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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, 1994
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, 1994
_______________________________ ________________________________
Common stock, without par value 1,241,771,207
EXXON CORPORATION
FORM 10-Q
FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1994
INDEX
PART I. FINANCIAL INFORMATION
Page
Number
Item 1. Financial Statements
Condensed Consolidated Statement of Income 3
Three months ended March 31, 1994 and 1993
Condensed Consolidated Balance Sheet 4
As of March 31, 1994 and December 31, 1993
Condensed Consolidated Statement of Cash Flows 5
Three months ended March 31, 1994 and 1993
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 1994 1993
Sales and other operating revenue, _______ ______
including excise taxes $25,624 $26,897
Earnings from equity interests and other
revenue 340 365
_______ _______
Total revenue 25,964 27,262
_______ _______
COSTS AND OTHER DEDUCTIONS
Crude oil and product purchases 10,255 11,836
Operating expenses 3,070 3,069
Selling, general and administrative expenses 1,616 1,608
Depreciation and depletion 1,289 1,194
Exploration expenses, including dry holes 138 129
Interest expense 301 151
Excise taxes 2,741 2,758
Other taxes and duties 4,792 4,582
Income applicable to minority and preferred
interests 54 65
_______ _______
Total costs and other deductions 24,256 25,392
_______ _______
INCOME BEFORE INCOME TAXES 1,708 1,870
Income taxes 548 685
_______ _______
NET INCOME $ 1,160 $ 1,185
======= =======
Net income per common share* $ 0.92 $ 0.94
Dividends per common share $ 0.72 $ 0.72
Average number common shares outstanding
(millions) 1,241.9 1,241.7
* 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,
1994 1993
ASSETS _______ _______
Current assets
Cash and cash equivalents $ 1,648 $ 1983
Other marketable securities 468 669
Notes and accounts receivable - net 6,972 6,860
Inventories
Crude oil, products and merchandise 4,392 4,616
Materials and supplies 827 856
Prepaid taxes and expenses 1,181 875
_______ _______
Total current assets 15,488 14,859
Property, plant and equipment - net 61,777 61,962
Investments and other assets 7,389 7,324
_______ _______
TOTAL ASSETS $84,654 $84,145
======= =======
LIABILITIES
Current liabilities
Notes and loans payable $ 3,863 $ 4,109
Accounts payable and accrued liabilities 12,326 12,122
Income taxes payable 2,225 2,359
Total current liabilities 18,414 18,590
Long-term debt 8,712 8,506
Annuity reserves, deferred credits and other
liabilities 22,275 22,257
TOTAL LIABILITIES 49,401 49,353
_______ _______
SHAREHOLDERS' EQUITY
Preferred stock, without par value:
Authorized:200 million shares
Issued : 16 million shares (Convertible, Class A)
Outstanding:10 million shares at Mar. 31, 1994 641
11 million shares at Dec. 31, 1993 668
Guaranteed LESOP obligation (716) (716)
Common stock, without par value:
Authorized: 2,000 million shares
Issued: 1,813 million shares 2,822 2,822
Earnings reinvested 49,623 49,365
Cumulative foreign exchange translation adjustment (119) (370)
Common stock held in treasury:
571 million shares at Mar. 31, 1994 (16,998)
571 million shares at Dec. 31, 1993 (16,977)
_______ _______
TOTAL SHAREHOLDERS' EQUITY 35,253 34,792
_______ _______
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $84,654 $84,145
======= =======
The number of shares of common stock issued and outstanding at March
31, 1994 and December 31, 1993 were 1,241,771,207 and 1,241,737,220,
respectively.
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EXXON CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
Three Months Ended
_____March 31,____
1994 1993
______ ______
CASH FLOWS FROM OPERATING ACTIVITIES
Net income $1,160 $1,185
Depreciation and depletion 1,289 1,194
Changes in operational working capital,
excluding cash and debt (145) 268
All other items - net 59 (35)
______ ______
Net Cash Provided By Operating Activities 2,363 2,612
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions and additions to property,
plant and equipment (1,328) (1,298)
Sales of subsidiaries and property,
plant and equipment 331 118
Other investing activities - net 432 276
______ ______
Net Cash Used In Investing Activities (565) (904)
______ ______
NET CASH GENERATION BEFORE FINANCING ACTIVITIES 1,798 1,708
CASH FLOWS FROM FINANCING ACTIVITIES
Additions to long-term debt 584 292
Reductions in long-term debt (256) (54)
Additions/(reductions) in short-term debt-net (410) (458)
Cash dividends to Exxon shareholders (906) (908)
Cash dividends to minority interests (102) (68)
Additions/(reductions) to minority interests
and sales/(redemptions) of affiliate
preferred stock 27 (255)
Acquisitions of Exxon shares - net (48) (47)
______ ______
Net Cash Used In Financing Activities (1,111) (1,498)
______ ______
Effects Of Exchange Rate Changes On Cash (22) 1
______ ______
Increase/(Decrease) In Cash And Cash Equivalents 665 211
Cash And Cash Equivalents At Beginning Of Period 983 898
______ ______
CASH AND CASH EQUIVALENTS AT END OF PERIOD $1,648 $1,109
====== ======
SUPPLEMENTAL DISCLOSURES
Income taxes paid $ 799 $ 535
Cash interest paid $ 139 $ 176
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS:
These condensed consolidated financial statements should be read in
the context of the consolidated financial statements and notes there
to filed with the S.E.C. in the corporation's 1993 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
_____________
1994 1993
____ ____
(millions of dollars)
Petroleum and natural gas
Exploration and production
United States $ 245 $ 228
Non-U.S. 590 668
Refining and marketing
United States 39 21
Non-U.S. 349 277
_____ _____
Total petroleum and natural gas 1,223 1,194
Chemicals
United States 92 87
Non-U.S. 57 36
Other operations 58 48
Corporate and financing (270) (180)
_____ _____
NET INCOME $1,160 $1,185
====== ======
FIRST QUARTER 1994 COMPARED WITH FIRST QUARTER 1993
Exxon Corporation estimated first quarter 1994 net income at $1,160
million, or $0.92 per share, compared with $1,185 million, or $0.94
per share, in the same period last year.
Despite the continued weakness in worldwide crude prices, Exxon
earned nearly $1.2 billion in the first quarter, down only 2 percent
from the first quarter of 1993. Sales volumes increased in each of
Exxon's major business segments and petroleum product and chemical
margins improved.
During the quarter, crude prices were on average lower than they
have been in over five years. While this negatively impacted
worldwide exploration and producing earnings, stronger natural gas
earnings provided a partial offset, particularly in the United
States where Exxon benefited from improved gas market conditions
and increased volumes from several new field developments.
Earnings in the refining and marketing segment improved due to
increased sales volumes and stronger margins. This improvement
was achieveddespite unusually high refinery maintenance activity
in the quarter.
Chemical earnings also rose as a modest improvement in economic
conditions in major markets led to increased demand and better
margins.
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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 1994, worldwide production earnings were
negatively impacted by crude prices which on average were over $4.00
per barrel below the prior year. Earnings from exploration and
production operations outside the U.S. totaled $590 million,
compared with $668 million in the year ago period. Earnings from
U.S. exploration and production operations were $245 million in
the first quarter of 1994, up from $228 million in the first
quarter 1993 reflecting the improved natural gas market and lower
operating expenses.
Crude production in the first quarter 1994 was 1,749 kbd (thousand
barrels per day) up from 1,676 kbd the prior year. The increase
resulted from higher production from operations in the North Sea and
Alaska. Worldwide natural gas production of 7,294 mcfd (million
cubic feet per day) rose 3 percent in the first quarter 1994
compared to the same period last year reflecting stronger demand
and new production from operations in the U.S. and Malaysia.
Earnings from U.S. refining and marketing operations were $39
million in the first quarter 1994, up from $21 million in the first
quarter 1993 despite sharply higher scheduled refinery maintenance
activities this year. Earnings from refining and marketing
operations outside the U.S. were $349 million in the most recent
quarter, compared with $277 million in the first quarter 1993. In
comparison to the prior year period, petroleum product margins
strengthened as lower crude supply costs more than offset the
effect of lower product prices. Worldwide petroleum product sales
volumes of 4,994 kbd rose from 4,870 kbd in the first quarter of
last year, due principally to increases in Europe, Canada, and
Latin America.
First quarter 1994 earnings from worldwide chemical operations
totaled $149 million, up from $123 million in the first quarter
last year. Earnings benefited from increased demand and
improved margins. Product sales volumes of 3,268 kt
(thousands tons) were up from 3,211 kt last year.
Earnings from other operating segments were $58 million, up from
$48 million in the first quarter 1993.
Corporate and financing expenses of $270 million compared with
$180 million in the first quarter of last year, with the
increase due primarily to foreign exchange fluctuations.
Net income in the first quarter 1994 of $1,160 million included
a net credit of $66 million from tax rate changes and asset
dispositions, while the first quarter of the prior year
included $47 million of similar credits.
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EXXON CORPORATION
MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
CONDITION AND RESULTS OF OPERATIONS
(Continued)
Net cash generation before financing activities was $1,798 million
in the first three months of 1994 versus $1,708 million in the same
period last year. Operating activities provided net cash of $2,363
million, a decrease of $249 million from 1993's first three months,
influenced mainly by a change in operational working capital.
Investing activities used net cash of $565 million, or $339 million
less than a year ago primarily due to higher proceeds from asset
dispositions.
Net cash used in financing activities was $1,111 million in the
first quarter of 1994 versus $1,498 million in the same quarter
last year. The decrease mainly reflects the absence of the
redemption of preferred securities by an affiliate in the year ago
period. Net outlays for treasury share acquisitions were $48
million, essentially unchanged from the prior year quarter.
During the first quarter of 1994, a total of 1.3 million shares
were acquired at a cost of $86 million. Purchases are made in both
the open market and through negotiated transactions. Purchases
may be discontinued at any time.
Capital and exploration expenditures of $1,577 million in the
first quarter 1994 were essentially unchanged from the amount
invested in the first quarter of 1993. Current plans indicate
capital and exploration expenditures in 1994 will be about equal
to the prior year as Exxon continues to maintain its active
investment program.
Total debt of $12.6 billion at March 31, 1994 was level with the
total debt at year-end 1993. The corporation's debt to total
capital ratio was 25.1 percent at the end of the first quarter
of 1994, down from 25.3 percent at year-end 1993.
Over the twelve months ended March 31, 1994, return on average
shareholder's equity was 15.2 percent. Return on average capital
employed, which includes debt, was 12.1 percent over the same time
period.
Although the corporation accesses financial markets from time to
time, internally generated funds cover a significant portion 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
___________________
1994 1993
_____ _____
(millions of dollars)
Petroleum and natural gas, Non-U.S.
Primarily tax related $66 -
Other items - $20
Corporate and financing
Other items - $27
____ ____
Total $66 $47
==== ====
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PART II - OTHER INFORMATION
EXXON CORPORATION
FOR THE QUARTER ENDED MARCH 31, 1994
Item 1. Legal Proceedings
_________________________
As previously reported, 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. The claims of many individuals have been
dismissed or settled. For most of the remaining actions,
trial in federal court commenced on May 2, 1994. Other actions
are scheduled for trial in state court commencing June 6, 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.
On August 23, 1993, the U.S. Environmental Protection Agency ("EPA")
issued a notice to Exxon Chemical Company alleging violation of
certain new source performance standards under the Clean Air Act
applicable to a volatile organic compound storage tank. The EPA
has not yet proposed a specific penalty.
In March 1994, a settlement was reached with respect to a lawsuit
brought on October 16, 1992 in the Superior Court of the State of
California for the County of Solano by the Western States Petroleum
Association, Exxon Company, U.S.A., and five other Bay Area refiners
against the San Francisco Regional Water Quality Control Board
("RWQCB") and the State Water Resources Control Board. The suit
challenged the addition by the RWQCB of certain final selenium
discharge limitations to Bay Area refinery permits. The terms of
the settlement, which were embodied in anadministrative order of
the RWQCB, included a postponement of the effectiveness of the final
limitations, as well as Exxon's agreement to pay an aggregate of
$180,000 over two years into the State selenium mitigation and
water pollution cleanup and abatement funds.
Item 6. Exhibits and Reports on Form 8-K
________________________________________
a) Exhibits
None
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, 1994
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, 1994
______________.W. B. Cook_____________
W. B. Cook, Vice President, Controller
and Principal Accounting Officer
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