-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, PZkZMGeQzNj7li1F4QhSqjeXo7/2OobOXxbOtFxlQffUMFW29vjfPfoUjxzZ2Wng P91OTlKB7dNhdUYuogJcRA== 0001193125-09-165196.txt : 20090805 0001193125-09-165196.hdr.sgml : 20090805 20090805144557 ACCESSION NUMBER: 0001193125-09-165196 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 22 CONFORMED PERIOD OF REPORT: 20090630 FILED AS OF DATE: 20090805 DATE AS OF CHANGE: 20090805 FILER: COMPANY DATA: COMPANY CONFORMED NAME: EXXON MOBIL CORP CENTRAL INDEX KEY: 0000034088 STANDARD INDUSTRIAL CLASSIFICATION: PETROLEUM REFINING [2911] IRS NUMBER: 135409005 STATE OF INCORPORATION: NJ FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-02256 FILM NUMBER: 09987461 BUSINESS ADDRESS: STREET 1: 5959 LAS COLINAS BLVD CITY: IRVING STATE: TX ZIP: 75039-2298 BUSINESS PHONE: 9724441000 MAIL ADDRESS: STREET 1: 5959 LAS COLINAS BLVD CITY: IRVING STATE: TX ZIP: 75039-2298 FORMER COMPANY: FORMER CONFORMED NAME: EXXON CORP DATE OF NAME CHANGE: 19920703 FORMER COMPANY: FORMER CONFORMED NAME: STANDARD OIL CO OF NEW JERSEY DATE OF NAME CHANGE: 19721123 10-Q 1 d10q.htm FORM 10-Q Form 10-Q
Table of Contents

 

 

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, 2009

or

 

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from              to             

Commission File Number 1-2256

 

 

EXXON MOBIL CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

NEW JERSEY   13-5409005

(State or other jurisdiction of

incorporation or organization)

 

(I.R.S. Employer

Identification Number)

5959 Las Colinas Boulevard, Irving, Texas   75039-2298
(Address of principal executive offices)   (Zip Code)

(972) 444-1000

(Registrant’s telephone number, including area code)

 

 

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

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

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

 

Large accelerated filer     x    Accelerated filer   ¨
Non-accelerated filer   ¨    Smaller reporting company     ¨

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

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

 

Class

  

Outstanding as of June 30, 2009

Common stock, without par value    4,805,790,141

 

 

 


Table of Contents

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2009

TABLE OF CONTENTS

 

          Page
Number
PART I. FINANCIAL INFORMATION   

Item 1.

   Financial Statements   

Condensed Consolidated Statement of Income
Three and six months ended June 30, 2009 and 2008

   3

Condensed Consolidated Balance Sheet
As of June 30, 2009 and December 31, 2008

   4

Condensed Consolidated Statement of Cash Flows
Six months ended June 30, 2009 and 2008

   5

Notes to Condensed Consolidated Financial Statements

   6

Item 2.

   Management’s Discussion and Analysis of Financial Condition and Results of Operations    16

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

Item 2.

   Unregistered Sales of Equity Securities and Use of Proceeds    23

Item 4.

   Submission of Matters to a Vote of Security Holders    24

Item 6.

   Exhibits    25

Signature

   26

Index to Exhibits

   27

 

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Table of Contents

PART I. FINANCIAL INFORMATION

 

Item 1. Financial Statements

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2009     2008     2009    2008  

REVENUES AND OTHER INCOME

         

Sales and other operating revenue (1)

   $ 72,167      $ 133,776      $ 134,295    $ 246,999   

Income from equity affiliates

     1,583        2,983        3,053      5,792   

Other income (2)

     707        1,313        1,137      2,135   
                               

Total revenues and other income

     74,457        138,072        138,485      254,926   
                               

COSTS AND OTHER DEDUCTIONS

         

Crude oil and product purchases

     36,903        76,695        64,697      137,666   

Production and manufacturing expenses

     8,029        10,066        16,008      18,959   

Selling, general and administrative expenses

     3,519        4,389        6,967      8,191   

Depreciation and depletion

     3,004        3,090        5,797      6,194   

Exploration expenses, including dry holes

     490        338        841      680   

Interest expense

     343        107        450      237   

Sales-based taxes (1)

     6,216        9,538        12,122      17,970   

Other taxes and duties

     8,436        11,418        16,236      22,124   
                               

Total costs and other deductions

     66,940        115,641        123,118      212,021   
                               

Income before income taxes

     7,517        22,431        15,367      42,905   

Income taxes

     3,571        10,526        6,719      19,828   
                               

Net income including noncontrolling interests

     3,946        11,905        8,648      23,077   

Net income/(loss) attributable to noncontrolling interests

     (4     225        148      507   
                               

Net income attributable to ExxonMobil

   $ 3,950      $ 11,680      $ 8,500    $ 22,570   
                               

Earnings per common share (dollars)

   $ 0.82      $ 2.24      $ 1.74    $ 4.27   

Earnings per common share
- assuming dilution (dollars)

   $ 0.81      $ 2.22      $ 1.73    $ 4.24   

Dividends per common share (dollars)

   $ 0.42      $ 0.40      $ 0.82    $ 0.75   

 

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

   $ 6,216      $ 9,538      $ 12,122    $ 17,970   

(2)    Includes $62 million gain from sale of non-U.S. investment, net of related $143 million foreign exchange loss

   $ 0      $ (81   $ 0    $ (81

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.

 

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Table of Contents

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(millions of dollars)

 

     June 30,
2009
    Dec. 31,
2008
 

ASSETS

    

Current assets

    

Cash and cash equivalents

   $ 15,576      $ 31,437   

Marketable securities

     153        570   

Notes and accounts receivable - net

     26,862        24,702   

Inventories

    

Crude oil, products and merchandise

     9,855        9,331   

Materials and supplies

     2,586        2,315   

Other current assets

     4,464        3,911   
                

Total current assets

     59,496        72,266   

Investments, advances and long-term assets

     30,358        28,556   

Property, plant and equipment - net

     127,861        121,346   

Other assets, including intangibles, net

     6,946        5,884   
                

Total assets

   $ 224,661      $ 228,052   
                

LIABILITIES

    

Current liabilities

    

Notes and loans payable

   $ 2,157      $ 2,400   

Accounts payable and accrued liabilities

     41,895        36,643   

Income taxes payable

     7,562        10,057   
                

Total current liabilities

     51,614        49,100   

Long-term debt

     7,117        7,025   

Postretirement benefits reserves

     18,287        20,729   

Deferred income tax liabilities

     21,880        19,726   

Other long-term liabilities

     14,610        13,949   
                

Total liabilities

     113,508        110,529   
                

Commitments and contingencies (note 3)

    

EQUITY

    

Common stock, without par value:

    

Authorized: 9,000 million shares

    

Issued: 8,019 million shares

     5,260        5,314   

Earnings reinvested

     270,160        265,680   

Accumulated other comprehensive income

    

Cumulative foreign exchange translation adjustment

     2,676        1,146   

Postretirement benefits reserves adjustment

     (10,925     (11,077

Common stock held in treasury:

    

3,213 million shares at June 30, 2009

     (160,579  

3,043 million shares at December 31, 2008

       (148,098
                

ExxonMobil share of equity

     106,592        112,965   

Noncontrolling interests

     4,561        4,558   
                

Total equity

     111,153        117,523   
                

Total liabilities and equity

   $ 224,661      $ 228,052   
                

The number of shares of common stock issued and outstanding at June 30, 2009 and December 31, 2008 were 4,805,790,141 and 4,976,055,639, respectively.

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.

 

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Table of Contents

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)

 

     Six Months Ended
June 30,
 
     2009     2008  

CASH FLOWS FROM OPERATING ACTIVITIES

    

Net income including noncontrolling interests

   $ 8,648      $ 23,077   

Depreciation and depletion

     5,797        6,194   

Changes in operational working capital, excluding cash and debt

     (992     7,286   

All other items - net

     (2,346     (1,719
                

Net cash provided by operating activities

     11,107        34,838   
                

CASH FLOWS FROM INVESTING ACTIVITIES

    

Additions to property, plant and equipment

     (10,238     (8,851

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

     911        1,572   

Other investing activities - net

     (386     (1,489
                

Net cash used in investing activities

     (9,713     (8,768
                

CASH FLOWS FROM FINANCING ACTIVITIES

    

Additions to long-term debt

     145        36   

Reductions in long-term debt

     (20     (53

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

     (350     (215

Cash dividends to ExxonMobil shareholders

     (4,020     (3,977

Cash dividends to noncontrolling interests

     (133     (215

Changes in noncontrolling interests

     (124     (142

Tax benefits related to stock-based awards

     55        150   

Common stock acquired

     (13,098     (18,226

Common stock sold

     185        438   
                

Net cash used in financing activities

     (17,360     (22,204
                

Effects of exchange rate changes on cash

     105        1,121   
                

Increase/(decrease) in cash and cash equivalents

     (15,861     4,987   

Cash and cash equivalents at beginning of period

     31,437        33,981   
                

Cash and cash equivalents at end of period

   $ 15,576      $ 38,968   
                

SUPPLEMENTAL DISCLOSURES

    

Income taxes paid

   $ 8,540      $ 15,927   

Cash interest paid

   $ 195      $ 337   

The information in the Notes to Condensed Consolidated Financial Statements

is an integral part of these statements.

 

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EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

1. Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation’s 2008 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. Subsequent events have been evaluated through August 5, 2009, the date the financial statements were issued. The Corporation’s exploration and production activities are accounted for under the “successful efforts” method.

 

2. Accounting Changes

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

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

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

 

3. Litigation and Other Contingencies

Litigation

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

 

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Table of Contents

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

On June 15, 2009, the U. S. Court of Appeals for the Ninth Circuit awarded plaintiffs in the Valdez litigation interest on the $507.5 million punitive damages award from the date of the original trial court judgment in 1996. The Court also denied the Corporation’s claims to recover up to $70 million in appeal costs. An after-tax charge of $140 million was recorded in the second quarter of 2009 to reflect the Court’s decision.

Other Contingencies

 

     As of June 30, 2009
     Equity
Company
Obligations
   Other
Third Party
Obligations
   Total
     (millions of dollars)

Total guarantees

   $ 6,599    $ 1,985    $ 8,584

The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 2009, for $8,584 million, primarily relating to guarantees for notes, loans and performance under contracts. Included in this amount were guarantees by consolidated affiliates of $6,599 million, for ExxonMobil’s share of obligations of certain equity companies. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation’s outstanding unconditional purchase obligations at June 30, 2009, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.

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

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

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

 

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Table of Contents
4. Comprehensive Income

 

    Three Months Ended
June 30,
    Six Months Ended
June 30,
 
    2009     2008     2009     2008  
    (millions of dollars)  

Net income including noncontrolling interests

  $ 3,946      $ 11,905      $ 8,648      $ 23,077   

Other comprehensive income (net of income taxes)

       

Foreign exchange translation adjustment

    3,035        (110     1,624        1,602   

Adjustment for foreign exchange translation loss included in net income

    0        171        0        171   

Postretirement benefits reserves adjustment (excluding amortization)

    (492     (107     (534     (247

Amortization of postretirement benefits reserves adjustment included in net periodic benefit costs

    354        186        704        375   
                               

Comprehensive income including noncontrolling interests

    6,843        12,045        10,442        24,978   

Comprehensive income attributable to noncontrolling interests

    242        22        260        550   
                               

Comprehensive income attributable to ExxonMobil

  $ 6,601      $ 12,023      $ 10,182      $ 24,428   
                               

 

5. Earnings Per Share

 

     Three Months Ended
June 30,
   Six Months Ended
June 30,
     2009    2008    2009    2008

EARNINGS PER COMMON SHARE

           

Net income attributable to ExxonMobil (millions of dollars)

   $ 3,950    $ 11,680    $ 8,500    $ 22,570

Weighted average number of common shares outstanding (millions of shares)

     4,851      5,248      4,896      5,296

Earnings per common share (dollars)

   $ 0.82    $ 2.24    $ 1.74    $ 4.27

EARNINGS PER COMMON SHARE - ASSUMING DILUTION

           

Net income attributable to ExxonMobil (millions of dollars)

   $ 3,950    $ 11,680    $ 8,500    $ 22,570

Weighted average number of common shares outstanding (millions of shares)

     4,851      5,248      4,896      5,296

Effect of employee stock-based awards

     20      33      20      33
                           

Weighted average number of common shares outstanding - assuming dilution

     4,871      5,281      4,916      5,329
                           

Earnings per common share - assuming dilution (dollars)

   $ 0.81    $ 2.22    $ 1.73    $ 4.24

 

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Table of Contents
6. Pension and Other Postretirement Benefits

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2009     2008     2009     2008  
     (millions of dollars)  

Pension Benefits - U.S.

        

Components of net benefit cost

        

Service cost

   $ 106      $ 96      $ 209      $ 191   

Interest cost

     202        182        404        364   

Expected return on plan assets

     (164     (229     (328     (458

Amortization of actuarial loss/(gain) and prior service cost

     174        59        347        118   

Net pension enhancement and curtailment/settlement cost

     121        43        242        87   
                                

Net benefit cost

   $ 439      $ 151      $ 874      $ 302   
                                

Pension Benefits - Non-U.S.

        

Components of net benefit cost

        

Service cost

   $ 100      $ 114      $ 203      $ 227   

Interest cost

     275        305        536        606   

Expected return on plan assets

     (216     (317     (421     (635

Amortization of actuarial loss/(gain) and prior service cost

     177        109        344        210   

Net pension enhancement and curtailment/settlement cost

     0        2        0        2   
                                

Net benefit cost

   $ 336      $ 213      $ 662      $ 410   
                                

Other Postretirement Benefits

        

Components of net benefit cost

        

Service cost

   $ 23      $ 28      $ 50      $ 57   

Interest cost

     104        129        214        237   

Expected return on plan assets

     (2     (22     (18     (34

Amortization of actuarial loss/(gain) and prior service cost

     58        72        129        156   
                                

Net benefit cost

   $ 183      $ 207      $ 375      $ 416   
                                

 

7. Financial Instruments and Derivatives

The fair value of financial instruments is determined by reference to various market data and other valuation techniques as appropriate. The only category of financial instruments where the difference between fair value and recorded book value is of significance is long-term debt. The estimated fair value of total long-term debt, including capitalized lease obligations, was $7.8 billion and $7.6 billion, at June 30, 2009 and December 31, 2008, respectively, as compared to recorded book values of $7.1 billion and $7.0 billion at June 30, 2009 and December 31, 2008, respectively.

The estimated fair value of derivatives outstanding and recorded on the balance sheet was a net payable of $122 million and a net receivable of $118 million on June 30, 2009 and December 31, 2008, respectively. The Corporation would have paid or received this amount from third parties if these derivatives had been settled in the open market based on observable market inputs.

The fair value of derivatives outstanding at June 30, 2009, is immaterial in relation to total assets of $225 billion or net income attributable to ExxonMobil for the six months ended June 30, 2009, of $8.5 billion.

 

-9-


Table of Contents
8. Disclosures about Segments and Related Information

 

     Three Months Ended
June 30,
    Six Months Ended
June 30,
 
     2009     2008     2009     2008  
     (millions of dollars)  

EARNINGS AFTER INCOME TAX

        

Upstream

        

United States

   $ 813      $ 2,034      $ 1,173      $ 3,665   

Non-U.S.

     2,999        7,978        6,142        15,132   

Downstream

        

United States

     (15     293        337        691   

Non-U.S.

     527        1,265        1,308        2,033   

Chemical

        

United States

     79        102        162        386   

Non-U.S.

     288        585        555        1,329   

All other

     (741     (577     (1,177     (666
                                

Corporate total

   $ 3,950      $ 11,680      $ 8,500      $ 22,570   
                                

SALES AND OTHER OPERATING REVENUE (1)

        

Upstream

        

United States

   $ 753      $ 2,010      $ 1,574      $ 3,774   

Non-U.S.

     5,101        8,989        10,277        17,388   

Downstream

        

United States

     18,853        36,066        34,046        64,524   

Non-U.S.

     41,238        75,667        77,223        140,184   

Chemical

        

United States

     2,317        4,170        4,165        7,822   

Non-U.S.

     3,897        6,870        7,000        13,299   

All other

     8        4        10        8   
                                

Corporate total

   $ 72,167      $ 133,776      $ 134,295      $ 246,999   
                                

 

(1)    Includes sales-based taxes

       

INTERSEGMENT REVENUE

        

Upstream

        

United States

   $ 1,615      $ 3,072      $ 2,819      $ 5,633   

Non-U.S.

     7,250        17,260        13,826        32,141   

Downstream

        

United States

     2,568        5,241        4,237        9,102   

Non-U.S.

     9,525        21,406        16,404        37,949   

Chemical

        

United States

     1,834        3,177        3,055        5,605   

Non-U.S.

     1,647        2,670        2,931        5,102   

All other

     72        71        143        138   

 

-10-


Table of Contents
9. 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 ($2,034 million long-term at June 30, 2009) and the debt securities due 2009-2011 ($26 million long-term and $13 million short-term) of SeaRiver Maritime Financial Holdings, Inc., a 100 percent owned subsidiary of Exxon Mobil Corporation.

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

 

     Exxon Mobil
Corporation
Parent
Guarantor
    SeaRiver
Maritime
Financial
Holdings
Inc.
    All Other
Subsidiaries
    Consolidating
and
Eliminating
Adjustments
    Consolidated  
     (millions of dollars)  

Condensed consolidated statement of income for three months ended June 30, 2009

  

Revenues and other income

          

Sales and other operating revenue, including sales-based taxes

   $ 2,633      $ —        $ 69,534      $ —        $ 72,167   

Income from equity affiliates

     4,271        (3     1,560        (4,245     1,583   

Other income

     440        —          267        —          707   

Intercompany revenue

     7,441        1        64,665        (72,107     —     
                                        

Total revenues and other income

     14,785        (2     136,026        (76,352     74,457   
                                        

Costs and other deductions

          

Crude oil and product purchases

     7,511        —          98,426        (69,034     36,903   

Production and manufacturing expenses

     1,913        —          7,458        (1,342     8,029   

Selling, general and administrative expenses

     560        —          3,128        (169     3,519   

Depreciation and depletion

     361        —          2,643        —          3,004   

Exploration expenses, including dry holes

     77        —          413        —          490   

Interest expense

     597        56        1,272        (1,582     343   

Sales-based taxes

     —          —          6,216        —          6,216   

Other taxes and duties

     (43     —          8,479        —          8,436   
                                        

Total costs and other deductions

     10,976        56        128,035        (72,127     66,940   
                                        

Income before income taxes

     3,809        (58     7,991        (4,225     7,517   

Income taxes

     (141     (21     3,733        —          3,571   
                                        

Net income including noncontrolling interests

     3,950        (37     4,258        (4,225     3,946   

Net income attributable to noncontrolling interests

     —          —          (4     —          (4
                                        

Net income attributable to ExxonMobil

   $ 3,950      $ (37   $ 4,262      $ (4,225   $ 3,950   
                                        

 

-11-


Table of Contents
     Exxon Mobil
Corporation
Parent
Guarantor
     SeaRiver
Maritime
Financial
Holdings
Inc.
     All Other
Subsidiaries
   Consolidating
and
Eliminating
Adjustments
     Consolidated
     (millions of dollars)

Condensed consolidated statement of income for three months ended June 30, 2008

Revenues and other income

              

Sales and other operating revenue, including sales-based taxes

   $ 5,214       $ —         $ 128,562    $ —         $ 133,776

Income from equity affiliates

     11,765         (3      2,977      (11,756      2,983

Other income

     100         —           1,213      —           1,313

Intercompany revenue

     15,052         11         132,434      (147,497      —  
                                        

Total revenues and other income

     32,131         8         265,186      (159,253      138,072
                                        

Costs and other deductions

              

Crude oil and product purchases

     15,519         —           203,434      (142,258      76,695

Production and manufacturing expenses

     2,293         —           9,210      (1,437      10,066

Selling, general and administrative expenses

     1,194         —           3,401      (206      4,389

Depreciation and depletion

     379         —           2,711      —           3,090

Exploration expenses, including dry holes

     67         —           271      —           338

Interest expense

     739         52         3,019      (3,703      107

Sales-based taxes

     —           —           9,538      —           9,538

Other taxes and duties

     16         —           11,402      —           11,418
                                        

Total costs and other deductions

     20,207         52         242,986      (147,604      115,641
                                        

Income before income taxes

     11,924         (44      22,200      (11,649      22,431

Income taxes

     244         (15      10,297      —           10,526
                                        

Net income including noncontrolling interests

     11,680         (29      11,903      (11,649      11,905

Net income attributable to noncontrolling interests

     —           —           225      —           225
                                        

Net income attributable to ExxonMobil

   $ 11,680       $ (29    $ 11,678    $ (11,649    $ 11,680
                                        

Condensed consolidated statement of income for six months ended June 30, 2009

Revenues and other income

              

Sales and other operating revenue, including sales-based taxes

   $ 4,800       $ —         $ 129,495    $ —         $ 134,295

Income from equity affiliates

     9,023         4         3,010      (8,984      3,053

Other income

     585         —           552      —           1,137

Intercompany revenue

     13,306         2         117,300      (130,608      —  
                                        

Total revenues and other income

     27,714         6         250,357      (139,592      138,485
                                        

Costs and other deductions

              

Crude oil and product purchases

     12,585         —           176,277      (124,165      64,697

Production and manufacturing expenses

     3,879         —           14,752      (2,623      16,008

Selling, general and administrative expenses

     1,218         —           6,096      (347      6,967

Depreciation and depletion

     728         —           5,069      —           5,797

Exploration expenses, including dry holes

     132         —           709      —           841

Interest expense

     958         111         2,894      (3,513      450

Sales-based taxes

     —           —           12,122      —           12,122

Other taxes and duties

     (34      —           16,270      —           16,236
                                        

Total costs and other deductions

     19,466         111         234,189      (130,648      123,118
                                        

Income before income taxes

     8,248         (105      16,168      (8,944      15,367

Income taxes

     (252      (41      7,012      —           6,719
                                        

Net income including noncontrolling interests

     8,500         (64      9,156      (8,944      8,648

Net income attributable to noncontrolling interests

     —           —           148      —           148
                                        

Net income attributable to ExxonMobil

   $ 8,500       $ (64    $ 9,008    $ (8,944    $ 8,500
                                        

 

-12-


Table of Contents
     Exxon Mobil
Corporation
Parent
Guarantor
   SeaRiver
Maritime
Financial
Holdings
Inc.
     All Other
Subsidiaries
   Consolidating
and
Eliminating
Adjustments
     Consolidated
     (millions of dollars)

Condensed consolidated statement of income for six months ended June 30, 2008

Revenues and other income

              

Sales and other operating revenue, including sales-based taxes

   $ 9,729    $ —         $ 237,270    $ —         $ 246,999

Income from equity affiliates

     22,833      (2      5,775      (22,814      5,792

Other income

     125      —           2,010      —           2,135

Intercompany revenue

     26,652      28         245,034      (271,714      —  
                                      

Total revenues and other income

     59,339      26         490,089      (294,528      254,926
                                      

Costs and other deductions

              

Crude oil and product purchases

     27,369      —           370,676      (260,379      137,666

Production and manufacturing expenses

     4,204      —           17,539      (2,784      18,959

Selling, general and administrative expenses

     1,896      —           6,714      (419      8,191

Depreciation and depletion

     772      —           5,422      —           6,194

Exploration expenses, including dry holes

     146      —           534      —           680

Interest expense

     1,933      105         6,529      (8,330      237

Sales-based taxes

     —        —           17,970      —           17,970

Other taxes and duties

     31      —           22,093      —           22,124
                                      

Total costs and other deductions

     36,351      105         447,477      (271,912      212,021
                                      

Income before income taxes

     22,988      (79      42,612      (22,616      42,905

Income taxes

     418      (27      19,437      —           19,828
                                      

Net income including noncontrolling interests

     22,570      (52      23,175      (22,616      23,077

Net income attributable to noncontrolling interests

     —        —           507      —           507
                                      

Net income attributable to ExxonMobil

   $ 22,570    $ (52    $ 22,668    $ (22,616    $ 22,570
                                      

 

-13-


Table of Contents
     Exxon Mobil
Corporation
Parent
Guarantor
     SeaRiver
Maritime
Financial
Holdings
Inc.
     All Other
Subsidiaries
   Consolidating
and
Eliminating
Adjustments
     Consolidated  
     (millions of dollars)  

Condensed consolidated balance sheet as of June 30, 2009

  

Cash and cash equivalents

   $ 960       $ —         $ 14,616    $ —         $ 15,576   

Marketable securities

     —           —           153      —           153   

Notes and accounts receivable - net

     4,129         27         25,275      (2,569      26,862   

Inventories

     1,325         —           11,116      —           12,441   

Other current assets

     482         —           3,982      —           4,464   
                                          

Total current assets

     6,896         27         55,142      (2,569      59,496   

Property, plant and equipment - net

     17,502         —           110,359      —           127,861   

Investments and other assets

     213,132         473         446,136      (622,437      37,304   

Intercompany receivables

     8,630         2,208         442,365      (453,203      —     
                                          

Total assets

   $ 246,160       $ 2,708       $ 1,054,002    $ (1,078,209    $ 224,661   
                                          

Notes and loan payables

   $ 10       $ 13       $ 2,134    $ —         $ 2,157   

Accounts payable and accrued liabilities

     3,463         —           38,432      —           41,895   

Income taxes payable

     —           —           10,131      (2,569      7,562   
                                          

Total current liabilities

     3,473         13         50,697      (2,569      51,614   

Long-term debt

     279         2,060         4,778      —           7,117   

Postretirement benefits reserves

     9,284         —           9,003      —           18,287   

Deferred income tax liabilities

     1,260         162         20,458      —           21,880   

Other long-term liabilities

     5,106         —           9,504      —           14,610   

Intercompany payables

     120,166         382         332,655      (453,203      —     
                                          

Total liabilities

     139,568         2,617         427,095      (455,772      113,508   
                                          

Earnings reinvested

     270,160         (628      125,625      (124,997      270,160   

Other ExxonMobil equity

     (163,568      719         496,721      (497,440      (163,568
                                          

ExxonMobil share of equity

     106,592         91         622,346      (622,437      106,592   

Noncontrolling interests

     —           —           4,561      —           4,561   
                                          

Total equity

     106,592         91         626,907      (622,437      111,153   
                                          

Total liabilities and equity

   $ 246,160       $ 2,708       $ 1,054,002    $ (1,078,209    $ 224,661   
                                          

Condensed consolidated balance sheet as of December 31, 2008

  

Cash and cash equivalents

   $ 4,011       $ —         $ 27,426    $ —         $ 31,437   

Marketable securities

     —           —           570      —           570   

Notes and accounts receivable - net

     2,486         3         23,224      (1,011      24,702   

Inventories

     1,253         —           10,393      —           11,646   

Other current assets

     348         —           3,563      —           3,911   
                                          

Total current assets

     8,098         3         65,176      (1,011      72,266   

Property, plant and equipment - net

     16,939         —           104,407      —           121,346   

Investments and other assets

     202,471         469         456,237      (624,737      34,440   

Intercompany receivables

     10,026         2,057         432,902      (444,985      —     
                                          

Total assets

   $ 237,534       $ 2,529       $ 1,058,722    $ (1,070,733    $ 228,052   
                                          

Notes and loan payables

   $ 7       $ 13       $ 2,380    $ —         $ 2,400   

Accounts payable and accrued liabilities

     3,352         —           33,291      —           36,643   

Income taxes payable

     —           —           11,068      (1,011      10,057   
                                          

Total current liabilities

     3,359         13         46,739      (1,011      49,100   

Long-term debt

     279         1,951         4,795      —           7,025   

Postretirement benefits reserves

     11,653         —           9,076      —           20,729   

Deferred income tax liabilities

     120         178         19,428      —           19,726   

Other long-term liabilities

     5,175         —           8,774      —           13,949   

Intercompany payables

     103,983         382         340,620      (444,985      —     
                                          

Total liabilities

     124,569         2,524         429,432      (445,996      110,529   
                                          

Earnings reinvested

     265,680         (564      116,805      (116,241      265,680   

Other ExxonMobil equity

     (152,715      569         507,927      (508,496      (152,715
                                          

ExxonMobil share of equity

     112,965         5         624,732      (624,737      112,965   

Noncontrolling interests

     —           —           4,558      —           4,558   
                                          

Total equity

     112,965         5         629,290      (624,737      117,523   
                                          

Total liabilities and equity

   $ 237,534       $ 2,529       $ 1,058,722    $ (1,070,733    $ 228,052   
                                          

 

-14-


Table of Contents
     Exxon Mobil
Corporation
Parent
Guarantor
     SeaRiver
Maritime
Financial
Holdings
Inc.
     All Other
Subsidiaries
     Consolidating
and
Eliminating
Adjustments
     Consolidated  
     (millions of dollars)  
Condensed consolidated statement of cash flows for six months ended June 30, 2009   

Cash provided by/(used in) operating activities

   $ (2,130    $ 1       $ 13,424       $ (188    $ 11,107   
                                            

Cash flows from investing activities

              

Additions to property, plant and equipment

     (1,321      —           (8,917      —           (10,238

Sales of long-term assets

     97         —           814         —           911   

Net intercompany investing

     17,178         (151      (17,349      322         —     

All other investing, net

     —           —           (386      —           (386
                                            

Net cash provided by/(used in) investing activities

     15,954         (151      (25,838      322         (9,713
                                            

Cash flows from financing activities

              

Additions to long-term debt

     —           —           145         —           145   

Reductions in long-term debt

     —           —           (20      —           (20

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

     3         —           (353      —           (350

Cash dividends

     (4,020      —           (188      188         (4,020

Net ExxonMobil shares sold/(acquired)

     (12,913      —           —           —           (12,913

Net intercompany financing activity

     —           —           172         (172      —     

All other financing, net

     55         150         (257      (150      (202
                                            

Net cash provided by/(used in) financing activities

     (16,875      150         (501      (134      (17,360
                                            

Effects of exchange rate changes on cash

     —           —           105         —           105   
                                            

Increase/(decrease) in cash and cash equivalents

   $ (3,051    $ —         $ (12,810    $ —         $ (15,861
                                            

Condensed consolidated statement of cash flows for six months ended June 30, 2008

  

Cash provided by/(used in) operating activities

   $ 22,935       $ 21       $ 34,334       $ (22,452    $ 34,838   
                                            

Cash flows from investing activities

              

Additions to property, plant and equipment

     (835      —           (8,016      —           (8,851

Sales of long-term assets

     98         —           1,474         —           1,572   

Net intercompany investing

     (2,008      (122      1,961         169         —     

All other investing, net

     —           —           (1,489      —           (1,489
                                            

Net cash provided by/(used in) investing activities

     (2,745      (122      (6,070      169         (8,768
                                            

Cash flows from financing activities

              

Additions to long-term debt

     —           —           36         —           36   

Reductions in long-term debt

     —           —           (53      —           (53

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

     147         —           (362      —           (215

Cash dividends

     (3,977      —           (22,452      22,452         (3,977

Net ExxonMobil shares sold/(acquired)

     (17,788      —           —           —           (17,788

Net intercompany financing activity

     —           1         68         (69      —     

All other financing, net

     150         100         (357      (100      (207
                                            

Net cash provided by/(used in) financing activities

     (21,468      101         (23,120      22,283         (22,204
                                            

Effects of exchange rate changes on cash

     —           —           1,121         —           1,121   
                                            

Increase/(decrease) in cash and cash equivalents

   $ (1,278    $ —         $ 6,265       $ —         $ 4,987   
                                            

 

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Table of Contents

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  

Earnings (U.S. GAAP)

   2009     2008     2009     2008  
     (millions of dollars)  

Upstream

        

United States

   $ 813      $ 2,034      $ 1,173      $ 3,665   

Non-U.S.

     2,999        7,978        6,142        15,132   

Downstream

        

United States

     (15     293        337        691   

Non-U.S.

     527        1,265        1,308        2,033   

Chemical

        

United States

     79        102        162        386   

Non-U.S.

     288        585        555        1,329   

Corporate and financing

     (741     (577     (1,177     (666
                                

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

   $ 3,950      $ 11,680      $ 8,500      $ 22,570   
                                

Earnings per common share (dollars)

   $ 0.82      $ 2.24      $ 1.74      $ 4.27   

Earnings per common share - assuming dilution (dollars)

   $ 0.81      $ 2.22      $ 1.73      $ 4.24   

Special items included in earnings

        

Corporate and financing

        

Valdez litigation

   $ (140   $ (290   $ (140   $ (290

References in this discussion to total corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the income statement. Unless otherwise indicated, references to earnings, special items, Upstream, Downstream, Chemical and Corporate and Financing segment earnings, and earnings per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

REVIEW OF SECOND QUARTER 2009 RESULTS

Exxon Mobil Corporation reported second quarter 2009 earnings of $3,950 million, down 66 percent from the second quarter of 2008. Earnings per share of $0.81 were down 64 percent reflecting lower earnings and the benefit of the share purchase program. Earnings included a special charge of $140 million for interest related to the Valdez punitive damages award. Second quarter 2008 earnings included a charge of $290 million related to the Valdez punitive damages award.

Global economic conditions continue to impact the energy industry both in the volatility of commodity prices and reduced demand for products. In spite of these challenges, ExxonMobil achieved solid results. We continued our capital investment program at near record levels while returning over $16 billion to our shareholders during the first half of the year.

The Corporation distributed a total of $7.0 billion to shareholders in the second quarter of 2009, through dividends and share purchases to reduce shares outstanding.

 

 

Earnings in the first half of 2009 of $8,500 million decreased $14,070 million, or 62 percent, from 2008 reflecting lower crude oil and natural gas realizations. Earnings per share decreased 59 percent to $1.73, reflecting lower earnings and the continued reduction in the number of shares outstanding.

 

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Table of Contents
     Second Quarter    First Six Months
     2009    2008    2009    2008
     (millions of dollars)

Upstream earnings

           

United States

   $ 813    $ 2,034    $ 1,173    $ 3,665

Non-U.S.

     2,999      7,978      6,142      15,132
                           

Total

   $ 3,812    $ 10,012    $ 7,315    $ 18,797
                           

Upstream earnings were $3,812 million in the second quarter of 2009, down $6,200 million from 2008. Lower crude oil and natural gas realizations accounted for the decline, reducing earnings approximately $6.1 billion.

On an oil-equivalent basis, production decreased about 3 percent from the second quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was down about 2.5 percent.

Liquids production totaled 2,347 kbd (thousands of barrels per day), down 44 kbd from the second quarter of 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was flat, as field decline was offset by increased production from projects in the United States and west Africa, and lower maintenance activity.

Second quarter natural gas production was 8,013 mcfd (millions of cubic feet per day), down 476 mcfd from 2008. New production volumes from project additions in Qatar, the United States, and the North Sea were more than offset by field decline and lower European demand.

Earnings from U.S. Upstream operations were $813 million, $1,221 million lower than the second quarter of 2008. Non-U.S. Upstream earnings were $2,999 million, down $4,979 million from last year.

 

 

Upstream earnings in the first six months of 2009 were $7,315 million, down $11,482 million from 2008. Lower crude oil and natural gas realizations decreased earnings approximately $11.0 billion while higher operating costs reduced earnings about $600 million.

On an oil-equivalent basis, production decreased less than 2 percent from last year. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was flat.

Liquids production of 2,411 kbd decreased 19 kbd from 2008. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up over 1 percent, as new volumes from project additions in west Africa and the United States, and lower maintenance activity, were partly offset by field decline.

Natural gas production of 9,094 mcfd decreased 265 mcfd from 2008. Higher volumes from Qatar and North Sea projects were more than offset by field decline and lower European demand.

Earnings from U.S. Upstream operations for 2009 were $1,173 million, a decrease of $2,492 million. Earnings outside the U.S. were $6,142 million, $8,990 million lower than last year.

 

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Table of Contents
     Second Quarter    First Six Months
     2009     2008    2009    2008
     (millions of dollars)

Downstream earnings

          

United States

   $ (15   $ 293    $ 337    $ 691

Non-U.S.

     527        1,265      1,308      2,033
                            

Total

   $ 512      $ 1,558    $ 1,645    $ 2,724
                            

Downstream earnings of $512 million in the second quarter of 2009 were down $1,046 million from 2008. Lower margins drove the decline, reducing earnings approximately $1.0 billion, as weaker refining margins more than offset stronger marketing margins. Petroleum product sales of 6,487 kbd were 288 kbd lower than last year’s second quarter, mainly reflecting asset sales and lower demand.

The U.S. Downstream recorded a loss of $15 million, down $308 million from the second quarter of 2008. Non-U.S. Downstream earnings of $527 million were $738 million lower than last year.

 

 

Downstream earnings in the first six months of 2009 of $1,645 million were $1,079 million lower than 2008. Weaker margins reduced earnings approximately $300 million. Lower volumes and refinery optimization associated with weaker demand reduced earnings about $500 million. Higher operating costs mainly associated with planned work activity also reduced earnings. Petroleum product sales of 6,461 kbd decreased from 6,798 kbd in 2008, mainly reflecting asset sales and lower demand.

U.S. Downstream earnings were $337 million, down $354 million. Non-U.S. Downstream earnings were $1,308 million, $725 million lower than last year.

 

     Second Quarter    First Six Months
     2009    2008    2009    2008
     (millions of dollars)

Chemical earnings

           

United States

   $ 79    $ 102    $ 162    $ 386

Non-U.S.

     288      585      555      1,329
                           

Total

   $ 367    $ 687    $ 717    $ 1,715
                           

Chemical earnings of $367 million in the second quarter of 2009 were $320 million lower than 2008. Lower volumes reduced earnings approximately $150 million, while weaker margins decreased earnings by about $100 million. Hurricane repair costs and unfavorable foreign exchange effects also reduced earnings. Second quarter prime product sales of 6,267 kt (thousands of metric tons) were 451 kt lower than the prior year primarily due to weaker demand.

 

 

Chemical earnings in the first six months of 2009 of $717 million decreased $998 million from 2008. Lower volumes reduced earnings by approximately $450 million while lower margins reduced earnings about $350 million. Unfavorable foreign exchange effects and hurricane costs also decreased earnings. Prime product sales of 11,794 kt were down 1,502 kt from 2008.

 

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Table of Contents
     Second Quarter     First Six Months  
     2009     2008     2009     2008  
     (millions of dollars)  

Corporate and financing earnings

   $ (741   $ (577   $ (1,177   $ (666

Special items included in earnings

        

Corporate and financing

        

Valdez litigation

   $ (140   $ (290   $ (140   $ (290

Corporate and financing expenses of $741 million in the second quarter of 2009 were up $164 million from 2008, due mainly to lower interest income partially offset by a lower Valdez litigation charge in the current period.

 

 

Corporate and financing expenses in the first six months of 2009 of $1,177 million were up $511 million from 2008, mainly due to lower interest income partially offset by a lower Valdez litigation charge in the current year.

LIQUIDITY AND CAPITAL RESOURCES

 

     Second Quarter    First Six Months  
     2009    2008    2009     2008  
     (millions of dollars)  

Net cash provided by/(used in)

          

Operating activities

         $ 11,107      $ 34,838   

Investing activities

           (9,713     (8,768

Financing activities

           (17,360     (22,204

Effect of exchange rate changes

           105        1,121   
                      

Increase/(decrease) in cash and cash equivalents

         $ (15,861   $ 4,987   
                      

Cash and cash equivalents (at end of period)

         $ 15,576      $ 38,968   

Cash flow from operations and asset sales

          

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

   $ 2,197    $ 13,418    $ 11,107      $ 34,838   

Sales of subsidiaries, investments and property, plant and equipment

     770      1,159      911        1,572   
                              

Cash flow from operations and asset sales

   $ 2,967    $ 14,577    $ 12,018      $ 36,410   
                              

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.

Total cash and cash equivalents of $15.6 billion at the end of the second quarter of 2009 compared to $39.0 billion at the end of the second quarter of 2008.

Cash provided by operating activities totaled $11,107 million for the first six months of 2009, $23,731 million lower than 2008. The major source of funds was net income including noncontrolling interests of $8,648 million, adjusted for the noncash provision of $5,797 million for depreciation and depletion, both of which decreased. In the 2008 period, the effects of higher prices on payments of accounts and other payables and collection of accounts receivable and the timing of income tax payments added to cash provided by operating activities. All other items net in 2009 included $3.9 billion of pension fund contributions, consistent with previous disclosures. For additional details, see the Condensed Consolidated Statement of Cash Flows on page 5.

Investing activities for the first six months of 2009 used net cash of $9,713 million compared to $8,768 million in the prior year. Spending for additions to property, plant and equipment increased $1,387 million to $10,238 million. Proceeds from asset divestments of $911 million in 2009 were lower. Sales of investments in marketable securities in the current period, compared to purchases in 2008, are reflected in the change in other investing activities.

 

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Cash flow from operations and asset sales in the second quarter of 2009 of $3.0 billion, including asset sales of $0.8 billion, decreased $11.6 billion from the comparable 2008 period. Cash flow from operations and asset sales in the first six months of 2009 of $12.0 billion, including asset sales of $0.9 billion, decreased $24.4 billion from 2008.

Net cash used in financing activities of $17,360 million in the first six months of 2009 was $4,844 million lower reflecting a lower level of purchases of shares of ExxonMobil stock.

During the second quarter of 2009, Exxon Mobil Corporation purchased 75 million shares of its common stock for the treasury at a gross cost of $5.2 billion. These purchases included $5.0 billion to reduce the number of shares outstanding, with the balance used to offset shares issued in conjunction with the company’s benefit plans and programs. Shares outstanding were reduced from 4,880 million at the end of the first quarter to 4,806 million at the end of the second quarter. Share purchases to reduce shares outstanding are currently anticipated to equal $4.0 billion in the third quarter of 2009.

Gross share purchases through the first half of 2009 were $13.1 billion, reducing shares outstanding by 3.4 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 to shareholders a total of $7.0 billion in the second quarter of 2009 and $16.0 billion in the first half of 2009 through dividends and share purchases to reduce shares outstanding.

Total debt of $9.3 billion at June 30, 2009, compared to $9.4 billion at year-end 2008. The Corporation’s debt to total capital ratio was 7.7 percent at the end of the second quarter of 2009 compared to 7.4 percent at year-end 2008.

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

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

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

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

 

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Table of Contents

TAXES

 

     Second Quarter     First Six Months  
     2009     2008     2009     2008  
     (millions of dollars)  

Income taxes

   $ 3,571      $ 10,526      $ 6,719      $ 19,828   

Effective income tax rate

     50     49     47     48

Sales-based taxes

     6,216        9,538        12,122        17,970   

All other taxes and duties

     9,124        12,297        17,713        23,904   
                                

Total

   $ 18,911      $ 32,361      $ 36,554      $ 61,702   
                                

Income, sales-based and all other taxes and duties for the second quarter of 2009 of $18,911 million were lower than 2008. In the second quarter of 2009 income tax expense declined to $3,571 million reflecting the lower level of earnings and the effective income tax rate was 50 percent, compared to $10,526 million and 49 percent, respectively, in the prior year period. Sales-based taxes and all other taxes and duties decreased in 2009 reflecting lower prices and foreign exchange effects.

 

 

Income, sales-based and all other taxes and duties for the first six months of 2009 of $36,554 million were lower than 2008. In the first six months of 2009 income tax expense declined to $6,719 million reflecting the lower level of earnings and the effective income tax rate was 47 percent, compared to $19,828 million and 48 percent, respectively, in the prior year period. Sales-based taxes and all other taxes and duties decreased in 2009 reflecting lower prices and foreign exchange effects.

CAPITAL AND EXPLORATION EXPENDITURES

 

     Second Quarter    First Six Months
     2009    2008    2009    2008
     (millions of dollars)

Upstream (including exploration expenses)

   $ 4,905    $ 5,257    $ 9,271    $ 9,352

Downstream

     817      904      1,463      1,731

Chemical

     830      797      1,588      1,363

Other

     10      12      14      15
                           

Total

   $ 6,562    $ 6,970    $ 12,336    $ 12,461
                           

ExxonMobil continued its robust capital investment program in the second quarter. Capital and exploration project spending was $6.6 billion in the second quarter of 2009, down 6 percent from last year, mainly due to the strengthening of the U.S. dollar.

 

 

In line with our longer term plan, capital and exploration expenditures for the first half of 2009 were $12.3 billion, down 1 percent versus 2008 due to the stronger U.S. dollar. Capital and exploration expenditures for full year 2008 were $26.1 billion and are expected to range from $25 billion to $30 billion for the next several years. Actual spending could vary depending on the progress of individual projects.

FORWARD-LOOKING STATEMENTS

Statements in this report relating to future plans, projections, events or conditions are forward-looking statements. Actual results, including project plans, costs, timing, and capacities; capital and exploration expenditures; and share purchase levels, could differ materially due to factors including: changes in long-term oil or gas prices or other market or economic conditions affecting the oil and gas industry; completion of repair projects as planned; unforeseen technical difficulties; political events or disturbances; reservoir performance; the outcome of commercial negotiations; wars and acts of terrorism or sabotage; changes in technical or operating conditions; and other factors discussed under the heading “Factors Affecting Future Results” on our website and in Item 1A of ExxonMobil’s 2008 Form 10-K. We assume no duty to update these statements as of any future date.

 

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Table of Contents
Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the six months ended June 30, 2009, does not differ materially from that discussed under Item 7A of the registrant’s Annual Report on Form 10-K for 2008.

 

Item 4. Controls and Procedures

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s chief executive officer, principal financial officer and principal accounting officer have evaluated the Corporation’s disclosure controls and procedures as of June 30, 2009. Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

 

Item 1. Legal Proceedings

Regarding a previously reported matter, between the dates of June 16 and June 23, 2009, single-count criminal informations alleging violations of 16 U.S.C. Sections 703 and 707 of the Migratory Bird Treaty Act were filed by the U.S. government against Exxon Mobil Corporation in the Federal Districts of Colorado, Kansas and Wyoming and in the Western District of Oklahoma and the Northern District of Texas. These informations are being consolidated for resolution in the Federal District of Colorado. A plea agreement intended to resolve the consolidated matter has been signed by the U.S. government and the company. The plea agreement requires that Exxon Mobil Corporation plead guilty to the individual informations alleging misdemeanor violations of 16 U.S.C. Section 703 and 707(a) of the Migratory Bird Treaty Act and agree to the following: (1) a term of probation of three years; (2) fund and implement an environmental compliance plan for the three year probationary period; (3) pay an aggregate fine of $400,000 directed to the North American Wetlands Conservation Fund ($80,000 per jurisdiction for wetlands conservation work in each jurisdiction); (4) pay a special assessment of $250; and (5) pay $200,000 in community service payments ($40,000 in Colorado to the Pauline S. Schnegas Foundation and $40,000 for each remaining jurisdiction to the National Fish and Wildlife Foundation). A hearing before the court to review the plea agreement is scheduled for August 12, 2009.

The Massachusetts Department of Environmental Protection (MADEP) and State Attorney General (AG) have alleged that between 2000 and 2008 the Everett and Springfield terminals in Massachusetts violated a number of their air permit requirements and provisions of Clean Air Act regulations. By letter dated April 17, 2009, the AG itemized the violations and made a settlement demand upon the company that would require specific physical changes at both facilities to reduce air emissions as well as a payment of a civil penalty of $8.1 million. ExxonMobil has responded to the demand letter, outlining certain arguments and defenses and a meeting is scheduled for September 2009 to discuss the issues. The MADEP and AG have stated that if the parties are unsuccessful in reaching a settlement that they will file a civil complaint with the Massachusetts Superior Court seeking injunctive relief and a monetary penalty.

Regarding a previously reported matter, on December 23, 2008, the office of the United States Attorney for the District of Massachusetts filed a misdemeanor criminal information alleging that ExxonMobil Pipeline Company violated 33 U.S.C. Sections 1319(c) (1) and 1321(b) (3) of the Clean Water Act resulting from a spill that occurred on or about January 9-10, 2006, on the Island End River near the Corporation’s Everett Terminal facility in Everett, Massachusetts. A plea agreement intended to resolve the case was also filed with the Federal District Court on that same date. On April 30, 2009, the court accepted and approved a revised plea agreement as the basis for the resolution of the matter. The revised plea agreement requires that ExxonMobil Pipeline Company plead guilty to a misdemeanor violation of 33 U.S.C. Section 1319(c)(1) of the Clean Water Act and agree to the following: (1) a term of probation of three years; (2) fund and implement an environmental compliance plan for the three year probationary period; (3) pay a fine of $359,018 and a special assessment of $125; (4) pay $4,640,982 in community service payments to the North American Wetlands Conservation Act Fund and $1,000,000 to the Massachusetts Environmental Trust; and (5) pay $179,509 for spill-related cleanup costs.

 

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Table of Contents

The Louisiana Department of Environmental Quality (LDEQ) issued a Consolidated Compliance Order & Notice of Potential Penalty to the Corporation’s Baton Rouge Resins Finishing Plant (BRFP) on October 16, 2008, relating to alleged exceedences of air permit limits for certain volatile organic compounds and hazardous air pollutants. BRFP has self-disclosed these emission results to the LDEQ and proposed a number of specific corrective action steps. Although LDEQ will not propose a specific penalty until BRFP completes its corrective action steps, it is believed at this time that the potential penalty could exceed $100,000. Completion of all action steps is required by October 2010.

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

 

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

Issuer Purchase of Equity Securities for Quarter Ended June 30, 2009

 

 

Period

   Total Number
Of Shares
Purchased
   Average
Price Paid
per Share
   Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs
   Maximum Number
Of Shares that May
Yet Be Purchased
Under the Plans or
Programs
 

April, 2009

   25,761,081    $ 67.65    25,761,081   

May, 2009

   24,107,846    $ 69.26    24,107,846   

June, 2009

   25,624,412    $ 71.55    25,624,412   
               

Total

   75,493,339    $ 69.49    75,493,339    (See Note 1
                   

 

Note 1 —   On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding. The announcement did not specify an amount or expiration date. The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases. In its most recent earnings release dated July 30, 2009, the Corporation stated that share purchases to reduce shares outstanding are anticipated to equal $4.0 billion in the third quarter of 2009. Purchases may be made in both the open market and through negotiated transactions, and purchases may be increased, decreased or discontinued at any time without prior notice.

 

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

At the annual meeting of shareholders on May 27, 2009, the following proposals were voted upon. Percentages are based on the total of the shares voted For and either Withheld or voted Against, as appropriate.

 

Concerning Election of Directors

       
   Votes      Votes

Nominees

   Cast For          Withheld

Michael J. Boskin

   3,951,659,061    97.7   93,449,181

Larry R. Faulkner

   3,985,296,125    98.5   59,812,117

Kenneth C. Frazier

   3,985,850,409    98.5   59,257,833

William W. George

   3,957,521,571    97.8   87,586,671

Reatha Clark King

   3,950,087,701    97.7   95,020,541

Marilyn Carlson Nelson

   3,855,775,072    95.3   189,333,170

Samuel J. Palmisano

   3,852,649,642    95.2   192,458,600

Steven S Reinemund

   3,992,214,101    98.7   52,894,141

Rex W. Tillerson

   3,950,153,462    97.7   94,954,780

Edward E. Whitacre, Jr.

   3,957,608,323    97.8   87,499,919

Concerning Ratification of Independent Auditors

       

Votes Cast For:

   3,965,445,393    98.5  

Votes Cast Against:

   60,490,317    1.5  

Abstentions:

   19,172,532     

Broker Non-Votes:

   0     

Concerning Cumulative Voting

       

Votes Cast For:

   900,649,054    28.6  

Votes Cast Against:

   2,245,257,131    71.4  

Abstentions:

   35,085,402     

Broker Non-Votes:

   864,116,655     

Concerning Special Shareholder Meetings

       

Votes Cast For:

   1,281,883,860    40.8  

Votes Cast Against:

   1,863,349,449    59.2  

Abstentions:

   35,758,278     

Broker Non-Votes:

   864,116,655     

Concerning Incorporate in North Dakota

       

Votes Cast For:

   151,516,352    4.8  

Votes Cast Against:

   2,980,823,489    95.2  

Abstentions:

   48,651,746     

Broker Non-Votes:

   864,116,655     

Concerning Board Chairman and CEO

       

Votes Cast For:

   916,466,207    29.5  

Votes Cast Against:

   2,190,632,259    70.5  

Abstentions:

   73,893,121     

Broker Non-Votes:

   864,116,655     

Concerning Shareholder Advisory Vote on Executive Compensation

  

 

Votes Cast For:

   1,276,583,944    41.4  

Votes Cast Against:

   1,805,434,160    58.6  

Abstentions:

   98,973,483     

Broker Non-Votes:

   864,116,655     

Concerning Executive Compensation Report

  

 

Votes Cast For:

   361,158,523    11.6  

Votes Cast Against:

   2,740,567,725    88.4  

Abstentions:

   79,265,339     

Broker Non-Votes:

   864,116,655     

 

-24-


Table of Contents

Concerning Corporate Sponsorships Report

       

Votes Cast For:

   215,789,475    7.9  

Votes Cast Against:

   2,525,796,026    92.1  

Abstentions:

   439,406,086     

Broker Non-Votes:

   864,116,655     

Concerning Amendment of EEO Policy

       

Votes Cast For:

   1,186,969,116    39.3  

Votes Cast Against:

   1,830,853,358    60.7  

Abstentions:

   163,169,113     

Broker Non-Votes:

   864,116,655     

Concerning Greenhouse Gas Emissions Goals

       

Votes Cast For:

   797,275,710    29.0  

Votes Cast Against:

   1,951,943,111    71.0  

Abstentions:

   431,772,766     

Broker Non-Votes:

   864,116,655     

Concerning Climate Change and Technology Report

       

Votes Cast For:

   274,740,079    10.0  

Votes Cast Against:

   2,478,475,827    90.0  

Abstentions:

   427,775,681     

Broker Non-Votes:

   864,116,655     

Concerning Renewable Energy Policy

       

Votes Cast For:

   743,884,565    27.3  

Votes Cast Against:

   1,984,340,842    72.7  

Abstentions:

   452,766,180     

Broker Non-Votes:

   864,116,655     

For additional information, see the registrant’s definitive proxy statement dated April 13, 2009, “Item 1 - Election of Directors” (beginning on page 13) and the items beginning with “Item 2 - Ratification of Independent Auditors”, on page 50, through “Item 13 - Renewable Energy Policy”, ending on page 68.

 

Item 6. Exhibits

 

Exhibit  

Description

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.
101   Interactive Data Files.

 

-25-


Table of Contents

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 5, 2009      
    By:  

/s/ Patrick T. Mulva

    Name:   Patrick T. Mulva
    Title:   Vice President, Controller and Principal
Accounting Officer

 

-26-


Table of Contents

INDEX TO EXHIBITS

 

Exhibit

 

Description

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.
101   Interactive Data Files.

 

-27-

EX-31.1 2 dex311.htm CERTIFICATION (PURSUANT TO SECURITIES EXCHANGE ACT RULE 13A-14(A)) BY CEO Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by CEO

EXHIBIT 31.1

Certification by Rex W. Tillerson

Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Rex W. Tillerson, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Exxon Mobil Corporation;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2009

 

/s/ Rex W. Tillerson
Rex W. Tillerson
Chief Executive Officer
EX-31.2 3 dex312.htm CERTIFICATION (PURSUANT TO SECURITIES EXCHANGE ACT RULE 13A-14(A)) BY PFO Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by PFO

EXHIBIT 31.2

Certification by Donald D. Humphreys

Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Donald D. Humphreys, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Exxon Mobil Corporation;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2009

 

/s/ Donald D. Humphreys
Donald D. Humphreys
Senior Vice President and Treasurer
(Principal Financial Officer)
EX-31.3 4 dex313.htm CERTIFICATION (PURSUANT TO SECURITIES EXCHANGE ACT RULE 13A-14(A)) BY PAO Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by PAO

EXHIBIT 31.3

Certification by Patrick T. Mulva

Pursuant to Securities Exchange Act Rule 13a-14(a)

I, Patrick T. Mulva, certify that:

 

  1. I have reviewed this quarterly report on Form 10-Q of Exxon Mobil Corporation;

 

  2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

 

  3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

 

  4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

 

  (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

 

  (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

 

  (c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

 

  (d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

 

  5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

 

  (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

 

  (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: August 5, 2009

 

/s/ Patrick T. Mulva
Patrick T. Mulva
Vice President and Controller
(Principal Accounting Officer)
EX-32.1 5 dex321.htm SECTION 1350 CERTIFICATION (PURSUANT TO SARBANES-OXLEY SECTION 906) BY CEO Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by CEO

EXHIBIT 32.1

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Rex W. Tillerson, the chief executive officer of Exxon Mobil Corporation (the “Company”), hereby certifies that, to his knowledge:

(i) the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 5, 2009

 

/s/ Rex W. Tillerson
Rex W. Tillerson
Chief Executive Officer

A signed original of this written statement required by Section 906 has been provided to Exxon Mobil Corporation and will be retained by Exxon Mobil Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.2 6 dex322.htm SECTION 1350 CERTIFICATION (PURSUANT TO SARBANES-OXLEY SECTION 906) BY PFO Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by PFO

EXHIBIT 32.2

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Donald D. Humphreys, the principal financial officer of Exxon Mobil Corporation (the “Company”), hereby certifies that, to his knowledge:

(i) the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 5, 2009

 

/s/ Donald D. Humphreys
Donald D. Humphreys
Senior Vice President and Treasurer
(Principal Financial Officer)

A signed original of this written statement required by Section 906 has been provided to Exxon Mobil Corporation and will be retained by Exxon Mobil Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

EX-32.3 7 dex323.htm SECTION 1350 CERTIFICATION (PURSUANT TO SARBANES-OXLEY SECTION 906) BY PAO Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by PAO

EXHIBIT 32.3

Certification of Periodic Financial Report

Pursuant to 18 U.S.C. Section 1350

For purposes of 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, the undersigned, Patrick T. Mulva, the principal accounting officer of Exxon Mobil Corporation (the “Company”), hereby certifies that, to his knowledge:

(i) the Quarterly Report on Form 10-Q of the Company for the quarter ended June 30, 2009, as filed with the Securities and Exchange Commission on the date hereof (the “Report”) fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(ii) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

Date: August 5, 2009

 

/s/ Patrick T. Mulva
Patrick T. Mulva
Vice President and Controller
(Principal Accounting Officer)

A signed original of this written statement required by Section 906 has been provided to Exxon Mobil Corporation and will be retained by Exxon Mobil Corporation and furnished to the Securities and Exchange Commission or its staff upon request.

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Included in this amount were guarantees by consolidated affiliates of $6,599 million, for ExxonMobil&#8217;s share of obligations of certain equity companies. These guarantees are not reasonably likely to have a material effect on the Corporation&#8217;s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.</font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"> <font face="ARIAL" size="2">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&#8217;s operations or financial condition. The Corporation&#8217;s outstanding unconditional purchase obligations at June&#160;30, 2009, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.</font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"> <font face="ARIAL" size="2">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.</font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"> <font face="ARIAL" size="2">In accordance with a nationalization decree issued by Venezuela&#8217;s president in February 2007, by May&#160;1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project. The decree also required conversion of the Cerro Negro Project into a &#8220;mixed enterprise&#8221; and an increase in PdVSA&#8217;s or one of its affiliate&#8217;s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would &#8220;directly assume the activities&#8221; carried out by the joint venture. ExxonMobil refused to accede to the terms proffered by the government, and on June&#160;27, 2007, the government expropriated ExxonMobil&#8217;s 41.67 percent interest in the Cerro Negro Project.</font></p> <p style="MARGIN-TOP: 6px; MARGIN-BOTTOM: 0px; MARGIN-LEFT: 4%"> <font face="ARIAL" size="2">On September&#160;6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes. An affiliate of ExxonMobil has also filed an arbitration under the rules of the International Chamber of Commerce against PdVSA and a PdVSA affiliate for breach of their contractual obligations under certain Cerro Negro Project agreements. At this time, the net impact of this matter on the Corporation&#8217;s consolidated financial results cannot be reasonably estimated. However, the Corporation does not expect the resolution to have a material effect upon the Corporation&#8217;s operations or financial condition. 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No authoritative reference available. false 1 Included in the three months and six months ended June 30, 2008, is a $62 million gain from sale of non-U.S. investment, net of related $143 million of foreign exchange loss. 2 Sales-based taxes included in sales and other operating revenue for the three months ended June 30, 2009, and 2008, were $6,216 million and $9,538 million, respectively, and for the six months ended June 30, 2009, and 2008, were $12,122 million and $17,970 million, respectively. false 4 23 false Millions UnKnown Hundreds false true XML 19 R2.xml IDEA: Statement Of Financial Position Classified 1.0.0.3 false Statement Of Financial Position Classified (USD $) In Millions false 1 $ false false Shares Standard http://www.xbrl.org/2003/instance shares 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDperShareItemType Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 false 2 $ false false Shares Standard http://www.xbrl.org/2003/instance shares 0 USD Standard http://www.xbrl.org/2003/iso4217 USD iso4217 0 USDperShareItemType Divide http://www.xbrl.org/2003/iso4217 USD iso4217 http://www.xbrl.org/2003/instance shares 0 6 4 us-gaap_AssetsCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 7 5 us-gaap_CashAndCashEquivalentsAtCarryingValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 true true 15576000000 15576 false false 2 true true 31437000000 31437 false false No definition available. 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No authoritative reference available. false 13 5 us-gaap_OtherAssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 4464000000 4464 false false 2 false true 3911000000 3911 false false No definition available. No authoritative reference available. false 14 5 us-gaap_AssetsCurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 59496000000 59496 false false 2 false true 72266000000 72266 false false No definition available. No authoritative reference available. true 15 4 us-gaap_LongTermInvestmentsAndReceivablesNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 30358000000 30358 false false 2 false true 28556000000 28556 false false No definition available. No authoritative reference available. false 16 4 us-gaap_PropertyPlantAndEquipmentNet us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 127861000000 127861 false false 2 false true 121346000000 121346 false false No definition available. No authoritative reference available. false 17 4 us-gaap_OtherAssetsNoncurrent us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 6946000000 6946 false false 2 false true 5884000000 5884 false false No definition available. No authoritative reference available. false 18 4 us-gaap_Assets us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true 224661000000 224661 false false 2 false true 228052000000 228052 false false No definition available. No authoritative reference available. true 20 4 us-gaap_LiabilitiesCurrentAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 21 5 us-gaap_DebtCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2157000000 2157 false false 2 false true 2400000000 2400 false false No definition available. No authoritative reference available. false 22 5 us-gaap_AccountsPayableAndAccruedLiabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 41895000000 41895 false false 2 false true 36643000000 36643 false false No definition available. No authoritative reference available. false 23 5 us-gaap_AccruedIncomeTaxesPayable us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 7562000000 7562 false false 2 false true 10057000000 10057 false false No definition available. No authoritative reference available. false 24 5 us-gaap_LiabilitiesCurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 51614000000 51614 false false 2 false true 49100000000 49100 false false No definition available. No authoritative reference available. true 25 4 us-gaap_LongTermDebtAndCapitalLeaseObligations us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 7117000000 7117 false false 2 false true 7025000000 7025 false false No definition available. No authoritative reference available. false 26 4 us-gaap_PensionAndOtherPostretirementDefinedBenefitPlansNoncurrentLiabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 18287000000 18287 false false 2 false true 20729000000 20729 false false No definition available. No authoritative reference available. false 27 4 us-gaap_DeferredTaxLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 21880000000 21880 false false 2 false true 19726000000 19726 false false No definition available. No authoritative reference available. false 28 4 us-gaap_OtherLiabilitiesNoncurrent us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 14610000000 14610 false false 2 false true 13949000000 13949 false false No definition available. No authoritative reference available. false 29 4 us-gaap_Liabilities us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 113508000000 113508 false false 2 false true 110529000000 110529 false false No definition available. No authoritative reference available. true 30 3 us-gaap_CommitmentsAndContingencies us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 0 0 false false 2 false true 0 0 false false No definition available. No authoritative reference available. false 31 3 xom_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAbstract xom false na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 32 4 us-gaap_CommonStockValue us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 5260000000 5260 false false 2 false true 5314000000 5314 false false No definition available. No authoritative reference available. false 33 4 us-gaap_RetainedEarningsAccumulatedDeficit us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 270160000000 270160 false false 2 false true 265680000000 265680 false false No definition available. No authoritative reference available. false 34 4 us-gaap_AccumulatedOtherComprehensiveIncomeLossNetOfTaxAbstract us-gaap true na duration string No definition available. false false false false false true false false false 1 false false 0 0 false false 2 false false 0 0 false false No definition available. false 35 5 us-gaap_AccumulatedOtherComprehensiveIncomeLossForeignCurrencyTranslationAdjustmentNetOfTax us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 2676000000 2676 false false 2 false true 1146000000 1146 false false No definition available. No authoritative reference available. false 36 5 us-gaap_AccumulatedOtherComprehensiveIncomeLossDefinedBenefitPensionAndOtherPostretirementPlansNetOfTax us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true -10925000000 -10925 false false 2 false true -11077000000 -11077 false false No definition available. No authoritative reference available. false 37 4 us-gaap_TreasuryStockValue us-gaap true debit instant monetary No definition available. false false false false false false false false false 1 false true -160579000000 -160579 false false 2 false true -148098000000 -148098 false false No definition available. No authoritative reference available. false 38 4 us-gaap_StockholdersEquity us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 106592000000 106592 false false 2 false true 112965000000 112965 false false No definition available. No authoritative reference available. true 39 4 us-gaap_MinorityInterest us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 false true 4561000000 4561 false false 2 false true 4558000000 4558 false false No definition available. No authoritative reference available. false 40 4 xom_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterest xom false credit instant monetary No definition available. false false false false false false false false false 1 false true 111153000000 111153 false false 2 false true 117523000000 117523 false false No definition available. No authoritative reference available. true 41 3 us-gaap_LiabilitiesAndStockholdersEquity us-gaap true credit instant monetary No definition available. false false false false false false false false false 1 true true 224661000000 224661 false false 2 true true 228052000000 228052 false false No definition available. No authoritative reference available. true false 2 35 false Millions UnKnown UnKnown false true XML 20 FilingSummary.xml IDEA: XBRL DOCUMENT 1.0.0.3 true Sheet 11 - Statement - Statement Of Income Alternative Statement Of Income Alternative R1.xml false Sheet 12 - Statement - Statement Of Financial Position Classified Statement Of Financial Position Classified R2.xml false Sheet 13 - Statement - Statement Of Financial Position Classified (Parenthetical) Statement Of Financial Position Classified (Parenthetical) R3.xml false Sheet 14 - Statement - Statement Of Cash Flows Indirect Statement Of Cash Flows Indirect R4.xml false Notes 15 - Disclosure - Notes to Financial Statements Notes to Financial Statements R5.xml false Sheet 16 - Disclosure - Document Information Document Information R6.xml false Sheet 17 - Disclosure - Entity Information Entity Information R7.xml false Book All Reports All Reports 1 8 0 0 3 99 true false eol_PE3810----0910-Q0003_STD_Inst_20081231_0 34 eol_PE3810----0910-Q0003_STD_Inst_20080630_0 2 eol_PE3810----0910-Q0003_STD_p3m_20090630_0 21 eol_PE3810----0910-Q0003_STD_Inst_20090630_0 35 eol_PE3810----0910-Q0003_STD_p3m_20080630_0 21 eol_PE3810----0910-Q0003_STD_Inst_20071231_0 1 eol_PE3810----0910-Q0003_STD_p6m_20080630_0 42 eol_PE3810----0910-Q0003_STD_p6m_20090630_0 63 true true EXCEL 21 Financial_Report.xls IDEA: XBRL DOCUMENT begin 644 Financial_Report.xls MT,\1X*&Q&N$`````````````````````/@`#`/[_"0`&```````````````! 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-----END PRIVACY-ENHANCED MESSAGE-----