10-KPeriod: FY2007

EXXON MOBIL CORP Annual Report, Year Ended Dec 31, 2007

Filed February 28, 2008For Securities:XOM

Summary

ExxonMobil Corporation's 2007 Form 10-K filing highlights a record-breaking year for net income, reaching $40.61 billion, underscoring strong performance across all business segments. The company reported significant upstream earnings driven by favorable oil and gas realizations, with overall oil-equivalent production remaining robust despite some volume impacts. Downstream operations also saw improved earnings, bolstered by worldwide refining and marketing operations, while the chemical segment benefited from solid global demand. The company maintained a strong financial position, evidenced by its sustained AAA/Aaa credit rating, and actively managed its capital through substantial expenditures on projects and share repurchases, signaling confidence in its long-term growth strategy.

Financial Highlights

23 data points
Beta

Net Income

$40.61B

EPS (Diluted)

$7.26

Cash & Equivalents

$33.98B

Free Cash Flow

$36.62B

Financial Statements
Beta
SG&A Expenses$14.89B
Operating Expenses$333.07B
Interest Expense$400.00M
Net Income$40.61B
EPS (Basic)$7.31
EPS (Diluted)$7.26

Key Highlights

  • 1Record Net Income: Achieved a record $40.61 billion in net income for 2007, reflecting strong performance across all business segments.
  • 2Upstream Segment Strength: Reported robust earnings in the Upstream segment ($26.5 billion) driven by higher liquids realizations, with oil-equivalent production largely stable year-over-year.
  • 3Downstream and Chemical Performance: Downstream earnings increased to $9.6 billion, supported by improved refining operations and asset sales, while Chemical earnings rose to $4.6 billion due to solid global demand.
  • 4Strong Financial Position: Maintained a "triple-A" credit rating for its long-term debt, indicating robust financial health and access to capital markets.
  • 5Active Capital Management: Invested $20.9 billion in capital and exploration expenditures in 2007 and repurchased $31.8 billion of its own stock, demonstrating commitment to growth and shareholder returns.
  • 6Venezuela Expropriation: Noted the expropriation of its interest in the Cerro Negro Heavy Oil Project in Venezuela, with arbitration proceedings underway, though not expected to materially impact overall financial condition.
  • 7Significant Reserves: Reported substantial proved reserves, totaling 13.2 billion oil-equivalent barrels of crude oil, natural gas liquids, and natural gas, with a focus on long-term development.

Frequently Asked Questions

ExxonMobil achieved record net income of $40.61 billion in 2007, an increase from $39.50 billion in 2006. This strong performance was driven by high earnings across all major segments: Upstream, Downstream, and Chemical.

The Upstream segment reported earnings of $26.5 billion in 2007. Higher liquids realizations were a key driver, though partially offset by increased operating expenses and unfavorable tax effects. Oil-equivalent production was stable, with increases from new projects in West Africa and Russia being offset by mature field declines and entitlement effects.

ExxonMobil projects a 40% increase in primary energy demand by 2030, driven by population and economic growth, with oil and gas expected to remain the predominant energy sources. The company's strategy focuses on disciplined investment in new energy supplies, leveraging its resource base, financial strength, and technological capabilities, particularly in areas like LNG and non-conventional production.

The company noted the expropriation of its assets in Venezuela, for which arbitration is ongoing, but expects no material impact. It also detailed ongoing litigation related to the Exxon Valdez spill and other environmental matters, with management confident that ultimate outcomes will not have a materially adverse effect on operations or financial condition.