OREANDA-NEWS. July 30, 2012.

EXXONMOBIL'S CHAIRMAN REX W. TILLERSON COMMENTED:

“Second quarter results reflect our ongoing commitment to develop and deliver the energy needed to help meet global demand and underpin economic recovery and growth. Despite global economic uncertainty, we continue to invest throughout the business cycle taking a long-term view of resource development.

“Second quarter earnings of USD 15.9 billion included a net gain of USD 7.5 billion associated with divestments and tax-related items. Excluding these items, second quarter earnings were USD 8.4 billion.

“Capital and exploration expenditures were \\$9.3 billion in the second quarter and a record USD 18.2 billion for the first six months of 2012 as we progress our plans to invest about USD 37 billion per year over the next five years to help meet the global demand for energy.

“The Corporation distributed USD 7.7 billion to shareholders in the second quarter through dividends and share purchases to reduce shares outstanding.”

SECOND QUARTER HIGHLIGHTS

Earnings of USD 15,910 million increased USD 5,230 million or 49% from the second quarter of 2011. Earnings included a net gain of USD 7.5 billion associated with divestments and tax-related items.

On June 1, ExxonMobil completed the restructuring of its Downstream and Chemical holdings in Japan. Under the restructuring, TonenGeneral Sekiyu K.K. (TG) purchased ExxonMobil’s shares in a wholly-owned affiliate in Japan for approximately USD 3.9 billion. As a result, ExxonMobil’s effective ownership of TG was reduced from 50% to 22%.

Earnings per share (assuming dilution) were USD 3.41, an increase of 56%.

Capital and exploration expenditures were USD 9.3 billion, down 9% from the second quarter of 2011.

Oil-equivalent production decreased 5.6% from the second quarter of 2011. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was essentially flat.

Cash flow from operations and asset sales was USD 13.9 billion, including proceeds associated with asset sales of USD 3.7 billion.

Share purchases to reduce shares outstanding were USD 5 billion.

Dividends per share of USD 0.57 increased 21% compared to the second quarter of 2011.

ExxonMobil and Rosneft signed agreements to jointly develop tight oil reserves in Western Siberia and establish a joint Arctic Research Center for Offshore Developments.

ExxonMobil has filed permit applications to progress plans for a world-class petrochemical expansion on the U.S. Gulf Coast, in anticipation of a 2016 start-up. The potential project would include a new ethane cracker and premium product facilities at ExxonMobil’s integrated Baytown complex in Texas.

ExxonMobil and joint venture partner Saudi Basic Industries Corporation will proceed with construction of a world-scale specialty elastomers facility. The 400 thousand metric tons per year facility will be integrated with the existing Al Jubail complex in Saudi Arabia, and completion is anticipated in 2015.

Second Quarter 2012 vs. Second Quarter 2011
Upstream earnings were USD 8,358 million, down USD 183 million from the second quarter of 2011. Lower liquids and U.S. natural gas realizations decreased earnings by \\$870 million, while lower sales volumes reduced earnings by USD 330 million. All other items, including gains on asset sales mainly in Angola, increased earnings by USD 1.0 billion.

On an oil-equivalent basis, production decreased 5.6% from the second quarter of 2011. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, production was essentially flat.

Liquids production totaled 2,208 kbd (thousands of barrels per day), down 143 kbd from the second quarter of 2011. Excluding the impacts of entitlement volumes, OPEC quota effects and divestments, liquids production was down about 1%, as field decline was mostly offset by lower downtime and ramp-up of Angola and Nigeria projects.

Second quarter natural gas production was 11,661 mcfd (millions of cubic feet per day), down 606 mcfd from 2011. Excluding the impacts of entitlement volumes and divestments, natural gas production was up about 1%, as higher demand and lower downtime more than offset field decline.

Earnings from U.S. Upstream operations were USD 678 million, USD 771 million lower than the second quarter of 2011. Non-U.S. Upstream earnings were USD 7,680 million, up \\$588 million from the prior year.

Downstream earnings of USD 6,646 million were up USD 5.3 billion from the second quarter of 2011. The gain associated with the Japan restructuring contributed USD 5.3 billion. Improved margins and volume and mix effects increased earnings by USD 670 million. All other items, including unfavorable foreign exchange effects, higher operating expenses, and one-time tax items, decreased earnings USD 670 million. Petroleum product sales of 6,171 kbd were 160 kbd lower than last year's second quarter.

Earnings from the U.S. Downstream were USD 834 million, up USD 100 million from the second quarter of 2011. Non-U.S. Downstream earnings of USD 5,812 million were USD 5,190 million higher than last year.

Chemical earnings of USD 1,449 million were USD 128 million higher than the second quarter of 2011. The gain associated with the Japan restructuring increased earnings by USD 630 million, while weaker margins decreased earnings by USD 150 million. Volume and mix effects lowered earnings by USD 100 million. All other items, mainly unfavorable foreign exchange effects, decreased earnings by USD 250 million. Second quarter prime product sales of 5,972 kt (thousands of metric tons) were 209 kt lower than last year's second quarter.

Corporate and financing expenses of USD 543 million were flat with the second quarter of 2011, as the benefit from the Japan restructuring was offset by one-time tax items.

During the second quarter of 2012, Exxon Mobil Corporation purchased 60 million shares of its common stock for the treasury to reduce the number of shares outstanding at a gross cost of USD 5.0 billion. Share purchases to reduce shares outstanding are currently anticipated to equal USD 5 billion in the third quarter of 2012. Purchases may be made in both the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.