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Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis

Review

Reference Code: GDGE1203FSA Publication Date: OCT 2010

5959 Las Colinas Boulevard Phone +1 972 4441000 Revenue 310,586 (million USD)
Irving, TX Fax +1 972 4441348 Net Profit 19,280 (million USD)
75039 Website www.exxonmobil.com Employees 80,700
United States Exchange XOM [New York Stock Exchange] Industry Energy and Utilities

Company Overview
Exxon Mobil Corporation (ExxonMobil) is an integrated oil and gas company. The company is engaged in exploration and
production of oil and gas; refining, transportation and marketing of oil and natural gas; and manufacture and sale of petroleum
products. ExxonMobil is also involved in the commodity petrochemicals and holds interests in electricity generation facilities. It
operates in more than 200 countries across the globe with a number of brand names including ExxonMobil, Exxon, Esso and
Mobil. The company is headquartered in Irving, the US.

Key Executives SWOT Analysis


Name Title Exxon Mobil Corporation, SWOT Analysis
Rex W. Tillerson Chairman Strengths Weaknesses

Donald D. Humphreys Treasurer


Integrated Refining and Declining Market Share in
Michael J. Boskin Director Chemical Operations Sector
William W. George Director
Wide Geographic Spread Low Focus on Profitability
Kenneth C. Frazier Director
Source: Annual Report, Company Website, Primary and Secondary Research,
GlobalData

Share Data Opportunities Threats

Exxon Mobil Corporation Demand for Hydrocarbons in Natural Disasters


Share Price (USD) as on 06-Oct-2010 63.90 the Long Run
3.98 Downturn in the Refining
EPS (USD)
Expansion through Inorganic Sector
Market Cap (million USD) 325,570 Growth
Enterprise Value (million USD) 337,945

Shares Outstanding (million) 5,092


Source: Annual Report, Company Website, Primary and Secondary Research, Source: Annual Report, Company Website, Primary and Secondary
Research, GlobalData
GlobalData

Financial Performance Recent Developments


Oct 05, 2010 BAM Clough Receives Additional LoI For
PNG LNG Jetty Topsides
Oct 01, 2010 Bapco Receives Bids For LNG Terminal In
Bahrain
Sep 29, 2010 ExxonMobil Announces Odoptu
Production Startup At Sakhalin-1 Project In
Russia
Sep 23, 2010 Leighton To Deliver Civil And Underground
Works For Gorgon Project
Sep 21, 2010 ExxonMobil Awards MZST License To
Source: Annual Report, Company Website, Primary and Secondary Research, Calfrac Well Services
GlobalData
Source: Annual Report, Company Website, Primary and Secondary
Research, GlobalData

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Table of Contents
Table of Contents........................................................................................................................................................................................................... 2
List of Tables .................................................................................................................................................................................................................. 4
List of Figures................................................................................................................................................................................................................. 4
Section 1 - About the Company ..................................................................................................................................................................................... 5
Exxon Mobil Corporation - Key Facts............................................................................................................................................................................. 5
Exxon Mobil Corporation - Key Employees.................................................................................................................................................................... 6
Exxon Mobil Corporation - Key Employee Biographies ................................................................................................................................................. 7
Exxon Mobil Corporation - Major Products and Services............................................................................................................................................... 8
Exxon Mobil Corporation - History ............................................................................................................................................................................... 10
Exxon Mobil Corporation - Company Statement.......................................................................................................................................................... 13
Exxon Mobil Corporation - Locations And Subsidiaries ............................................................................................................................................... 15
Head Office............................................................................................................................................................................................................ 15
Other Locations & Subsidiaries ............................................................................................................................................................................. 15
Section 2 – Company Analysis .................................................................................................................................................................................... 23
Exxon Mobil Corporation - Business Description ......................................................................................................................................................... 23
Business Description - Chemical ........................................................................................................................................................................... 23
Chemical - Overview ....................................................................................................................................................................................... 23
Chemical - Production..................................................................................................................................................................................... 23
Chemical - Financials...................................................................................................................................................................................... 23
Chemical - Capital Expenditure....................................................................................................................................................................... 23
Chemical - Market View .................................................................................................................................................................................. 23
Chemical - Key Strategies............................................................................................................................................................................... 23
Business Description - Downstream...................................................................................................................................................................... 24
Downstream - Overview.................................................................................................................................................................................. 24
Downstream - Production................................................................................................................................................................................ 24
Downstream - Financials................................................................................................................................................................................. 24
Downstream - Capital Expenditure ................................................................................................................................................................. 24
Downstream - Market View ............................................................................................................................................................................. 24
Downstream - Key Strategies ......................................................................................................................................................................... 25
Business Description - Upstream .......................................................................................................................................................................... 25
Upstream - Overview ...................................................................................................................................................................................... 25
Upstream - Production .................................................................................................................................................................................... 25
Upstream - Financials ..................................................................................................................................................................................... 25
Upstream - Capital Expenditure ...................................................................................................................................................................... 25
Upstream - Market View.................................................................................................................................................................................. 26
Upstream - Key Strategies .............................................................................................................................................................................. 26
Exxon Mobil Corporation - SWOT Analysis ................................................................................................................................................................. 27
SWOT Analysis - Overview ................................................................................................................................................................................... 27
Exxon Mobil Corporation - Strengths..................................................................................................................................................................... 27
Strength - Integrated Refining and Chemical Operations ............................................................................................................................... 27
Strength - Wide Geographic Spread ............................................................................................................................................................... 27
Strength - Extensive Research & Development Activities............................................................................................................................... 27
Strength - Cogeneration Facilities................................................................................................................................................................... 27
Exxon Mobil Corporation - Weaknesses................................................................................................................................................................ 28
Weakness - Declining Market Share in Sector................................................................................................................................................ 28
Weakness - Low Focus on Profitability ........................................................................................................................................................... 28
Weakness - Limited Liquidity Position............................................................................................................................................................. 28

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Weakness - Declining Reserves ..................................................................................................................................................................... 28
Weakness - Increasing Production Costs ....................................................................................................................................................... 28
Exxon Mobil Corporation - Opportunities............................................................................................................................................................... 28
Opportunity - Demand for Hydrocarbons in the Long Run.............................................................................................................................. 28
Opportunity - Expansion through Inorganic Growth ........................................................................................................................................ 29
Opportunity - Deep Offshore- Growth Area for the Long Term ....................................................................................................................... 29
Opportunity - Opportunities in Unconventional Energy Sources..................................................................................................................... 29
Exxon Mobil Corporation - Threats ........................................................................................................................................................................ 29
Threat - Natural Disasters ............................................................................................................................................................................... 29
Threat - Downturn in the Refining Sector........................................................................................................................................................ 29
Threat - US Energy Policy............................................................................................................................................................................... 29
Threat - Threat to Oil Sand Industry................................................................................................................................................................ 30
Threat - Rising Capital Costs in the Refining Sector....................................................................................................................................... 30
Exxon Mobil Corporation - Key Competitors ................................................................................................................................................................ 31
Section 3 – Company Financial Ratios ........................................................................................................................................................................ 32
Financial Ratios - Capital Market Ratios................................................................................................................................................................ 32
Financial Ratios - Annual Ratios............................................................................................................................................................................ 32
Performance Chart ................................................................................................................................................................................................ 34
Financial Performance........................................................................................................................................................................................... 34
Financial Ratios - Interim Ratios............................................................................................................................................................................ 35
Financial Ratios - Ratio Charts .............................................................................................................................................................................. 36
Section 4 – Company’s Recent Developments............................................................................................................................................................ 37
Oct 05, 2010: BAM Clough Receives Additional LoI For PNG LNG Jetty Topsides ....................................................................................... 37
Oct 01, 2010: Bapco Receives Bids For LNG Terminal In Bahrain ................................................................................................................ 37
Sep 29, 2010: ExxonMobil Announces Odoptu Production Startup At Sakhalin-1 Project In Russia............................................................. 37
Sep 23, 2010: Leighton To Deliver Civil And Underground Works For Gorgon Project.................................................................................. 38
Sep 21, 2010: ExxonMobil Awards MZST License To Calfrac Well Services................................................................................................. 38
Sep 20, 2010: ExxonMobil Announces Equipment For Industry Use Through MWCC .................................................................................. 39
Sep 16, 2010: ExxonMobils's Deepwater Exploration Well Commercially Not Viable .................................................................................... 39
Sep 14, 2010: MMA Secures Gorgon Fuel Transportation Contract .............................................................................................................. 39
Sep 02, 2010: CCJV Wins AUD250 Million Work Order For LNG Upstream Infrastructure In Papua New Guinea ....................................... 40
Sep 01, 2010: WorleyParsons Receives Contract From ExxonMobil For Hebron Project In Canada ............................................................ 40
Section 5 – Appendix ................................................................................................................................................................................................... 41
Methodology .......................................................................................................................................................................................................... 41
Ratio Definitions..................................................................................................................................................................................................... 41
About GlobalData .................................................................................................................................................................................................. 45
Contact Us ............................................................................................................................................................................................................. 45
Disclaimer .............................................................................................................................................................................................................. 45

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List of Tables
Exxon Mobil Corporation, Key Facts ............................................................................................................................................................................. 5

Exxon Mobil Corporation, Key Employees .................................................................................................................................................................... 6

Exxon Mobil Corporation, Key Employee Biographies.................................................................................................................................................. 7

Exxon Mobil Corporation, Major Products and Services ............................................................................................................................................... 8

Exxon Mobil Corporation, History................................................................................................................................................................................ 10

Exxon Mobil Corporation, Other Locations ................................................................................................................................................................. 15

Exxon Mobil Corporation, Subsidiaries ....................................................................................................................................................................... 16

Exxon Mobil Corporation, Key Competitors ................................................................................................................................................................ 31

Exxon Mobil Corporation, Ratios based on current share price.................................................................................................................................. 32

Exxon Mobil Corporation, Annual Ratios..................................................................................................................................................................... 32

Exxon Mobil Corporation, Interim Ratios..................................................................................................................................................................... 35

Currency Codes .......................................................................................................................................................................................................... 41

Capital Market Ratios .................................................................................................................................................................................................. 41

Equity Ratios ............................................................................................................................................................................................................... 42

Profitability Ratios........................................................................................................................................................................................................ 42

Cost Ratios.................................................................................................................................................................................................................. 43

Liquidity Ratios ............................................................................................................................................................................................................ 43

Leverage Ratios .......................................................................................................................................................................................................... 44

Efficiency Ratios.......................................................................................................................................................................................................... 44

List of Figures
Exxon Mobil Corporation, Performance Chart (2005 - 2009) ...................................................................................................................................... 34

Exxon Mobil Corporation, Ratio Charts ....................................................................................................................................................................... 36

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Section 1 - About the Company

Exxon Mobil Corporation - Key Facts


Exxon Mobil Corporation, Key Facts
Corporate Address 5959 Las Colinas Boulevard, Ticker Symbol, Exchange XOM [New York Stock
Irving, TX, 75039, United Exchange]
States
Telephone +1 972 4441000 No. of Employees 80,700
Fax +1 972 4441348 Fiscal Year End December
URL www.exxonmobil.com Revenue (in USD Million) 310,586
Industry Chemicals, Energy and
Utilities
Locations Australia, Austria, Belgium, Brazil, Cameroon, Canada, Chad, China, Colombia, Denmark,
Egypt, Finland, France, Germany, India, Indonesia, Ireland, Italy, Japan, Kuwait,
Luxembourg, Malaysia, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal,
Republic of Korea, Russian Federation, Singapore, Spain, Sweden, Switzerland, Thailand,
Turkey, Ukraine, United Kingdom, United States
Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Exxon Mobil Corporation - Key Employees

Exxon Mobil Corporation, Key Employees


Name Job Title Board Level Since Age
Rex W. Tillerson Chairman, Chief Executive Executive Board 2006 58
Officer

Donald D. Humphreys Treasurer, Senior Vice Executive Board 2006 62


President

Michael J. Boskin Director Non Executive Board 1996 64

William W. George Director Non Executive Board 2005 67

Kenneth C. Frazier Director Non Executive Board


Reatha Clark King Director Non Executive Board 1997 71

Marilyn Carlson Nelson Director Non Executive Board 1991 70

Samuel J. Palmisano Director Non Executive Board 2008 58

Steven S Reinemund Director Non Executive Board 2007 59

Larry R. Faulkner Director Non Executive Board 2008 65

Edward E. Whitacre Director Non Executive Board 2008 68

Walter V. Shipley Director Non Executive Board


Mark W. Albers Senior Vice President Senior Management 2007 53

H. R. Cramer Vice President Senior Management 1999 59

Stephen D. Pryor Vice President Senior Management 2004 60

Patrick T. Mulva Controller, Vice President Senior Management 2004 58

S. J. Glass, Jr. Vice President Senior Management 2008 62

Alan. J. Kelly Vice President Senior Management 2007 52

Richard Michael Kruger Vice President Senior Management 2008 50

Andrew P. Swiger Senior Vice President Senior Management 2009 53

Michael J. Dolan Senior Vice President Senior Management 2006 62

William M. Colton Vice President, Corporate Senior Management


Strategic Planning
T.M. Fariello Vice President, Washington Senior Management
Office
R.S. Franklin President, Vice President, Senior Management
ExxonMobil Upstream Ventures

David S. Rosenthal Vice President, Investor Senior Management 2008 53


Relations and Secretary
Thomas R. Walters Vice President Senior Management 2009 55

Neil W. Duffin President, ExxonMobil Senior Management 2007 53


Development Company
Suzanne M. McCarron President, ExxonMobil Senior Management 2010
Foundation
S. J. Balagia Vice President Senior Management 2010 58
Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Exxon Mobil Corporation - Key Employee Biographies

Exxon Mobil Corporation, Key Employee Biographies

Rex W. Tillerson Mr. Tillerson has been the Chairman and the Chief Executive Officer of
Exxon Mobil since 2006. He was the Senior Vice President of the
Job Title: Chairman, Chief Executive Officer company during 2001-2004. He also held many management positions in
Board Level: Executive Board domestic and foreign operations since he joined the company in 1975,
including those of the President, Exxon Yemen Inc. and Esso Exploration
Since: 2006 and Production Khorat Inc.; the Vice President, Exxon Ventures (CIS)
Age: 58 Inc.; the President, Exxon Neftegas Limited and the Executive Vice
President, Exxon Mobil Development Company.

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

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Exxon Mobil Corporation - Major Products and Services
Exxon Mobil is involved in the exploration, production, refining and marketing of oil and gas. It also operates the
petrochemicals and power generation businesses.

Exxon Mobil Corporation, Major Products and Services

Products:

Crude oil

Natural gas

Electricity

Refined products:

Gasoline

Diesel

Aviation turbine fuel

Furnace oil

Bitumen

Other petroleum products

Lubricants

Petroleum specialties
Chemicals:

Aliphatic fluids

Aromatic fluids

Olefins

Synthetic fluids and lubricants

Higher alcohols

Plasticizers

Oxygenated fluids

Neo acids

Polymers:

Butyl polymers

EPDM rubber

Specialty elastomers

Santoprene TPEs

Polyethylene

Olefins

Polypropylene

Plastomers

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Hydrocarbon tackifier resins

Styrenic block copolymers

Functionalized polymers

Polymer films:

OPP films
Services:

Technical advisory services

Service stations

Convenience stores
Brands:

Exxon

Esso

Mobil
Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Exxon Mobil Corporation - History

Exxon Mobil Corporation, History


2009 Contracts/Agreements In dec 2009, Esso Highlands Limited (Esso Highlands), a subsidiary of
Exxon Mobil Corporation, approved engineering, procurement and
construction contracts for the $15 billion Papua New Guinea liquefied
natural gas project (LNG).

2009 Contracts/Agreements In Nov 2009,Nigeria renewed three oil leases involving joint ventures
operated by the company. An agreement reached on the terms of new
leases that will run for a further 20 years with an option to renew.

2008 Contracts/Agreements On April 14, 2008, ExxonMobil Exploration and Production Hungary
Limited, a subsidiary of ExxonMobil, and MOL Hungarian Oil and Gas Plc.
(MOL) announced an agreement to start a joint exploration program in
blocks 106 and 107 in the Mako Trough, Southeast Hungary. ExxonMobil
will fund the work program and receive a 50% interest in the acreage
upon completion. MOL will retain the remaining 50% interest. This
exploration program covers 387,000 acres.

2008 Acquisitions/Mergers/Takeovers In 2008, the compay's affiliate, ExxonMobil Exploration and Production
Romania Limited, have signed an agreement with Petrom SA to help
explore deepwater portions of the Neptun Block offshore Romania.

2008 New Products/Services ExxonMobil Chemical Company Introduced a new product for Packaging
and Agricultural Greenhouse Films with the Potential to Reduce Waste
and Energy Consumption in 2008.

2008 Contracts/Agreements The company signed an agreement with Petrom SA to help explore
deepwater portions of the Neptun Block offshore Romania during
December 2008.

2007 Other In February 2007, Exxon Mobil completed the phase one of the Sakhalin-
1 project offshore Eastern Russia with affiliates of Rosneft, RN-Astra and
Sakhalinmorneftegas-Shelf, Sakhalin Oil and Gas Development Company
and ONGC Videsh Limited.

2007 Other In March, Sinopec, Fujian Province, Exxon Mobil and Saudi Aramco
received the government approval for the Fujian Refining and Ethylene
Joint Venture Project. The Chinese government granted the business
licenses for their two joint ventures in Fujian Province, Fujian Refining &
Petrochemical Company Limited and Sinopec SenMei Petroleum
Company Limited.

2007 Corporate Changes/Expansions The two joint ventures, with a total investment of about $5 billion, will be
Exxon Mobil’s first fully integrated refining, petrochemicals and fuels
marketing project with foreign participation in China.

2006 Corporate Changes/Expansions Exxon Mobil expanded its lubricants distribution network across Germany
and Poland during February 2006.

2006 Contracts/Agreements In 2006, the company signed agreements with Abu Dhabi National Oil
Company (ADNOC) in March 2006; through which Exxon Mobil receives a
28% undivided interest out of ADNOC's exploration and production
activities in the Upper Zakum oil field. The company also entered an

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agreement with P T Pertamina, to conduct exploration and production
activities in Indonesia. In the same month, it signed an agreement with
Thailand's PTT Chemical Public Company Limited, (PTTChem), for
production of petrochemicals.

2006 Other In 2006, Mobil Pipe Line Company (MPLCO), an affiliated company,
commenced the delivery of Canadian crude to the U.S. Gulf Coast during
April 2006 through an 858-mile crude oil pipeline that runs from Patoka,
Illinois to Nederland, Texas. In May 2006, Exxon Mobil Chemical and
Mitsubishi Chemical Corporation (MCC) agreed to terminate certain joint
venture agreements for Mytex Polymers Asia Pacific Private Limited
(Mytex AP) and Mytex Polymers Partnership (Mytex US). In Nigeria, the
company started production from the Erha deepwater development,
located approximately 60 miles (97 kilometers) offshore Nigeria.

2006 New Products/Services Exxon Mobil introduced new products in 2006, including polypropylene for
the automotive industry and turbine oils for Mitsubishi Heavy Industries
(MHI) gas and steam turbines.

2006 Other In June 2006, India-based Reliance Petroleum Limited selected


ExxonMobil Research and Engineering Company’s (EMRE) Sulfuric Acid
Alkylation technology for the construction of their export refinery in
Jamnagar, India for upgrading the gasoline pool.

2006 Corporate Changes/Expansions ExxonMobil extended its technology partnership with Team McLaren
Mercedes to supply the Formula 1 racing team with Mobil 1-branded
motor oils and high-performance fuels.

2006 Corporate Changes/Expansions In July 2006, ExxonMobil Middle East Gas Marketing Limited, a wholly
owned subsidiary of the company signed the development plan and the
launch of the Al Khaleej Gas-Phase Two (AKG-2) project with the State of
Qatar and Qatar. With this, the company completed the initial stage of the
project, AKG-1, which was started in November 2005.

2005 Other The company sold its 3.7% stake in China Petroleum and Chemical
Corporation (Sinopec) in March 2005.

2005 Contracts/Agreements Qatar Petroleum, Exxon Mobil and Edison entered an agreement in May
2005 for developing a liquefied natural gas (LNG) terminal, offshore the
coast of Italy in the North Adriatic Sea.

2005 Contracts/Agreements In September 2005, the company entered into a five-year supply
agreement with Caterpillar, to supply Caterpillar oils to the Caterpillar
factories and dealers worldwide. Further, Exxon Mobil Chemical Company
entered into a product distribution agreement with R T Vanderbilt in
December 2005, to distribute Exxon Mobil’s commercial Vistalon Ethylene
Propylene Diene Rubber - EP(D) M products in North America.

2005 Plans/Strategy In 2005, the company also announced its plans to convert its 71 Tiger
market convenience stores in Nashville and Memphis to its flagship On
the Run convenience store brand. The company introduced many new
products during 2005 including motor oils and multi-purpose greases for
the food-processing industry.

2004 Contracts/Agreements Exxon Mobil Chemical entered into an agreement with BP Chemicals in
2004, to acquire sales and marketing assets of the BP European
Isopropyl Alcohol (IPA) business. Also, the government of the State of
Qatar and an Exxon Mobil subsidiary, Exxon Mobil Qatar GTL, entered
into a heads of agreement (HOA) for a gas-to-liquid (GTL) project worth

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about $7 billion.

2004 Corporate Changes/Expansions In 2004, the company strengthened its exploration and production
activities in Angola and Columbia. Exxon Mobil also received Euro 1.39
billion from the sale of its stake in the pipeline unit of Gasunie to the Dutch
government.

2003 New Products/Services In 2003, the company launched its first synthetic blend motor oil for high-
mileage engines.

2003 Corporate Changes/Expansions In 2003, the company consolidated its U.S. East and U.S. West
production organizations to improve business performance. Towards the
end of 2003, Exxon Mobil announced that its subsidiary, Mobil North Sea
(MNSL), made a gas discovery in the Southern sector of the North Sea,
following the successful testing of an exploration well (about 32 miles east
of Bacton, U.K.).

2002 Corporate Changes/Expansions Exxon Mobil created a new business venture, EMTG in 2002, to expand
the commercial product and service line of the company's Mobil Travel
Guide series. During 2002, the company disposed its coal and mineral
business to focus on its core operations.

2000 Corporate Changes/Expansions In 2000, the company completed its $2 billion Sable Offshore Energy
Project, located off the coast of Nova Scotia, Canada.

1999 Incorporation/Establishment Exxon Mobil was formed in 1999 through the merger of Exxon and Mobil.

1882 Incorporation/Establishment Standard Oil of New Jersey (Jersey Standard) and Standard Oil of New
York (Socony), the chief predecessor companies of Exxon and Mobil, can
be traced to the 1882, when Mr. John D. Rockefeller acquired various
petroleum interests and organized them under the Standard Oil Trust.

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

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Exxon Mobil Corporation - Company Statement

A statement by Mr. Rex W. Tillerson, the Chairman and the Chief Executive Officer of ExxonMobil is given below.
The statement has been taken from the company’s 2009 annual report.

To Our Shareholders

ExxonMobil’s 2009 results demonstrated again the strength of our business model and our ability to excel under even
the most challenging economic conditions. We confirmed once again that we are committed to a long-term vision of
investing with discipline, improving operational efficiency, and increasing shareholder value.

In the midst of the global economic downturn of the past year, all three of our businesses – Upstream, Downstream,
and Chemical – continued to lead the industry worldwide in performance. Earnings were $19 billion. Return on
average capital employed (ROCE) was 16 percent. Cash flow from operations and asset sales was $30 billion. For
our shareholders, our leadership in 2009 has allowed us to return value to them. Through our dividends and share
buybacks, our Corporation distributed a total of $26 billion to our shareholders in 2009. Over the past five years, we
have distributed a total of more than $150 billion to our shareholders.

Energy is the lifeblood of modern economies.For this reason, ExxonMobil continues to invest for the long term,
secure in the belief that economic growth will return. In 2009, our capital and exploration expenditures were $27
billion. Over the next five years, we will continue to invest record amounts, more than $125 billion, to advance new
technologies, deliver new Upstream projects, increase production of higher-value refined products, and grow our
Chemical business.

Another important measure of our long-term commitment to excellence is our industry-leading safety record. In 2009,
we achieved best-ever lost time incident rates for our combined employee and contractor workforce. We continue to
demonstrate our commitment to improving environmental performance and reducing environmental impacts. In 2009,
we recorded zero spills from company owned and operated marine vessels and reduced Upstream hydrocarbon
flaring by over 20 percent.

For our Upstream business, 2009 was a strong year. Together with our partners, we started up eight major projects in
the United States, the United Kingdom, Norway, Italy, and Qatar. These projects not only deliver new supplies of
crude oil and natural gas to the world, but also provide significant value for resource owners and for our shareholders.

In 2009, ExxonMobil and XTO Energy announced an all-stock transaction that will enhance ExxonMobil’s position in
the development of unconventional natural gas and oil resources. We are confident that the combination of our
complementary strengths will open new opportunities to meet growing global energy demand and build value for our
shareholders.

In our Downstream and Chemical businesses, we have maintained our long-term strategic approach during the
recent economic downturn. Around the world, we continued to capture new efficiencies and benefit from our
integration and operating flexibility, helping us to maximize the value of our assets and resources. In 2009, in the
growing Asia Pacific market, we and our partners successfully started up China’s first integrated refining and
petrochemical complex with foreign participation. We remain focused on operational excellence and the disciplined
execution of our business strategies, which position us well for the future.

Underpinning success across all of our businesses is our commitment to technology. We have invested more than $4
billion in research and development over the last five years. These investments have led to several technological
breakthroughs that enable us to map undersea reservoirs, drill horizontally under arctic oceans, and efficiently
transport cleaner-burning natural gas to markets worldwide. We have also worked with vehicle manufacturers to
improve fuel economy through advanced plastics, new tire-lining technology, and synthetic lubricants. In 2009, we
launched a multimillion dollar research initiative with Synthetic Genomics Inc. to explore the development and
commercialization of algae-based biofuels.

Through these efforts and many others, ExxonMobil is engineering integrated solutions to help meet the world’s
growing energy needs while managing emissions.

Of course, none of our Corporation’s technological advances – or our industry-leading operational excellence – would
be possible without the talented men and women of ExxonMobil. Our success and our innovations are driven by their

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ingenuity and dedication. Year after year, they prove they care not just about results, but how those results are
achieved. Their dedication to upholding our high ethical standards for business wherever ExxonMobil operates and
their unending diligence to protect people, communities, and the environment are essential to our continued success.

Our National Content strategy enables us to make a positive change in the communities in which we operate, by
opening doors of opportunity in host nations to promote economic development by employing and training local
workforces and investing in infrastructure projects to support education and healthcare.

As the world recovers from the current economic downturn, ExxonMobil will continue to look beyond the current
business environment and focus on long-term business success and long-term growth in shareholder value. We will
continue to pursue opportunities to enhance our portfolio to ensure our businesses remain well-positioned to deliver
industry-leading performance at the top and bottom of the business cycle. We remain committed to meeting future
growing energy demand through long-term planning, disciplined investment, operational excellence, and strong
technological leadership.

On behalf of the men and women of ExxonMobil, I am grateful to our shareholders who have placed their trust and
confidence in us. We look forward to the successes to come.

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Exxon Mobil Corporation - Locations And Subsidiaries
Head Office
Exxon Mobil Corporation
5959 Las Colinas Boulevard
Irving
TX
75039
United States
Tel: +1 972 4441000
Fax: +1 972 4441348

Other Locations & Subsidiaries

Exxon Mobil Corporation, Other Locations

Brazil - Rio De Janeiro Office Exxon Mobil Aviation Fuels


Rua Victor Civita, 77 - Bloco I Leatherhead U.K. Office, Exxon Mobil House, Ermyn Way
Barra da Tijuca Leatherhead Surrey
Rio de Janeiro England

22775-044 KT22 8UX

Brazil United Kingdom

Tel: +55 21 34332000 Tel: +44 1372 222000


Fax: +44 1372 225810

ExxonMobil Aviation Fuels - Fairfax U.S. Office ExxonMobil


3225 Gallows Road Hermeslaan 2
Fairfax Brussels
Virginia (VA) 1831
22037 Belgium
United States Tel: +32 2 7222111
Tel: +1 703 8463000
Fax: +1 703 8492020

ExxonMobil Aviation Fuels


1 HarbourFront Place, #06-00 HarbourFront Tower One
Singapore
098633
Singapore
Tel: +65 68858083
Fax: +65 68858799

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

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Exxon Mobil Corporation, Subsidiaries

ExxonMobil Chemical Company ExxonMobil Mexico, S. A. de C.V.


13501 Katy Freeway Aristoteles No. 77-101
Houston Col. Chapultepec Polanco
Texas (TX) Mexico, D. F.

77079 1398 11560

United States Mexico

Tel: +1 281 8706000 Tel: +52 555 2794800


Fax: +52 555 2800070
Url: www.exxonmobilchemical.com

ExxonMobil Central Esso Schweiz GmbH


Europe Holding GmbH Uraniastrasse 40/ Lowenstrasse 2
Kapstadtring 2 Zurich
Hamburg 8021
22297 Switzerland
Germany Tel: +41 44 2144111
Tel: +49 40 63930 Fax: +41 44 2144209
Fax: +49 40 63933368

ExxonMobil Canada Ltd. ExxonMobil Abu Dhabi Offshore Petroleum Company Limited
106-1701 Hollis St United Arab Emirates
HALIFAX
NS
B3J 3M8
Canada
Tel: +1 902 4908900
Fax: +1 902 4960958

Esso Exploration and Production UK Limited Exxonmobil Research & Engineering Company
ExxonMobil House 1545 US Highway 22 East
Ermyn Way, Leatherhead Annandale
Surrey NJ
KT22 8UX 08801 3096
United Kingdom United States
Tel: +44 1372 222261 Tel: +1 908 730 0100

ExxonMobil Production Norway, Inc. ExxonMobil Central Europe Holding GmbH


Norway Kapstadtring 2
Hamburg
22297
Germany
Tel: +49 40 6393 0
Fax: +49 40 6393 3368

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Esso Exploration and Production Nigeria-Sao Tome (One) ExxonMobil Petroleum & Chemical Holdings Inc.
Limited
17th Floor, The Orient Square
Nigeria
Emerald Avenue, Ortigas Centre
Pasig City
1620
Philippines

Mobil Investments S.A Exxonmobil oil Indonesia, PT


Saudi Arabia GKBI, JL jendral sudirman no 28
Jakarta
10210
Indonesia
Tel: +62 021 574 0707
Fax: +62 021 574 0606

Mobil North Sea LLC Esso S.A.F


Grampian House 2, street of the Trip hammers
Union Row Rueil Malmaison Cedex
Aberdeen 92569
AB12 1SA France
United Kingdom Tel: +33 1 47 10 60 00
Tel: +44 1224 855000 Fax: +33 1 47 10 66 03
Fax: +44 1224 211746 Url: www.esso.fr

ExxonMobil Poland Sp.zo.o. Esso Brasileira de Petroleo Limitada


ul Chmielna 85/87 Rua Victor Civita
Warszawa 77 - Block 1 - 4
+805 Barra Da Tijuca
Poland Rio De Janeiro
Tel: +48 022 586 18 00 CEP 22775
Url: www.esso.com Brazil
Tel: +55 21 34332000
Fax: +55 21 34332037
Url: www.esso.com

ExxonMobil Exploration and Production Norway AS ExxonMobil Canada Energy


Grenseveien 6, N-4313 Sandnes 237 4 Ave. SW
P. O. Box 60 Calgary
Stavanger Alberta
Switchboard Canada
4064 Tel: +1 403 2607910
Norway Fax: +1 403 2373360
Tel: +47 51 60 60 60
Url: www2.exxonmobil.com

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Esso Exploration and Production Norway AS Esso Exploration International Limited
Norway United Kingdom

Imperial Oil Limited Esso Petroleum Co. Ltd


P. O Box 2480 United Kingdom
Station M
Calgary
AB
T2P 3M9
Canada
Tel: +1 800 5673776
Fax: +1 800 3670585
Url: www.imperialoil.ca

TonenGeneral Sekiyu K.K. Tonen Chemical Corporation


1-8-15 Konan
Minato-ku
Tokyo
108 8005
Japan
Tel: +81 3 54956000
Url: www.tonengeneral.co.jp

Esso Malaysia Berhad Mobil Oil Nigeria plc


Level 29, Menara ExxonMobile Mobil House, Lekki Expy.,
Kuala Lumpur City Centre PO Box 12054
Kuala Lumpur Lagos
50088 Nigeria
Malaysia Tel: +234 1 2621640
Tel: +60 3 2033000 Fax: +234 1 2421733
Url: www.exxonmobil.com

St1 Avifuels Oy Favorit Unternehmens-Verwaltungs-GmbH


Finland Postfach 60 07 20
Kapstadtring 2
Hamburg
Germany
Tel: +49 040 63 93 0
Fax: +49 040 63 93 22 25

ExxonMobil Pipeline Company Mobil Oil Sudan Limited


P. O. Box 2220 Sudan
Houston
TX
77002
United States

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Tel: +1 713 6562044
Url: www.exxonmobilpipeline.com

Castle Peak Power Company Limited Total Petroleum Ghana Limited


Hong Kong Special Administrative Region of China Total House
25 Liberia Road
Accra
Ghana
Tel: +233 21 664921
Fax: +33 21 664925
Url: www.total-ghana.com

Societe Francaise ExxonMobil Chemical S.C.A. Imperial Oil Resources


2 Rue des Martinets Canada
BP 270
Reuil Malmaison Cedex
92500
France
Tel: +33 1 47106000
Fax: +33 1 47105995

Esso (Thailand) Public Company Limited Esso SAF


3195/17-29, Rama 4 Road Tour Manhattan
Klongton Klongtoey La Defense
Bangkok Paris
10110 92059
Thailand France
Tel: +66 22 644200 Tel: +33 1 57007000
Url: www.esso.fr

Nippon Unicar Co., Ltd. ExxonMobil Production Deutschland GmbH


Asahi Tokai Bldg., 6-1, Ohte-machi 2-chome Germany
Chiyoda-ku
Tokyo
100 0004
Japan
Tel: +81 3 3270 6699
Url: www.sectorpages.com

Agresso France ExxonMobil Chemical France


Immeuble le Centralis, 63 avenue du General Leclerc Tour Manhattan 5 6
Bourg la Reine 5 Place De L Iris
92340 Courbevoie
France 92400
Tel: +33 01 41872600 France

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ExxonMobil Chemical Polymeres S.N.C ExxonMobil Chemical Operations Private Ltd.
Rue Pdt Kennedy 1 HarbourFront Pl., Ste
Notre-Dame-de-Gravenchon 06-00 HarbourFront Twr
76330 Singapore
France 098633
Tel: +33 2 32755151 Singapore
Fax: +33 2 32755197 Tel: +65 6885 8000
Fax: +65 6885 8405
Url: www.exxonmobilchemical.com

ExxonMobil Korea Inc. ExxonMobil Chemical Europe Inc.


7th Floor United States
Samhwan Building Url: www.exxonmobilchemical.com
Seoul
98 5
Republic of Korea
Tel: +82 2 36715201
Fax: +82 2 36715211

Exxonmobil Chemical Olefins Inc Exxon Mobil Chemical Films


Beverkae House Macedon
Cowdenbeath NY
KY4 8EP United States
United Kingdom

Advanced Elastomer Systems Ltd. ExxonMobil Sverige AB


Traston Lane Box 1035
Corporation Road Goteborg
Hythe SE 405 22
United Kingdom Sweden
Tel: +46 31 7990275

ExxonMobil Chemical Limited ExxonMobil Chemical Thailand Ltd.


Cadland Road 3195/16 Rama IV Rd
Hardley Bangkok
Southampton 10110
Hampshire Thailand
SO45 3NP Tel: +66 2 2624229
United Kingdom Fax: +66 2 2624802
Tel: +44 23 80893822
Fax: +44 23 80895909

Exxon Chemical Netherlands 1 B.V. Exxon Chemical Netherlands 3 B.V.


Netherlands Breda
Netherlands

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ExxonMobil Chemical International Services Ltd. EXXONMOBIL CHEMICAL FILMS EUROPE (U.K.) LIMITED
22nd Floor United Kingdom
Central Plaza 18
Hong Kong Special Administrative Region of China
Tel: +852 3197 8888

ExxonMobil de Colombia S.A. Esso Belgium NV


Apartado Postal 3404 Polderdijkweg
Calle 90 No.19C-32 2030
Bogota Belgium
Colombia Tel: +32 3 5433111
Tel: +57 1 6280460 Fax: +32 3 5433495

Esso Ireland Ltd. Ireland Roc Ltd


Dublin Joint Fuels Terminal Malahide Road
Alexandra Rd Artane
Dublin Ireland
Ireland Tel: +353 183 12138
Tel: +353 1 8555559
Fax: +353 1 8551402
Url: www.esso.ie

Esso Ireland Manufacturing Company ESSO Austria GmbH


Esso House Stillorgan Argentinierstrasse 23
Blackrock Wien
Dublin A 1040
Ireland Austria
Tel: +43 1 501400
Fax: +43 1 50140335
Url: www.esso.at

Esso Standard Oil (Uruguay) S.A. ROC UK Limited


Montevideo Exxonmobil House
Uruguay Ermyn Way
Leatherhead
Surrey
KT22 8UX
United Kingdom
Tel: +44 137 2222000
Url: www.roc.co.uk

Comma Oil & Chemicals Ltd. Redline Oil Services Ltd


Dering Way Esso House
Kent Ermyn Way
Gravesend Leatherhead
England Surrey

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DA12 2QX KT22 8UY
United Kingdom United Kingdom
Tel: +44 1474 564311 Tel: +44 137 2222000
Fax: +44 1474 333000 Fax: +44 137 2223115
Url: www.commaoil.com

Mainline Pipelines Limited Exxonmobil Pension Trust Ltd


Seisdon Hollaway Leatherhead
Wolverhampton Surrey
WV5 7EY United Kingdom
United Kingdom

Tonen Technology Kabushiki Kaisha Exxonmobil Petroleum & Chemical Bvba


Tokio Antwerp
Japan Belgium
Tel: +32 35 433111
Fax: +32 35 433495

Esso Australia Resources Pty Ltd. Esso Raffinage S.A. Francaise


12 Riverside Quay 5 Pl. de l'Iris, Courbevoie
Southbank F 92400
VIC France
3006 Tel: +33 1 57007000
Australia Fax: +33 1 57007599
Tel: +61 3 92703333 Url: www.esso.fr

Worex S.N.C. Ets Joseph Wallach SASU


66 Rte. de Sartrouville 1a rue Jean Monnet
Les Erables III, Le Pecq Sausheim
F 78230 F 68391
France France
Tel: +33 1 34804200 Tel: +33 8 10001818
Fax: +33 1 34801533 Fax: +33 3 89311255
Url: www.esso.com Url: www.wallach.fr

Esso Kenya Ltd Thai C-Center Co., Ltd.


Mombasa 3195/21 Rama IV Road Klongton Klongtoey
Kenya Bangkok
10110
Thailand
Tel: +66 2 624000

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

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Section 2 – Company Analysis

Exxon Mobil Corporation - Business Description

ExxonMobil, along with its subsidiaries and affiliates engages in the exploration, production and transportation of
crude oil and natural gas; and manufacture and sale of refined products. The company is also a manufacturer and
marketer of commodity petrochemicals, such as olefins, aromatics, polyethylene and polypropylene plastics and a
range of specialty products. In addition, it has interests in electric power generation facilities. ExxonMobil has
presence in six continents covering over 200 countries and operates through three reportable business segments:
Upstream, Downstream and Chemical.Recently, ExxonMobil concluded the acquisition of XTO Energy, Inc., an oil
and natural gas company, for a purchase consideration of USD 41,000 million.

Business Description - Chemical


Chemical - Overview
ExxonMobil, through its Chemical segment, involves in the manufacture and sale of petrochemicals and other
chemical products. Its products include: paraxylene, olefins, polyethylene, polypropylene, synthetic rubber, oriented
polypropylene packaging films, plasticizers, synthetic lubricant base stocks, additives for fuels and lubricants, zeolite
catalysts and other petrochemical products. Its chemical activities are carried out in North America, Europe, the
Middle East and Asia Pacific.

As at December 31, 2009, the company chemical complex capacity stood at 8.9 millions metric tons (MT) of ethylene,
7.3 MT polyethylene, 2.2 MT polypropylene and 3.8 MT paraxylene.

In 2009, the company started up a fully integrated, world-scale facility in Fujian Province, China, which comprised 800
thousand tons per year ethylene steam cracker and associated polypropylene, polyethylene and paraxylene units.

Chemical - Production
During the fiscal year 2009, the total chemical prime product sales reached 24,825 thousand metric tons, as
compared to 24,982 thousand metric tons in 2008. Of which, 9,649 thousand metric tons were sold in the US and
15,176 thousand metric tons were sold in the remaining areas of the world.

Chemical - Financials
For the fiscal year 2009, the Chemical segment’s revenue accounted for USD 2,309 million, a decline of 22% over
2008.

Chemical - Capital Expenditure


For the fiscal year 2009, the company's capital expenditure for its Chemical segment totaled USD 3,148 million, as
compared to USD 2,819 million in 2007.

Chemical - Market View


The worldwide demand for petrochemicals in the first half of 2009 was weak, however, the demand showed signs of
recovery in the second half of 2009. ExxonMobil expects over 60% of global petrochemical demand growth to occur
in Asia, with China accounting for more than one-third.

Chemical - Key Strategies


For its Chemical segment, ExxonMobil focuses on the following strategies:

• Taking advantage of core competencies


• Consistently delivering solid performance
• Building and maintaining proprietary technology positions
• Capturing the benefits of its integrated businesses

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Furthermore, to capitalize on the growth opportunities in Asia, the company started a fully integrated, world-scale
facility in China. Additionally, Saudi Basic Industries Corporation (SABIC) and the company are progressing studies at
its Kemya and Yanpet petrochemical joint venture sites in Saudi Arabia to supply premium products. It further aims to
invest in projects which will support its specialty business, enhance energy efficiency of its operations, enhance feed
flexibility and deliver breakthrough products and processes to enhance and extend its competitive advantage.

Business Description - Downstream


Downstream - Overview
The Downstream segment of the company comprises refining and supply; fuels marketing; and lubricants and
specialties businesses. ExxonMobil’s refining and supply business includes a global network of refineries,
manufacturing plants, transportation systems and distribution centers that provide a wide variety of fuels, lubricants,
and other high-value products and feedstocks. ExxonMobil holds an ownership interests in 37 refineries across 21
countries with combined distillation capacity of 6.3 million barrels per day and lubricant basestock manufacturing
capacity of about 140 thousand barrels per day.

As part of its supply business, the company has interests in 11 crude oil and product tankers with individual capacity
of more than one thousand deadweight tons. It also has interests in 186 major petroleum products terminals globally.
Its fuels marketing business is responsible for marketing and selling of petroleum products and related services
through its network of 28,000 retail service stations, under brands, Mobil, Exxon, and Esso. The company's lubricants
and specialties business is involved in the marketing of finished lubricants, asphalt, and specialty products.

ExxonMobil completed the commissioning of new cogeneration facilities in China and Belgium, representing a total of
375 MWs in 2009. In July 2009, the company formed an alliance with Synthetic Genomics Inc., a biotech company, to
research and develop biofuels from photosynthetic algae.

Recently, Mid-Atlantic Convenience Stores, LLC, acquired a majority interest in Uppy's Convenience Stores, Inc. and
170 convenience stores/fuel stations from ExxonMobil. 7-Eleven Australia Pty Ltd., a subsidiary of 7-Eleven Stores
Pty Ltd., entered into an agreement to acquire 295 gasoline filling stations, from Mobil Oil Australia Pty Ltd., a
subsidiary of the company. Additionally, Global Partners LP, a supplier of refined petroleum products, signed an
agreement with the company to acquire 190 Mobil-branded gas stations for USD 200 million.

ExxonMobil entered into a multi-year agreement, under which, ExxonMobil2 will manufacture and supply Caterpillar
branded lubricants to Caterpillar factories and dealers worldwide.

Downstream - Production
During the fiscal year 2009, the total throughput at the company’s refineries stood at 5,350 thousands of barrels per
day (mbpd), as compared to 5,416 mbpd in 2008. Furthermore, the petroleum product sales decreased to 6,428
mbpd in 2008 from 6,761 mbpd in 2008. The decline was primarily due to lower worldwide demand for fuel products.

Of the total 6,428 mbpd, the sales volumes of gasoline and naphthas stood at 2,573 mbpd; heating oils, kerosene,
diesel stood at 2,013 mbpd; aviation fuels stood at 536 mbpd; heavy fuels stood at 598 mbpd; and specialty products
stood at 708 mbpd.

Downstream - Financials
For the fiscal year 2009, the Downstream segment recorded Earnings after income taxes of USD 1.78 million, a
decline of 78% over 2008.

Downstream - Capital Expenditure


For the fiscal year 2009, the company's capital expenditure for its Downstream segment totaled USD 3,196 million, as
compared to USD 3,529 million in 2008.

Downstream - Market View


The global refining industry is witnessing a slump following the global economic downturn after a high return period in
the past few years. The company expects the refining margins to decline due to the intense competition in the refining

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industry. Uncertain product demand due to the economic downturn, decreasing refinery margins and a surplus
refining capacity are having a combined negative effect on the profitability of refining operations. These trends will
continue to cast a shadow of uncertainty over the future of refinery margins thereby making the refining sector
unattractive for the oil companies such as this.

The decreased demand of petroleum products and low refinery margins forced many companies to cut throughput
rates in their refineries or temporarily shut down the refineries. Furthermore, the prices of crude oil and petroleum
products have dropped drastically from the peak of 2008 affecting the profitability of refineries. The meltdown in the
financial sector has made it difficult to raise finance for the capital intensive refinery projects. These have prompted
many companies to postpone or cancel their refinery investment plans.

Downstream - Key Strategies


The company’s strategies for the segment include maintaining best-in-class operations, maximizing value from
leading-edge technologies, capitalizing on integration with other ExxonMobil businesses, selectively investing for
resilient, advantaged returns, and providing quality, valued products and services to customers.

Business Description - Upstream


Upstream - Overview
The company, through its upstream segment, engages in the exploration and production of crude oil and natural gas.
The company is also involved in power generation operations. It operates through several global companies and
affiliates. These companies are responsible for the exploration, development, production, gas and power marketing,
and upstream-research activities. The company has interests in various types of oil and gas assets including
conventional, deepwater, heavy oil, oil sands, Arctic, acid/sour gas, LNG and tight gas assets. These assets are
located in the US, Canada, South America, Europe, the Asia-Pacific, Australia, the Middle East, Russia, the Caspian
and Africa.

As of December 31, 2009, the company’s proved oil and gas reserves totaled 14,955 million barrels of oil equivalent
(mmboe). Of the total proved reserves, the crude oil and natural gas liquid reserves totaled 6,469 million barrels and
natural gas reserves reached 34,442 billion cubic feet.

At the end of 2009, the company's undeveloped exploration acreage totaled gross 110.75 million (net 71.92 million).
In addition, ExxonMobil has interests in electric power generation facilities.

In 2009, ExxonMobil commenced eight major projects in the US, the UK, Norway, Italy, and Qatar. The Golden Pass
liquefied natural gas (LNG) terminal is scheduled to open on the U.S. Gulf Coast in 2010 and is expected to have the
capacity to import 2 billion cubic feet of gas per day from the new LNG projects in Qatar. Oil and Natural Gas
Corporation Limited, an energy company, plans to sell its interest in Krishna Godavari basin gas block DWN-98/2, to
the company.

Upstream - Production
During the fiscal year 2009, the combined oil and gas production volumes was 3,932 thousand barrels of oil
equivalent (mboe), as compared to 3,921 mboe in 2008. During 2009, the company’s total liquids production was
2,387 mbpd and natural gas production was 9,273 million cubic feet per day (mmcfd). As of December 31, 2009 the
company had a total of 16,556 net productive oil wells and 9,760 net productive gas wells. Furthermore, at the year-
end 2009, it had 13,737 net operated wells.

Upstream - Financials
For the fiscal year 2009, the Upstream segment’s earning after income taxes accounted for USD 17,107 million, a
decrease of 52% over 2008.

Upstream - Capital Expenditure


For the fiscal year 2009, the company's capital expenditure for its Upstream segment totaled USD 20,704 million, as
compared to USD 19,734 million in 2008.

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Upstream - Market View
The overall global energy demand is expected to grow by about 1.6% annually through 2030. With the growing
transportation sector, the demand for liquid fuels is expected to rise at a rate of 1.4% per year. Driven by increasing
demand for electricity, natural gas demand is expected to increase by 1.7% annually to 2030. The demand for gas in
the Asia Pacific region is expected to grow faster than any other region of the world at about 3.2% per year through
2030.

The company anticipates that the global LNG demand will increase rapidly by 2030, driven by the demand in North
America, Europe and Asia Pacific markets. By 2030, LNG demand is expected to represent about 16% of the world’s
gas demand. The company holds LNG liquefaction capacity of about 65 million tons in 2010, and it expect this to
increase to more than 100 million tons annually in the coming years.

Upstream - Key Strategies


The company’s objective of the upstream segment is to create the value in that distinguishes the company from its
competitors. ExxonMobil’s upstream business strategies include identifying and pursuing all attractive exploration
opportunities, investing in projects that deliver superior returns, maximizing profitability of existing oil and gas
production, and capitalizing on growing natural gas and power markets.

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Exxon Mobil Corporation - SWOT Analysis

SWOT Analysis - Overview

ExxonMobil is engaged in the exploration and production of crude oil and natural gas, and marketing of petroleum
products. It has integrated refining and chemical operations and cogeneration facilities. The company operates in
diverse geographic locations across the world. The company can expect to benefit from the increasing demand for
hydrocarbons in the long run. However, declining market share, proved oil reserves and the increasing production
costs are likely to affect its profitability. Furthermore, natural disasters such as hurricanes in the Gulf of Mexico and
the coastal US and stringent regulations may hamper its growth.

Exxon Mobil Corporation - Strengths

Strength - Integrated Refining and Chemical Operations


The company has its presence across the energy value chain. ExxonMobil is a leading energy company with
integrated operations. The company achieves greater flexibility to optimize operations and to produce higher-value
products with lower feedstock and operating cost due to its integrated large scale refining operations with chemical
business. The company's refining and processing operations are closely related to the petrochemical production
business due to overlapping processes and feedstocks. Over 90% of the chemical capacity that the company owns
and operates is integrated with its refining complexes or natural gas processing plants. Such integrated sites are
designed and operated to maximize the value of each product stream and to achieve cost savings from economies of
scale. About 75% of ExxonMobil’s refining capacity is integrated with its lubricants and/or chemical businesses. On
an average, the company's refineries are over 60% larger and are more integrated with chemical and lubes
operations.
Strength - Wide Geographic Spread
ExxonMobil has upstream and downstream operations spread over various countries worldwide. It operates over
28,000 retail service stations in nearly 100 countries. The company operates its service stations under the brands
Exxon, Mobil and Esso. In addition to its retail business, the company has three business-to-business segments,
namely, retail, industrial and wholesale, aviation, and marine that sell ExxonMobil fuels to over one million customers
worldwide ExxonMobil's exposure to the developed countries is highest in its peer group. North America and Europe
are amongst the leading oil and gas consumers in the world. ExxonMobil has strong presence in the US, Canada,
Europe, the Asia Pacific and Latin America. A major part of the company's petroleum product sales comes from North
America and Europe. The company's strong retail presence in countries which are leading consumers of oil and
natural gas drives revenue growth.
Strength - Extensive Research & Development Activities
ExxonMobil undertakes extensive Research & Development (R&D) activities to support its business. As of December
31, 2009 the company has held over 11,000 active patents. The company invested more than USD 4.0 billion in
research and development over the last five years. The extensive R&D activities of the company provide major
technological breakthroughs that enable the company to map undersea reservoirs, drill horizontally under arctic
oceans, and efficiently transport cleaner-burning natural gas to markets. To improve fuel economy through advanced
plastics, new tire-lining technology, and synthetic lubricants the company worked with vehicle manufacturers. To
explore the development and commercialization of algae-based biofuels a multimillion dollar research initiative with
Synthetic Genomics Inc. has been launched in 2009.

Strength - Cogeneration Facilities


ExxonMobil is an industry leader in the use of cogeneration process, which is a highly efficient way to generate power
and steam. The substantial cogeneration facilities help the company in meeting its power and heat requirements
economically while optimizing its energy resources alongwith significant environmental benefits because it produces
fewer greenhouse gas emissions than conventional power generation.. Since 2004, the company invested more than
USD 1.9 billion in new cogeneration capacity. has interests in a approximately 16,000 megawatts (MW) of power
generation capacity worldwide.

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Exxon Mobil Corporation - Weaknesses

Weakness - Declining Market Share in Sector


ExxonMobil's compounded annual growth rate (CAGR) for revenue was -4.33% during 2005-2009. This was below
the Integrated Oil & Gas sector average* of 21.18%. Also, the company reported revenues of USD 310,586.00 million
during the fiscal year ended December 2009, a decrease of 34.94% from 2008. A lower than sector average* revenue
CAGR indicate that the company has underperformed the average sector growth and lost market share over the last
four years. The company's under-performance could be attributed to a weak competitive position.
Weakness - Low Focus on Profitability
The operating margin of the company has decreased 627 bps over 2008. ExxonMobil's operating margin was 11.2%
for the fiscal year 2009. This was below the Integrated Oil & Gas sector average* of 16.58%. Also, the operating profit
of the company was USD 34,777.00 million during the fiscal year 2009, a decrease of 58.30% from 2008. A lower
than sector average* operating margin implies inefficient cost management strategy by the company and
management's low focus on profitability.
Weakness - Limited Liquidity Position
Weak liquidity position may affect the company's operational and financial conditions in short term. ExxonMobil's
reported cash in hand of USD 10,693 million in 2009, a decrease of 66% over 2008. Further, its current ratio was 0.95
at the end of fiscal year 2009. Current ratio is used to indicate the company's ability to pay back its short-term
liabilities with its short-term assets. This was below the S&P 500 companies average* of 1.06. This was below the
Integrated Oil & Gas sector average* of 1.45. A lower than sector average* current ratio indicates that the company is
in a weaker financial position than other companies in the sector.
Weakness - Declining Reserves
ExxonMobil’s declining proved oil reserves could affect its business and market share. The company's proved oil
reserves have declined significantly over the past five years. As of December 31, 2008, the company's oil reserves
were 6,469 million barrels, as compared to 7,576 million barrels in 2008; 7,744 million barrels in 2007; 8,194 million
barrels in 2006 and 9,889 million barrels in 2003. During the 2003-2009 period, the company's proved oil reserves
declined significantly by 52.87%, while the decrease during 2007-2008 was 14.61%. The oil and natural gas liquids
production in 2009 was 2,387 mbpd, a decrease of 75bps over 2008. The declining trend in the company's proved oil
reserves is likely to affect its oil production volumes.
Weakness - Increasing Production Costs
ExxonMobil has extensive oil and gas exploration and production operations worldwide. The production cost per
barrel of production has been increasing steadily over the 2004-2009 period. In the fiscal year ended December 31,
2009, the production costs of the company increased to USD 8.72 per barrel, as compared to USD 7.14 per barrel in
2007, USD 6.04 per barrel in 2006, USD 5.36 per barrel in 2005, USD 6.04 per barrel in 2004 and USD 4.78 per
barrel in 2003. The increasing upstream production costs are likely to affect its upstream profit margins.

Exxon Mobil Corporation - Opportunities

Opportunity - Demand for Hydrocarbons in the Long Run


The projected increase in demand for liquid fuels and natural gas in the coming years would help the company boost
its sales and strengthen its financial base. The strong economic growth in the developing countries will drive global oil
and natural gas demand. The overall global energy demand will grow about 1.6% annually to 2030. With the growing
transportation sector, the demand for liquid fuels is expected to rise at a rate of 1.4% per year. Driven by increasing
demand for electricity, natural gas demand is expected to increase by 1.7% annually to 2030. Furthermore, the global
LNG demand is expected to grow at more than 4% per year through 2030, driven by demand in North America,
Europe and Asia Pacific markets. By 2030, LNG demand is expected to represent about 16% of the world’s gas
demand. ExxonMobil is currently participating in LNG operations in Qatar and Indonesia with a combined gross
capacity of approximately 35 million tons per year (representing about 20% of global industry capacity), supplying
LNG to markets in Asia, Europe, and North America. ExxonMobil is also constructing four additional trains in Qatar
that will increase gross capacity by over 30 million tons per year.
The gas demand in the Asia Pacific region is expected to grow faster than any other region of the world at about 3.2%
per year through 2030. ExxonMobil is one of the largest suppliers to local markets of Australia and Malaysia, and also
provides local supplies to markets in Thailand, Russia, the Far East and Qatar. The majority of hydrocarbon demand

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is expected to be driven by the emerging Asian markets. ExxonMobil is well positioned to take advantage of emerging
growth opportunities worldwide.
Opportunity - Expansion through Inorganic Growth
ExxonMobil is a large international oil and gas company and has a presence across value chain has the potential to
gain market share and expand its operations through acquisitions or partnerships. The valuation of assets of
companies has decreased significantly as a result of the economic crisis and volatility in the crude oil price. Valuation
of many small and mid-size oil and gas companies has decreased considerably and these companies are available
for acquisition by big cash rich players. In 2010, the company acquired XTO energy, an oil and gas company for a
consideration of USD 41,000 million. This acquisition will provide ExxonMobil an competitive edge over its
competitors in the field of unconventional sources.
Opportunity - Deep Offshore- Growth Area for the Long Term
As the company is active in deep offshore drilling, it stands to gain from the growth of this market in long run. Deep
and ultra deep offshore oil and gas projects are attracting increased attention in the wake of the inevitable production
decline in the conventional oil and gas resources. The decline in the oil reserves worldwide is challenging oil and gas
companies to seek new fields in order to maintain their current oil production levels. Furthermore, there has been
renewed interest in recent times due to the advancement in extraction and processing technologies and a significant
rise in the price of oil and gas. In addition, due to the depletion of onshore reserves, exploration and production
activity is moving towards deep and ultra deep offshore areas.
Opportunity - Opportunities in Unconventional Energy Sources
According to in-house research, new and emerging frontiers will increasingly add to the supply of oil and gas in 2010.
ExxonMobil's Upstream segment is engaged in following unconventional energy sources: Heavy Oil/Oil Sands,
Unconventional Gas and Acid/Sour Gas. Unconventional oil and gas projects are attracting increased attention with a
decline in production from conventional oil and gas sources. There has been renewed interest in recent times due to
the advancement in extraction and processing technologies and a significant rise in the price of oil and gas. Following
this, there have been considerable investments in the production of oil and gas from unconventional sources.

Exxon Mobil Corporation - Threats

Threat - Natural Disasters


ExxonMobil has exploration and production operations in Alaska, the Gulf Coast, the Gulf of Mexico, California and
the Mid-continent region. Some of the areas, in which the company operates, are prone to natural disasters. For
instance, ExxonMobil’s Gulf of Mexico facilities were damaged during the hurricanes Katrina and Rita in 2005. The
company’s significant operations in the Gulf of Mexico and the coastal US could be adversely affected by hurricanes
in future as well. Powerful tropical storms and hurricanes are forecast to strike the Gulf Coast in coming years,
threatening an area still recovering from the worst natural disaster in the US history. The company’s operations in the
Gulf of Mexico are prone to disruption from hurricanes, which may significantly increase the company’s business
costs, as the company might have to rebuild a part of its infrastructure repeatedly.
Threat - Downturn in the Refining Sector
The global refining industry is witnessing a slump following the global economic downturn after a rise in the past few
years. Uncertain product demand due to the economic downturn, decreasing refinery margins and surplus refining
capacity have a combined negative effect on profitability from refining operations. These trends will continue to cast a
shadow of uncertainty over the future of refinery margins, thereby making the refining sector unattractive for the
company.

The decrease in the demand for petroleum products and low refinery margins forced many companies to cut
throughput rates in their refineries or temporarily shut down the refineries. Furthermore, the prices of crude oil and
petroleum products have dropped drastically from the peak of 2008, affecting the profitability of refineries. The
meltdown in the financial sector has also made it difficult to raise finance for capital intensive refinery projects. While
the situation has stabilized in 2010, these have prompted many companies to postpone or cancel their refinery
investment plans.
Threat - US Energy Policy
The government’s proposed increase in taxes, and new oil and gas leasing policy may affect the earnings and growth
of oil and gas companies such as this. The US energy policy highlights a considerable shift from the fossil fuel driven
economy to an economy fuelled by renewable energy.

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The Obama administration has proposed various measures for increasing taxes on the US oil and gas industry. The
key measures include elimination of tax breaks such as the intangible drilling and development costs, percentage
depletion and manufacturing deduction. By 2019, these measures will increase the expenses of US oil and gas
companies to approximately $31 billion, according to in-house forecasts.

Moreover, in January 2010, the US’ interior secretary Ken Salazar announced amendments to the existing oil and gas
leasing policy. The leasing policy might make domestic oil and gas explorations difficult. As per the new regulations,
the leasing process will undergo internal and external scrutiny, verification of conformance to a Resource
Management Plan; have greater public participation and industry participation and comprise larger environmental
review procedures.
Threat - Threat to Oil Sand Industry
Low oil prices and environmental implications prove a dampener for companies active in oil sand exploration such as
this. There has been much impact on the environment due to the exploration of oil sands. Exploration activities have
influenced wildlife and water bodies. Oil sand operations generate toxic waste during the extraction process that
comprise water, sand, clay, small amounts of bitumen, and naturally occurring organic compounds, salt and traces of
metals. Furthermore, the amount of natural gas used by the Canadian oil sands industry is equivalent to the daily
consumption of 3.2 million Canadian homes, which contributes to increased carbon emission.

Additionally, the oil sands industry is more capital intensive than traditional oil exploration projects. The Canadian oil
sands industry needs an oil price in the range of USD 50–65, depending on the location, in order to be profitable.
However, the huge fall in the oil prices since the financial crisis has made many oil sands projects uneconomical. In
addition, the global economic slowdown and an uncertain future demand and price outlook have decreased the
attractiveness of the oil sands industry.
Threat - Rising Capital Costs in the Refining Sector
There was a significant pressure on refining margins due to the recessionary conditions. ExxonMobil operates 37
refineries in 21 countries. Refineries worldwide are becoming more complex and flexible in allowing refiners to
process different qualities of crude. Even in developing countries, petroleum product quality norms are getting more
stringent, which is resulting in an increase in costs for building secondary conversion units such as fluid catalytic
crackers, hydro crackers and cokers. Additionally, shifting yield patterns in favor of light and middle distillates instead
of fuel oil also require huge investments to upgrade simple refineries into complex ones for some companies.

NOTE:
* Sector average represents top companies within the specified sector
The above strategic analysis is based on in-house research and reflects the publishers opinion only

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Exxon Mobil Corporation - Key Competitors
Exxon Mobil Corporation, Key Competitors
Name Headquarters Revenue (US$ m)
Royal Dutch Shell plc Netherlands 278,188

ConocoPhillips United States 152,840

TOTAL S.A. France 155,768

China Petrochemical Corporation China (Estimated) 211,862

BP p.l.c. United Kingdom 243,965


Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Section 3 – Company Financial Ratios
Financial Ratios - Capital Market Ratios

Exxon Mobil Corporation, Ratios based on current share price


Key Ratios 06-Oct-2010
P/E (Price/Earnings) Ratio 16.08

EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and 7.24


Amortization)
Enterprise Value/Sales 1.09

Enterprise Value/Operating Profit 9.72

Enterprise Value/Total Assets 1.45

Dividend Yield 0.03


Note: Above ratios are based on share price as of 06-Oct-2010, the above ratios are absolute numbers
Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

Financial Ratios - Annual Ratios

Exxon Mobil Corporation, Annual Ratios


Key Ratios Unit/Currency 2005 2006 2007 2008 2009
Equity Ratios
EPS (Earnings per Share) USD 5.71 6.62 7.26 8.66 3.98

Dividend per Share USD 1.14 1.28 1.37 1.55 1.66

Dividend Cover Absolute 5.01 5.17 5.30 5.59 2.40

Book Value per Share USD 18.21 19.87 22.62 22.70 23.39

Cash Value per Share USD 4.70 4.93 6.31 6.32 2.26
Profitability Ratios
Gross Margin % 31.34 32.57 31.45 28.85 28.89

Operating Margin % 16.03 17.85 17.67 17.47 11.20

Net Profit Margin % 9.75 10.46 10.04 9.47 6.21

Profit Markup % 47.85 50.74 48.35 42.79 42.37

PBT Margin (Profit Before Tax) % 16.03 17.85 17.67 17.47 11.20

Return on Equity % 32.50 34.70 33.35 40.03 17.44

Return on Capital Employed % 36.68 39.60 38.90 46.60 19.19

Return on Assets % 17.34 18.04 16.78 19.83 8.26

Return on Fixed Assets % 44.03 47.06 45.78 53.53 19.53

Return on Working Capital % 219.83 250.01 258.50 360 1,095.68


Growth Ratios
Sales Growth % 23.25 1.81 6.80 17.74 -34.40

Operating Income Growth % 44.11 13.41 6.05 16.67 -58.30

EBITDA Growth % 36.62 13.11 6.23 14.39 -51.25

Net Income Growth % 42.64 9.33 2.81 11.35 -57.36

EPS Growth % 47.08 15.77 9.72 19.31 -53.90

Working Capital Growth % 55.41 -0.28 2.56 -16.22 -86.30


Cost Ratios
Operating Costs (% of Sales) % 83.97 82.15 82.33 82.53 88.80

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Administration Costs (% of Sales) % 15.10 14.16 13.80 12.06 15.96
Liquidity Ratios
Current Ratio Absolute 1.58 1.55 1.47 1.47 1.06

Quick Ratio Absolute 1.38 1.33 1.28 1.23 0.84

Cash Ratio Absolute 0.62 0.58 0.59 0.65 0.21


Leverage Ratios
Debt to Equity Ratio % 7.19 7.33 7.86 8.34 8.69

Net Debt to Equity % -18.60 -17.48 -20.05 -19.49 -0.98

Debt to Capital Ratio % 4.93 4.90 5.21 5.27 5.30


Efficiency Ratios
Asset Turnover Absolute 1.78 1.72 1.67 2.09 1.33

Fixed Asset Turnover Absolute 3.46 3.32 3.35 3.93 2.23

Inventory Turnover Absolute 26.05 22.63 23.73 27.64 18.33

Current Asset Turnover Absolute 5.05 4.98 4.71 6.61 5.62

Capital Employed Turnover Absolute 3.33 3.32 3.32 4.23 2.81

Working Capital Turnover Absolute 13.71 14.01 14.63 20.61 97.85

Revenue per Employee USD 3,736,059

Net Income per Employee USD 238,910

Capex to Sales % 3.73 4.09 3.80 4.05 7.24

R&D to Sales % 0.26 0.31 0.36 0.30 0.65


Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Performance Chart

Exxon Mobil Corporation, Performance Chart (2005 - 2009)

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

Financial Performance

The company reported revenues of (U.S. Dollars) USD 310,586.00 million during the fiscal year ended December 2009, a
decrease of 34.94% from 2008. The operating profit of the company was USD 34,777.00 million during the fiscal year 2009, a
decrease of 58.30% from 2008. The net profit of the company was USD 19,280.00 million during the fiscal year 2009, a decrease
of 57.36% from 2008.

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Financial Ratios - Interim Ratios

Exxon Mobil Corporation, Interim Ratios


Key Ratios Unit/Currency Jun-2009 Sep-2009 Dec-2009 Mar-2010 Jun-2010
Interim EPS (Earnings per Share) USD 0.81 0.98 1.27 1.33 1.60

Dividend per Share USD 0.42 0.42 0.42 0.42 0.44

Book Value per Share USD 22.18 22.60 23.39 23.95 27.53

Gross Margin % 28.23 28.57 27.56 27.70 28.01

Operating Margin % 10.10 11.19 11.36 13.37 13.74

Net Profit Margin % 5.31 5.75 6.73 6.98 8.17

Profit Markup % 41.09 41.52 39.72 40.30 40.60

PBT Margin (Profit Before Tax) % 10.10 11.19 11.36 13.37 13.74

Operating Costs (% of Sales) % 89.90 88.81 88.64 86.63 86.26

Administration Costs (% of Sales) % 16.06 15.78 14.88 13.44 13.17

Current Ratio Absolute 1.15 1.08 1.06 1.07 1.08

Quick Ratio Absolute 0.91 0.85 0.84 0.83 0.84

Debt to Equity Ratio % 8.70 8.95 8.69 8.40 14.58

Net Debt to Equity % -5.91 -2.67 -0.98 -3.81 5.12

Debt to Capital Ratio % 5.36 5.44 5.30 5.11 8.76

Asset Turnover Absolute 0.29 0.33 0.36 0.39

Current Asset Turnover Absolute 0.99 1.25 1.44 1.63

Working Capital Turnover Absolute 4.18 9.45 18.73 28.31

Net Income per Employee USD 56,946.18 49,436.80 59,199 75,719.65


Source: Annual Report, Company Website, Primary and Secondary Research
GlobalData

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Financial Ratios - Ratio Charts
Exxon Mobil Corporation, Ratio Charts

EPS Operating Margin

Return on Equity Return on Assets

Debt to Equity Ratio Current Ratio

Source: Annual Report, Company Website, Primary and Secondary Research


GlobalData

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Section 4 – Company’s Recent Developments

Oct 05, 2010: BAM Clough Receives Additional LoI For PNG LNG Jetty Topsides

Clough Limited (Clough) said that the BAM Clough joint venture has received an additional letter of intent (LoI) from
Chiyoda JGC joint venture for the fabrication and construction of the topsides for the PNG LNG condensate offloading
jetty. The second contract is valued at around $53 million, bringing the total value of contracts awarded to BAM
Clough for the PNG LNG jetty project to $308 million.

The topsides will be fabricated and assembled at Clough's Sattahip fabrication yard in Thailand, and will be
transported and installed at the jetty site, 20km northwest of Port Moresby.

John Smith, CEO of Clough, said: "Clough and our long-term partner BAM International are delighted to be given the
opportunity to deliver the topsides for this EPC project, which will provide continuity of quality work for our yard in
Thailand."

BAM Clough JV is a 50/50 joint venture between BAM International bv and Clough Operations Pty Ltd., a wholly-
owned subsidiary of Clough.

The PNG LNG project is an integrated development that includes gas production and processing facilities, onshore
and offshore pipelines and liquefaction facility with the capacity of 6.6 mtpa.

Participating interests include affiliates of ExxonMobil (33.2%), Oil Search Limited (29%), Independent Public
Business Corporation (PNG Government-16.6%), Santos Limited (13.5%), Nippon Oil Exploration (4.7%), Mineral
Resources Development Company (PNG landowners-2.8%) and Petromin PNG Holding Limited (0.2%).

Oct 01, 2010: Bapco Receives Bids For LNG Terminal In Bahrain

Bahrain Petroleum Company (Bapco) has received prequalification bids from local and international firms to build an
LNG import terminal that is estimated to cost over $1 billion, reported Steel Guru, citing MEED. The company is
expected to unveil the tenders by the fourth of 2010 and successful bidder by the first of 2011.

The project includes setting up a ship unloading system, LNG storage tanks, regasification and send out system,
marine works, a jetty and other associated works.

Companies bidding for prequalification for the project include: Punj Lloyd, Italian-Thai Development, Excelerate
Energy, Golar LNG Energy, Vitol Bahrain, Shell, IM Skaugen, China Harbour Engineering Company, Al-Hassanain
Company, GDF Suez Development, BG American & Global, Hess LNG, Samsung Construction & Trading, Tecnicas
Reunidas, Exxon Mobil Corporation, Mitsubishi Corporation, Korea Gas Corporation, BP Gas Marketing, Mitsui &
Co./JGC Corporation, Chevron Corporation and IHI Corporation.

Sep 29, 2010: ExxonMobil Announces Odoptu Production Startup At Sakhalin-1 Project In Russia

Exxon Mobil Corporation (ExxonMobil) has announced the startup of production from the Odoptu field at the
Sakhalin-1 project offshore northeastern Russia. ExxonMobil subsidiary Exxon Neftegas Limited (ENL) is operator on
behalf of the five-company international Sakhalin-1 consortium.

The Odoptu field is expected to add up to 11 million barrels (1.5 million tons) to Sakhalin-1 oil production in 2011. The
startup is on schedule and within development cost expectations.

Neil W. Duffin, president of ExxonMobil Development Company, said: "This is yet another milestone in Sakhalin-1
project achievements. The Sakhalin-1 project is one of the largest energy investments in Russia and is a testament to
international cooperation.

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"The project applies industry-leading technology to successfully operate in a safe and environmentally responsible
manner in one of the most challenging sub-arctic environments in the world, while providing important economic
benefits to Russia."

Development of the Odoptu field has included world-class performance in the drilling and completion of seven
extended-reach wells. The Sakhalin-1 project employs one of the world's most powerful land-based rigs, which drilled
horizontally under the Sea of Okhotsk to the Odoptu oil reservoir over five miles (9km) offshore, said ExxonMobil.

Additional activities in the development of Odoptu included the construction of a new onshore oil and gas treatment
facility and flowline connection to the existing Chayvo onshore processing facility.

The Sakhalin-1 project includes the phased development of the Chayvo, Odoptu and Arkutun-Dagi fields, with an
estimated total resource of 2.3 billion barrels (307 million tons) of oil and 17 trillion cubic feet (485 billion cubic
meters) of natural gas. The Chayvo field, which was the initial phase of the Sakhalin-1 project, began production in
2005.

Future project phases call for the development of the Arkutun-Dagi field as well as expanded gas production and
sales from the Chayvo field. These later project developments will sustain production well into the future.

Since startup, the Sakhalin-1 project has produced over 270 million barrels (35.4 million tons) of oil for export to world
markets. It also has been a key supplier of over 210 billion cubic feet (six billion cubic meters) of associated natural
gas to customers in Khabarovsk Krai, in far eastern Russia, to heat homes and meet growing energy needs. The
project will continue to help meet future natural gas demand in this region.

The Sakhalin-1 consortium includes ENL (30% interest)Sakhalin Oil and Gas Development Co. Ltd. (SODECO,
30%)affiliates of Rosneft, RN-Astra (8.5%), Sakhalinmorneftegas-Shelf (11.5%) and ONGC Videsh Ltd. (20%).

Sep 23, 2010: Leighton To Deliver Civil And Underground Works For Gorgon Project

Leighton Contractors Pty Limited (Leighton) has been awarded a contract by Chevron Australia to deliver the civil and
underground works package for the Gorgon project, valued at more than $800 million. The contract win is in addition
to the company's current work in hand at the Gorgon project where the company is completing works on the 2.1km
LNG jetty and marine structures in consortium with Saipem.

Craig Laslett, managing director for Leighton, said: "We have a genuine commitment to deliver the project with the
highest standard of safety and to provide the expertise and services required to develop Australia's energy needs in
line with sustainable economic development."

Ray Sputore, general manager of Leighton western region, said: "Leighton has strong experience working with oil and
gas clients, and a skilled team to ensure our contribution is world-class. Being the largest single resources project in
Australia, we will be drawing on our pool of skilled workers as well as new talent to meet the peak target of 1,500
employees across both Leighton contracts.

"It is an exciting time for Leighton and we are proud to be involved in such an iconic West Australian project."

The contract scope includes earthworks, in-situ and precast concrete and underground services--including drainage,
piping and electrical and instrumentation cabling which will be installed within the LNG plant site.

The team will commence work immediately are expected to be complete by mid 2013.

The Gorgon Project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian
subsidiaries of Chevron (around 47%), ExxonMobil (25%) and Shell (25%), Osaka Gas (1.25%), Tokyo Gas (1%) and
Chubu Electric Power (0.417%).
Sep 21, 2010: ExxonMobil Awards MZST License To Calfrac Well Services
ExxonMobil Corporation (ExxonMobil) has announced the licensing of its Multi-Zone Stimulation Technology (MZST)
well treatment process to Calfrac Well Services Ltd. (Calfrac Well Services). The MZST process can be used to
rapidly and reliably stimulate multiple reservoir zones in a single operation, yielding improved well economics.

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The MZST process was developed by ExxonMobil Upstream Research Company in Houston, Texas.

The MZST process can be particularly beneficial for fracturing operations in tight gas, shale gas, and coal bed
methane wells that target multiple reservoir zones, thick reservoir sections, or long reservoir intervals where multiple
stimulation treatments are required, said ExxonMobil.

The MZST process will enable Calfrac Well Services to optimize its stimulation operations by combining the
deployment of perforating and fracturing equipment simultaneously in the wellbore to enable single-trip, multi-zone
stimulations. The technology dramatically increases the number of zones that can be fractured per day compared to
conventional fracturing and stimulation operations.

Sara Ortwein, president of ExxonMobil Upstream Research Company, said: "For a variety of unconventional plays
ExxonMobil’s MZST process continues to be a premier technology for rapidly moving from drilled well to completed
production well. The track record of the MZST process for cost effective and efficient operations is a testament to the
value of the technology and the reason service companies choose to license the technology from ExxonMobil."

Doug Ramsay, president and CEO of Calfrac Well Services, said: "We are pleased to add this proven stimulation
technology to our portfolio and plan to promote the effectiveness and efficiency of using the ExxonMobil MZST
process with our many customers throughout Canada and the US."

Sep 20, 2010: ExxonMobil Announces Equipment For Industry Use Through MWCC

Exxon Mobil Corporation (ExxonMobil), on behalf of the Marine Well Containment Company (MWCC), has
announced an agreement with BP to provide its underwater well containment equipment to MWCC as part of BP's
intent to join the new organization. Chevron, ConocoPhillips, ExxonMobil and Shell are establishing the MWCC to
provide emergency response services in the US Gulf of Mexico.

As part of the agreement, the BP equipment will be made available to all oil and gas companies operating in the US
Gulf of Mexico.

The equipment could be deployed to capture and contain oil from a potential underwater well blowout while the new
rapid-response system announced in July is being developed.

Lloyd Guillory, marine well containment system project executive, said: "We are working quickly and effectively in an
unprecedented effort to improve incident preparedness. Our progress since we announced the system demonstrates
the commitment of our companies to make equipment immediately available for incident response."

The existing BP equipment is being assessed for use in near-term response capability. The sponsor companies'
project team will utilize full time BP technical personnel with experience from the Gulf of Mexico response.

Guillory said: "This and other equipment that the project expects to acquire will enable us to preserve and secure
existing capability for use by the oil and gas industry in the US Gulf of Mexico while we build the new system that
exceeds current response capabilities."

Richard Morrison, BP vice president for Gulf of Mexico operations, said: "We are pleased to provide the experience
and specialized equipment needed to respond to a deepwater well control incident and intend to join the MWCC. We
believe the addition of our recently gained deepwater intervention experience and specialized equipment will be
important to the marine well containment system."

Sep 16, 2010: ExxonMobils's Deepwater Exploration Well Commercially Not Viable

ExxonMobil Corporation (ExxonMobil) has drilled a deepwater exploration well, offshore Libya, which was
commercially not viable, Reuters reported. The well was first announced in 2009 with the collaboration between
ExxonMobil and National Oil Corporation of Libya.
Sep 14, 2010: MMA Secures Gorgon Fuel Transportation Contract

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Mermaid Marine Australia Ltd. (MMA) has been awarded a three-year contract by the Chevron operated Gorgon
project, commencing in the second quarter of 2011. The contract involves the provision of a towing tug, a landing
craft (LCT) and a barge suitably modified to transport fuel from mainland Australia to Barrow Island in support of the
Gorgon project.

The contract will generate revenue in excess of AUD80 million over the initial three-year term and includes an option
to extend for a further 12 months.

In July 2010, MMA was awarded a further two contracts related to the Gorgon project to transport cargo and water
respectively from mainland Australia to Barrow Island. The contract for the transportation of cargo from MMA's
Dampier supply base to Barrow Island involves the provision of one towing tug and two barges for an initial term of 15
months, commencing mid 2010. The contract for the transportation of water to Barrow Island is for a term of nine
months later in 2010 and involves the provision of one towing tug and two barges.

Jeff Weber, managing director of MMA, said: "All three operations represent an exciting development for MMA and
we are proud to be able to support Chevron and the Gorgon project as it continues to progress.

"MMA has extensive experience in conducting tug and barge operations in the region and with the company also
providing stevedoring and related services to the Gorgon project on our Dampier supply base, we are able to
integrate the marine supply chain and ensure security of supply to Barrow Island."

The Gorgon project is operated by an Australian subsidiary of Chevron and is a joint venture of the Australian
subsidiaries of Chevron (approximately 47%), ExxonMobil (25%) and Shell (25%), Osaka Gas (1.25%), Tokyo Gas
(1%) and Chubu Electric Power (0.417%).

Sep 02, 2010: CCJV Wins AUD250 Million Work Order For LNG Upstream Infrastructure In Papua New Guinea
Clough Limited (Clough) said that the Clough Curtain joint venture (CCJV) has received firm work orders worth
AUD250 million associated with the upstream infrastructure contract awarded on May 1, 2009. The total value of work
awarded to CCJV on the upstream infrastructure project now stands at AUD560 million.

The PNG LNG project is an integrated development that includes gas production and processing facilities, onshore
and offshore pipelines and liquefaction facilities. Participating interests are affiliates of Exxon Mobil Corporation
(including Esso Highlands Limited as operator, 33.2%), Oil Search Limited (29%), Independent Public Business
Corporation (PNG Ggovernment, 16.6%), Santos Limited (13.5%), Nippon Oil Exploration (4.7%), Mineral Resources
Development Company (PNG landowners, 2.8%) and Petromin PNG Holdings Limited (0.2%).

Sep 01, 2010: WorleyParsons Receives Contract From ExxonMobil For Hebron Project In Canada
WorleyParsons Limited (WorleyParsons) has been awarded a contract by ExxonMobil Canada Properties
(ExxonMobil) for the topsides on the Hebron project. The contract is for front end engineering and design (FEED),
with the option at ExxonMobil’s discretion to subsequently provide detailed engineering, procurement and
construction (EPC) services.

The Hebron field is an oil and gas development in the Atlantic Ocean located 350km offshore from St. John’s in
Newfoundland and Labrador, Canada.ExxonMobil has approved $61 million for FEED to be completed through 2011.
WorleyParsons estimates the services revenue under the full FEED/EPC contract to be $285 million over five years.

WorleyParsons will provide overall project management of the contract with subcontracts to be awarded to multiple
third parties, with a special emphasis on performing work in Newfoundland and Labrador in accordance with Hebron
Project benefits commitments. WorleyParsons will work with ExxonMobil to deliver on this and other benefits
commitments, including those related to procurement, supplier development, education and training, research and
development, and gender equity and diversity.

John Grill, CEO of WorleyParsons, said: “WorleyParsons is excited to be selected by ExxonMobil Canada Properties
for the complex Hebron Project which will utilize our proven expertise in sub-Arctic floatover topsides.”

Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

Source : www.globalcompanyintelligence.com Page 40


Section 5 – Appendix

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Methodology
GlobalData company reports are based on a core set of research techniques which ensure the best possible level of
quality and accuracy of data. The key sources used include:
 Company Websites
 Company Annual Reports
 SEC Filings
 Press Releases
 Proprietary Databases

Currency Codes
Currency Code Currency
USD U.S. Dollars
GlobalData

Ratio Definitions

Capital Market Ratios

Capital Market Ratios measure investor response to owning a company's stock and also the cost of issuing stock.
Price/Earnings Ratio Price/Earnings (P/E) ratio is a measure of the price paid for a share relative to the annual income
(P/E) earned per share. It is a financial ratio used for valuation: a higher P/E ratio means that investors
are paying more for each unit of income, so the stock is more expensive compared to one with
lower P/E ratio. A high P/E suggests that investors are expecting higher earnings growth in the
future compared to companies with a lower P/E. Price per share is as of previous business close,
and EPS is from latest annual report.
Calculation: Price per Share / Earnings per Share
Enterprise Enterprise Value/EBITDA (EV/EBITDA) is a valuation multiple that is often used in parallel with, or
Value/Earnings as an alternative to, the P/E ratio. The main advantage of EV/EBITDA over the PE ratio is that it is
before Interest, Tax, unaffected by a company's capital structure. It compares the value of a business, free of debt, to
Depreciation & earnings before interest. Price per share is as of previous business close, and shares outstanding
Amortization last reported. Other items are from latest annual report.
(EV/EBITDA)
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / (Net Income +
Interest + Tax + Depreciation + Amortization)
Enterprise Enterprise Value/Sales (EV/Sales) is a ratio that provides an idea of how much it costs to buy the
Value/Sales company's sales. EV/Sales is seen as more accurate than Price/Sales because market
capitalization does not take into account the amount of debt a company has, which needs to be
paid back at some point. Price per share is as of previous business close, and shares outstanding
last reported. Other items are from latest annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Sales
Enterprise Enterprise Value/Operating Profit measures the company's enterprise value to the operating profit.
Value/Operating Price per share is as of previous business close, and shares outstanding last reported. Other items
Profit are from latest annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Operating Income

Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

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Enterprise Enterprise Value/Total Assets measures the company's enterprise value to the total assets. Price
Value/Total Assets per share is as of previous business close, and shares outstanding last reported. Other items are
from latest annual report.
Calculation: (Market Cap + Debt + Preferred Stock - Cash & Cash Equivalents) / Total Assets
Dividend Yield Dividend Yield shows how much a company pays out in dividends each year relative to its share
price. In the absence of any capital gains, the dividend yield is the return on investment for a stock.
Calculation: Annual Dividend per Share / Price per Share
GlobalData

Equity Ratios

These ratios are based on per share value.


Earnings per Share Earnings per share (EPS) is the portion of a company's profit allocated to each outstanding share
(EPS) of common stock. EPS serves as an indicator of a company's profitability.
Calculation: Net Income / Weighted Average Shares
Dividend per Share Dividend is the distribution of a portion of a company's earnings, decided by the board of directors,
to a class of its shareholders.
Dividend Cover Dividend cover is the ratio of company's earnings (net income) over the dividend paid to
shareholders.
Calculation: Earnings per share / Dividend per share
Book Value per Share Book Value per Share measure used by owners of common shares in a firm to determine the level
of safety associated with each individual share after all debts are paid accordingly.
Calculation: (Shareholders Equity - Preferred Equity) / Outstanding Shares
Cash Value per Share Cash Value per Share is a measure of a company's cash (cash & equivalents on the balance
sheet) that is determined by dividing cash & equivalents by the total shares outstanding.
Calculation: Cash & equivalents / Outstanding Shares
GlobalData

Profitability Ratios

Profitability Ratios are used to assess a company's ability to generate earnings, based on revenues generated or resources
used. For most of these ratios, having a higher value relative to a competitor's ratio or the same ratio from a previous period
is indicative that the company is doing well.
Gross Margin Gross margin is the amount of contribution to the business enterprise, after paying for direct-fixed
and direct-variable unit costs.
Calculation: {(Revenue-Cost of revenue) / Revenue}*100
Operating Margin Operating Margin is a ratio used to measure a company's pricing strategy and operating efficiency.
Calculation: (Operating Income / Revenues) *100
Net Profit Margin Net Profit Margin is the ratio of net profits to revenues for a company or business segment - that
shows how much of each dollar earned by the company is translated into profits.
Calculation: (Net Profit / Revenues) *100
Profit Markup Profit Markup measures the company's gross profitability, as compared to the cost of revenue.
Calculation: Gross Income / Cost of Revenue
PBIT Margin (Profit Profit Before Interest & Tax Margin shows the profitability of the company before interest expense
Before Interest & Tax) & taxation.
Calculation: {(Net Profit+Interest+Tax) / Revenue} *100
PBT Margin (Profit Profit Before Tax Margin measures the pre-tax income over revenues.
Before Tax)
Calculation: {Income Before Tax / Revenues} *100

Return on Equity Return on Equity measures the rate of return on the ownership interest (shareholders' equity) of
the common stock owners.
Calculation: (Net Income / Shareholders Equity)*100
Return on Capital Return on Capital Employed is a ratio that indicates the efficiency and profitability of a company's

Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

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Employed capital investments. ROCE should always be higher than the rate at which the company borrows;
otherwise any increase in borrowing will reduce shareholders' earnings.
Calculation: EBIT / (Total Assets – Current Liabilities)*100
Return on Assets Return on Assets is an indicator of how profitable a company is relative to its total assets, the ratio
measures how efficient management is at using its assets to generate earnings.
Calculation: (Net Income / Total Assets)*100
Return on Fixed Return on Fixed Assets measures the company's profitability to its fixed assets (property, plant &
Assets equipment).
Calculation: (Net Income / Fixed Assets) *100
Return on Working Return on Working Capital measures the company's profitability to its working capital.
Capital
Calculation: (Net Income / Working Capital) *100
GlobalData

Cost Ratios

Cost ratios help to understand the costs the company is incurring as a percentage of sales.
Operating costs (% of Operating costs as percentage of total revenues measures the operating costs that a company
Sales) incurs compared to the revenues.
Calculation: (Operating Expenses / Revenues) *100
Administration costs Administration costs as percentage of total revenue measures the selling, general and
(% of Sales) administrative expenses that a company incurs compared to the revenues.
Calculation: (Administrative Expenses / Revenues) *100
Interest costs (% of Interest costs as percentage of total revenues measures the interest expense that a company
Sales) incurs compared to the revenues.
Calculation: (Interest Expenses / Revenues) *100
GlobalData

Liquidity Ratios

Liquidity ratios are used to determine a company's ability to pay off its short-terms debts obligations. Generally, the higher
the value of the ratio, the larger the margin of safety that the company possesses to cover short-term debts. A company's
ability to turn short-term assets into cash to cover debts is of the utmost importance when creditors are seeking payment.
Bankruptcy analysts and mortgage originators frequently use the liquidity ratios to determine whether a company will be
able to continue as a going concern.
Current Ratio Current Ratio measures a company's ability to pay its short-term obligations. The ratio gives an
idea of the company's ability to pay back its short-term liabilities (debt and payables) with its short-
term assets (cash, inventory, receivables). The higher the current ratio, the more capable the
company is of paying its obligations. A ratio under 1 suggests that the company would be unable to
pay off its obligations if they came due at that point.
Calculation: Current Assets / Current Liabilities
Quick Ratio Quick ratio measures a company's ability to meet its short-term obligations with its most liquid
assets.
Calculation: (Current Assets - Inventories) / Current Liabilities
Cash Ratio Cash ratio is the most stringent and conservative of the three short-term liquidity ratio. It only looks
at the most liquid short-term assets of the company, which are those that can be most easily used
to pay off current obligations. It also ignores inventory and receivables, as there are no assurances
that these two accounts can be converted to cash in a timely matter to meet current liabilities.
Calculation: {(Cash & Bank Balance + Marketable Securities) / Current Liabilities)}
GlobalData

Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

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Leverage Ratios

Leverage ratios are used to calculate the financial leverage of a company to get an idea of the company's methods of
financing or to measure its ability to meet financial obligations. There are several different ratios, but the main factors looked
at include debt, equity, assets and interest expenses.
Debt to Equity Ratio Debt to Equity Ratio is a measure of a company's financial leverage. The debt/equity ratio also
depends on the industry in which the company operates. For example, capital-intensive industries
tend to have a higher debt-equity ratio.
Calculation: Total Liabilities / Shareholders Equity
Debt to Capital Ratio Debt to capital ratio gives an idea of a company's financial structure, or how it is financing its
operations, along with some insight into its financial strength. The higher the debt-to-capital ratio,
the more debt the company has compared to its equity. This indicates to investors whether a
company is more prone to using debt financing or equity financing. A company with high debt-to-
capital ratios, compared to a general or industry average, may show weak financial strength
because the cost of these debts may weigh on the company and increase its default risk.
Calculation: {Total Debt / (Total assets - Current Liabilities)}
Interest Coverage Interest Coverage Ratio is used to determine how easily a company can pay interest on
Ratio outstanding debt, calculated as earnings before interest & tax by interest expense.
Calculation: EBIT / Interest Expense
GlobalData

Efficiency Ratios

Efficiency ratios measure a company's effectiveness in various areas of its operations, essentially looking at maximizing its
use of resources.
Fixed Asset Turnover Fixed Asset Turnover ratio indicates how well the business is using its fixed assets to generate
sales. A higher ratio indicates the business has less money tied up in fixed assets for each
currency unit of sales revenue. A declining ratio may indicate that the business is over-invested in
plant, equipment, or other fixed assets.
Calculation: Net Sales / Fixed Assets
Asset Turnover Asset turnover ratio measures the efficiency of a company's use of its assets in generating sales
revenue to the company. A higher asset turnover ratio shows that the company has been more
effective in using its assets to generate revenues.
Calculation: Net Sales / Total Assets
Current Asset Current Asset Turnover indicates how efficiently the business uses its current assets to generate
Turnover sales.
Calculation: Net Sales / Current Assets
Inventory Turnover Inventory Turnover ratio shows how many times a company's inventory is sold and replaced over a
period. A low turnover implies poor sales and, therefore, excess inventory. A high ratio implies
either strong sales or ineffective buying.
Calculation: Cost of Goods Sold / Inventory
Working Capital Working Capital Turnover is a measurement to compare the depletion of working capital to the
Turnover generation of sales. This provides some useful information as to how effectively a company is
using its working capital to generate sales.
Calculation: Net Sales / Working Capital
Capital Employed Capital employed turnover ratio measures the efficiency of a company's use of its equity in
Turnover generating sales revenue to the company.
Calculation: Net Sales / Shareholders Equity
Capex to sales Capex to Sales ratio measures the company's expenditure (investments) on fixed and related
assets' effectiveness when compared to the sales generated.
Calculation: (Capital Expenditure / Sales) *100
Net income per Net income per Employee looks at a company's net income in relation to the number of employees
Employee they have. Ideally, a company wants a higher profit per employee possible, as it denotes higher
productivity.
Calculation: Net Income / No. of Employees

Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

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Revenue per Revenue per Employee measures the average revenue generated per employee of a company.
Employee This ratio is most useful when compared against other companies in the same industry. Generally,
a company seeks the highest revenue per employee.
Calculation: Revenue / No. of Employees
Efficiency Ratio Efficiency Ratio is used to calculate a bank's efficiency. An increase means the company is losing
a larger percentage of its income to expenses. If the efficiency ratio is getting lower, it is good for
the bank and its shareholders.
Calculation: Non-interest expense / Total Interest Income
GlobalData
Notes
 Financial information of the company is taken from the most recently published annual reports or SEC filings
 The financial and operational data reported for the company is as per the industry defined standards
 Revenue converted to USD at average annual conversion rate as of fiscal year end
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Exxon Mobil Corporation (XOM) - Financial and Strategic Analysis Review Reference Code: GDGE1203FSA

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