<PAGE>
PAGE 1
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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): January 27, 1999
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 1-7555 13-2850309
(State or other jurisdiction of (Commission (I.R.S. Employer
incorporation or organization) File Number) Identification No.)
3225 Gallows Road
Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
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<PAGE>
PAGE 2
Item 5. Other Events
The Registrant hereby incorporates by reference herein the information
set forth in its News Release dated January 27, 1999, a copy of which is annexed
hereto as exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and
Exhibits.
(c) Exhibits.
99. Mobil Corporation News Release dated January 27, 1999 reporting
estimated earnings for the fourth quarter of 1998.
<PAGE>
PAGE 3
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
REGISTRANT MOBIL CORPORATION
By /s/ Gordon G. Garney
NAME AND TITLE Gordon G. Garney, Senior Assistant Secretary
DATE January 27, 1999
<PAGE>
PAGE 4
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
------- ----------------
99. Mobil Corporation, Electronic
News Release dated
January 27, 1999
<PAGE>
CONTACT: Dave Dickson, + 1 703-846-2378 or Bill Cummings + 1 703-846-3110
MOBIL NEWS RELEASE
MOBIL CORPORATION
3225 GALLOWS ROAD
FAIRFAX, VIRGINIA 22037-0001
TELEPHONE: (703) 846-2500
MOBIL ANNOUNCES FOURTH QUARTER 1998 OPERATING EARNINGS OF $499 MILLION
<TABLE>
<CAPTION>
- ----------------------------------------------------------------------------------------------------------------
Fourth Quarter Full Year
- ----------------------------------------------------------------------------------------------------------------
1997 1998 Change 1997 1998 Change
- ----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C>
Operating Earnings ($millions) 809 499 (310) 3,430 2,366 (1,064)
Per share ($) 1.01 0.63 (0.38) 4.30 2.97 (1.33)
Assuming dilution ($) 0.99 0.62 (0.37) 4.20 2.92 (1.28)
Net Income (Loss) ($millions) 704 (152) (856) 3,272 1,704 (1,568)
Per share ($) 0.88 (0.21) (1.09) 4.10 2.12 (1.98)
Assuming dilution ($) 0.86 (0.21) (1.07) 4.01 2.10 (1.91)
- ----------------------------------------------------------------------------------------------------------------
</TABLE>
. For the full year 1998, self-help programs offset
about $500 million of the $1.4 billion effect of
the deterioration in industry fundamentals.
- Unit operating costs down over 4% per barrel.
. Downstream operating earnings set all time record
of $1,418 million for 1998.
- Worldwide trade sales up 4%, despite tough Asia Pacific economic
conditions.
- Benefits from initiatives continue to grow.
- Lube earnings continue to improve.
. Upstream earnings in 1998 impacted primarily by
significant deterioration in industry fundamentals.
- Crude oil prices down about $6.50 per barrel.
- Natural gas prices down about $0.50 per thousand cubic feet.
- Overall production down about 2% due to impact of OPEC quotas and
rationalized capital spending program.
- Higher exploration expenses.
. Special charges total $662 million for the year,
primarily due to asset impairments and inventory
valuation adjustments.
<PAGE>
-2-
Fairfax, VA, January 27, 1999 Mobil Corporation today reported fourth quarter
1998 estimated operating earnings of $499 million. This is a decrease of $310
million, or 38%, from the $809 million earned in the same period last year.
Operating earnings per common share, assuming dilution, were $0.62, compared
with $0.99 in the fourth quarter of 1997. On a reported basis, including
special items, the net loss for the quarter was $152 million, or ($0.21) per
share, down from net income of $704 million, or $0.86 per share, last year.
Fourth quarter 1998 net loss included estimated net special charges of $651
million. These were mostly non-cash items and include a charge of $387 million
for impairment of upstream properties, primarily in the U.S., Latin America
(which includes $120 million for the Camisea license expiration) and Asia
Pacific; a charge of $270 million to adjust inventory to market value, mainly
in Asia Pacific and Europe; a $97 million charge for the restructuring of our
marketing operations in Asia Pacific and Latin America as well as the final
provision for implementation costs associated with the BP European downstream
alliance; and $34 million for other items. These charges more than offset the
$137 million benefit resulting from settlement of prior years' tax disputes.
Fourth quarter 1997 results included net special charges of $105 million--
primarily due to restructurings in our downstream business, which were partly
offset by gains on asset sales (refer to Table 3).
Full year 1998 operating earnings were $2,366 million, down $1,064 million, or
31% from last year. On a per share basis, operating earnings of $2.92 were
$1.28 lower than the $4.20 earned in 1997. Full year net income was $1,704
million, or $2.10 per share, versus $3,272 million, or $4.01 per share, last
year.
In comparing full year 1998 operating earnings with 1997, Chairman and Chief
Executive Officer Lucio A. Noto said, "Mobil's earnings benefited by about $500
million from our self-help programs, mitigating the $1.4 billion unfavorable
impact of deteriorating industry fundamentals across most of our businesses.
"In the Upstream, earnings were adversely impacted by significantly lower
worldwide crude oil and natural gas prices. Crude oil prices were off by about
$6.50 per barrel, while natural gas fell by approximately $0.50 per thousand
cubic feet. Production volumes were down approximately 2% versus 1997 mainly
due to the limitation on growth in Nigeria as a result of OPEC quotas and
natural field declines, along with a rationalized capital program, in mature
areas such as the U.S. and the United Kingdom. Indonesian volumes also
declined, as anticipated. Our growth program led to increased volumes in
Eastern Canada (Hibernia), Equatorial Guinea and Kazakhstan (Tengiz).
"Downstream earnings achieved their highest level ever in 1998, despite
difficult industry conditions in several markets where we operate. In the U.S.,
record earnings were attained for the second straight year. Strong gasoline
trade sales (up about 5%), continued excellent refining performance and self-
help initiatives more than offset lower industry margins. In International
downstream, earnings in 1998 were the second highest on record, reflecting
strong trade sales performance (up 4%) and a number of self-help initiatives.
Europe achieved record earnings as a result of higher integrated margins and
benefits from the BP alliance. In Asia Pacific, earnings increased somewhat, as
self-help initiatives across the region fully offset difficult market conditions
and, in Japan, contributed to sharply improved earnings. In addition,
Downstream earnings benefited from strong performance in Lubes. For 1998, Lubes
earnings were strong, up about 20% from last year.
<PAGE>
- 3 -
"In Chemical, earnings were down significantly reflecting lower polyethylene and
paraxylene margins.
"Further evidence of the current tough economic conditions in the oil and gas
industry are the one-time charges Mobil recorded in fourth quarter, 1998. These
charges related to the impairment of certain upstream oil and gas properties,
inventory valuation adjustments and additional restructuring.
"Mobil remains focused on improving performance in this difficult environment.
Our strategy continues to be aggressive management of our asset base and
disciplined investment for long term growth. We have implemented new
restructuring programs in Australia, New Zealand and Latin America to reflect
regional integration of their respective fuels and lubes operations. These
restructuring initiatives are expected to deliver approximately $40 million in
annual after-tax benefits by the end of 2000.
"Total capital and exploration spending in 1999 is estimated to be $4.8 billion,
down about 11% from the estimated 1998 spending level of $5.5 billion. The
program seeks to balance projects which will provide short-term earnings and
cash flow with those that will support profitable long-term growth."
Noto concluded, "Business fundamentals, as evidenced by the uncertain outlook
for prices and margins in the near term, continue to be unpredictable. We
remain confident in the long-term prospects for all of our core businesses,
including the Asia Pacific region."
Full year 1998 net income was $1,704 million, $1,568 million lower than the
$3,272 million earned in 1997. Net special charges in 1998 totaled $662
million, mainly for upstream asset impairments, inventory valuation adjustments,
and restructurings in International downstream which more than offset the
benefit from the settlement of prior years' tax disputes. Net special charges
in 1997 totaled $158 million, mainly for restructuring-related charges in the
International downstream, partly offset by gains on asset sales and other items
(refer to Table 3).
The following comments address the operating performance of the major business
segments during the fourth quarter and full year 1998 as compared with the same
periods in 1997 (refer to Table 2):
COMPARISON OF FOURTH QUARTER 1998 WITH FOURTH QUARTER 1997
----------------------------------------------------------
o Exploration & Producing operating earnings of $252 million were $294
-----------------------
million lower than last year's $546 million.
In the United States, earnings of $34 million decreased $152 million due
primarily to lower crude oil and natural gas prices plus lower volumes from
natural field declines.
International earnings of $218 million were $142 million lower, due mainly
to the significant decline in crude oil and natural gas prices. Exploration
expenses were higher due primarily to the write-off of certain well costs
upon the decision not to proceed with development. Volumes were down
slightly as increases in Eastern Canada, Equatorial Guinea and Tengiz were
more than offset by reductions in Indonesia and Europe. However, earnings
were favorably
<PAGE>
- 4 -
impacted by the sale of an Independent Power Project in the United Kingdom,
self-help programs and certain tax benefits.
o Marketing & Refining operating earnings of $300 million were $7 million
--------------------
higher than in 1997.
Operating earnings in the United States were $107 million, $63 million
below last year. The unfavorable impact of lower industry margins and the
completion of our scheduled turnaround at the Joliet, Illinois refinery
more than offset strong sales performance.
International earnings of $193 million were $70 million higher than in
1997. In Europe, earnings benefited from somewhat stronger integrated
margins and initiatives related to the Mobil-BP alliance. Earnings were
higher in Asia Pacific, benefiting from performance improvements and higher
marketing margins. International downstream earnings improved as a result
of higher product sales in Africa and South America.
o Chemical earnings of $24 million were $48 million lower than last year as a
--------
result of significantly lower polyethylene and paraxylene margins.
o Corporate and Financing expenses of $77 million were $25 million lower than
-----------------------
in the fourth quarter of 1997 primarily due to the timing of expenses and
other one-time items.
COMPARISON OF FULL YEAR 1998 WITH 1997
--------------------------------------
o Exploration & Producing operating earnings were $1,007 million versus last
-----------------------
year's record earnings of $2,138 million.
In the United States, earnings of $196 million decreased $464 million,
reflecting the effects of lower volumes and lower crude oil and natural gas
prices. The lower volumes were mainly due to natural field declines and a
rationalized capital program.
International earnings of $811 million were $667 million lower, due mainly
to a significant decline in crude oil and natural gas prices. Higher
exploration expenses, due primarily to the write-off of well costs, also
contributed to lower earnings. Volumes were down slightly as increases in
Canada, Equatorial Guinea and Tengiz were more than offset by reductions
due to OPEC production constraints, mainly in Nigeria; natural field
declines in Europe and the anticipated decline in Indonesian volumes.
Lower expenses and other performance initiatives buffered the overall
decline.
o Marketing & Refining operating earnings of $1,418 million were $106 million
--------------------
higher than in 1997.
Earnings for 1998 were an all-time record, led by strong trade sales growth
(up 4%) and other self-help initiatives.
In the U.S., earnings were $566 million, $4 million above last year's
record of $562 million. The unfavorable impact of lower industry margins
was offset by
<PAGE>
- 5 -
strong sales performance and lower refinery turnaround costs.
International earnings of $852 million were $102 million higher than in
1997. In Europe, earnings benefited from stronger integrated margins and
initiatives related to the Mobil-BP alliance. Earnings were up somewhat in
Asia Pacific, as self-help programs across the region fully offset the
unfavorable impact of lower integrated margins and, in Japan, contributed
to sharply improved earnings. Africa also generated record earnings as a
result of growth initiatives. International downstream earnings were also
helped by higher product sales volumes in South America, but hurt by lower
margins at our Yanbu, Saudi Arabia joint venture refinery.
o Chemical earnings of $190 million were $160 million lower than last year as
--------
a result of significantly lower polyethylene and paraxylene margins. This
unfavorable impact was mitigated by record earnings in the Chemical
Products business, which resulted from strong margins and sales growth of
12%.
o Corporate and Financing expenses of $249 million were $121 million lower
-----------------------
than in 1997 primarily due to the timing of expenses and other one-time
items.
Estimates of key financial and operating data are shown below and on the
attached tables.
Investment Spending for the fourth quarter of 1998 was $1,711 million, $158
- -------------------
million lower than in the comparable period last year. For calendar year 1998,
investment spending was $5,504 million, compared with $5,306 million for the
same period last year.
Mobil's Return on Average Capital Employed for calendar year 1998, based on
----------------------------------
operating earnings, was 10.1%, compared with 14.0% for calendar year 1997. On a
reported net income basis, returns were 7.6% and 13.4% for the same periods.
Return on Average Shareholders' Equity for calendar year 1998, based on
- --------------------------------------
operating earnings, was 12.5%, compared with 17.8% for calendar year 1997. On a
net income basis, returns were 9.0% and 17.0% for the same periods.
Mobil's Debt-to-Capitalization Ratio was 29% at December 31, 1998, compared with
----------------------------
25% at December 31, 1997.
Common Stock Dividends were $0.57 per share in the fourth quarter of 1998 and
- ----------------------
$2.28 per share for full year 1998, $0.04 and $0.16 per share higher than the
comparable periods in 1997.
______________________________________________________________________
Note: This press release contains forward-looking statements about Mobil's
plans for capital and exploration expenditures and about Mobil's projected
benefits from restructuring initiatives. Actual expenditures and benefits may
be different due to a number of factors, such as changes in oil and gas prices
and economic conditions and success in implementing initiatives. For a further
discussion of factors that could cause actual results to differ materially from
those expressed in the forward-looking statements, please refer to the section
entitled "Forward-Looking Statements" in Mobil's Report on Form 10-Q for the
quarter ended September 30, 1998.
<PAGE>
<TABLE>
<CAPTION>
Table 1
MOBIL CORPORATION
Fourth Twelve
Quarter Months
------------------------------------- -----------------------------------
INCOME ($MM) 1997 1998 Incr/ 1997 1998 Incr/
Act Est (Decr) Act Est (Decr)
------- ------- ------- ------- ------- -------
<S> <C> <C> <C> <C> <C> <C>
Petroleum Operations
E&P: United States 186 (122) (308) 697 11 (686)
International 401 (13) (414) 1,515 635 (880)
----- ------ ------ ------ ------ -------
Total Exploration & Producing 587 (135) (722) 2,212 646 (1,566)
M&R: United States 160 115 (45) 542 574 32
International (13) (182) (169) 483 440 (43)
----- ------ ------ ------ ------ -------
Total Marketing & Refining 147 (67) (214) 1,025 1,014 (11)
----- ------ ------ ------ ------ -------
Total Petroleum 734 (202) (936) 3,237 1,660 (1,577)
Chemical 72 15 (57) 403 181 (222)
Corporate and Financing (a) (102) 35 137 (368) (137) 231
----- ------ ------ ------ ------ -------
Net Income/(Loss) 704 (152) (856) 3,272 1,704 (1,568)
================= ===== ====== ====== ====== ====== =======
COMMON SHARES OUTSTANDING (MM)
End of Period ... ... ... 783.4 773.2 (b) (10.2)
Average 784.3 772.6 (b) (11.7) 786.3 779.2 (b) (7.1)
Average -- Assuming Dilution 813.6 801.7 (b) (11.9) 815.1 807.3 (b) (7.8)
NET INCOME/(LOSS) PER COMMON SHARE ($) (c) 0.88 (0.21) (1.09) 4.10 2.12 (1.98)
Assuming Dilution (d) 0.86 (0.21) (1.07) 4.01 2.10 (1.91)
DIVIDENDS
Common Stock
Total Paid ($MM) 416 444 28 1,667 1,781 114
Per Share ($) 0.53 0.57 0.04 2.12 2.28 0.16
Preferred Stock ($MM) 13 12 (1) 52 50 (2)
</TABLE>
- -------------------------------
(a) Includes corporate administrative expenses, net financing expense and other
items.
(b) Affected by net share repurchases and a required change in accounting for
shares held in a supplemental retirement trust.
(c) The net income/(loss) per common share calculation is based on income, less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
(d) Net income/(loss) per common share assuming dilution includes the dilutive
effects of stock options and convertible preferred stock.
<PAGE>
Table 2
MOBIL CORPORATION
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
-------------------------------------- --------------------------------------
<S> <C> <C> <C> <C> <C> <C>
INCOME ADJUSTED FOR SPECIAL 1997 1998 Incr/ 1997 1998 Incr/
ITEMS ($MM) Act Est (Decr) Act Est (Decr)
------- ------- --------- ------- ------- ---------
Petroleum Operations
E&P: United States 186 34 (152) 660 196 (464)
International 360 218 (142) 1,478 811 (667)
------- ------- --------- ------- ------- ---------
Total Exploration & Producing 546 252 (294) 2,138 1,007 (1,131)
M&R: United States 170 107 (63) 562 566 4
International 123 193 70 750 852 102
------- ------- --------- ------- ------- ---------
Total Marketing & Refining 293 300 7 1,312 1,418 106
------- ------- --------- ------- ------- ---------
Total Petroleum 839 552 (287) 3,450 2,425 (1,025)
Chemical 72 24 (48) 350 190 (160)
Corporate and Financing (a) (102) (77) 25 (370) (249) 121
------- ------- --------- ------- ------- ---------
Operating Earnings (Before
Special Items) 809 499 (310) 3,430 2,366 (1,064)
Special Items (105) (651) (546) (158) (662) (504)
------- ------- --------- ------- ------- ---------
Net Income/(Loss) 704 (152) (856) 3,272 1,704 (1,568)
======= ======= ========= ======= ======= =========
EARNINGS PER COMMON SHARE ($)
BASED ON:
Operating Earnings (Before
Special Items) (b) 1.01 0.63 (0.38) 4.30 2.97 (1.33)
Assuming Dilution(c) 0.99 0.62 (0.37) 4.20 2.92 (1.28)
Net Income/(Loss) (b) 0.88 (0.21) (1.09) 4.10 2.12 (1.98)
Assuming Dilution(c) 0.86 (0.21) (1.07) 4.01 2.10 (1.91)
</TABLE>
(a) Includes corporate administrative expenses, net financing expense and other
items.
(b) The earnings per common share calculation is based on income/(loss), less
preferred stock dividend requirements, divided by the weighted average
number of common shares outstanding.
(c) Earnings per common share assuming dilution includes the dilutive effects of
stock options and convertible preferred stock.
<PAGE>
Table 3
MOBIL CORPORATION
<TABLE>
<CAPTION>
1997 by Quarter and Year 1998 by Quarter and Year
--------------------------------- ---------------------------------
SPECIAL ITEMS
AFFECTING INCOME ($MM) 1Q 2Q 3Q 4Q Year 1Q 2Q 3Q 4Q Year
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
E&P United States
Asset Impairment - - - - - - - - (156) (156)
Asset Sales - - 53 - 53 - - - - -
Federal Royalty Settlement - - - - - - - (29) - (29)
Litigation - - (12) - (12) - - - - -
Employee Performance Award - - (4) - (4) - - - - -
E&P International
Asset Impairment - - - - - - - - (231) (231)
Asset Sales - - - 41 41 - - 55 - 55
Employee Performance Award - - (4) - (4) - - - - -
M&R United States
Asset Impairment - - - (18) (18) - - - - -
LIFO Inventory Adjustment - - - 8 8 - - - 8 8
Employee Performance Award - - (10) - (10) - - - - -
M&R International
LIFO Inventory Adjustment - - - 12 12 - - - (17) (17)
Restructuring (18) (20) (72) (148) (258) (10) (13) (14) (97) (134)
Employee Performance Award - - (21) - (21) - - - - -
Lower of Cost or Market
Inventory Adjustment - - - - - - - - (261) (261)
Chemical
Asset Sales - - 48 - 48 - - - - -
Litigation - - 10 - 10 - - - - -
Employee Performance Award - - (5) - (5) - - - - -
Lower of Cost or Market
Inventory Adjustment - - - - - - - - (9) (9)
Corporate and Financing
Asset Sales - - 39 - 39 - - - - -
Settlement of Prior Years' Tax Disputes - - - - - - - - 137 137
Exxon Mobil Merger-Related Costs - - - - - - - - (25) (25)
Litigation - - (31) - (31) - - - - -
Employee Performance Award - - (6) - (6) - - - - -
---- ---- ---- ---- ---- ---- ---- ---- ---- ----
Total Special Items (18) (20) (15) (105) (158) (10) (13) 12 (651) (662)
==== ==== ==== ==== ==== ==== ==== ==== ==== ====
</TABLE>
<PAGE>
Table 4
MOBIL CORPORATION
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
---------------------------------- ---------------------------------
INVESTMENT SPENDING ($MM) 1997 1998 Incr/ 1997 1998 Incr/
Act Est (Decr) Act Est (Decr)
------ ------ ------ ------ ------ ------
<S> <C> <C> <C> <C> <C> <C>
Capital and Exploration Expenditures
Petroleum Operations
Exploration & Producing
United States 178 167 (11) 503 528 25
International 1,075 1,004 (71) 2,884 3,063 179
------ ------ ------ ------ ------ ------
Total E&P 1,253 1,171 (82) 3,387 3,591 204
------ ------ ------ ------ ------ ------
Marketing & Refining
United States 133 120 (13) 357 378 21
International 220 146 (74) 571 344 (227)
------ ------ ------ ------ ------ ------
Total M&R 353 266 (87) 928 722 (206)
------ ------ ------ ------ ------ ------
Total Petroleum 1,606 1,437 (169) 4,315 4,313 (2)
Chemical 113 78 (35) 323 266 (57)
Other 13 49 36 51 191 140
------ ------ ------ ------ ------ ------
Total Capital and Exploration
Expenditures 1,732 1,564 (168) 4,689 4,770 81
Cash Investments in Equity
Companies 137 147 10 617 734 117
------ ------ ------ ------ ------ ------
Total Investment Spending 1,869 1,711 (158) 5,306 5,504 198
====== ====== ====== ====== ====== ======
Memo: Exploration expenses charged
to operating earnings, included above
United States 48 34 (14) 76 127 51
International 189 205 16 423 468 45
------ ------ ------ ------ ------ ------
Total Exploration Expenses 237 239 (a) 2 499 595 (a) 96
====== ====== ====== ====== ====== ======
</TABLE>
(a) Reflects exploration expenses included in operating earnings. Exploration
expenses shown in reported net income will be higher by $48 million for
Camisea well costs included in Special Items (i.e., $287 million for fourth
quarter 1998 and $643 million for full year 1998).
================================================================================
<TABLE>
<CAPTION>
OTHER FINANCIAL DATA ($MM)
<S> <C> <C> <C> <C> <C> <C>
Total Revenues 16,574 13,217 (3,357) 65,906 53,566 (12,340)
Income Taxes (b) 721 95 (626) 3,093 1,347 (1,746)
AVERAGE U.S. PRICES
Crude ($/BBL) -- Mobil 17.21 10.36 (6.85) 17.61 11.78 (5.83)
Crude ($/BBL) -- Mobil + Aera 16.19 9.35 (6.84) 16.59 10.48 (6.11)
NGL ($/BBL) 11.94 7.27 (4.67) 11.96 8.26 (3.70)
Natural Gas ($/MCF) 2.77 1.92 (0.85) 2.38 1.98 (0.40)
AVERAGE INT'L. PRICES
Crude ($/BBL) 18.42 11.10 (7.32) 18.94 12.29 (6.65)
Natural Gas ($/MCF) 2.62 2.10 (0.52) 2.72 2.17 (0.55)
</TABLE>
(b) Includes the tax impact of Special Items.
<PAGE>
Table 5
MOBIL CORPORATION
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
----------------------------------- -----------------------------------
1997 1998 Incr/ 1997 1998 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
---- ---- ------ ---- ---- ------
<S> <C> <C> <C> <C> <C> <C>
NET PRODUCTION OF LIQUIDS
(TBD)
United States 247 242 (5) 244 240 (4)
Australia 41 37 (4) 39 38 (1)
Canada 57 84 27 49 71 22
Equatorial Guinea 51 56 5 36 50 14
Indonesia 35 28 (7) 46 37 (9)
Kazakhstan 34 51 17 36 45 9
Nigeria 266 265 (1) 253 248 (5)
Norway 81 74 (7) 79 73 (6)
United Kingdom 79 71 (8) 75 63 (12)
Middle East/Other 69 70 1 70 70 --
----- ----- ------ ----- ----- ------
Total International 713 736 23 683 695 12
----- ----- ------ ----- ----- ------
Worldwide 960 978 18 927 935 8
===== ===== ====== ===== ===== ======
NET PRODUCTION OF NATURAL
GAS (MMCFD)
United States 1,173 974 (199) 1,161 1,077 (84)
Canada 467 434 (33) 397 440 43
Germany 481 506 25 456 455 (1)
Indonesia 1,531 1,158 (373) 1,571 1,354 (217)
United Kingdom 693 690 (3) 668 596 (72)
Other 315 412 97 303 374 71
----- ----- ------ ----- ----- ------
Total International 3,487 3,200 (287) 3,395 3,219 (176)
----- ----- ------ ----- ----- ------
Worldwide 4,660 4,174 (486) 4,556 4,296 (260)
===== ===== ====== ===== ===== ======
TOTAL NET
PRODUCTION (TBDOE) 1,804 1,734 (70) 1,753 1,713 (40)
===== ===== ====== ===== ===== ======
</TABLE>
<PAGE>
Table 6
MOBIL CORPORATION
<TABLE>
<CAPTION>
Fourth Quarter Twelve Months
------------------------------------- ---------------------------------------
1997 1998 Incr/ 1997 1998 Incr/
OPERATING HIGHLIGHTS Act Est (Decr) Act Est (Decr)
----- ----- ------ ----- ----- ------
<S> <C> <C> <C> <C> <C> <C>
REFINERY RUNS (TBD)
United States (a) 976 778 (198) 956 872 (84)
Europe (b) 351 375 24 371 367 (4)
Asia-Pacific 736 725 (11) 678 725 47
All Other 187 175 (12) 186 171 (15)
----- ----- ------ ----- ----- ------
Worldwide 2,250 2,053 (197) 2,191 2,135 (56)
===== ===== ====== ===== ===== ======
PETROLEUM PRODUCT SALES (c)
(TBD)
United States
Automotive Gasoline
Sales to Trade 569 601 32 568 597 29
Supply/Other Sales 232 280 48 250 241 (9)
----- ----- ------ ----- ----- ------
Total Automotive Sales 801 881 80 818 838 20
Distillates/Jet Fuel 409 411 2 372 361 (11)
Other 255 269 14 245 266 21
----- ----- ------ ----- ----- ------
Total United States 1,465 1,561 96 1,435 1,465 30
Europe (b) 620 692 72 679 677 (2)
Asia-Pacific 823 809 (14) 815 824 9
All Other 459 513 54 414 474 60
----- ----- ------ ----- ----- ------
Total International 1,902 2,014 112 1,908 1,975 67
----- ----- ------ ----- ----- ------
Worldwide 3,367 3,575 208 3,343 3,440 97
===== ===== ====== ===== ====== ======
CHEMICAL SALES (MM LBS)
Worldwide Polyethylene Resin 666 659 (7) 2,765 2,784 19
Worldwide Paraxylene 463 480 17 1,638 1,864 226
CHEMICAL SALES BY PRODUCT
CATEGORY ($MM)
Petrochemicals 526 357 (169) 2,151 1,618 (533)
Films Products 158 153 (5) 707 655 (52)
Chemical Products 36 41 5 136 155 19
----- ----- ------ ----- ----- ------
Total 720 551 (169) 2,994 2,428 (566)
===== ===== ====== ===== ===== ======
</TABLE>
- ---------------------------------
(a) 1998 reflects reduced volumes due to Mobil's 50% interest in the Chalmette
joint venture and the sale of the Paulsboro refinery in third quarter, 1998.
(b) Includes Mobil's share for the M&R alliance with BP in Europe.
(c) Includes trade and supply sales.
