Exxon Announces Estimated First Quarter 1999 Results

Irving, Texas (PROTEXT) - The following was issued today byExxon Corporation (NYSE: XON):

First Quarter

1999

1998 Net Income - $ Million

1,020

1,820 Net Income - $ Per Common Share

0.42

0.74 Net Income - $ Per Common Share Assuming Dilution

0.42

0.73 Revenue - $ Million

26,884 29,964 Capital & Exploration Expenditures - $ Million

2,104

2,023 Exxon Corporation today reported first quarter 1999 net incomeof $1,020 million. Net income for the first quarter of 1999included a $120 million charge for the restructuring of Japaneseoperations, while the prior year's quarter included a $70 millioncharge relating to an accounting change. Excluding non-recurringitems, first quarter 1999 net income declined 40% to $1,140million or $0.47 per share, compared to $1,890 million or $0.76per share last year. Revenue for the first quarter of 1999 totaled $26,884 millioncompared to $29,964 million in the first quarter of 1998. Capitaland exploration expenditures were $2,104 million compared to$2,023 million in last year's first quarter. Exxon Chairman Lee R. Raymond commented as follows: "Exxon's first quarter net income was $1.0 billion. Afterexcluding non- recurring charges in both years, earnings weredown $750 million or 40%. The decline was driven by continuedweakness in crude oil prices which on average were about $2.75per barrel or 20% lower than last year's first quarter. Earningswere also adversely affected by lower natural gas prices, weakerdownstream and chemicals margins, and depressed copper and coalprices. "Crude oil prices continued to run at near 20-year lows formost of the quarter, reflecting the worldwide surplus in crudeoil supplies. Liquids production was down versus the prior yearreflecting natural field declines in some producing areas andsteps to curtail marginal volumes in the recent low priceenvironment. The first quarter production levels are consistentwith our plan for increased liquids volumes in 1999. Higher gasvolumes and reductions in exploration and production expensespartly offset the effects of lower crude and gas prices andliquids volumes. "In the downstream, refining margins and marketing marginswere significantly weaker in most geographic areas. Partlyoffsetting the lower margins were higher petroleum product sales,which achieved the highest first quarter level since 1979. "Chemicals earnings declined 18% from last year as a result oflower margins. Worldwide commodity prices continued at depressedlevels due to excess industry capacity and the slowdown in Asianeconomies. Earnings from other operations increased as lowercopper and coal prices were offset by higher production volumesand reduced operating expenses." Additional comments on earnings from the major operatingsegments follow: First Quarter 1999 vs. First Quarter 1998 Exploration and production earnings were adversely impacted bylower industry crude prices which averaged about $2.75 per barrelless than last year. Average U.S. natural gas prices were down19% and European gas prices were down 19% versus the firstquarter of 1998. Liquids production decreased to 1,564 kbd (thousand barrelsper day) compared to 1,624 kbd in the first quarter 1998,primarily due to natural field declines and steps to curtailmarginal volumes in the current low price environment. Partlyoffsetting this was production from new developments in the U.K.North Sea and Azerbaijan. Natural gas production of 7,533 mcfd(million cubic feet per day) was up 324 mcfd from 1998 due tocolder European weather. Earnings from U.S. exploration and production were $136million compared with $227 million last year. Outside the U.S.,earnings from exploration and production were $425 million,versus $683 million in the first quarter of 1998. Petroleum product sales of 5,490 kbd increased 2% from lastyear's first quarter reflecting improvements in all geographicareas. Refining margins and marketing margins were much weaker inmost markets. Total downstream results were also adverselyaffected by higher scheduled refinery maintenance in the U.S. andEurope. In the U.S., refining and marketing results were a loss of $28million, down $128 million from the prior year. Earnings fromrefining and marketing operations outside the U.S. were $274million after excluding the Japanese restructuring charge,compared with $496 million in the first quarter of 1998. Chemicals earnings were $305 million compared with $374million in the first quarter of last year. Prime product sales of4,377 kt (thousand metric tons) were 3% higher than the sameperiod last year primarily reflecting stronger demand in Europe.Margins were lower as commodity chemical prices continued atdepressed levels and were only partly offset by lower feedstockcosts. Earnings from other operations totaled $97 million, up from$89 million in the first quarter of 1998 as higher copper andcoal production volumes and lower operating expenses more thanoffset the impact of lower copper and coal prices. Corporate and financing expenses totaled $69 million comparedwith $79 million in the first quarter of last year. During thequarter, the company's operating segments continued to benefitfrom the impact of lower effective tax rates and the favorableresolution of tax related issues. During the first quarter of 1999, Exxon purchased 2.4 millionshares of its common stock for the treasury at a cost of $170million, representing a continuation of purchases to offsetshares issued in conjunction with the Company's benefit plans andprograms. Purchases are made in open market and negotiatedtransactions. As a consequence of the proposed merger of Exxonand Mobil, the repurchase program to reduce the number of Exxonshares outstanding was discontinued in December. ots OriginalText Service: Exxon Corporation Internet:http://www.newsaktuell.de Contact: Ed Burwell of ExxonCorporation (USA) 972-444-1108 Web site: http://www.exxon.com

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