10-QPeriod: Q2 FY2009

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2009

Filed August 5, 2009For Securities:XOM

Summary

Exxon Mobil Corporation (XOM) reported a significant decrease in net income for the second quarter and first half of 2009 compared to the same periods in 2008. This decline was primarily driven by lower crude oil and natural gas realizations, reflecting the challenging global economic environment and its impact on commodity prices and demand. Despite the lower earnings, the company maintained a strong focus on capital investment, allocating significant resources to projects across its Upstream, Downstream, and Chemical segments. ExxonMobil also continued to return substantial capital to shareholders through dividends and share repurchases, underscoring its commitment to shareholder value even amidst economic headwinds. The company's financial position remained robust, with a low debt-to-capital ratio, providing a solid foundation for navigating the current market conditions.

Financial Highlights

39 data points
Beta

Net Income

$3.95B

EPS (Diluted)

$0.81

Total Assets

$224.66B

Cash & Equivalents

$15.58B

Free Cash Flow

-$3.37B

Financial Statements
Beta
SG&A Expenses$3.52B
Operating Expenses$66.94B
Interest Expense$343.00M
Net Income$3.95B
EPS (Basic)$0.82
EPS (Diluted)$0.81
Shares Outstanding (Basic)4.85B
Shares Outstanding (Diluted)4.87B

Key Highlights

  • 1Net income for the second quarter of 2009 was $3.95 billion, a substantial decrease from $11.68 billion in the second quarter of 2008.
  • 2For the first six months of 2009, net income was $8.50 billion, down from $22.57 billion in the same period of 2008.
  • 3Earnings per share reflected this trend, with Q2 2009 at $0.81 (diluted) versus $2.22 in Q2 2008, and H1 2009 at $1.73 versus $4.24 in H1 2008.
  • 4Upstream earnings saw a significant decline due to lower crude oil and natural gas realizations, with Q2 2009 earnings at $3.81 billion compared to $10.01 billion in Q2 2008.
  • 5Downstream and Chemical segments also experienced reduced earnings, impacted by lower margins, volumes, and specific market conditions.
  • 6The company returned approximately $16 billion to shareholders in the first half of 2009 through dividends and share purchases, with a continued share repurchase program in place.
  • 7Capital and exploration expenditures remained robust, totaling $6.56 billion in Q2 2009 and $12.34 billion for the first half of 2009, indicating ongoing investment in future growth.

Frequently Asked Questions

The primary driver for the significant decrease in earnings was lower crude oil and natural gas realizations. This reflects the challenging global economic environment that impacted commodity prices and overall demand for energy products.

Despite the downturn in earnings, ExxonMobil continued to invest heavily in its capital programs, with capital and exploration expenditures of $12.3 billion in the first half of 2009. The company also demonstrated a strong commitment to shareholder returns, distributing approximately $16 billion to shareholders through dividends and share repurchases in the same period.

ExxonMobil is involved in ongoing litigation, including the historical Exxon Valdez case, which resulted in a $140 million after-tax charge in Q2 2009 for post-judgment interest. The company also faces various environmental regulatory matters and legal proceedings, which it is defending. Management does not currently believe the ultimate outcome of these matters will have a materially adverse effect on the Corporation's operations or financial condition.

The report indicates that global economic conditions continue to impact the energy industry. While ExxonMobil achieved solid results despite these challenges, earnings were significantly lower year-over-year. The company's continued capital investment and shareholder return programs suggest a long-term strategic focus, but near-term performance is heavily influenced by volatile commodity prices and demand.