This summary is based on the first quarter fiscal 2008 earnings call conducted by Exxon Mobil Corp. (XOM: chart) on May 1, 2008.

Management:

- VP of IR, Secretary: Henry Hubble

Key Investors Issues

- Net income was $10.89 billion or $2.03 a share, up 17% from the prior year.
- Total revenues increased 34.1% to $116.9 billion from $87.2 billion in the prior year on high commodity prices.
- Spending on capital and exploration projects was $5.5 billion, up 30%.
- Share purchases of $8.0 billion reduced shares outstanding by 1.8%.

First Quarter Highlights

Net income was $10.9 billion or $2.03 a share, an increase of $1.6 billion or 17.5% from $9.28 billion or $1.62 a share in the prior year as EPS growth was driven by the strong earnings and the continuing benefits of the share repurchase program.

- The firm increased the quarterly share repurchases to reduce shares outstanding from $7 billion to $8 billion.
- Upstream earnings were $8.8 billion up $2.7 billion from 2007 as the firm continues to capture the benefit of strong industry conditions with upstream after-tax unit earnings of just over $23 per barrel.

Total revenues increased 34.1% to $116.9 billion from $87.2 billion in the prior year on high commodity prices.

- Record crude oil and natural gas realizations increased earnings by $4.4 billion, as worldwide crude oil realizations were up $38.50 per barrel, and natural gas realizations were up $2.43 per Kcf from the prior year.
- Volume and mix effects reduced earnings, as increased natural gas volumes were more than offset by lower crude oil volumes.

Other effects reduced earnings by $900 million, with a third of that reduction due to higher taxes and $250 million reflects the impact of increased operating expenses including the effect of new field start-ups and increased exploration activity.

- Oil equivalent volumes decreased about 5.5%, and excluding the Venezuela expropriation, divestments, coders and pricing spend impacts volumes were down 3%.
- The decrease was primarily due to PSC net interest reductions of 80,000 barrels per day and the impact of maintenance activities in West Africa.
- Major project ramp ups in the North Sea and West Africa and increased European natural gas demand, offset fuel decline in mature areas.

Liquid''s production decreased about 270,000 barrels per day or 10% from the first quarter of last year.

- Excluding the Venezuela expropriation, divestments, quotas and price and spend impacts on volumes, production was down 6%.
- Major project ramp ups in West Africa and the North Sea were more than offset by natural fuel decline in matured areas, PSC net interest reductions and the impact of maintenance activities in West Africa.
- Gas volumes increased 130 million cubic feet per day as new product volumes and higher demand due to colder weather in Europe were partly offset by natural fuel decline in mature areas.

In the downstream, earnings were $1.2 billion, down nearly $750 million from the first quarter of 2007.

- Refining margins were markedly lower, compressed by rising crude prices, which reduced earnings by $1 billion.
- Volume and mix affects increased earnings by $350 million primarily due to refinery optimization activities.
- Other effects reduced earnings by $90 million, reflecting higher operating expenses including increased U.S. turnaround activity, partly offset by positive foreign exchange effects.

Chemical earnings of $1 billion were $210 million lower than 2007 as lower margins reduced earnings by $350 million, as higher feedstock costs, more than offset increased product realizations.

- Other impacts increased earnings by $140 million, reflecting favorable foreign exchange and tax effects.
- The cash balance was $41 billion and debt was $10 billion at the end of the first quarter.
- The corporation distributed a total of nearly $10 billion to shareholders in the first quarter through dividends and share purchases to reduce shares outstanding, an increase of $1.1 billion or 13% versus the prior year.
- The firm announced an increase in the quarterly dividend, of just over 14% to 40 cents per share.
- Capital expenditure was $5.5 billion, up almost $1.3 billion or 30% from 2007, and consistent the outlook for 2008.

Operational Milestones:

- Start-up was achieved at the Bulba field located at 120 miles off the coast of Norway in the southern section of the Norwegian Continental Shelf.
- At its peak, this development is expected to produce 50,000 barrels of oil and 30 million cubic feet of natural gas per day.
- The firm also announced the start-up of production from the Starling field in the U.K. sector of the North Sea and at peak production, the field is expected to deliver 110 million cubic feet of natural gas per day to the U.K. market.