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Exxon Mobil Corporation Announces Estimated Second Quarter 2005 Results

IRVING, Texas--(BUSINESS WIRE)--July 28, 2005--Exxon Mobil Corporation (NYSE:XOM):


                                    Second Quarter        First Half
                                     2005     2004       2005     2004
Net Income
  $ Millions                        7,640    5,790     15,500   11,230
  $ Per Common Share
     Assuming Dilution               1.20     0.88       2.42     1.71

Earnings Excluding Special Items
  $ Millions                        7,840    5,790     15,240   11,230
  $ Per Common Share
     Assuming Dilution               1.23     0.88       2.38     1.71

Capital and Exploration
Expenditures - $ Millions           4,537    3,617      7,954    7,018

Exxon Mobil Corporation (NYSE:XOM) today reported record second quarter results. Earnings excluding special items of $7,840 million ($1.23 per share) increased $2,050 million from the second quarter of 2004. Second quarter net income included a special charge of $200 million for the Allapattah lawsuit provision. Including this charge, net income of $7,640 million ($1.20 per share) increased by $1,850 million. Record first half net income of $15,500 million ($2.42 per share) increased by 38% versus the first half of 2004.

Capital and exploration expenditures of $4,537 million in the second quarter of 2005 were up $920 million compared with last year.

ExxonMobil's Chairman Lee R. Raymond commented as follows:

"Compared with last year's second quarter, ExxonMobil's second quarter 2005 earnings excluding special items of $7,840 million increased $2,050 million and are the highest second quarter ever for the Corporation. Including the special charge for the Allapattah lawsuit provision, net income increased $1,850 million.

"Upstream earnings were $4,908 million, an increase of $1,062 million from second quarter 2004 reflecting continued strength in crude and natural gas prices.

"Downstream earnings, excluding Allapattah, were $2,221 million, an increase of $714 million from last year due to improved worldwide refining conditions and higher refinery throughput.

"Chemical earnings were $814 million, up $207 million from second quarter 2004 due to higher margins.

"ExxonMobil's net income for the first half of 2005 was a record $15,500 million, up $4,270 million from the first half of 2004. Excluding special items, earnings increased by $4,010 million reflecting improvements in all areas of the business.

"Exxon Mobil continued its active investment program in the second quarter, spending $4,537 million on capital and exploration projects, compared with $3,617 million last year, with continued strong levels of Upstream spending. Our disciplined project management systems remain a competitive advantage. ExxonMobil-operated projects that are key to future volume growth continue to be on budget and on or ahead of schedule.

"During the second quarter, the Corporation purchased $3.7 billion of shares including $3.5 billion to reduce common stock outstanding, a $1.0 billion increase from the $2.5 billion of share reduction purchases in the first quarter. As a consequence of the continued strengthening of our financial position, share purchases to reduce shares outstanding will be increased to $5.0 billion in the third quarter."

Additional comments on earnings for the major operating segments follow:

Second Quarter 2005 vs. Second Quarter 2004

Upstream earnings were $4,908 million, up $1,062 million from the second quarter 2004 reflecting strong crude and natural gas prices partly offset by lower production.

On an oil-equivalent basis, production decreased by 4.3% from the second quarter of 2004. Excluding divestment and entitlement effects, production decreased by 2%. Our mature fields continue to perform as expected and for those fields we operate, maintenance has been as anticipated.

Liquids production of 2,466 kbd (thousands of barrels per day) was 115 kbd lower than the second quarter of 2004. Higher production in West Africa was more than offset by mature field decline, maintenance activities, as well as entitlement and divestment impacts.

Second quarter natural gas production decreased to 8,686 mcfd (millions of cubic feet per day), compared with 9,061 mcfd last year. Higher volumes in Qatar were more than offset by mature field decline, maintenance activities, and the impact of divestments.

Earnings from U.S. Upstream operations were $1,389 million, $152 million higher than last year's second quarter. Non-U.S. Upstream earnings of $3,519 million were up $910 million from 2004.

Downstream earnings, excluding the $200 million Allapattah charge, were $2,221 million, up $714 million from the second quarter of 2004, reflecting improved refining margins and higher refinery throughput. Petroleum product sales were 8,259 kbd, 236 kbd higher than last year's second quarter.

U.S. Downstream earnings, excluding Allapattah, were $1,199 million, $292 million higher than last year's second quarter. Non-U.S. Downstream earnings were up $422 million at $1,022 million.

Chemical earnings were $814 million, up $207 million from the same quarter a year ago due to improved margins partly offset by lower volumes. Prime product sales of 6,592 kt (thousands of metric tons) were down 338 kt from last year's second quarter.

Corporate and financing expenses of $103 million were lower by $67 million mainly due to higher interest income.

During the second quarter of 2005, Exxon Mobil Corporation purchased 64 million shares of its common stock for the treasury at a gross cost of $3,713 million. These purchases included $3.5 billion to reduce the number of shares outstanding and the balance to offset shares issued in conjunction with company benefit plans and programs. Shares outstanding were reduced from 6,366 million at the end of the first quarter to 6,305 million at the end of the second quarter. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.

First Half 2005 vs. First Half 2004

Record net income of $15,500 million ($2.42 per share) for the first half of 2005 increased $4,270 million from the first half of 2004. Net income for the first half of 2005 included a $460 million positive impact (Downstream -- $310 million; Chemical -- $150 million) from the sale of the Corporation's stake in China Petroleum and Chemical Corporation ("Sinopec") and a special charge in the Downstream of $200 million for the Allapattah lawsuit provision. Excluding these impacts, earnings for the first half of 2005 increased by $4,010 million.

Upstream earnings of $9,962 million increased $2,103 million from the first half of 2004 due to higher liquids and natural gas realizations partly offset by lower production.

On an oil-equivalent basis, production decreased by 4.5% from the first half of last year. Excluding divestment and entitlement effects, production decreased by 3% from the first half of last year. Our mature fields continue to perform as expected and for those fields we operate, maintenance has been as anticipated.

Liquids production of 2,504 kbd decreased by 104 kbd from 2004. Higher production from new fields in West Africa and the North Sea was more than offset by mature field decline, maintenance, as well as the impact of entitlements and divestments.

First half natural gas production of 9,730 mcfd decreased 545 mcfd from 2004. Higher volumes in Qatar were more than offset by mature field decline, maintenance, and the impact of divestments.

Earnings from U.S. Upstream operations for the first half of 2005 were $2,742 million, an increase of $351 million. Earnings outside the U.S. were $7,220 million, $1,752 million higher than last year.

Downstream earnings, excluding special items, of $3,364 million increased by $853 million from the first half of 2004 reflecting stronger worldwide refining margins and higher refinery throughput partly offset by weak marketing margins. Petroleum product sales of 8,244 kbd compared with 8,074 kbd in the first half of 2004.

U.S. Downstream earnings, excluding Allapattah, were $1,844 million, up $545 million. Non-U.S. Downstream earnings, excluding Sinopec, of $1,520 million were $308 million higher than last year.

Chemical earnings, excluding Sinopec, of $2,096 million were up $925 million from the first half of 2004 due to improved margins partly offset by lower volumes. Prime product sales of 13,530 kt were down 192 kt from 2004.

Corporate and financing expenses of $182 million decreased by $129 million mainly due to higher interest income.

Gross share purchases in the first half of 2005 were $7,337 million which reduced shares outstanding by 1.5%.

Estimates of key financial and operating data follow. Financial data, except per share amounts, are expressed in millions of dollars.

ExxonMobil will discuss financial and operating results and other matters on a webcast at 10 a.m. central time on July 28, 2005. To listen to the event live or in archive, go to our website at www.exxonmobil.com.

Statements in this release relating to future plans, projections, events, or conditions are forward-looking statements. Actual results, including production growth and capital spending, could differ materially due to changes in long-term oil or gas prices or other market conditions affecting the oil and gas industry; political events or disturbances; reservoir performance; changes in OPEC quotas; timely completion of development projects; changes in technical or operating conditions; and other factors including those discussed under the heading "Factors Affecting Future Results" on our website and in Item 1 of ExxonMobil's 2004 Form 10-K. We assume no duty to update these statements as of any future date.

Consistent with previous practice, the second quarter press release includes both net income and earnings excluding special items. In 2005, there were special items reported in the first and second quarters. Earnings that exclude the aforementioned items are a non-GAAP financial measure and are included to help facilitate comparisons of base business performance across periods. A reconciliation to net income is shown in Attachment II. Further information on ExxonMobil's frequently used financial and operating measures is contained on pages 28 and 29 in the 2004 Form 10-K and is also available through the Investor Information section of our website at www.exxonmobil.com.



                                                          ATTACHMENT I
                        EXXON MOBIL CORPORATION
                          SECOND QUARTER 2005
            (millions of dollars, except per share amounts)

                                    Second Quarter        First Half
                                    2005     2004       2005     2004
EARNINGS / EARNINGS PER SHARE

  Total revenues and other income  88,568   70,693    170,619  138,295
  Total costs and other deductions 75,809   61,213    144,957  119,853
  Income before income taxes      $12,759   $9,480    $25,662  $18,442
     Income taxes                   5,119    3,690     10,162    7,212
  Net income (U.S. GAAP)           $7,640   $5,790    $15,500  $11,230

  Net income per common share
    (dollars)                       $1.21    $0.89      $2.44    $1.72
  Net income per common share
   - assuming dilution (dollars)    $1.20    $0.88      $2.42    $1.71


OTHER FINANCIAL DATA

  Dividends on common stock
     Total                         $1,840   $1,763     $3,568   $3,405
     Per common share               $0.29    $0.27      $0.56    $0.52

  Millions of common shares
    outstanding
     At June 30                                         6,305    6,506
     Average - assuming dilution    6,370    6,547      6,394    6,563

  Shareholders' equity at June 30                    $104,596  $93,535
  Capital employed at June 30                        $115,711 $105,852

  Income taxes                      5,119    3,690     10,162    7,212
  Excise taxes                      7,515    6,514     14,753   12,930
  All other taxes                  11,212   10,542     22,156   21,395
     Total taxes                  $23,846  $20,746    $47,071  $41,537

  ExxonMobil's share of income
   taxes of equity companies         $269     $251       $762     $640

                                                         ATTACHMENT II
                        EXXON MOBIL CORPORATION
                          SECOND QUARTER 2005
                         (millions of dollars)

                                    Second Quarter       First Half
                                    2005     2004       2005     2004

Net Income (U.S. GAAP)
Upstream
  United States                    1,389    1,237      2,742    2,391
  Non-U.S.                         3,519    2,609      7,220    5,468
Downstream
  United States                      999      907      1,644    1,299
  Non-U.S.                         1,022      600      1,830    1,212
Chemical
  United States                      343      148        835      266
  Non-U.S.                           471      459      1,411      905
Corporate and financing             (103)    (170)      (182)    (311)
Net income (U.S. GAAP)            $7,640   $5,790    $15,500  $11,230

Special Items
Downstream
  United States                     (200)       0       (200)       0
  Non-U.S.                             0        0        310        0
Chemical
  Non-U.S.                             0        0        150        0
Corporate total                    ($200)      $0       $260       $0

Earnings Excluding Special Items
Upstream
  United States                    1,389    1,237      2,742    2,391
  Non-U.S.                         3,519    2,609      7,220    5,468
Downstream
  United States                    1,199      907      1,844    1,299
  Non-U.S.                         1,022      600      1,520    1,212
Chemical
  United States                      343      148        835      266
  Non-U.S.                           471      459      1,261      905
Corporate and financing             (103)    (170)      (182)    (311)
Corporate total                   $7,840   $5,790    $15,240  $11,230




                                                        ATTACHMENT III
                        EXXON MOBIL CORPORATION
                          SECOND QUARTER 2005

                                    Second Quarter        First Half
                                    2005     2004       2005     2004
Net production of crude oil
and natural gas liquids,
thousands of barrels daily (kbd)
  United States                       500      576        520      587
  Canada                              355      356        356      362
  Europe                              554      608        565      608
  Asia Pacific                        173      198        173      207
  Africa                              583      542        590      543
  Other Non-U.S.                      301      301        300      301
     Worldwide                      2,466    2,581      2,504    2,608

Natural gas production available
 for sale, millions of cubic feet
 daily (mcfd)
  United States                     1,809    1,987      1,853    2,032
  Canada                              913      974        918      992
  Europe                            3,790    3,756      4,773    4,895
  Asia Pacific                      1,333    1,590      1,322    1,590
  Other Non-U.S.                      841      754        864      766
     Worldwide                      8,686    9,061      9,730   10,275

Oil-equivalent production
 (koebd)(a)                         3,914    4,091      4,126    4,320


(a) Gas converted to oil-equivalent at 6 million cubic feet = 1
    thousand barrels

                                            ATTACHMENT III (continued)
                        EXXON MOBIL CORPORATION
                          SECOND QUARTER 2005

                                    Second Quarter        First Half
                                    2005     2004       2005     2004
Petroleum product sales (kbd)
  United States                     2,986    2,865      2,929    2,811
  Canada                              608      584        614      599
  Europe                            2,128    2,106      2,092    2,117
  Asia Pacific                      1,722    1,585      1,783    1,655
  Other Non-U.S.                      815      883        826      892
     Worldwide                      8,259    8,023      8,244    8,074

  Gasolines, naphthas               3,343    3,302      3,244    3,229
  Heating oils, kerosene, diesel    2,461    2,360      2,575    2,505
  Aviation fuels                      720      679        706      669
  Heavy fuels                         675      649        696      646
  Specialty products                1,060    1,033      1,023    1,025
     Total                          8,259    8,023      8,244    8,074

Refinery throughput (kbd)
  United States                     1,906    1,854      1,883    1,818
  Canada                              467      441        474      459
  Europe                            1,668    1,671      1,617    1,644
  Asia Pacific                      1,413    1,314      1,472    1,363
  Other Non-U.S.                      273      309        292      309
     Worldwide                      5,727    5,589      5,738    5,593

Chemical prime product sales,
thousands of metric tons (kt)
  United States                     2,664    2,925      5,502    5,728
  Non-U.S.                          3,928    4,005      8,028    7,994
     Worldwide                      6,592    6,930     13,530   13,722

                                                         ATTACHMENT IV
                        EXXON MOBIL CORPORATION
                          SECOND QUARTER 2005
                         (millions of dollars)

                                    Second Quarter      First Half
                                    2005     2004       2005     2004
Capital and Exploration
 Expenditures

  Upstream
     United States                    531      464        972      919
     Non-U.S.                       3,147    2,376      5,518    4,625
     Total                          3,678    2,840      6,490    5,544
  Downstream
     United States                    201      196        349      398
     Non-U.S.                         448      428        752      736
     Total                            649      624      1,101    1,134
  Chemical
     United States                     73       64        128      115
     Non-U.S.                         102       84        195      165
     Total                            175      148        323      280

  Other                                35        5         40       60

  Worldwide                        $4,537   $3,617     $7,954   $7,018

Exploration expenses charged to
 income included above
  Consolidated affiliates
     United States                     53       46         74       85
     Non-U.S.                         155      164        302      295
  Equity companies - ExxonMobil
   share
     United States                      0        0          0        0
     Non-U.S.                           7        0         12        4
  Worldwide                          $215     $210       $388     $384


                                                          ATTACHMENT V
                        EXXON MOBIL CORPORATION
                              NET INCOME

                                    $ Millions    Per Common Share

2001   -   First Quarter                5,000           0.72
       -   Second Quarter               4,460           0.66
       -   Third Quarter                3,180           0.46
       -   Fourth Quarter               2,680           0.39
               Year                   $15,320          $2.23

2002   -   First Quarter                2,090           0.30
       -   Second Quarter               2,640           0.40
       -   Third Quarter                2,640           0.39
       -   Fourth Quarter               4,090           0.60
               Year                   $11,460          $1.69

2003   -   First Quarter                7,040           1.05
       -   Second Quarter               4,170           0.63
       -   Third Quarter                3,650           0.55
       -   Fourth Quarter               6,650           1.01
               Year                   $21,510          $3.24

2004   -   First Quarter                5,440           0.83
       -   Second Quarter               5,790           0.89
       -   Third Quarter                5,680           0.88
       -   Fourth Quarter               8,420           1.31
               Year                   $25,330          $3.91

2005   -   First Quarter                7,860           1.23
       -   Second Quarter               7,640           1.21



    CONTACT: ExxonMobil
             Media Relations, 972/444-1109, 1108, 1107 and 1141

    SOURCE: Exxon Mobil Corporation