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2011 Summary Annual Report

Table of contents

  • Page 1
    2011 Summary Annual Report

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

  • Page 3
    ...energy challenges. On the Cover: Our Singapore petrochemical plant is undergoing a major expansion, including the addition of two polyethylene units. Inside Cover: In the U.S. Gulf of Mexico, we made a significant oil discovery with the Hadrian-5 exploration well. We estimate a recoverable resource...

  • Page 4
    ... deliver competitive returns from major oil sands projects in Canada, liquefied natural gas developments in Papua New Guinea and Australia, greater ultra-low sulfur diesel production capacity, and a major expansion of our Singapore petrochemical facility. We plan to invest approximately $185 billion

  • Page 5
    ... customers we serve and the communities where we operate. As you read this year's Summary Annual Report, you will find many reasons to be proud of your investment in ExxonMobil. We remain committed to delivering value to our shareholders as we move forward in the important task of meeting the energy...

  • Page 6
    ... Annual dividend per share growth of 6 percent versus 2010, the 29th consecutive year of dividend per share increases Proved oil and gas reserve additions of 2.0 billion oil-equivalent barrels, replacing 116 percent of production, excluding asset sales (1) Cumulative Distributions to Shareholders...

  • Page 7
    5 Our Kearl oil sands project in Canada is developing a world-class resource in northern Alberta, and is expected to exceed 4 billion oil-equivalent barrels. return on average capital employed, outpacing competition 24.2% Cash flow from operations and asset sales of $ 66.5 billion (1)

  • Page 8
    6 ExxonMobil • 2011 Summary Annual Report global energy demand likely higher in 2040 Oil & natural gas expected to meet 30% 60 % of demand

  • Page 9
    ... 0.7% Average growth rate per year 200 150 1.6% -0.2% 600 100 400 200 50 2.2% 0.3% 6.0% 1.6% 1990 2000 2010 2020 2030 2040 Oil Gas Coal Nuclear Biomass (1) OECD = Organisation for Economic Co-operation and Development. Source: ExxonMobil, 2012 The Outlook for Energy: A View to 2040...

  • Page 10
    ... Summary Annual Report C O m P E T I T I V E a D Va n Ta g E S : Balanced Portfolio The quality, size, and diversity of our portfolio of resources, projects, products, and assets are unparalleled. The portfolio provides economies of scale and contains a large inventory of high-quality investment...

  • Page 11
    9 ExxonMobil operates the Sakhalin-1 project in far eastern Russia, which comprises the Chayvo, Odoptu, and Arkutun-Dagi fields. The Sakhalin-1 project is one of the largest foreign investments in Russia.

  • Page 12
    ... ExxonMobil • 2011 Summary Annual Report C O m P E T I T I V E a D Va n Ta g E S : Balanced Portfolio We have operations in more than 45 countries and participate in the development of all major resource types. We also supply key markets with high-value petroleum and petrochemical products. The...

  • Page 13
    ... presence, including this plant in Singapore (left). We are a market leader in synthetic artwork, not JUST the EDITOR lubricants, including Mobil 1, shown (right) at a fill line in our Paulsboro, New Jersey, lube oil blending facility. Neil Hansen • Investo Exxon Mobil Corporat office: 972-444...

  • Page 14
    ... opportunities that are likely to provide long-term shareholder value. We focus on the efficient use of capital to achieve superior investment returns. Developing 21 major upstream projects over next 3 years adding 2.6 million tonnes of new capacity with our Singapore chemical plant expansion

  • Page 15
    13 Construction and fabrication activities are progressing on the Kearl Initial Development project with start-up scheduled for late 2012.

  • Page 16
    14 ExxonMobil • 2011 Summary Annual Report C O m P E T I T I V E a D Va n Ta g E S : Disciplined Investing A disciplined approach to investing combines effective project assessment and development with technical and commercial expertise. It also involves identification of market trends and ...

  • Page 17
    ...the U.S. Gulf of Mexico, western Canada, and the North Sea, and in a gas storage business in Germany. We also announced divestments of Downstream assets in Malaysia, Switzerland, Central America, Argentina, Paraguay, and Uruguay. Our transition to a more capital-efficient branded wholesaler model in...

  • Page 18
    ... This demonstration plant at our Shute Creek facility in Wyoming is testing ExxonMobil's proprietary Controlled Freeze Zone (CFZ) technology. This technology could lower the cost of removing carbon dioxide and hydrogen sulfide from natural gas. It could also assist in the application of carbon...

  • Page 19
    17

  • Page 20
    ... efforts are focused on the use of solvents to access undeveloped resources, improve bitumen recovery, lower water use, and reduce greenhouse gas emissions. These important advances are being applied and tested at our heavy oil fields in Canada. I m P R OV I n g O P E R aT I O n S We develop...

  • Page 21
    ...in oil sands is under way at our Upstream Research Company in Houston (left). We are also conducting product development at our Shanghai Technology Center to further improve the value we deliver (right). production of products with enhanced yields and margins. ExxonMobil's Chemical business pursues...

  • Page 22
    20 ExxonMobil • 2011 Summary Annual Report C O m P E T I T I V E a D Va n Ta g E S : Operational Excellence We employ management systems that are rigorously applied to our worldwide operations. These systems are designed to enable the consistent application of the highest operational standards....

  • Page 23
    21

  • Page 24
    ... improvements in developing our global portfolio of unconventional oil and natural gas assets. Because manufacturing is an energy-intensive process, efforts to improve the efficiency of our energy use provide both cost savings and a competitive advantage. For example, in our Downstream business, we...

  • Page 25
    ... the world, including at our West Qurna I project in Iraq (left) and at our Beaumont chemical plant in Texas (right). Other areas of our Downstream business have achieved significant cost efficiencies as well. For example, we are restructuring our Fuels Marketing business model in the United States...

  • Page 26
    24 ExxonMobil • 2011 Summary Annual Report C O m P E T I T I V E a D Va n Ta g E S : Global Integration The global integration of our business lines and functional organizations allows us to capture significant value across the supply chain, at manufacturing sites, and more broadly, in the ...

  • Page 27
    25 Baytown, Texas, is the site of our largest refining and petrochemical complex in the United States. Crude oil is supplied to this facility from all over the world.

  • Page 28
    ... of Upstream project development, our Downstream business leverages technical and commercial expertise as well as world-class refining and logistics assets to enhance resource value. Direct commercial, technical, and supply chain support is provided to the Upstream to help develop potential market...

  • Page 29
    ... crude oils and other feedstocks. We are able to maximize these benefits because 75 percent of our refining capacity is integrated with our chemical or lubes operations, and more than 90 percent of the feedstocks for our chemical operations comes from either our upstream production or our refineries...

  • Page 30
    ... • 2011 Summary Annual Report global Operations As the world's largest publicly held oil and gas company, ExxonMobil has a diverse and balanced portfolio of high-quality resources, projects, and assets across our Upstream, Downstream, and Chemical businesses. CanaDa The Kearl oil sands project...

  • Page 31
    .... The Singapore Refinery, with more than 600 thousand barrels per day of crude distillate capacity, is also the largest refinery in our global network. IR aQ We are working to redevelop and expand production from the West Qurna I oil field in southern Iraq. At year-end 2011, production was 370...

  • Page 32
    ... resource addition cost of $1.40 per oil-equivalent barrel upstream capital and exploration spending of $33.1 billion with total investment over the past five years at more than $116 billion made a significant oil discovery in the u.S. gulf of mexico with the Hadrian-5 exploration well Signed...

  • Page 33
    ... barrels per day) 120 100 80 60 40 20 Global Natural Gas Production by Type Oil Sands Biofuels Conventional Unconventional (billions of cubic feet per day) 600 500 400 300 200 100 2000 2010 2020 2030 2040 2000 2010 2020 2030 2040 Source: ExxonMobil, 2012 The Outlook for Energy: A View...

  • Page 34
    32 ExxonMobil • 2011 Summary Annual Report Downstream Exxonmobil's Downstream segment is comprised of a global portfolio of businesses that include Refining & Supply, Fuels, lubricants & Specialties marketing, and Research and Engineering. Integrated business strategies and global reach provide ...

  • Page 35
    ... of 131 thousand barrels per day. We lead industry with more than 75 percent of our refining capacity integrated with chemical or lubes. Our fuels and lubricants marketing businesses have global reach through market channels that serve a globally diverse customer base. Technology leadership enables...

  • Page 36
    ...scale plant for manufacture of next-generation synthetic lubricant basestock, employing our proprietary metallocene catalyst technology and leveraging integration with our Baytown refining-chemical complex C H E m I Ca l S TaT I S T I Ca l R E Ca P Earnings (millions of dollars) Prime product sales...

  • Page 37
    ... world-scale facilities. Feedstock flexibility allows us to capitalize on changing market factors, such as the availability of low-cost ethane feedstock arising from the expansion of North American unconventional natural gas in recent years. global Demand growth Rates (1) GDP Commodity Chemicals...

  • Page 38
    ... 2011 Summary Annual Report added 6400 acres of protected wildlife habitat since 2009 Invested $1.5 billion to improve energy efficiency since 2007 Our Cold Lake field in Alberta, Canada, is the largest thermal in situ heavy oil project in the world. It has more than 4000 wells directionally...

  • Page 39
    ... well as creating a resource center to develop the business skills of local suppliers. We have also invested in health and education infrastructure, investments of mutual benefit to our project and to Papua New Guineans. In addition to the $1.3 billion spent in 2011 on project-related activities, we...

  • Page 40
    ..., and develop breakthrough technologies for the long term. Since 2007, we have invested more than $1.5 billion to improve energy efficiency and reduce greenhouse gas emissions. We also continue as an active participant in public discussions related to designing constructive, cost-effective ways to...

  • Page 41
    ... Company Accounting Oversight Board (United States), the Consolidated Balance Sheets of Exxon Mobil Corporation and its subsidiaries as of December 31, 2011 and 2010, and the related Consolidated Statements of Income, Comprehensive Income, Changes in Equity and Cash Flows for each of the three years...

  • Page 42
    ... Summary Annual Report FInanCIal HIgHlIgHTS (millions of dollars, unless noted) 2011 2010 2009 Net income attributable to ExxonMobil Cash flow from operations and asset sales (1) Capital and exploration expenditures (1) Research and development costs Total debt at year end Average capital employed...

  • Page 43
    ... includes sales-based taxes of $33,503 million for 2011, $28,547 million for 2010, and $25,936 million for 2009. The information in the Summary Statement of Income (for 2009 to 2011), the Summary Balance Sheet (for 2010 and 2011), and the Summary Statement of Cash Flows (for 2009 to 2011), shown...

  • Page 44
    ... and equity (1) For more information, please refer to Note 15 in ExxonMobil's 2011 Financial Statements and Supplemental Information booklet. The information in the Summary Statement of Income (for 2009 to 2011), the Summary Balance Sheet (for 2010 and 2011), and the Summary Statement of Cash Flows...

  • Page 45
    ...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 46
    ...this purpose, we assume dividends are reinvested in stock at market prices at approximately the same time actual dividends are paid. Shareholder return is usually quoted on an annualized basis. Proved Reserves • Proved reserves in this publication from 2009 and later years are based on current SEC...

  • Page 47
    ... share of total debt and 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. EXPlORaTIOn RESOuRCE aDDITIOn COST 2011 2010 2009 2008 2007...

  • Page 48
    ... Development Company (1) President, ExxonMobil Exploration Company (1) President, ExxonMobil Production Company (1) President, ExxonMobil Upstream Research Company President, ExxonMobil Gas & Power Marketing Company (1) President, XTO Energy Inc.(1) President, ExxonMobil Refining & Supply Company...

  • Page 49
    ...(1) Vice President and Treasurer (1) Senior Vice President (1) Senior Vice President (1) Senior Vice President (1) Vice President and General Counsel (1) Vice President - Human Resources Vice President - Public and Government Affairs Vice President - Corporate Strategic Planning (1) Vice President...

  • Page 50
    ... 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 51
    ...-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. © 2 0 1 2 EXXO N M O B I L CO R P O R AT I O N annual meeting...

  • Page 52
    Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com FSC/Recycle Info (by printer) Annual Report 002CSN0518