Exxon 2012 Annual Report Download

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SUMMARY ANNUAL REPORT

Table of contents

  • Page 1
    2012 SUMMARY ANNUAL REPORT

  • Page 2
    To Our Shareholders Financial & Operating Results The Outlook for Energy Competitive Advantages 2 4 6 8 Global Operations 28 Upstream 30 Downstream 32 Chemical 34 Corporate Citizenship 36 Financial Information 39 Frequently Used Terms 44 Directors, Officers, and Affiliated Companies 46 Investor ...

  • Page 3
    ...term value for our shareholders. Photo: Construction and fabrication activities are progressing on the Papua New Guinea Liquefied Natural Gas project with start-up scheduled for 2014. Cover Photo: The Kearl Initial Development project began commissioning activities in 2012. Following the completion...

  • Page 4
    ...group. Robust cash generation enabled us to fund nearly $40 billion in capital and exploration expenditures to bring new energy supplies and products to the market, while distributing $30 billion to shareholders in the form of dividends and share purchases to reduce shares outstanding. Over the last...

  • Page 5
    ... in the United States and elsewhere. As you read this year's Summary Annual Report, you will see your investment in ExxonMobil at work expanding energy supplies, creating breakthrough new technologies, and contributing to global prosperity in a safe, secure, and responsible way. The men and women of...

  • Page 6
    ... e (2) Upstream Downstream Chemical Corporate and Financing Net Income (3) Return on Average Capital Employed (1) ExxonMobil (percent) 35 30 Integrated Oil Competitor Average (4) (billions of dollars) 50 40 25 30 20 15 10 10 5 0 -3 20 IS IN 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012...

  • Page 7
    5 FINANCIAL HIGHLIGHTS (millions of dollars, unless noted) Earnings After Income Taxes Average Capital Employed(1) Return on Average Capital Employed (%)(1) Capital and Exploration Expenditures(1) Upstream Downstream Chemical Corporate and Financing Total 29,895 13,190 3,898 (2,103) 44,880 ...

  • Page 8
    ... ~500 Quads 200 150 600 100 400 200 50 2.4% 0.4% 5.8% 1.8% 1990 2000 2010 2020 2030 2040 Oil Gas Coal Nuclear Biomass (1) OECD = Organisation for Economic Co-operation and Development. Source: ExxonMobil, 2013 The Outlook for Energy: A View to 2040 Wind/ Hydro/ Solar/ Geo Biofuels

  • Page 9
    ... of the dynamic nature of energy supply and demand over time. By capitalizing on advanced technologies to unlock oil and gas resources, North America will likely transition to a net energy exporter by 2025, creating new economic opportunities while supporting growing energy demand in other parts of...

  • Page 10
    ...2012 SUMMARY ANNUAL REPORT C O M P E T I T I V E A D VA N TA G E S : Balanced Portfolio Our portfolio is unmatched in quality, size, and diversity. A broad base of highly competitive resources, assets, products, and projects within each of our global businesses - Upstream, Downstream, and Chemical...

  • Page 11
    9 Operations in 47 countries around the world 87 billion oil-equivalent barrels in our worldwide resource base Photo: ExxonMobil's balanced portfolio includes world-class refining, chemical, and lubes operations, including our integrated manufacturing complex in Beaumont, Texas.

  • Page 12
    ... and project portfolio, our existing oil and gas production is diversified across all major regions, including North America, Europe, Africa, the Middle East, Asia, and Australia. In North America, we produce oil and gas in Texas, Louisiana, the Gulf of Mexico, California, the mid-continent states...

  • Page 13
    ...is well positioned to benefit from growing crude oil production in the United States and Canada. Chemical Segment Earnings Specialties (billions of dollars) 5 Chemical 2012 Prime Product Sales (percent, tonnes) Commodities Americas 4 3 2 1 Asia Pacific Europe/ Middle East/ Africa 2003 04 05...

  • Page 14
    ... Upstream project start-ups between 2013 and 2017 25 percent return on capital employed across our worldwide operations, leading the industry Photo: In 2012, we began production from the Kizomba Satellites Phase 1 project as part of our world-class Angola Block 15 development offshore West Africa...

  • Page 15
    13

  • Page 16
    ... Downstream interests in 19 refineries, 6,000 miles of pipeline, 191 product terminals, 37 lube oil blend plants, and more than 22,000 retail service stations. These Downstream portfolio improvements resulted in a nearly 4-percentage-point improvement in our Downstream return on capital employed...

  • Page 17
    ... the data; it is a piece of artwork buiilt by a human. Therefore, the editor needs to thoroughly proof the final artwork, not JUST the data list. Todd Sepulveda • Investor Relations Exxon Mobil Corporation, Irving, TX office: 972-444-1151 • cell:504-312-0126 [email protected] Eric...

  • Page 18
    16 EXXONMOBIL 2012 SUMMARY ANNUAL REPORT

  • Page 19
    ... that unlock new energy sources, reduce the cost of our projects, improve the efficiency of our operations, and increase the value of our products. $ 5 billion invested in research and development since 2008 World-record 7.7-mile-long horizontal well drilled in 2012 Photo: ExxonMobil's Subsea...

  • Page 20
    ..., a key advantage in identifying new resources and optimizing drilling and reservoir development plans. Extended-reach drilling technology enables access to challenging and complex reservoirs, reducing the number of wells needed to produce oil and gas. Notably, we have drilled 26 of the world's 30...

  • Page 21
    ...environment metallurgy challenges to developing state-of-the-art technology to better understand the molecular composition of crude oil, our research activity helps maximize the value of every molecule we produce. Technological advances in our Downstream and Chemical businesses enable us to generate...

  • Page 22
    20 EXXONMOBIL 2012 SUMMARY ANNUAL REPORT

  • Page 23
    ... in refinery energy efficiency since 2002 45 thousand net oil-equivalent barrels per day of additional production from higher operated reliability Photo: Appraisal well drilling at our Hadrian discovery in the Gulf of Mexico. Our talented workforce, backed by comprehensive management systems, forms...

  • Page 24
    ...third of the operating cost of a refinery, every incremental improvement in energy efficiency results in increased margins and profitability. In 2012, we achieved best-ever energy efficiency for our global refining network, and since 2002 we have improved our refinery energy efficiency by 10 percent...

  • Page 25
    ... applied around the globe, including at the Baton Rouge Refinery (above, left). These systems ensure that our high operational standards are met in all of our operations. Each of the 11 elements of ExxonMobil's Operations Integrity Management System (below) contains an underlying principle and...

  • Page 26
    ... for competitors to replicate. More than 90 percent of Chemical operations integrated with Downstream or Upstream More than 75 percent of refining capacity integrated with Chemical or Lubes operations Photo: Ethane, recovered from natural gas at facilities such as our Hawkins gas plant in Texas...

  • Page 27
    25

  • Page 28
    ... between our Upstream and Downstream organizations. Our global supply team has a broad understanding of the marketing options for new crudes, while our refining and technology organizations have the technical knowledge to optimize the processing of Kearl production. Sharing and integrating...

  • Page 29
    ... the data; it is a piece of artwork buiilt by a human. Therefore, the artwork, not JUST the data list. (percent) 80 (percent) 40 60 30 40 20 Todd Sepulveda • Investor Relations Exxon Mobil Corporation, Irving, TX office: 972-444-1151 • cell:504-312-0126 fax: 972-444-1505 todd.m.sepulveda...

  • Page 30
    ... 2012 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. As of December 31, 2012 UPSTREAM...

  • Page 31
    29 Upstream Downstream Chemical IS IN SAR and F&O VERSION Feb. 08, 2013 Feb. 08, 2012 APPROVED APPROVED BY BY

  • Page 32
    ... reserves replacement ratio(2)(3) (percent) Resource additions (2) (millions of oil-equivalent barrels) Average capital employed(2) (millions of dollars) Return on average capital employed(2) (percent) Capital and exploration expenditures(2) (millions of dollars) (1) Natural gas converted to oil...

  • Page 33
    ... 100 80 60 40 20 Global Natural Gas Production by Type Deepwater Other Liquids 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, 2013 The Outlook for Energy: A View to 2040

  • Page 34
    ...and long-term leased marine vessels Best-ever refinery energy efficiency, driven by our Global Energy Management System and cogeneration facilities Record production of ultra-low sulfur diesel (ULSD), reflecting strong operations and new hydrotreating investments Record sales of our industry-leading...

  • Page 35
    ... 75 percent of our refining operations integrated with chemicals or lubes, which provides unique optimization capability across the entire value chain. Our fuels and lubricants marketing businesses have global reach and a portfolio of world-renowned brands, including Exxon, Mobil, and Esso. Our long...

  • Page 36
    ...record at our Singapore Chemical Expansion project Earnings of $3.9 billion, supported by strong and growing premium product contributions, Middle East assets, and North America feed flexibility, allowing capture of low-cost feed and energy benefits Return on average capital employed of 19.3 percent...

  • Page 37
    ... is spurring new capacity investments around the globe, particularly in North America tied to growing supplies of ethane. Unconventional natural gas development in North America has brought significant feedstock and energy benefits to domestic chemical producers by providing both low-cost ethane...

  • Page 38
    36 EXXONMOBIL 2012 SUMMARY ANNUAL REPORT 7,500 acres of protected wildlife habitat actively managed in 2012 $ 330 million invested to improve energy efficiency, reduce flaring, and reduce GHG emissions in 2012 Photo: Workers at our Kearl development in Canada have made it a priority to protect...

  • Page 39
    ...to providing a safe work environment for our employees, contractors, and the communities in which we operate. Our process safety approach focuses on reducing risk through the flawless execution of our Operations Integrity Management System (OIMS). Rigorously deployed throughout our global operations...

  • Page 40
    ...and globally competitive supply chain wherever we operate. To learn more about our citizenship efforts, please see the annual Corporate Citizenship Report at exxonmobil.com/citizenship. Our work with local suppliers resulted in the completion of the first offshore structures to be designed, procured...

  • Page 41
    ... relation to the consolidated financial statements from which it has been derived. Dallas, Texas February 27, 2013 SUMMARY OF ACCOUNTING POLICIES AND PRACTICES The Corporation's accounting and financial reporting fairly reflect its straightforward business model involving the extracting, refining...

  • Page 42
    ... SUMMARY ANNUAL REPORT FINANCIAL HIGHLIGHTS (millions of dollars, unless noted) 2012 2011 2010 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
    41 SUMMARY STATEMENT OF INCOME (millions of dollars) 2012 2011 2010 Revenues and Other Income Sales and other operating revenue (1) Income from equity affiliates Other income Total revenues and other income Costs and Other Deductions Crude oil and product purchases Production and manufacturing ...

  • Page 44
    ... liabilities and equity (1) For more information, please refer to Note 16 in ExxonMobil's 2012 Financial Statements and Supplemental Information booklet. The information in the Summary Statement of Income (for 2010 to 2012), the Summary Balance Sheet (for 2011 and 2012), and the Summary Statement of...

  • Page 45
    ... of equity companies Changes in operational working capital, excluding cash and debt Reduction/(increase) - Notes and accounts receivable - Inventories - Other current assets Increase/(reduction) - Accounts and other payables Net (gain) on asset sales All other items - net Net cash provided by...

  • Page 46
    ... period. For 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 for 2009 and later years are based on...

  • Page 47
    ... TO SHAREHOLDERS (millions of dollars) 2012 2011 2010 2009 2008 Dividends paid to ExxonMobil shareholders Cost of shares purchased to reduce shares outstanding Distributions to ExxonMobil shareholders Memo: Gross cost of shares purchased to offset shares issued under benefit plans and...

  • Page 48
    ... 2012 SUMMARY ANNUAL REPORT Directors, Officers, and Affiliated Companies* BOARD OF DIRECTORS Peter BrabeckLetmathe Chairman of the Board, Nestlé (nutrition, health and wellness) Larry R. Faulkner President Emeritus, The University of Texas at Austin; Former President, Houston Endowment...

  • Page 49
    ... President - Public and Government Affairs Vice President - Corporate Strategic Planning (1) Vice President - Washington Office Vice President - Human Resources Vice President and President - ExxonMobil Upstream Ventures (1) S.M. Greenlee A.J. Kelly R.M. Kruger P.T. Mulva S.D. Pryor D.S. Rosenthal...

  • Page 50
    ... are available 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 Registered shareholders may eliminate annual report mailings by...

  • Page 51
    ...-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 The 2013 Annual Meeting of Shareholders will...

  • Page 52
    Corporate Headquarters 5959 Las Colinas Blvd. Irving, Texas 75039-2298 exxonmobil.com Annual Report 002CSN8214