What were the main drivers of the significant decline in earnings?

The primary driver of the significant decline in earnings was the sharp decrease in commodity prices, particularly for crude oil and natural gas, which substantially impacted the Upstream segment's profitability. Lower volumes and margins in the Chemical segment also contributed to the overall earnings reduction.

How is ExxonMobil managing its capital allocation given the economic downturn?

ExxonMobil continues to prioritize returns to shareholders through substantial dividends and share repurchases, totaling $9.0 billion in Q1 2009. Simultaneously, the company is maintaining its long-term focus by increasing capital and exploration expenditures by 5% year-over-year to $5.8 billion, indicating a commitment to investing in future energy supply projects.

What is the company's outlook on its financial condition and liquidity?

Despite lower earnings and cash flow from operations compared to the prior year, ExxonMobil maintained a strong liquidity position with $25.0 billion in cash and cash equivalents at the end of the quarter. The company's debt-to-total capital ratio remained low at 7.6%. Internally generated funds are expected to cover the majority of financial requirements.

Are there any significant legal or environmental contingencies impacting the company?

The company disclosed ongoing legal proceedings, including an arbitration related to its expropriated interest in Venezuela's Cerro Negro Heavy Oil Project, although it does not expect a material effect on its operations or financial condition. Environmental matters include allegations related to air permits at its Wyoming facility and proposed settlements for air permit exceedances at its Texas refineries. The company stated it does not believe the ultimate outcome of any currently pending lawsuit will have a materially adverse effect on its operations or financial condition.

XOM 10-Q Quarterly Report Q1 FY2009 — Revenue, Net Income, EPS

Summary

Exxon Mobil Corporation (XOM) reported a significant decrease in earnings for the first quarter of 2009 compared to the same period in 2008. Net income attributable to ExxonMobil fell to $4.55 billion from $10.89 billion year-over-year, translating to earnings per share of $0.92 compared to $2.03 in the prior year. This decline was primarily driven by sharply lower commodity prices, which impacted upstream earnings significantly. Despite the challenging economic environment, the company demonstrated its commitment to shareholder returns by distributing $9.0 billion through dividends and share repurchases, including substantial share buybacks aimed at reducing outstanding shares.

Financial Highlights

21 data points

Beta

Net Income

$4.55B

EPS (Diluted)

$0.92

Cash & Equivalents

$24.97B

Free Cash Flow

$4.24B

Financial Statements

Beta

SG&A Expenses	$3.45B
Operating Expenses	$56.18B
Interest Expense	$107.00M
Net Income	$4.55B
EPS (Basic)	$0.92
EPS (Diluted)	$0.92

Key Highlights

1Net income attributable to ExxonMobil decreased by 58% to $4.55 billion in Q1 2009 from $10.89 billion in Q1 2008.
2Earnings per share (EPS) declined to $0.92 ($0.92 diluted) from $2.03 ($2.02 diluted) year-over-year.
3Upstream earnings saw a substantial drop of $5.28 billion, primarily due to lower crude oil and natural gas realizations.
4Downstream earnings remained relatively stable, down only $33 million to $1.13 billion.
5Chemical earnings decreased significantly by $678 million to $350 million due to lower volumes and margins.
6ExxonMobil returned $9.0 billion to shareholders through dividends and share repurchases in the first quarter of 2009.
7Capital expenditures for Q1 2009 increased by 5% year-over-year to $5.8 billion, demonstrating continued investment in projects.

EXXON MOBIL CORP Quarterly Report for Q1 Ended Mar 31, 2009

Summary

Financial Highlights

Key Highlights

Frequently Asked Questions