Summary
Exxon Mobil Corporation (XOM) announced the completion of the sale of its interests in the natural gas transport business in northern Germany. This divestiture, completed by XOM affiliates on July 1, 2008, specifically targets the transportation infrastructure and does not impact the company's ongoing operations related to exploration, production, and natural gas sales and storage within Germany. Investors should note that this transaction is expected to generate a positive after-tax earnings impact of approximately $1.6 billion. This gain will be recognized and reported in ExxonMobil's third-quarter 2008 financial results, providing a notable boost to the company's earnings during that period.
Key Highlights
- 1ExxonMobil affiliates completed the sale of their northern Germany natural gas transport business interests on July 1, 2008.
- 2The sale exclusively concerns the natural gas transport infrastructure.
- 3The transaction does not impact ExxonMobil's exploration, production, and natural gas sale and storage activities in Germany.
- 4The divestiture is expected to result in a positive after-tax earnings impact of approximately $1.6 billion.
- 5This earnings gain will be recognized in the third quarter of 2008.
- 6The filing is an 8-K reporting an 'Other Event'.
Frequently Asked Questions
ExxonMobil affiliates sold their interests in the natural gas transport business in northern Germany. This refers to the infrastructure used for transporting natural gas, not the exploration, production, or sale of the gas itself.
No, the company explicitly stated that this transaction does not affect its exploration, production, and natural gas sale and storage activities conducted by its affiliates in Germany.
The transaction is expected to contribute approximately $1.6 billion in positive after-tax earnings to ExxonMobil.
The positive after-tax earnings of approximately $1.6 billion will be reported in ExxonMobil's third-quarter 2008 financial results.