exxonmobil 2006 summary annual report · on the cover exxonmobil is involved in every level of the...

2006 summary

annual report

O N T H E C O V E RExxonMobil is involved in every level of the hydrocarbon exploration, production and supply chain, bringing technological strength, operational excellence, and long-term focus to all parts of its business. In the Upstream, this ranges from advanced visualization techniques to identify potential hydrocarbon deposits (top left), to technically-advanced supply infrastructure such as the Erha floating, production, storage, and offloading vessel (middle right) in deepwater offshore Nigeria, one of the most advanced facilities of its kind, producing and storing crude oil for distribution to international markets. Integrating our Downstream and Chemical facilities such as at Baytown, Texas (middle left) provides unique operational synergies and competitive advantage, while our global network of branded service stations brings high quality petroleum products and convenience services (bottom) to our retail customers.

The term Upstream refers to exploration, development, production, and gas and power marketing. Downstream refers to the refining and marketing of petroleum products such as motor fuels and lubricants.

Projections, targets, expectations, estimates, and business plans in this report are forward-looking statements. Actual future results, including demand growth and energy mix; capacity growth; the impact of new technologies; capital expenditures; project plans, dates, and capacities; production rates and resource recoveries; and, efficiency gains and cost savings could differ materially due to, for example, changes in oil and gas prices or other market conditions affecting the oil and gas industry; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the actions of competitors; unexpected technological developments; the occurrence and duration of economic recessions; the outcome of commercial negotiations; unforeseen technical difficulties; and other factors discussed in this report and in Item 1A. of ExxonMobil’s most recent Form 10-K. See ExxonMobil’s 2006 Financial and Operating Review for ExxonMobil’s net interest in specific projects.

Definitions of certain financial and operating measures and other terms used in this report are contained in the section titled “Frequently Used Terms” on pages 44 and 45. In the case of financial measures, the definitions also include information required by SEC Regulation G to the extent we believe applicable.

“Factors Affecting Future Results” and “Frequently Used Terms” are also posted on our Web site and are updated from time to time.

Prior years’ data have been reclassified in certain cases to conform to the 2006 presentation basis.

To Our Shareholders 2-3

Business Model 4

Financial Highlights 5

Fundamentals of Our Approach 6-15

Energy Outlook 16-17

Upstream – Business Overview 18-25

Downstream – Business Overview 26-31

Chemical – Business Overview 32-35

Financial Summary 36-43

Frequently Used Terms 44-45

Directors, Officers, and Affiliated Companies 46-47

Investor Information 48-49

Table of Contents

Consistency.In our shareholder focus, in our long-term approach.

Integrity.In our business practices, in our operations, in our people.

Discipline.In our investment decisions, in our execution of fundamental business strategies.

Reliability.In the quality of our products, in our daily operations, in meeting our commitments.

Ingenuity.In our proprietary research, in our technology applications, in our thinking.

Energy is fundamental to the world’s economies.

Improving living standards around the globe requires

affordable, reliable energy. Providing this energy

is an enormous challenge – one that must be met

practically, safely, and in an environmentally

and socially responsible manner.

Rex W. TillersonChairman and CEO

�E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

The Corporation continued to grow shareholder value in

2006 with a total return of 39 percent. Cash returned to you,

our shareholders, was an all time high with dividends of

$7.6 billion and share purchases to reduce shares outstanding

of $25 billion, for a combined distribution of $32.6 billion.

This brings cumulative distributions over the last five years

to over $92 billion.

Continuing our disciplined capital investment program,

we invested almost $20 billion in our businesses in

2006. The projects in which we invest often involve billions

of dollars, require many years to develop, and are expected

to operate and deliver results for decades. To be successful

requires a disciplined approach which looks through the

petroleum and petrochemical business cycles to focus on

the long-term viability of each project. We continue to identify

and progress a diverse portfolio of world-class profitable

investment opportunities, with over 60 major projects

currently in development.

Our Upstream business started up seven major

projects in 2006 in locations including West Africa,

Malaysia, Azerbaijan, Norway, and Canada. These

projects are the culmination of many years of investment

and development. Each of these projects is delivering new

supplies of oil and natural gas to global markets and value

to resource owners and our shareholders. In addition, we

made significant progress in advancing our large portfolio

of projects currently in development and further enhanced

operations of our producing assets. We commissioned new

production and export facilities to increase production from

To Our Shareholders

our projects at Sakhalin Island in Russia. ExxonMobil’s ability

to deliver such large and complex projects on-schedule

and on-budget is a significant competitive advantage.

Our Downstream and Chemical businesses continued

to invest to meet increasing product demand and

environmental expectations, including clean fuels

requirements. We invest in projects that increase the

capacity of our existing facilities at a fraction of grassroots

cost, and also make strategic investments to profitably meet

future demand growth and changing product specifications.

Technology is integrated into all aspects of our

business and is critical to our current and future

success. In 2006 we continued our significant investment

in technology, spending more than $700 million on research

and development. Technology advances create opportunities,

allowing us to find and recover more resources, develop

resources with less impact on the environment, expand

capacity at existing refining and petrochemical sites, and

develop premium products to meet customer needs,

efficiently and reliably. Our scientists develop technologies

to support continued improvements in our daily operations,

as well as deliver proprietary breakthroughs to maintain

our competitive position.

ExxonMobil focuses on world-class operational

performance. We relentlessly pursue operations excellence

employing consistent practices globally. In 2006 we delivered

our best-ever workforce safety performance and had the

fewest hydrocarbon spills on record for the Corporation.

In 2006 ExxonMobil delivered our strongest-ever results with net income of more than

$39 billion and return on average capital employed of 32 percent. Each of our businesses –

Upstream, Downstream, and Chemical – posted record net income. These superior results

are a testament to the strength of our long-standing business model – a rigorous and

systematic approach which delivers industry-leading results across the business cycle.

� E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

Our extensive global expertise uniquely positions

ExxonMobil to maximize resource value. Integrating

our Upstream, Downstream, and Chemical expertise and

experience to identify resource opportunities, produce

hydrocarbons efficiently and reliably, refine and market fuels

and lubricants, and supply chemical products creates

capabilities unmatched in the energy industry. The result is

a portfolio that delivers long-term business success through

an integrated approach to maximizing resource value.

Integrity is the cornerstone of our business and

operating philosophy. It defines the way we operate

every day in every aspect of our business. We maintain an

unwavering commitment to honest and ethical behavior,

and demand of ourselves the highest standards of business

conduct wherever we operate around the world.

As economies grow and standards of living rise, more

energy is required. By 2030, we expect the world’s energy

needs will be 60 percent greater than in 2000, with the majority

of that demand met by fossil fuels. This will contribute to an

increase in greenhouse gas emissions and concerns about

the risks to society and ecosystems. ExxonMobil’s scientists

and engineers are taking action to address the risks posed

by greenhouse gas emissions – reducing emissions from

our facilities; deploying energy-efficient technologies across

our global operations; working with partners to improve our

customers’ fuel efficiency; and investing in research to foster

development of global energy technologies with significantly

reduced greenhouse gas emissions.

2007 marks our 125th year of taking on the world’s

toughest energy challenges. We are proud of our long

history of contributions to meet the world’s energy needs

and to serve our customers with dependable, high-quality

products. Our industry has seen significant changes,

through which we have consistently delivered superior

results. As we look forward, changing conditions, growing

demand, and evolving environmental expectations will require

innovation, financial discipline, and operating excellence.

I believe ExxonMobil is uniquely positioned to take on

these challenges. You, our shareholders, can count on the

consistency of our underlying approach – consistency in

our high standards of operational excellence, consistency

in the way our investment decisions are made, consistency

in delivering differentiating technology, and consistency in

our commitment to grow long-term shareholder value.

Rex W. Tillerson

Chairman and CEO

"XOM" "Int." "02" 13.5 8"03" 20.9 14"04" 23.8 19"05" 31.3 21“06” 32.2 20

DATA as of 02/10/2007:

0.635FOR LAYOUT ALIGNMENT

0

5

10

15

20

25

30

35Int.

XOM

“06”05040302

(1) Royal Dutch Shell, BP, and Chevron values are estimated on a consistent basis with ExxonMobil, based on public information.

35

30

25

20

15

10

5

0

Annual Return on Average Capital EmployedExxonMobil

R O C E L E A D E R S H I P

(percent)

Integrated Oil Competitor Average(1)

2002 2003 2004 2005 2006

2006 XOM SAR

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Carol Zuber-Mallison02/16/2007

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DATA as of 02/08/2007:

DATA as of 02/02/2007:

LTIR (XOM) LTIR (Contractors)"00" 0.147 0.164 "01" 0.094 0.125 "02" 0.083 0.088"03" 0.070 0.082"04" 0.043 0.062"05" 0.068 0.054“06” 0.045 0.050

“US Empl Benchmark” "00" 0.470 "01" 0.30"02" 0.34"03" 0.30"04" 0.29"05" 0.24“06”

-0.0

0.1

0.2

0.3

0.4

0.5“US Empl Benchmark”

“06” 0504030201 00

0.0

0.1

0.2

0.3

0.4 LTIR (XOM) LTIR (Contractors)

“06”0504030201 00


I N D U S T R Y – L E A D I N G S A F E T Y

(incidents per 200,000 work hours)

ExxonMobil Employees ExxonMobil Contractors

U.S. Petroleum Industry Benchmark(1)

(1) Employee safety data from participating American Petroleum Institute companies (2006 industry data not available at time of publication).

0.5

0.4

0.3

0.2

0.1

0

Lost-Time Injuries and Illnesses

2000 2001 2002 2003 2004 2005 2006


ExxonMobil leads our industry by consistently delivering superior operating and financial results. Our business model maintains focus on long-term fundamentals and growing shareholder value.

Superior 2006 Results

➤ Industry-leading safety record

➤ Record earnings of $39.5 billion

➤ Dividend payments per share grew 12.3 percent and increased for the 24th consecutive year

➤ $32.6 billion in distributions to shareholders, an increase of 41 percent or $9.4 billion versus 2005

➤ Industry-leading return on average capital employed (ROCE) of 32.2 percent

➤ Proved reserves additions replaced 122 percent of production

➤ Production increased by 4 percent year on year, 7 percent excluding divestment and entitlement effects

➤ Seven major Upstream projects began production

➤ Downstream and Chemical operating cost efficiencies and revenue enhancements exceeded $1.5 billion after tax

Industry-LeadingReturns

SuperiorCash Flow

OperationalExcellence

G R O W T H I N

S H A R E H O L D E R

V A L U E

DisciplinedInvestment

2006 XOM SAR

S04A


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b U S i N E S S M O d E l

Our business model is disciplined and straightforward; taking

a long-term perspective and focusing on generating growth

in shareholder value while managing risk. We begin with

a disciplined investment approach. We combine this with

operational excellence, as demonstrated by our industry-

leading safety record. Our superior return on capital

employed (ROCE) reflects our ability to generate more

income from a highly efficient capital base. Rigorous

execution of this model delivers industry-leading financial

and operating results that generate greater long-term returns

for our shareholders.

F U N d a M E N T a l S O F O U R a p p R O a C H

➤ Consistency. ➤ Integrity. ➤ Discipline. ➤ Reliability. ➤ Ingenuity.

� E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

2002 2003 2004 2005 2006

40

35

30

25

20

15

10

5

0

Functional Earnings and Net IncomeR E C O R D E A R N I N G S I N 2 0 0 6

(billions of dollars)

DATA as of 02/01/2007: DATA as of 02/01/2007:DATA as of 02/01/2007:


Upstream Downstream Chemical Corporateand Financing

Net Income

"Up" "Down" "Chem""2002" 9.598 1.300 0.830"2003 14.502 3.516 1.432"2004" 16.675 5.706 3.428"2005" 24.349 7.992 3.943“2006” 26.230 8.454 4.382

"Net income""02" 11.460"03" 21.510"04" 25.330"05" 36.130“06 39.500

"All Other""02" -0.268"03"" 2.060"04" -0.479"05" -0.154“06” 0.434

0

5

10

15

20

25

30

35

40Net income

“0605040302

-5

0

5

10

15

20

25

30

35

40

All Other

“06”05040302

0

5

10

15

20

25

30

35

40Chem

Down

Up

“2006”2005 2004 20032002

–2

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T O T A L S H A R E H O L D E R R E T U R N S ( 1 )

(percent per year)

(1) Total return to shareholders is the change in the stock price over a given period plus the value of the dividends, with dividend reinvestment, divided by the stock price at the beginning of the measurement period.(2) Royal Dutch Shell, BP, and Chevron values are calculated on a consistent basis with ExxonMobil, based on public information.

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05B SAR


ExxonMobil S&P 500 Integrated Oil Competitor Data(2)

DATA as of 02/22/2007:

"XOM" "S&P500" “Competitors”"5 year" 16.9 6.2 12.6"10 year" 14.7 8.4 10.4"20 year" 15.4 11.8 14.2

5 Years 10 Years 20 Years

18

15

12

9

6

3

0

0

3

6

9

12

15

18“Competitors”

S&P500

XOM

20 year10 year5 year

K E Y F i N a N C i a l R aT i O S 2006 2005 2004 2003 2002 Net income per common share (dollars) 6.68 5.76 3.91 3.24 1.69Net income per common share – assuming dilution (dollars) 6.62 5.71 3.89 3.23 1.68Return on average capital employed(3) (percent) 32.2 31.3 23.8 20.9 13.5Net income to average shareholders’ equity (percent) 35.1 33.9 26.4 26.2 15.5Debt to capital (5) (percent) 6.6 6.5 7.3 9.3 12.2Net debt to capital (6) (percent) (20.4) (22.0) (10.7) (1.2) 4.4Current assets to current liabilities 1.55 1.58 1.40 1.20 1.15Fixed charge coverage (times) 46.3 50.2 36.1 30.8 13.8 (1) Sales and other operating revenue includes sales-based taxes of $30,381 million for 2006, $30,742 million for 2005, $27,263 million for 2004, $23,855 million for 2003

and $22,040 million for 2002.(2) Sales and other operating revenue includes $30,810 million for 2005, $25,289 million for 2004, $20,936 million for 2003, and $18,150 million for 2002 for purchases/sales

contracts with the same counterparty. Associated costs were included in Crude oil and product purchases. Effective January 1, 2006, these purchases/sales were recorded on a net basis with no resulting impact on net income.

(3) See Frequently Used Terms on pages 44 and 45.(4) Excluding restricted cash of $4,604 million in 2006, 2005, and 2004.(5) Debt includes short- and long-term debt. Capital includes short- and long-term debt, shareholders’ equity, and minority interests.(6) Debt net of cash, excluding restricted cash. The ratio of net debt to capital including restricted cash is (26.3) percent for 2006.

F i N a N C i a l H i g H l i g H T S

(millions of dollars, unless noted) 2006 2005 2004 2003 2002 Sales and other operating revenue(1)(2) 365,467 358,955 291,252 237,054 200,949Net income 39,500 36,130 25,330 21,510 11,460Cash flow from operations and asset sales(3) 52,366 54,174 43,305 30,788 24,061Capital and exploration expenditures(3) 19,855 17,699 14,885 15,525 13,955Cash dividends to ExxonMobil shareholders 7,628 7,185 6,896 6,515 6,217Common stock purchases (gross) 29,558 18,221 9,951 5,881 4,798Research and development costs 733 712 649 618 631Cash and cash equivalents at year end(4) 28,244 28,671 18,531 10,626 7,229Total assets at year end 219,015 208,335 195,256 174,278 152,644Total debt at year end 8,347 7,991 8,293 9,545 10,748Shareholders’ equity at year end 113,844 111,186 101,756 89,915 74,597Average capital employed(3) 122,573 116,961 107,339 95,373 88,342Share price at year end (dollars) 76.63 56.17 51.26 41.00 34.94Market valuation at year end 438,990 344,491 328,128 269,294 234,101Regular employees at year end (thousands) 82.1 83.7 85.9 88.3 92.5


T O T A L S H A R E H O L D E R R E T U R N S ( 1 )

(percent per year)

(1) Total return to shareholders is the change in the stock price over a given period plus the value of the dividends, with dividend reinvestment, divided by the stock price at the beginning of the measurement period.(2) Royal Dutch Shell, BP, and Chevron values are calculated on a consistent basis with ExxonMobil, based on public information.

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S05B 06XOMSAR-SharehldRetrn.eps

05B SAR


ExxonMobil S&P 500 Integrated Oil Competitor Data(2)

DATA as of 02/22/2007:

"XOM" "S&P500" “Competitors”"5 year" 16.9 6.2 12.6"10 year" 14.7 8.4 10.4"20 year" 15.4 11.8 14.2

5 Years 10 Years 20 Years

18

15

12

9

6

3

0

0

3

6

9

12

15

18“Competitors”

S&P500

XOM

20 year10 year5 year


Our approach to the business

is consistent – a long-term view

and focus on shareholder value.

Providing energy to meet the world’s demand

is a complex business. In meeting this challenge,

we have always taken a long-term view rather than

reacting to short-term business cycles.

Our continued capital investment through all parts of

the business cycle supports this consistent, long-term

approach. Energy projects are large scale and capital

intensive, and often require substantial lead time –

measured in years or sometimes decades – to develop.

Once developed, our projects typically operate for

several decades. These projects must be selected,

designed, and constructed to withstand changing

market conditions, varying customer demand, and

the challenges of operating equipment over the course

of many years.

The long-term nature of our business requires that

we look through cyclical fluctuations when making

investment decisions. While short-term trends in

the energy markets vary, we concentrate on business

fundamentals and on maximizing shareholder value.

Investment in the heavy oil of Cold Lake, Canada,

began in the 1970s. Since that time, phased

developments have been brought online, resulting

in steady production growth to a record in 2006

of greater than 160 thousand barrels per day.

Through continued technology development and

deployment, the estimated reservoir recovery

factor has more than doubled to over 30 percent.

E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T�

Consistency.

Our operations are complex and involve inherent

risks. We manage these risks proactively across

the globe with consistent systems and high

standards for our people. This is true of all of our

sites, including this Chemical facility that produces

polyolefins for distribution around the world.

We are the world’s leading supplier of polyolefins.

��E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

Integrity.ExxonMobil has an unwavering

commitment to high ethical standards

and operations excellence.

We have long recognized the importance and

value of maintaining high standards of ethics

and business integrity. We care about how results

are obtained, not just the results. These standards are

applied globally to all aspects of our business.

In managing the Corporation’s day-to-day activities

throughout the world, we work to ensure that all our

operations are safe and environmentally responsible.

Our globally implemented management systems

provide a framework for proactively managing risk,

and move us further toward our goal of zero safety

incidents and operations with minimal environmental

impact. We are committed to operations excellence

in all areas of our business.

The results of our high level of integrity are demonstrated

through the products we deliver to customers, through

our business relationships, and through continuous

pursuit of operations excellence. We view our corporate

integrity as a valuable asset that must be protected.

Our selective and disciplined

investment approach delivers

industry-leading returns.

Through use of our disciplined project selection

process, we work to identify and fund investment

opportunities that will grow long-term shareholder

value. New opportunities must pass rigorous

assessments and reviews to ensure each project

is technically, operationally, and financially robust.

We only fund projects that meet these requirements

and reinforce our strategic objectives.

Investment in our world-scale projects is the outcome

of this disciplined project selection process. Our record

of completing these projects on-budget and on-schedule

provides a distinct competitive advantage.

Financial strength and a superior asset base allow us

to be patient and selective – long-term shareholder

value is not sacrificed for short-term needs.

We continuously assess our project portfolio to ensure

all of our assets are aligned with our strategic objectives

and will generate long-term shareholder value.

The East Area Project offshore Nigeria that

started up in 2006 is expected to increase

reservoir recovery by 560 million oil-equivalent

barrels (gross) and minimize gas flaring from

six joint-venture fields. It is part of an ongoing,

long-term, disciplined investment program in this

prolific oil and gas region.

E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T�0

Discipline.

Reliable operations are safer,

more efficient, and more profitable.

Reliability delivers value to our shareholders,

our customers, and our business partners.

At ExxonMobil, we are serious about meeting our

commitments to customers, employees, investors,

partners, and the communities in which we operate.

Our focus on execution excellence in our daily

operations results in world-class facilities that are

leaders in safe and reliable operations. We continuously

work to improve our operations reliability through

enhanced designs, advances in technology, and

improved maintenance and operating procedures.

Reliability improvements result in a safer workplace and

a more efficient operation by lowering costs to run the

business. Reliable operations ensure delivery of quality

products that meet the standards of our customers in

a timely manner.

Because we recognize the value of reliability,

we relentlessly pursue excellence in all aspects of

our operations.

Our chemical and refining facilities, such as

the Baytown complex, the largest in the United

States, are implementing our global reliability

management system. This system utilizes proven

maintenance and operating practices to increase

facility throughput and reduce the risks inherent

to our industry.


Reliability.

Our commitment to and success in

technology differentiates us from others

and is reflected in our business results.

Scientists and engineers at ExxonMobil seek

innovative solutions to the technical challenges

we face around the globe. These solutions enable

ExxonMobil to remain at the forefront of our industry.

We focus on both step-changing, breakthrough

concepts as well as evolutionary technology

improvements. Our research priorities are determined

by business requirements, and our technology

solutions, such as reservoir imaging techniques and

clean fuels catalysts, are the result of decades of

commitment to technology and ingenuity.

Our consistent investment in research and development,

which has grown to over $700 million annually,

ensures we have the capabilities to develop and apply

the technology that underpins our business results.

ExxonMobil’s commitment to technology extends

beyond our company – we also partner with third-

party scientists from universities and governments in

the pursuit of technological innovation.

Scientists at our Upstream research facility

use specialized equipment to develop and test

technologies critical to our operations, including

a unique flow loop used to rapidly create and

deploy advanced corrosion control methods.

E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T��

Ingenuity.

Energy Outlook – A View to 2030

At ExxonMobil, our greatest challenge lies in helping meet the world’s rising energy needs.

The Energy Outlook summarizes our view of the fundamentals that underpin world energy supply and demand through 2030. It provides a strategic foundation, aiding our evaluation and selection of business opportunities that hold the most promise. We continuously update our outlook to ensure that new technologies and information are considered in addition to past experience.

g R O w i N g p O p U l a T i O N S a N d

i M p R O V i N g l i V i N g S T a N d a R d S

Progress for billions of people around the world is driving a growing need for reliable, affordable, and cleaner energy. We aim to help meet this need.

For progress to occur, access to modern energy supplies and technologies is critical. This requires disciplined invest-ments in energy as well as basic infrastructure to support economic progress. At the same time, continuing to develop and adopt efficient energy practices and technologies is extremely important and prudent.

d E M a N d F O R l i q U i d S

As the world’s population grows, and as incomes increase, so does the global demand for liquid energy supplies (e.g., oil, biofuels).

A key factor driving demand is the growth in ownership of personal vehicles. This is most evident with the emergence of rapidly expanding non-OECD economies, which we expect will approach half a billion personal vehicles by 2030.

Working to offset demand growth will be continuing improvements in conventional engines and deployment of emerging technologies, such as hybrid vehicles. These advances should enable significant gains in vehicle fuel economy.

Today, technology allows for liquid fuels to be derived from coal, natural gas, and crops. But even under the most optimistic scenarios, these alternatives will supply only a small fraction of the fuel needed on a global basis. Oil is the world’s transportation fuel of choice, and will remain so for decades.

80

70

60

50

40

30

20

10

0

W O R L D W I D E G R O S S D O M E S T I C

P R O D U C T ( G D P )

(trillions of dollars, year 2000 dollar value)

20301950 1970 1990 2010 20301950 1970 1990 2010

8

7

6

5

4

3

2

1

0

(billions)

G L O B A L P O P U L A T I O N

350

300

250

200

150

100

50

0

W O R L D E N E R G Y D E M A N D

(millions of oil-equivalent barrels per day)

20301950 1970 1990 2010


OECD

Non-OECD

OECD

Non-OECD

OECD

Non-OECD

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2006 ExxonMobil SAR

Production notes:

S16BCD 06XOMSAR-PopGdpDmd.eps

S16BCD


!CHARTIS IN

F&OAS 07ABC

0

2000

4000

6000

8000

10000

203020292028202720262025202420232022202120201/1/191/1/181/1/171/1/161/1/151/1/141/1/131/1/121/1/111/1/101/1/091/1/081/1/071/1/061/1/051/1/041/1/031/1/021/1/011/1/001/1/991/1/981/1/971/1/961/1/951/1/941/1/931/1/921/1/911/1/901/1/891/1/881/1/871/1/861/1/851/1/841/1/831/1/821/1/811/1/801/1/791/1/781/1/771/1/761/1/751/1/741/1/731/1/721/1/711/1/701/1/691/1/681/1/671/1/661/1/651/1/641/1/631/1/621/1/611/1/601/1/591/1/581/1/571/1/561/1/551/1/541/1/531/1/521/1/511/1/50

POPULATION OECD NON1/1/50 677.001 1847.551/1/51 685.73 1887.261/1/52 694.458 1926.971/1/53 703.187 1966.681/1/54 711.916 2006.391/1/55 720.645 2046.111/1/56 730.679 2090.391/1/57 740.712 2134.671/1/58 750.746 2178.951/1/59 760.779 2223.241/1/60 770.813 2267.521/1/61 781.555 2314.631/1/62 792.297 2361.751/1/63 803.039 2408.861/1/64 813.781 2455.981/1/65 824.524 2503.091/1/66 834.162 2563.61/1/67 843.801 2624.11/1/68 853.44 2684.61/1/69 863.079 2745.111/1/70 872.718 2805.611/1/71 883.254 2873.271/1/72 893.312 29401/1/73 902.578 3006.871/1/74 912.806 3073.461/1/75 922.503 31391/1/76 930.672 3203.931/1/77 939.21 3268.511/1/78 947.742 3334.211/1/79 956.315 3401.261/1/80 964.793 3468.061/1/81 973.458 3536.131/1/82 981.515 3606.891/1/83 989.178 3678.21/1/84 996.506 3748.971/1/85 1003.9 3821.291/1/86 1011.47 3897.051/1/87 1018.96 3975.021/1/88 1026.72 4053.961/1/89 1035.41 4132.61/1/90 1044.5 4210.511/1/91 1053.7 4286.761/1/92 1063.2 4360.11/1/93 1072.32 4429.711/1/94 1080.93 4499.491/1/95 1089.45 4571.311/1/96 1097.71 4644.571/1/97 1106.17 4716.31/1/98 1113.8 4786.91/1/99 1121.65 4856.911/1/00 1129.62 4923.681/1/01 1137.69 4991.581/1/02 1145.68 5058.21/1/03 1152.63 5123.821/1/04 1158.36 5189.721/1/05 1164.1 5255.591/1/06 1169.57 5319.821/1/07 1175.04 5384.061/1/08 1180.52 5448.311/1/09 1185.99 5512.561/1/10 1191.47 5576.811/1/11 1195.93 5639.491/1/12 1200.39 5702.161/1/13 1204.86 5764.831/1/14 1209.32 5827.51/1/15 1213.78 5890.161/1/16 1217.89 5951.321/1/17 1221.99 6012.471/1/18 1226.06 6073.611/1/19 1230.1 6134.762020 1234.15 6195.92021 1237.366 6253.742022 1240.582 6311.582023 1243.798 6369.422024 1247.014 6427.262025 1250.23 6485.12026 1252.522 6538.032027 1254.814 6590.962028 1257.106 6643.892029 1259.398 6696.822030 1261.69 6749.75

GDP OECD NON1/1/50 3973.38 817.6571/1/51 4161.78 864.5031/1/52 4359.78 913.2881/1/53 4567.94 964.0351/1/54 4786.84 1016.761/1/55 5017.09 1071.461/1/56 5259.36 1128.141/1/57 5514.35 1186.781/1/58 5782.8 1247.351/1/59 6065.52 1309.811/1/60 6363.36 1374.11/1/61 6677.24 1440.131/1/62 7008.13 1507.81/1/63 7357.08 1576.991/1/64 7725.2 1647.531/1/65 8113.69 1719.241/1/66 8523.83 1791.91/1/67 8956.99 1865.241/1/68 9414.64 1938.961/1/69 9898.37 2012.71/1/70 10437.1 1926.731/1/71 10816.3 2044.991/1/72 11413.1 2154.571/1/73 12129.8 2298.591/1/74 12214.4 2403.821/1/75 12265.8 2504.971/1/76 12861.6 2663.181/1/77 13365.5 2787.091/1/78 13959.6 2897.091/1/79 14483.5 3046.261/1/80 14679.6 3203.061/1/81 14941.3 3218.091/1/82 14963.3 3250.541/1/83 15376 3326.111/1/84 16096.1 3453.61/1/85 16675.3 3554.021/1/86 17187.5 3718.81/1/87 17785 3885.871/1/88 18601.1 4048.711/1/89 19308.2 4165.351/1/90 19880.1 4218.411/1/91 20206.6 4301.661/1/92 20594.7 4381.891/1/93 20858.2 4522.991/1/94 21491.5 4721.161/1/95 22016.7 4948.41/1/96 22654.4 5201.21/1/97 23412 5469.331/1/98 23974.6 5590.381/1/99 24702.2 5775.521/1/00 25644.6 6095.671/1/01 25931.3 6293.751/1/02 26296.7 6521.871/1/03 26820.6 6895.321/1/04 27689.4 7396.941/1/05 28443.7 7877.271/1/06 29181 8339.541/1/07 29910 8813.161/1/08 30659.8 9271.061/1/09 31401.9 9718.441/1/10 32161.1 10173.91/1/11 32887.7 10638.81/1/12 33632.2 11121.51/1/13 34393.6 116281/1/14 35173.9 12159.11/1/15 35973.5 12715.41/1/16 36781.5 13292.91/1/17 37609.5 13899.91/1/18 38458.3 14536.91/1/19 39326.6 15204.72020 40209.9 15906.82021 41102.84 16689.442022 41995.78 17472.082023 42888.72 18254.722024 43781.66 19037.362025 44674.6 198202026 45644.58 20661.122027 46614.56 21502.242028 47584.54 22343.362029 48554.52 23184.482030 49524.5 24025.6

ENERGY DEMAND OECD NON1/1/50 27613.5 11302.21/1/51 28869.8 12418.91/1/52 30126.1 13535.51/1/53 31382.4 14652.21/1/54 32638.7 15768.81/1/55 33895 16885.41/1/56 35437.1 18553.71/1/57 36979.2 202221/1/58 38521.3 21890.21/1/59 40063.4 23558.51/1/60 41605.5 25226.81/1/61 43686.9 26362.31/1/62 45768.4 27497.81/1/63 47849.9 28633.31/1/64 49931.4 29768.81/1/65 52012.9 30904.31/1/66 54741.4 32806.41/1/67 57469.9 34708.41/1/68 60198.4 36610.51/1/69 62926.9 38512.51/1/70 65655.4 40414.61/1/71 69820 425911/1/72 73537.1 44713.11/1/73 77900.6 47065.41/1/74 76617.5 489791/1/75 74661.4 51806.81/1/76 78869.4 54496.71/1/77 81043.6 56891.31/1/78 82940.4 59373.41/1/79 85062.6 61737.61/1/80 82807.8 63040.11/1/81 81398.1 63267.21/1/82 79014.9 64887.51/1/83 79078.6 66746.11/1/84 82879 69486.11/1/85 84283.5 72093.81/1/86 85210.4 74709.71/1/87 88058 77698.71/1/88 90944.2 80890.61/1/89 93038.5 82629.31/1/90 93235.4 82534.31/1/91 94504.6 83501.41/1/92 95829 85984.31/1/93 96961.1 86162.41/1/94 99007.9 858531/1/95 101133 88533.51/1/96 104627 88967.71/1/97 105569 89458.31/1/98 106138 90214.61/1/99 107570 91018.81/1/00 109913 92972.11/1/01 108951 95175.81/1/02 109929 98517.91/1/03 111039 1041861/1/04 113141 1105021/1/05 113427 1150991/1/06 114539 1190061/1/07 115809 1220711/1/08 117038 1252621/1/09 118305 1282571/1/10 119516 1310641/1/11 120538 1339221/1/12 121587 1367891/1/13 122575 1396921/1/14 123587 1426391/1/15 124589 1455931/1/16 125485 1484541/1/17 126353 1513771/1/18 127221 1543301/1/19 128094 1571482020 128898 1600962021 129655.4 163184.82022 130412.8 166273.62023 131170.2 169362.42024 131927.6 172451.22025 132685 1755402026 133311 178087.82027 133937 180635.62028 134563 183183.42029 135189 185731.22030 135815 188279

0

10000

20000

30000

40000

50000

60000

70000

80000

1/1/191/1/181/1/171/1/161/1/151/1/141/1/131/1/121/1/111/1/101/1/091/1/081/1/071/1/061/1/051/1/041/1/031/1/021/1/011/1/001/1/991/1/981/1/971/1/961/1/951/1/941/1/931/1/921/1/911/1/901/1/891/1/881/1/871/1/861/1/851/1/841/1/831/1/821/1/811/1/801/1/791/1/781/1/771/1/761/1/751/1/741/1/731/1/721/1/711/1/701/1/691/1/681/1/671/1/661/1/651/1/641/1/631/1/621/1/611/1/601/1/591/1/581/1/571/1/561/1/551/1/541/1/531/1/521/1/511/1/50

0

50000

100000

150000

200000

250000

300000

350000

1/1/191/1/181/1/171/1/161/1/151/1/141/1/131/1/121/1/111/1/101/1/091/1/081/1/071/1/061/1/051/1/041/1/031/1/021/1/011/1/001/1/991/1/981/1/971/1/961/1/951/1/941/1/931/1/921/1/911/1/901/1/891/1/881/1/871/1/861/1/851/1/841/1/831/1/821/1/811/1/801/1/791/1/781/1/771/1/761/1/751/1/741/1/731/1/721/1/711/1/701/1/691/1/681/1/671/1/661/1/651/1/641/1/631/1/621/1/611/1/601/1/591/1/581/1/571/1/561/1/551/1/541/1/531/1/521/1/511/1/50

DATA on 02/06/2007: DATA on 02/06/2007: DATA on 02/06/2007:

OECD – Organisation for Economic Co-operation and Development

O i l S U p p lY

By 2030 we expect total liquids demand to be about 115 million barrels per day. The world is endowed with huge oil resources, which are adequate to meet rising demand through 2030. However, access to these resources, huge investments, and the ongoing development and application of technology are essential to develop new supplies.

Emerging technologies promise to further advance our capability to extend recoverable resources worldwide. New technology will promote economic development of frontier resources, such as heavy oil and shale oil, to help ensure adequate supplies well past 2030.


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2006 ExxonMobil SAR

Production notes:

S16A 06XOMSAR-GlobalBase.eps

S16A SAR


!CHARTIS IN

F&Oas 08A

Different size

Estimates of Recoverable Oil

1984 1987 1991U.S. Geological SurveyEstimate source:

1994 2000 2006ExxonMobil

5

4

3

2

1

0

W O R L D ’ S O I L R E S O U R C E B A S E

(trillions of barrels)

DATA from PPT on 12/26/2006:

0

1000

2000

3000

4000

5000Frontier

Conventional

Produced

ExxonMobilUSGS 2000USGS 1994USGS 1991USGS 1987USGS 1984

Conventional Resources Frontier Resources

Produced Conventional FrontierUSGS 1984 1719 USGS 1987 1744 USGS 1991 2171 USGS 1994 2273 USGS 2000 3345 ExxonMobil 1020 2213 1500

Produced to Date

�� E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

T H E N E E d F O R p O w E R

Economic growth and improvements in living standards are reflected in the demand for electricity. Those across the world without access to reliable electricity lack a basic ingredient that would allow them to not only improve their lives, but also compete in today’s global economy.

In developed economies, natural gas will provide the most growth in power generation. These countries have access to gas supplies and existing infrastructure. At the same time, gas has advantages in the high efficiency of combined-cycle plants and low emissions versus other fuels.

Emerging economies will generally continue to prefer coal. This is especially true in China and India, where coal is abundant, provides supply security, and offers the lowest-cost option for huge populations with surging demand for electricity.

While natural gas and coal demand will grow the most in absolute terms, nuclear and renewable fuels will also see significant growth.

g R O w i N g E N E R g Y d E M a N d a N d C O 2 E M i S S i O N S

As the world’s energy consumption continues to grow, we must be mindful of the implications.

First, large timely investments are necessary to develop the resources required to meet the world’s energy needs. These investments can be made only if industry is allowed access to the resources.

Second, continuing development and application of technology is essential, both in stretching supplies and dampening demand increases.

Third, rising consumption of oil, gas, and coal means that CO2 emissions will also increase. Rising CO2 emissions pose risks for society and ecosystems, which could prove to be significant. Therefore, it is wise to identify the best options to mitigate global CO2 emissions.

Clearly a variety of options exist to mitigate CO2 emissions, but they each come at a cost, ultimately borne by consumers. Effectively addressing this issue requires understanding the potential scale, cost, and tradeoffs involved.

C O N C l U S i O N S

Key conclusions of our outlook include:

➤ By 2030, energy demand will increase about 60 percent compared to 2000. The vast majority of this increase will occur in developing nations, but efficiency gains throughout the world will remain important.

➤ The global energy mix will look very similar 25 years from now, as oil, gas, and coal will remain predominant.

➤ Resources are adequate to support global demand growth. Access to these resources and large, timely investments will be needed to ensure reliable energy supplies.

➤ Global trade, particularly for oil and natural gas, will continue to grow.

➤ Technology will remain critical to success in all aspects of our energy challenges, whether mitigating demand growth, expanding supplies, or protecting the environment.

Our outlook is focused on the world’s rising energy needs and how we expect these needs to be met, considering scale and cost issues.

Providing this energy is not easy or automatic. The chal-lenges reflect the global magnitude of the task, as well as often competing objectives related to economic develop-ment, energy security, and the environment.

Our approach is to address global energy challenges in a pragmatic fashion, recognizing that proposed solutions which are not feasible on a broad-based, commercial scale are not solutions at all.

With our leading resource base, financial and technological strength, disciplined investment approach, and project portfolio, we are well-positioned to help meet the global needs for substantial new energy supplies. These assets provide us with a sustainable competitive advantage and help us remain at the forefront in meeting the energy challenges and capitalizing on the opportunities ahead.

1980 20001990 2010 2020 2030

350

300

250

200

150

100

50

0

Liquids

G L O B A L E N E R G Y D E M A N D

(millions of oil-equivalent barrels per day) 0.481FOR LAYOUT ALIGNMENTGas Coal Other Annual Growth Rate

2000-2030

1.5%

Average 1.6%

1.6%

1.7%

1.4%

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Last updated:

2006 ExxonMobil SAR

Production notes:

S17A 06XOMSAR-GlbEnrgyDmnd.eps

S17A


!CHARTIS IN

F&OAS 09A

DATA fas of 02/06/2007:

Liquids Gas Coal Other1/1/80 62672 27830 33234 222551/1/81 60562 27586 33365 232981/1/82 59183 27347 33460 240671/1/83 58898 27483 34464 251391/1/84 59926 29629 36019 269641/1/85 59838 30865 37377 284921/1/86 61614 31400 37668 294251/1/87 63011 32911 39434 305851/1/88 65221 34313 40753 317391/1/89 66049 36040 41308 324841/1/90 66036 35802 41118 330251/1/91 66678 36648 40906 339911/1/92 67562 38374 41611 344721/1/93 67461 38988 41777 351211/1/94 68500 39240 42200 351531/1/95 69859 40523 43419 361171/1/96 71806 40505 44581 369821/1/97 73634 40271 44219 371771/1/98 74370 40481 43707 377941/1/99 75944 41282 42751 386121/1/00 76576 43100 43800 394101/1/01 77258 43093 44086 396891/1/02 78078 44679 45424 402661/1/03 79650 46014 48872 406881/1/04 82774 47320 51519 420301/1/05 83833 47909 54148 426351/1/06 85227 49314 55490 435141/1/07 86693 50482 56455 442501/1/08 88038 51786 57467 450101/1/09 89584 52848 58321 458091/1/10 90948 53875 59133 466231/1/11 92241 54966 60002 472511/1/12 93567 56021 60916 478721/1/13 94899 57235 61651 484821/1/14 96261 58409 62405 491511/1/15 97622 59545 63140 498751/1/16 98936 60609 63901 504921/1/17 100263 61609 64752 511061/1/18 101673 62611 65505 517621/1/19 102909 63692 66215 524272020 104354 64680 66894 530672021 105528 65469.6 67924.8 53918.62022 106702 66259.2 68955.6 54770.22023 107876 67048.8 69986.4 55621.82024 109050 67838.4 71017.2 56473.42025 110224 68628 72048 573252026 111157.8 69289 72834 581182027 112091.6 69950 73620 589112028 113025.4 70611 74406 597042029 113959.2 71272 75192 604972030 114893 71933 75978 61290

0

50000

100000

150000

200000

250000

300000

350000

1/1/191/1/181/1/171/1/161/1/151/1/141/1/131/1/121/1/111/1/101/1/091/1/081/1/071/1/061/1/051/1/041/1/031/1/021/1/011/1/001/1/991/1/981/1/971/1/961/1/951/1/941/1/931/1/921/1/911/1/901/1/891/1/881/1/871/1/861/1/851/1/841/1/831/1/821/1/811/1/80

�7E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

upstreamExxonMobil-interest acreage in the Piceance Basin in western Colorado holds an estimated 35 trillion cubic feet of recoverable natural gas. ExxonMobil is implementing a phased development approach utilizing proprietary technologies such as the Fast Drill Process and Multi-Zone Stimulation.

Exploration,Development,Production,andGas&PowerMarketing

U p S T R E a M S T a T i S T i C a l R E C a p 2006 2005 2004 2003 2002 Earnings (millions of dollars) 26,230 24,349 16,675 14,502 9,598Liquids production (thousands of barrels per day) 2,681 2,523 2,571 2,516 2,496Natural gas production available for sale (millions of cubic feet per day) 9,334 9,251 9,864 10,119 10,452Oil-equivalent production (thousands of barrels per day) 4,237 4,065 4,215 4,203 4,238Proved reserves replacement(1)(2) (percent) 129 129 125 107 118Resource additions(2) (millions of oil-equivalent barrels) 4,270 4,365 2,940 2,110 2,150Average capital employed(2) (millions of dollars) 57,871 53,261 50,642 47,672 43,064Return on average capital employed(2) (percent) 45.3 45.7 32.9 30.4 22.3Capital and exploration expenditures(2) (millions of dollars) 16,231 14,470 11,715 11,988 10,394

(1) Excluding asset sales and year-end price/cost effects.(2) See Frequently Used Terms on pages 44 and 45.

U p S T R E a M S T R a T E g i E S

Consistent with the long-term nature of the Upstream business, ExxonMobil’s four fundamental strategies for our global exploration, development, production, and gas and power marketing activities have remained unchanged from year to year:

➤ Identify and pursue all attractive exploration opportunities;

➤ Invest in projects that deliver superior returns;

➤ Maximize profitability of existing oil and gas production; and,

➤ Capitalize on growing natural gas and power markets.

These strategies are successfully executed by utilizing ExxonMobil’s global organization, systems, processes, and capabilities across the entire Upstream portfolio to maximize shareholder value.

ExxonMobil Integrated Oil Competitor Average(1)

20062002 2003 2004 2005

50

40

30

20

10

0

U P S T R E A M R E T U R N O N A V E R A G E C A P I T A L E M P L O Y E D

(percent)

DATA as of 02/10/2007:



"XOM" "Ind""2002" 22.3 16"2003" 30.4 20"2004" 32.9 23"2005" 45.7 26“2006” 45.3 25

0

10

20

30

40

50Ind

XOM

“2006”2005200420032002

2006 XOM SAR

19A


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2006 ExxonMobil F&O

Production notes:

25A 06XOMFO-UpstreamROCE.eps

25A


!CHARTIS IN

BOTHSAR and F&O

2006 Results and HighlightsMatched best-ever employee safety performance with lost-time and total recordable incident rates of 0.045 and 0.42 respectively.

Earnings were a record $26.2 billion, up 8 percent from 2005.

Upstream return on average capital employed was 45 percent in 2006, and has averaged 35 percent over the past five years. We have grown our competitive lead in this important measure of performance.

Earnings per oil-equivalent barrel were $16.96, exceeding those of our competitors.

Total liquids and gas production available for sale was 4.2 million oil-equivalent barrels per day, up 4 percent from 2005 and the highest among our competitors.

Proved oil and gas reserves additions totaled 2.0 billion oil-equivalent barrels, excluding year-end price/cost effects. In 2006 the Corporation replaced 122 percent of production including asset sales, and has replaced 114 percent of production on average over the last five years.

Resource base additions totaled 4.3 billion oil-equivalent barrels in 2006. ExxonMobil’s resource base now stands at 74 billion oil-equivalent barrels.

Finding and resource-acquisition costs were $0.53 per oil-equivalent barrel, consistent with our five-year average of $0.51 per oil-equivalent barrel.

Upstream capital and exploration spending increased to $16.2 billion, driven by an active exploration program, selective investment in a strong portfolio of development projects, and continued investment to enhance the value of existing assets.

U p S T R E a M C O M p E T i T i V E a d V a N T a g E S

Portfolio Quality – The industry’s largest resource base and a project inventory of over 24 billion oil-equivalent barrels provide a portfolio that underpins an attractive long-term outlook.

Global Integration – The global, functional Upstream companies work with the Downstream and Chemical businesses to identify and deliver integrated concepts that maximize resource value.

Discipline and Consistency – Rigorous exploration assessment, project management, and production optimization combined with a consistent focus on

operational integrity and technology form the basis for management of the Upstream business.

Value Maximization – From optimum development concept selection continuing through mid- and late-life investments to increase reservoir recovery, ExxonMobil maximizes resource value over the life of each asset.

Long-Term Perspective – Consistent, selective capital investment and focused technology development throughout the commodity price cycle ensure robust investments that reward shareholders over the long term.


Identify and Pursue All Attractive Exploration Opportunities ExxonMobil’s Exploration Company is organized to identify, evaluate, pursue, and capture all high-quality exploration opportunities. ExxonMobil’s gross undeveloped exploration acreage totaled 105 million acres in 31 countries at year-end 2006. This geographically and geologically diverse, high-quality portfolio balances risk and reward to deliver both near-term production and long-term resource growth.

g R O w i N g T H E R E S O U R C E b a S E

The success of our approach is demonstrated by the addition of an average of 3.2 billion oil-equivalent barrels to the resource base per year over the past five years. The result is a resource base of 74 billion oil-equivalent barrels. Finding and resource-acquisition costs have averaged $0.51 per oil-equivalent barrel over the past five years.

5-YearAverage

10-YearAverage

2006 5-YearAverage

10-YearAverage

2006

0.70

0.60

0.50

0.40

0.30

0.20

0.10

0

F I N D I N G A N D R E S O U R C E –

A C Q U I S I T I O N C O S T(dollars per oil-equivalent barrel)

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2006 ExxonMobil SAR

Production notes:

S20BC 06XOMSAR-ResourcePair.eps

S20BC


!CHARTSARE IN

F&Oon 28BC

125

100

75

50

25

0

P R O V E D R E S E R V E S

R E P L A C E M E N T ( 1 )

(percent of annual production replacedwith proved reserves additions)

(1) Includes asset sales, excludes year-end price/cost effects. See Frequently Used Terms on pages 44 and 45.

“2006” 122“5-year” 114“10-year” 115

0

25

50

75

100

125

“10-year”“5-year”“2006”

DATA as of 02/02/2007:


DATA as of 02/08/2007:

“2006” 0.53“5-year” 0.51“10-year” 0.66

0.0

0.1

0.2

0.3

0.4

0.5

0.6

“10-year”“5-year”“2006”

2 0 0 6 E x p l O R a T i O N a N d

R E S O U R C E C a p T U R E M i l E S T O N E S➤ Acquired a 28-percent interest in the Upper Zakum field

in Abu Dhabi

➤ Captured two additional exploration blocks offshore Western Australia

➤ Participated in the Chandon-1 gas discovery offshore Western Australia

➤ Acquired acreage in three separate tender rounds onshore western Canada

➤ Awarded the deepwater Surumana Block in the Makassar Strait in the 2005 Indonesian bid round

➤ Signed a new joint operating agreement with Pertamina for the Cepu Block in Indonesia

➤ Acquired 80-percent interest in five deepwater Porcupine Basin blocks offshore Ireland

➤ Increased interest in the developing Tyrihans field offshore Norway to 12 percent

➤ Acquired 50-percent equity and operatorship of SC-56 Block in the Philippines

➤ Acquired 50-percent interest in the 2.2-million-acre Block 2 concession onshore Qatar

➤ Signed agreement with the State of Qatar to expand the Al Khaleej domestic gas project in Qatar

➤ Acquired 11,000 acres and initiated drilling on six wells in the Barnett Shale play in the Dallas-Fort Worth area

➤ Awarded seven leases in the Gulf of Mexico Central Lease Sale 198

In 2006 ExxonMobil added 4.3 billion oil-equivalent barrels of new resources to our industry-leading resource base.

Non-provedProved

(1) See Frequently Used Terms on pages 44 and 45.

010 20 30 40 50 60 70 80

Non-provedProved

Estimate 2006

Year end 1996

R E S O U R C E B A S E ( 1 )

(billions of oil-equivalent barrels at year end)

DATA as of 02/08/2007:


"Proved" "Non-proved""Year end 1996" 20.3 44.0"Estimate 2006" 22.7 51.2

1996

2006

0 8070605040302010

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FOAS 28A

d i S C i p l i N E d a p p R O a C H T O p R O V E d R E S E R V E S

All reserves additions and revisions follow a rigorous and structured management review process that is stewarded by a team of experienced reserves experts with global responsibility. ExxonMobil has added over 18 billion oil-equivalent barrels to proved reserves over the past 10 years, replacing 115 percent of production. Total proved reserves of 22.7 billion oil-equivalent barrels would yield 14.2 years of production at current levels.

�0 E x x O N M O b i l C O R p O R a T i O N ■ 2 0 0 6 S U M M a R Y a N N U a l R E p O R T

Invest in Projects that Deliver Superior Returns ExxonMobil has a development portfolio that is expected to ultimately develop more than 24 billion oil-equivalent barrels (net). The company continues to demonstrate an ability to deliver superior returns from development projects through disciplined investment, industry-leading project execution, and a suite of relevant proprietary technologies.

p R O j E C T E x E C U T i O N

The competitive advantage we have built in project execution is multifaceted. Our project portfolio size and the experience of our people, developed by working on many projects of similar types across the world, provide ExxonMobil with the capacity to effectively execute today’s mega-projects. Our functional organization facilitates a very disciplined approach to project management as well as the swift transfer of lessons learned and best practices. The ExxonMobil Capital Project System, or EMCAPS, is utilized to systematically manage project investments across the Upstream, Downstream, and Chemical businesses. It utilizes best-practice work processes, tools, expectations, and decision points that are well under-stood by the workforce.

p R O j E C T T E C H N O l O g i E S

Our commitment and investment in technology bring lower costs and higher reliability through innovative solutions to today’s complex challenges. In the years to come, we expect an evolution in the type of oil and gas resources from which we will be producing and in the physical conditions in which we will be operating. Many new developments will be located in more challenging environments that will require innovations in technology, playing to ExxonMobil’s strengths. From our history of over 35 years of LNG technological leadership, to the breakthrough Multi-Zone Stimulation Technology completions employed to unlock tight gas, to the improved drilling performance made possible through the application of the Fast Drill Process, our suite of proprietary technologies facilitates successful development of challenging resources, on-time and on-budget.

d R i l l i N g a N d C O M p l E T i O N S

ExxonMobil utilizes a standard, global well planning process to ensure that all wells are optimally designed. This disciplined approach guides multifunctional teams to balance cost optimization and wellbore functionality. During the design phase, all available information is incorporated, and the well is designed using standards established by the Global Drilling Organization. During the execution phase, on-site ExxonMobil personnel along with third-party contractors continually analyze well data to reduce time and cost utilizing our Fast Drill Process. Lessons learned from each well are shared throughout the Global Drilling Organization.

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UnitedKingdom

EasternCanada

Australia Qatar Sakhalin

120

100

80

60

40

20

0

F A S T D R I L L P R O C E S S R E S U L T S

(percent increase in feet per day)


0

20

40

60

80

100

120

SakhalinQatarAustraliaUnited KingdomCanada East

Eastern Canada 95United Kingdom 105Australia 86Qatar 64Sakhalin 56

DATA as of 12/10/2006 (confirmed by EMDC 1/17/06):

!CHARTIS IN

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Extended-reach drilling practices developed offshore California enabled record-setting performance at Sakhalin-1.

Actual facilities cost Actual schedule

5-Year Average2006

120

100

80

60

40

20

0

P R O J E C T E X E C U T I O N P E R F O R M A N C E

(percent)

DATA as of 01/27/2007:

Projected cost and schedule

2006 XOM SAR

21A


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“Cost” “Schedule”“2006” 100 104“avg” 100 104

0

20

40

60

80

100

120“Schedule”

“Cost”

“avg”“2006”


p r o j e c t E x e c u t i o n E x c e l l e n c e

The professionalism, organization, and experience of ExxonMobil’s workforce result in the delivery of on-time and on-budget projects. Our 2006 performance was consistent with that of the last five years. Over this time period, the average facilities cost of 47 ExxonMobil- operated projects came in at the level projected at funding. On average, these projects were brought onstream within 5 percent of the timing projected at funding. This repre-sents industry-leading performance.


reduce gas flaring from six fields in the Joint Venture Area offshore Nigeria. We project peak incremental production to be 120 thousand barrels per day (gross).

Dalia – This deepwater development project in Block 17 offshore Angola is expected to recover 1 billion barrels of oil (gross). First oil flowed in December, and production is ramping up to an expected 225 thousand barrels per day (gross) peak rate.

Guntong Hub – The Guntong E platform, the first phase of the Guntong Hub development, started up in June. It is anticipated to produce and process over 4 trillion cubic feet of gas for sale in Peninsular Malaysia to help meet increasing domestic gas demand.

Azeri–Chirag–Gunashli (Phase 2) – The project develops the west and east ends of the Azeri field from two additional platforms that came online in January and November, respectively, adding peak production capacity of over 450 thousand barrels per day (gross).

Fram East – As the second phase of the Fram field development, the project scope includes seven subsea wells tied-back to the Troll C platform.

Syncrude Upgrader – Consisting of the addition of a second train at the Aurora oil sands mine and a third coker, new aromatic saturation unit, and new hydrogen plant at the project upgrader, the expansion increased capacity by 100 thousand barrels of synthetic crude oil per day (gross).

Major Development ProjectsExxonMobil completed seven major project start-ups in 2006, with seven more planned for 2007. Beyond 2007, an additional 50 major projects are in various stages of project planning.

Onboard the Erha floating production, storage, and off-loading (FPSO) vessel, among the largest in the world, a technician conducts diagnostic checks.

RosaAngola

MarimbaNorthAngola

DaliaAngola

East Area AORNigeria

Erha/Erha NorthNigeria

SyncrudeUpgraderCanada

VolveNorway

StatfjordNorway

OrmenLange

Norway

Fram EastNorway

WaddenzeeNetherlands

Azeri-Chirag-GunashliPhase 2

Azerbaijan

RasGasTrain 5Qatar

GuntongHub

Malaysia

2 0 0 6 M A J O R P R O J E C T S T A R T - U P S

2006 XOM SAR

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EPS-2006 StartupWorld.eps

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2006 Start-Ups

2007 Projected Start-Ups

Country with 2006/2007Major Project Start-Up

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2007 Projected Start-Ups

Country with 2006/2007Major Project Start-Up

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2 0 0 6 p R O j E C T S T a R T - U p S

Erha / Erha North – These operated projects to develop deepwater deposits offshore Nigeria commenced production in March and September, respectively. Combined, they were producing in excess of 200 thousand barrels per day (gross) at year end 2006. Erha North set a Nigeria deepwater record with first production within 30 months of discovery.

East Area Additional Oil Recovery (AOR) – The AOR project started-up in June and is expected to increase oil recovery by 560 million barrels of oil equivalent (gross) and


Kearl Oil Sands – This project will develop a world-class resource in northern Alberta estimated to contain over 4 billion barrels of recoverable resource (gross). Regulatory hearings were completed in 2006.

Greater Gorgon – Front-End Engineering Design for offshore development and two 5-million-tons-per-year LNG trains on Barrow Island was completed at the end of 2006. Engineering optimization, design enhancement studies, and regulatory approval processes continue into 2007.

RasGas Train 5 – The final of a series of three 4.7-million-tons-per-year LNG trains, this project has realized cost reductions despite a heated market environment, and was constructed 15 percent faster than previous trains. First LNG was achieved in November 2006, and the offshore develop-ment for the train’s feed gas started up in January 2007.

Qatargas II Train 4 – The first of four record-setting, next-generation 7.8-million-tons-per-year LNG trains is under construction in Ras Laffan Industrial City. A LNG receiving terminal in Milford Haven, United Kingdom, and Q-Flex LNG ships, 40 percent larger than conventional ships, are also under construction for this integrated LNG project.

Piceance Gas Development – Projects are under way to significantly increase ExxonMobil’s current 55 million cubic feet per day (gross) of natural gas production from the nearly 300,000 gross acres under lease in the western Colorado Piceance Basin, estimated to hold 35 trillion cubic feet of recoverable gas.

WaterInjection

WaterInjection

Production

Production

Production

GasInjection

Gas Lift

GasLift

Umbilical

Umbilical

Umbilical

Saxi/BatuqueFPSO

SubseaConnection

Mondo

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!CHART

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O T H E R p R O j E C T S p R O g R E S S i N g

Sakhalin-1 – Following initial production in 2005, the Chayvo onshore processing facility and oil export facilities, including the DeKastri terminal, were started up in 2006. Also in 2006, a gas export project was progressed with the signing of a Heads of Agreement with China National Petroleum Company for natural gas sales via pipeline to northeast China. The initial investment in the Chayvo field will be followed by development of the Odoptu and Arkutun-Dagi fields.

Kizomba C – This project includes the fourth and fifth deepwater production hubs in Block 15 offshore Angola to develop three fields. The development includes subsea completions tied-back to two floating production, storage, and offloading vessels that are currently under construction.

The LNG ship Tenbek is floated out of the building dock during construction in Korea for the Qatar Petroleum-ExxonMobil joint ventures in Qatar. When delivered in October 2007, this LNG ship will be the world’s largest, with a capacity of 216,200 cubic meters.

Shown above is a schematic of one of two floating production, storage, and offloading vessels planned for Kizomba C, with subsea wellheads, manifolds, and flowlines that span some 4 to 6 miles on the seafloor in a water depth of 2400 feet.

A Piceance plant supervisor conducts routine maintenance activities at the Central Treating Facility, where Piceance Basin gas production is processed for sales.


Maximize Profitability of Existing Oil and Gas Production While continuing to bring new assets online, maximizing the profitability of existing oil and gas production is of paramount importance. This is accomplished by application of cost-effective technology and operations management systems to each and every asset to maximize the commercial recovery of hydrocarbons.

M a N a g i N g T H E b a S E

ExxonMobil’s asset base is highly profitable and geographi-cally diverse. Significant emphasis is placed on managing underlying base performance and opportunity generation to maximize value. We continually invest to increase resource recovery, maximize profitability, and extend field life. New production volumes are generated through workovers, drilling new wells, and project implementation. Some assets may have characteristics favorable for enhanced oil recovery, a technology in which ExxonMobil is a recognized industry leader. Our Upstream business consistently captures higher earnings per barrel than our competitors, a reflection of our investment discipline and commitment to excellence in execution.

F O C U S i N g O N O p E R a T i O N S i N T E g R i T Y

Operations integrity is fundamental to our success and is a top priority. Our integrity management systems address all aspects of our business and define our global standards for safe and environmentally sound operations. For example, our Facility Integrity Management System ensures that critical equipment is proactively inspected and maintained consis-tently throughout its lifecycle. The objective is to eliminate critical incidents by pre-empting equipment failure, which translates to better safety performance, higher production reliability, and lower cost.

g R O w i N g p R O d U C T i O N

In 2006 total liquids production was 2.7 million barrels per day. Natural gas production available for sale totaled 9.3 billion cubic feet per day. New projects and work programs more than offset declines in existing mature fields. Although actual production volumes will vary from year to year due to the timing of individual projects and unforeseen events, production capacity is anticipated to grow through 2011. Near-term growth is expected to be led by key liquids projects offshore West Africa, Russia, and the Caspian, and from our significant gas activities in Qatar. Production from North America and Europe is expected to continue to provide a strong, profitable base underpinning our growth.

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S24B SAR


“Americas” “Euro” “AP/ME” “Africa” “Russ/Casp”“2006” 1195 1201 918 781 142“2007” 1149 1217 1010 782 184“2008” 1056 1170 1114 804 223“2009” 1067 1112 1292 791 259“2010” 1137 1074 1488 794 254“2011” 1133 990 1568 864 285

DATA as of 02/23/2007:


2006 2007 2008 2009 2010 2011

5.0

4.0

3.0

2.0

1.0

0

O I L – E Q U I V A L E N T P R O D U C T I O N O U T L O O K

B Y G E O G R A P H I C R E G I O N

(millions of oil-equivalent barrels per day)

Americas Europe Asia Pacific/Middle East

Russia/CaspianAfrica

0

1000

2000

3000

4000

5000“Russ/Casp”

“Africa”

“AP/ME”

“Euro”

“Americas”

“2011”“2010”“2009”“2008”“2007”“2006”

!STAND-ALONECHART

(Not in F&O)


2002 2003 2004 2005 2006

20

15

10

5

0

U P S T R E A M E A R N I N G S P E R B A R R E L

(dollars per oil-equivalent barrel)

DATA as of 02/22/2007:


(1) Royal Dutch Shell, BP, and Chevron values calculated on a consistent basis with ExxonMobil, based on public information.

"XOM" "Ind""2002" 6.20 4.96"2003" 9.45 7.57"2004" 10.81 9.37"2005" 16.41 12.52“2006” 16.96 13.96

0

5

10

15

20Ind

XOM

“2006”2005200420032002

2006 XOM SAR

24A


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36A


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Engineers conduct a safety inspection at the Shute Creek Treating facility near La Barge, Wyoming, which supplies natural gas to the northern United States, CO2 to oil fields for enhanced oil recovery, and helium to customers around the world.


Capitalize on Growing Natural Gas and Power MarketsExxonMobil sells natural gas in 28 countries across five continents in most major gas markets in the world. Our expertise in integrating advanced technologies across the gas value chain and our market presence and knowledge provide a substantial competitive advantage.

N O R T H a M E R i C a N g a S M a R K E T

With gas demand likely to grow about 0.5 percent per year on average to 2030, and domestic supply from existing wells declining, continued investments in existing fields and new discoveries are required. To this end, ExxonMobil is expanding development of tight gas in the Piceance Basin in Colorado. We also have a leading position in arctic gas resources in the Mackenzie Delta region of northern Canada and on the North Slope of Alaska. LNG imports are fore-cast to play an increasingly important role. ExxonMobil is participating in the building of the Golden Pass regasification terminal along the U.S. Gulf Coast, with a planned capacity of 2 billion cubic feet of gas per day.

E U R O p E a N g a S M a R K E T

European gas demand is expected to grow at about 1.5 percent per year through 2030 while local production of natural gas is anticipated to begin declining in the next few years. This will result in a rapid increase in the need for supplies from new LNG and pipeline projects. ExxonMobil is involved in multiple field developments in the North Sea, including the Ormen Lange and Statfjord Late Life projects. The company has access to new pipeline capacity in the Langeled pipe-line from Norway to the U.K. and the BBL pipeline from the Netherlands to the U.K. To meet the growing demand for LNG in Europe, ExxonMobil and its partners are constructing

the South Hook LNG Terminal in Milford Haven, U.K., and the offshore Adriatic LNG Terminal in Italy. Both terminals are expected to begin operation in 2008 with a combined planned capacity of 2.8 billion cubic feet of gas per day.

a S i a p a C i F i C g a S M a R K E T

Asia Pacific gas demand is expected to grow faster than any other region of the world at about 3.7 percent per year through 2030, driven by the developing economies of Asia. ExxonMobil is among the largest suppliers in local markets of Australia and Malaysia, and also provides local supplies to markets in Thailand, Indonesia, Japan, and far east Russia. LNG operations in Indonesia and Qatar in which ExxonMobil participates are major exporters of LNG to Japan, South Korea, India, and Taiwan. Additional opportunities are being progressed in the Middle East, Australia, Indonesia, Russia, and Papua New Guinea, as well as an LNG terminal in Hong Kong.

Gorgon/Scarborough

Arun

Qatar

Nigeria

2006 XOM SAR

25B


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g l O b a l l N g

Global LNG demand is expected to grow at more than 5 percent per year through 2030, driven by demand in North America and Europe as well as Asia Pacific markets. By 2030, LNG demand is expected to represent about 16 percent of the world’s gas demand.

ExxonMobil is currently participating in LNG operations in Qatar and Indonesia with a combined gross capacity of 35 million tons per year, supplying LNG to markets in Asia, Europe, and North America. This represents about 20 percent of global industry capacity. Construction is progressing in Qatar on four additional LNG trains that will increase gross capacity by 30 million tons per year. In addition, ExxonMobil is progressing LNG opportunities that include additional trains in Asia Pacific and West Africa.

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Existing Production / TerminalNew Production / Terminal

LNG Production FacilityLNG Terminal

Major LNG Market(Existing and Target)

Anticipated Supply Flow

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2000 2010 2020 2030

400

300

200

100

0

G L O B A L G A S D E M A N D O U T L O O K

(billions of cubic feet per day)

Pipeline Imports LNG ImportsRegional Production

0

100

200

300

400Total LNG

Total Pipelines

Local Production

20302928272620252423222120201918171620151413121120100908070605042003200220012000

Local Production Total Pipelines Total LNG"2000" 222.2 16.9 12.6"2001" 220.1 17.6 14.1"2002" 228.7 18.3 14.2"2003" 233.6 19 16.4"04" 238.5 19.9 18.4"05" 239.7 20.7 19.9"06" 244.5 21.2 23"07" 248.5 21.7 25.2"08" 252.4 21.7 29"09" 254.6 21.1 33.8"2010" 256.2 22.8 36.5"11" 259.1 25.4 37.4"12" 260.3 27.9 39.9"13" 262.7 29.3 43.2"14" 265.9 32.1 44.1"2015" 266.5 36.7 45.6"16" 267.8 39.6 47.6"17" 270 41.4 49.5"18" 271.5 43.3 52.1"19" 273.4 45.5 54.3"2020" 275.5 46.2 57.2"21" 277.1 48.1 58.5"22" 279.5 48.3 60.5"23" 281.4 49.3 62.3"24" 283.9 50.3 63.5"2025" 286.3 50.7 65.3"26" 288 51.8 66.4"27" 289.8 53 67.3"28" 291.4 53.9 68.7"29" 292.8 55.4 69.6"2030" 294.7 58.1 68.9

DATA as of 01/23/2007:


!STAND-ALONECHART

(Not in F&O)


downstreamOur Baton Rouge refinery realizes significant yield advantage by optimizing streams exchanged between fuels, chemical, lubes and specialties facilities. Over 75 percent of our refineries benefit from similar integration and optimization.

Refining&Supply,FuelsMarketing,andLubricants&Specialties

d O w N S T R E a M S T a T i S T i C a l R E C a p 2006 2005 2004 2003 2002 Earnings (millions of dollars) 8,454 7,992 5,706 3,516 1,300

Refinery throughput (thousands of barrels per day) 5,603 5,723 5,713 5,510 5,443

Petroleum product sales(1) (thousands of barrels per day) 7,247 7,519 7,511 7,270 7,075

Average capital employed (millions of dollars) 23,628 24,680 27,173 26,965 26,045

Return on average capital employed (percent) 35.8 32.4 21.0 13.0 5.0

Capital expenditures (millions of dollars) 2,729 2,495 2,405 2,781 2,450

(1) Petroleum product sales data are reported net of purchases/sales contracts with the same counterparty.

d O w N S T R E a M S T R a T E g i E S

ExxonMobil’s Downstream is a large, diversified, and profitable business, with marketing presence and refining complexes the world over. Our Downstream strategies position the company to be the industry leader, capable of outperforming the competition under a variety of market conditions:

➤ Maintain best-in-class operations, in all respects

➤ Provide quality, valued products and services to our customers

➤ Lead industry in efficiency and effectiveness

➤ Capitalize on integration with other ExxonMobil businesses

➤ Selectively invest for resilient, advantaged returns

➤ Maximize value from leading-edge technology

Execution of these strategies combined with overall operations excellence continues to deliver superior results. Our financial objectives in the Downstream can be summarized into three broad areas – margin enhancement, cost efficiency, and capital discipline.

2006 Results and HighlightsContinued leadership in safety, reliability, scale, and technology contributed to our best-ever financial performance and superior operating results.

Earnings were a record $8.5 billion, up 6 percent versus 2005.

More than $2 billion of pretax operating cost efficiencies and revenue enhancements were achieved. We have delivered an average of $1.7 billion in pretax improvements per year since 2001 through improvements delivered through our industry-leading proprietary technology, scale, and collaboration via our global functional organization.

Downstream capital expenditures were $2.7 billion in 2006, up more than 9 percent versus 2005, reflecting additional investment required to meet low-sulfur fuel and regulatory requirements.

Return on capital employed was 36 percent, up from 32 percent in 2005.

Refinery throughput was 5.6 million barrels a day, down 2 percent versus 2005, reflecting increased turnaround workload.

Petroleum product sales continued to be strong at 7.2 million barrels per day, largely due to industry demand and operating performance.

d O w N S T R E a M C O M p E T i T i V E a d V a N T a g E S

Portfolio Quality – We are the world’s largest global refiner, manufacturer of lube basestocks, and supplier and marketer of petroleum products. Our large, world-class facilities are located in major markets around the world.

Global Integration – Over 75 percent of our refining capacity is integrated with lubes and/or chemicals. Our global functional organization delivers efficient development and deployment of best practices and new technology.

Discipline and Consistency – Our processes and efficient execution have established us as an industry leader in operations excellence and cost effectiveness.

Value Maximization – Our molecule management technology allows us to optimize raw materials, maximize premium products, and optimize product placement.

Long-Term Perspective – We maintain a disciplined capital approach focused on selective and resilient investments that build on our advantages.


2002 2003 2004 2005 2006

D O W N S T R E A M R E T U R N

O N A V E R A G E C A P I T A L E M P L O Y E D

(percent)

DATA as of 02/10/2007:


"XOM" "Industry""2002" 5.0 2"2003" 13.0 8"2004" 21 17"2005" 32.4 17“2006” 35.8 18


40

35

30

25

20

15

10

5

0

NOTE: Excludes total S.A.

0

5

10

15

20

25

30

35

40Industry

XOM

“2006”2005200420032002

2006 XOM SAR

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We expanded distillation capacity at our Antwerp, Belgium, refinery by over 20 thousand barrels per day via low-cost debottlenecking steps. On average, we have added the capacity of a new industry-average-size refinery every three years.

Refining & SupplyExxonMobil’s network of reliable and efficient manufacturing plants, transportation systems, and distribution centers provides clean fuels, lubricants, and other high-value products and feedstocks to customers around the world. Our global supply organization optimizes our system – the supply of raw materials to our refineries, products supplied to our customers, and Upstream equity crude placement.

Our proven business model is founded on continuous operations improvement, leveraging our global scale and integration to improve margins and deliver cost efficiencies, and a disciplined capital investment program to meet demands for high-quality products. Our scale, integration, global functional organization, and technical capabilities combine to provide us with significant competitive advantages versus industry. These structural advantages are difficult for competitors to duplicate, and we leverage these advantages to yield results better than industry.

O p E R a T i O N S E x C E l l E N C E

Our goal is flawless operations. We continuously strive to improve personnel and operations safety, security, operations reliability, environmental performance, and business controls. We rely on the commitment of our people, global manage-ment systems, networks, and business planning processes to continuously improve performance. For example, our Operations Integrity Management System (OIMS) framework establishes common worldwide expectations for mitigating operations integrity risks that are inherent in our business. Our processes and efficient execution have established us as an industry leader in operations excellence.

g l O b a l S C a l E a N d i N T E g R a T i O N

We are the world’s largest global refining company, with the most distillation, conversion, and lube basestock production capacity. On average, our refineries are over 60 percent larger than the industry average, and are more integrated with chemical and lubes operations. This provides us flexibility to optimize operations and to produce higher-value products with lower feedstock and operating costs.

i N C R E a S i N g S H a R E H O l d E R V a l U E

We improve returns and create shareholder value by maximizing utilization of refining capacity, economically growing capacity, reducing the cost of raw materials purchased, and improving yields of high-value products.

We increase refinery utilization and throughput by improving reliability, eliminating constraints, shortening the time required to complete turnarounds, optimizing intervals between down-times, and expanding market outlets. Our improvements are driven by the disciplined application of management systems such as our Global Reliability System and our Molecule Management Program.


"Distillation" "Conversion""XOM" 100 38.3"Shell" 83 26.5"BP" 55 23.3

0

20

40

60

80

100Conversion

Distillation

BPShellXOM

(1) Royal Dutch Shell and BP values calculated on a consistent basis with ExxonMobil, based on public information.(2) Conversion capacity includes cat cracking, hydrocracking, and coking.

ExxonMobil Royal Dutch Shell BP

100

80

60

40

20

0

Distillation

E Q U I T Y C A P A C I T Y ( 1 )

(indexed)

Conversion(2)

DATA as of 02/10/2007:

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ExxonMobil Royal Dutch Shell IndustryBP

80

70

60

50

40

R E F I N E R Y I N T E G R A T I O N W I T H C H E M I C A L S O R L U B E S ( 1 )

(percent)

DATA as of 02/22/2007:

"XOM" 75.2"Shell" 67.2"BP" 48.9"Industry" 58.4

40

50

60

70

80

IndustryBPShellXOM


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We employ advanced molecular fingerprinting and modeling technologies that improve our understanding of the behavior and characteristics of materials moving through our refineries. This technology enables us to precisely select and blend crudes that will produce the highest margins through our operating facilities. Our Molecule Management technology enables us to optimize the composition of our products in real time and maximize yields of high-value products. We also realize a sizable yield advantage from our ability to optimize many product and feedstock streams and exchanges between chemical and/or lubricants and specialties operations.

O p E R a T i N g E F F i C i E N C i E S

In addition to improving margins, we also increase returns by becoming more efficient. An ongoing focus on being the most efficient in all aspects of the business has resulted in worldwide cash operating costs at our refineries that are substantially below the industry average.

A key contributor to our better-than-industry cost perfor-mance is improved energy efficiency. In 2006 we sustained our improvement trend, and have been improving our energy efficiency at a rate about twice that of industry. ExxonMobil’s proprietary Global Energy Management System (GEMS) focuses on opportunities that reduce the energy consumed at our refineries and chemical complexes. Approximately $1.5 billion of annual pretax savings has been identified to date, equal to 15 to 20 percent of the energy consumed at our refining and chemical facilities. As of year-end 2006, we have captured over 50 percent of these savings. We also continue to make significant investments in cogeneration facilities, which simultaneously produce electric power and steam. In addition to improving efficiency, our GEMS system and cogeneration decrease greenhouse gas emissions.

i N V E S T i N g F O R a d V a N T a g E d R E T U R N S

Refining & Supply capital expenditures are focused on selective and resilient investments to meet future product quality requirements, reduce environmental impact, further upgrade safety systems, lower operating costs, and produce higher-value products and chemical feedstocks using lower-cost raw materials.

We also implement projects that enhance refinery capacity and yield. By investing primarily in low-cost debottleneck steps, we have effectively added a new industry-average size refinery to our portfolio every three years and an average-size conversion unit every year, at a fraction of grassroots cost.

E M E R g i N g M a R K E T g R O w T H

World-class scale and integration, industry-leading efficiency, leading-edge technology, and globally respected brands enable ExxonMobil to take advantage of attractive emerging-growth opportunities around the globe.

For example, our assets are well-positioned and configured to supply liquids demand growth in Asia Pacific, which we estimate will average over 2 percent growth annually through 2030. Together with Saudi Aramco, Sinopec, and Fujian Province, we recently announced the signing of contracts for the first fully-integrated refining, petrochemicals, and fuels marketing joint-venture projects with foreign participa-tion in China. The project expands an existing refinery from 80 thousand barrels per day to 240 thousand barrels per day and installs a world-scale integrated chemical plant. There will be a paired fuels marketing joint-venture that will include approximately 750 retail sites. The integrated approach, combined with leading technology, scale, and world-class operations positions this project to be highly competitive in the growing China market.

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DIFFERENTHED


(indexed Solomon data) (1)

ExxonMobil Industry

R E F I N I N G E N E R G Y I N T E N S I T Y

2000 2002 2004 2006

104

102

100

98

96

94

92

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ENERGY INTENSITYDATA as of 02/20/2007: "XOM" "Industry""2000" 100 102.3725"2002" 98.932 101.3049"2004" 95.255 99.6441"2006" 93.1198

92

94

96

98

100

102

104Industry

XOM

2006200420022000

(1) Solomon data available for even years only.

Furnace optimization is one example of how our Global Energy Management System is applied to improve energy efficiency.


Convenience, quality, and value are provided to customers at approximately 34,000 retail service stations.

are prioritized through a rigorous, disciplined, and globally consistent market-planning process using sophisticated tools and models to assess factors such as customer demographics and preferences. Our selective investment approach is complemented by equally selective divestments that highgrade our asset base and optimize returns. This disciplined approach has reduced our number of retail service stations by nearly 20 percent and improved our capital efficiency by 13 percent since 2002.

g R O w i N g N O N F U E l S i N C O M E

Fuels Marketing offers a portfolio of innovative market specific retail formats and products to fully meet our customers’ needs and expectations by delivering convenience, quality, and value. Further increasing nonfuels income continues to be one of the key priorities to optimize retail site profitability.

In certain markets, we use strategic alliances with leading food and grocery marketers to complement our brand and enhance our convenience store offering by leveraging the strength of our partners’ brand value, expertise, and distribu-tion network. Examples include our alliances with Tesco in the United Kingdom and Thailand, Doutor and 7-Eleven in Japan, NTUC Fairprice in Singapore, and Tim Hortons in Canada.

ExxonMobil offers its premium products around the world at sites featuring our award-winning On the Run convenience store format and our three trusted brands: Exxon, Mobil, and Esso.

Fuels MarketingExxonMobil Fuels Marketing continues to create long-term value by selling high-quality products and services to millions of customers each day across the globe. Our respected Exxon, Mobil, Esso, and On the Run brands serve customers on the move at nearly 34,000 retail service stations. ExxonMobil fuel products and services are also provided through our three business-to-business segments – Industrial and Wholesale, Aviation, and Marine – to over 1 million customers worldwide.

Fuels Marketing provides a ratable and secure outlet for our refineries and continues to be well-positioned to successfully compete in a dynamic and competitive marketplace by main-taining focus on key business fundamentals: superior safety and environmental performance, operating efficiencies from our global scale and integration, disciplined capital manage-ment, and customer focused marketing initiatives.

O p E R a T i N g E F F i C i E N C i E S a N d i N T E g R a T i O N

We continue to leverage integration between our marketing and refining businesses. Downstream cross-functional teams focus on optimizing product placement across the broad spectrum of customer segments to capture the highest value for our refined molecules. Highgrading sales to higher-value channels increased fuels income by over $100 million in 2006.

Operating efficiencies continue to be captured from the global application of innovative technologies, centralization of support activities, and simplification and automation of work processes. In 2006 the combined impact of our efficiency initiatives reduced ongoing operating expenses by $150 million.

d i S C i p l i N E d C a p i T a l M a N a g E M E N T

The Fuels Marketing capital management strategy combines selective investments and ongoing portfolio highgrading to optimize the profitability of our business. Investments


In 2006 we expanded our new line of high-endurance motor oils in Mexico. Mobil 1 ESP, a low-ash lubricant for diesel engines that prolongs life of emission systems, was introduced into the United States following a successful 2005 launch in Europe.

S T R a T E g i C g l O b a l a l l i a N C E S

Globally respected brands and industry-leading technology enable ExxonMobil to build long-lasting and successful strategic global alliances with automotive and industrial equipment manufacturers.

In 2006 ExxonMobil celebrated 10 years of partnership with Porsche. Porsche recommends Mobil 1 motor oil exclusively, and every new Porsche automobile rolls off the assembly line filled with Mobil 1 oil.

g R O w T H i N p R O F i T a b l E E M E R g i N g M a R K E T S

As economies around the world develop and industrialize, they bring a demand for high-quality industrial and automotive lubricants. For example, in China and Russia, we have leveraged our well-recognized brands, strong equipment manufacturer relationships, and technical expertise to become a leading international lubes marketer in those markets. In these two countries alone, we have grown our business nearly two-fold since 2000.

Mobil 1 motor oil continues to increase its market share as demand for high quality lubricants grows. Mobil 1 is the recommended engine oil for more than 50 percent of new luxury vehicles in the North American market. No other motor oil holds as many engine specification approvals, endorsements, or recommendations.

In 2006 ExxonMobil increased its Mobil 1 production capacity in Beaumont, Texas, to meet the growing demand for our flagship product.

Lubricants & SpecialtiesExxonMobil is the world’s No. 1 supplier of lube basestocks and a leader in marketing finished lubricants and specialty products. We market products under three strong global brands, Mobil, Exxon, and Esso. Anchoring these brands is Mobil 1, the world’s leading synthetic motor oil. Many leading original equipment manufacturers around the world trust us to deliver technically superior products that provide the lubrication they need to protect and keep their vehicle engines and industrial machines running at peak performance. We have a dedicated organization and strong distributor network that supply high-quality lubricants and provide technical application expertise to customers throughout the globe.

We produce high-quality basestocks through interests in 13 lubricant refineries, supplying twice the volume as that of our next-largest competitor, and we manufacture our three brands of finished lubricants through interests in 48 blend plants around the world.

l E V E R a g i N g O U R b R a N d a N d T E C H N O l O g Y

Customers rely on our high-quality finished lubricants to serve their automotive, industrial, commercial transportation, aviation, and marine needs. Our branded products have demonstrated the ability to withstand performance stresses, including those of motorsports racing such as NASCAR, American LeMans, and Formula 1, and are backed by technical services designed to provide customers with worry-free operations.

ExxonMobil BPRoyal Dutch Shell

20

15

10

5

0

L U B R I C A N T M A R K E T S H A R E ( 1 )

(percent)

DATA as of 02/10/2007:

Basestocks Finished Lubes 0.481FOR LAYOUT ALIGNMENT

“Basestocks” “Finished Lubes”“XOM” 19.5 12.7“Shell” 9.0 12.7“BP” 1.0 8.4

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0

5

10

15

20“Finished Lubes”

“Basestocks”

“BP”“Shell”“XOM”

(1) Royal Dutch Shell and BP values estimated based on public information.


chemicalThe Mont Belvieu Plastics Plant, located outside of Houston, Texas, is a leader in the development of advanced polyolefin catalyst and process technology. The site plays a key role enabling premium product growth for the polyethylene business.

C H E M i C a l S T a T i S T i C a l R E C a p 2006 2005 2004 2003 2002 Earnings (millions of dollars) 4,382 3,943 3,428 1,432 830

Prime product sales(1) (thousands of metric tons) 27,350 26,777 27,788 26,567 26,606

Average capital employed (millions of dollars) 13,183 14,064 14,608 14,099 13,645

Return on average capital employed (percent) 33.2 28.0 23.5 10.2 6.1

Capital expenditures (millions of dollars) 756 654 690 692 954

(1) Prime product sales include ExxonMobil’s share of equity company volumes and finished-product transfers to the Downstream. Carbon-black oil volumes are excluded.

C H E M i C a l S T R a T E g i E S

ExxonMobil Chemical continues to produce superior returns and earnings growth through the effective implementation of our fundamental strategies. Proven over several decades, they reflect our ongoing commitment to the petrochemical business:

➤ Focus on businesses that capitalize on core competencies;

➤ Capture full benefits of integration across ExxonMobil operations;

➤ Consistently deliver best-in-class performance;

➤ Build proprietary technology positions; and,

➤ Selectively invest in advantaged projects.

Together with the integrity of our business practices and operations, these strategies remain the foundation for our business, and ultimately, our performance.

2006 Results and HighlightsOperational performance continued to be strong with best-ever results in safety and energy efficiency.

Earnings were a record $4.4 billion, up 11 percent versus 2005. ExxonMobil continued to benefit from our unique business portfolio, global presence, and feedstock and integration advantages.

Return on average capital employed reached 33 percent, up from 28 percent in 2005. ExxonMobil Chemical returns continue to exceed the average of our major chemical competitors. While making substantial investments to support long- term growth, our chemical segment achieved an average return of 16 percent over the last 10 years. During this period, our competitors averaged 8 percent.

2006 prime product sales volume of 27 million tons was 2 percent higher than 2005. Revenue of $49 billion increased 14 percent from 2005.

Plans were announced for a proposed major petrochemical complex in Qatar with Qatar Petroleum. In addition, a feasibility study was begun with Saudi Basic Industries Corporation (SABIC) to define a potential project to grow our existing joint petrochemical ventures at Yanbu and Al Jubail.

Capital expenditures were $756 million with continued selective investment targeting high-return efficiency projects, low-cost debottlenecks, and growth of our profitable specialty businesses. In addition, significant progress was made in advancing our study of a second, parallel petrochemical train at our Singapore complex.

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ExxonMobil Major Chemical Competitors(1)

(1) Includes the chemical segments of Royal Dutch Shell, BP (through 2004), and Chevron, as well as Dow Chemical, the sole chemical-only competitor with a significant portfolio overlap. Competitor values are estimated on a consistent basis with ExxonMobil, based on public information.

1995 1996 200220012000199919981997 2003 2004 2005 2006

35

30

25

20

15

10

5

0

Return on Average Capital Employed

C H E M I C A L O U T P E R F O R M E D C O M P E T I T I O N

A C R O S S T H E B U S I N E S S C Y C L E

(percent)

DATA as of 02/23/2007:


"XOM" "Competitors""1995" 33.9 21.9"1996" 15.3 14.3"1997" 17.3 12.8"1998" 12.9 5.8"1999" 10.9 8.1"2000" 8.4 8.0"2001" 6.4 2.3"2002" 6.1 3.3"2003" 10.2 4.3"2004" 23.5 6.0"2005" 28.0 15.6“2006” 33.2 14

0

5

10

15

20

25

30

35Competitors

XOM

“2006”20052004200320022001200019991998199719961995

C H E M i C a l C O M p E T i T i V E a d V a N T a g E S

Portfolio Quality – Our unique mix of chemical businesses delivers superior performance relative to competition throughout the business cycle.

Global Integration – Synergies with Upstream and Downstream operations continue to be identified and realized. Benefits are derived from the physical integration of sites, coordinated planning, global networks, feedstock integration, and shared services and best practices.

Discipline and Consistency – Our consistent and relentless focus on all aspects of operational excellence has produced industry-leading practices and systems.

Value Maximization – Our proprietary technology has successfully led to the development and growth of higher-valued premium products in both our commodity and specialty businesses.

Long-Term Perspective – Through a highly structured capital management approach, we invest only in projects that can compete in the toughest environments based on feedstock, technology, or marketing advantages.


Fundamental StrategiesThrough consistent deployment of our long-term strategies, we have demonstrated differentiated performance that has strengthened our position as a premier petrochemical company.

F O C U S O N b U S i N E S S E S T H a T

C a p i T a l i z E O N C O R E C O M p E T E N C i E S

ExxonMobil’s unique portfolio of chemical businesses has been developed over many years based on fundamental competitive advantages.

The company holds leadership positions for some of the largest-volume and highest-growth petrochemicals in the global economy. We are one of the largest producers of olefins, the basic petrochemical building blocks for numerous derivative products. ExxonMobil is also the largest worldwide producer of polyolefins, including polyethylene and polypropylene, which are used in numerous areas ranging from food packaging to automotive and medical applications.

In addition, the company is one of the largest global producers of paraxylene and benzene. Paraxylene is one of the fastest-growing petrochemicals and the main raw mate-rial for polyester fibers and polyethylene terephthalate (PET) recyclable bottles. Benzene is a primary building block for a broad array of products ranging from nylon to polystyrene.

The company has a similar leadership presence in a diverse set of specialty businesses, composed of product families that deliver higher value through advanced performance. These businesses are grounded in proprietary technology, benefit from synergies across business lines, and are strong performers throughout the business cycle.

Throughout ExxonMobil’s commodity and specialty businesses, a key focus area is the continued upgrade of products to meet evolving customer needs. With growth

rates more than double that of our overall business, the success of these premium products is underpinned by extensive customer application support, proprietary technology, and strong intellectual property positions.

C a p T U R E F U l l b E N E F i T S O F i N T E g R a T i O N

a C R O S S E x x O N M O b i l O p E R a T i O N S

Over 90 percent of the chemical capacity that ExxonMobil owns and operates is integrated with the company’s large refining complexes or natural gas processing plants.

In addition to the flexibility and cost savings that physical integration of sites affords, optimization of feedstock and production plans through sophisticated models provides sustained advantages. At these joint sites, maintenance, laboratory, engineering, and other services are shared. More broadly, best practices in safety, reliability, and training are transferred globally across all organizations.

ExxonMobil’s breadth of experience and commitment across the upstream, downstream, and petrochemical businesses are demonstrated sources of competitive advantage. In addition, our petrochemical technology, market understanding, and applications expertise enable the Corporation to offer potential partners and host governments a comprehensive, integrated approach to major project development.

C O N S i S T E N T lY F O C U S O N

b E S T - i N - C l a S S p E R F O R M a N C E

The company maintains a consistent and relentless focus on operational excellence. Through many years of effort, business practices and systems have been developed to ensure the uncompromised integrity of our operations and delivery of industry-leading performance.

ExxonMobil’s Fluids operation in Antwerp, Belgium, supplies premium products to a number of key markets and benefits from integration with the company’s large refining complex.

b U S i N E S S E S Worldwide Rank Based on Market Position

CommoditiesParaxylene ..............................................................................#1Olefins ....................................................................................#2Polyethylene ...........................................................................#2Polypropylene .........................................................................#5

SpecialtiesButyl Polymers .......................................................................#1Fluids ......................................................................................#1Plasticizers/Oxo ......................................................................#1Synthetics ..............................................................................#1Oriented Polypropylene Films .................................................#1Adhesive Polymers .................................................................#1Specialty Elastomers ..............................................................#2Petroleum Additives ................................................................#2


operating, and investment synergies with existing refining and chemical facilities.

➤ Project engineering and procurement activities continued on the Fujian integrated refining, petrochemical, and fuels marketing joint venture. This is the only fully integrated project in China and would involve construction of an 800 thousand-tons-per-year ethylene steam cracker, polyethylene and polypropylene units, and a 700 thousand-tons-per-year paraxylene unit.

➤ Qatar Petroleum and ExxonMobil Chemical Qatar signed a Heads of Agreement to progress studies for a world-scale petrochemical complex in Ras Laffan Industrial City, Qatar. The proposed complex includes a world-scale 1300 thousand-tons-per-year steam cracker, along with polyethylene and ethylene glycol units. The complex would utilize feedstock from gas development projects in Qatar’s North Field and supply competitively-advantaged premium products to the Middle East, Asia, and Europe.

➤ Saudi Basic Industries Corporation (SABIC) and affiliates of ExxonMobil Chemical announced a feasibility study to define a potential project to grow the existing joint petrochemical ventures at Yanbu and Al Jubail. The project would target a domestic supply of petrochemical products to serve emerging local and international markets.

In addition, we continued to grow our specialty businesses and to progress low-cost expansion projects to serve existing and developing markets. These investments enable continued growth of premium products across our commodity and specialty businesses.

The company’s disciplined approach to safety, productivity, reliability, and quality improvement has continually increased the contribution of existing assets. Over the last five years, improved reliability, elimination of constraints, and technology advances have added the equivalent capacity of about one-and-a-half steam crackers at significantly less than grassroots cost.

The company also benefits from marketing excellence initiatives aimed at continuously improving areas such as transactional excellence, optimization of supply chain networks, growth of premium products, working capital management, and continuous enhancement of enabling technology.

b U i l d p R O p R i E T a R Y T E C H N O l O g Y p O S i T i O N S

Technology is a major source of competitive advantage and differentiation. Our goal is to provide value to our customers through product innovation and application support. We also focus significant research toward the development of leading process technology and utilization of lower cost, advantaged feedstocks.

S E l E C T i V E lY i N V E S T i N a d V a N T a g E d p R O j E C T S

The company made significant progress on plans for several world-scale advantaged projects to supply demand growth in Asia, and in particular China, which alone is expected to represent 25 percent of global key commodity demand by 2015. Several of these projects would build on our advantaged geographic footprint of world-scale facilities strategically located in the Middle East and Singapore.

➤ Detailed project definition for a second world-scale steam cracker complex in Singapore continues. The project coordination and services contractor, as well as the front-end engineering and design contractors for several derivative units, were selected. In addition to the steam cracker, the project scope includes new world-scale polyethylene, polypropylene, and specialty elastomers plants; an aromatics extraction unit; and an oxo-alcohol expansion. The project would be located at and integrated with the existing Singapore complex, providing feedstock,

By 2015 we expect Asia will contribute 50 percent of global demand for key commodity petrochemicals.

p R O j E C T S T a R T - U p S Capacity (1)

(metric tons Location per year)

Olefins/Polyolefins

2006 Ethylene (50% interest) ........ Al Jubail, Saudi Arabia 30,000

2006 Polypropylene ....................Baton Rouge, Louisiana 60,000

2007 Ethylene ...................................................Singapore 75,000

2007 Polyethylene ................................Antwerp, Belgium 27,000

Specialty Businesses

2006 Specialty Elastomers ..................Pensacola, Florida 1 line

2006 Polyethylene Film .................................Nasu, Japan 25,000(2)

2006 Oxo-Alcohols ...........................................Singapore 40,000

2006 Isopropyl Alcohol ...............Baton Rouge, Louisiana 40,000

2006 Halobutyl Rubber (50% interest) .... Kashima, Japan 8,500

2006 Butyl Elastomers .............................Baytown, Texas 1 line

2007 Compounded Polymers .....Baton Rouge, Louisiana 3 lines

2008 Adhesive Resins ........ Notre Dame de Gravenchon, France 18,000

2008 Bromobutyl Rubber ............Baytown, Texas 60% increase

(1) ExxonMobil equity share of capacity addition.(2) Thousand square meters per year.


R E p O R T O F i N d E p E N d E N T R E g i S T E R E d p U b l i C a C C O U N T i N g F i R M

To The Shareholders Of Exxon Mobil Corporation:

We have audited, in accordance with the standards of the Public Company Accounting Oversight Board (United States), the consolidated financial statements of Exxon Mobil Corporation as of December 31, 2006, and 2005, and for each of the three years in the period ended December 31, 2006, management’s assessment of the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2006 and the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2006; and in our report dated February 28, 2007, we expressed unqualified opinions thereon. The consolidated financial statements and management’s assessment of the effectiveness of internal control over financial reporting referred to above (not presented herein) appear in Appendix A to the Proxy Statement for the 2007 annual meeting of shareholders of the Corporation.

In our opinion, the information set forth in the accompanying condensed consolidated financial statements (pages 37-40) is fairly stated, in all material respects, in relation to the consolidated financial statements from which it has been derived.

Dallas, Texas February 28, 2007

Financial Summary


S U M M a R Y O F a C C O U N T i N g p O l i C i E S a N d p R a C T i C E S

The Corporation’s accounting and financial reporting fairly reflect its straightforward business model involving the extracting, refining, and marketing of hydrocarbons and hydrocarbon-based products. The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires management to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates.

The summary financial statements include the accounts of those significant subsidiaries owned directly or indirectly with more than 50 percent of the voting rights held by the Corporation, and for which other shareholders do not possess the right to participate in significant management decisions. They also include the Corporation’s share of the undivided interest in certain Upstream assets and liabilities. Amounts representing the Corporation’s percentage interest in the net assets and net income of the less-than-majority-owned companies are included in “Investments and advances” on the Balance Sheet and “Income from equity affiliates” on the Income Statement.

The “functional currency” for translating the accounts of the majority of Downstream and Chemical operations outside the United States is the local currency. The local currency is also used for Upstream operations that are relatively self-contained and integrated within a particular country. The U.S. dollar is used for operations in highly inflationary economies and certain other countries.

Revenues associated with sales of crude oil, natural gas, petroleum and chemical products are recognized when the products are delivered and title passes to the customer.

Inventories of crude oil, products, and merchandise are carried at the lower of current market value or cost (generally determined under the last-in, first-out method – LIFO). Inventories of materials and supplies are valued at cost or less.

The Corporation makes limited use of derivative instruments. When derivatives are used, they are recorded at fair value, and gains and losses arising from changes in their fair value are recognized in income.

The Corporation’s exploration and production activities are accounted for under the “successful efforts” method. Depreciation, depletion, and amortization are primarily determined under either the unit-of-production method or the straight-line method. Unit-of-production rates are based on the amount of proved developed reserves of oil, gas, and other minerals that are estimated to be recoverable from existing facilities. The straight-line method is based on estimated asset service life.

The Corporation incurs retirement obligations for certain assets at the time they are installed. The fair values of these obligations are recorded as liabilities on a discounted basis and are accreted over time for the change in their present value. The costs associated with these liabilities are capitalized as part of the related assets and depreciated. Liabilities for environmental costs are recorded when it is probable that obligations have been incurred and the amounts can be reasonably estimated.

Effective in 2006, the Corporation recognized the underfunded or overfunded status of defined benefit pension and other postretirement plans as a liability or asset in the balance sheet with the offset in shareholders’ equity, net of deferred taxes.

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits and tax disputes. For further information on litigation and other contingencies, see Note 15 to the Financial Statements in ExxonMobil’s 2007 Proxy Statement.

Share-based compensation is awarded to employees in the form of restricted stock. Compensation expense is measured by the market price of the restricted shares at the date of grant and is recognized over the requisite service period of each award.

Further information on the Corporation’s accounting policies and practices can be found in ExxonMobil’s 2007 Proxy Statement (Critical Accounting Policies and Note 1 to the Financial Statements).


S U M M a R Y S TaT E M E N T O F i N C O M E

(millions of dollars) 2006 2005 2004 Revenues and Other incomeSales and other operating revenue(1)(2) 365,467 358,955 291,252Income from equity affiliates 6,985 7,583 4,961Other income 5,183 4,142 1,822 Total revenues and other income 377,635 370,680 298,035

Costs and Other deductionsCrude oil and product purchases 182,546 185,219 139,224Production and manufacturing expenses 29,528 26,819 23,225Selling, general and administrative expenses 14,273 14,402 13,849Depreciation and depletion 11,416 10,253 9,767Exploration expenses, including dry holes 1,181 964 1,098Interest expense 654 496 638Sales-based taxes(1) 30,381 30,742 27,263Other taxes and duties 39,203 41,554 40,954Income applicable to minority and preferred interests 1,051 799 776 Total costs and other deductions 310,233 311,248 256,794

Income before income taxes 67,402 59,432 41,241Income taxes 27,902 23,302 15,911 Net income 39,500 36,130 25,330

Net income per Common Share (dollars) 6.68 5.76 3.91

Net income per Common Share – assuming dilution (dollars) 6.62 5.71 3.89

(1) Sales and operating revenue includes sales-based taxes of $30,381 million for 2006, $30,742 million for 2005 and $27,263 million for 2004. (2) Sales and other operating revenue includes $30,810 million for 2005 and $25,289 million for 2004, for purchases/sales contracts with the same counterparty. Associated

costs were included in Crude oil and product purchases. Effective January 1, 2006, these purchases/sales were recorded on a net basis with no resulting impact on net income.

The information in the Summary Statement of Income, the Summary Balance Sheet, and the Summary Statement of Cash Flows, shown on pages 38 through 40, is a replication of the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cashflows in ExxonMobil’s 2007 Proxy Statement. For complete consolidated financial statements, including notes, please refer to Appendix A of ExxonMobil’s 2007 Proxy Statement. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in Appendix A of the 2007 Proxy Statement.


S U M M a R Y b a l a N C E S H E E T aT Y E a R E N d

(millions of dollars) 2006 2005 assetsCurrent assets Cash and cash equivalents 28,244 28,671 Cash and cash equivalents – restricted 4,604 4,604 Notes and accounts receivable, less estimated doubtful amounts 28,942 27,484 Inventories Crude oil, products and merchandise 8,979 7,852 Materials and supplies 1,735 1,469 Prepaid taxes and expenses 3,273 3,262 Total current assets 75,777 73,342 Investments and advances 23,237 20,592Property, plant and equipment, at cost, less accumulated depreciation and depletion 113,687 107,010Other assets, including intangibles – net 6,314 7,391 Total assets 219,015 208,335

liabilitiesCurrent liabilities Notes and loans payable 1,702 1,771 Accounts payable and accrued liabilities 39,082 36,120 Income taxes payable 8,033 8,416 Total current liabilities 48,817 46,307 Long-term debt 6,645 6,220Postretirement benefits reserves 13,931 10,220Accrued liabilities 7,116 6,434Deferred income tax liabilities 20,851 20,878Deferred credits and other long-term obligations 4,007 3,563Equity of minority and preferred shareholders in affiliated companies 3,804 3,527 Total liabilities 105,171 97,149

Commitments and Contingencies(1)

Shareholders’ EquityCommon stock without par value (9,000 million shares authorized, 8,019 million shares issued) 4,786 4,477Earnings reinvested 195,207 163,335Accumulated other nonowner changes in equity Cumulative foreign exchange translation adjustment 3,733 979 Postretirement benefits reserves adjustment (6,495) – Minimum pension liability adjustment – (2,258)Common stock held in treasury (2,290 million shares in 2006 and 1,886 million shares in 2005) (83,387) (55,347) Total shareholders’ equity 113,844 111,186 Total liabilities and shareholders’ equity 219,015 208,335 (1) For more information, please refer to Note 15 of ExxonMobil’s 2007 Proxy Statement.

The information in the Summary Statement of Income, the Summary Balance Sheet, and the Summary Statement of Cash Flows, shown on pages 38 through 40, is a replication of the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil’s 2007 Proxy Statement. For complete consolidated financial statements, including notes, please refer to Appendix A of ExxonMobil’s 2007 Proxy Statement. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in Appendix A of the 2007 Proxy Statement.


S U M M a R Y S TaT E M E N T O F C a S H F l O w S

(millions of dollars) 2006 2005 2004 Cash Flows from Operating activitiesNet income Accruing to ExxonMobil shareholders 39,500 36,130 25,330 Accruing to minority and preferred interests 1,051 799 776Adjustments for noncash transactions Depreciation and depletion 11,416 10,253 9,767 Deferred income tax charges/(credits) 1,717 (429) (1,134) Postretirement benefits expense in excess of/(less than) payments (1,787) 254 886 Accrued liability provisions in excess of/(less than) payments (666) 398 806Dividends received greater than/(less than) equity in current earnings of equity companies (579) (734) (1,643)Changes in operational working capital, excluding cash and debt Reduction/(increase) – Notes and accounts receivable (181) (3,700) (472) – Inventories (1,057) (434) (223) – Prepaid taxes and expenses (385) (7) 11 Increase/(reduction) – Accounts and other payables 1,160 7,806 6,333Net (gain) on asset sales (1,531) (1,980) (268)All other items – net 628 (218) 382 Net cash provided by operating activities 49,286 48,138 40,551

Cash Flows from investing activitiesAdditions to property, plant and equipment (15,462) (13,839) (11,986)Sales of subsidiaries, investments and property, plant and equipment 3,080 6,036 2,754Increase in restricted cash and cash equivalents – – (4,604)Additional investments and advances (2,604) (2,810) (2,287)Collection of advances 756 343 1,213 Net cash used in investing activities (14,230) (10,270) (14,910)

Cash Flows from Financing activitiesAdditions to long-term debt 318 195 470Reductions in long-term debt (33) (81) (562)Additions to short-term debt 334 377 450Reductions in short-term debt (451) (687) (2,243)Additions/(reductions) in debt with less than 90-day maturity (95) (1,306) (66)Cash dividends to ExxonMobil shareholders (7,628) (7,185) (6,896)Cash dividends to minority interests (239) (293) (215)Changes in minority interests and sales/(purchases) of affiliate stock (493) (681) (215)Tax benefits related to stock-based awards 462 – –Common stock acquired (29,558) (18,221) (9,951)Common stock sold 1,173 941 960 Net cash used in financing activities (36,210) (26,941) (18,268) Effects of exchange rate changes on cash 727 (787) 532 Increase/(decrease) in cash and cash equivalents (427) 10,140 7,905Cash and cash equivalents at beginning of year 28,671 18,531 10,626 Cash and cash equivalents at end of year 28,244 28,671 18,531 The information in the Summary Statement of Income, the Summary Balance Sheet, and the Summary Statement of Cash Flows, shown on pages 38 through 40, is a replication of the information in the Consolidated Statement of Income, Consolidated Balance Sheet, and the Consolidated Statement of Cash Flows in ExxonMobil’s 2007 Proxy Statement. For complete consolidated financial statements, including notes, please refer to Appendix A of ExxonMobil’s 2007 Proxy Statement. See also Management’s Discussion and Analysis of Financial Condition and Results of Operations and other information in Appendix A of the 2007 Proxy Statement.


d i V i d E N d a N d S H a R E H O l d E R R E T U R N i N F O R M aT i O N

2006 2005 2004 2003 2002 Net income per common share (dollars) 6.68 5.76 3.91 3.24 1.69Net income per common share – assuming dilution (dollars) 6.62 5.71 3.89 3.23 1.68 dividends per common share (dollars)

First quarter 0.32 0.27 0.25 0.23 0.23 Second quarter 0.32 0.29 0.27 0.25 0.23 Third quarter 0.32 0.29 0.27 0.25 0.23 Fourth quarter 0.32 0.29 0.27 0.25 0.23 Total 1.28 1.14 1.06 0.98 0.92 dividends per share growth (annual percent) 12.3 7.5 8.2 6.5 1.1 Number of common shares outstanding (millions)

Average 5,913 6,266 6,482 6,634 6,753 Average – assuming dilution 5,970 6,322 6,519 6,662 6,803 Year end 5,729 6,133 6,401 6,568 6,700 Cash dividends paid on common stock (millions of dollars) 7,628 7,185 6,896 6,515 6,217Cash dividends paid to net income (percent) 19 20 27 30 54Cash dividends paid to cash flow (1) (percent) 15 15 17 23 29 Total return to shareholders (2) (annual percent) 39.2 11.7 27.9 20.5 (8.9) Market quotations for common stock (dollars)

High 79.00 65.96 52.05 41.13 44.58 Low 56.42 49.25 39.91 31.58 29.75 Average daily close 65.35 58.24 45.29 36.14 37.70 Year-end close 76.63 56.17 51.26 41.00 34.94 (1) Net cash provided by operating activities.(2) Total return to shareholders is the appreciation of the stock price over a year plus the value of the dividends, with dividend reinvestment, and excluding

trading commissions and taxes.


R E S E R V E S S U M M a R Y – Net Proved Developed and Undeveloped Reserves(1)

2006 2005 2004 2003 2002 liquids, including Oil Sands and Non-Consolidated Reserves (1) (millions of barrels at year end)

Net proved developed and undeveloped reserves United States 2,177 2,424 2,894 3,218 3,352 Canada(1) 1,552 1,701 1,848 1,975 2,085 Europe 750 886 1,029 1,204 1,359 Africa 2,266 2,527 2,654 2,742 2,626 Asia Pacific/Middle East 2,765 1,908 1,688 1,383 1,372 Russia/Caspian 1,766 1,798 1,922 1,822 1,302 Other 433 451 478 512 527 Total worldwide, excluding year-end price/cost effects 11,709 11,695 12,513 12,856 12,623 Year-end price/cost effects (141) (466) (862) – –Total worldwide 11,568 11,229 11,651 12,856 12,623 Natural gas, including Non-Consolidated Reserves (billions of cubic feet at year end)

Net proved developed and undeveloped reserves United States 10,231 11,362 10,578 11,424 12,239 Canada 1,485 1,735 1,979 2,341 2,882 Europe 18,847 20,575 21,916 23,849 24,336 Africa 986 841 771 583 436 Asia Pacific/Middle East 31,878 26,662 19,938 13,993 13,467 Russia/Caspian 2,103 2,173 1,989 1,934 1,671 Other 467 619 769 645 687 Total worldwide, excluding year-end price/cost effects 65,997 63,967 57,940 54,769 55,718 Year-end price/cost effects 1,563 2,940 2,422 – –Total worldwide 67,560 66,907 60,362 54,769 55,718 Reserves replacement ratio, excluding asset sales (2) (percent) 129 129 125 107 118Reserves replacement ratio, including asset sales (2) (percent) 122 112 112 105 117Reserves replacement ratio, including asset sales and year-end price/cost effects (percent) 128 143 83 NA NA

(1) ExxonMobil has significant interest in proven oil-sands reserves in Canada. Please see Frequently Used Terms on pages 44 and 45 for the definition of liquids and natural gas proved reserves.

(2) Excluding year-end effects associated with using December 31 prices and costs.

l E a d i N g R E S E R V E S b a S E

ExxonMobil has added over 18 billion oil-equivalent barrels to proved reserves over the last 10 years, more than replacing production. ExxonMobil’s proved reserve base of 22.7 billion oil-equivalent barrels equates to a reserve life, at current production rates, of 14.2 years.

For:


File name:

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Last updated:

2006 ExxonMobil SAR

Production notes:

S42A 06XOMAR-ProvResReplc.eps

S42A


DATA as of 02/08/2006: DATA as of 02/23/2006:

Liquids Gas"95" 1018 757"96" 1495 566"97" 1371 874"98" 1581 531"99" 1211 494"00" 1268 543"01" 1068 718"02" 1226 675"03" 1161 536"04" 724 1264"05" 326 1665“06” 1076 978

Production"95" 1.600"96" 1.624"97" 1.631"98" 1.599"99" 1.604"00" 1.624"01" 1.611"02" 1.608"03" 1.587"04" 1.591"05" 1.539“06” 1.598

0

500

1000

1500

2000

2500Gas

Liquids

“06”0504030201009998979695

0.0

0.5

1.0

1.5

2.0

2.5Production

“06”0504030201009998979695


2.5

2.0

1.5

1.0

0.5

0

P R O V E D R E S E R V E S R E P L A C E M E N T ( 1 ) ( 2 )

(billions of oil-equivalent barrels)

Liquids Additions Gas Additions Production

04 05030201009998979695

(1) Excludes asset sales and year-end price/cost effects.(2) See Frequently Used Terms on pages 44 and 45.

06

!STAND-ALONECHART

(Not in F&O)


V O l U M E S S U M M a R Y 2006 2005 2004 2003 2002 Net production of crude oil and natural gas liquids (thousands of barrels daily)

United States 414 477 557 610 681 Non-U.S. 2,267 2,046 2,014 1,906 1,815 Total worldwide 2,681 2,523 2,571 2,516 2,496Net natural gas production available for sale (millions of cubic feet daily)

United States 1,625 1,739 1,947 2,246 2,375 Non-U.S. 7,709 7,512 7,917 7,873 8,077 Total worldwide 9,334 9,251 9,864 10,119 10,452 (thousands of oil-equivalent barrels daily)

Oil-equivalent production(2) 4,237 4,065 4,215 4,203 4,238

Refinery throughput (thousands of barrels daily)

United States 1,760 1,794 1,850 1,806 1,834 Non-U.S. 3,843 3,929 3,863 3,704 3,609 Total worldwide 5,603 5,723 5,713 5,510 5,443petroleum product sales (3)

United States 2,729 2,822 2,872 2,729 2,731 Non-U.S. 4,518 4,697 5,338 5,228 5,026 Purchases/sales with same counterparty included above – – (699) (687) (682) Total worldwide 7,247 7,519 7,511 7,270 7,075 Gasoline, naphthas 2,866 2,957 3,301 3,238 3,176 Heating oils, kerosene, diesel 2,191 2,230 2,517 2,432 2,292 Aviation fuels 651 676 698 662 691 Heavy fuels 682 689 659 638 604 Specialty products 857 967 1,035 987 994 Purchases/sales with same counterparty included above – – (699) (687) (682) Total worldwide 7,247 7,519 7,511 7,270 7,075Chemical prime product sales (thousands of metric tons)

United States 10,703 10,369 11,521 10,740 11,386 Non-U.S. 16,647 16,408 16,267 15,827 15,220 Total worldwide 27,350 26,777 27,788 26,567 26,606

(2) Gas converted to oil-equivalent at 6 million cubic feet = 1 thousand barrels. (3) 2006 and 2005 petroleum product sales data is reported net of purchases/sales with the same counterparty.

b U S i N E S S p R O F i l E (1)

Earnings After Capital and Average Capital Return on Average Income Taxes Exploration Expenditures Employed Capital Employed 2006 2005 2004 2006 2005 2004 2006 2005 2004 2006 2005 2004(millions of dollars, except as noted) (percent)

Upstream United States 5,168 6,200 4,948 2,486 2,142 1,922 13,940 13,491 13,355 37.1 46.0 37.0 Non-U.S. 21,062 18,149 11,727 13,745 12,328 9,793 43,931 39,770 37,287 47.9 45.6 31.5 Total 26,230 24,349 16,675 16,231 14,470 11,715 57,871 53,261 50,642 45.3 45.7 32.9downstream United States 4,250 3,911 2,186 824 753 775 6,456 6,650 7,632 65.8 58.8 28.6 Non-U.S. 4,204 4,081 3,520 1,905 1,742 1,630 17,172 18,030 19,541 24.5 22.6 18.0 Total 8,454 7,992 5,706 2,729 2,495 2,405 23,628 24,680 27,173 35.8 32.4 21.0Chemical United States 1,360 1,186 1,020 280 243 262 4,911 5,145 5,246 27.7 23.1 19.4 Non-U.S. 3,022 2,757 2,408 476 411 428 8,272 8,919 9,362 36.5 30.9 25.7 Total 4,382 3,943 3,428 756 654 690 13,183 14,064 14,608 33.2 28.0 23.5Corporate and financing 434 (154) (479) 139 80 75 27,891 24,956 14,916 – – –ExxonMobil total 39,500 36,130 25,330 19,855 17,699 14,885 122,573 116,961 107,339 32.2 31.3 23.8

(1) For definitions of selected financial performance measures, see Frequently Used Terms on pages 44 and 45.


Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other terms. These definitions are provided to facilitate understanding of the terms and their calculation.

C a S H F l O w F R O M O p E R a T i O N S a N d a S S E T S a l E SCash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds from sales of subsidiaries, investments, and property, plant, and equipment from the Summary Statement of Cash Flows. This cash flow is the total sources of cash from both operating the Corporation’s assets and from the divesting of assets. The Corporation employs a long-standing and regular disciplined review process to ensure that all assets are contributing to the Corporation’s strategic and financial objectives. Assets are divested when they are no longer meeting these objectives, or are worth considerably more to others. Because of the regular nature of this activity, we believe it is useful for investors to consider sales proceeds together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

(millions of dollars) 2006 2005 2004 Net cash provided by operating activities 49,286 48,138 40,551Sales of subsidiaries, investments and property, plant, and equipment 3,080 6,036 2,754 Cash flow from operations and asset sales 52,366 54,174 43,305

C a p i T a l E M p l O Y E dCapital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the businesses, it includes ExxonMobil’s net share of property, plant, and equipment and other assets less liabilities, excluding both short-term and long-term debt. When viewed from the perspective of the sources of capital employed in total for the Corporation, it includes ExxonMobil’s share of total debt and shareholders’ equity. Both of these views include ExxonMobil’s share of amounts applicable to equity companies, which the Corporation believes should be included to provide a more comprehensive measure of capital employed.

(millions of dollars) 2006 2005 2004 business uses: asset and liability perspectiveTotal assets 219,015 208,335 195,256Less liabilities and minority share of assets and liabilities Total current liabilities excluding notes and loans payable (47,115) (44,536) (39,701) Total long-term liabilities excluding long-term debt and equity of minority and preferred shareholders in affiliated companies (45,905) (41,095) (41,554) Minority share of assets and liabilities (4,948) (4,863) (5,285)Add ExxonMobil share of debt-financed equity-company net assets 2,808 3,450 3,914 Total capital employed 123,855 121,291 112,630

Total corporate sources: debt and equity perspectiveNotes and loans payable 1,702 1,771 3,280Long-term debt 6,645 6,220 5,013Shareholders’ equity 113,844 111,186 101,756Less minority share of total debt (1,144) (1,336) (1,333)Add ExxonMobil share of equity-company debt 2,808 3,450 3,914 Total capital employed 123,855 121,291 112,630

C a p i T a l a N d E x p l O R a T i O N E x p E N d i T U R E S ( C a p e x )Capital and exploration expenditures are the combined total of additions at cost to property, plant, and equipment and exploration expenses on a before-tax basis from the Consolidated Statement of Income. ExxonMobil’s Capex includes its share of similar costs for equity companies. Capex excludes depreciation on the cost of exploration support equipment and facilities recorded to property, plant, and equipment when acquired. While ExxonMobil’s management is responsible for all investments and elements of net income, particular focus is placed on managing the controllable aspects of this group of expenditures.

R E T U R N O N a V E R a g E C a p i T a l E M p l O Y E d ( R O C E )Return on average capital employed is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment capital employed (average of beginning- and end-of-year amounts). These segment earnings include ExxonMobil’s share of segment earnings of equity companies, consistent with the Corporation’s definition of capital employed and exclude the cost of financing. The Corporation’s total ROCE is net income excluding the after-tax cost of financing, divided by total corporate average capital employed. The Corporation has consistently applied its ROCE definition for many

Frequently Used Terms


years and views it as the best measure of historical capital productivity in our capital-intensive, long-term industry, both to evaluate management’s performance and to demonstrate to shareholders that capital has been used wisely over the long term. Additional measures, which tend to be more cash-flow based, are used to make investment decisions.

(millions of dollars) 2006 2005 2004 Net income 39,500 36,130 25,330Financing costs (after tax) Third-party debt 44 (1) (137) ExxonMobil share of equity companies (156) (144) (185) All other financing costs – net 191 (295) 54 Total financing costs 79 (440) (268) Earnings excluding financing costs 39,421 36,570 25,598 Average capital employed 122,573 116,961 107,339Return on average capital employed – corporate total 32.2% 31.3% 23.8%

l i q U i d S a N d N a T U R a l g a S p R O V E d R E S E R V E SIn this report, we use the term “proved reserves” to mean quantities of oil and gas that ExxonMobil has determined to be reasonably certain of recovery under existing economic and operating conditions on the basis of our long-standing, rigorous management review process. We only book proved reserves when we have made significant funding commitments for the related projects. In this report, we aggregate proved reserves of consolidated and equity companies, excluding royalties and quantities due others, since ExxonMobil does not view these reserves differently from a management perspective. To reflect management’s view of ExxonMobil’s total liquids reserves, proved reserves in this report also include oil-sands reserves from Canadian Syncrude operations, which are reported separately as mining reserves in our Form 10-K and proxy statement. Oil-sands reserves included in this report totaled 718 million barrels in 2006, 738 million barrels at year-end 2005, 757 million barrels at year-end 2004, 781 million barrels at year-end 2003, and 800 million barrels at year-end 2002. For our own management purposes and as discussed in this report, we determine proved reserves based on price and cost assumptions that are consistent with those used to make investment decisions. Therefore, the proved reserves in this report are not directly comparable to the data reported in our Form 10-K and proxy statement. Based on regulatory guidance, ExxonMobil began in 2004 to state our results in the Form 10-K and proxy statement to reflect the impacts on proved reserves of utilizing December 31 liquids and natural gas prices (“year-end price/cost effects”). On this basis, year-end proved reserves, including year-end price/cost effects, totaled 22.8 billion oil-equivalent barrels in 2006, 22.4 billion oil-equivalent barrels in 2005 and 21.7 billion oil-equivalent barrels in 2004. Excluding year-end price/cost effects, 2006 proved reserves totaled 22.7 billion oil-equivalent barrels, 2005 proved reserves totaled 22.4 billion oil-equivalent barrels, while 2004 proved reserves totaled 22.2 billion oil-equivalent barrels.

R E S O U R C E S , R E S O U R C E b a S E , a N d R E C O V E R a b l E R E S O U R C E SResources, resource base, recoverable oil, recoverable hydrocarbons, recoverable resources, and similar terms used in this report are the total remaining estimated quantities of oil and gas that are expected to be ultimately recoverable. In addition to proved reserves, the resource base includes quantities of oil and gas that are not yet classified as proved reserves, but which ExxonMobil believes will likely be moved into the proved reserves category and produced in the future.

p R O V E d R E S E R V E S R E p l a C E M E N T R a T i OProved reserves replacement ratio is a performance measure that is calculated using proved oil-equivalent reserves additions divided by oil-equivalent production. Both proved reserves additions and production include amounts applicable to equity companies. The ratio usually reported by ExxonMobil excludes sales and year-end price/cost effects, and includes Canadian oil-sands mining operations in both additions and production volumes. See the definition of “liquids and natural gas proved reserves” above.

F i N d i N g a N d R E S O U R C E - a C q U i S i T i O N C O S T SFinding and resource-acquisition costs per oil-equivalent barrel is a performance measure that is calculated using the Exploration portion of Upstream capital and exploration expenditures and proved property acquisition costs divided by resource additions (in oil-equivalent barrels). ExxonMobil refers to new discoveries and acquisitions of discovered resources as resource additions. In addition to proved reserves, resource additions include quantities of oil and gas that are not yet classified as proved reserves, but which ExxonMobil believes will likely be moved into the proved reserves category and produced in the future.

2006 2005 2004 Exploration portion of Upstream capital and exploration expenditures (millions of dollars) 2,044 1,693 1,283Proved property acquisition costs (millions of dollars) 234 174 93Total exploration and proved property acquisition costs (millions of dollars) 2,278 1,867 1,376Resource additions (millions of oil-equivalent barrels) 4,270 4,365 2,940Finding and resource-acquisition costs per oil-equivalent barrel (dollars) 0.53 0.43 0.47


Clockwise, starting at left: Reatha Clark King, William R. Howell, William W. George, Walter V. Shipley, James R. Houghton, J. Stephen Simon, Henry A. McKinnell, Jr., Samuel J. Palmisano, Philip E. Lippincott, Rex W. Tillerson, Marilyn Carlson Nelson, Michael J. Boskin

b O a R d O F d i R E C T O R S

Michael J. Boskin . . . . . . . T .M . Friedman Professor of Economics and Senior Fellow, Hoover Institution, Stanford University

William W. George . . . . . . Professor of Management Practice, Harvard Business School . Former Chairman and Chief Executive Officer, Medtronic, Inc . (a medical technology company)

James R. Houghton . . . . . Chairman of the Board, Corning Incorporated (communications, advanced materials and display products)

William R. Howell . . . . . . . Chairman Emeritus, J .C . Penney Company, Inc . (department store and catalog chain)

Reatha Clark King . . . . . . Former Chairman of the Board of Trustees, General Mills Foundation, the philanthropic foundation of General Mills, Inc . (manufacturer and marketer of consumer food products)

Philip E. Lippincott . . . . . Retired Chairman and Chief Executive Officer, Scott Paper Company (sanitary paper, printing and publishing papers, and forestry operations); Retired Chairman of the Board, Campbell Soup Company (manufacturer and marketer of branded convenience food products)

Henry A. McKinnell, Jr. . Retired Chairman of the Board and Chief Executive Officer, Pfizer Inc (pharmaceuticals)

Marilyn Carlson Nelson . Chairman and Chief Executive Officer, Carlson Companies, Inc . (travel, hotel, restaurant, cruise, and marketing services)

Samuel J. Palmisano . . . . Chairman of the Board, President, and Chief Executive Officer, International Business Machines Corporation (computer hardware, software, business consulting, and information technology services)

Walter V. Shipley . . . . . . . . Retired Chairman of the Board, The Chase Manhattan Corporation and The Chase Manhattan Bank (banking and finance)

J. Stephen Simon . . . . . . . Senior Vice President

Rex W. Tillerson . . . . . . . . Chairman and Chief Executive Officer

Directors, Officers, and Affiliated Companies


S T a N d i N g C O M M i T T E E S O F T H E b O a R d

Audit Committee J .R . Houghton (Chair), M .J . Boskin, W .R . Howell, R .C . King, P .E . Lippincott

Board Advisory Committee on Contributions M .C . Nelson (Chair), W .W . George, W .R . Howell, H .A . McKinnell, Jr ., W .V . Shipley

Board Affairs Committee W .V . Shipley (Chair), W .W . George, P .E . Lippincott, H .A . McKinnell, Jr ., S .J . Palmisano

Compensation Committee W .R . Howell (Chair), W .W . George, R .C . King, S .J . Palmisano, W .V . Shipley

O F F i C E R S

R.W. Tillerson . . . . . . . . . . . Chairman of the Board*

D.D. Humphreys . . . . . . . . Senior Vice President and Treasurer*

S.R. McGill . . . . . . . . . . . . . Senior Vice President*

J.S. Simon . . . . . . . . . . . . . . Senior Vice President*

L.J. Cavanaugh . . . . . . . . . Vice President – Human Resources

A.T. Cejka . . . . . . . . . . . . . . Vice President*

K.P. Cohen . . . . . . . . . . . . . Vice President – Public Affairs

H.R. Cramer . . . . . . . . . . . . Vice President*

M.J. Dolan . . . . . . . . . . . . . . Vice President*

M.E. Foster . . . . . . . . . . . . . Vice President*

H.H. Hubble . . . . . . . . . . . . Vice President – Investor Relations and Secretary*

G.L. Kohlenberger . . . . . . Vice President*

C.W. Matthews . . . . . . . . . Vice President and General Counsel*

P.T. Mulva . . . . . . . . . . . . . . . Vice President and Controller*

R.D. Nelson . . . . . . . . . . . . . Vice President – Washington Office

S.D. Pryor . . . . . . . . . . . . . . Vice President*

J.M. Spellings . . . . . . . . . . General Manager – Corporate Planning

S.K. Stuewer . . . . . . . . . . . Vice President – Safety, Health and Environment

P.E. Sullivan . . . . . . . . . . . . Vice President and General Tax Counsel*

A.P. Swiger . . . . . . . . . . . . . Vice President*

F U N C T i O N a l a N d S E R V i C E O R g a N i z a T i O N S

Upstream

A.T. Cejka . . . . . . . . .President, ExxonMobil Exploration Company*

M.W. Albers . . . . . . .President, ExxonMobil Development Company*

M.E. Foster . . . . . . . .President, ExxonMobil Production Company*

A.P. Swiger . . . . . . . .President, ExxonMobil Gas & Power Marketing Company*

S.M. Cassiani . . . . . .President, ExxonMobil Upstream Research Company

downstream

S.D. Pryor . . . . . . . . .President, ExxonMobil Refining & Supply Company*

H.R. Cramer . . . . . . .President, ExxonMobil Fuels Marketing Company*

G.L. Kohlenberger . .President, ExxonMobil Lubricants & Petroleum Specialties Company*

R.V. Pisarczyk . . . . .President, ExxonMobil Research and Engineering Company

Chemical

M.J. Dolan . . . . . . . . .President, ExxonMobil Chemical Company*

Other

T.J. Hearn . . . . . . . . .Chairman of the Board, Imperial Oil Limited

T.R. Walters . . . . . . .President, ExxonMobil Global Services Company

* Required to file reports under Section 16 of the Securities Exchange Act of 1934.

Finance Committee R .W . Tillerson (Chair), M .J . Boskin, J .R . Houghton, P .E . Lippincott, M .C . Nelson, S .J . Palmisano

Public Issues Committee M .J . Boskin (Chair), J .R . Houghton, R .C . King, H .A . McKinnell, Jr ., M .C . Nelson

Executive Committee R .W . Tillerson (Chair), J .R . Houghton, W .R . Howell, P .E . Lippincott, M .C . Nelson


S H a R E H O l d E R S E R V i C E S

Shareholder inquiries should be addressed to ExxonMobil Shareholder Services at Computershare Trust Company, N.A., ExxonMobil’s transfer agent:

ExxonMobil Shareholder Services P.O. Box 43078 Providence, RI 02940-3078

1-800-252-1800 (Within the continental U.S. and Canada)

1-781-575-2300 (Outside the continental U.S. and Canada)

An automated voice-response system is available 24 hours a day, 7 days a week. Service representatives are available during normal business hours.

Registered shareholders can access information about their ExxonMobil stock accounts via the Internet at computershare.com/exxonmobil.

E l E C T R O N i C d E l i V E R Y O F d O C U M E N T S

Registered shareholders can receive the following online, instead of by mail:

➤ Summary Annual Report

➤ Proxy Statement

➤ Tax Documents

➤ Account Statements

S T O C K p U R C H a S E a N d d i V i d E N d R E i N V E S T M E N T p l a N

Computershare Trust Company, N.A. sponsors a stock purchase and dividend reinvestment plan, the Computershare Investment Plan for Exxon Mobil Corporation Common Stock. For more information and plan materials, go to computershare.com/exxonmobil or call or write ExxonMobil Shareholder Services.

d i V i d E N d d i R E C T d E p O S i T

Shareholders may have their dividends deposited directly into their bank accounts. If you’d like to elect this option, go to computershare.com/exxonmobil, or call or write ExxonMobil Shareholder Services for an authorization form.

E x x O N M O b i l p U b l i C a T i O N S

The publications listed below, all of which, when printed, can be found on the Internet at exxonmobil.com, are available without charge to shareholders. Requests for printed copies should be directed to ExxonMobil Shareholder Services.

➤ 2006 Summary Annual Report

➤ 2006 Annual Report on Form 10-K

➤ 2006 Financial and Operating Review, a report on ExxonMobil’s businesses, strategies, and results

➤ 2006 Corporate Citizenship Report

➤ The Lamp, a shareholder magazine with news and features about ExxonMobil’s worldwide activities

➤ Tomorrow’s Energy, a perspective on energy trends, greenhouse gas emissions, and future energy options

E l i M i N a T E a N N U a l R E p O R T M a i l i N g S

Shareholders may eliminate annual report mailings by marking their proxy card, or by writing or calling ExxonMobil Shareholder Services.

C O R p O R a T E g O V E R N a N C E

Our Corporate Governance Guidelines and related materials are available by selecting Investor Information on our Web site at exxonmobil.com.

E x E C U T i V E C E R T i F i C a T i O N S

ExxonMobil has included, as Exhibits 31 and 32 to its 2006 Annual Report on Form 10-K filed with the Securities and Exchange Commission, certificates of the chief executive officer, principal accounting officer, and principal financial officer of the Corporation regarding the quality of the Corporation’s public disclosure. The Corporation has also submitted to the New York Stock Exchange (NYSE) a certificate of the CEO certifying that he is not aware of any violation by the Corporation of NYSE corporate governance listing standards.

ExxonMobil offers its shareholders a wide range of services and several ways to access important company information.

Investor Information

exxonmobil.com

E x x O N M O b i l O N T H E i N T E R N E T

A quick, easy way to get information about ExxonMobil ExxonMobil publications and important shareholder information are available on the Internet at exxonmobil.com:

➤ Shareholder Publications

➤ Stock Prices

➤ Dividend Information

➤ Contact Information

➤ Shareholder Issues

➤ Press Releases

➤ Management Presentations

➤ Economic and Energy Outlook

➤ Corporate Governance Guidelines


Corporate Headquarters Exxon Mobil Corporation 5959 Las Colinas Boulevard Irving, TX 75039-2298

Additional copies may be obtained by writing or phoning: Phone: 972-444-1000 Fax: 972-444-1505

Shareholder Relations Exxon Mobil Corporation P.O. Box 140369 Irving, TX 75014-0369

Market Information The New York Stock Exchange is the principal exchange on which Exxon Mobil Corporation common stock (symbol XOM) is traded.

Annual Meeting The 2007 Annual Meeting of Shareholders will be held at 9:00 a.m. Central Time on Wednesday, May 30, 2007, at:

The Morton H. Meyerson Symphony Center 2301 Flora Street Dallas, Texas 75201

The meeting will be audiocast live on the Internet. Instructions for listening to this audiocast will be available on the Internet at exxonmobil.com approximately one week prior to the event.

Included in this Summary Annual Report are financial and operating highlights and summary financial statements. For complete financial statements, including notes, please refer to the Proxy Statement for ExxonMobil’s 2007 Annual Meeting. The Proxy Statement also includes Management’s Discussion and Analysis of Financial Condition and Results of Operations. The Investor Information section of ExxonMobil’s Web site (exxonmobil.com), contains the Proxy Statement and other company publications, including ExxonMobil’s Financial and Operating Review. These publications provide additional detail about the company’s global operations.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, and Esso. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Abbreviated references describing global or regional operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships. The following are trademarks, service marks, or proprietary process names of Exxon Mobil Corporation or one of its affiliates: Esso, Exxon, Mobil, On the Run, Mobil 1, Mobil 1 ESP, and Taking on the World’s Toughest Energy Challenges. The following third party trademarks or service marks, referenced in the text of the report are owned by the entities indicated: NASCAR (National Association for Stock Car Auto Racing, Inc.), American Le Mans (Automobile Club De L’ouest, A.C.O.), Formula 1 (Formula One Licensing B.V.), Tesco (Tesco Stores Limited), Doutor (Kabushiki Kaisha Doutor Coffee, dba Doutor Coffee Co., Ltd.), 7-Eleven (7-Eleven, Inc.), NTUC Fairprice (NTUC Fairprice Co-Operative Ltd.), Tim Hortons (The TDL Group Ltd.), Porsche (Dr. Ing. H.c.F. Porsche AG).

General Information

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exxonmobil.com

Printed entirely on recycled paper

Annual Report 002CS-10277