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FORM 10-Q
SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
( X ) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended March 31, 1995
OR
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________to________
Commission File Number 1-2256
EXXON CORPORATION
______________________________________________________
(Exact name of registrant as specified in its charter)
NEW JERSEY 13-5409005
_______________________________ ______________________
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification Number)
225 E. John W. Carpenter Freeway, Irving, Texas 75062-2298
___________________________________________________________
(Address of principal executive offices) (Zip Code)
(214) 444-1000
___________________________________________________________
(Registrant's telephone number, including area code)
Indicate by check mark whether the registrant (1) has filed all
reports required to be filed by Section 13 or 15(d) of the
Securities Exchange Act of 1934 during the preceding 12 months
(or for such shorter period that the registrant was required to
file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No __.
Indicate the number of shares outstanding of each of the
issuer's classes of common stock, as of the latest practicable
date.
Class Outstanding as of March 31, 1995
_______________________________ ________________________________
Common stock, without par value 1,242,233,354
EXXON CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995
TABLE OF CONTENTS
PART I. FINANCIAL INFORMATION
Page
Number
Item 1. Financial Statements
Condensed Consolidated Statement of Income 3
Three months ended March 31, 1995 and 1994
Condensed Consolidated Balance Sheet 4
As of March 31, 1995 and December 31, 1994
Condensed Consolidated Statement of Cash Flows 5
Three months ended March 31, 1995 and 1994
Notes to Condensed Consolidated Financial Statements 5
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations 6-9
PART II. OTHER INFORMATION
Item 1. Legal Proceedings 10
Item 6. Exhibits and Reports on Form 8-K 10
Signature 11
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PART I. FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
EXXON CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)
Three Months Ended
March 31,
__________________
REVENUE 1995 1994
Sales and other operating revenue, _______ ______
including excise taxes $29,197 $25,624
Earnings from equity interests and other
revenue 582 340
_______ _______
Total revenue 29,779 25,964
_______ _______
COSTS AND OTHER DEDUCTIONS
Crude oil and product purchases 12,240 10,255
Operating expenses 3,042 3,070
Selling, general and administrative expenses 1,731 1,616
Depreciation and depletion 1,336 1,289
Exploration expenses, including dry holes 168 138
Interest expense 143 301
Excise taxes 3,070 2,741
Other taxes and duties 5,464 4,792
Income applicable to minority and preferred
interests 74 54
_______ _______
Total costs and other deductions 27,268 24,256
_______ _______
INCOME BEFORE INCOME TAXES 2,511 1,708
Income taxes 851 548
_______ _______
NET INCOME $ 1,660 $ 1,160
======= =======
Net income per common share* $ 1.33 $ 0.92
Dividends per common share $ 0.75 $ 0.72
Average number common shares outstanding
(millions) 1,241.9 1,241.9
* Computed as income less dividends on preferred stock divided by
the weighted average number of common shares outstanding.
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EXXON CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
March 31, Dec. 31,
1995 1994
ASSETS _______ _______
Current assets
Cash and cash equivalents $ 2,770 $ 1,157
Other marketable securities 404 618
Notes and accounts receivable - net 8,431 8,073
Inventories
Crude oil, products and merchandise 4,704 4,717
Materials and supplies 818 824
Prepaid taxes and expenses 1,325 1,071
_______ _______
Total current assets 18,452 16,460
Property, plant and equipment - net 64,535 63,425
Investments and other assets 8,284 7,977
_______ _______
TOTAL ASSETS $91,271 $87,862
======= =======
LIABILITIES
Current liabilities
Notes and loans payable $ 3,581 $ 3,858
Accounts payable and accrued liabilities 13,925 13,391
Income taxes payable 2,459 2,244
Total current liabilities 19,965 19,493
Long-term debt 9,178 8,831
Annuity reserves, deferred credits and other
liabilities 22,946 22,123
TOTAL LIABILITIES 52,089 50,447
_______ _______
SHAREHOLDERS' EQUITY
Preferred stock, without par value:
Authorized:200 million shares
Outstanding: 9 million shares at Mar. 31, 1995 526
9 million shares at Dec. 31, 1994 554
Guaranteed LESOP obligation (613) (613)
Common stock, without par value:
Authorized: 2,000 million shares
Issued: 1,813 million shares 2,822 2,822
Earnings reinvested 51,542 50,821
Cumulative foreign exchange translation adjustment 1,915 848
Common stock held in treasury:
571 million shares at Mar. 31, 1995 (17,010)
571 million shares at Dec. 31, 1994 (17,017)
_______ _______
TOTAL SHAREHOLDERS' EQUITY 39,182 37,415
_______ _______
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $91,271 $87,862
======= =======
The number of shares of common stock issued and outstanding at March
31, 1995 and December 31, 1994 were 1,242,233,354 and 1,241,744,053,
respectively.
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EXXON CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
Three Months Ended
_____March 31,____
1995 1994
______ ______
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $1,660 $1,160
Depreciation and depletion 1,336 1,289
Changes in operational working capital,
excluding cash and debt 212 (145)
All other items - net 74 59
______ ______
Net Cash Provided By Operating Activities 3,282 2,363
_____ ______
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and additions to property,
plant and equipment (1,399) (1,328)
Sales of subsidiaries and property,
plant and equipment 115 331
Other investing activities - net 490 432
______ ______
Net Cash Used In Investing Activities (794) (565)
______ ______
NET CASH GENERATION BEFORE FINANCING ACTIVITIES 2,488 1,798
CASH FLOWS FROM FINANCING ACTIVITIES
Additions to long-term debt 527 584
Reductions in long-term debt (82) (256)
Additions/(reductions) in short-term debt-net (399) (410)
Cash dividends to Exxon shareholders (942) (906)
Cash dividends to minority interests (76) (102)
Additions/(reductions) to minority interests
and sales/(redemptions) of affiliate
preferred stock 14 27
Acquisitions of Exxon shares - net (21) (48)
______ ______
Net Cash Used In Financing Activities (979) (1,111)
______ ______
Effects Of Exchange Rate Changes On Cash 104 (22)
______ ______
Increase/(Decrease) In Cash And Cash Equivalents 1,613 665
Cash And Cash Equivalents At Beginning Of Period 1,157 983
______ ______
CASH AND CASH EQUIVALENTS AT END OF PERIOD $2,770 $1,648
====== ======
SUPPLEMENTAL DISCLOSURES
Income taxes paid $ 441 $ 799
Cash interest paid $ 224 $ 139
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
These condensed consolidated financial statements should be read in
the context of the consolidated financial statements and notes thereto
filed with the S.E.C. in the corporation's 1994 Annual Report on Form
10-K. In the opinion of the corporation, the information furnished
herein reflects all known accruals and adjustments necessary for a
fair statement of the results for the periods reported herein. All
such adjustments are of a normal recurring nature. The corporation's
exploration and production activities are accounted for under the
"successful efforts" method.
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EXXON CORPORATION
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
FUNCTIONAL EARNINGS SUMMARY
First Quarter
_____________
1995 1994
____ ____
(millions of dollars)
Petroleum and natural gas
Exploration and production
United States $ 209 $ 245
Non-U.S. 757 590
Refining and marketing
United States 16 39
Non-U.S. 184 349
_____ _____
Total petroleum and natural gas 1,166 1,223
Chemicals
United States 230 92
Non-U.S. 317 57
Other operations 113 58
Corporate and financing (166) (270)
_____ _____
NET INCOME $1,660 $1,160
====== ======
FIRST QUARTER 1995 COMPARED WITH FIRST QUARTER 1994
Exxon Corporation estimated first quarter 1995 net income at $1,660
million, or $1.33 per share, compared with $1,160 million, or $0.92
per share, in the same period last year.
Exxon's earnings of over $1.6 billion in the first quarter were
significantly above the first quarter of last year as a result of
improvements in the operating performance of most business segments.
Relative to the first quarter of last year, crude, chemicals and
copper prices were considerably stronger, and Exxon increased
liquids and copper production, as well as sales of petroleum and
chemicals products. Chemical earnings rose to record levels in the
first quarter, more than tripling the results of a year ago.
Improvements in crude prices and liquids production more than offset
the effect of unseasonably warm weather which reduced natural gas
sales, particularly in Europe, and further depressed natural gas
prices in the U.S. Downstream results, however, were disappointing
as petroleum product prices did not keep pace with rising crude
supply costs. This, coupled with an industry wide over supply
situation, exerted strong downward pressure on refining margins in
all major markets.
During the quarter, Exxon maintained its active investment program
spending over $1.7 billion on capital and exploration projects and
advancing several large initiatives, including projects in
Azerbaijan, China and Russia.
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EXXON CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
OTHER COMMENTS ON FIRST QUARTER COMPARISON
During the first quarter, worldwide production earnings benefited from
crude prices that were on average more than $3.00 per barrel above the
prior year. Natural gas prices in Europe also moved higher,
benefiting from improved contract terms. However, unseasonably warm
weather resulted in lower natural gas sales, particularly in Europe,
and lower natural gas prices in the U.S.
Worldwide crude production was 1,776 kbd (thousand barrels per day) up
from 1,742 kbd in 1994. The increase in production came from
developments in Malaysia and the North Sea, and the highest U.S.
quarterly production in three years. Worldwide natural gas production
of 7,159 mcfd (million cubic feet per day) was down 118 mcfd from the
first quarter of last year as increased production in the Asia-Pacific
region was offset by lower demand in Europe and the U.S.
Exploration and production earnings in the U.S. were $209 million,
down from $245 million in the first quarter of last year, as the
benefit of higher crude prices was offset by lower natural gas prices.
Earnings from exploration and production operations outside the U.S.
were $757 million, up from $590 million in last year's first quarter,
as improved crude and natural gas realizations offset the negative
impact of lower European natural gas sales.
Worldwide petroleum product sales of 5,031 kbd rose 70 kbd from last
year's first quarter on the strength of a 3 percent increase in clean
product volumes. Refining and marketing earnings benefited from lower
scheduled maintenance activities this year, but were negatively
affected by depressed refining margins, particularly in the U.S. and
Europe. First quarter refining and marketing earnings in the U.S.
were $16 million, down from $39 million the prior year. Earnings from
refining and marketing operations outside the U.S. were $184 million,
compared with $349 million in the same period a year ago.
Worldwide chemical earnings rose sharply to a quarterly record $547
million, compared to $149 million in the first quarter of 1994.
Higher product margins and sales volumes, along with lower operating
expenses, produced the upturn in chemical earnings. Chemical prime
product sales were a quarterly record 3,369 kt (thousand metric tons),
an increase of 3 percent from the first quarter 1994.
Earnings from other operating segments, including coal, minerals and
power were $113 million, nearly double the $58 million earned in the
first quarter of 1994. Earnings this year benefited from higher
copper prices and production.
Corporate and financing expenses of $166 million were down from the
first quarter of last year due to a reduction in foreign exchange
effects and lower interest costs.
Revenue totaled $29,779 million compared with $25,964 million in the
first quarter of 1994.
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EXXON CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Continued)
OTHER COMMENTS ON FIRST QUARTER COMPARISON (Continued)
Net cash generation before financing activities was $2,488 million in
the first three months of 1995 versus $1,798 million in the same
period last year. Operating activities provided net cash of $3,282
million, an increase of $919 million from 1994's first three months,
influenced mainly by higher net income and changes in operational
working capital. Investing activities used net cash of $794 million,
or $229 million more than a year ago primarily due to lower proceeds
from asset dispositions.
Net cash used in financing activities was $979 million in the first
quarter of 1995 versus $1,111 million in the same quarter last year.
During the first quarter of 1995, a total of 1.0 million shares were
acquired at a cost of $64 million. Purchases are made in both the
open market and through negotiated transactions. Purchases may be
discontinued at any time.
Capital and exploration expenditures totaled $1,762 million in the
first quarter 1995 versus $1,577 million in the first quarter of 1994.
Capital and exploration expenditures in 1995 should exceed the 1994
level as Exxon maintains its focus on profitable growth opportunities.
Total debt of $12.8 billion at March 31, 1995 was essentially
unchanged from year-end 1994. The corporation's debt to total capital
ratio was 23.6 percent at the end of the first quarter of 1995, down
from 24.3 percent at year-end 1994, primarily due to increases in
shareholders' equity.
Over the twelve months ended March 31, 1995, return on average
shareholder's equity was 15.0 percent. Return on average capital
employed, which includes debt, was 11.7 percent over the same time
period.
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.
The corporation, as part of its ongoing asset management program,
continues to evaluate its mix of assets for potential upgrade.
Because of the ongoing nature of this program, dispositions will
continue to be made from time to time which will result in either
gains or losses.
-8-
EXXON CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS (Concluded)
SPECIAL ITEMS
_____________
First Quarter
____________________
1995 1994
____ ____
(millions of dollars)
EXPLORATION & PRODUCTION
________________________
Non-U.S.
Primarily tax related - $66
___ ___
TOTAL - $66
=== ===
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PART II - OTHER INFORMATION
EXXON CORPORATION
FOR THE QUARTER ENDED MARCH 31, 1995
Item 1. Legal Proceedings
_________________________
The U.S. Environmental Protection Agency (the "EPA") has indicated
that it may issue an Administrative Order or otherwise seek
unspecified civil penalties against Esso Virgin Islands, Inc., a
subsidiary of the registrant, in connection with alleged violations
under the Clean Air Act involving failure to conduct performance
testing on a timely basis and underestimations of daily throughput of
gasoline in an emissions permit application.
As reported in the registrant's Quarterly Report on Form 10-Q for the
quarter ended September 30, 1993, the Texas Natural Resource
Conservation Commission (the "TNRCC") proposed penalties totaling
$847,460 with respect to a number of alleged water and waste
violations at the registrant's Baytown Refinery. On March 20, 1995,
the registrant and the TNRCC settled the alleged violations by
entering into an Agreed Order that included penalties totaling
$600,000, $460,000 of which has been paid and $140,000 of which was
deferred pending the registrant's completion of a number of
environmental projects. If the registrant completes these projects,
the deferred portion of the penalties will not have to be paid.
As reported in the registrant's Quarterly Report on Form 10-Q for the
quarter ended March 31, 1994 and its Annual Report on Form 10-K for
the year ended December 31, 1994, in December 1994, the EPA proposed a
penalty of $144,000 with respect to an alleged violation by the
registrant of certain new source performance standards under the Clean
Air Act applicable to a volatile organic compound storage tank. The
EPA has subsequently increased the proposed penalty to $152,600 due to
a calculation error.
Item 6. Exhibits and Reports on Form 8-K
a) Exhibits
Exhibit 27, Financial Data Schedule (included only in the
electronic filing of this document).
b) Reports on Form 8-K
The registrant has not filed any reports on Form 8-K during
the quarter.
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EXXON CORPORATION
FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 1995
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934,
the Registrant has duly caused this report to be signed on its behalf
by the undersigned, thereunto duly authorized.
EXXON CORPORATION
Date: May 11, 1995
/s/ W. BRUCE COOK
_________________________________________
W. Bruce Cook, Vice President, Controller
and Principal Accounting Officer
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