10-KPeriod: FY2012

EXXON MOBIL CORP Annual Report, Year Ended Dec 31, 2012

Filed February 27, 2013For Securities:XOM

Summary

Exxon Mobil Corporation's (XOM) 2012 Form 10-K highlights a strong financial performance, characterized by robust revenues and significant net income, driven primarily by its Upstream segment. The company demonstrated operational resilience and a commitment to shareholder returns, as evidenced by consistent capital expenditures and dividends. Despite market volatility and global economic uncertainties, ExxonMobil maintained its strategic focus on long-term growth through disciplined investment in exploration, development, and technological advancements across its Upstream, Downstream, and Chemical businesses. Key financial indicators suggest a stable and financially sound enterprise. The company's extensive asset base, diverse geographic operations, and integrated business model provide a competitive advantage, enabling it to navigate the complexities of the energy sector. Management's discussion emphasizes a forward-looking strategy focused on meeting growing global energy demand while managing operational efficiencies and environmental responsibilities.

Financial Highlights

48 data points
Beta

Revenue

$451.51B

Net Income

$44.88B

9.9% Net Margin

EPS (Diluted)

$9.70

Total Assets

$333.80B

Cash & Equivalents

$9.58B

Free Cash Flow

$21.90B

Financial Statements
Beta
Revenue$451.51B
R&D Expenses$1.04B
SG&A Expenses$13.88B
Operating Expenses$401.95B
Interest Expense$327.00M
Net Income$44.88B
EPS (Basic)$9.70
EPS (Diluted)$9.70
Shares Outstanding (Basic)4.63B
Shares Outstanding (Diluted)4.63B

Key Highlights

  • 1ExxonMobil reported strong financial results for 2012, with net income of $44.88 billion, an increase from $41.06 billion in 2011.
  • 2The Upstream segment was the primary driver of earnings, contributing $29.89 billion to net income, reflecting strong performance in both U.S. and non-U.S. operations.
  • 3Total capital and exploration expenditures were $39.8 billion, with a significant portion allocated to Upstream projects, underscoring the company's commitment to growth and resource development.
  • 4The company returned significant value to shareholders through dividends totaling $10.1 billion ($2.18 per share) and share repurchases of $21.1 billion.
  • 5ExxonMobil maintained substantial proved reserves, with total liquids proved reserves at 12.8 billion barrels and natural gas reserves at 74.1 trillion cubic feet equivalent, indicating a strong resource base for future production.
  • 6The company reported robust cash flow from operations of $56.2 billion, demonstrating its ability to generate substantial cash to fund operations, investments, and shareholder returns.

Frequently Asked Questions

In 2012, ExxonMobil achieved significant financial success, reporting net income of $44.88 billion, up from $41.06 billion in 2011. The company generated $56.2 billion in cash flow from operations and returned $31.2 billion to shareholders through dividends ($10.1 billion) and share repurchases ($21.1 billion). Capital and exploration expenditures totaled $39.8 billion, with a strong focus on Upstream projects.

The Upstream segment was the dominant contributor to earnings, generating $29.89 billion in income, driven by strong performance in both U.S. and non-U.S. operations. The Downstream segment saw a significant increase in earnings to $13.19 billion, largely due to improved refining margins and gains from divestments. The Chemical segment reported earnings of $3.89 billion, a slight decrease from the previous year.

ExxonMobil's strategy centers on disciplined investment in high-quality opportunities across its Upstream, Downstream, and Chemical businesses. The company focuses on identifying and capturing the best exploration and development prospects, leveraging technological advancements, managing costs effectively, and maximizing the profitability of its existing assets. A significant portion of its capital expenditures is dedicated to developing its extensive proved reserves and pursuing new resource opportunities globally.

ExxonMobil identifies a range of risks inherent in the oil, gas, and petrochemical businesses, including supply and demand fluctuations, government and political factors, and operational challenges. The company's risk management approach includes maintaining financial strength, geographic diversity, and integrating its business segments. In terms of environmental matters, ExxonMobil reported approximately $5.5 billion in worldwide environmental expenditures for preventative and remediation steps in 2012, focusing on monitoring and reducing emissions and managing asset retirement obligations.