS 2007 RESULTS


Exxon Mobil Corporation reported second quarter 2007 net income of $10,260 million.  Earnings per share were up 6 percent from the second quarter of 2006 to $1.83 reflecting the reduced number of shares outstanding.  Lower natural gas realizations were mostly offset by higher refining, marketing and chemical margins.  Excluding cumulative entitlement and divestment impacts, as well as OPEC quota effects, liquids production increased by 5 percent.


__________________________________________________________


Record first half net income of $19,540 million increased by 4 percent versus 2006.  Earnings per share of $3.45 increased by 12 percent due to strong earnings and the reduction in the number of shares outstanding.  Excluding cumulative entitlement and divestment impacts, as well as OPEC quota effects, liquids production increased by 6 percent.



 

Second Quarter

 

First Six Months

 
 

       2007

 

       2006

 

        2007

 

        2006

 
 

(millions of dollars)

 

Upstream earnings

            

   United States

$

1,222

 

$

1,644

 

$

2,399

 

$

2,924

 

   Non-U.S.

 

4,731

  

5,490

  

9,595

  

10,593

 

Total

$

5,953

 

$

7,134

 

$

11,994

 

$

13,517

 


Upstream earnings in the second quarter of 2007 were $5,953 million, down $1,181 million from 2006, primarily reflecting lower gas realizations, lower gains on asset sales and the absence of prior period tax items.  On an oil-equivalent basis, production decreased by 1 percent from the second quarter of 2006.  Excluding the cumulative impact of entitlements and divestments, as well as OPEC quota effects, production was up nearly 4 percent.


Liquids production of 2,668 kbd (thousands of barrels per day) was 34 kbd lower.  Mature field decline was partly offset by increased production from projects in Russia and Qatar.  Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, liquids production increased by 5 percent.



-17-



Second quarter natural gas production was 8,711 mcfd (millions of cubic feet per day) compared with 8,754 mcfd last year.  The impact of mature field decline and lower European demand was offset by higher volumes from projects in Qatar, Canada and Malaysia and the absence of planned maintenance activity in 2006.  Excluding cumulative entitlement and divestment effects natural gas production increased by nearly 1 percent.


Earnings from U.S. Upstream operations were $1,222 million, $422 million lower than the second quarter of 2006.  Non-U.S. Upstream earnings were $4,731 million, down $759 million from 2006.


__________________________________________________________


Upstream earnings for the first six months of 2007 were $11,994 million, a decrease of $1,523 million from 2006 due to lower liquids and natural gas realizations and lower gains from asset sales.  On an oil-equivalent basis, production decreased 2 percent from last year.  Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, production increased by 2 percent.


Liquids production of 2,707 kbd increased by 7 kbd from 2006.  Higher production from projects in West Africa and Russia was partly offset by mature field decline.  Excluding cumulative entitlement and divestment effects, as well as OPEC quota impacts, liquids production increased 6 percent.


Natural gas production of 9,409 mcfd decreased 549 mcfd from 2006.  Lower volumes from mature field decline and lower European demand were partly offset by projects in Qatar, Canada and Malaysia.  


Earnings from U.S. Upstream operations for 2007 were $2,399 million, a decrease of $525 million.  Earnings outside the U.S. were $9,595 million, $998 million lower than 2006.




 

Second Quarter

 

First Six Months

 
 

       2007

 

       2006

 

        2007

 

        2006

 
 

(millions of dollars)

 

Downstream earnings

            

   United States

$

1,745

 

$

1,354

 

$

2,584

 

$

2,033

 

   Non-U.S.

 

1,648

  

1,131

  

2,721

  

1,723

 

Total

$

3,393

 

$

2,485

 

$

5,305

 

$

3,756

 


Downstream earnings in the second quarter of 2007 were $3,393 million, up $908 million from 2006, driven by higher refining and marketing margins and the sale of the Ingolstadt refinery in Germany.  Petroleum product sales were 6,974 kbd, 86 kbd lower than last year's second quarter.


U.S. Downstream earnings were $1,745 million, up $391 million from the second quarter of 2006.  Non-U.S. Downstream earnings of $1,648 million were $517 million higher.


__________________________________________________________


Downstream earnings in the first six months of 2007 were $5,305 million, an increase of $1,549 million from 2006 reflecting stronger worldwide refining and marketing margins and the sale of the Ingolstadt refinery in Germany.  Petroleum product sales of 7,085 kbd decreased from 7,118 kbd in 2006.


U.S. Downstream earnings were $2,584 million, up $551 million.  Non-U.S. Downstream earnings were $2,721 million, $998 million higher than last year.



-18-



 

Second Quarter

 

First Six Months

 
 

       2007

 

       2006

 

        2007

 

        2006

 
 

(millions of dollars)

 

Chemical earnings

            

   United States

$

204

 

$

189

 

$

550

 

$

518

 

   Non-U.S.

 

809

  

651

  

1,699

  

1,271

 

Total

$

1,013

 

$

840

 

$

2,249

 

$

1,789

 


Chemical earnings in the second quarter of 2007 were $1,013 million, up $173 million from 2006 due to improved margins.  Prime product sales of 6,897 kt (thousands of metric tons) in the second quarter of 2007 were up 42 kt from the prior year.


__________________________________________________________


Chemical earnings for the first six months of 2007 were $2,249 million, up $460 million from 2006 driven by higher margins.  Prime product sales were 13,702 kt, down 69 kt from 2006.



 

Second Quarter

 

First Six Months

 
 

       2007

 

       2006

 

        2007

 

        2006

 
 

(millions of dollars)

 
             

Corporate and financing earnings

$

(99

)

$

(99

)

$

(8

)

$

(302

)


Corporate and financing expenses in the second quarter of 2007 of $99 million were flat with 2006.


__________________________________________________________


Corporate and financing expenses for the first six months of 2007 were $8 million, a decrease of $294 million, mainly due to favorable tax items.



LIQUIDITY AND CAPITAL RESOURCES



 

Second Quarter

 

First Six Months

 
  

2007

  

2006

  

2007

  

2006

 
 

(millions of dollars)

 

Net cash provided by/(used in)

            

Operating activities

      

$

25,604

 

$

25,927

 

Investing activities

       

(6,323

)

 

(6,776

)

Financing activities

       

(19,161

)

 

(16,375

)

Effect of exchange rate changes

       

595

  

666

 

Increase/(decrease) in cash and cash equivalents

      

$

715

 

$

3,442

 
             

Cash and cash equivalents

      

$

28,959

 

$

32,113

 

Cash and cash equivalents - restricted (note 3)

       

4,604

  

4,604

 

Total cash and cash equivalents (at end of period)

      

$

33,563

 

$

36,717

 
             

Cash flow from operations and asset sales

            

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

$

11,318

 

$

11,296

 

$

25,604

 

$

25,927

 

Sales of subsidiaries, investments and property,

            

    plant and equipment

 

1,135

  

1,056

  

1,673

  

1,450

 

Cash flow from operations and asset sales

$

12,453

 

$

12,352

 

$

27,277

 

$

27,377

 


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.



-19-


Total cash and cash equivalents, including the $4.6 billion of restricted cash, was $33.6 billion at the end of the second quarter of 2007.


Cash provided by operating activities totaled $25,604 million for the first six months of 2007, similar to 2006.  The major source of funds was net income of $19,540 million, adjusted for the noncash provision of $5,936 million for depreciation and depletion, both of which increased.  Net changes in operational working capital in 2007 compared to 2006 provided an offset.  For additional details, see the Condensed Consolidated Statement of Cash Flows on page 5.


Investing activities for the first six months of 2007 used net cash of $6,323 million compared to $6,776 million in the prior year. Spending for additions to property, plant and equipment decreased $694 million to $6,892 million.  Proceeds from asset divestments of $1,673 million in 2007 were higher.


Cash flow from operations and asset sales in the first six months of 2007 of $27.3 billion, including asset sales of $1.7 billion, was comparable to the prior year period.  Cash flow from operations and asset sales in the second quarter of 2007 was $12.5 billion, including asset sales of $1.1 billion.


Net cash used in financing activities of $19,161 million in the first six months of 2007 increased $2,786 million reflecting a higher level of purchases of shares of ExxonMobil stock.


During the second quarter of 2007, Exxon Mobil Corporation purchased 99 million shares of its common stock for the treasury at a gross cost of $8.1 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 5,633 million at the end of the first quarter to 5,546 million at the end of the second quarter.


Gross share purchases in 2007 were $16.0 billion which reduced shares outstanding by 3.2 percent.  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 in the second quarter through dividends of $2.0 billion and share purchases to reduce shares outstanding of $7.0 billion, an increase of 14 percent versus the second quarter of 2006.  For the first half of 2007, distributions to shareholders totaled $17.8 billion, an increase of $2.9 billion versus 2006.


Total debt of $8.8 billion at June, 30, 2007, increased from $8.3 billion at year-end 2006.  The Corporation's debt to total capital ratio was 6.8 percent at the end of the second quarter of 2007 compared to 6.6 percent at year-end 2006.


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.


In accordance with a nationalization decree issued by Venezuela's President Chavez in February of this year, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro heavy oil development on May 1, 2007.  This development had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the project.  ExxonMobil's net investment in Cerro Negro producing assets is about $750 million, which is less than one percent of ExxonMobil's worldwide property, plant and equipment.


The decree also required conversion of the Cerro Negro project into a "mixed enterprise" structure and an increase in PdVSA's or another Venezuelan state-owned oil company's ownership interest in the project, with the stipulation that if an agreement was not reached for the formation of the mixed enterprise during a specified period of time, the government would "directly take on the activities" carried out by the joint venture.  ExxonMobil's affiliate was not able to reach agreement on the formation of a mixed enterprise and on June 27, 2007, the government took over ExxonMobil's 41.67 percent interest in the Cerro Negro project.  Discussions with Venezuelan authorities over the compensation to be paid to ExxonMobil have not yet been completed.  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.


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.



-20-




TAXES

 

Second Quarter

 

First Six Months

 
 

        2007

 

      2006

 

      2007

 

        2006

 
  

(millions of dollars)

 

Taxes

            

Income taxes

$

7,668

 

$

7,844

 

$

14,452

 

$

14,903

 

Sales-based taxes

 

7,810

  

8,211

  

15,094

  

15,875

 

All other taxes and duties

 

10,665

  

11,033

  

21,073

  

20,780

 

Total

$

26,143

 

$

27,088

 

$

50,619

 

$

51,558

 
             

Effective income tax rate

 

44

%

 

44

%

 

44

%

 

46

%


Income, sales-based and all other taxes and duties for the second quarter of 2007 of $26,143 million were down $945 million compared to 2006.  In the second quarter of 2007 income tax expense was $7,668 million and the effective income tax rate was 44 percent, compared to $7,844 million and 44 percent, respectively, in the prior year period.


__________________________________________________________


Income, sales-based and all other taxes and duties for the first six months of 2007 of $50,619 million were down $939 million compared to 2006.  In the first six months of 2007 income tax expense was $14,452 million and the effective income tax rate was 44 percent, compared to $14,903 million and 46 percent, respectively, in the prior year period.  Resolution of income tax related issues resulted in charges in the first six months of 2006.



CAPITAL AND EXPLORATION EXPENDITURES


 

Second Quarter

 

First Six Months

 
  

2007

  

2006

  

2007

  

2006

 
  

(millions of dollars)

 

Capital and exploration expenditures

            

Upstream (including exploration expenses)

$

3,866

 

$

3,932

 

$

7,335

 

$

8,019

 

Downstream

 

874

  

742

  

1,405

  

1,323

 

Chemical

 

276

  

186

  

495

  

330

 

Other

 

23

  

41

  

26

  

53

 

Total

$

5,039

 

$

4,901

 

$

9,261

 

$

9,725

 


ExxonMobil continued to actively invest in the second quarter, spending $5.0 billion on capital and exploration projects.  For the first six months of 2007, spending on capital and exploration projects was $9.3 billion.


Capital and exploration expenditures for full year 2006 were $19.9 billion and are expected to continue in this range 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 and related expenditures, resource recoveries, timing and capacities, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir performance; the outcome of commercial negotiations; potential liability resulting from pending or future litigation; 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 2006 Form 10-K.  We assume no duty to update these statements as of any future date.



-21-


Item 3.  Quantitative and Qualitative Disclosures About Market Risk


Information about market risks for the six months ended June 30, 2007, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form

10-K for 2006.


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 June 30, 2007.  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


Regarding previously reported matters, the Corporation and Chalmette Refining, L.L.C. (which is fifty-percent owned by the Corporation) have identified and reported noncompliance with certain air pollution control provisions for certain streams at their U.S. refineries under their respective 2005 and 2006 consent decrees with the U.S. Environmental Protection Agency ("EPA") et al. relating to EPA's New Source Review Enforcement Initiative.  Although penalties have not yet been assessed and no formal enforcement proceedings have been commenced under these consent decrees, the total penalties associated with disclosed noncompliance items are likely to exceed $100,000.  


Regarding another previously reported matter, on June 15, 2007, ExxonMobil Oil Corporation ("EMOC") entered into a Consent Order with the New York State Department of Environmental Conservation ("NYSDEC") to resolve the penalty phase of an enforcement action that had commenced in 2002.  In June 2002, the NYSDEC issued a Notice of Hearing and Complaint with respect to EMOC's distribution terminal in New Windsor, New York, alleging discharges of petroleum into waters of the State that were allegedly neither timely reported nor immediately contained.  In 2003, EMOC entered into a Consent Order with the State and agreed to a scope of work, with the issue of penalties reserved.  The present Consent Order settles the outstanding penalty issue for $250,000.  


Regarding the previously reported matter concerning the Corporation's Brooklyn, New York, terminal, on July 17, 2007, the New York Attorney General ("AG") filed a civil lawsuit against the Corporation in U.S. District Court for the Eastern District of New York. The AG alleges that (1) the Corporation wrongfully discharged, and has failed to timely investigate and remediate, several million gallons of petroleum and non-petroleum “pollutants,” which have contaminated air, subsurface soils, groundwater, wetlands and surface water in Greenpoint; (2) the plume continues to migrate into Newtown Creek; (3) the Corporation has wrongfully discharged certain petroleum constituents from its remediation system into Newtown Creek; (4) the Corporation violated its Consent Orders (and state law) by suspending operation of its remediation system in 2007; and (5) the discharge has placed area residents at risk due to potential toxic vapors from the contamination.  The complaint alleges that the Corporation violated several federal laws (RCRA, CWA, CERCLA and the Oil Pollution Act) and state statutes (i.e., New York Navigation Law and Environmental Conservation Law) and that the Corporation is liable under common law theories of public nuisance, indemnification and restitution. The State seeks, among other things, reimbursement of past and future remediation expenses, civil penalties under various state and federal statutes, natural resource damages and costs of restoration, injunctive relief and attorney fees. The complaint does not specify an amount of penalties or damages sought.



-22-



On May 16, 2007, the ExxonMobil Baytown Olefins Plant received a proposed Agreed Order from the Texas Commission on Environmental Quality ("TCEQ") relating to two alleged unauthorized air emissions events (January 1, 2006, and December 10, 2005), and one alleged violation of the related release reporting requirements for the December event. The Corporation is contesting the enforcement relating to the January 1, 2006, emissions event. TCEQ has argued for a total administrative penalty of $170,190, of which $160,000 is related to the contested issues.  The TCEQ referred the matter to its litigation division in July.


The U.S. Coast Guard, U.S. Environmental Protection Agency and the Department of Justice have alleged that the Company is responsible for a spill that occurred on or about January 10, 2006, on the Island End River near the Company's Everett Terminal facility in Everett, Massachusetts.  The Department of Justice has indicated that it intends to seek corrective action and penalties in excess of $100,000.


Refer to the relevant portions of note 3 on pages 7 and 8 of this Quarterly Report on Form 10-Q for further information on legal proceedings.



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


 

Issuer Purchase of Equity Securities for the Quarter Ended June 30, 2007

          
       

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

          
 

April, 2007

 

31,928,312

 

$78.12

 

31,928,312

  
          
 

May, 2007

 

34,594,451

 

$81.73

 

34,594,451

  
          
 

June, 2007

 

32,952,608

 

$83.79

 

32,952,608

  
          
 

Total

 

99,475,371

 

$81.25

 

99,475,371

 

(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.  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.




-23-


Item 4.  Submission of Matters to a Vote of Security Holders


At the annual meeting of shareholders on May 30, 2007, the following proposals were voted upon.  Percentages are based on the total of the shares voted For and Against.


             Concerning Election of Directors

  
     
  

 Votes

 

 Votes

             Nominees

 

 Cast For

 

 Withheld

             Michael J. Boskin

 

     4,450,845,595

93.0%

      332,662,710

             William W. George

 

     4,680,858,322

97.9%

      102,649,983

             James R. Houghton

 

     4,618,790,650

96.6%

      164,717,655

             William R. Howell

 

     4,594,185,591

96.0%

      189,322,714

             Reatha Clark King

 

     4,645,666,846

97.1%

      137,841,459

             Philip E. Lippincott

 

     4,624,158,297

96.7%

      159,350,008

             Marilyn Carlson Nelson

 

     4,654,418,611

97.3%

      129,089,694

             Samuel J. Palmisano

 

     4,682,322,635

97.9%

      101,185,670

             Steven S Reinemund

 

     4,689,466,769

98.0%

        94,041,536

             Walter V. Shipley

 

     4,666,385,008

97.6%

      117,123,297

             J. Stephen Simon

 

     4,661,892,049

97.5%

      121,616,256

             Rex W. Tillerson

 

     4,650,935,732

97.2%

      132,572,573

     

             Concerning Ratification of Independent Auditors

  

             Votes Cast For:

 

     4,629,664,471

98.0%

 

             Votes Cast Against:

 

          95,430,383

2.0%

 

             Abstentions:

 

          58,413,451

  

             Broker Non-Votes:

 

                          0

  
     

             Concerning Cumulative Voting

  

             Votes Cast For:

 

     1,188,070,531

31.9%

 

             Votes Cast Against:

 

     2,536,616,551

68.1%

 

             Abstentions:

 

          84,426,805

  

             Broker Non-Votes:

 

        974,394,418

  
   

             Concerning Special Shareholder Meetings

  

             Votes Cast For:

 

     1,776,227,449

47.7%

 

             Votes Cast Against:

 

     1,944,489,736

52.3%

 

             Abstentions:

 

          88,396,702

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Board Chairman and CEO

  

             Votes Cast For:

 

     1,490,198,067

40.0%

 

             Votes Cast Against:

 

     2,231,565,469

60.0%

 

             Abstentions:

 

          87,350,351

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Dividend Strategy

  

             Votes Cast For:

 

        211,258,526

5.7%

 

             Votes Cast Against:

 

     3,504,312,677

94.3%

 

             Abstentions:

 

          93,542,684

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Shareholder Advisory Vote on Executive Compensation

             Votes Cast For:

 

     1,487,477,280

41.3%

 

             Votes Cast Against:

 

     2,118,376,225

58.7%

 

             Abstentions:

 

        203,260,382

  

             Broker Non-Votes:

 

        974,394,418

  



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             Concerning CEO Compensation Decisions

  

             Votes Cast For:

 

        261,431,225

7.1%

 

             Votes Cast Against:

 

     3,404,006,556

92.9%

 

             Abstentions:

 

        143,676,106

  

             Broker Non-Votes:

 

        974,394,418

  
   

             Concerning Executive Compensation Report

  

             Votes Cast For:

 

        430,534,450

11.6%

 

             Votes Cast Against:

 

     3,275,987,445

88.4%

 

             Abstentions:

 

        102,591,992

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Executive Compensation Limit

  

             Votes Cast For:

 

        188,478,071

5.1%

 

             Votes Cast Against:

 

     3,517,698,843

94.9%

 

             Abstentions:

 

        102,936,973

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Incentive Pay Recoupment

  

             Votes Cast For:

 

     1,754,228,659

47.2%

 

             Votes Cast Against:

 

     1,965,507,487

52.8%

 

             Abstentions:

 

          89,377,741

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Political Contributions Report

  

             Votes Cast For:

 

        826,910,014

25.4%

 

             Votes Cast Against:

 

     2,422,502,196

74.6%

 

             Abstentions:

 

        559,701,677

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Amendment of EEO Policy

  

             Votes Cast For:

 

     1,342,391,658

37.7%

 

             Votes Cast Against:

 

     2,219,078,352

62.3%

 

             Abstentions:

 

        247,643,877

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Community Environmental Impact

  

             Votes Cast For:

 

        318,824,219

9.8%

 

             Votes Cast Against:

 

     2,932,668,098

90.2%

 

             Abstentions:

 

        557,621,570

  

             Broker Non-Votes:

 

        974,394,418

  
     

             Concerning Greenhouse Gas Emissions Goals

  

             Votes Cast For:

 

     1,020,056,278

31.1%

 

             Votes Cast Against:

 

     2,257,532,822

68.9%

 

             Abstentions:

 

        531,224,787

  

             Broker Non-Votes:

 

        974,694,418

  
     

             Concerning CO2 Information at the Pump

  

             Votes Cast For:

 

        234,982,362

7.1%

 

             Votes Cast Against:

 

     3,071,486,949

92.9%

 

             Abstentions:

 

        502,644,576

  

             Broker Non-Votes:

 

        974,394,418

  


-25-



     

             Concerning Renewable Energy Investment Levels

  

             Votes Cast For:

 

        237,673,643

7.3%

 

             Votes Cast Against:

 

     3,020,099,642

92.7%

 

             Abstentions:

 

        551,340,602

  

             Broker Non-Votes:

 

        974,394,418

  



For additional information, see the registrant's definitive proxy statement dated April 11, 2007, "Item 1 - Election of Directors" (beginning on page 12) and the items beginning with "Item 2 - Ratification of Independent Auditors", on page 44, through "Item 17 - Renewable Energy Investment Levels", ending on page 64.



Item 6.  Exhibits


Exhibit

Description


3(ii)

By-Laws, as revised to July 31, 2002.


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.




-26-






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: August 7, 2007  

By:   /s/  Patrick T. Mulva                        

        Name:  Patrick T. Mulva

           

        Title:     Vice President, Controller and

                      Principal Accounting Officer





-27-




INDEX TO EXHIBITS


Exhibit

Description


3(ii)

By-Laws, as revised to July 31, 2002.


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.








-28-