10-KPeriod: FY2008

EXXON MOBIL CORP Annual Report, Year Ended Dec 31, 2008

Filed February 27, 2009For Securities:XOM

Summary

Exxon Mobil Corporation's 2008 10-K filing reveals a strong financial performance, with net income reaching a record $45.2 billion, an increase from $40.6 billion in 2007. This growth was driven primarily by significantly higher crude oil and natural gas prices, which boosted Upstream segment earnings by $8.9 billion. Despite this strong performance, the company faced challenges in its Downstream segment, with earnings decreasing by $1.4 billion due to lower margins and higher operating costs, partially offset by improved refinery operations. The company maintained a robust capital expenditure program, investing $26.1 billion in 2008, primarily in Upstream projects, with a projected annual spend of $25-30 billion for the coming years. ExxonMobil's financial strength remains a key advantage, supported by its AAA/Aaa credit ratings, enabling it to navigate the capital-intensive nature of the industry and long lead times for projects. The report also highlights ongoing efforts in operational efficiency and technological advancement across all segments.

Financial Highlights

40 data points
Beta

Net Income

$45.22B

EPS (Diluted)

$8.66

Total Assets

$228.05B

Cash & Equivalents

$31.44B

Free Cash Flow

$40.41B

Financial Statements
Beta
R&D Expenses$847.00M
SG&A Expenses$15.87B
Operating Expenses$393.96B
Interest Expense$673.00M
Net Income$45.22B
EPS (Basic)$8.70
EPS (Diluted)$8.66

Key Highlights

  • 1Record net income of $45.2 billion in 2008, up from $40.6 billion in 2007, driven by higher commodity prices.
  • 2Upstream segment earnings significantly increased by $8.9 billion due to record high crude oil and natural gas realizations.
  • 3Downstream segment earnings declined by $1.4 billion due to lower margins and increased operating costs.
  • 4The company maintained a strong financial position with AAA/Aaa credit ratings, underscoring its financial resilience.
  • 5Capital and exploration expenditures totaled $26.1 billion in 2008, with a continued focus on Upstream projects.
  • 6Proved reserves for consolidated subsidiaries remained substantial, with approximately 7.6 billion barrels of oil equivalent.
  • 7The company repurchased approximately 434 million shares of its common stock for $35.7 billion in 2008.

Frequently Asked Questions

The primary driver of ExxonMobil's strong financial performance in 2008 was the significant increase in crude oil and natural gas prices, which substantially boosted earnings in the Upstream segment. Record-high realizations in this segment contributed significantly to the company's record net income of $45.2 billion.

The Upstream segment saw substantial earnings growth due to high commodity prices. The Downstream segment experienced a decline in earnings due to lower margins and higher operating costs, although improved refinery operations provided some offset. The Chemical segment's earnings decreased due to lower margins and volumes, reflecting the global economic slowdown.

ExxonMobil maintained a robust capital expenditure program in 2008, totaling $26.1 billion, with the majority directed towards Upstream projects. The company anticipates annual expenditures to range between $25 billion and $30 billion for the next several years, reflecting its commitment to investing in long-term growth opportunities across its business segments.

ExxonMobil emphasizes maintaining a strong financial position, evidenced by its AAA/Aaa credit ratings, as a key competitive advantage. The company's size, geographic diversity, and integrated business model help mitigate enterprise-wide risks from changes in interest rates, currency rates, and commodity prices. It uses derivatives sparingly and does not engage in speculative activities.