Exxon Nets $9.3B Profit In First Quarter

Oil Giant Says Net Income Grew 10 Percent, But Revenue Fell Short Of Forecasts

(AP)  The market price for crude oil was off more than $5 a barrel in the first quarter versus a year ago. The comparable price for natural gas also was down.

Exxon Mobil said oil production in the first three months of 2007 was slightly higher than a year ago, helped in part by increased production from projects in West Africa, Russia and the Middle East.

Natural gas production, however, was off from last year, hampered by mature field declines and lower European demand related to weather.

In a conference call with analysts, Henry Hubble, Exxon Mobil's vice president of investor relations, said the company continued to work toward turning over operational control of a joint venture project in Venezuela to its partner, Petroleos de Venezuela SA, Venezuela's government-controlled oil company. Earlier this year, Venezuelan President Hugo Chavez ordered by decree the takeover of oil projects run by foreign oil companies in the oil-rich Orinoco River region. He promised to occupy the fields in the region and fly the national flag over them by May 1.

But Hubble said discussions continue over the ownership stake of its Venezuelan operations. BP, Chevron Corp., ConocoPhillips, France's Total SA and Norway's Statoil ASA also have projects in the country.

"Those negotiations are continuing and will be for some time," Hubble said. He declined to speculate whether Exxon Mobil would continue to do business in Venezuela after such discussions are finished.

On the refining and marketing side of the business — known as the downstream — Exxon Mobil's earnings rose to $1.9 billion from $1.3 billion to start 2006, lifted by improved refining and marketing margins and more efficient refining operations.

A company's refining margin is the difference between what it costs to refine crude oil and what the company makes selling refined products, such as gasoline and jet fuel.

Exxon Mobil said it also saw improved profit margins at its chemicals business, where earnings of $1.2 billion were up from nearly $1 billion in the year-ago quarter.

During the first quarter, Exxon Mobil said it bought 108 million shares of its common stock at a cost of $8 billion. Shares outstanding were reduced from roughly 5.7 billion from at the end of 2006 to 5.6 billion at the end of March.

Exxon Mobil said it ended the first quarter with $34.6 billion in cash and $8.8 billion in debt.

[thize1]

The oil companies will continue to milk the consumer until we vote out the big business politicians (i.e. Republicans). It's strange how the price of gas goes up because of the shortage of oil, the lack of refining capacity, etc. and also increases because we use less and drive more fuel efficient cars. There is no pricing based on the law of supply and demand in the oil business. The price will continue to increase regardless whether oil is available or not. Our Bill of Rights should include "We have the right to be ripped off by the oil companies!".

[king77shaw]

for many Americans, little things like growing your own food or buying local food, heating with wood in the winter, buying hybrids, solar PV panels etc ... will all help - it's obvious why our government is against these measures, just look at these obsene EM profits - the Republican party in particular is owned by big oil and exists to represent them and not "we the people" ... the answer lies in the decentralization of power, both energy-wise and politically ... take matters into your own hands and strive for a higher level of self suffiency ... it will cost more in the short term but will ultimately achieve a higher level of security than the fascists running the show now can offer ... cancel your cable TV while you're at it ...

[afmca]

It is not so much that oil is a non-renewable resource as it is Bush's term in office that is non-renewable. Rove, Cheney, etal were hoping to create a permanent one party dictatorship where big oil could extort money for decades - now that it looks like they have less than 2 years they really have to start inflating the prices now.

[huanaco]

WELL, THE OIL COMPANIES HAVE TO BE HAPPY WITH THIS RETURNS, GOD BLESS MR. BONZO BUSH, CREATING THIS CHAOTIC TIMES WITH A WAR UNCALLED, MORE PROBLEMS WITH IRAN , BOTH COUNTRIES IMPORTANT SOURCES OF OIL HE HAS ACCOMPLISHED WHAT HIS PATRONS ASKED TO DO, INFLATE THE BARREL PRICE. WE CAN,T FORGET THAT THE BUSH FAMILY HAVE A LONG TRADITION TO SERVE THE SAUDI ARABS INTERESTS.

[olebd]

It's not going to get any better because China and India are slurping up more and more gas and oil each year as they grow an grow. We are indirectly fueling their increased consuption just by buying all the products and/or services produced over in their countries. Thank our greedy administration and politicians for their part in allowing our goods to be produced by them too.

[jebby_one]

BTW ...

regarding that ...

"$9 for a little tiny box of cereal at the grocery store"

-----------

if the price of fuel doubles, the 4 cents worth of wheat or corn in that tiny box of cereal will go up to 8 cents. The end result, though will be a tripling of the end product price. But, people like me will find a way to bypass the traditional distribution process. Heck, I may even drive my Prius to the farm and offer the farmer 16 cents for that corn or wheat.

[jebby_one]

" ...They think just because they have a little tiny car that gets great mileage that gas prices won't affect them. They can't even think outside their little tiny box of a life for one minute. Gas prices affect EVERYTHING..."

----------------

?? I have a pretty rich life and my Prius isn't so much a tiny car as it is a hi-tech car. Our Prius compares to our Maxima like our 40 pound flat-screen Sony TV compares to our 80 pound CRT Sony TV. They are both good cars but the Prius is by far the most technologically advanced and the most fuel efficient.

Of course we realize that the price of gas affects almost everything. but, it's not ME thinking inside my small box. The ones thinking inside their tiny boxes are the idiots who fail to see that efficient transportation can reduce the cost of their products or services and thus increase their market share or profit.

[patb071]

Not getting gas on Fridays only means 1 thing. buy it on saturday where you have to burn fuel to get fuel, Thats why people buy gas on there way from work on fridays to have it for the weekend. You want to help. Stop idling at mcdonalds drive thru and learn to cook. That would also mean when you are hungary you don't drive to a fastfood restraunt, u eat at home.

[patb071]

We are taking a resource from our earth that isn't being reproduced. The oil companys know that we will run out, They are collecting as fast and as much as possible. If they were smart they would take that money and develope a new energy source and start profiting from that too!

[shanev137]

People are so stupid.

They think just because they have a little tiny car that gets great mileage that gas prices won't affect them. They can't even think outside their little tiny box of a life for one minute. Gas prices affect EVERYTHING. They affect the price you pay for every commodity that needs to be transported and most services that required travel. It going to be freaken hilarious when everyone is paying $9 for a little tiny box of cereal at the grocery store, won't it. It's almost like Americans want inflation to happen.

[edjohn66]

The only way to beat the oil companies is to make LONG TERM decisions. Not buying gas on Fridays won't work (but not buying from Exxon or Mobil might cause a fun little disruption....)

I traded in my Chevy s-10 (25 MPG) for a Kia Spectra (35 MPG) and moved from an apartment that was 30 minutes from work to one that was 10 minutes from work. I've been actively looking for a carpool partner (but haven't found one yet). I also pay an extra 2 cents a Kwh for renewable energy from my power company, so wind and hydro power companies get my cash instead of oil and gas (and coal) companies.

[heresmy2cent]

(1). BOYCOTT EXXON AND MOBIL GAS STATIONS!

(2). If possible, cut out any unnecessary car trips.

They'll get the message.

[jebby_one]

We hasve a Prius and get 50 mpg ...
... and if I milk it I can get 57 to 60 mpg.

the price of gas is really not a serious concern.

[afmca]

The censor software needs some work. I get *** for calling VP Cheney by his name .. next time I guess I will use Richard.

[afmca]

The oil companies, just like banking, insurance, power companies, and defense contractors, have just become large criminal enterprises under Republican Congressional domination. The have no rules and absolutely no responsibility. They cannot fail and they only grow by monopolizing their industry. The fix prices and manipulate the market. If prices are about to decrease they call their friends in Iran to create another false crises. Then they all sit back and laugh at our stupidity. Their profits cannot be legitimized; but the Republicans still shower them with tax breaks and exemptions. Big oil should start chiseling out a Mount Rushmore type monument in Houston .. the first three faces would be King George, his hangman *** Cheney, and the court jester Karl Rove.

[mgpm-2009]

That's what you get when you vote in an oil man. I didn't vote for him either time. My conscience is clear, but my bank account is broke. My repub husband wants to know where our money is though. I'll send him this article. Half of our money's in Iraq and the other half is at Exxon.

[jweirick1]

Why is it that all the oil companies raise their gas prices the same amount on the same day? I do believe it is called price fixing. There is nothing wrong with makeing a profit but when the profit is driven by greed soemthing has to be done. We as comsumers have to take charge, for our elected officials will not with their hands in the pockets of big oil for campaigan money and shareholders profit they are not going to rock the boat. What happen to the truckers? In the seventies and eighties there would have been a nation wide strike. The rich get richer and the poor get poorer but why there are more of use poor and middle class then rich ceo's and shareholders and rich politicans. I think the politicans want to eliminate the middle class and just have a few very rich corportations to feed the campaigan coffers so they can feed us the BS, and a nation of poor people. One day the good old United States will be come the next third world country do to the greed of the few.

[rbforcb]

My comment on the gas situation is this, every american across the country not but gas from any station on fridays. It would be a slower impact on the large oil companies but would not hurt the average american who has already sacrificed their life style to help make Exxon and Mobil richer. we could call it dry fridays till it hurts.

[feelfree1]

Exxon Mobil should be at the top of the list for war-profiteering companies whose assets should be siezed and liquidated, and used to create a reparations fund for their many victims.

Exxon Mobile has made tens of billions of dollars subsidized by the blood, treasure, and health of the American people, and people all around the world.

[harp1963]

Greed gone wild!