Exxon Corporation 1995 Form 10-K Summary
Business Context and Reporting Period
This filing is the Annual Report on Form 10-K for Exxon Corporation for the fiscal year ended December 31, 1995. Incorporated in New Jersey in 1882, Exxon operates globally in over 100 countries. Its principal business involves the exploration and production of crude oil and natural gas, manufacturing of petroleum products, and transportation and sale of energy commodities. The company also operates Exxon Chemical Company, a major petrochemical manufacturer, and engages in coal mining and electric power generation.
Key Financial Metrics
The provided text incorporates financial statements by reference to the 1995 Annual Report to Shareholders and does not contain specific numerical values for revenue, net income, cash flow, margins, or debt levels. However, the following financial data points are explicitly stated in the text:
- Environmental Expenditures (1995): $1,753 million total, including $565 million in capital expenditures.
- Projected Environmental Expenditures (1996-1997): Approximately $1.7 billion annually, with capital expenditures representing about 30% of the total.
- Market Capitalization: As of February 29, 1996, the aggregate market value of voting stock held by non-affiliates exceeded $98 billion (based on a closing price of $79.50).
- Shares Outstanding: 1,242,130,748 shares as of February 29, 1996.
Material Changes and Operational Data
While specific financial comparisons to the prior period are not detailed in the text, the following operational changes and data for 1995 are reported:
- Well Drilling Activity: In 1995, Exxon drilled a total of 654 net wells (36 exploratory productive, 33 exploratory dry, 574 development productive, 11 development dry). This compares to 494 net wells in 1994.
- Reserves: No major discoveries or adverse events occurred after December 31, 1995, that would significantly change estimated proved reserves.
- Production Highlights:
- Canada: Cold Lake bitumen production averaged 94,000 barrels per day (bpd); Syncrude synthetic crude averaged 202,000 bpd.
- United States: Point McIntyre field production increased to 50,000 bpd (net) by year-end.
- Acquisitions and Divestitures:
- Acquired a 5% interest in offshore Megastructure fields in Azerbaijan from SOCAR.
- Sold its share in P.T. Stanvac Indonesia in December 1995.
- Sold producing fields in Colombia.
Outlook, Risks, and Management Commentary
Future Projects and Start-ups:
- United States: Ram-Powell project (Tension-Leg Platform) start-up expected in 1997.
- Canada: Cold Lake expansion expected to increase heavy oil production to ~130,000 bpd by 1997.
- Europe: Eastern Trough Area Project (UK) start-up anticipated in 1998; Grijpskerk and Norg gas storage (Netherlands) start-up in 1997-1998; Uelsen gas storage (Germany) start-up in 1997.
- Asia-Pacific: West Tuna and Bream B projects (Australia) and Lawit gas project (Malaysia) start-up anticipated in 1997.
- Regulatory and Political: Operations are subject to political developments, forced divestiture, production restrictions, price controls, tax increases, expropriations, and environmental regulations.
- Legal Proceedings: A lawsuit filed by Metropolitan Dade County regarding soil and groundwater contamination at a former service station in Opa Locka, Florida, was resolved in Exxon's favor. The court granted summary judgment on June 8, 1995, and denied the plaintiff's motion for rehearing on August 9, 1995.
Management notes that the oil and chemical industries are highly competitive. The company continues to invest heavily in environmental conservation, with expenditures expected to remain steady at approximately $1.7 billion annually for 1996 and 1997.
Investor Verification Checklist
- Verify specific revenue, net income, and cash flow figures in the 1995 Annual Report to Shareholders (incorporated by reference as Exhibit 13), as these are not present in the 10-K text.
- Review Pages F24 and F25 of the Annual Report for detailed proved oil and gas reserve estimates.
- Examine Page F3 of the Annual Report for the "Selected Financial Data" table to compare 1995 performance against prior years.
- Check Page F16 of the Annual Report for the full details of Note 14 regarding legal proceedings.
- Confirm the status of the Ram-Powell and Cold Lake expansion projects in subsequent filings to verify 1997 start-up timelines.
