Exxon 2010 Annual Report Download

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2010 Summary Annual Report

Table of contents

  • Page 1
    2010 Summary Annual Report

  • Page 2
    ... and energy mix; capacity growth; the impact of new technologies; capital expenditures; project plans, dates, costs, and capacities; production rates and resource recoveries; efficiency gains; cost savings; and product sales could differ materially due to, for example, changes in oil and gas prices...

  • Page 3
    ...cleaner-burning fuels, particularly natural gas. We know it will require unprecedented levels of capital investment. To meet demand through 2030 and beyond, ExxonMobil continues to expand and diversify our resource base, promote efficiency, and develop new energy technologies. Our focus on integrity...

  • Page 4
    ... major projects in 2010, including new oil production from the Odoptu field which is the latest development phase of the Sakhalin-1 project in Russia, the initial commissioning and gas send-out from the Golden Pass liquefied natural gas (LNG) terminal in Texas, and the start-up of new LNG deliveries...

  • Page 5
    ... economic conditions. Our capital and exploration expenditures in 2010 were a record $32.2 billion. We will continue to invest at substantial levels - more than $165 billion over the next five years - deploying new technologies and delivering new projects to efficiently supply energy to the world...

  • Page 6
    ... in global demand will require unprecedented levels of investment, advanced technologies, and access to resources. Energy efficiency will be a key contributor to meeting the world's needs for reliable and affordable energy. Gains in efficiency will curb global energy demand by one-third in 2030 and...

  • Page 7
    ... by about Oil and natural gas will meet about Bringing Energy to the World Meeting growing energy demand requires significant investment in both conventional and unconventional sources, like our Kearl oil sands project in Canada (above). Employees and contractors work closely together, applying...

  • Page 8
    ... ExxonMobil employees and contractors apply our Operations Integrity Management System (OIMS) in all aspects of our business, like at the Baton Rouge Refinery (above). OIMS is the cornerstone of our commitment to operational excellence, enabling us to achieve industry-leading safety performance...

  • Page 9
    ... invested $1.6 billion Industry-Leading฀Safety in activities that improve energy efficiency and reduce Lost-Time Injuries and Illnesses greenhouse gas (GHG) emissions. We have also invested ExxonMobil฀Contractors (1) ExxonMobil Employees (1) more than $5 billion in projects to reduce natural gas...

  • Page 10
    ... of dollars) ExxonMobil has invested over $125 billion in the last five years to advance new technologies, pursue attractive Upstream projects, increase production of lower-sulfur fuels in the Downstream, and strategically grow our Chemical business. 2006 2007 2008 2009 2010 IS฀IN SAR฀and...

  • Page 11
    9 Investment of more than ExxonMobil's commitment to $1 billion annually in research, development, and technology applications Excellence Begins with People A research technician (above) at the Akron Business and Technology Center in Ohio monitors pilot production of one of our specialty ...

  • Page 12
    ... Cash flow from operations and asset sales (2) Capital and exploration expenditures (2) Cash dividends to ExxonMobil shareholders Common stock purchases (gross) Research and development costs Cash and cash equivalents at year end (3) Total assets at year end Total debt at year end ExxonMobil share...

  • Page 13
    ... per day. ➤ Proved oil and gas reserve additions of 3.5 billion oil-equivalent barrels, replacing 211 percent of production, excluding asset sales. ➤ Started up three major Upstream projects. ➤ Completed new ultra-low sulfur diesel facilities at three refineries. ➤ Major expansion under...

  • Page 14
    ... across our global operations. Upstream EXPLORATION, DEVELOPMENT, PRODUCTION, XTO, GAS & POWER MARKETING, AND RESEARCH S T R AT E G I E S (Photo) Production commenced from the Russian Sakhalin-1 Odoptu field (ExxonMobil interest, 30 percent) in 2010, on time and on budget. The project, in one...

  • Page 15
    ... superior returns. The combination of our technical, project, and commercial expertise ensures we develop our resources most efficiently and effectively. High-Impact฀Technologies฀• We employ high-impact technologies in exploration, reservoir modeling, project development, and production to...

  • Page 16
    ...Natural gas production available for sale (net, millions of cubic feet per day) Oil-equivalent production (net, thousands of barrels per day) Proved reserves replacement (1)(2) (percent) Resource additions (millions of oil-equivalent barrels) Average capital employed (2) (millions of dollars) Return...

  • Page 17
    ...Return on Average Capital Employed ExxonMobil (percent) 60 50 40 30 20 10 Integrated Oil Competitor Average (1) 2006 2007 2008 2009 2010 (1) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis with ExxonMobil, based on public information. Our Controlled Freeze Zone...

  • Page 18
    ...-end 2010, the total resource base stood at 84 billion oil-equivalent barrels, including 10 billion oil-equivalent barrels associated with the XTO fields. Resource Base by Type (percent, oil-equivalent barrels) Conventional Heavy Oil/Oil Sands Unconventional Gas & Oil Acid/Sour LNG Arctic Deepwater...

  • Page 19
    ... 17 Production฀Outlook฀by฀Region Americas Asia Europe Africa Australia/Oceania (millions of oil-equivalent barrels per day, net) 5 4 3 2 1 2010 2011 2012 2013 2014 Our production outlook is supported by strong base performance, high-quality project additions, and new resource potential...

  • Page 20
    ...-1 Odoptu (30%) United States...Golden Pass LNG Terminal (18%) Key Future Major Project Start-Ups Heavy Oil/Oil Sands ...Kearl (100%), Cold Lake Expansion (100%) LNG ...Papua New Guinea LNG (33%), Gorgon Jansz (25%) Conventional ...West Qurna (Phase I) (60%), Upper Zakum 750 (28%), ...Banyu Urip...

  • Page 21
    ... cost to develop these challenged resources. 19 The Golden Pass liquefied natural gas terminal in Sabine Pass, Texas, initiated commissioning and achieved first gas send-out in 2010. The diversity of our gas portfolio and global presence allows us to maximize value through access to many markets.

  • Page 22
    ... AND LUBRICANTS & SPECIALTIES S T R AT E G I E S Invest for Resilient, Advantaged Returns ExxonMobil recently invested more than $1 billion to increase supply of ultra-low sulfur diesel (ULSD). In 2010, we completed construction of new hydrotreater units at our refineries in Baytown, Texas (pictured...

  • Page 23
    ... excellence and cost effectiveness. Global Integration • More than 75 percent of our refining capacity is integrated with our chemical and/or lubes operations. Our global functional organization facilitates efficient development and deployment of global best practices and new technologies.

  • Page 24
    ... mitigate potential safety risks at our sites. To manage business risk, our marketing businesses have robust processes in place to effectively control credit exposure. Disciplined credit and receivables management continues to reduce capital employed, improving financial returns. 2010 2009 2008 2007...

  • Page 25
    ... 2010 (1) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis with ExxonMobil, based on public information. This branded wholesaler station in Illinois is one of more than 26,000 Exxon-, Mobil-, and Esso-branded retail sites providing fuel to millions of customers daily...

  • Page 26
    ... Wholesale, Aviation, and Marine. These businesses customers' vehicles. provide flexibility to serve the needs of a diverse range of customers. In addition to the millions of customers who visit Exxon, Mobil, and Esso retail service stations around the world, our business-to-business sales channels...

  • Page 27
    ... to enable increased production of ultra-low sulfur diesel. We are also progressing research efforts in advanced algae-based biofuels. In 2010, ExxonMobil Research and Engineering Company and Synthetic Genomics Inc. opened a new greenhouse research and testing facility, entering an important...

  • Page 28
    ...Focus on businesses that capitalize on core competencies ➤ Build proprietary technology positions ➤ Capture full benefits of integration across ExxonMobil operations ➤ Consistently deliver best-in-class performance ➤ Selectively invest in advantaged projects - We manage our capital portfolio...

  • Page 29
    ... our Upstream and Downstream deliver benefits through the physical integration of sites, joint feedstock and facilities planning, global competency networks, and sharing of services and best practices. As a result, we capture cost and capital efficiencies while upgrading refining and gas molecules...

  • Page 30
    ... company of Our proprietary technology delivers manufacturing efficiencies and enables real-time feedstock optimization. Technology also underpins the ongoing strengthening of our product portfolio and allows us to develop new products that provide benefits to our customers. BUSINESS ENVIRONMENT...

  • Page 31
    ... on our world-scale project in Singapore. We continued disciplined investment in specialty business growth and high-return efficiency projects. The Shanghai Technology Center was commissioned to support premium product growth in Asia Pacific. percent average return on capital employed over the last...

  • Page 32
    ...The Baytown Olefins Plant combines many of ExxonMobil Chemical's strengths including world-scale efficiency, feedstock flexibility, proprietary technology, and integration. This facility produces over 2 million tonnes per year of product to support a number of our commodity and specialty businesses...

  • Page 33
    ..., in relation to the consolidated financial statements from which it has been derived. Dallas, Texas February 25, 2011 S U M M A RY O F AC C O U N T I N G P O L I C I E S A N D P R AC T I C E S The Corporation's accounting and financial reporting fairly reflect its straightforward business model...

  • Page 34
    ... in ExxonMobil's 2010 Financial Statements and Supplemental Information booklet. Functional Earnings and Net Income (1) Upstream Downstream Chemical Corporate and Financing Net Income (1) Strong฀Cash฀Flow s (1) Operations Asset฀Sales Plant฀Adds฀and฀Net Investments/Advances 32...

  • Page 35
    ...maturity Cash dividends to ExxonMobil shareholders Cash dividends to noncontrolling interests Changes in noncontrolling interests 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...

  • Page 36
    ... benefits reserves adjustment Unrealized gain/(loss) on cash flow hedges Common stock held in treasury ExxonMobil share of equity Noncontrolling interests Total equity Total liabilities and equity (1) For more information, please refer to Note 15 in ExxonMobil's 2010 Financial Statements...

  • Page 37
    ... dilution Year end Cash dividends paid on common stock (millions of dollars) Cash dividends paid to earnings (percent) Cash dividends paid to cash flow (1) (percent) Total return to shareholders (annual percent) Market quotations for common stock (dollars) High Low Average daily close Year-end...

  • Page 38
    ... Cash flow from operations and asset sales CA P I TA L E M P LOY E D 48,413 3,261 51,674 28,438 1,545 29,983 59,725 5,985 65,710 Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the businesses, it includes ExxonMobil's net share...

  • Page 39
    ... historical capital productivity in our capital-intensive, long-term industry, both to evaluate management's performance and to demonstrate to shareholders that capital has been used wisely over the long term. Additional measures, which are more cash flow-based, are used to make investment decisions...

  • Page 40
    ... Upstream Research Company President, ExxonMobil Gas & Power Marketing Company (1) President, XTO Energy Inc. (1) President, ExxonMobil Fuels Marketing Company (1) President, ExxonMobil Refining & Supply Company (1) President, ExxonMobil Lubricants & Petroleum Specialties Company (1) President...

  • Page 41
    ... and Controller (1) Vice President - Safety, Security, Health & Environment Vice President (1) Vice President - Investor Relations and Secretary (1) Vice President and General Counsel (1) Vice President - Human Resources Vice President - Public and Government Affairs Vice President - Corporate...

  • Page 42
    ... Services. Beneficial shareholders should contact their bank or broker to eliminate annual report mailings. Computershare Trust Company, N.A. sponsors a stock purchase and dividend reinvestment plan, the Computershare Investment Plan for Exxon Mobil Corporation Common Stock. For more information...

  • Page 43
    ...-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 © 2 0 1 1 EXXO N M O B I L CO...

  • Page 44
    Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com