EXHIBIT 13
FINANCIAL SECTION F1
Page
- ------------------------------------------------------------------------------
Business Profile...................................................... F2
Financial Review
Financial Summary................................................... F3
Management's Discussion and Analysis of Financial Condition and
Results of Operations.............................................. F4-F7
Consolidated Financial Statements
Balance Sheet....................................................... F8
Statement of Income................................................. F9
Statement of Shareholders' Equity................................... F9
Statement of Cash Flows............................................. F10
Report of Independent Accountants..................................... F11
Notes to Consolidated Financial Statements............................ F11-F20
1. Summary of Accounting Policies................................... F11
2. Accounting Changes............................................... F12
3. Miscellaneous Financial Information.............................. F12
4. Cash Flow Information............................................ F12
5. Additional Working Capital Data.................................. F12
6. Investments and Advances......................................... F12
7. Equity Company Information....................................... F13
8. Investment in Property, Plant and Equipment...................... F13
9. Leased Facilities................................................ F14
10. Capital.......................................................... F14
11. Leveraged Employee Stock Ownership Plan.......................... F14
12. Long-Term Debt................................................... F14
13. Interest Rate Swap and Currency Exchange Contracts............... F15
14. Litigation and Other Contingencies............................... F15
15. Other Postretirement Benefits.................................... F16
16. Annuity Benefits................................................. F17
17. Incentive Program................................................ F18
18. Income, Excise and Other Taxes................................... F19
19. Distribution of Earnings and Assets.............................. F20
Quarterly Information................................................. F21
Supplemental Information on Oil and Gas Exploration and Production
Activities........................................................... F22-F26
Operating Summary..................................................... F27
BUSINESS PROFILE F2
Return on Capital and
Earnings After Average Capital Average Capital Exploration
Income Taxes Employed Employed Expenditures
--------------------------------------------------------------------------------
Financial 1993 1992 1993 1992 1993 1992 1993 1992
- ----------------------------------------------------------------------------------------------------------------------------
(millions of dollars) (percent) (millions of dollars)
Petroleum and natural gas
Exploration and production
United States $ 935 763 11,098 11,455 8.4 6.7 $1,391 1,658
Non-U.S. 2,378 2,611 10,974 10,884 21.7 24.0 3,182 3,541
------ ----- ------ ------ ------ -----
Total 3,313 3,374 22,072 22,339 15.0 15.1 4,573 5,199
------ ----- ------ ------ ------ -----
Refining and marketing
United States 465 157 3,322 3,354 14.0 4.7 503 456
Non-U.S. 1,550 1,417 11,075 11,408 14.0 12.4 1,747 1,735
------ ----- ------ ------ ------ -----
Total 2,015 1,574 14,397 14,762 14.0 10.7 2,250 2,191
------ ----- ------ ------ ------ -----
Total petroleum and natural gas 5,328 4,948 36,469 37,101 14.6 13.3 6,823 7,390
------ ----- ------ ------ ------ -----
Chemicals
United States 267 272 2,926 2,861 9.1 9.5 411 341
Non-U.S. 144 179 3,520 3,570 4.1 5.0 169 320
------ ----- ------ ------ ------ -----
Total 411 451 6,446 6,431 6.4 7.0 580 661
Other operations 138 254 4,778 4,863 2.9 5.2 727 685
Corporate and financing (597) (843) (236) (524) - - 37 22
------ ----- ------ ------ ------ -----
Earnings before cumulative effect of
accounting changes 5,280 4,810 47,457 47,871 12.0 11.1 8,167 8,758
Cumulative effect of accounting changes - (40) - - - - - -
------ ----- ------ ------ ------ -----
Net income/Total $5,280 4,770 47,457 47,871 12.0 11.0 $8,167 8,758
====== ===== ====== ====== ==== ==== ====== =====
Operating 1993 1992
- ------------------------------------------------------------------
(thousands of barrels daily)
Net liquids production
United States 553 591
Non-U.S. 1,001 997
Proportional interest in production of
non-consolidated interests 69 72
Oil sands production--Canada 44 45
----- -----
Total 1,667 1,705
(millions of cubic feet daily)
Natural gas production available for sale
United States 1,764 1,607
Non-U.S. 2,002 2,008
Proportional interest in production of
non-consolidated interests 2,059 2,046
----- -----
Total 5,825 5,661
1993 1992
- ------------------------------------------------------------------
(thousands of barrels daily)
Petroleum product sales
United States 1,152 1,203
Non-U.S. 3,773 3,706
----- -----
Total 4,925 4,909
(thousands of barrels daily)
Refinery crude oil runs
United States 841 911
Non-U.S. 2,428 2,392
----- -----
Total 3,269 3,303
(millions of metric tons)
Coal production
United States 26 26
Non-U.S. 10 11
----- -----
Total 36 37
(thousands of metric tons)
Minerals production
Copper 183 133
Zinc 29 31
FINANCIAL SUMMARY F3
1993 1992 1991 1990 1989
- ------------------------------------------------------------------------------------------------------------
(millions of dollars, except per share amounts)
Sales and other operating revenue
Petroleum and natural gas $ 98,808 104,282 103,752 104,102 83,934
Chemicals 8,641 9,131 9,171 9,591 9,210
Other and eliminations 2,083 2,259 2,145 2,101 2,029
-------- ------- ------- ------- ------
Total sales and other operating revenue 109,532 115,672 115,068 115,794 95,173
Earnings from equity interests and other
revenue 1,679 1,434 1,424 1,146 1,112
-------- ------- ------- ------- ------
Revenue $111,211 117,106 116,492 116,940 96,285
======== ======= ======= ======= ======
Earnings
Petroleum and natural gas
Exploration and production $ 3,313 3,374 3,128 4,038 3,058
Refining and marketing 2,015 1,574 2,555 1,315 1,098
-------- ------- ------- ------- ------
Total petroleum and natural gas 5,328 4,948 5,683 5,353 4,156
Chemicals 411 451 512 522 1,082
Other operations 138 254 224 244 290
Corporate and financing (597) (843) (819) (1,109) (873)
Valdez provision - - - - (1,680)
-------- ------- ------- ------- ------
Earnings before cumulative effect of
accounting changes 5,280 4,810 5,600 5,010 2,975
Cumulative effect of accounting changes - (40) - - 535
-------- ------- ------- ------- ------
Net income $ 5,280 4,770 5,600 5,010 3,510
======== ======= ======= ======= ======
Net income per common share $ 4.21 3.79 4.45 3.96 2.74
- before cumulative effect of accounting
changes $ 4.21 3.82 4.45 3.96 2.32
Cash dividends per common share $ 2.88 2.83 2.68 2.47 2.30
Net income to average shareholders' equity
(percent) 15.4 13.9 16.5 15.8 11.3
Net income to total revenue (percent) 4.7 4.1 4.8 4.3 3.6
Working capital $ (3,731) (3,239) (3,842) (5,689) (5,408)
Ratio of current assets to current liabilities 0.80 0.84 0.82 0.76 0.75
Total additions to property, plant and
equipment $ 6,919 7,138 7,262 6,474 12,002
Property, plant and equipment, less allowances $ 61,962 61,799 63,864 62,688 60,425
Total assets $ 84,145 85,030 87,560 87,707 83,219
Exploration expenses, including dry holes $ 648 808 914 957 872
Research and development costs $ 593 624 679 637 592
Long-term debt $ 8,506 8,637 8,582 7,687 9,275
Total debt $ 12,615 13,424 13,042 13,777 16,032
Fixed charge coverage ratio 7.4 6.6 7.0 6.0 3.9
Debt to capital (percent) 25.3 26.8 25.6 27.7 32.6
Shareholders' equity at year-end $ 34,792 33,776 34,927 33,055 30,244
Shareholders' equity per common share $ 28.02 27.20 28.12 26.54 24.19
Average number of common shares outstanding
(millions) 1,242 1,242 1,244 1,248 1,264
Number of registered shareholders at year-end
(thousands) 622 629 616 639 671
Wages, salaries and employee benefits $ 5,916 5,985 6,081 5,881 5,131
Number of employees at year-end (thousands) 91 95 101 104 104
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND F4
RESULTS OF OPERATIONS
REVIEW OF 1993 RESULTS
Net income of $5,280 million in 1993 was up 11 percent from $4,770 million
earned in 1992. Improved petroleum product margins and lower operating expenses
more than offset the decline in crude prices. Net income in 1993 included
credits of $676 million ($113 million for the fourth quarter) from asset
dispositions, tax rate changes, and other special items, while the prior year
included $331 million of such credits ($18 million for the fourth quarter).
Both revenues and purchase costs declined 5 percent reflecting the weakness
in crude and product prices.
The combined total of operating costs (including operating, selling,
general, administrative, exploration, depreciation, and depletion expenses)
declined by over $750 million, excluding the effects of the stronger U.S.
dollar, reflecting ongoing efficiency initiatives.
Interest expense was 13 percent lower than in 1992 generally as a result of
lower interest rates and the favorable effects of foreign exchange.
EXPLORATION AND PRODUCTION
As a result of the decline in worldwide crude prices in 1993, Exxon's average
crude realization was down more than $1.70 per barrel from 1992. Natural gas
realizations were stronger in North America and weaker in Europe, the latter
affected by the strengthening of the U.S. dollar. Earnings from U.S. exploration
and production operations were $935 million, up $172 million from 1992. Lower
operating expenses and improvements in U.S. natural gas prices together with
increases in U.S. gas production and asset dispositions were key factors.
Earnings from exploration and production operations outside the U.S. were $2,378
million in 1993, compared with $2,611 million in the prior year.
Worldwide crude production of 1,667 kbd (thousands of barrels per day) in
1993 compared with 1,705 kbd in 1992, as normal field declines and property
divestments in North America offset increased production from operations outside
North America, primarily the North Sea. Natural gas production of 5,825 mcfd
(millions of cubic feet daily) was up 164 mcfd from 1992 largely due to improved
market conditions in North America and production from new developments in the
U.S. and Malaysia.
REFINING AND MARKETING
Improved petroleum product margins during 1993 were a major factor in the
increase in worldwide refining and marketing earnings. In 1993, refining and
marketing earnings benefited from lower operating expenses, particularly in
North America, as a result of ongoing efficiency improvements. Earnings from
U.S. refining and marketing operations recovered sharply from 1992, totaling
$465 million versus $157 million last year. Earnings from refining and marketing
operations outside the U.S. were $1,550 million, up from $1,417 million the year
before. Total petroleum product sales volumes of 4,925 kbd compared with 4,909
kbd in 1992.
CHEMICALS
Earnings from worldwide chemical operations totaled $411 million in 1993,
compared with $451 million earned in 1992. Margins in 1993 were lower on average
than in the previous year, primarily as a result of excess industry capacity and
weak market conditions. This was partially offset by lower operating expenses.
OTHER OPERATIONS
Other operations earned $138 million in 1993, compared with $254 million in
1992. The decline reflects lower coal and copper prices which more than offset
the benefits of lower operating expenses and higher copper production.
CORPORATE AND FINANCING
Corporate and financing charges were $597 million in 1993, down from $843
million in 1992. Financing costs in 1993 benefited from lower interest rates,
lower debt-related foreign exchange losses and one-time tax credits.
REVIEW OF 1992 RESULTS
For 1992, Exxon's earnings totaled $4,770 million. Three-fourths of the
corporation's earnings came from sources outside the U.S. Earnings were down 15
percent from the record 1991 earnings level, when results benefited from
unusually favorable market conditions in refining and marketing early in that
year. In 1992, worldwide natural gas production and petroleum product sales were
higher than the previous year, and both chemical sales and copper production
were at record levels. Liquids production in 1992 was approximately in line with
1991 levels. Operating expenses were lower than 1991 reflecting the effect of
ongoing efficiency initiatives. The net effect of write-offs, gains on asset
sales and other special items on the year-to-year comparison was minor;
approximately $300 million, after tax, of net non-recurring gains were realized
in both 1992 and 1991.
Revenue for 1992 totaled $117 billion, up slightly from 1991, as the impact
of higher sales volumes was offset by lower average realizations.
The value of crude and product purchases increased 4 percent reflecting
higher prices and volumes.
The combined total of operating costs (including operating, selling,
general, administrative, exploration, depreciation, and depletion expenses) was
approximately 3 percent lower than in 1991, mainly due to the effects of
downsizing and efficiency steps.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND F5
RESULTS OF OPERATIONS
Interest expense declined 3 percent, reflecting lower interest rates
prevailing in 1992, partly offset by adverse foreign exchange effects.
During 1992 two new accounting standards were adopted effective January 1,
Statement of Financial Accounting Standards No. 106 and No. 109. Statement No.
106, related to postretirement benefits other than pensions, resulted in an
after-tax charge to income of $800 million while Statement No. 109, related to
income taxes, resulted in a $760 million credit. Adoption of these standards did
not have a material effect on 1992 earnings. The corporation's liquidity and
cash flow were not affected by these accounting changes.
EXPLORATION AND PRODUCTION
Earnings from U.S. exploration and production operations were $763 million, up
$135 million from 1991, primarily due to lower operating expenses and a stronger
natural gas market. Average natural gas prices were up 10 percent, and crude oil
realizations were up slightly. Natural gas production declined 48 mcfd to 1,607
mcfd. Liquids production declined 28 kbd to 591 kbd.
Earnings in 1992 from exploration and production operations outside the U.S.
totaled $2,611 million compared with $2,500 million a year ago. Higher
production volumes in 1992 and lower operating expenses offset the effect of
lower crude oil and natural gas realizations. Increased production in the North
Sea helped raise total liquids production by 18 kbd to 1,114 kbd. Natural gas
production increased 212 mcfd to 4,054 mcfd, primarily as a result of the start-
up of new production in the Far East and increased sales in Europe.
Worldwide exploration expenses before-tax declined $106 million due to a
combination of efficiency steps and lower activity.
REFINING AND MARKETING
Earnings from U.S. refining and marketing totaled $157 million compared to $514
million in 1991, while earnings from refining and marketing operations outside
the U.S. were $1,417 million, down from $2,041 million the previous year.
Worldwide operating expenses were lower in 1992, and product sales volumes rose
40 kbd to 4,909 kbd. However, earnings from most geographic sources declined in
1992, as industry margins were significantly lower than the unusually high
levels of early 1991.
CHEMICALS
Earnings from chemical operations totaled $451 million in 1992, down from $512
million earned in 1991. Sales volumes rose 8 percent, partially offsetting the
effect of lower margins. U.S. chemical operations earned $272 million compared
with $336 million in 1991, while operations outside the U.S. earned $179 million
compared with $176 million in 1991.
OTHER OPERATIONS
Other operations, principally related to coal, minerals and power generation,
earned $254 million compared with $224 million in 1991, primarily reflecting
improved results in the corporation's Hong Kong power business.
CORPORATE AND FINANCING
Corporate and financing charges were up slightly from 1991 due to non-cash
foreign exchange losses.
IMPACT OF INFLATION AND CHANGING PRICES
The general rate of inflation in most major countries of operation has been
relatively low in recent years and the associated impact on operating costs has
been countered by cost reductions from efficiency and productivity improvements.
In the past, crude oil and product prices have fluctuated widely in response
to changing market forces. The impacts of these price fluctuations on earnings
from exploration and production operations, refining and marketing operations
and chemical operations have been varied, tending at times to be offsetting. In
the aggregate, and before the effects of unrelated one-time items, earnings and
cash flows from operations have remained within a reasonably narrow range.
SITE RESTORATION AND OTHER ENVIRONMENTAL COSTS
Over the years the corporation has accrued provisions for estimated site
restoration costs to be incurred at the end of the operating life of certain of
its facilities and properties. In addition, the corporation accrues provisions
for environmental liabilities in the many countries in which it does business
when it is probable that obligations have been incurred and the amounts can be
reasonably estimated. This policy applies to assets or businesses currently
owned or previously disposed. The corporation has accrued provisions for
probable environmental remediation obligations at various sites, including
multi-party sites where Exxon has been identified as a potential responsible
party by the U.S. Environmental Protection Agency. The involvement of other
financially responsible companies mitigates Exxon's joint and several liability
exposure at many of these sites. At present, no individual site is expected to
have losses material to Exxon's operations, financial conditions or liquidity.
At the end of 1993, accumulated site restoration and environmental
provisions amounted to $2.5 billion, including charges made against income of
$331 million in 1993, $256 million in 1992 and $532 million in 1991. Exxon
believes that any cost in excess of the amounts already provided for in the
financial statements would not have a materially adverse effect upon the
corporation's operations, financial condition or liquidity.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND F6
RESULTS OF OPERATIONS
In 1993, the corporation spent $1,873 million (of which $641 million were
capital expenditures) on environmental conservation projects and expenses
worldwide, mostly dealing with air and water conservation. Total expenditures
for such activities are expected to be about $2.0 billion in 1994 and 1995 (with
capital expenditures in each year representing about 35 percent of the total).
TAXES
Provision for income, excise and other taxes and duties in 1993 declined $2.3
billion, or 6 percent. Income tax expense, both current and deferred, was $2.8
billion compared to $2.5 billion in 1992, reflecting higher pre-tax income in
1993. The effective income tax rate stayed about constant at 38.5 percent.
Excise taxes and other taxes and duties were $2.6 billion lower reflecting the
stronger dollar during 1993.
Provision for income, excise and other taxes and duties in 1992 increased
$0.5 billion, or 2 percent. Income tax expense, both current and deferred, was
$2.5 billion compared to $2.9 billion in 1991, reflecting lower pre-tax income
in 1992. The effective income tax rate remained constant at 38 percent. Excise
taxes and other taxes and duties rose $0.9 billion. The major factor in this
increase was higher tax rates imposed by several European governments.
Prior to the adoption of SFAS No. 109 in 1992, the corporation applied the
liability method prescribed by SFAS No. 96.
LIQUIDITY AND CAPITAL RESOURCES
In 1993, cash provided by operating activities totaled $11.5 billion, up $1.9
billion from 1992. Major sources of funds were net income of $5.3 billion and
non-cash provisions of $4.9 billion for depreciation and depletion.
Cash used in investing activities totaled $6.1 billion, down from $7.0
billion in 1992. Changes to short-term marketable securities caused $0.5
billion of the year to year decrease.
Cash used in financing activities was $5.3 billion. Dividend payments on
common shares were increased from $2.83 per share to $2.88 per share and totaled
$3.6 billion, a payout of 68 percent.
Net working capital decreased by $0.5 billion to a negative $3.7 billion,
with a $1.2 billion reduction in accounts receivable being the largest single
factor.
Consolidated debt decreased $0.8 billion to $12.6 billion, resulting in a 25
percent ratio of debt to capital compared to 27 percent in 1992.
As discussed in note 14 to the consolidated financial statements, a number
of lawsuits, including class actions, relating to the Valdez accident have been
brought against the corporation and certain of its subsidiaries. The cost to
the corporation from these lawsuits is not possible to predict; however, it is
believed the final outcome will not have a materially adverse effect upon the
corporation's operations, financial condition or liquidity.
The U.S. Tax Court has decided the issue with respect to the pricing of
crude oil purchased from Saudi Arabia for the years 1979 to 1981 in favor of the
corporation. This decision is subject to appeal. Ultimate resolution of
several other issues, notably a settlement of gas lifting imbalances in the
common border area between the Netherlands and Germany, are not expected to have
a materially adverse effect upon the corporation's operations, financial
condition or liquidity.
There are no events or uncertainties known to management beyond those
already included in reported financial information that would necessarily
indicate a material change in future operating results or future financial
condition.
The corporation maintained its strong financial position and flexibility to
meet future financial needs. Although the corporation issues long-term debt
from time to time and maintains a revolving commercial paper program, internally
generated funds cover the majority of its financial requirements.
In 1992, cash provided by operating activities totaled $9.6 billion, down
$1.3 billion from 1991. Major sources of funds were net income of $4.8 billion
and non-cash provisions of $5.0 billion for depreciation and depletion.
Cash used in investing activities totaled $7.0 billion, up from $6.2 billion
in 1991. Additions to short-term marketable securities caused $0.5 billion of
the increase.
Cash used in financing activities was $3.1 billion. Dividend payments on
common shares were increased from $2.68 per share to $2.83 per share and totaled
$3.5 billion, a payout of 75 percent.
Net working capital increased by $0.6 billion to a negative $3.2 billion,
with a $1.1 billion reduction in trade payables being the largest single factor.
Consolidated debt rose $0.4 billion to $13.4 billion, resulting in a 27
percent ratio of debt to capital compared to 26 percent in 1991.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND F7
RESULTS OF OPERATIONS
CAPITAL AND EXPLORATION EXPENDITURES
Capital and exploration expenditures for the year 1993 totaled $8.2 billion,
down from $8.8 billion in 1992 mainly due to foreign exchange effects.
Total expenditures in 1993 on exploration and production activities were
$4.6 billion. This was down from $5.2 billion spent in 1992 and reflected
foreign exchange effects and completion of several major projects in the U.S.
and Europe. Investments in refining and marketing totaled $2.3 billion in 1993,
up from $2.2 billion in 1992, and reflected refining expansion in the Far East.
Chemical capital expenditures were $0.6 billion in 1993, down from $0.7
billion in 1992, due to completion of several projects in Europe. Investments
in Hong Kong Power were $0.5 billion in 1993, up from $0.2 billion in 1992, and
reflected continuing construction activity at the Black Point power station
project.
Capital and exploration expenditures in the U.S. totaled $2.4 billion in
1993 compared to outlays of $5.8 billion outside the U.S. Expenditures in 1994
are expected to be approximately in line with 1993 and reflect a similar
geographic distribution.
Firm commitments related to capital projects underway at year-end 1993
totaled approximately $3.3 billion, with the largest single commitment being
$1.3 billion associated with the Hong Kong Black Point power project. Similar
commitments were $1.9 billion at the end of 1992. The corporation expects to
fund the majority of these commitments through internally generated funds.
CONSOLIDATED BALANCE SHEET F8
Dec. 31 Dec. 31
1993 1992
- ----------------------------------------------------------------------------
(millions of dollars)
Assets
Current assets
Cash and cash equivalents $ 983 $ 898
Other marketable securities 669 617
Notes and accounts receivable, less
estimated doubtful amounts 6,860 8,079
Inventories
Crude oil, products and merchandise 4,616 4,897
Materials and supplies 856 910
Prepaid taxes and expenses 875 1,023
-------- --------
Total current assets 14,859 16,424
Investments and advances 4,790 4,606
Property, plant and equipment, at cost,
less accumulated depreciation and
depletion 61,962 61,799
Other assets, including intangibles, net 2,534 2,201
-------- --------
Total assets $ 84,145 $ 85,030
======== ========
Liabilities
Current liabilities
Notes and loans payable $ 4,109 $ 4,787
Accounts payable and accrued liabilities 12,122 12,645
Income taxes payable 2,359 2,231
-------- --------
Total current liabilities 18,590 19,663
Long-term debt 8,506 8,637
Annuity reserves and accrued liabilities 8,153 8,097
Deferred income tax liabilities 10,939 11,135
Deferred credits 770 747
Equity of minority and preferred
shareholders in affiliated companies 2,395 2,975
-------- --------
Total liabilities 49,353 51,254
Shareholders' Equity
Preferred stock without par value
(authorized 200 million shares, 16
million issued) 668 770
Guaranteed LESOP obligation (716) (818)
Common stock without par value
(authorized 2 billion shares, 1,813
million issued) 2,822 2,822
Earnings reinvested 49,365 47,697
Cumulative foreign exchange translation
adjustment (370) 192
Common stock held in treasury, at cost
(571 million shares in 1993, 571
million shares in 1992) (16,977) (16,887)
-------- --------
Total shareholders' equity 34,792 33,776
-------- --------
Total liabilities and shareholders'
equity $ 84,145 $ 85,030
======== ========
The information on pages F11 through F20 is an integral part of these
statements.
EXXON CORPORATION
CONSOLIDATED STATEMENT OF INCOME F9
1993 1992 1991
- -----------------------------------------------------------------------------
(millions of dollars)
Revenue
Sales and other operating revenue,
including excise taxes $109,532 $115,672 $115,068
Earnings from equity interests and
other revenue, including $112 million
in 1992 from gain on sale of non-U.S.
investment 1,679 1,434 1,424
-------- -------- --------
Total revenue 111,211 117,106 116,492
-------- -------- --------
Costs and other deductions
Crude oil and product purchases 46,124 48,552 46,847
Operating expenses 12,111 12,927 13,487
Selling, general and administrative
expenses 7,009 7,432 7,881
Depreciation and depletion 4,884 5,044 4,824
Exploration expenses, including dry
holes 648 808 914
Interest expense 681 784 810
Excise taxes 11,707 12,512 12,221
Other taxes and duties 19,745 21,513 20,823
Income applicable to minority and
preferred interests 250 247 167
-------- -------- --------
Total costs and other deductions 103,159 109,819 107,974
-------- -------- --------
Income before income taxes 8,052 7,287 8,518
Income taxes 2,772 2,477 2,918
-------- -------- --------
Income before cumulative effect of
accounting changes 5,280 4,810 5,600
Cumulative effect of accounting changes - (40) -
-------- -------- --------
Net income $ 5,280 $ 4,770 $ 5,600
======== ======== ========
Per common share - income before
cumulative effect of
accounting changes
(dollars) $ 4.21 $ 3.82 $ 4.45
- cumulative effect of
accounting changes
(dollars) - $ (0.03) -
- net income (dollars) $ 4.21 $ 3.79 $ 4.45
===============================================================================
CONSOLIDATED STATEMENT OF SHAREHOLDERS' EQUITY
1993 1992 1991
--------------------------------------------------------------
Shares Dollars Shares Dollars Shares Dollars
- ------------------------------------------------------------------------------------------------------------
(millions)
Preferred stock outstanding at end of
year 11 $ 668 13 $ 770 14 $ 867
===== ===== =====
Guaranteed LESOP obligation (716) (818) (914)
Common stock issued at end of year 1,813 2,822 1,813 2,822 1,813 2,822
Earnings reinvested
At beginning of year 47,697 46,483 44,286
Net income for year 5,280 4,770 5,600
Dividends - common and preferred shares (3,612) (3,556) (3,403)
-------- -------- --------
At end of year 49,365 47,697 46,483
-------- -------- --------
Cumulative foreign exchange translation
adjustment
At beginning of year 192 2,443 2,426
Change during the year (562) (2,251) 17
-------- -------- --------
At end of year (370) 192 2,443
-------- -------- --------
Common stock held in treasury, at cost
At beginning of year (571) (16,887) (571) (16,774) (568) (16,509)
Acquisitions (5) (323) (6) (358) (8) (466)
Dispositions 5 233 6 245 5 201
----- -------- ----- -------- ----- --------
At end of year (571) (16,977) (571) (16,887) (571) (16,774)
----- -------- ----- -------- ----- --------
Shareholders' equity at end of year $ 34,792 $ 33,776 $ 34,927
======== ======== ========
Common shares outstanding at end of year 1,242 1,242 1,242
===== ===== =====
The information on pages F11 through F20 is an integral part of these
statements.
CONSOLIDATED STATEMENT OF CASH FLOWS F10
1993 1992 1991
- --------------------------------------------------------------------------------------
(millions of dollars)
Cash flows from operating activities
Net income
Accruing to Exxon shareholders $ 5,280 $ 4,770 $ 5,600
Accruing to minority and preferred
interests 250 247 167
Adjustments for non-cash transactions
Depreciation and depletion 4,884 5,044 4,824
Deferred income tax charges/(credits) 64 (1,285) (43)
Annuity and accrued liability provisions 255 1,340 385
Dividends received which were less than
equity in current earnings of equity
companies (9) (33) (151)
Changes in operational working capital,
excluding cash and debt
Reduction/(increase)- Notes and accounts
receivable 965 (136) 1,003
- Inventories 156 (71) 263
- Prepaid taxes and
expenses (4) 96 62
Increase/(reduction)- Accounts and
other payables (93) (212) (1,463)
All other items - net (245) (149) 295
------- ------- -------
Net cash provided by operating
activities 11,503 9,611 10,942
------- ------- -------
Cash flows from investing activities
Additions to property, plant and
equipment (6,956) (7,225) (7,324)
Sales of subsidiaries and property,
plant and equipment 1,095 982 1,052
Additional investments and advances (331) (363) (251)
Sales of investments and collection of
advances 168 134 348
Additions to other marketable securities (1,323) (1,079) (279)
Sales of other marketable securities 1,246 518 234
------- ------- -------
Net cash used in investing activities (6,101) (7,033) (6,220)
------- ------- -------
Net cash generation before financing
activities 5,402 2,578 4,722
------- ------- -------
Cash flows from financing activities
Additions to long-term debt 1,635 1,190 1,445
Reductions in long-term debt (313) (513) (402)
Additions to short-term debt 249 271 349
Reductions in short-term debt (1,168) (481) (1,005)
Changes in debt with less than 90 day
maturity (1,112) 272 (1,024)
Cash dividends to Exxon shareholders (3,630) (3,575) (3,403)
Cash dividends to minority interests (249) (257) (242)
Additions to minority interests and
sales/(redemptions) of affiliate
preferred stock (500) 180 78
Common stock acquired (323) (358) (466)
Common stock sold 131 148 113
------- ------- -------
Net cash used in financing activities (5,280) (3,123) (4,557)
------- ------- -------
Effects of exchange rate changes on cash (37) (53) (1)
------- ------- -------
Increase/(decrease) in cash and cash
equivalents 85 (598) 164
Cash and cash equivalents at beginning
of year 898 1,496 1,332
------- ------- -------
Cash and cash equivalents at end of year $ 983 $ 898 $ 1,496
======= ======= =======
The information on pages F11 through F20 is an integral part of these
statements.
REPORT OF INDEPENDENT ACCOUNTANTS F11
Price Waterhouse Dallas, Texas
February 23, 1994
To the Shareholders of Exxon Corporation
In our opinion, the consolidated financial statements appearing on pages F8
through F20 present fairly, in all material respects, the financial position of
Exxon Corporation and its subsidiary companies at December 31, 1993 and 1992,
and the results of their operations and their cash flows for each of the three
years in the period ended December 31, 1993, in conformity with generally
accepted accounting principles. These financial statements are the
responsibility of the Corporation's management; our responsibility is to express
an opinion on these financial statements based on our audits. We conducted our
audits of these statements in accordance with generally accepted auditing
standards which require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting
the amounts and disclosures in the financial statements, assessing the
accounting principles used and significant estimates made by management, and
evaluating the overall financial statement presentation. We believe that our
audits provide a reasonable basis for the opinion expressed above.
As discussed in note 2 to the consolidated financial statements, the
Corporation changed its method of accounting for postretirement benefits other
than pensions and for income taxes in 1992.
/s/ Price Waterhouse
- -------------------------------------------------------------------------------
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements and the supporting and
supplemental material are the responsibility of the management of Exxon
Corporation.
Accounting principles underlying the financial statements are generally
accepted in the United States.
1. SUMMARY OF ACCOUNTING POLICIES
PRINCIPLES OF CONSOLIDATION. The consolidated financial statements include
the accounts of those significant subsidiaries owned directly or indirectly more
than 50 percent.
Amounts representing the corporation's percentage interest in the underlying
net assets of less than majority-owned companies in which a significant equity
ownership interest is held are included in "Investments and advances." The
corporation's share of the net income of these companies is included in the
consolidated statement of income caption "Earnings from equity interests and
other revenue."
Investments in all other companies, none of which is significant, are
included in "Investments and advances" at cost or less. Dividends from these
companies are included in income as received.
FINANCIAL INSTRUMENTS. The fair value of financial instruments is
determined by reference to various market data and other valuation techniques as
appropriate. Unless otherwise disclosed, the fair values of financial
instruments approximate their recorded values. Marketable securities are stated
at the lower of cost or market value.
INVENTORIES. Crude oil, products and merchandise inventories are carried at
the lower of current market value or cost (generally determined under the
last-in, first-out method-LIFO). Costs include applicable purchase costs and
operating expenses, but not general and administrative expenses or research and
development costs. Inventories of materials and supplies are valued at cost or
less.
PROPERTY, PLANT AND EQUIPMENT. Depreciation, depletion and amortization, based
on cost less estimated salvage value of the asset, are primarily determined
under either the unit of production method or the straight-line method. Unit of
production rates are based on oil, gas and other mineral reserves estimated to
be recoverable from existing facilities. The straight-line method of
depreciation is based on estimated asset service life taking obsolescence into
consideration.
Maintenance and repairs are expensed as incurred. Major renewals and
improvements are capitalized, and the assets replaced are retired.
The corporation's exploration and production activities are accounted for
under the "successful efforts" method. Under this method, costs of productive
wells and development dry holes, both tangible and intangible, as well as
productive acreage are capitalized and amortized on the unit of production
method. Costs of that portion of undeveloped acreage likely to be unproductive,
based largely on historical experience, are amortized over the period of
exploration. Other exploratory expenditures, including geophysical costs, other
dry hole costs and annual lease rentals, are expensed as incurred.
ENVIRONMENTAL CONSERVATION AND SITE RESTORATION COSTS. Expenditures for
environmental conservation are expensed or capitalized in accordance with
generally accepted accounting principles. Liabilities for these expenditures
are recorded when it is probable that obligations have been
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F12
incurred and the amounts can be reasonably estimated. These liabilities are not
reduced by possible recoveries from third parties and projected cash
expenditures are not discounted.
Site restoration costs that may be incurred by the corporation at the end of
the operating life of certain of its facilities and properties are reserved
ratably over the asset's productive life.
FOREIGN CURRENCY TRANSLATION. The "functional currency" for translating the
accounts of the majority of refining, marketing and chemical operations outside
the U.S. is the local currency. Local currency is also used for exploration
and production operations that are relatively self-contained and integrated
within a particular country, such as in Australia, Canada, the United Kingdom,
Norway and Continental Europe. The U.S. dollar is used for operations in
highly inflationary economies and for some exploration and production
operations, primarily in Malaysia and the Middle East.
2. ACCOUNTING CHANGES
Statement of Financial Accounting Standards No. 106 "Employers' Accounting for
Postretirement Benefits Other Than Pensions" and No. 109 "Accounting for Income
Taxes" were implemented in 1992. The cumulative effect of these accounting
changes on years prior to 1992 is as follows:
(millions of dollars)
- ----------------------------------------------------------------
SFAS No. 106 (net of $408 million
income tax effect) $(800)
SFAS No. 109 760
-----
Net charge $ (40)
=====
The cumulative effect per share was $(0.64) and $0.61 for SFAS No. 106 and
No. 109, respectively, resulting in a net charge of $(0.03).
Neither standard had a material effect on 1992 income before the cumulative
effect of the accounting changes.
3. MISCELLANEOUS FINANCIAL INFORMATION
Cash and cash equivalents included time deposits of $92 million at the end of
1993 and $144 million at the end of 1992.
Research and development costs totaled $593 million in 1993, $624 million in
1992 and $679 million in 1991.
Aggregate foreign exchange transaction gains included in determining net
income totaled $61 million in 1993. Results for 1992 and 1991 included losses
of $118 million and gains of $60 million, respectively.
In 1993, 1992 and 1991, net income included gains of $86 million, $10
million and $32 million, respectively, attributable to the combined effects of
LIFO inventory accumulations and drawdowns. The aggregate replacement cost of
inventories was estimated to exceed their LIFO carrying values by $2,109 million
and $3,431 million at December 31, 1993 and 1992, respectively.
4. CASH FLOW INFORMATION
The consolidated statement of cash flows provides information about changes in
cash and cash equivalents. All short-term marketable securities, with original
maturities of three months or less, that are readily convertible to known
amounts of cash and are so near maturity that they present insignificant risk of
changes in value because of changes in interest rates, are classified as cash
equivalents.
Cash payments for interest were: 1993 - $742 million; 1992 - $829 million;
1991 - $1,112 million. Cash payments for income taxes were: 1993 - $2,470
million; 1992 - $2,715 million; 1991 - $2,905 million.
5. ADDITIONAL WORKING CAPITAL DATA
Dec. 31 Dec. 31
1993 1992
- ----------------------------------------------------------------
(millions of dollars)
Notes and accounts receivable
Trade, less reserves of $89 million and
$116 million $ 5,427 $ 6,392
Other, less reserves of $29 million and
$29 million 1,433 1,687
------- -------
$ 6,860 $ 8,079
======= =======
Notes and loans payable
Bank loans $ 1,189 $ 1,478
Commercial paper 1,891 2,761
Long-term debt due within one year 1,003 511
Other 26 37
------- -------
$ 4,109 $ 4,787
======= =======
Accounts payable and accrued liabilities
Trade payables $ 6,910 $ 7,100
Obligations to equity companies 767 823
Accrued taxes other than income taxes 2,369 2,478
Other 2,076 2,244
------- -------
$12,122 $12,645
======= =======
On December 31, 1993, unused credit lines for short-term financing totaled
approximately $6.4 billion. Of this total, $4.4 billion support commercial paper
programs under terms negotiated when drawn.
6. INVESTMENTS AND ADVANCES
Dec. 31 Dec. 31
1993 1992
- ----------------------------------------------------------------
(millions of dollars)
In less than majority-owned companies
Carried at equity in underlying assets
Investments $ 3,205 $ 3,033
Advances 408 459
------- -------
3,613 3,492
Carried at cost or less 148 136
------- -------
3,761 3,628
Long-term receivables and miscellaneous
investments at cost or less 1,029 978
------- -------
Total $ 4,790 $ 4,606
======= =======
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F13
7. EQUITY COMPANY INFORMATION
The summarized financial information below includes those less than
majority-owned companies for which Exxon's share of net income is included in
consolidated net income (see note 1, page F11). These companies are primarily
engaged in natural gas production and distribution in the Netherlands and
Germany, refining and marketing operations in Japan and several chemical
operations.
1993 1992 1991
-----------------------------------------------------------
Exxon Exxon Exxon
Total share Total share Total share
- --------------------------------------------------------------------------------------------------------
(millions of dollars)
Total revenues
Includes sales to companies in the
Exxon consolidation which amounted
to 18% in 1993, 17% in 1992 and
16% in 1991 $25,295 $8,118 $25,628 $8,269 $25,584 $8,250
------- ------ ------- ------ ------- ------
Income before income taxes $ 3,255 $1,441 $ 3,067 $1,398 $ 3,551 $1,608
Less: Related income taxes (1,237) (528) (1,055) (463) (1,339) (579)
------- ------ ------- ------ ------- ------
Net income $ 2,018 $ 913 $ 2,012 $ 935 $ 2,212 $1,029
======= ====== ======= ====== ======= ======
Current assets $ 8,800 $2,892 $ 8,447 $2,802 $ 9,220 $3,014
Property, plant and equipment, less
accumulated depreciation 11,930 4,877 11,689 4,834 11,812 4,896
Other long-term assets 2,981 1,059 2,880 1,045 3,175 1,075
------- ------ ------- ------ ------- ------
Total assets 23,711 8,828 23,016 8,681 24,207 8,985
------- ------ ------- ------ ------- ------
Short-term debt 1,657 480 1,544 442 2,082 589
Other current liabilities 6,588 2,388 6,491 2,399 7,044 2,650
Long-term debt 2,279 756 2,513 848 2,703 927
Other long-term liabilities 3,709 1,591 3,431 1,500 3,612 1,559
Advances from shareholders 819 408 915 459 454 227
------- ------ ------- ------ ------- ------
Net assets $ 8,659 $3,205 $ 8,122 $3,033 $ 8,312 $3,033
======= ====== ======= ====== ======= ======
8. INVESTMENT IN PROPERTY, PLANT AND EQUIPMENT
Dec. 31, 1993 Dec. 31, 1992
-----------------------------------------
Cost Net Cost Net
- ---------------------------------------------------------------------------
(millions of dollars)
Petroleum and natural gas
Exploration and production $ 62,131 $32,263 $ 62,609 $32,880
Refining and marketing 28,103 16,185 28,166 15,898
-------- ------- -------- -------
Total petroleum and
natural gas 90,234 48,448 90,775 48,778
Chemicals 9,155 5,006 9,048 5,015
Other 11,746 8,508 10,915 8,006
-------- ------- -------- -------
Total $111,135 $61,962 $110,738 $61,799
======== ======= ======== =======
Accumulated depreciation and depletion totaled $49,173 million at the end of
1993 and $48,939 million at the end of 1992. Interest capitalized in 1993, 1992
and 1991 was $374 million, $364 million and $331 million, respectively.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F14
9. LEASED FACILITIES
At December 31, 1993, the corporation and its consolidated subsidiaries held
non-cancelable operating charters and leases covering drilling equipment,
tankers, service stations and other properties for which minimum lease
commitments were as follows:
Minimum Related
commitment rental income
- ----------------------------------------------------------------
(millions of dollars)
1994 $679 $ 31
1995 504 28
1996 373 24
1997 282 19
1998 207 15
1999 and beyond 925 150
Net rental expenditures for 1993, 1992 and 1991 totaled $1,130 million,
$1,108 million and $1,133 million, respectively, after being reduced by related
rental income of $134 million, $120 million and $117 million, respectively.
Minimum rental expenditures totaled $1,184 million in 1993, $1,141 million in
1992 and $1,185 million in 1991.
10. CAPITAL
In 1989, the corporation sold 16.3 million shares of a new issue of convertible
Class A Preferred Stock to its leveraged employee stock ownership plan (LESOP)
trust for $61.50 per share. The proceeds of the issuance were used by the
corporation for general corporate purposes. The corporation recorded a
"Guaranteed LESOP Obligation" of $1,000 million as debt and as a reduction in
shareholders' equity, representing company-guaranteed borrowings by the LESOP
trust to purchase the preferred stock. As the debt is repaid, the Guaranteed
LESOP Obligation will be extinguished. The stock can be converted into common
stock at the lower of common stock market value or $61.50. Dividends are
cumulative and payable in an amount per share equal to $4.68 per annum.
Dividends paid per preferred share were $4.68 in 1993, 1992 and 1991.
Dividends paid per common share were $2.88 in 1993, $2.83 in 1992 and $2.68
in 1991.
Earnings per common share are based on net income less preferred stock
dividends and the weighted average number of outstanding common shares during
each year, adjusted for stock splits.
11. LEVERAGED EMPLOYEE STOCK OWNERSHIP PLAN (LESOP)
In 1989, the corporation's employee stock ownership plan trustee borrowed $1,000
million, under the terms of notes guaranteed by the corporation, maturing
between 1990 and 1999. The principal due on the notes increases from $75 million
in 1990 to $125 million in 1999. As further described in note 10, the LESOP
trustee used the proceeds of the borrowing to purchase shares of convertible
Class A Preferred Stock.
Employees eligible to participate in the corporation's thrift plan may elect
to participate in the LESOP. Corporation contributions to the plan, plus
dividends, are used to make principal and interest payments on the notes. As
contributions and dividends are credited, shares of preferred stock are
proportionately converted into common stock, with no cash flow impact to the
corporation, and allocated to participants' accounts. During 1993, 1.7 million
shares of preferred stock, totaling $102 million, were converted to common stock
and allocated. In 1992, 1.6 million shares of preferred stock, totaling $97
million, were converted and allocated. In 1991, 1.4 million shares of preferred
stock, totaling $88 million, were converted and allocated. Preferred dividends
of $54 million, $61 million and $69 million were paid during 1993, 1992 and
1991, respectively, and covered interest payments on the notes. The 1993, 1992
and 1991 principal payments were made from employer contributions and dividends
reinvested within the LESOP trust and payments by Exxon as guarantor.
12. LONG-TERM DEBT
At December 31, 1993, long-term debt consisted of $7,518 million due in U.S.
dollars and $988 million representing the U.S. dollar equivalent at year-end
exchange rates of amounts payable in foreign currencies. These amounts exclude
that portion of long-term debt, totaling $1,003 million, which matures within
one year and is included in current liabilities. The amounts of long-term debt
maturing, together with sinking fund payments required, in each of the four
years after December 31, 1994, in millions of dollars, are: 1995 - $568; 1996 -
$1,062; 1997 - $534; 1998 - $547. Certain of the borrowings described may from
time to time be assigned to other Exxon affiliates. During 1993, the
corporation took on $2.6 billion in long-term credit lines of which $2.5 billion
was unused at year-end.
In 1982, debt totaling $515 million was removed from the balance sheet as a
result of the deposit of U.S. government securities in irrevocable trusts. In
1987, the corporation placed additional government securities in the trusts,
enabling removal of $240 million from the balance sheet. In 1993, the
corporation redeemed $382 million of the foregoing debt. The government
securities remained in the related trusts after the redemption, and the
corporation's beneficial interest in those trusts was sold. The balance of
outstanding defeased debt at year-end 1993 was $288 million.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F15
Summarized long-term borrowings at year-end 1993 and 1992 were as follows:
Dec. 31 Dec. 31
1993 1992
- --------------------------------------------------------------
(millions of dollars)
EXXON CORPORATION
Floating rate pollution-control revenue
bonds due 2012-2027 $ 331 $ 258
LESOP notes 606 728
EXXON PIPELINE COMPANY
5.5% Marine terminal revenue bonds due
2007 - 159
Variable rate marine terminal revenue
bonds due 2033 173 -
EXXON SAN JOAQUIN PRODUCTION COMPANY
Variable rate loan due 1994-2008 - 347
EXXON CAPITAL CORPORATION
4.5% Guaranteed notes due 1996 235 230
8.0% Guaranteed notes due 1995 250 250
8.25% Guaranteed notes due 1994 - 200
8.25% Guaranteed notes due 1999 200 200
7.75% Guaranteed notes due 1996 249 249
7.875% Guaranteed notes due 1996 250 250
7.875% Guaranteed notes due 1997 249 249
8.0% Guaranteed notes due 1998 249 249
6.0% Guaranteed notes due 2005 250 -
6.125% Guaranteed notes due 2008 250 -
6.15% Guranteed notes due 2003 250 -
Zero coupon notes due 2004
- Face value ($1,146) net of
unamortized discount 346 310
8.5% Guaranteed notes due 1994 - 263
7.45% Guaranteed notes due 2001 250 250
6.5% Guaranteed notes due 1999 249 249
6.625% Guaranteed notes due 2002 250 249
SEARIVER MARITIME, INC.
Deferred interest debentures due 2012
- Face value ($771) net of unamortized
discount 380 341
Guaranteed debt securities due 1997-2011 150 150
EXXON ENERGY LIMITED
8.5% British pound loans due 1995-2002 317 388
6.87% Guaranteed notes due 2003 173 -
IMPERIAL OIL LIMITED
Variable rate U.S. dollar notes due 2004 1,000 1,100
8.75% U.S. dollar notes due 2019 219 218
9.875% Canadian dollar notes due 1999 237 242
8.3% U.S. dollar notes due 2001 199 199
Capitalized lease obligations* 86 151
Other U.S. dollar obligations 760 936
Other foreign currency obligations 348 222
------ ------
Total long-term debt $8,506 $8,637
====== ======
*At an average imputed interest rate of 9.3% in 1993 and 11.5% in 1992.
The estimated fair value of total long-term debt, including capitalized
lease obligations, at December 31, 1993 and 1992 was $9.5 billion and $9.3
billion, respectively.
13. INTEREST RATE SWAP AND CURRENCY EXCHANGE CONTRACTS
At December 31, 1993 and 1992, the corporation had various interest rate swap
and currency exchange contracts outstanding with financial institutions of high
credit standing. Interest rate swap agreements, maturing 1994-1999, had
aggregate notional principal amounts of $705 million and $924 million at year-
end 1993 and 1992, respectively. Currency exchange contracts, maturing 1994-
2005, totaled $857 million at year-end 1993 and $1,547 million at year-end 1992.
The corporation's exposure to credit and market risks from the above
instruments is considered to be negligible.
14. LITIGATION AND OTHER CONTINGENCIES
A number of lawsuits, including class actions, have been brought in various
courts against Exxon Corporation and certain of its subsidiaries relating to the
release of crude oil from the tanker Exxon Valdez in 1989. Most of these
lawsuits seek unspecified compensatory and punitive damages; several lawsuits
seek damages in varying specified amounts. Certain of the lawsuits seek
injunctive relief. The claims of many individuals have been dismissed or
settled. Most of the remaining actions are scheduled for trial in federal court
commencing May 2, 1994. Other actions will likely be tried in state court later
in 1994. The cost to the corporation from these lawsuits is not possible to
predict; however, it is believed that the final outcome will not have a
materially adverse effect upon the corporation's operations or financial
condition.
German and Dutch affiliated companies are the concessionaires of a natural
gas field subject to a treaty between the governments of Germany and the
Netherlands under which the gas reserves in an undefined border or common area
are to be shared equally. Entitlement to the reserves is determined by
calculating the amounts of gas which can be recovered from this area. Based on
the final reserve determination, the German affiliate has lifted more gas than
its entitlement. Arbitration proceedings, as provided in the agreements, have
commenced to determine the manner of resolving the imbalance in liftings between
the German and Dutch affiliated companies. Financial effects to the corporation
related to resolution of this imbalance would be influenced by different tax
regimes and ownership interests. The net impact of the ultimate outcome is not
expected to have a materially adverse effect upon the corporation's operations
or financial condition.
The U.S. Tax Court has decided the issue with respect to the pricing of
crude oil purchased from Saudi Arabia for the years 1979 to 1981 in favor of the
corporation. This decision is subject to appeal. Certain other issues for the
years 1979-1982 remain pending before the Tax Court. The ultimate resolution of
these issues is not expected to have a materially adverse effect upon the
corporation's operations or financial condition.
Claims for substantial amounts have been made against Exxon and certain of
its consolidated subsidiaries in other pending lawsuits, the outcome of which is
not expected to
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F16
have a materially adverse effect upon the corporation's operations or financial
condition.
The corporation and certain of its consolidated subsidiaries were
contingently liable at December 31, 1993 for $1,120 million, primarily relating
to guarantees for notes, loans and performance under contracts. This includes
$753 million representing guarantees of non-U.S. excise taxes and customs duties
of other companies, entered into as a normal business practice, under reciprocal
arrangements. Not included in this figure are guarantees by consolidated
affiliates of $955 million, representing Exxon's share of obligations of certain
equity companies.
Additionally, the corporation and its affiliates have numerous long-term
sales and purchase commitments in their various business activities, all of
which are expected to be fulfilled with no adverse consequences material to the
corporation's operations or financial condition.
The operations and earnings of the corporation and its affiliates throughout
the world have been, and may in the future be, affected from time to time in
varying degree by political developments and laws and regulations, such as
forced divestiture of assets; restrictions on production, imports and exports;
price controls; tax increases and retroactive tax claims; expropriation of
property; cancellation of contract rights and environmental regulations. Both
the likelihood of such occurrences and their overall effect upon the corporation
vary greatly from country to country and are not predictable.
- --------------------------------------------------------------------------------
15. OTHER POSTRETIREMENT BENEFITS
The corporation and several of its affiliates make contributions toward the cost
of providing certain health care and life insurance benefits to retirees, their
beneficiaries and covered dependents. The corporation determines the level of
its contributions to these plans annually; no commitments have been made
regarding the level of such contributions in the future. Corporation
contributions in 1991 were expensed as paid ($109 million). The accrual method
of accounting for these benefits was adopted January 1, 1992 in accordance with
the provisions of Statement of Financial Accounting Standards No. 106,
"Employers' Accounting for Postretirement Benefits Other Than Pensions."
The accumulated postretirement benefit obligation is based on the existing
level of the corporation's contribution toward these plans. Plan assets include
investments in equity and fixed income securities.
1993 1992
------------------------------ ------------------------------
Other postretirement benefits expense Total Health Life/Other Total Health Life/Other
- -----------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
Service cost $ 22 $ 10 $ 12 $ 21 $ 10 $ 11
Interest cost 127 49 78 125 49 76
Actual (gains) on plan assets (36) - (36) (25) - (25)
Deferral of actual versus assumed return on plan assets 11 - 11 7 - 7
Amortization of actuarial loss 1 1 - - - -
------ ---- ------ ------ ---- -----
Net expense $ 125 $ 60 $ 65 $ 128 $ 59 $ 69
====== ==== ====== ====== ==== =====
- --------------------------------------------------------------------------------
Dec. 31, 1993 Dec. 31, 1992
------------------------------ ------------------------------
Other postretirement benefit plans status Total Health Life/Other Total Health Life/Other
- -----------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
Accumulated postretirement benefit obligation
Retirees $1,326 $457 $ 869 $1,160 $453 $ 707
Fully eligible participants 114 41 73 142 62 80
Other active participants 355 140 215 250 91 159
------ ---- ------ ------ ---- -----
1,795 638 1,157 1,552 606 946
Funded assets (market values) (289) - (289) (260) - (260)
Unrecognized prior service costs (21) (21) - (15) (15) -
Unrecognized net gain/(loss) (194) (35) (159) 28 10 18
------ ---- ------ ------ ---- -----
Book reserves $1,291 $582 $ 709 $1,305 $601 $ 704
====== ==== ====== ====== ==== =====
Assumptions in accumulated postretirement
benefit obligation and expense (percent)
Discount rate 7.25 8.5
Long-term rate of compensation increase 5.00 5.0
Long-term annual rate of return on funded assets 10.00 10.0
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F17
16. ANNUITY BENEFITS
Exxon and many of its affiliates have defined benefit retirement plans which
cover substantially all of their employees. Plan benefits are generally based
on years of service and employees' compensation during their last years of
employment.
Assets are contributed to trustees and insurance companies to provide
benefits for many of Exxon's retirement plans, including the Exxon Annuity Plan,
Exxon's principal U.S. plan. All U.S. plans which are subject to funding
requirements meet federal government funding standards. Certain smaller U.S.
plans, and a number of non-U.S. plans, are not funded because of local tax
conventions and regulatory practices which do not encourage funding. Book
reserves have been established for these plans to provide for future benefit
payments.
The discount rate used in calculating the year-end pension liability for
financial reporting purposes is based on the year-end rate of interest on high
quality bonds, as required by current accounting standards. This discount rate
reflects the rate at which pension benefits could be effectively settled, either
by matching the liability with a bond portfolio or buying annuities from an
insurance company. Interest rates dropped significantly in many countries in
1993, and the resultant lower discount rates have increased the actuarial
present value of the benefit obligation from the previous year. While assets
and book reserves for U.S. and non-U.S. plans are less than projected benefit
obligations when measured on this settlement basis, they are greater than
benefits that have been accumulated through the end of 1993.
In contrast to the discount rate, which is limited to current bond interest
rates, the assumed rate of return on funded assets is based on anticipated
long-term investment performance. The majority of pension assets, for both U.S.
and non-U.S. plans, are invested in equities that have historically had returns
which exceeded bond interest rates. In the U.S., the expected long-term rate of
return for funded assets is 10 percent, and the average actual return over the
past 10 years was over 12 percent. This expected long-term rate of return is
utilized in reporting to appropriate federal government authorities. On this
basis, the Exxon Annuity Plan is fully funded.
U.S. Plans Non-U.S. Plans
------------------------- ------------------------
Annuity plans net pension cost/(credit) 1993 1992 1991 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------
(millions of dollars)
Cost of benefits earned by employees during the year $ 111 $ 108 $ 90 $ 144 $ 152 $ 141
Interest accrual on benefits earned in prior years 350 352 358 482 515 490
Actual (gains) on plan assets (463) (150) (685) (742) (258) (439)
Deferral of actual versus assumed return on assets 146 (203) 370 437 (73) 117
Amortization of actuarial (gains)/losses and prior service cost (35) (51) (55) 52 16 9
Net pension enhancement and curtailment/settlement expense (13) (8) (12) 6 11 40
----- ----- ------ ----- ----- -----
Net pension cost for the year $ 96 $ 48 $ 66 $ 379 $ 363 $ 358
===== ===== ===== ===== ===== =====
- ------------------------------------------------------------------------------------------------------------------------------
U.S. Plans Non-U.S. Plans
-------------------- --------------------
Dec. 31 Dec. 31 Dec. 31 Dec. 31
Annuity plans status 1993 1992 1993 1992
- ------------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
Actuarial present value of benefit obligations
Benefits based on service to date and present pay levels
Vested $3,749 $3,405 $5,418 $4,538
Non-vested 438 306 220 198
------ ------ ------ ------
Total accumulated benefit obligation 4,187 3,711 5,638 4,736
Additional benefits related to projected pay increases 901 637 921 907
------ ------ ------ ------
Total projected benefit obligation 5,088 4,348 6,559 5,643
------ ------ ------ ------
Funded assets (market values) 3,512 3,386 3,997 3,494
Book reserves 1,215 1,241 1,941 1,865
------ ------ ------ ------
Total funded assets and book reserves 4,727 4,627 5,938 5,359
------ ------ ------ ------
Assets and reserves in excess of/(less than) proj. benefit obligation $ (361) $ 279 $ (621) $ (284)
Consisting of:
Unrecognized net gain at transition $ 374 $ 438 $ 37 $ 45
Unrecognized net actuarial (loss) since transition (635) (49) (457) (11)
Unrecognized prior service costs incurred since transition (100) (110) (201) (318)
Assets and reserves in excess of accumulated benefit obligation $ 540 $ 916 $ 300 $ 623
Assumptions in projected benefit obligation and expense (percent)
Discount rate 7.25 8.5 5.0- 9.0 6.0-10.0
Long-term rate of compensation increase 5.00 5.0 4.0- 9.0 4.0- 9.0
Long-term annual rate of return on funded assets 10.00 10.0 6.0-10.0 6.0-11.0
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F18
17. INCENTIVE PROGRAM
The 1993 Incentive Program provides for grants of stock options, stock
appreciation rights (SARs), restricted stock and other forms of award. Awards
may be granted over the 10-year period ending April 28, 2003 to eligible
employees of the corporation and those affiliates at least 50 percent owned. The
number of shares of stock which may be awarded each year under the 1993
Incentive Program may not exceed seven tenths of one percent (0.7%) of the total
number of shares of common stock of the corporation outstanding on December 31
of the preceding year. If the total number of shares effectively granted in any
year is less than the maximum number of shares allowable, the balance may be
carried over to the following year. Outstanding awards are subject to certain
forfeiture provisions contained in the program or award instrument.
As under earlier programs, options and SARs may be granted at prices not
less than 100 percent of market value on the date of grant. Options and SARs
thus far granted are exercisable after one year of continuous employment
following the date of grant. Options for 35,063,227 and 32,519,469 common
shares were outstanding at December 31, 1993 and 1992 respectively. Of those
options, 8,274,872 and 10,238,925 at December 31, 1993 and 1992, respectively,
included SARs. In anticipation of settlement of SARs at market value of the
shares covered by the options to which they are attached, $23 million was
credited to earnings in 1993, $26 million was credited in 1992 and $29 million
was charged in 1991. Exercise of either a related option or a related SAR
cancels the other to the extent exercised. No SARs were granted in 1993.
Changes that occurred during 1993 in options outstanding are summarized
below:
1993 Program 1988 Program 1983 Program
- ---------------------------------------------------------------------
(number of common shares)
Outstanding at
December 31, 1992 - 25,965,192 6,554,277
Granted at $63.56
average per share 5,965,350 - -
Less: Exercised at $38.87
average per share - 1,311,839 1,960,803
Expired - 148,950 -
--------- ---------- ---------
Outstanding at
December 31, 1993 5,965,350 24,504,403 4,593,474
========= ========== =========
Options exercisable at
December 31, 1993 - 24,504,403 4,593,474
========= ========== =========
Shares available for granting at the beginning of 1993 were 1,700,050 and
2,681,576 at the end of 1993. The weighted average option price per common
share of the options outstanding at December 31, 1993 under the 1993 Incentive
Program and earlier programs was $52.36.
The effect on net income per common share from the assumed exercise of stock
options outstanding at year-end 1993, 1992 or 1991 would be insignificant.
At December 31, 1993 and 1992, respectively, 139,250 and 159,750 shares of
restricted common stock were outstanding.
F19
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
18. INCOME, EXCISE AND OTHER TAXES
1993 1992 1991
- ------------------------------------------------------------------------------------------------------------------------
United Non- United Non- United Non-
States U.S. Total States U.S. Total States U.S. Total
---------------------------- --------------------------- ---------------------------
(millions of dollars)
Income taxes
Federal or non-U.S.
Current $ 622 $ 1,941 $ 2,563 $ 642 $ 2,166 $ 2,808 $ 689 $ 2,262 $ 2,951
Deferred - net 73 50 123 (143) (279) (422) (142) 2 (140)
U.S. tax on non-U.S.
operations (16) - (16) 15 - 15 11 - 11
------ ------- ------- ------ ------- ------- ------ ------- -------
679 1,991 2,670 514 1,887 2,401 558 2,264 2,822
State 102 - 102 76 - 76 96 - 96
------ ------- ------- ------ ------- ------- ------ ------- -------
Total income tax expense 781 1,991 2,772 590 1,887 2,477 654 2,264 2,918
Excise taxes 2,179 9,528 11,707 2,351 10,161 12,512 2,546 9,675 12,221
Other taxes and duties 987 18,758 19,745 1,019 20,494 21,513 1,047 19,776 20,823
------ ------- ------- ------ ------- ------- ------ ------- -------
Total $3,947 $30,277 $34,224 $3,960 $32,542 $36,502 $4,247 $31,715 $35,962
====== ======= ======= ====== ======= ======= ====== ======= =======
The above provisions for deferred income taxes include net credits for the
effect of changes in tax law provisions and rates of $146 million in 1993, $153
million in 1992 and $164 million in 1991. Income taxes of $109 million in 1993
and $210 million in 1992, respectively, were credited directly to shareholders'
equity.
- ------------------------------------------------------------------------------
The reconciliation between income tax expense and a theoretical U.S. tax
computed by applying a rate of 35 percent for 1993 and 34 percent for 1992 and
1991, is as follows:
1993 1992 1991
- -------------------------------------------------------------------------
(millions of dollars)
Earnings before Federal and non-U.S.
income taxes
United States $1,893 $1,158 $1,554
Non-U.S. 6,057 6,053 6,868
------ ------ ------
Total $7,950 $7,211 $8,422
------ ------ ------
Theoretical tax $2,783 $2,452 $2,863
Effect of equity method accounting (320) (318) (350)
Adjustment for non-U.S. taxes in excess
of theoretical U.S. tax 191 147 279
U.S. tax on non-U.S. operations (16) 15 11
Other U.S. 32 105 19
------ ------ ------
Federal and non-U.S. income tax expense $2,670 $2,401 $2,822
====== ====== ======
Total effective tax rate 38.5% 37.9% 38.4%
The effective income tax rate includes state income taxes and the
corporation's share of income taxes of equity companies. Equity company taxes
totaled $528 million in 1993, $463 million in 1992 and $579 million in 1991,
essentially all outside the U.S.
Deferred income taxes reflect the impact of temporary differences between
the amount of assets and liabilities recognized for financial reporting purposes
and such amounts recognized for tax purposes.
Deferred tax liabilities (assets) are comprised of the following at December
31:
Tax effects of temporary differences for: 1993 1992
- -------------------------------------------------------------------------
(millions of dollars)
Depreciation $ 8,526 $ 8,758
Intangible development costs 3,287 3,380
Capitalized interest 850 756
Other liabilities 1,089 1,130
------- -------
Total deferred tax liabilities 13,752 14,024
------- -------
Pension and other postretirement benefits (1,074) (1,097)
Site restoration reserves (787) (850)
Tax loss carryforwards (702) (576)
Other assets (1,116) (1,217)
------- -------
Total deferred tax assets (3,679) (3,740)
------- -------
Asset valuation allowances 480 421
------- -------
Net deferred tax liabilities $10,553 $10,705
======= =======
The corporation had $8.1 billion of indefinitely reinvested, undistributed
earnings from subsidiary companies outside the U.S. Unrecognized deferred taxes
on remittance of these funds are not expected to be material.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS F20
19. DISTRIBUTION OF EARNINGS AND ASSETS
Segment 1993 1992 1991
- ----------------------------------------------------------------------------------------------------------------------------
Corporate Corporate Corporate
Petroleum Chemicals total Petroleum Chemicals total Petroleum Chemicals total
--------- --------- --------- --------- --------- --------- --------- --------- ---------
(millions of dollars)
Sales and operating
revenue
Non-affiliated $ 98,808 $ 8,641 $109,532 $104,282 $ 9,131 $115,672 $103,752 $ 9,171 $115,068
Intersegment 2,411 1,383 - 2,817 1,497 - 2,786 1,532 -
-------- ------- -------- -------- ------- -------- -------- ------- --------
Total $101,219 $10,024 $109,532 $107,099 $10,628 $115,672 $106,538 $10,703 $115,068
======== ======= ======== ======== ======= ======== ======== ======= ========
Operating profit $ 7,445 $ 638 $ 8,390 $ 6,538 $ 660 $ 7,655 $ 7,745 $ 672 $ 8,820
Add/(deduct):
Income taxes (2,938) (207) (3,156) (2,403) (205) (2,666) (3,025) (195) (3,260)
Minority interests (136) (8) (302) (169) 4 (310) (80) 3 (216)
Earnings of equity
companies 957 (12) 945 982 (8) 974 1,043 32 1,075
Corporate and
financing - - (597) - - (843) - - (819)
-------- ------- -------- -------- ------- -------- -------- ------- --------
Earnings before
accounting changes 5,328 411 5,280 4,948 451 4,810 5,683 512 5,600
Cumulative effect of
accounting changes - - - - - (40) - - -
-------- ------- -------- -------- ------- -------- -------- ------- --------
Earnings $ 5,328 $ 411 $ 5,280 $ 4,948 $ 451 $ 4,770 $ 5,683 $ 512 $ 5,600
======== ======= ======== ======== ======= ======== ======== ======= ========
Identifiable assets $ 64,336 $ 8,478 $ 84,145 $ 65,650 $ 8,597 $ 85,030 $ 68,705 $ 8,630 $ 87,560
Depreciation and
depletion 4,033 408 4,884 4,182 415 5,044 4,084 382 4,824
Additions to plant 5,392 542 6,919 5,686 594 7,138 5,635 575 7,262
Geographic Sales and other operating revenue Earnings Identifiable assets
- ---------------------------------------------------------------------------------------------------------
Non-affiliated Interarea Total
--------------------------------------------------------------------
(millions of dollars)
1993 Petroleum and chemicals
United States $ 22,285 $ 741 $ 23,026 $1,667 $25,369
Other Western Hemisphere 17,098 416 17,514 317 11,541
Eastern Hemisphere 68,069 2,095 70,164 3,755 35,904
Other/eliminations 2,080 (3,252) (1,172) (459) 11,331
-------- -------- -------- ------ -------
Corporate total $109,532 - $109,532 $5,280 $84,145
======== ======== ======== ====== =======
1992 Petroleum and chemicals
United States $ 24,028 $ 906 $ 24,934 $1,192 $26,042
Other Western Hemisphere 17,810 310 18,120 275 12,632
Eastern Hemisphere 71,578 3,403 74,981 3,932 35,573
Other/eliminations 2,256 (4,619) (2,363) (629) 10,783
-------- -------- -------- ------ -------
Corporate total $115,672 - $115,672 $4,770 $85,030
======== ======== ======== ====== =======
1991 Petroleum and chemicals
United States $ 25,175 $ 744 $ 25,919 $1,478 $26,217
Other Western Hemisphere 18,206 216 18,422 150 14,491
Eastern Hemisphere 69,542 2,835 72,377 4,567 36,627
Other/eliminations 2,145 (3,795) (1,650) (595) 10,225
-------- -------- -------- ------ -------
Corporate total $115,068 - $115,068 $5,600 $87,560
======== ======== ======== ====== =======
Transfers between business activities or areas are at estimated market
prices.
QUARTERLY INFORMATION F21
1993 1992
------------------------------------------- -------------------------------------------
First Second Third Fourth First Second Third Fourth
Quarter Quarter Quarter Quarter Year Quarter Quarter Quarter Quarter Year
- -------------------------------------------------------------------------------------------------------------------------
(thousands of barrels daily)
Volumes
Production of crude oil
and natural gas liquids 1,676 1,649 1,620 1,725 1,667 1,762 1,675 1,665 1,716 1,705
Refinery crude oil runs 3,182 3,296 3,321 3,277 3,269 3,355 3,232 3,227 3,398 3,303
Petroleum product sales 4,870 4,831 4,923 5,075 4,925 4,925 4,761 4,900 5,046 4,909
(millions of cubic feet daily)
Natural gas production
available for sale 7,090 4,678 4,619 6,930 5,825 6,927 4,835 4,416 6,472 5,661
(millions of dollars)
Summarized financial data
Sales and other operating
revenue $26,897 27,604 27,380 27,651 109,532 $27,434 27,536 30,431 30,271 115,672
Gross profit* $10,798 11,459 11,521 12,635 46,413 $12,056 11,512 13,051 12,530 49,149
Net income as reported $ 1,185 1,235 1,360 1,500 5,280 $ 1,350 955 1,135 1,400 4,840
Effect of adopting
accounting changes - - - - - $ (15) (25) 10 - (30)
Cumulative effect of
accounting changes - - - - - $ (40) - - - (40)
Net income as restated $ 1,185 1,235 1,360 1,500 5,280 $ 1,295 930 1,145 1,400 4,770
(dollars per share)
Per share data
Net income per common
share as reported $ 0.94 0.98 1.09 1.20 4.21 $ 1.07 0.76 0.90 1.12 3.85
Effect of adopting
accounting changes - - - - - $ (0.01) (0.03) 0.01 - (0.03)
Cumulative effect of
accounting changes - - - - - $ (0.03) - - - (0.03)
Net income per common
share as restated $ 0.94 0.98 1.09 1.20 4.21 $ 1.03 0.73 0.91 1.12 3.79
Dividends per common share $ 0.72 0.72 0.72 0.72 2.88 $ 0.67 0.72 0.72 0.72 2.83
Dividends per preferred share $ 1.17 1.17 1.17 1.17 4.68 $ 1.17 1.17 1.17 1.17 4.68
Common Stock prices
High $66.750 69.000 66.750 66.375 69.000 $61.250 64.250 65.500 64.125 65.500
Low $57.750 63.250 63.375 61.000 57.750 $53.750 54.250 61.000 58.125 53.750
The price range of Exxon Common Stock is based on the composite tape of the
several U.S. exchanges where Exxon Common Stock is traded. The principal
market where Exxon Common Stock (XON) is traded is the New York Stock Exchange,
although the stock is traded on most major exchanges in the United States, as
well as on the London, Tokyo and other foreign exchanges.
At January 31, 1994, there were 620,467 holders of record of Exxon Common
Stock.
On January 26, 1994, the corporation declared a $0.72 dividend per common
share, payable March 10, 1994.
*Gross profit equals sales and other operating revenue less estimated costs
associated with products sold.
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION AND PRODUCTION
ACTIVITIES F22
Consolidated Subsidiaries
------------------------------------------------------ Non-
United Australia Consolidated Total
Results of Operations States Canada Europe and Far East Other Total Interests Worldwide
- ----------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
1993 - Revenue
Sales to third parties $1,275 $ 346 $2,336 $1,655 $ 106 $ 5,718 $2,167 $ 7,885
Transfers 2,829 712 1,063 876 166 5,646 326 5,972
------ ------ ------ ------ ------ ------- ------ -------
4,104 1,058 3,399 2,531 272 11,364 2,493 13,857
Production costs excluding taxes 1,204 430 1,114 412 64 3,224 369 3,593
Exploration expenses 132 41 250 81 144 648 77 725
Depreciation and depletion 1,196 480 700 404 136 2,916 196 3,112
Taxes other than income 479 21 60 532 2 1,094 809 1,903
Related income tax 459 19 435 378 38 1,329 438 1,767
------ ------ ------ ------ ------ ------- ------ -------
Results of producing activities 634 67 840 724 (112) 2,153 604 2,757
Other earnings* 296 (35) 194 26 45 526 30 556
------ ------ ------ ------ ------ ------- ------ -------
Total earnings $ 930 $ 32 $1,034 $ 750 $ (67) $ 2,679 $ 634 $ 3,313
====== ====== ====== ====== ====== ======= ====== =======
1992 - Revenue
Sales to third parties $ 993 $ 335 $2,735 $2,019 $ 171 $ 6,253 $2,363 $ 8,616
Transfers 3,338 885 1,067 869 243 6,402 384 6,786
------ ------ ------ ------ ------ ------- ------ -------
4,331 1,220 3,802 2,888 414 12,655 2,747 15,402
Production costs excluding taxes 1,251 429 1,330 426 77 3,513 404 3,917
Exploration expenses 183 58 379 93 96 809 83 892
Depreciation and depletion 1,401 551 702 419 131 3,204 293 3,497
Taxes other than income 474 17 76 635 2 1,204 896 2,100
Related income tax 350 38 448 542 43 1,421 443 1,864
------ ------ ------ ------ ------ ------- ------ -------
Results of producing activities 672 127 867 773 65 2,504 628 3,132
Other earnings* 86 (27) 179 (40) (5) 193 49 242
------ ------ ------ ------ ------ ------- ------ -------
Total earnings $ 758 $ 100 $1,046 $ 733 $ 60 $ 2,697 $ 677 $ 3,374
====== ====== ====== ====== ====== ======= ====== =======
1991 - Revenue
Sales to third parties $ 955 $ 309 $2,457 $2,051 $ 206 $5,978 $2,533 $ 8,511
Transfers 3,405 1,007 1,198 760 219 6,589 398 6,987
------ ------ ------ ------ ------ ------- ------ -------
4,360 1,316 3,655 2,811 425 12,567 2,931 15,498
Production costs excluding taxes 1,388 628 1,272 399 64 3,751 406 4,157
Exploration expenses 335 77 292 94 114 912 99 1,011
Depreciation and depletion 1,466 607 665 392 124 3,254 237 3,491
Taxes other than income 513 17 74 694 3 1,301 1,010 2,311
Related income tax 243 35 534 478 98 1,388 498 1,886
------ ------ ------ ------ ------ ------- ------ -------
Results of producing activities 415 (48) 818 754 22 1,961 681 2,642
Other earnings* 216 114 95 15 17 457 29 486
------ ------ ------ ------ ------ ------- ------ -------
Total earnings $ 631 $ 66 $ 913 $ 769 $ 39 $2,418 $ 710 $ 3,128
====== ====== ====== ====== ====== ======= ====== =======
Average sales prices and production costs per unit of production
- ---------------------------------------------------------------------------------------------------------------------------
During 1993
Average sales prices
Crude oil and NGL, per barrel $13.19 $11.71 $16.68 $18.19 $16.04 $15.07 $16.07 $15.12
Natural gas, per thousand cubic feet 2.11 1.33 2.49 1.21 0.95 1.98 2.78 2.26
Average production costs, per barrel*** 3.90 4.45 5.30 2.52 3.72 4.05 2.45 3.80
During 1992
Average sales prices
Crude oil and NGL, per barrel** $14.59 $13.17 $19.22 $21.08 $18.48 $17.01 $17.93 $17.05
Natural gas, per thousand cubic feet** 1.84 1.22 2.86 1.54 0.66 2.02 3.04 2.39
Average production costs, per barrel*** 3.98 4.23 6.49 2.73 3.08 4.38 2.67 4.11
During 1991
Average sales prices
Crude oil and NGL, per barrel** $14.52 $13.40 $19.86 $21.34 $17.32 $17.03 $18.02 $17.07
Natural gas, per thousand cubic feet** 1.61 1.20 2.99 1.76 0.71 1.97 3.35 2.47
Average production costs, per barrel*** 4.25 5.80 6.69 2.78 2.32 4.71 2.73 4.40
*Earnings related to transportation of oil and gas, sale of third party
purchases, oil sands operations and technical services agreements, and
reduced by minority interests
**1992 and 1991 realizations have been restated for comparability
***Natural gas included by conversion to crude oil equivalent; production costs
exclude all taxes, 1992 and 1991 have been restated for comparability
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION F23
AND PRODUCTION ACTIVITIES
OIL AND GAS EXPLORATION AND PRODUCTION COSTS
The amounts shown for net capitalized costs of consolidated subsidiaries are
$3,117 million less at year-end 1993 and $3,426 million less at year-end 1992
than the amounts reported as investments in property, plant and equipment for
exploration and production in note 8, page F13. This is due to the exclusion
from capitalized costs of certain transportation and research assets and assets
relating to the oil sands operations, and to inclusion of accumulated provisions
for site restoration costs, all as required in Statement of Financial Accounting
Standards No. 19.
The amounts reported as costs incurred include both capitalized costs and
costs charged to expense during the year. Total worldwide costs incurred in
1993 were $4,123 million, down $511 million from 1992, due primarily to lower
development costs. 1992 costs were $4,634 million, down $199 million from 1991,
due primarily to lower exploration costs.
Consolidated Subsidiaries
---------------------------------------------------------
Non-
United Australia Consolidated Total
Capitalized costs States Canada Europe and Far East Other Total Interests Worldwide
- ----------------------------------------------------------------------------------------------------------------------
(millions of dollars)
As of December 31, 1993
Property (acreage) costs
- Proved $ 3,576 $3,438 $ 22 $ 495 $ 687 $ 8,218 $ 6 $ 8,224
- Unproved 561 150 45 248 59 1,063 18 1,081
------- ------ ------- ------ ------ ------- ------ -------
Total property costs 4,137 3,588 67 743 746 9,281 24 9,305
Producing assets 22,514 3,778 13,375 5,356 1,038 46,061 2,427 48,488
Support facilities 371 79 372 505 33 1,360 125 1,485
Incomplete construction 340 130 1,578 760 77 2,885 136 3,021
------- ------ ------- ------ ------ ------- ------ -------
Total capitalized costs 27,362 7,575 15,392 7,364 1,894 59,587 2,712 62,299
Accumulated depreciation and
depletion 14,463 2,855 8,081 3,910 1,132 30,441 1,866 32,307
------- ------ ------- ------ ------ ------- ------ -------
Net capitalized costs $12,899 $4,720 $ 7,311 $3,454 $ 762 $29,146 $ 846 $29,992
======= ====== ======= ====== ====== ======= ====== =======
As of December 31, 1992
Property (acreage) costs
- Proved $ 3,603 $3,688 $ 23 $ 550 $ 689 $ 8,553 $ 5 $ 8,558
- Unproved 638 224 44 329 14 1,249 13 1,262
------- ------ ------- ------ ------ ------- ------ -------
Total property costs 4,241 3,912 67 879 703 9,802 18 9,820
Producing assets 20,750 4,116 12,354 4,984 1,052 43,256 2,546 45,802
Support facilities 382 58 364 495 31 1,330 133 1,463
Incomplete construction 2,175 48 2,153 621 131 5,128 130 5,258
------- ------ ------- ------ ------ ------- ------ -------
Total capitalized costs 27,548 8,134 14,938 6,979 1,917 59,516 2,827 62,343
Accumulated depreciation and
depletion 14,472 2,859 7,880 3,687 1,164 30,062 1,879 31,941
------- ------ ------- ------ ------ ------- ------ -------
Net capitalized costs $13,076 $5,275 $ 7,058 $3,292 $ 753 $29,454 $ 948 $30,402
======= ====== ======= ====== ====== ======= ====== =======
Costs incurred in property acquisitions, exploration and development activities
- ----------------------------------------------------------------------------------------------------------------------
During 1993
Property acquisition costs
- Proved $ 3 $ 10 - - - $ 13 $ 1 $ 14
- Unproved 12 - $ 2 $ 8 $ 45 67 - 67
Exploration costs 150 41 284 110 176 761 113 874
Development costs 1,001 207 1,213 576 68 3,065 103 3,168
------ ------ ------- ------ ------ ------- - ------ -------
Total $1,166 $ 258 $ 1,499 $ 694 $ 289 $ 3,906 $ 217 $ 4,123
====== ====== ======= ====== ====== ======= ====== =======
During 1992
Property acquisition costs
- Proved $ 27 $ 7 - $ 1 - $ 35 $ 2 $ 37
- Unproved 9 4 $ 1 - $ 21 35 8 43
Exploration costs 178 49 395 131 102 855 112 967
Development costs 1,209 121 1,453 516 98 3,397 190 3,587
------ ------ ------- ------ ------ ------- ------ -------
Total $1,423 $ 181 $ 1,849 $ 648 $ 221 $ 4,322 $ 312 $ 4,634
====== ====== ======= ====== ====== ======= ====== =======
During 1991
Property acquisition costs
- Proved $ 3 $ 4 - $ 1 $ 2 $ 10 - $ 10
- Unproved 95 10 $ 1 6 - 112 - 112
Exploration costs 381 89 371 141 99 1,081 $ 118 1,199
Development costs 1,355 196 1,201 488 85 3,325 187 3,512
------ ------ ------- ------ ------ ------- ------- -------
Total $1,834 $ 299 $ 1,573 $ 636 $ 186 $ 4,528 $ 305 $ 4,833
====== ====== ======= ====== ====== ======= ======= =======
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION F24
AND PRODUCTION ACTIVITIES
OIL AND GAS RESERVES
The following information describes changes during the years and balances of
proved oil and gas reserves at year-end 1991, 1992 and 1993.
The definitions used are in accordance with applicable Securities and
Exchange Commission regulations.
Proved reserves are the estimated quantities of oil and gas which geological
and engineering data demonstrate with reasonable certainty to be recoverable in
future years from known reservoirs under existing economic and operating
conditions. In some cases, substantial new investments in additional wells and
related facilities will be required to recover these proved reserves.
Proved reserves include 100 percent of each majority-owned affiliate's
participation in proved reserves and Exxon's ownership percentage of the proved
reserves of equity companies, but exclude royalties and quantities due others
when produced. Gas reserves exclude the gaseous equivalent of liquids expected
to be removed from the gas on leases, at field facilities and at gas processing
plants. These liquids are included in net proved reserves of crude oil and
natural gas liquids.
Consolidated Subsidiaries
----------------------------------------------------
Non-
United Australia Consolidated Total
Crude Oil and Natural Gas Liquids States Canada Europe and Far East Other Total Interests Worldwide
- --------------------------------------------------------------------------------------------------------------------------------
(millions of barrels)
Net proved developed and undeveloped reserves
January 1, 1991 2,437 1,447 1,499 819 129 6,331 522 6,853
Revisions 208 (12) 69 155 12 432 2 434
Purchases - - - - - - - -
Sales (4) (26) - - - (30) - (30)
Improved recovery 17 - - - - 17 - 17
Extensions and discoveries 16 1 15 7 10 49 1 50
Production (226) (87) (128) (120) (23) (584) (27) (611)
----- ----- ----- ---- --- ----- --- -----
December 31, 1991 2,448 1,323 1,455 861 128 6,215 498 6,713
Revisions 47 (10) 51 52 (7) 133 (8) 125
Purchases - 1 1 - - 2 - 2
Sales (11) (17) - - - (28) - (28)
Improved recovery 5 - 89 - - 94 - 94
Extensions and discoveries 120 5 21 31 1 178 1 179
Production (216) (81) (139) (122) (22) (580) (27) (607)
----- ----- ----- ---- --- ----- --- -----
December 31, 1992 2,393 1,221 1,478 822 100 6,014 464 6,478
Revisions 116 2 43 92 5 258 51 309
Purchases 10 4 - - - 14 - 14
Sales (20) (18) - (2) - (40) - (40)
Improved recovery 16 3 - - 1 20 - 20
Extensions and discoveries 11 - 28 19 2 60 2 62
Production (202) (77) (149) (123) (17) (568) (25) (593)
----- ----- ----- ---- --- ----- --- -----
December 31, 1993 2,324 1,135 1,400 808 91 5,758 492 6,250
- --------------------------------------------------------------------------------------------------------------------------------
Oil sands reserves
At December 31, 1991 - 283 - - - 283 - 283
At December 31, 1992 - 327 - - - 327 - 327
At December 31, 1993 - 314 - - - 314 - 314
Worldwide net proved developed and undeveloped
reserves (including oil sands)
At December 31, 1991 2,448 1,606 1,455 861 128 6,498 498 6,996
At December 31, 1992 2,393 1,548 1,478 822 100 6,341 464 6,805
At December 31, 1993 2,324 1,449 1,400 808 91 6,072 492 6,564
================================================================================================================================
Developed reserves, included above
(excluding oil sands)
At December 31, 1991 2,010 736 834 609 94 4,283 459 4,742
At December 31, 1992 1,865 625 853 619 73 4,035 434 4,469
At December 31, 1993 1,821 524 859 624 81 3,909 458 4,367
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION F25
AND PRODUCTION ACTIVITIES
Net proved developed reserves are those volumes which are expected to be
recovered through existing wells with existing equipment and operating methods.
Undeveloped reserves are those volumes which are expected to be recovered as a
result of future investments to drill new wells, to recomplete existing wells
and/or to install facilities to collect and deliver the production from existing
and future wells.
Reserves attributable to certain oil and gas discoveries were not considered
proved as of year-end 1993 due to geological, technological or economic
uncertainties and therefore are not included in the tabulation.
Crude oil and natural gas liquids and natural gas production quantities
shown are the net volumes withdrawn from Exxon's oil and gas reserves. The
natural gas quantities differ from the quantities of gas delivered for sale by
the producing function as reported on page F27 due to volumes consumed or flared
and inventory changes. Such quantities amounted to approximately 231 billion
cubic feet in 1991, 203 billion cubic feet in 1992 and 213 billion cubic feet in
1993.
Consolidated Subsidiaries
-----------------------------------------------------------
Non-
United Australia Consolidated Total
Natural Gas States Canada Europe and Far East Other Total Interests Worldwide
- -----------------------------------------------------------------------------------------------------------------------------
(billions of cubic feet)
Net proved developed and undeveloped
reserves
January 1, 1991 9,542 3,828 6,562 4,851 141 24,924 17,975 42,899
Revisions 1,041 (18) 48 617 (30) 1,658 62 1,720
Purchases - - - - - - - -
Sales (30) (251) - - - (281) - (281)
Improved recovery 2 - - - - 2 - 2
Extensions and discoveries 282 38 262 52 - 634 62 696
Production (682) (201) (417) (175) (28) (1,503) (734) (2,237)
------ ----- ----- ----- --- ------ ------ ------
December 31, 1991 10,155 3,396 6,455 5,345 83 25,434 17,365 42,799
Revisions 149 (350) 207 (378) (43) (415) (133) (548)
Purchases - - - - - - - -
Sales (50) (227) - - - (277) - (277)
Improved recovery 24 1 465 - - 490 - 490
Extensions and discoveries 103 - 564 379 4 1,050 174 1,224
Production (649) (169) (440) (236) (23) (1,517) (758) (2,275)
------ ----- ----- ----- --- ------ ------ ------
December 31, 1992 9,732 2,651 7,251 5,110 21 24,765 16,648 41,413
Revisions 131 13 253 601 100 1,098 230 1,328
Purchases 54 39 - - - 93 - 93
Sales (57) (90) - (1) - (148) - (148)
Improved recovery 17 4 - - - 21 - 21
Extensions and discoveries 350 76 258 886 - 1,570 313 1,883
Production (697) (188) (413) (276) (9) (1,583) (756) (2,339)
------ ----- ----- ----- --- ------ ------ ------
December 31, 1993 9,530 2,505 7,349 6,320 112 25,816 16,435 42,251
- -----------------------------------------------------------------------------------------------------------------------------
Worldwide net proved developed and
undeveloped reserves
At December 31, 1991 10,155 3,396 6,455 5,345 83 25,434 17,365 42,799
At December 31, 1992 9,732 2,651 7,251 5,110 21 24,765 16,648 41,413
At December 31, 1993 9,530 2,505 7,349 6,320 112 25,816 16,435 42,251
=============================================================================================================================
Developed reserves, included above
At December 31, 1991 7,816 2,959 4,018 2,895 74 17,762 8,779 26,541
At December 31, 1992 7,632 2,252 3,836 3,315 16 17,051 8,421 25,472
At December 31, 1993 7,935 2,022 4,098 4,009 112 18,176 8,067 26,243
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION F26
AND PRODUCTION ACTIVITIES
STANDARDIZED MEASURE OF DISCOUNTED FUTURE CASH FLOWS
As required by the Financial Accounting Standards Board, the standardized
measure of discounted future net cash flows is computed by applying year-end
prices and costs, and a discount factor of 10 percent, to net proved reserves.
The corporation believes that the standardized measure is not meaningful and may
be misleading.
Consolidated Subsidiaries
--------------------------------------------------------------
Non-
United Australia Consolidated Total
States Canada Europe and Far East Other Total Interests* Worldwide
- -----------------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
As of December 31, 1991
Future cash inflows from sales of oil
and gas $44,929 $15,782 $44,202 $22,836 $2,141 $129,890 $60,690 $190,580
Future production and development costs 27,046 9,414 24,373 12,277 982 74,092 33,885 107,977
Future income tax expenses 4,967 2,595 8,528 3,999 543 20,632 11,033 31,665
------- ------- ------- ------- ------ -------- ------- --------
Future net cash flows 12,916 3,773 11,301 6,560 616 35,166 15,772 50,938
Effect of discounting net cash flows
at 10% 7,348 2,036 4,788 2,876 163 17,211 10,452 27,663
------- ------- ------- ------- ------ -------- ------- --------
Discounted future net cash flows $ 5,568 $ 1,737 $ 6,513 $ 3,684 $ 453 $ 17,955 $ 5,320 $ 23,275
======= ======= ======= ======= ====== ======== ======= ========
As of December 31, 1992
Future cash inflows from sales of oil
and gas $48,897 $15,496 $41,248 $19,680 $1,814 $127,135 $54,722 $181,857
Future production and development costs 24,681 7,704 19,965 10,941 781 64,072 28,056 92,128
Future income tax expenses 7,334 3,183 7,987 3,464 476 22,444 10,995 33,439
------- ------- ------- ------- ------ -------- ------- --------
Future net cash flows 16,882 4,609 13,296 5,275 557 40,619 15,671 56,290
Effect of discounting net cash flows
at 10% 8,175 2,351 5,767 2,157 157 18,607 9,738 28,345
------- ------- ------- ------- ------ -------- ------- --------
Discounted future net cash flows $ 8,707 $ 2,258 $ 7,529 $ 3,118 $ 400 $ 22,012 $ 5,933 $ 27,945
======= ======= ======= ======= ====== ======== ======= ========
As of December 31, 1993
Future cash inflows from sales of oil
and gas $38,261 $11,816 $33,639 $18,190 $1,234 $103,140 $49,276 $152,416
Future production and development costs 19,980 6,677 18,295 11,287 593 56,832 25,954 82,786
Future income tax expenses 4,566 2,016 5,467 2,515 345 14,909 9,098 24,007
------- ------- ------- ------- ------ -------- ------- --------
Future net cash flows 13,715 3,123 9,877 4,388 296 31,399 14,224 45,623
Effect of discounting net cash flows
at 10% 6,695 1,552 4,387 1,951 79 14,664 9,098 23,762
------- ------- ------- ------- ------ -------- ------- --------
Discounted future net cash flows $ 7,020 $ 1,571 $ 5,490 $ 2,437 $ 217 $ 16,735 $ 5,126 $ 21,861
======= ======= ======= ======= ====== ======== ======= ========
- ---------------------------------------------------------------------------------------------------------------------------------
CHANGE IN STANDARDIZED MEASURE OF DISCOUNTED FUTURE NET CASH FLOWS RELATING
TO PROVED OIL AND GAS RESERVES
Consolidated Subsidiaries 1993 1992 1991
- ---------------------------------------------------------------------------------------------------------------------------------
(millions of dollars)
Value of reserves added during the year due to extensions, discoveries, improved recovery
and net purchases less related costs $ 527 $ 1,452 $ 586
Changes in value of previous-year reserves due to:
Sales and transfers of oil and gas produced during the year, net of production (lifting) costs (6,975) (7,765) (7,696)
Development costs incurred during the year 2,947 3,305 3,306
Net change in prices, lifting and development costs (10,229) 5,185 (29,877)
Revisions of previous reserves estimates 1,137 580 2,516
Accretion of discount 2,817 2,588 4,417
Net change in income taxes 4,499 (1,288) 13,041
-------- ------- --------
Total change in the standardized measure during the year $ (5,277) $ 4,057 $(13,707)
======== ======= ========
*1992 and 1991 future cash inflows and future production and development
costs for non-consolidated interests have been restated for comparability
OPERATING SUMMARY F27
1993 1992 1991 1990 1989 1988 1987 1986 1985 1984 1983
- --------------------------------------------------------------------------------------------------------------------------------
(thousands of barrels daily)
Production of crude oil and natural gas
liquids
Net production
United States 553 591 619 640 693 760 756 761 768 778 781
Canada 210 223 237 260 269 206 188 164 116 93 90
Europe 408 381 349 298 338 429 441 458 417 412 370
Australia and Far East 337 334 329 315 309 326 326 304 330 310 267
Other 46 59 65 89 92 85 35 27 21 20 19
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total consolidated subsidiaries 1,554 1,588 1,599 1,602 1,701 1,806 1,746 1,714 1,652 1,613 1,527
Proportional interest in production of
non-consolidated interests 69 72 75 71 66 75 55 50 39 44 57
Oil sands production - Canada 44 45 41 39 37 38 34 32 29 21 23
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Worldwide 1,667 1,705 1,715 1,712 1,804 1,919 1,835 1,796 1,720 1,678 1,607
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Refinery crude oil runs
United States 841 911 937 868 999 968 1,026 1,080 1,054 1,021 958
Canada 408 391 432 489 487 350 351 332 344 365 378
Europe 1,389 1,387 1,401 1,327 1,257 1,200 1,116 1,112 1,003 1,111 1,135
Australia and Far East 515 507 464 498 463 430 397 415 399 424 449
Other 116 107 99 94 93 94 91 93 103 299 346
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Worldwide 3,269 3,303 3,333 3,276 3,299 3,042 2,981 3,032 2,903 3,220 3,266
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Petroleum product sales
Aviation fuels 379 376 372 382 382 344 338 317 326 312 316
Gasoline, naphthas 1,818 1,822 1,821 1,742 1,708 1,572 1,488 1,461 1,423 1,404 1,369
Home heating oils, kerosene, diesel oils 1,569 1,557 1,561 1,491 1,498 1,424 1,344 1,365 1,367 1,372 1,302
Heavy fuels 558 546 535 543 507 466 419 463 561 709 705
Specialty products 601 608 580 597 625 590 539 519 489 478 475
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total 4,925 4,909 4,869 4,755 4,720 4,396 4,128 4,125 4,166 4,275 4,167
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
United States 1,152 1,203 1,210 1,109 1,147 1,113 1,057 1,106 1,123 1,149 1,146
Canada 517 513 527 597 625 433 430 396 404 407 393
Europe 1,872 1,847 1,863 1,796 1,718 1,680 1,634 1,636 1,629 1,684 1,566
Other 1,384 1,346 1,269 1,253 1,230 1,170 1,007 987 1,010 1,035 1,062
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Worldwide 4,925 4,909 4,869 4,755 4,720 4,396 4,128 4,125 4,166 4,275 4,167
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
(millions of cubic feet daily)
Natural gas production available for
sale
Net production
United States 1,764 1,607 1,655 1,778 1,827 1,805 1,698 1,919 2,085 2,485 2,345
Canada 328 326 355 397 389 189 128 142 141 168 181
Europe 1,009 1,071 1,033 977 1,068 1,225 1,179 1,058 1,086 1,069 851
Australia and Far East 659 557 391 349 356 314 289 246 231 215 225
Other 6 54 66 64 59 59 62 55 70 70 70
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Total consolidated subsidiaries 3,766 3,615 3,500 3,565 3,699 3,592 3,356 3,420 3,613 4,007 3,672
Proportional interest in production of
non-consolidated interests 2,059 2,046 1,997 1,753 1,686 1,600 1,871 1,909 2,048 1,911 1,956
----- ----- ----- ----- ----- ----- ----- ----- ----- ----- -----
Worldwide 5,825 5,661 5,497 5,318 5,385 5,192 5,227 5,329 5,661 5,918 5,628
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
(millions of deadweight tons, daily average)
Tanker capacity, owned and chartered 6.5 7.1 7.2 8.4 8.8 9.0 9.2 10.2 12.7 13.5 15.8
===== ===== ===== ===== ===== ===== ===== ===== ===== ===== =====
Operating statistics include 100 percent of operations of majority-owned
subsidiaries; for other companies, gas, crude production and petroleum product
sales include Exxon's ownership percentage, and crude runs include quantities
processed for Exxon. Net production excludes royalties and quantities due others
when produced, whether payment is made in kind or cash.
DIRECTORS, OFFICERS, REGIONAL AND OPERATING ORGANIZATIONS F28
DIRECTORS
- -------------------------------------------------------------------------------
Randolph W. Bromery......President, Springfield College, Springfield,
Massachusetts; Commonwealth Professor, Emeritus,
University of Massachusetts at Amherst; President,
Geoscience Engineering Corporation [geological and
geophysical services]
D. Wayne Calloway........Chairman of the Board and Chief Executive Officer,
PepsiCo, Inc. [beverages, snack foods, and restaurants]
Jess Hay.................Chairman of the Board and Chief Executive Officer,
Lomas Financial Corporation [mortgage banking and other
financial services]
William R. Howell........Chairman of the Board and Chief Executive Officer, J.C.
Penney Company, Inc. [department stores and catalog
chain]
Lord Laing of Dunphail...Life President, United Biscuits (Holdings) plc [food
and confectionary products]
Philip E. Lippincott.....Chairman and Chief Executive Officer, Scott Paper
Company [sanitary paper, printing and publishing
papers, and forestry operations]
Marilyn Carlson Nelson...Director and Vice Chairman, Carlson Holdings Inc.
[travel, hotels, restaurants, and marketing services]
Lee R. Raymond...........Chairman of the Board and Chief Executive Officer
Charles R. Sitter........President
John H. Steele...........President Emeritus, Corporation of Woods Hole
Oceanographic Institution
Robert E. Wilhelm........Senior Vice President
Joseph D. Williams.......Retired Chairman of the Board and Chief Executive
Officer, Warner-Lambert Company [pharmaceuticals and
consumer health products]
STANDING COMMITTEES OF THE BOARD
- -------------------------------------------------------------------------------
Audit Committee..........D.W. Calloway (Chairman), W.R. Howell, Lord Laing of
Dunphail, M.C. Nelson, J.D. Williams
Board Advisory Committee
on Contributions.........C.R. Sitter (Chairman), J. Hay, P.E. Lippincott, M.C.
Nelson, R.E. Wilhelm
Board Compensation
Committee................W.R. Howell (Chairman), P.E. Lippincott (Vice
Chairman), D.W. Calloway, J. Hay
Nominating Committee.....R.W. Bromery (Chairman), Lord Laing of Dunphail, P.E.
Lippincott, M.C. Nelson, J.H. Steele, J.D. Williams
Public Issues Committee..J.D. Williams (Chairman), R.W. Bromery (Vice Chairman),
Lord Laing of Dunphail, C.R. Sitter, J.H. Steele, R.E.
Wilhelm
Executive Committee......L.R. Raymond (Chairman), C.R. Sitter (Vice Chairman),
R.W. Bromery, J. Hay, W.R. Howell
Finance Committee........L.R. Raymond (Chairman), C.R. Sitter (Vice Chairman)
EXECUTIVE OFFICERS
- -------------------------------------------------------------------------------
L.R. Raymond.............Chairman of the Board and Chief Executive Officer
C.R. Sitter..............President
C.M. Harrison............Senior Vice President
E.J. Hess................Senior Vice President
R.E. Wilhelm.............Senior Vice President
D.L. Baird, Jr...........Secretary
E.R. Cattarulla..........Vice President--Public Affairs
W.B. Cook................Vice President and Controller
R. Dahan.................Vice President
S.F. Goldmann............General Manager--Corporate Planning
G.L. Graves..............Vice President--Environment and Safety
R.P. Larkins.............Vice President
H.J. Longwell............Vice President
T.J. McDonagh, M.D. .....Vice President--Medicine and Occupational Health
R.B. Nesbitt.............Vice President
W.D. O'Brien.............Vice President and General Tax Counsel
C.K. Roberts.............Vice President and General Counsel
E.A. Robinson............Vice President and Treasurer
D.S. Sanders.............Vice President--Human Resources
D.E. Smiley..............Vice President--Washington Office
J.L. Thompson............Vice President
T.P. Townsend............Vice President--Investor Relations
CHIEF EXECUTIVES, REGIONAL AND OPERATING ORGANIZATIONS
- -------------------------------------------------------------------------------
DIVISIONS OF EXXON CORPORATION
R. Dahan.................President, Exxon Company, International
R.P. Larkins.............President, Exxon Coal and Minerals Company
H.J. Longwell............President, Exxon Company, U.S.A.
R.B. Nesbitt.............President, Exxon Chemical Company
J.L. Thompson............President, Exxon Exploration Company
AFFILIATED COMPANIES
C.M. Eidt, Jr. ..........President, Exxon Research and Engineering Company
D. Mendell, III..........President, Exxon Production Research Company
R.B. Peterson............Chairman of the Board, Imperial Oil Limited