http://www.morningstar.com/earnings/51378578-exxon-mobil-corporation-xom-q1-2013.aspx

Exxon Mobil Corporation XOM
Q1 2013 Earnings Call Transcript

Transcript Call Date 04/25/2013

Operator: Please standby, we're about to begin. Good day and welcome to this ExxonMobil Corporation First Quarter 2013 Earnings Conference Call. Today's call is being recorded.

At this time for opening remarks, I would like to turn the call over to the Vice President of Investor Relations and Secretary, Mr. David Rosenthal. Please go ahead, sir.

David S. Rosenthal - VP, IR and Secretary: Good morning and welcome to ExxonMobil's first quarter earnings call and webcast. The focus of this call is ExxonMobil's financial and operating results for the first quarter of 2013. I will refer to the slides that are available through the Investors section of our website. But before we go further, I would like to draw your attention to our customary cautionary statement shown on Slide 2.

Moving to Slide 3, we provide an overview of some of the external factors impacting our results. Global economic growth was mixed throughout the first quarter. U.S. growth was flat to moderate and economic indicators were mixed. China experienced slower growth and the European economies remained challenge.

Energy markets strengthened in the first quarter, with higher crude oil and non-U.S. natural gas prices. U.S. natural gas prices remained relatively flat compared with the fourth quarter. Industry refining margins strengthened and we experienced improved chemical commodity product margins.

Turning now to the first quarter financial results as shown on Slide 4. ExxonMobil's first quarter 2013 earnings were $9.5 billion, an increase of $50 million from the first quarter of 2012 earnings per share for the quarter were $2.12 up $0.12 or 6% from a year ago. The corporation distributed $7.6 billion to shareholders in the first quarter through dividends and share purchases to reduce shares outstanding. Of that total $5 billion was used to purchase shares.

Yesterday, the Board of Directors declared a cash dividend of $0.63 per share a 10.5% increase from the last quarter. Share purchases to reduce shares outstanding are expected to be $4 billion in the second quarter of 2013. CapEx in the first quarter was $11.8 billion, up $2.9 billion from the first quarter of 2012 primarily due to the $3.1 billion Celtic acquisition.

Cash flow from operations in asset sales was $14 billion. At the end of the first quarter 2013 cash totaled 6.6 billion and debt was $13.4 billion.

The next slides provides additional detail on first quarter sources and uses of funds. Over the quarter, cash decreased from $9.9 billion to $6.6 billion. The combined impact of strong earnings, depreciation expense and the benefit of our ongoing asset management program yielded $14 billion of cash flow from operations and asset sales. The uses included additions to plant, property, and equipment or PP&E of $7.5 billion and shareholder distributions of $7.6 billion. Additional financing and investing activities decreased cash by $2.2 billion, primarily reflecting the Celtic acquisition.

Moving on to Slide 6 and a review of our segmented results, ExxonMobil's first quarter 2013 earnings of $9.5 billion increased $50 million from the first quarter of 2012. Higher chemical earnings and lower corporate and financing expenses, due primarily to favorable tax items, were mostly offset by lower Upstream earnings. Guidance for corporate and financing expenses remain at $500 million to $700 million per quarter.

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