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2008 Summary
Annual Report

Table of contents

  • Page 1
    2008 Summary Annual Report

  • Page 2
    ... of new technologies; capital expenditures; project plans, dates, and capacities; production rates and resource recoveries; and efficiency gains and cost savings could differ materially due to, for example, changes in oil and gas prices or other market conditions affecting the oil and gas industry...

  • Page 3
    ...rising greenhouse gas emissions. Taking on the world's toughest energy challenges. Every day, employees at ExxonMobil are committed to the pursuit of operational excellence. We do this by delivering safe, reliable operations, improving energy efficiency, and maintaining strong business controls. We...

  • Page 4
    ... projects started up in 2008, including multiple new fields in Angola and developments in Nigeria and Malaysia. These projects not only deliver new supplies of crude oil and natural gas to the world, but also deliver significant value for resource owners and for our shareholders. The effective...

  • Page 5
    ..., but also to upholding the ethical standards we demonstrate every day in our business operations around the world. Our commitment to being a good corporate citizen is an extension of our ethical standards. Protecting our employees, supporting local communities, and safeguarding the environment are...

  • Page 6
    ..., storage, and ofï¬,oading (FPSO) vessels and 36 subsea wells, making it the largest subsea development we operate. Total oil and natural gas production in 2008 from our worldwide developments was over 3.9 million oil-equivalent barrels per day, helping to meet the world's growing demand for energy.

  • Page 7
    5

  • Page 8
    ...reducing the environmental impact of what we do. 1980 1990 2000 2010 2020 2030 Worldwide฀Energy฀Demand (millions of oil-equivalent barrels per day) 350 300 250 200 150 100 50 Annual฀Growth 2005-2030 Average 1.2% Note:฀Demand chart฀is฀in฀MBD ExxonMobil's scientists and engineers are...

  • Page 9
    ... reducing greenhouse gas emissions. We have developed technologies such as a new lithium-ion battery separator film for use in hybrid and electric vehicles, as well as advanced engine oils, lightweight plastics, and tire materials that are already helping improve vehicle fuel economy. ExxonMobil is...

  • Page 10
    ... achieve operational excellence has remained unwavering for decades. It takes vision and commitment to remain the world's leading producer of petroleum and petrochemical products. Mobil 1, the world's leading synthetic motor oil, helps to protect our customers' engines and improve fuel economy.

  • Page 11
    9

  • Page 12
    ...aid in the development and implementation of global best practices. Our company-wide Operations Integrity Management System (OIMS) provides a structured, global approach to managing risk throughout our worldwide operations. maximizing value. Maximizing resource and asset value To meet future energy...

  • Page 13
    ... in math and science-related careers. In 2008 we invested more than $70 million in education programs worldwide. Americas Russia / Caspian Africa Europe Resource฀Base฀by฀Geographic฀Regio n (percent, oil-equivalent barrels) Asia Pacific / Middle฀East promoting development. Our long...

  • Page 14
    12

  • Page 15
    ... of consumers every day. The Kawasaki Chemical Plant in Japan is part of ExxonMobil's global integrated manufacturing network. More than 90 percent of the chemical capacity we own and operate worldwide is integrated with our large refining facilities or natural gas processing plants, allowing us to...

  • Page 16
    ... gas liquids provide the largest share of energy supply today, due to their affordability, wide availability, and ease of transport. By 2030, global demand for liquids is expected to grow to approximately 108 million oil-equivalent barrels per day or close to 30 percent more than in 2005. Worldwide...

  • Page 17
    ... to energy savings of approximately 170 million oil-equivalent barrels per day by Oil Gas Coal Nuclear Biomass/฀OtherHydro/฀Geo Wind,฀Solar฀&฀BiofuelsGain EDITOR office:฀214-788-6336฀•฀cell:฀ Looking to 2030 and beyond, we realize that the scale of our global challenge is...

  • Page 18
    ... income to average shareholders' equity (percent) Debt to capital (percent) (6) Net debt to capital (percent) Ratio of current assets to current liabilities (times) Fixed charge coverage (times) (1) Sales and other operating revenue includes sales-based taxes of $34,508 million for 2008, $31,728...

  • Page 19
    ...proved oil and gas reserve additions of 1.5 billion oil-equivalent barrels, including asset sales and excluding year-end price/cost effects. Record฀Earnings฀in฀2008 Functional Earnings and Net Income Upstream Downstream Chemical Corporate and Financing Net Income Total฀Shareholder฀Return...

  • Page 20
    ..., and Gas & Power Marketing U P S T R E A M S T R AT E G I E S ExxonMobil's fundamental Upstream strategies guide our global exploration, development, production, and gas and power marketing activities: • Identify and pursue all attractive exploration opportunities • Invest in projects that...

  • Page 21
    ... and gas reserve additions of 1.5 billion oil-equivalent barrels, including 2004 2005 2006 2007 2008 asset sales and excluding year-end price/cost effects. (1) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis with ExxonMobil, based on public information. Resource...

  • Page 22
    ... oil-equivalent barrels at year-end 2008 would yield 15 years of production at current levels. 2008 Key Exploration Captures • Awarded and acquired interest in 76,000 acres in the Horn River Basin, Canada • Acquired equity in 184,300 acres in the Mako Trough in southeast Hungary Resource...

  • Page 23
    ... from Upstream projects. Resources฀in฀Projects฀by฀Geographic฀Region (percent, oil-equivalent barrels) Americas Russia/Caspian Asia Pacific Europe Middle฀East Africa As project scale and complexity increase across the industry, the challenge to bring new energy supplies to market on...

  • Page 24
    ... Adriatic฀LNG Thunder Terminal Horse Italy United States East฀Area NGL฀II Nigeria Kizomba฀C Mondo Angola Kizomba฀C Saxi/Batuque Angola ACG฀Phase฀3 Azerbaijan Qatargas฀II Train฀4 Qatar AKG RasGas Phase฀2 Train฀6 Qatar Qatar RasGas Train฀7 Qatar Qatargas฀II Train฀5 Qatar...

  • Page 25
    ...LNG trains owned by Ras Laffan Liquefied Natural Gas Company (3), a joint venture between Qatar Petroleum and ExxonMobil, are under construction with start-up planned in 2009. Train 6 is planned to supply the U.S. market, while Train 7 is expected to primarily supply Asia and other markets worldwide...

  • Page 26
    ... ExxonMobil leverages its global functional organization to manage oil and gas assets through rapid technology transfer and best practices application. Our organizational structure and consistent processes enable the company to define priorities on a worldwide basis and to deploy resources when and...

  • Page 27
    ... in the Horn River Basin in western Canada. Liquefied natural gas (LNG) imports will also play an increasingly important role. ExxonMobil is participating in building the Golden Pass LNG regasification terminal on the U.S. Gulf Coast, with a planned capacity of about 2 billion cubic feet per day...

  • Page 28
    ...a result, the Downstream is well-positioned to deliver long-term growth in shareholder value. ExxonMobil's refinery in Joliet, Illinois, is one of the newest in the United States and one of the most energy efficient. Our high-conversion refinery has a crude capacity of 240 thousand barrels per day.

  • Page 29
    ...10 5 125 crudes new to individual refineries every year. Started up four new projects to produce lower-sulfur diesel and announced plans to invest more than $1 billion in three refineries - Baytown, Texas; Baton Rouge, Louisiana; 2004 2005 2006 2007 2008 (1) Royal Dutch Shell, BP, and Chevron...

  • Page 30
    ...manufacturing plants, transportation systems, and distribution centers to provide fuels, lubricants, feedstocks, and other highvalue products to our customers around the world. Our global supply organization optimizes our network, including selection and placement of raw materials to our refineries...

  • Page 31
    ... and cogeneration investments reduce greenhouse gas emissions. We also capture cost savings through economies of scale. For example we use shared organizations to support operations at integrated refining and chemical sites, and continue to progress our global training initiative to improve overall...

  • Page 32
    ...฀•฀Our respected Exxon, Mobil, and Esso brands serve Exxon , Mobil, and Esso branded retail sites provide fuel to about 7 million vehicles every day. Industrial฀&฀Wholesale฀•฀As the second-largest sales channel customers at nearly 29,000 service stations worldwide. Total fuels...

  • Page 33
    ... capacity per refinery that is twice as large as the industry average. Our finished lubricants are manufactured through a network of 31 blend plants. Technology Leadership Our lube oil blend plant in Serviburnu, Turkey, supplies Mobil 1 motor oil to the Eastern European market. World-Class Brands...

  • Page 34
    ..., they remain the foundation for our business, and ultimately, our performance. The Fife Ethylene Plant in the United Kingdom is one of Europe's largest and most modern steam crackers. It was the first plant specifically designed to use natural gas liquids from the North Sea as feedstock to produce...

  • Page 35
    ... basis with ExxonMobil, based on public information. chain inventory de-stocking in the second half of the year challenged sales. Revenue was $55 billion. Chemical capital expenditures were $2.8 billion, as construction progressed on world-scale growth projects in Fujian, China, and Singapore. We...

  • Page 36
    ... Segment Earnings Specialties (billions of dollars) 5.0 4.0 3.0 2.0 1.0 Commodities Paraxylene ...#1 Olefins ...#2 Polyethylene ...#2 Polypropylene ...#5 Specialties Butyl Polymers ...#1 Fluids...#1 Plasticizers/Oxo Alcohols...#1 Synthetics ...#1 Oriented Polypropylene Films ...#1 Adhesive Polymers...

  • Page 37
    ... 2008 Baytown, Texas Notre-Dame-de-Gravenchon, France Pensacola, Florida Singapore Gumi, South Korea Singapore Bromobutyl Rubber Adhesive Polymers Compounded Polymers Hydrocarbon Fluids Specialty Films Oxo Alcohols Specialty Elastomers 60% increase 18,000 1 line 130,000 2 lines 125,000 300,000 2009...

  • Page 38
    ... Appendix A to the Proxy Statement for the 2009 annual meeting of shareholders of the Corporation. As discussed in Note 18 to the consolidated financial statements, the Corporation changed its method of accounting for uncertainty in income taxes in 2007. In our opinion, the information set forth in...

  • Page 39
    .... Revenues associated with sales of crude oil, natural gas, petroleum and chemical products are recognized when the products are delivered and title passes to the customer. Inventories of crude oil, products, and merchandise are carried at the lower of current market value or cost (generally...

  • Page 40
    ... includes sales-based taxes of $34,508 million for 2008, $31,728 million for 2007, and $30,381 million for 2006. (2) Other income for 2008 includes a $62 million gain from the sale of a non-U.S. investment and a related $143 million foreign exchange loss. The information in the Summary Statement of...

  • Page 41
    ... foreign exchange translation adjustment Postretirement benefits reserves adjustment Common stock held in treasury Total shareholders' equity Total liabilities and shareholders' equity (1) For more information, please refer to Appendix A, Note 15 of ExxonMobil's 2009 Proxy Statement. The information...

  • Page 42
    ... to ExxonMobil shareholders Cash dividends to minority interests Changes in minority interests and sales/(purchases) of affiliate stock Tax benefits related to stock-based awards Common stock acquired Common stock sold Net cash used in financing activities Effects of exchange rate changes on...

  • Page 43
    ... of common shares outstanding (millions) Average Average - assuming dilution Year end Cash dividends paid on common stock (millions of dollars) Cash dividends paid to net income (percent) Cash dividends paid to cash flow (1) (percent) Total return to shareholders (annual percent) Market quotations...

  • Page 44
    ... 44 through 45 for the definition of liquids and natural gas proved reserves. (2) Excluding year-end effects associated with using December 31 prices and costs. (3) The term "sales" includes the impact of expropriation of proved reserves in Venezuela (462 million oil-equivalent barrels) in 2007.

  • Page 45
    ... Oil-equivalent production (2) Refinery throughput United States Non-U.S. Total worldwide Petroleum product sales (3) United States Non-U.S. Purchases/sales with same counterparty included above Total worldwide Gasoline, naphthas Heating oils, kerosene, diesel Aviation fuels Heavy fuels Specialty...

  • Page 46
    ... and shareholders' equity. Both of these views include ExxonMobil's share of amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive measure of capital employed. (millions of dollars) 2008 2007 2006 Business Uses: Asset and Liability...

  • Page 47
    ... the Form 10-K and proxy statement to reflect the impacts on proved reserves of utilizing December 31 liquids and natural gas prices ("year-end price/cost effects"). On this basis, year-end proved reserves, including year-end price/cost effects totaled 23.0 billion oil-equivalent barrels in 2008, 22...

  • Page 48
    ..., ExxonMobil Gas & Power Marketing Company (1) Downstream H.R. Cramer ...President, ExxonMobil Fuels Marketing Company (1) A.J. Kelly ...President, ExxonMobil Lubricants & Petroleum Specialties Company (1) R.V. Pisarczyk ...President, ExxonMobil Research and Engineering Company S.J. Glass, Jr...

  • Page 49
    ... Cohen ...Vice President - Public Affairs H.R. Cramer ...Vice President (1) S.J. Glass, Jr...Vice President (1) A.J. Kelly ...Vice President (1) R.M. Kruger ...Vice President (1) * As of year-end 2008 (1) Required to file reports under Section 16 of the Securities Exchange Act of 1934. Samuel...

  • Page 50
    .... Stock Purchase and Dividend Reinvestment Plan Registered shareholders can receive the following documents online, instead of by mail, by contacting ExxonMobil Shareholder Services: • Summary Annual Report • Proxy Statement • Tax Documents • Account Statements Computershare Trust Company...

  • Page 51
    ... or phoning: Phone: 972-444-1000 Fax: 972-444-1505 Shareholder Relations Exxon Mobil Corporation P.O. Box 140369 Irving, TX 75014-0369 Market Information The New York Stock Exchange is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded. Annual Meeting...

  • Page 52
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