UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 10-Q

 

x   QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended September 30, 2013

or

 

¨  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

 

For the transition period from __________to________

 

Commission File Number 1-2256

 

EXXON MOBIL CORPORATION

(Exact name of registrant as specified in its charter)

 

NEW JERSEY

 

13-5409005

(State or other jurisdiction of

 

(I.R.S. Employer

incorporation or organization)

 

Identification Number

 

5959 LAS COLINAS BOULEVARD, IRVING, TEXAS 75039-2298

(Address of principal executive offices) (Zip Code)

 

(972) 444-1000

(Registrant's telephone number, including area code)

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes   No ¨ 

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).   Yes x  No ¨     

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer

x

Accelerated filer

¨

  

Non-accelerated filer

¨

 

Smaller reporting company

¨

 

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ¨    No x  

 

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.

 

Class

 

Outstanding as of September 30, 2013

Common stock, without par value

 

 4,368,513,787 

 


 

 

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2013

 

TABLE OF CONTENTS

 

 

PART I.  FINANCIAL INFORMATION

 

 

 

Item 1.       Financial Statements

 

 

     Condensed Consolidated Statement of Income

Three and nine months ended September 30, 2013 and 2012

 

3

     Condensed Consolidated Statement of Comprehensive Income

Three and nine months ended September 30, 2013 and 2012

 

4

     Condensed Consolidated Balance Sheet

As of September 30, 2013 and December 31, 2012

5

 

 

     Condensed Consolidated Statement of Cash Flows

          Nine months ended September 30, 2013 and 2012

 

6

     Condensed Consolidated Statement of Changes in Equity

          Nine months ended September 30, 2013 and 2012

 

7

     Notes to Condensed Consolidated Financial Statements

 

8

Item 2.       Management's Discussion and Analysis of Financial

                     Condition and Results of Operations

 

14

Item 3.       Quantitative and Qualitative Disclosures About Market Risk

 

21

Item 4.       Controls and Procedures

 

21

 

 

PART II.  OTHER INFORMATION

 

Item 1.       Legal Proceedings

 

22

Item 2.       Unregistered Sales of Equity Securities and Use of Proceeds

 

23

Item 6.       Exhibits

 

23

Signature

 

24

Index to Exhibits

 

25


2

 


 

 

 

PART I.  FINANCIAL INFORMATION

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Item 1.  Financial Statements

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

  

  

September 30,

  

  

September 30,

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

Revenues and other income

  

  

  

  

  

  

  

  

  

  

  

  

  

Sales and other operating revenue (1) 

  

  

108,390 

  

  

110,989 

  

  

314,818 

  

  

342,348 

  

Income from equity affiliates

  

  

3,444 

  

  

3,386 

  

  

10,960 

  

  

11,247 

  

Other income

  

  

538 

  

  

766 

  

  

1,617 

  

  

12,387 

  

  

Total revenues and other income

  

  

112,372 

  

  

115,141 

  

  

327,395 

  

  

365,982 

Costs and other deductions

  

  

  

  

  

  

  

  

  

  

  

  

  

Crude oil and product purchases

  

  

63,961 

  

  

64,615 

  

  

183,088 

  

  

200,209 

  

Production and manufacturing expenses

  

  

9,842 

  

  

9,128 

  

  

29,856 

  

  

28,765 

  

Selling, general and administrative expenses

  

  

3,150 

  

  

3,468 

  

  

9,536 

  

  

10,555 

  

Depreciation and depletion

  

  

4,287 

  

  

4,037 

  

  

12,802 

  

  

11,778 

  

Exploration expenses, including dry holes

  

  

486 

  

  

494 

  

  

1,385 

  

  

1,388 

  

Interest expense

  

  

52 

  

  

59 

  

  

161 

  

  

216 

  

Sales-based taxes (1) 

  

  

7,882 

  

  

8,137 

  

  

22,926 

  

  

24,657 

  

Other taxes and duties

  

  

8,523 

  

  

7,883 

  

  

24,646 

  

  

27,388 

  

  

Total costs and other deductions

  

  

98,183 

  

  

97,821 

  

  

284,400 

  

  

304,956 

Income before income taxes

  

  

14,189 

  

  

17,320 

  

  

42,995 

  

  

61,026 

  

Income taxes

  

  

6,120 

  

  

7,394 

  

  

18,190 

  

  

23,647 

Net income including noncontrolling interests

  

  

8,069 

  

  

9,926 

  

  

24,805 

  

  

37,379 

  

Net income attributable to noncontrolling interests

  

  

199 

  

  

356 

  

  

575 

  

  

2,449 

Net income attributable to ExxonMobil

  

  

7,870 

  

  

9,570 

  

  

24,230 

  

  

34,930 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share (dollars) 

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share - assuming dilution (dollars) 

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Dividends per common share (dollars) 

  

  

0.63 

  

  

0.57 

  

  

1.83 

  

  

1.61 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(1) Sales-based taxes included in sales and other

  

  

  

  

  

  

  

  

  

  

  

  

  

  

operating revenue

  

  

7,882 

  

  

8,137 

  

  

22,926 

  

  

24,657 

 

 

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


3

 


 

 

 

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

  

  

  

September 30,

  

  

September 30,

  

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Net income including noncontrolling interests

  

  

8,069 

  

  

9,926 

  

  

24,805 

  

  

37,379 

Other comprehensive income (net of income taxes)

  

  

  

  

  

  

  

  

  

  

  

  

  

Foreign exchange translation adjustment

  

  

1,229 

  

  

1,620 

  

  

(2,317)

  

  

1,298 

  

Adjustment for foreign exchange translation (gain)/loss

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

 included in net income

  

  

  

  

(119)

  

  

  

  

(4,354)

  

Postretirement benefits reserves adjustment

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(excluding amortization)

  

  

(222)

  

  

(224)

  

  

(58)

  

  

(404)

  

Amortization and settlement of postretirement benefits reserves

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

adjustment included in net periodic benefit costs

  

  

455 

  

  

454 

  

  

1,353 

  

  

2,083 

  

  

Total other comprehensive income

  

  

1,462 

  

  

1,731 

  

  

(1,022)

  

  

(1,377)

Comprehensive income including noncontrolling interests

  

  

9,531 

  

  

11,657 

  

  

23,783 

  

  

36,002 

  

Comprehensive income attributable to

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

noncontrolling interests

  

  

331 

  

  

541 

  

  

420 

  

  

1,062 

Comprehensive income attributable to ExxonMobil

  

  

9,200 

  

  

11,116 

  

  

23,363 

  

  

34,940 

 

 

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


4

 


 

 

 

EXXON MOBIL CORPORATION

  

CONDENSED CONSOLIDATED BALANCE SHEET

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Sept. 30,

  

  

Dec. 31,

  

  

  

  

  

  

  

2013 

  

  

2012 

  

Assets

  

  

  

  

  

  

  

  

Current assets

  

  

  

  

  

  

  

  

  

Cash and cash equivalents

  

  

5,310 

  

  

9,582 

  

  

  

Cash and cash equivalents – restricted

  

  

439 

  

  

341 

  

  

  

Notes and accounts receivable – net

  

  

33,230 

  

  

34,987 

  

  

  

Inventories

  

  

  

  

  

  

  

  

  

  

Crude oil, products and merchandise

  

  

12,829 

  

  

10,836 

  

  

  

  

Materials and supplies

  

  

4,038 

  

  

3,706 

  

  

  

Other current assets

  

  

5,457 

  

  

5,008 

  

  

  

  

Total current assets

  

  

61,303 

  

  

64,460 

  

  

Investments, advances and long-term receivables

  

  

37,048 

  

  

34,718 

  

  

Property, plant and equipment – net

  

  

240,981 

  

  

226,949 

  

  

Other assets, including intangibles – net

  

  

8,232 

  

  

7,668 

  

  

  

  

Total assets

  

  

347,564 

  

  

333,795 

  

  

  

  

  

  

  

  

  

  

  

  

Liabilities

  

  

  

  

  

  

  

  

Current liabilities

  

  

  

  

  

  

  

  

  

Notes and loans payable

  

  

13,889 

  

  

3,653 

  

  

  

Accounts payable and accrued liabilities

  

  

51,260 

  

  

50,728 

  

  

  

Income taxes payable

  

  

7,600 

  

  

9,758 

  

  

  

  

Total current liabilities

  

  

72,749 

  

  

64,139 

  

  

Long-term debt

  

  

7,404 

  

  

7,928 

  

  

Postretirement benefits reserves

  

  

25,319 

  

  

25,267 

  

  

Deferred income tax liabilities

  

  

39,506 

  

  

37,570 

  

  

Long-term obligations to equity companies

  

  

4,636 

  

  

3,555 

  

  

Other long-term obligations

  

  

22,472 

  

  

23,676 

  

  

  

  

Total liabilities

  

  

172,086 

  

  

162,135 

  

  

  

  

  

  

  

  

  

  

  

  

Commitments and contingencies (Note 2)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Equity

  

  

  

  

  

  

  

  

Common stock without par value

  

  

  

  

  

  

  

  

  

(9,000 million shares authorized,  8,019 million shares issued)

  

  

10,062 

  

  

9,653 

  

  

Earnings reinvested

  

  

381,832 

  

  

365,727 

  

  

Accumulated other comprehensive income

  

  

(13,051)

  

  

(12,184)

  

  

Common stock held in treasury

  

  

  

  

  

  

  

  

  

(3,650 million shares at Sept. 30, 2013 and

  

  

  

  

  

  

  

  

   3,517 million shares at Dec. 31, 2012)

  

  

(209,598)

  

  

(197,333)

  

  

  

  

ExxonMobil share of equity

  

  

169,245 

  

  

165,863 

  

  

Noncontrolling interests

  

  

6,233 

  

  

5,797 

  

  

  

  

Total equity

  

  

175,478 

  

  

171,660 

  

  

  

  

Total liabilities and equity

  

  

347,564 

  

  

333,795 

  

 

 

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


5

 


 

 

 

EXXON MOBIL CORPORATION

  

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Nine Months Ended

  

  

  

  

  

  

  

September 30,

  

  

  

  

  

  

  

2013 

  

  

2012 

  

Cash flows from operating activities

  

  

  

  

  

  

  

  

Net income including noncontrolling interests

  

  

24,805 

  

  

37,379 

  

  

Depreciation and depletion

  

  

12,802 

  

  

11,778 

  

  

Changes in operational working capital, excluding cash and debt

  

  

(2,676)

  

  

3,119 

  

  

Net (gain) on asset sales

  

  

(511)

  

  

(11,693)

  

  

All other items – net

  

  

286 

  

  

2,363 

  

  

  

  

Net cash provided by operating activities

  

  

34,706 

  

  

42,946 

  

  

  

  

  

  

  

  

  

  

  

  

Cash flows from investing activities

  

  

  

  

  

  

  

  

Additions to property, plant and equipment

  

  

(25,243)

  

  

(24,214)

  

  

Proceeds associated with sales of subsidiaries, property, plant and

  

  

  

  

  

  

  

  

  

equipment, and sales and returns of investments

  

  

871 

  

  

6,850 

  

  

Additional investments and advances

  

  

(3,644)

  

  

(409)

  

  

Other investing activities – net

  

  

527 

  

  

1,174 

  

  

  

  

Net cash used in investing activities

  

  

(27,489)

  

  

(16,599)

  

  

  

  

  

  

  

  

  

  

  

  

Cash flows from financing activities

  

  

  

  

  

  

  

  

Additions to long-term debt

  

  

206 

  

  

597 

  

  

Reductions in long-term debt

  

  

 - 

  

  

(15)

  

  

Additions/(reductions) in short-term debt – net

  

  

9,483 

  

  

(3,506)

  

  

Cash dividends to ExxonMobil shareholders

  

  

(8,125)

  

  

(7,500)

  

  

Cash dividends to noncontrolling interests

  

  

(225)

  

  

(287)

  

  

Changes in noncontrolling interests

  

  

(1)

  

  

198 

  

  

Tax benefits related to stock-based awards

  

  

14 

  

  

 - 

  

  

Common stock acquired

  

  

(12,696)

  

  

(15,814)

  

  

Common stock sold

  

  

46 

  

  

184 

  

  

  

  

Net cash used in financing activities

  

  

(11,298)

  

  

(26,143)

  

Effects of exchange rate changes on cash

  

  

(191)

  

  

187 

  

Increase/(decrease) in cash and cash equivalents

  

  

(4,272)

  

  

391 

  

Cash and cash equivalents at beginning of period

  

  

9,582 

  

  

12,664 

  

Cash and cash equivalents at end of period

  

  

5,310 

  

  

13,055 

  

  

  

  

  

  

  

  

  

  

  

  

Supplemental Disclosures

  

  

  

  

  

  

  

  

Income taxes paid

  

  

19,871 

  

  

17,895 

  

  

Cash interest paid

  

  

318 

  

  

387 

  

 

 

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


6

 


 

 

 

  

EXXON MOBIL CORPORATION

  

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

ExxonMobil Share of Equity

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Accumulated

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Other

  

Common

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Compre-

  

Stock

  

ExxonMobil

  

Non-

  

  

  

  

  

  

  

  

Common

  

Earnings

  

hensive

  

Held in

  

Share of

  

controlling

  

Total

  

  

  

  

  

Stock

  

Reinvested

  

Income

  

Treasury

  

Equity

  

Interests

  

Equity

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Balance as of December 31, 2011

  

  

 9,512 

  

  

 330,939 

  

  

 (9,123) 

  

  

 (176,932) 

  

  

 154,396 

  

  

 6,348 

  

  

 160,744 

  

Amortization of stock-based awards

  

  

 618 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 618 

  

  

 - 

  

  

 618 

  

Tax benefits related to stock-based

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

awards

  

  

 252 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 252 

  

  

 - 

  

  

 252 

  

Other

  

  

 (737) 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 (737) 

  

  

 (1,450) 

  

  

 (2,187) 

  

Net income for the period

  

  

 - 

  

  

 34,930 

  

  

 - 

  

  

 - 

  

  

 34,930 

  

  

 2,449 

  

  

 37,379 

  

Dividends – common shares

  

  

 - 

  

  

 (7,500) 

  

  

 - 

  

  

 - 

  

  

 (7,500) 

  

  

 (287) 

  

  

 (7,787) 

  

Other comprehensive income

  

  

 - 

  

  

 - 

  

  

 10 

  

  

 - 

  

  

 10 

  

  

 (1,387) 

  

  

 (1,377) 

  

Acquisitions, at cost

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 (15,814) 

  

  

 (15,814) 

  

  

 (31) 

  

  

 (15,845) 

  

Dispositions

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 558 

  

  

 558 

  

  

 - 

  

  

 558 

Balance as of September 30, 2012

  

  

 9,645 

  

  

 358,369 

  

  

 (9,113) 

  

  

 (192,188) 

  

  

 166,713 

  

  

 5,642 

  

  

 172,355 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Balance as of December 31, 2012

  

  

 9,653 

  

  

 365,727 

  

  

 (12,184) 

  

  

 (197,333) 

  

  

 165,863 

  

  

 5,797 

  

  

 171,660 

  

Amortization of stock-based awards

  

  

 593 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 593 

  

  

 - 

  

  

 593 

  

Tax benefits related to stock-based

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

awards

  

  

 200 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 200 

  

  

 - 

  

  

 200 

  

Other

  

  

 (384) 

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 (384) 

  

  

 242 

  

  

 (142) 

  

Net income for the period

  

  

 - 

  

  

 24,230 

  

  

 - 

  

  

 - 

  

  

 24,230 

  

  

 575 

  

  

 24,805 

  

Dividends – common shares

  

  

 - 

  

  

 (8,125) 

  

  

 - 

  

  

 - 

  

  

 (8,125) 

  

  

 (225) 

  

  

 (8,350) 

  

Other comprehensive income

  

  

 - 

  

  

 - 

  

  

 (867) 

  

  

 - 

  

  

 (867) 

  

  

 (155) 

  

  

 (1,022) 

  

Acquisitions, at cost

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 (12,696) 

  

  

 (12,696) 

  

  

 (1) 

  

  

 (12,697) 

  

Dispositions

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 431 

  

  

 431 

  

  

 - 

  

  

 431 

Balance as of September 30, 2013

  

  

 10,062 

  

  

 381,832 

  

  

 (13,051) 

  

  

 (209,598) 

  

  

 169,245 

  

  

 6,233 

  

  

 175,478 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Nine Months Ended September 30, 2013 

  

  

  

  

Nine Months Ended September 30, 2012 

  

  

  

  

  

  

  

  

Held in 

  

  

  

  

  

  

  

  

  

  

Held in 

  

  

  

  

Common Stock Share Activity

  

Issued 

  

Treasury 

  

Outstanding 

  

  

  

  

Issued 

  

Treasury 

  

Outstanding 

  

  

  

  

(millions of shares) 

  

  

  

  

(millions of shares) 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Balance as of December 31

  

  

 8,019 

  

  

 (3,517) 

  

  

 4,502 

  

  

  

  

  

 8,019 

  

  

 (3,285) 

  

  

 4,734 

  

  

  

Acquisitions

  

  

 - 

  

  

 (141) 

  

  

 (141) 

  

  

  

  

  

 - 

  

  

 (185) 

  

  

 (185) 

  

  

  

Dispositions

  

  

 - 

  

  

 8 

  

  

 8 

  

  

  

  

  

 - 

  

  

 10 

  

  

 10 

  

Balance as of September 30

  

  

 8,019 

  

  

 (3,650) 

  

  

 4,369 

  

  

  

  

  

 8,019 

  

  

 (3,460) 

  

  

 4,559 

 

 

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.


7

 


 

 

EXXON MOBIL CORPORATION

 

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

 

1.     Basis of Financial Statement Preparation

 

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2012 Annual Report on Form 10-K.  In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein.  All such adjustments are of a normal recurring nature.  Prior data has been reclassified in certain cases to conform to the current presentation basis.

 

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

 

2.     Litigation and Other Contingencies

 

Litigation

 

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

 

 

Other Contingencies

 

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2013, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

 

  

  

  

  

  

  

As of September 30, 2013

  

  

  

  

  

  

  

  

Equity

  

  

Other

  

  

  

  

  

  

  

  

  

  

  

Company

  

  

Third Party

  

  

  

  

  

  

  

  

  

  

  

Obligations (1) 

  

  

Obligations

  

  

Total

  

  

  

  

  

  

  

  

(millions of dollars)

  

  

  

Guarantees

  

  

  

  

  

  

  

  

  

  

  

  

  

Debt-related

  

  

3,002 

  

  

52 

  

  

3,054 

  

  

  

  

Other

  

  

3,572 

  

  

4,774 

  

  

8,346 

  

  

  

  

  

Total

  

  

6,574 

  

  

4,826 

  

  

11,400 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(1) ExxonMobil share

  

  

  

  

  

  

  

  

  

  

  


8

 


 

 

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. The Corporation's outstanding unconditional purchase obligations at September 30, 2013, were similar to those at the prior year-end period. Unconditional purchase obligations as defined by accounting standards are those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to secure financing for the facilities that will provide the contracted goods or services.

 

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations.  Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

 

In accordance with a nationalization decree issued by Venezuela’s president in February 2007, by May 1, 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. This Project had been operated and owned by ExxonMobil affiliates holding a 41.67 percent ownership interest in the Project.  The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project, with the stipulation that if ExxonMobil refused to accept the terms for the formation of the mixed enterprise within a specified period of time, the government would “directly assume the activities” carried out by the joint venture.  ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.  ExxonMobil’s remaining net book investment in Cerro Negro producing assets is about $750 million.

 

On September 6, 2007, affiliates of ExxonMobil filed a Request for Arbitration with the International Centre for Settlement of Investment Disputes (ICSID) invoking ICSID jurisdiction under Venezuela’s Investment Law and the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID Tribunal issued a decision on June 10, 2010, finding that it had jurisdiction to proceed on the basis of the Netherlands-Venezuela Bilateral Investment Treaty. The ICSID arbitration proceeding is continuing and a hearing on the merits was held in February 2012.  At this time, the net impact of these matters on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

 

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award.  The Contractors have appealed that judgment. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition. 


9

 


 

 

3.     Other Comprehensive Income Information

 

  

  

  

  

  

  

Cumulative

  

  

Post-

  

  

  

  

  

  

  

  

  

Foreign

  

  

retirement

  

  

  

  

  

  

  

  

  

Exchange

  

  

Benefits

  

  

  

  

ExxonMobil Share of Accumulated Other

  

  

Translation

  

  

Reserves

  

  

  

  

  

Comprehensive Income

  

  

Adjustment

  

  

Adjustment

  

  

Total

  

  

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Balance as of December 31, 2011

  

  

4,168 

  

  

(13,291)

  

  

(9,123)

  

Current period change excluding amounts reclassified

  

  

  

  

  

  

  

  

  

  

  

from accumulated other comprehensive income

  

  

1,159 

  

  

(351)

  

  

808 

  

Amounts reclassified from accumulated other

  

  

  

  

  

  

  

  

  

  

  

comprehensive income

  

  

(2,603)

  

  

1,805 

  

  

(798)

  

Total change in accumulated other comprehensive income

  

  

(1,444)

  

  

1,454 

  

  

10 

  

Balance as of September 30, 2012

  

  

2,724 

  

  

(11,837)

  

  

(9,113)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Balance as of December 31, 2012

  

  

2,410 

  

  

(14,594)

  

  

(12,184)

  

Current period change excluding amounts reclassified

  

  

  

  

  

  

  

  

  

  

  

from accumulated other comprehensive income

  

  

(2,118)

  

  

(52)

  

  

(2,170)

  

Amounts reclassified from accumulated other

  

  

  

  

  

  

  

  

  

  

  

comprehensive income

  

  

 - 

  

  

1,303 

  

  

1,303 

  

Total change in accumulated other comprehensive income

  

  

(2,118)

  

  

1,251 

  

  

(867)

  

Balance as of September 30, 2013

  

  

292 

  

  

(13,343)

  

  

(13,051)

 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

Amounts Reclassified Out of Accumulated Other

  

  

September 30,

  

  

September 30,

  

  

Comprehensive Income - Before-tax Income/(Expense)

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Foreign exchange translation gain/(loss) included in net income

  

  

  

  

  

  

  

  

  

  

  

  

(Statement of Income line: Other income)

 - 

  

  

119 

  

  

 - 

  

  

4,354 

  

Amortization and settlement of postretirement benefits reserves

  

  

  

  

  

  

  

  

  

  

  

  

adjustment included in net periodic benefit costs (1)

(648)

  

  

(654)

  

  

 (1,951) 

  

  

(3,215)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(1)     These accumulated other comprehensive income components are included in the computation of net periodic pension cost. (See Note 5 – Pension and Other Postretirement Benefits for additional details.)

 

 

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

Income Tax (Expense)/Credit For

  

  

September 30,

  

  

September 30,

  

  

Components of Other Comprehensive Income

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Foreign exchange translation adjustment

  

  

 (16) 

  

  

 (55) 

  

  

 100 

  

  

 (92) 

  

Postretirement benefits reserves adjustment

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Postretirement benefits reserves adjustment

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(excluding amortization)

  

  

 85 

  

  

 100 

  

  

 28 

  

  

 190 

  

  

Amortization and settlement of postretirement benefits reserves

  

  

  

  

  

  

  

  

  

  

  

  

  

  

adjustment included in net periodic benefit costs

  

  

 (193) 

  

  

 (200) 

  

  

 (598) 

  

  

 (1,132) 

  

Total

  

  

 (124) 

  

  

 (155) 

  

  

 (470) 

  

  

 (1,034) 


10

 


 

 

4.     Earnings Per Share

 

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

  

  

  

September 30,

  

  

September 30,

  

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share

  

  

  

  

  

  

  

  

  

  

  

  

  

Net income attributable to ExxonMobil (millions of dollars)

  

  

7,870 

  

  

9,570 

  

  

24,230 

  

  

34,930 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Weighted average number of common shares

  

  

  

  

  

  

  

  

  

  

  

  

  

  

outstanding (millions of shares)

  

  

4,395 

  

  

4,597 

  

  

4,438 

  

  

4,657 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share (dollars) 

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share - assuming dilution

  

  

  

  

  

  

  

  

  

  

  

  

  

Net income attributable to ExxonMobil (millions of dollars)

  

  

7,870 

  

  

9,570 

  

  

24,230 

  

  

34,930 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Weighted average number of common shares

  

  

  

  

  

  

  

  

  

  

  

  

  

  

outstanding (millions of shares)

  

  

4,395 

  

  

4,597 

  

  

4,438 

  

  

4,657 

  

  

  

    Effect of employee stock-based awards

  

  

 - 

  

  

 - 

  

  

 - 

  

  

 - 

  

Weighted average number of common shares

  

  

  

  

  

  

  

  

  

  

  

  

  

  

outstanding - assuming dilution

  

  

4,395 

  

  

4,597 

  

  

4,438 

  

  

4,657 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share - assuming dilution (dollars) 

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 


11

 


 

 

5.     Pension and Other Postretirement Benefits

 

  

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

  

  

  

  

September 30,

  

  

September 30,

  

  

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

  

(millions of dollars)

  

Pension Benefits - U.S.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Components of net benefit cost

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Service cost

  

  

206 

  

  

173 

  

  

581 

  

  

489 

  

  

  

Interest cost

  

  

188 

  

  

205 

  

  

562 

  

  

615 

  

  

  

Expected return on plan assets

  

  

(209)

  

  

(196)

  

  

(626)

  

  

(590)

  

  

  

Amortization of actuarial loss/(gain) and prior

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

service cost

  

  

165 

  

  

146 

  

  

493 

  

  

436 

  

  

  

Net pension enhancement and

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

curtailment/settlement cost

  

  

182 

  

  

123 

  

  

546 

  

  

369 

  

  

  

Net benefit cost

  

  

532 

  

  

451 

  

  

1,556 

  

  

1,319 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Pension Benefits - Non-U.S.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Components of net benefit cost

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Service cost

  

  

170 

  

  

156 

  

  

521 

  

  

490 

  

  

  

Interest cost

  

  

265 

  

  

279 

  

  

803 

  

  

859 

  

  

  

Expected return on plan assets

  

  

(278)

  

  

(269)

  

  

(841)

  

  

(831)

  

  

  

Amortization of actuarial loss/(gain) and prior

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

service cost

  

  

239 

  

  

228 

  

  

724 

  

  

719 

  

  

  

Net pension enhancement and

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

curtailment/settlement cost (1) 

  

  

  

  

109 

  

  

  

  

1,538 

  

  

  

Net benefit cost

  

  

397 

  

  

503 

  

  

1,209 

  

  

2,775 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Other Postretirement Benefits

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Components of net benefit cost

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Service cost

  

  

44 

  

  

31 

  

  

123 

  

  

100 

  

  

  

Interest cost

  

  

87 

  

  

89 

  

  

264 

  

  

293 

  

  

  

Expected return on plan assets

  

  

(10)

  

  

(9)

  

  

(30)

  

  

(30)

  

  

  

Amortization of actuarial loss/(gain) and prior

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

service cost

  

  

61 

  

  

48 

  

  

186 

  

  

156 

  

  

  

Net benefit cost

  

  

182 

  

  

159 

  

  

543 

  

  

519 

 

(1)     Non-U.S. net pension enhancement and curtailment/settlement cost for the nine months ended September 30, 2012, includes $1,420 million (on a consolidated‑company, before‑tax basis) of accumulated other comprehensive income for the postretirement benefit reserves adjustment that was recycled into earnings and included in the Japan restructuring gain reported in “Other income”.

6.     Financial Instruments

 

The fair value of financial instruments is determined by reference to observable market data and other valuation techniques as appropriate.  The only category of financial instruments where the difference between fair value and recorded book value is notable is long-term debt.  The estimated fair value of total long-term debt, excluding capitalized lease obligations, was $7,318 million at September 30, 2013, and $8,027 million at December 31, 2012, as compared to recorded book values of $7,014 million at September 30, 2013, and $7,497 million at December 31, 2012. 

 

The fair value of long-term debt by hierarchy level at September 30, 2013, is: Level 1 $5,984 million; Level 2 $1,270 million; and Level 3 $64 million.  Level 1 represents quoted prices in active markets.  Level 2 includes debt whose fair value is based upon a publicly available index.  Level 3 involves using internal data augmented by relevant market indicators if available.

 

During the third quarter, the Corporation established a $5.0 billion committed line of credit in the U.S., and reduced its previous U.S. line of credit from $2.7 billion at December 31, 2012 to $0.6 billion at September 30, 2013.  The committed line of credit was unused as of September 30, 2013.


12

 


 

 

7.     Disclosures about Segments and Related Information

 

  

  

  

  

  

  

Three Months Ended

  

  

Nine Months Ended

  

  

  

  

  

  

September 30,

  

  

September 30,

  

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

(millions of dollars)

  

EARNINGS AFTER INCOME TAX

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Upstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

1,050 

  

  

633 

  

  

3,005 

  

  

2,321 

  

  

  

Non-U.S.

  

  

5,663 

  

  

5,340 

  

  

17,050 

  

  

19,812 

  

  

Downstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

315 

  

  

1,441 

  

  

1,602 

  

  

2,878 

  

  

  

Non-U.S. (1)

  

  

277 

  

  

1,749 

  

  

931 

  

  

8,544 

  

  

Chemical

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

680 

  

  

565 

  

  

1,947 

  

  

1,492 

  

  

  

Non-U.S. (1)

  

  

345 

  

  

225 

  

  

971 

  

  

1,448 

  

  

All other

  

  

(460)

  

  

(383)

  

  

(1,276)

  

  

(1,565)

  

  

Corporate total

  

  

7,870 

  

  

9,570 

  

  

24,230 

  

  

34,930 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(1)

Nine months ended September 30, 2012, includes the gain associated with the Japan restructuring of $5.3 billion

  

  

 in the non-U.S. Downstream and $0.6 billion in the non-U.S. Chemical segments.

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

SALES AND OTHER OPERATING REVENUE (2)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Upstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

3,416 

  

  

2,718 

  

  

9,516 

  

  

8,108 

  

  

  

Non-U.S.

  

  

5,829 

  

  

6,755 

  

  

18,931 

  

  

21,319 

  

  

Downstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

32,032 

  

  

31,621 

  

  

92,995 

  

  

92,991 

  

  

  

Non-U.S.

  

  

57,179 

  

  

60,763 

  

  

164,066 

  

  

190,590 

  

  

Chemical

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

3,873 

  

  

3,493 

  

  

11,479 

  

  

11,167 

  

  

  

Non-U.S.

  

  

6,058 

  

  

5,634 

  

  

17,813 

  

  

18,157 

  

  

All other

  

  

  

  

  

  

18 

  

  

16 

  

  

Corporate total

  

  

108,390 

  

  

110,989 

  

  

314,818 

  

  

342,348 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

(2)

Includes sales-based taxes

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

INTERSEGMENT REVENUE

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Upstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

2,015 

  

  

1,935 

  

  

6,324 

  

  

6,538 

  

  

  

Non-U.S.

  

  

12,505 

  

  

11,105 

  

  

35,097 

  

  

35,171 

  

  

Downstream

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

5,056 

  

  

5,422 

  

  

15,312 

  

  

16,214 

  

  

  

Non-U.S.

  

  

14,099 

  

  

15,309 

  

  

39,263 

  

  

47,215 

  

  

Chemical

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

2,971 

  

  

3,301 

  

  

9,157 

  

  

9,429 

  

  

  

Non-U.S.

  

  

2,352 

  

  

2,292 

  

  

6,407 

  

  

7,565 

  

  

All other

  

  

66 

  

  

75 

  

  

204 

  

  

212 


13

 


 

 

EXXON MOBIL CORPORATION

 

Item 2.       Management's Discussion and Analysis of Financial Condition and Results of Operations

 

FUNCTIONAL EARNINGS SUMMARY

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Third Quarter

  

  

First Nine Months

Earnings (U.S. GAAP)

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

(millions of dollars)

Upstream

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

1,050 

  

  

633 

  

  

3,005 

  

  

2,321 

  

Non-U.S.

  

  

5,663 

  

  

5,340 

  

  

17,050 

  

  

19,812 

Downstream

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

315 

  

  

1,441 

  

  

1,602 

  

  

2,878 

  

Non-U.S.

  

  

277 

  

  

1,749 

  

  

931 

  

  

8,544 

Chemical

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

680 

  

  

565 

  

  

1,947 

  

  

1,492 

  

Non-U.S.

  

  

345 

  

  

225 

  

  

971 

  

  

1,448 

Corporate and financing

  

  

(460)

  

  

(383)

  

  

(1,276)

  

  

(1,565)

  

Net Income attributable to ExxonMobil (U.S. GAAP)

  

  

7,870 

  

  

9,570 

  

  

24,230 

  

  

34,930 

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share (dollars)

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 

  

  

  

  

  

  

  

  

  

  

  

  

  

Earnings per common share - assuming dilution (dollars) 

  

  

1.79 

  

  

2.09 

  

  

5.46 

  

  

7.50 

 

References in this discussion to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement.  Unless otherwise indicated, references to earnings, Upstream, Downstream, Chemical and Corporate and Financing segment earnings, and earnings per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

 

 

REVIEW OF THIRD QUARTER 2013 RESULTS

 

ExxonMobil’s results for the third quarter of 2013 reflect our continued progress across a diverse set of profitable growth opportunities, which positions us well to deliver shareholder value.  We maintain a long-term perspective on our business with a relentless focus on operational excellence and disciplined investing.

 

Third quarter earnings were $7.9 billion, down 18 percent from the third quarter of 2012.  Production of oil and natural gas increased from a year earlier as new projects were brought on line and maintenance-related downtime decreased.  Significantly weaker refining margins as a result of increased industry capacity negatively impacted ExxonMobil’s Downstream earnings.

 

In the third quarter, capital and exploration expenditures were $10.5 billion, in line with anticipated spending plans.

 

The Corporation distributed $5.8 billion to shareholders in the third quarter through dividends and share purchases to reduce shares outstanding.

 

 

 

 

Earnings in the first nine months of 2013 of $24,230 million decreased $10,700 million from 2012.

 

Earnings per share – assuming dilution for the first nine months of 2013 decreased 27 percent to $5.46.


14

 


 

 

 

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

(millions of dollars)

Upstream earnings

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

1,050 

  

  

633 

  

  

3,005 

  

  

2,321 

  

Non-U.S.

  

  

5,663 

  

  

5,340 

  

  

17,050 

  

  

19,812 

  

  

Total

  

  

6,713 

  

  

5,973 

  

  

20,055 

  

  

22,133 

 

Upstream earnings were $6,713 million in the third quarter of 2013, up $740 million from the third quarter of 2012.  Higher liquids and natural gas realizations increased earnings by $440 million.  Production volume and mix effects increased earnings by $20 million.  All other items, including favorable tax and foreign exchange impacts, partly offset by higher operating expenses, increased earnings by $280 million.

 

On an oil-equivalent basis, production increased 1.5 percent from the third quarter of 2012.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production increased 2.7 percent.

 

Liquids production totaled 2,199 kbd (thousands of barrels per day), up 83 kbd from the third quarter of 2012.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 5.3 percent, as lower downtime and project ramp-up in Canada and Nigeria were partially offset by field decline.

 

Third quarter natural gas production was 10,914 mcfd (millions of cubic feet per day), down 147 mcfd from 2012.  Excluding the impacts of entitlement volumes and divestments, natural gas production was down 0.3 percent, as field decline was mostly offset by lower downtime and project ramp-up.

 

Earnings from U.S. Upstream operations were $1,050 million, $417 million higher than the third quarter of 2012.  Non‑U.S. Upstream earnings were $5,663 million, up $323 million from the prior year.

 

 

 

 

Upstream earnings in the first nine months of 2013 were $20,055 million, down $2,078 million from 2012.  Higher gas realizations, partially offset by lower liquids realizations, increased earnings by $350 million.  Lower sales volumes decreased earnings by $400 million.  All other items, including lower net gains from asset sales, mainly in Angola, and higher expenses, reduced earnings by $2.0 billion.

 

On an oil-equivalent basis, production was down 1.4 percent compared to the same period in 2012.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was up 0.4 percent.

 

Liquids production of 2,192 kbd increased 13 kbd compared with 2012.  Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was up 1.3 percent, as project ramp-up and lower downtime were partially offset by field decline.

 

Natural gas production of 11,818 mcfd decreased 431 mcfd from 2012.  Excluding the impacts of entitlement volumes and divestments, natural gas production was down 0.8 percent, as field decline was partially offset by lower downtime, higher demand, and project ramp-up.

 

Earnings in the first nine months of 2013 from U.S. Upstream operations were $3,005 million, up $684 million from 2012.  Earnings outside the U.S. were $17,050 million, down $2,762 million from the prior year.


15

 


 

 

 

  

  

  

  

Third Quarter

  

  

First Nine Months

Upstream additional information

  

  

  

(thousands of barrels daily)

  

Volumes reconciliation (Oil-equivalent production)(1) 

  

  

  

  

  

  

  

  

  

2012 

  

  

  

3,960 

  

  

  

  

4,220 

  

  

Entitlements - Net Interest

  

  

  

(13)

  

  

  

  

(51)

  

  

Entitlements - Price / Spend

  

  

  

(8)

  

  

  

  

  

  

Quotas

  

  

  

  

  

  

  

  

  

Divestments

  

  

  

(28)

  

  

  

  

(26)

  

  

Net growth

  

  

  

107 

  

  

  

  

15 

  

2013 

  

  

  

4,018 

  

  

  

  

4,162 

  

  

  

  

  

  

  

  

  

  

  

  

  

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

  

  

 

Listed below are descriptions of ExxonMobil’s entitlement volume effects.  These descriptions are provided to facilitate understanding of the terms.

 

Production Sharing Contract (PSC) Net Interest Reductions are contractual reductions in ExxonMobil’s share of production volumes covered by PSCs. These reductions typically occur when cumulative investment returns or production volumes achieve thresholds as specified in the PSCs. Once a net interest reduction has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.

 

Price and Spend Impacts on Volumes are fluctuations in ExxonMobil’s share of production volumes caused by changes in oil and gas prices or spending levels from one period to another.  For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs. According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil. These effects generally vary from period to period with field spending patterns or market prices for crude oil or natural gas.

 

 

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

(millions of dollars)

Downstream earnings

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

315 

  

  

1,441 

  

  

1,602 

  

  

2,878 

  

Non-U.S.

  

  

277 

  

  

1,749 

  

  

931 

  

  

8,544 

  

  

Total

  

  

592 

  

  

3,190 

  

  

2,533 

  

  

11,422 

 

Third quarter 2013 Downstream earnings were $592 million, down $2,598 million from the third quarter of 2012.  Weaker margins, mainly in refining, decreased earnings by $2.4 billion.  Volume and mix effects increased earnings by $150 million.  All other items, including lower gains on asset sales and foreign exchange impacts, decreased earnings by $380 million.  Petroleum product sales of 6,031 kbd were 74 kbd lower than last year's third quarter reflecting divestment-related impacts.

Earnings from the U.S. Downstream were $315 million, down $1,126 million from the third quarter of 2012.  Non‑U.S. Downstream earnings of $277 million were $1,472 million lower than last year. 

 

 

 

 

Downstream earnings in the first nine months of 2013 of $2,533 million decreased $8,889 million from 2012 driven by the absence of the $5.3 billion gain associated with the Japan restructuring.  Lower margins, mainly refining, decreased earnings by $2.2 billion.  Volume and mix effects decreased earnings by $430 million.  All other items, including higher operating expenses, unfavorable foreign exchange impacts, and lower divestments, decreased earnings by $970 million.  Petroleum product sales of 5,851 kbd decreased 346 kbd from 2012.

 

U.S. Downstream earnings in the first nine months of 2013 were $1,602 million, down $1,276 million from 2012.  Non‑U.S. Downstream earnings were $931 million, a decrease of $7,613 million from last year.


16

 


 

 

 

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

(millions of dollars)

Chemical earnings

  

  

  

  

  

  

  

  

  

  

  

  

  

United States

  

  

680 

  

  

565 

  

  

1,947 

  

  

1,492 

  

Non-U.S.

  

  

345 

  

  

225 

  

  

971 

  

  

1,448 

  

  

Total

  

  

1,025 

  

  

790 

  

  

2,918 

  

  

2,940 

 

Third quarter 2013 Chemical earnings of $1,025 million were $235 million higher than the third quarter of 2012 due primarily to higher commodity margins.  Third quarter prime product sales of 6,245 kt (thousands of metric tons) were 298 kt higher than last year's third quarter.

 

 

 

 

Chemical earnings in the first nine months of 2013 of $2,918 million were $22 million lower than 2012.  The absence of the gain associated with the Japan restructuring decreased earnings by $630 million.  Higher margins increased earnings by $520 million, while volume and mix effects increased earnings by $80 million.  All other items increased earnings by $10 million.  Prime product sales of 17,986 kt were down 270 kt from 2012.

 

 

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

Corporate and financing earnings

  

  

(460)

  

  

(383)

  

  

(1,276)

  

  

(1,565)

 

Corporate and financing expenses of $460 million in the third quarter of 2013 were up $77 million from the third quarter of 2012, reflecting unfavorable tax impacts.

 

 

 

 

Corporate and financing expenses were $1,276 million in the first nine months of 2013, down $289 million from 2012, as favorable tax impacts were partially offset by the absence of the Japan restructuring gain.


17

 


 

 

 

LIQUIDITY AND CAPITAL RESOURCES

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

(millions of dollars)

Net cash provided by/(used in)

  

  

  

  

  

  

  

  

  

  

  

  

  

Operating activities

  

  

  

  

  

  

  

  

34,706 

  

  

42,946 

  

Investing activities

  

  

  

  

  

  

  

  

(27,489)

  

  

(16,599)

  

Financing activities

  

  

  

  

  

  

  

  

(11,298)

  

  

(26,143)

Effect of exchange rate changes

  

  

  

  

  

  

  

  

(191)

  

  

187 

Increase/(decrease) in cash and cash equivalents

  

  

  

  

  

  

  

  

(4,272)

  

  

391 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Cash and cash equivalents (at end of period)

  

  

  

  

  

  

  

  

5,310 

  

  

13,055 

Cash and cash equivalents – restricted (at end of period)

  

  

  

  

  

  

  

  

439 

  

  

206 

Total cash and cash equivalents (at end of period)

  

  

  

  

  

  

  

  

5,749 

  

  

13,261 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Cash flow from operations and asset sales

  

  

  

  

  

  

  

  

  

  

  

  

  

Net cash provided by operating activities (U.S. GAAP)

  

  

 13,431 

  

  

 13,442 

  

  

34,706 

  

  

42,946 

  

Proceeds associated with sales of subsidiaries, property,

  

  

  

  

  

  

  

  

  

  

  

  

  

  

plant & equipment, and sales and returns of investments

  

  

 206 

  

  

 607 

  

  

871 

  

  

6,850 

  

Cash flow from operations and asset sales

  

  

 13,637 

  

  

 14,049 

  

  

35,577 

  

  

49,796 

 

Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

  

Cash provided by operating activities totaled $34.7 billion for the first nine months of 2013, $8.2 billion lower than 2012. The major source of funds was net income including noncontrolling interests of $24.8 billion, a decrease of $12.6 billion from the prior year period.  The adjustment for the noncash provision of $12.8 billion for depreciation and depletion increased by $1.0 billion.  Changes in operational working capital decreased cash flows by $2.7 billion in 2013, primarily due to an increase in inventory.  Changes in operational working capital increased cash flows by $3.1 billion in 2012 primarily due to changes in payable balances partially offset by an increase in inventory.  Net gain on asset sales was $0.5 billion in 2013 and $11.7 billion in 2012.  For additional details, see the Condensed Consolidated Statement of Cash Flows on page 6.

 

Investing activities for the first nine months of 2013 used net cash of $27.5 billion, an increase of $10.9 billion compared to the prior year.  Spending for additions to property, plant and equipment of $25.2 billion was $1.0 billion higher than 2012.  Proceeds from asset sales of $0.9 billion decreased $6.0 billion.  Additional investment and advances increased $3.2 billion to $3.6 billion reflecting the impact of the acquisition of Celtic Exploration Ltd.

 

Cash flow from operations and asset sales in the first nine months of 2013 of $35.6 billion, including asset sales of $0.9 billion, decreased $14.2 billion.  This reflects the change in cash flows from operating activities described above and the lower proceeds from asset sales, driven by the 2012 Japan restructuring. 

 

Net cash used in financing activities of $11.3 billion in the first nine months of 2013 was $14.8 billion lower than 2012, reflecting short-term debt issuance in 2013, short-term debt reduction in 2012, and a lower level of purchases of shares of ExxonMobil stock in 2013. 

 

During the third quarter of 2013, Exxon Mobil Corporation purchased 34 million shares of its common stock for the treasury at a gross cost of $3.0 billion.  These purchases were to reduce the number of shares outstanding.  Shares outstanding decreased from 4,402 million at the end of the second quarter to 4,369 million at the end of the third quarter 2013.  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.


18

 


 

 

The Corporation distributed to shareholders a total of $5.8 billion in the third quarter of 2013 through dividends and share purchases to reduce shares outstanding.

 

Total cash and cash equivalents of $5.7 billion at the end of the third quarter of 2013 compared to $13.3 billion at the end of the third quarter of 2012.

 

Total debt of $21.3 billion compared to $11.6 billion at year-end 2012.  The Corporation's debt to total capital ratio was 10.8 percent at the end of the third quarter of 2013 compared to 6.3 percent at year-end 2012. 

 

Although the Corporation issues long-term debt from time to time, the Corporation currently expects to cover its near-term financial requirements predominantly with internally generated funds, supplemented by its revolving commercial paper program.  During the third quarter, the Corporation established a $5.0 billion committed line of credit in the U.S., and reduced its previous U.S. line of credit from $2.7 billion at December 31, 2012 to $0.6 billion at September 30, 2013.  The committed line of credit was unused as of September 30, 2013.

 

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.  Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses.  Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time.  Key criteria for evaluating acquisitions include potential for future growth and attractive current valuations.  Acquisitions may be made with cash, shares of the Corporation’s common stock, or both. 

 

Litigation and other contingencies are discussed in Note 2 to the unaudited condensed consolidated financial statements.

 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

TAXES

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Income taxes

  

  

6,120 

  

  

7,394 

  

  

18,190 

  

  

23,647 

  

  

Effective income tax rate

  

  

48 

%

  

47 

%

  

48 

%

  

43 

%

Sales-based taxes

  

  

7,882 

  

  

8,137 

  

  

22,926 

  

  

24,657 

  

All other taxes and duties

  

  

9,252 

  

  

8,652 

  

  

27,019 

  

  

29,891 

  

  

  

Total

  

  

23,254 

  

  

24,183 

  

  

68,135 

  

  

78,195 

  

 

Income, sales-based and all other taxes and duties totaled $23.3 billion for the third quarter of 2013, a decrease of $0.9 billion from 2012.  Income tax expense decreased by $1.3 billion to $6.1 billion with the impact of lower earnings partially offset by the higher effective tax rate.  The effective income tax rate was 48 percent compared to 47 percent in the prior year period.  Sales-based taxes and all other taxes and duties increased by $0.3 billion to $17.1 billion.

 

 

 

 

Income, sales-based and all other taxes and duties totaled $68.1 billion for the first nine months of 2013, a decrease of $10.1 billion from 2012.  Income tax expense decreased by $5.5 billion to $18.2 billion with the impact of lower earnings partially offset by the higher effective tax rate.  The effective income tax rate was 48 percent compared to 43 percent in the prior year due to the absence of the lower effective tax rate on divestments.  Sales-based and all other taxes decreased by $4.6 billion reflecting the Japan restructuring.


19

 


 

 

 

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

CAPITAL AND EXPLORATION EXPENDITURES

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Third Quarter

  

  

First Nine Months

  

  

  

  

  

2013 

  

  

2012 

  

  

2013 

  

  

2012 

  

  

  

  

(millions of dollars)

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Upstream (including exploration expenses)

  

  

9,475 

  

  

8,248 

  

  

29,599 

  

  

24,720 

  

Downstream

  

  

556 

  

  

583 

  

  

1,740 

  

  

1,591 

  

Chemical

  

  

509 

  

  

350 

  

  

1,215 

  

  

1,031 

  

Other

  

  

  

  

  

  

11 

  

  

14 

  

  

Total

  

  

10,546 

  

  

9,183 

  

  

32,565 

  

  

27,356 

  

 

Capital and exploration expenditures in the third quarter of 2013 were $10.5 billion, up 15 percent from third quarter of 2012, in line with anticipated spending plans.

 

 

 

 

Capital and exploration expenditures in the first nine months of 2013 were $32.6 billion, up 19 percent from the first nine months of 2012, in line with anticipated spending plans and included $3.1 billion for the acquisition of Celtic Exploration Ltd.  The Corporation anticipates an investment profile of about $38 billion per year for the next several years. Actual spending could vary depending on the progress of individual projects and property acquisitions.


20

 


 

 

FORWARD-LOOKING STATEMENTS

 

Statements relating to future plans, projections, events or conditions are forward-looking statements.  Actual results, including project plans, costs, timing, and capacities; capital and exploration expenditures; resource recoveries; and share purchase levels, could differ materially due to factors including: changes in oil or gas prices or other market or economic conditions affecting the oil and gas industry, including the scope and duration of economic recessions; the outcome of exploration and development efforts; changes in law or government regulation, including tax and environmental requirements; the outcome of commercial negotiations; changes in technical or operating conditions; and other factors discussed under the heading "Factors Affecting Future Results" in the “Investors” section of our website and in Item 1A of ExxonMobil's 2012 Form 10-K.  We assume no duty to update these statements as of any future date.

 

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

 

Item 3.  Quantitative and Qualitative Disclosures About Market Risk

 

Information about market risks for the nine months ended September 30, 2013, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2012.

 

Item 4.  Controls and Procedures

 

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, Principal Financial Officer and Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of September 30, 2013.  Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.  There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.


21

 


 

 

PART II.  OTHER INFORMATION

 

Item 1.  Legal Proceedings

 

On September 10, 2013, the Pennsylvania Office of Attorney General filed eight criminal charges against XTO Energy Inc. (XTO) related to the discharge of fluids at the Marquardt Well Site of XTO in Penn Township, Pennsylvania, a matter which the Corporation previously reported in its 2010 Form 10-K and its Forms 10-Q for the third quarter of 2012 and the second quarter of 2013.  The charges included five counts of unlawful conduct under the Clean Streams Act and three counts under the Solid Waste Management Act.  XTO believes criminal charges are unwarranted and plans to vigorously challenge the charges.

 

On August 23, 2013, the Louisiana Department of Environmental Quality (LDEQ) accepted a settlement proposal of ExxonMobil Refining and Supply Company and ExxonMobil Chemical Company, both divisions of Exxon Mobil Corporation (the “Corporation”), resolving a number of alleged exceedances of permit and regulatory limits for certain compounds reported from January 1, 2008, to March 31, 2013, as well as Consolidated Compliance Orders & Notices of Potential Penalties issued by LDEQ from 2008 through 2012 to the Baton Rouge Refinery (BRRF), the Baton Rouge Chemical Plant, the Baton Rouge Anchorage Tank Farm and the Baton Rouge Resins Finishing Plant, including the BRRF matter previously reported in the Corporation’s Form 10-Q for the third quarter of 2009.  The Corporation had previously self-disclosed these matters to the LDEQ along with a proposed number of specific corrective action steps.  The settlement terms include payment of a $300,000 penalty, an agreement to complete certain on-site improvement projects valued at $1,000,000, Beneficial Environmental Projects valued at $1,029,000 and a Stipulated Penalty Agreement to address any future environmental non-compliance. The settlement will be the subject of public notice and comment for 45 days before becoming final.

 

On October 2, 2013, ExxonMobil Oil Corporation’s Joliet Refinery in Channahon, Illinois, received a Notice from the United States Environmental Protection Agency (USEPA) alleging that the Refinery was out of compliance with several requirements of a Consent Decree entered into with the USEPA (United States v. Exxon Mobil Corp., CA No. 05-C-5809 (N.D. Ill.)) in December 2005 and reported in the Corporation’s Form 10-Q for the third quarter of 2005.  The USEPA alleges violations of the requirements for continuous emissions and opacity monitoring, leak detection and repair requirements, and prohibitions against using emission reduction credits from Consent Decree projects in permitting.  USEPA has indicated that it plans to propose penalties up to $1,242,500. ExxonMobil will contest the proposed penalties.

 

On October 3, 2013, ExxonMobil Oil Corporation’s Joliet Refinery received a Notice and Finding of Violation from the USEPA alleging that Joliet Refinery flares were modified and thereby triggered New Source Performance Standards (NSPS) requirements for refineries, and that the flares do not comply with federal and state combustion efficiency standards.  The Notice also alleged that certain tanks at the Refinery were modified and triggered NSPS for tanks, that Prevention of Significant Deterioration Program permitting requirements were not met for projects involving the Refinery’s Fluid Catalytic Cracking Unit, and other leak detection and repair violations.  Penalties sought will likely exceed $100,000.

 

In July 2013, ExxonMobil Oil Corporation’s Torrance Refinery in California confirmed and then self-reported that it may have failed to measure and report flow from parallel flare lines at the Refinery to the South Coast Air Quality Management District (AQMD) as required by AQMD Rule 1118.  The Refinery is currently working with the AQMD to resolve the matter, but it is anticipated that a civil penalty in excess of $100,000 will be assessed.

 

Regarding the Notice of Enforcement and Proposed Agreed Order issued on January 30, 2013, by the Texas Commission on Environmental Quality (TCEQ) concerning three emission events in May and June 2012 at ExxonMobil Oil Corporation’s Beaumont Refinery previously reported in the Corporation’s Form 10-Q for the first quarter of 2013, the parties have agreed upon a full settlement of the enforcement action and a penalty of $126,250, which will become final after endorsement by the TCEQ at an upcoming agenda meeting.

 

In the enforcement action filed by the United States, on behalf of the USEPA, and the State of Arkansas, on behalf of the Arkansas Department of Environmental Quality (ADEQ), against ExxonMobil Pipeline Company (EMPCo) related to the discharge of crude oil from the Pegasus Pipeline in Mayflower, Faulkner County, Arkansas, previously reported in the Corporation’s Forms 10-Q for the first and second quarters of 2013, the court has set a trial date of February 15, 2015.

 

On September 16, 2013, the United States Department of Justice (USDOJ), based on a referral from the USEPA, advised that a civil enforcement investigation had been opened into the discharge of crude oil from the EMPCo’s North Line Pipeline near Torbert in Pointe Coupee Parish, Louisiana, on April 28, 2012.  The USDOJ is investigating whether the discharge of oil contaminated waterways resulting in violations of the Clean Water Act.  Penalties sought likely will be in excess of $100,000. 

 

Refer to the relevant portions of Note 2 of this Quarterly Report on Form 10-Q for further information on legal proceedings.


22

 


 

 

 

Item 2.  Unregistered Sales of Equity Securities and Use of Proceeds

  

  

  

  

  

  

  

  

  

  

  

  

Issuer Purchase of Equity Securities for Quarter Ended September 30, 2013

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

  

Total Number of

  

Maximum Number

  

  

  

  

  

  

  

  

Shares Purchased

  

of Shares that May

  

  

  

  

Total Number

  

Average

  

as Part of Publicly

  

Yet Be Purchased

  

  

  

  

of Shares

  

Price Paid

  

Announced Plans

  

Under the Plans or

Period

  

  

Purchased

  

per Share

  

or Programs

  

Programs

  

  

  

  

  

  

  

  

  

  

  

July 2013

  

13,277,502 

  

$93.24 

  

13,277,502 

  

  

August 2013

  

10,625,871 

  

$88.98 

  

10,625,871 

  

  

September 2013

  

9,787,418 

  

$87.98 

  

9,787,418 

  

  

  

Total

  

  

33,690,791 

  

$90.37 

  

33,690,791 

  

(See Note 1)

 

Note 1 - On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding.  The announcement did not specify an amount or expiration date.  The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases.  In its most recent earnings release dated October 31, 2013, the Corporation stated that fourth quarter 2013 share purchases to reduce shares outstanding are anticipated to equal $3 billion.  Purchases may be made in both the open market and through negotiated transactions, and purchases may be increased, decreased or discontinued at any time without prior notice.

 

 

Item 6.  Exhibits

 

Exhibit

 

Description

 

 

 

31.1

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.

31.2

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.

31.3

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.

32.1

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.

32.2

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.

32.3

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.

101

 

Interactive Data Files.


23

 


 

 

EXXON MOBIL CORPORATION

 

SIGNATURE

 

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

 

 

 

EXXON MOBIL CORPORATION

 

Date: November 5, 2013 

By:

/s/  PATRICK T. MULVA

 

 

Patrick T. Mulva

 

 

Vice President, Controller and

 

 

Principal Accounting Officer

 

 

 


24

 


 

 

INDEX TO EXHIBITS

 

 

Exhibit

 

Description

 

 

 

31.1

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.

31.2

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.

31.3

 

Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.

32.1

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.

32.2

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.

32.3

 

Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.

101

 

Interactive Data Files.

 


25