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2009 Summary
Annual Report

Table of contents

  • Page 1
    2009 Summary Annual Report

  • Page 2
    ...marketing of petroleum products such as motor fuels and lubricants. Projections, targets, expectations, estimates, and business plans in this report are forward-looking statements. Actual future results, including demand growth and energy mix; capacity growth; the impact of new technologies; capital...

  • Page 3
    ... of 20 turbines 1991 First commercial lithium battery 1992 2003 U.S. First ultra"Energy deepwater Star" well depth program greater introduced than 3000 meters 2005 U.S. mandate for ethanol blending into gasoline 2009 U.S. natural gas resources now cover about 100 years at current demand due...

  • Page 4
    ... of energy is directly linked to the well-being and prosperity of the world's people. Around the world, more people are seeking access to energy and the economic and social progress it enables. Population and economic growth - particularly in developing countries - are expected to push global demand...

  • Page 5
    ... new Upstream projects, increase production of higher-value refined products, and grow our Chemical business. Another important measure of our long-term commitment to excellence is our industry-leading safety record. In 2009, we achieved best-ever lost time incident rates for our combined employee...

  • Page 6
    ... gas to markets worldwide. We have also worked with vehicle manufacturers to improve fuel economy through advanced plastics, new tire-lining technology, and synthetic lubricants. In 2009, we launched a multimillion dollar research initiative with Synthetic Genomics Inc. to explore the development...

  • Page 7
    ......Energy - in all its forms - is critical to economic growth, development, and social welfare. The world's need for reliable and affordable energy supplies is growing. Global฀Energy฀Demand (quadrillion BTUs) 700 600 500 400 300 Gas 200 100 Oil As we survey the global energy landscape to 2030...

  • Page 8
    ... of dollars in new energy investment, a long-term focus, and constant technological innovation. We plan to invest more than $125 billion over the next five years developing future energy supplies and investing in communities in which we operate, while at the same time reducing the environmental...

  • Page 9
    ... the year, we started up eight new projects. Many use advanced LNG technologies, helping to create a global gas market that links the world's largest reserves with consumers who need them. The size and scale of our LNG production plants and ships enable clean-burning gas to be supplied at lower cost...

  • Page 10
    7 We participate in all of Qatar's producing LNG trains. In 2009, our joint ventures in Qatar started up the world's three largest LNG trains making a significant contribution towards meeting the world's growing energy demand.

  • Page 11
    ... to fuel the world's industries and economies, but extending supply is also important - making efficiency one of the most powerful fuels of all. Efficiency - doing the same or more, with less energy - saves on fuel costs, avoids emissions, and curbs growth in energy demand. Through 2030, the energy...

  • Page 12
    9 Over the past several years, efficiency at our refining and chemical operations has improved at a rate two to three times faster than the industry average. The Rotterdam Aromatics Plant uses technology to re-use heat and improve energy efficiency.

  • Page 13
    ...own energy efficiency, advancing proven emissions-reducing technology, and developing ...gas emissions and improve energy efficiency in our operations. ExxonMobil is a leader in cogeneration technology, which provides significant environmental benefits because it produces fewer greenhouse gas...

  • Page 14
    11 At our refinery in Beaumont, Texas, one cogeneration plant - our largest worldwide - can produce about 500 megawatts of electricity, which not only powers refining operations but also supplements the local power grid.

  • Page 15
    ... from company-owned and operated marine vessels, sustaining an impressive performance trend. Investing for Future Growth ExxonMobil's proven business model of disciplined investments, operational excellence, industry-leading returns, and superior cash flow served our shareholders well in 2009. We...

  • Page 16
    ... biology - to keep energy flowing and develop new technologies that spur innovation. Over the years, ExxonMobil researchers have developed a number of innovations that make finding and producing oil and natural gas easier. For example, in Russia, we recently used new technology to drill a well one...

  • Page 17
    ... dividends to ExxonMobil shareholders Common stock purchases (gross) Research and development costs Cash and cash equivalents at year end (4) Total assets at year end Total debt at year end ExxonMobil share of equity at year end Average capital employed (3) Share price at year end (dollars) Market...

  • Page 18
    ... year of dividend per share increases. • Total shareholder distributions of $26 billion. • Industry-leading return on average capital employed of 16 percent. • Start-up of eight major Upstream projects. • Total net production of liquids and natural gas available for sale of 3.9 million oil...

  • Page 19
    ...) OECD 80 Growth฀in฀Energy฀Demand฀by฀Region (quadrillion BTUs) 2005 300 Non-OECD 2030 60 200 40 100 20 1980 2005 2030 OECD = Organization for Economic Co-operation and Development North America Latin America Europe Russia/ Caspian Asia Pacific Africa Middle East IS฀IN SAR...

  • Page 20
    ... diversity of economic supplies of energy remain important. In addition, sensible and stable policy environments will continue to Tracey฀Gunnlaugsson฀•฀Investor฀Relations be essential to stimulate Exxon฀Mobil฀Corporation,฀Irving,฀TX office:฀972-444-1151฀•฀cell:972-849-6202...

  • Page 21
    ... to integrate and execute these strategies consistently delivers superior long-term value. In 2009, ExxonMobil and our joint venture partner, Qatar Petroleum, started up three 7.8-million-tonnes-per-year liquefied natural gas (LNG) trains, the largest in service anywhere in the world, and the Al...

  • Page 22
    ...to identify and deliver integrated solutions that maximize resource value. "2006"฀ 45.3฀ "2007"฀ 41.7฀ Discipline฀and฀Consistency฀•฀We explore for, develop, 53.6฀ produce, and market oil and gas using"2008"฀ globally deployed "2009"฀ 23.4฀ of management systems that ensure...

  • Page 23
    .... Under SEC rules, proved reserves are determined using historical market prices. Resource฀Base฀by฀Type (percent, oil-equivalent barrels) The new-build semisubmersible drilling rig West Aquarius began an extensive deepwater drilling program offshore Indonesia and the Philippines during 2009...

  • Page 24
    ...-end execution planning to minimize cost and schedule risks during project execution phases. The combination of global processes, proprietary technology, and project management expertise results in industry-leading project execution performance. Successful worldwide application of best practices to...

  • Page 25
    ...Investor฀Relations ExxonMobil's Piceance Basin leases averaged 108 million tracey.c.gunnlaugsson@exxonmob Exxon฀Mobil฀Corporation,฀Irving,฀TX office:฀972-444-1151฀•฀cell:972-849-6202 Eric฀Whetstone฀•฀Whetstone฀Des cubic feet of gas per day in 2009. The ultimate resource...

  • Page 26
    ... operations commenced in 2009. The Odoptu field, located offshore Far East Russia, is being developed using extended-reach drilling (ERD) wells drilled from shore approximately 6 miles horizontally to the reservoirs. Gorgon฀Jansz฀•฀The 15-million-tonnes-per-year Gorgon Jansz LNG project...

  • Page 27
    ... captured and shared globally. In 2009, a new drilling program commenced at the Beryl field, located in the U.K. sector of the North Sea, which will increase reserves recovery and extend field life. Through this disciplined focus on operational integrity and by leveraging global best practices to...

  • Page 28
    ...holder in the promising Horn River Basin shale gas play in Canada. We are working with TransCanada to advance a gas pipeline from the Alaskan North Slope to North American markets. In 2010, the Golden Pass liquefied natural gas (LNG) terminal is scheduled to open on the U.S. Gulf Coast and will have...

  • Page 29
    ... and Supply, Fuels Marketing, and Lubricants and Specialties. Our consistent business strategies are vital to achieving a sustained, competitive advantage: •฀฀ Maintain฀best-in-class฀operations,฀in฀all฀respects •฀฀ Provide฀quality,฀valued฀products฀and฀services฀ to...

  • Page 30
    ...27 2009 Results and Highlights Best-ever lost-time incident rate for combined employee and contractor workforce. Earnings were $1.8 billion, reflecting a weak industry Downstream฀Return฀on฀Average฀Capital฀Employed ExxonMobil (percent) 40 35 30 25 20 15 10 5 Integrated฀Oil฀Competitor...

  • Page 31
    ... and operating costs. We use an integrated approach when developing new business opportunities, such as our refining, petrochemicals, and fuels marketing ventures in Fujian Province, China, and when supporting Upstream ventures such as Syncrude in Alberta, Canada. Maintaining Capital Discipline...

  • Page 32
    ...R T 29 business cycle, reflected by our divestments of selected refineries and logistics assets over the past decade. Our capital investment program includes projects to produce higher-value products and chemical feedstocks, process lower-cost raw materials, lower operating costs, meet new product...

  • Page 33
    ... Exxon-, Mobil-, and Esso -branded retail sites are present in nearly 50 countries and provide fuel to millions of vehicles every day. Integration and Operating Efficiencies We continue to leverage integration with Refining and Supply across our four Fuels Marketing business channels. Integrated...

  • Page 34
    ... in the high-value and high-growth segments of the lubricants market. Integration and Operating Efficiencies Technology leadership, supply reliability, and customer trust underpin the commercial success of our brands. Our globally recognized synthetic oil brands continue to grow their presence in...

  • Page 35
    ... on operations integrity, they remain the foundation for our business, and ultimately, our performance. ExxonMobil Chemical's oxo alcohol unit in Singapore helps supply the growing demand in Asia Pacific, which is expected to represent more than 60 percent of global petrochemical growth through...

  • Page 36
    ... growth of higher-value premium products. "2005"฀ 28.0฀ 33.2฀ 34.0฀ 20.4฀ 13.9฀ 2.3 3.4 4.4 6.8 16 Downstream deliver benefits through the physical integration of sites, joint feedstock and facilities planning, global competency networks, and sharing of services and best practices...

  • Page 37
    ......#1 Plasticizers/Oxo Alcohols...#1 Synthetics ...#1 Oriented Polypropylene Films ...#1 Adhesive Polymers ...#1 Specialty Elastomers ...#1 Petroleum Additives ...#2 Technology is critical to our strategies as it helps capture value from advantaged feeds, drives lower-cost manufacturing processes...

  • Page 38
    ... expect more than 60 percent of global petrochemical demand growth will occur in Asia, with over one-third in China alone. We plan not only to support this growth but also to ensure the projects add shareholder value. In 2009, we started up a fully integrated, world-scale facility in Fujian Province...

  • Page 39
    ... of the Public Company Accounting Oversight Board (United States), the Consolidated Balance Sheets of Exxon Mobil Corporation and its subsidiaries as of December 31, 2009, and 2008, and the related Consolidated Statements of Income, Comprehensive Income, Changes in Equity, and Cash Flows for each...

  • Page 40
    ... 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 determined under the last-in, first-out method - LIFO). Inventories of materials and supplies are valued at cost or less. The Corporation makes...

  • Page 41
    ...the Summary Statement of Cash Flows (for 2007 to 2009), shown on pages 38 through 40, corresponds to the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in the financial statements of ExxonMobil's 2010 Proxy Statement. For...

  • Page 42
    ... benefits reserves adjustment Common stock held in treasury ExxonMobil share of equity Noncontrolling interests Total equity Total liabilities and equity (1) For more information, please refer to Appendix A, Note 15 of ExxonMobil's 2010 Proxy Statement. The information in the Summary Statement...

  • Page 43
    ... 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 cash Increase/(decrease) in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year...

  • Page 44
    ... share growth (annual percent) Number of common shares outstanding (millions) Average Average - assuming dilution Year end Cash dividends paid on common stock (millions of dollars) Cash dividends paid to earnings (percent) Cash dividends paid to cash flow (2) (percent) Total return to shareholders...

  • Page 45
    ... 2009 2008 2007 2006 2005 Liquids, Including Oil Sands and Non-Consolidated Reserves (millions of barrels at year end) Net proved developed and undeveloped reserves United States Canada/South America Europe Africa Asia Pacific/Middle East Russia/Caspian Total worldwide, excluding price/cost effects...

  • Page 46
    ... gas production available for sale United States Non-U.S. Total worldwide Oil-equivalent production (3) Refinery throughput United States Non-U.S. Total worldwide Petroleum product sales (4) United States Non-U.S. Total worldwide Gasoline, naphthas Heating oils, kerosene, diesel Aviation fuels...

  • Page 47
    ... after-tax cost of financing, divided by total corporate average capital employed. The Corporation has consistently applied its ROCE definition for many years and views it as the best measure of historical capital productivity in our capital-intensive, long-term industry, both to evaluate management...

  • Page 48
    ...price/cost effects" mean the effect of using SEC historical prices and costs. For years prior to 2009, another key difference was the treatment of oil sands reserves extracted in mining operations, as well as reserves attributable to equity companies. In this report, oil sands reserves and our share...

  • Page 49
    ... Upstream Research Company R.M. Kruger ...President, ExxonMobil Production Company (1) T.R. Walters ...President, ExxonMobil Gas & Power Marketing Company (1) Downstream H.R. Cramer ...President, ExxonMobil Fuels Marketing Company (1) S.J. Glass, Jr...President, ExxonMobil Refining & Supply Company...

  • Page 50
    ... D.D. Humphreys ...Senior Vice President and Treasurer (1) L.J. Cavanaugh ...Vice President - Human Resources President (1) K.P. Cohen ...Vice President - Public and Government Affairs W.M. Colton ...Vice President - Corporate Strategic Planning (1) H.R. Cramer ...Vice President (1) T.M. Fariello...

  • Page 51
    ... during normal business hours. Registered shareholders can access information about their ExxonMobil stock accounts via the Internet at computershare.com/exxonmobil. Stock Purchase and Dividend Reinvestment Plan Shareholders may eliminate annual report mailings by marking their proxy card, or by...

  • Page 52
    ... Headquarters Exxon Mobil Corporation 5959 Las Colinas Boulevard Irving, TX 75039-2298 Additional copies may be obtained by writing 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...

  • Page 53
    Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com Annual Report 002CS1A241