10-QPeriod: Q2 FY2010

EXXON MOBIL CORP Quarterly Report for Q2 Ended Jun 30, 2010

Filed August 4, 2010For Securities:XOM

Summary

ExxonMobil Corporation (XOM) reported strong financial results for the second quarter and first half of 2010, demonstrating a significant recovery from the previous year. Net income attributable to ExxonMobil surged by 91% year-over-year in the second quarter to $7.56 billion, or $1.61 per share, and by 63% for the first half to $13.86 billion, or $2.94 per share. This performance was driven by higher crude oil realizations, improved downstream refining and marketing margins, and robust chemical segment results. The company also successfully completed the significant acquisition of XTO Energy Inc. on June 25, 2010, a move aimed at expanding its unconventional oil and gas resources. While the integration of XTO is expected to contribute to future growth, the financial impact in the reported period was de minimis. ExxonMobil continued its commitment to shareholder returns, distributing over $3 billion to shareholders through dividends and share repurchases in the second quarter. Overall, the results indicate a healthy recovery and strategic growth through the XTO acquisition, positioning ExxonMobil favorably in the energy market despite ongoing market risks and environmental considerations, such as those highlighted by events in the Gulf of Mexico.

Financial Highlights

42 data points
Beta

Net Income

$7.56B

EPS (Diluted)

$1.60

Total Assets

$291.07B

Cash & Equivalents

$13.25B

Free Cash Flow

$3.59B

Financial Statements
Beta
SG&A Expenses$3.61B
Operating Expenses$79.78B
Interest Expense$40.00M
Net Income$7.56B
EPS (Basic)$1.61
EPS (Diluted)$1.60
Shares Outstanding (Basic)4.72B
Shares Outstanding (Diluted)4.73B

Key Highlights

  • 1Net income attributable to ExxonMobil increased significantly by 91% to $7.56 billion for the second quarter of 2010 compared to the prior year.
  • 2Earnings per common share (diluted) rose to $1.60 in Q2 2010 from $0.81 in Q2 2009, indicating improved profitability on a per-share basis.
  • 3The company completed the acquisition of XTO Energy Inc. on June 25, 2010, expanding its portfolio in unconventional oil and gas.
  • 4Total revenues and other income showed a substantial increase, reaching $92.49 billion in Q2 2010, up from $74.46 billion in Q2 2009.
  • 5Net cash provided by operating activities more than doubled to $22.28 billion for the first six months of 2010, compared to $11.11 billion in the same period of 2009, highlighting strong cash generation.
  • 6Capital and exploration expenditures for the first six months of 2010 were $13.4 billion, an increase of 9% from the prior year, reflecting continued investment in future growth.
  • 7The company returned over $3 billion to shareholders in Q2 2010 through dividends and share repurchases.

Frequently Asked Questions

The primary drivers for the significant increase in profitability were higher crude oil and natural gas realizations (prices), improved refining and marketing margins in the downstream segment, and strong performance from the chemical business. These factors, combined with operational efficiency and a recovery in global demand compared to the prior year, contributed to the substantial earnings growth.

The acquisition of XTO Energy Inc., completed on June 25, 2010, is strategically significant as it greatly expands ExxonMobil's access to and expertise in unconventional oil and gas resources, such as shale gas and tight oil. This acquisition enhances the company's long-term growth prospects by complementing its existing asset base, technical capabilities, and global scale, particularly in the United States.

The financial impact of the XTO acquisition in the reported period (June 30, 2010) was minimal. The acquisition was an all-stock transaction, and its contribution to earnings and revenues for the period from its closing date (June 25, 2010) to June 30, 2010, was described as 'de minimis' or negligible. The full operational and financial integration benefits are expected to materialize in subsequent periods.

ExxonMobil demonstrates a strong commitment to returning capital to shareholders. In the second quarter of 2010, the company distributed over $3 billion through a combination of cash dividends and share repurchases. This approach aims to enhance shareholder value by providing consistent income and reducing the number of outstanding shares.