1994
____________________________________________________________________________
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549-1004
FORM 10-K
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934 [FEE REQUIRED]
For the fiscal year ended December 31, 1994
Commission File No. 1-7555
MOBIL CORPORATION
(Exact name of registrant as specified in its charter)
Delaware 13-2850309
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
3225 Gallows Road, Fairfax, Virginia 22037-0001
Telephone: (703) 846-3000
(Address of principal executive offices)
Securities registered pursuant to Section 12(b) of the Act:
Name of Each Exchange
Title of Each Class on Which Registered
Common Stock, $2.00 Par Value New York Stock Exchange
7 5/8% Debentures due 2033 New York Stock Exchange
8% Debentures Due 2032 New York Stock Exchange
8 3/8% Notes Due 2001 New York Stock Exchange
8 5/8% Debentures Due 2021 New York Stock Exchange
Securities registered pursuant to Section 12(g) of the Act:
Guarantee, Mobil Oil Corporation Employee Stock Ownership Plan (ESOP) Trust
9.17% Sinking Fund Debentures Due 2000
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to
such filing requirements for the past 90 days. Yes X . No .
Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to
the best of the registrant's knowledge, in definitive proxy or information
statements incorporated by reference in Part III of this Form 10-K or any
amendment to this Form 10-K. X
The number of voting securities of the registrant outstanding on February
28, 1995, the latest practicable date, was (i) 395,866,646 shares of common
stock, all of which comprise a single class with a $2.00 par value, and each
being entitled to one vote and (ii) 95,304 shares of Series B ESOP Convertible
Preferred Stock, $1.00 par value per share, and each being entitled to 100
votes for a total of 9,530,400 votes. As of the same date, the aggregate
market value of voting stock held by non-affiliates of the registrant was
$34,405,159,450, based on a closing price of $87.000 per share. The
approximate number of common equity security holders as of the same date was
192,701.
Parts I and II incorporate information by reference to the Annual Report to
Shareholders for the year ended December 31, 1994. Part III contains
information incorporated by reference to the registrant's definitive proxy
statement, which will be filed with the Securities and Exchange Commission
within 120 days after December 31, 1994.
____________________________________________________________________________
MOBIL CORPORATION
Form 10-K
December 31, 1994
TABLE OF CONTENTS
Page(s)
________________________
1994 1994
Annual Annual
Report on Report to
Form 10-K Shareholders
PART I
Item 1. Business ................................... 1 -
(a) General .............................. 1 -
(b) Environmental Matters ................ 1 26,47
(c) Segment and Geographic Information ... 2 34,35
(d) Business Description and Properties .. 2 50,51,55
Petroleum Operations ............... 2 -
Upstream ......................... 3 -
Downstream ....................... 12 -
Chemical Operations ................ 13 -
Other Operations ................... 14 -
Item 2. Properties ................................. 15 -
Item 3. Legal Proceedings .......................... 15 -
Item 4. Submission of Matters to a Vote
of Security Holders ...................... 16 -
PART II
Item 5. Market for Registrant's Common Stock
and Related Stockholder Matters .......... 17 27
Item 6. Selected Financial Data .................... 17 56,57
Item 7. Management's Discussion and Analysis
of Results of Operations and
Financial Condition ...................... 17 18-28,30,32
Item 8. Financial Statements and
Supplementary Data ....................... 17 27,29,31,33-53
Item 9. Changes in and Disagreements with
Accountants on Accounting and
Financial Disclosure ..................... 17 -
PART III
Item 10. Directors and Executive Officers
of the Registrant ........................ 17 -
Item 11. Executive Compensation ..................... 17 -
Item 12. Security Ownership of Certain Beneficial
Owners and Management .................... 17 -
Item 13. Certain Relationships and
Related Transactions ..................... 17 -
PART IV
Item 14. Exhibits, Financial Statement Schedules
and Reports on Form 8-K .................. 19 -
Supplemental Financial Information ......... 20 -
Summarized Financial Data ................ 20 -
Financial Statement Schedules ............ 21 -
Signatures ................................. 22 -
Exhibit Index ............................. 23 -
Exhibits ................................... 24 -
PART I
Item 1. Business.
(a) General
Mobil Corporation (Mobil) was incorporated in March, 1976 in the State of
Delaware. Mobil's principal business, which is conducted primarily through
wholly-owned subsidiaries, is in the petroleum industry. Mobil is also a
manufacturer and marketer of petrochemicals, plastics and specialty chemical
products. Through its subsidiaries, Mobil had business interests in over 100
countries and employed approximately 58,500 people worldwide at December 31,
1994.
Mobil Oil Corporation (Mobil Oil) is Mobil's principal subsidiary. Through
its divisions and subsidiaries, Mobil Oil has a worldwide oil and gas
exploration and producing operation, a global marketing and refining complex, a
network of pipelines and tankers linking these worldwide oil and gas
businesses, a world-scale chemical business and a highly sophisticated research
and engineering operation. Summarized financial data for Mobil Oil is included
on page 20 of this Annual Report on Form 10-K.
A list of Mobil's most significant subsidiaries is contained on pages 26
through 28 of this Annual Report on Form 10-K.
Mobil makes no representations as to the future trend of its business and
earnings, or as to future events and developments that could affect the oil
industry in particular and that may affect other businesses in which Mobil is
directly or indirectly engaged. These include such matters as the divestiture
of certain operations, environmental quality control standards, oil imports,
new discoveries of hydrocarbons and the demand for petroleum products.
Furthermore, Mobil's business could be affected by future price changes or
controls, material and labor costs, legislation, taxes, labor conditions,
transportation regulations, tariffs, litigation, embargoes, foreign currency
exchange restrictions and changes in foreign currency exchange rates. Mobil
has direct and indirect investments and interests in many enterprises worldwide
and makes no representation as to future developments which may have a
profound effect on its business enterprises throughout the world. Mobil also
recognizes that such enterprises are subject to political uncertainties in many
of the countries in which it operates. Countries outside of the U.S. which
currently are, and are expected to continue to be, significant contributors to
Mobil's operating earnings are Indonesia, Japan, Nigeria, Norway and the United
Kingdom (U.K.).
(b) Environmental Matters
The discussions of Environmental Matters on pages 26 and 47 of Mobil's 1994
Annual Report to Shareholders are incorporated herein by reference.
Mobil and certain of its subsidiaries and affiliates are parties to numerous
proceedings instituted by governmental authorities and others under provisions
of applicable laws or regulations relating to the discharge of materials into
the environment. Such environmental proceedings are further discussed herein on
pages 15 and 16 under Item 3. Legal Proceedings.
Mobil - 1 -
(c) Segment and Geographic Information
Segment and Geographic information for 1992, 1993 and 1994 on pages 34 and
35 of Mobil's 1994 Annual Report to Shareholders is incorporated herein by
reference.
(d) Business Description and Properties
In addition to the business description and properties contained herein, the
following data included in Mobil's 1994 Annual Report to Shareholders are
incorporated herein by reference:
1994 Annual
Report to
Shareholders
Description Page
Estimated Quantities of Net Proved Oil and
Natural Gas Liquids Reserves (Table 1) ..... 50
Estimated Quantities of Net Proved Natural
Gas Reserves (Table 2) ..................... 51
Petroleum Product Sales ...................... 55
Refinery Runs ................................ 55
Chemical Sales by Product Category ........... 55
PETROLEUM OPERATIONS
Mobil is one of the largest oil companies in the world, with petroleum
product sales of 3.1 million barrels a day. In 1994 Mobil produced the oil
equivalent of 1.7 million barrels daily of crude oil, natural gas liquids and
natural gas and had refinery runs of 2.1 million barrels per day. Petroleum
net sales in 1994 were $53,411 million, up about 3 % from both 1992 and 1993.
______________________________________________________________________________
Petroleum Product Sales (a) 1992 1993 1994
(Millions of dollars)
______________________________________________________________________________
Automotive gasoline ........................ $19,352 $19,070 $19,888
Distillate and jet fuels ................... 13,334 13,563 13,671
Other refined petroleum products ........... 6,390 6,104 6,501
------- ------- -------
Total refined petroleum products ........... 39,076 38,737 40,060
Crude oil .................................. 7,632 7,287 7,593
Natural gas ................................ 4,682 5,086 5,072
Other products ............................. 616 626 686
------- ------- -------
Net Petroleum Product Sales ................ $52,006 $51,736 $53,411
======= ======= =======
(a) Excludes excise and state gasoline
taxes of ............................. $ 6,687 $ 6,898 $ 7,762
- ------------------------------------------------------------------------------
Prices for crude oil have experienced dramatic fluctuations during the past
several years, making it difficult to forecast future trends in prices or
margins in Petroleum Operations. During 1994 the average price of crude oil
declined about $1.00 per barrel due to weak supply/demand fundamentals.
Mobil's Petroleum Operations are divided into two primary business
activities -- Upstream, which refers to exploration and producing, and
Downstream, which refers to marketing, refining, supply and transportation.
Mobil - 2 -
PETROLEUM OPERATIONS -- UPSTREAM
Exploration and Producing
Significant developments in 1994 in Mobil's exploration and producing
operations included the following:
Worldwide
In 1994, Mobil conducted exploration and producing activities in 34
countries. Net production of liquids (crude oil and natural gas liquids)
averaged 854 thousand barrels a day (TBD) in 1994, an increase of 16 TBD, from
838 TBD in 1993. Net natural gas production of 4,670 million cubic feet a day
(MMCFD) in 1994 was 60 MMCFD higher than 1993. Liquids and natural gas
production in the U.S. were essentially flat with 1993 as liquids production
was down approximately 2% and natural gas production was up 3%. International
production was up, primarily due to full year production from new fields in
Australia and the U.K., and increased oil production in Nigeria. Worldwide
natural gas sales in 1994 were 5,937 MMCFD, up 513 MMCFD from the preceding
year, as increased production in the U.K and the U.S. offset declines in other
areas and sales of acquired third party gas increased. Proved liquids and
natural gas reserve additions replaced 117% of 1994 production on a barrel of
oil equivalent (BOE) basis, excluding purchases and sales, and 116% overall.
The following table summarizes net production of crude oil and natural gas
liquids (NGL) and of natural gas for 1992 through 1994.
______________________________________________________________________________
Crude Oil & NGL(TBD) Natural Gas(MMCFD)
Net Production 1992 1993 1994 1992 1993 1994
______________________________________________________________________________
Fully consolidated companies
United States .................... 311 305 300 1,641 1,529 1,568
Canada ........................... 59 58 57 510 492 461
Germany .......................... 6 6 6 351 362 368
Indonesia ........................ 94 90 77 1,654 1,658 1,654
Nigeria .......................... 132 169 175 - - -
Norway ........................... 102 95 95 48 51 49
United Kingdom ................... 50 58 70 260 390 470
Other Areas ...................... 5 3 27 95 84 71
--- --- --- ----- ----- -----
Total Consolidated ............. 759 784 807 4,559 4,566 4,641
--- --- --- ----- ----- -----
Mobil's share of production of
equity companies ................. 57 54 47 45 44 29
--- --- --- ----- ----- -----
Total Production ................... 816 838 854 4,604 4,610 4,670
=== === === ===== ===== =====
This table presents Mobil's net production from properties in which it has a
working or royalty interest and its share of production of investees accounted
for on the equity method. Net production excludes royalties and quantities
due others when produced, whether taken in kind or settled in cash.
______________________________________________________________________________
United States
U.S. production on a barrel of oil equivalent basis was essentially flat
with the 1993 level as increased natural gas production offset decreases in
liquids production. Overall, liquids production was down 2% from 1993 levels.
Development projects in the Mobile Bay area increased Mobil's share of gas
production from the Mary Ann and Mobile Bay 823 offshore Alabama fields, to
140 MMCFD. This was an increase of 17% from 1993 levels. Future development
is expected to increase Mobil's share of production in this area to 250 MMCFD
by 1997. Horizontal wells drilled in the Main Pass, High Island, and East
Cameron areas in the offshore Gulf of Mexico produced at three times the rate
of conventional vertical wells. The successful application of this technology
will extend the life of these mature fields, allow for fuller exploitation of
the existing reserves, and serve to expand other opportunities.
Mobil - 3 -
Significant developments -- continued
The effects of asset sales and the natural decline of mature fields were
partially offset by increased heavy oil production in California. Mobil
continues to utilize steam injection technology to take advantage of its large
reserves of heavy oil. We expect heavy oil production to increase from 1994's
level of 87 TBD to 91 TBD by the end of 1995. This will match the capacity of
Mobil's M-70 pipeline to Mobil's Torrance refinery.
Canada
Development of the Hibernia oil field, offshore Newfoundland, continued.
The drydock portion of the gravity base structure (GBS) construction project
was completed in 1994. The drydock was flooded and the GBS was moved to the
deep-water construction site. Production start-up is expected in late 1997.
Mobil's share (33.1%) of the plateau production rate of 125 TBD will be 41 TBD
of oil production.
Last year, Mobil acquired Husky Oil Operations Ltd.'s natural gas interest
in the Sable Island area, and now holds an aggregate of about 40% in known
natural gas discoveries on the Scotian Shelf. In 1994, Mobil and partners
announced the signing of agreements with several pipeline companies to begin
planning development of these natural gas resources for northeast markets.
Europe
In the United Kingdom, Mobil produced a record 70 TBD of liquids and 470
MMCFD of natural gas in 1994, yet additions to proved reserves replaced 111%
of production. Liquids and natural gas production were up 21% from 1993, from
interests in 18 offshore oil and gas fields. Increased liquids production
reflects the first full year of production from the Scott and Hudson fields,
which came on stream in 1993. In the Southern Gas Basin, the Excalibur field
(Mobil share 100%) was brought on stream ahead of schedule in mid-1994,
delivering gas at a rate of 85 MMCFD.
Mobil's development activity in the U.K. remains high, with 10 new fields
due on stream by 1996, and production projected to rise from 154 thousand
barrels per day of oil equivalent (TBDOE) in 1994 to over 180 TBDOE by 1996.
In Norway, Mobil produced 95 TBD of liquids and 49 MMCFD of gas, primarily
from the Statfjord and Oseberg fields. Statfjord East began production in
late 1994, and Statfjord North came on stream in early 1995. The Oseberg
East satellite is expected to begin production in 1998.
Plans are being finalized to develop the Sm rbukk field (Mobil share 8.7%,
180 MMBOE) in the Norwegian Sea. Development is scheduled to begin in late
1995 with production start-up in 2000.
Mobil acquired an 18.5% interest in the Njord field. Development of the
field will commence in 1995 with first oil production scheduled for late 1997.
Mobil's share of the plateau production will be 12 TBD.
Mobil - 4 -
Significant developments -- continued
In Germany, Mobil produced 368 MMCFD of natural gas and 6 TBD of crude oil.
Development of the Walsrode gas field (Mobil share 97%) continued with 2 wells
being drilled. Proved reserve additions in 1994 replaced 177% of Mobil's
German gas production.
Expansion of Mobil's in-ground natural gas storage facilities in Germany
continued during 1994, positioning Mobil to handle the increasing storage
requirements of the growing German natural gas market. Phase 3 of the
Doetlingen storage (Mobil share 33%) expansion was completed. The Reitbrook
storage (Mobil share 50%) expansion continued with 2 wells being drilled. The
first well for the Breitbrunn storage venture (Mobil share 19.7%) in Bavaria
commenced drilling in the fall of 1994.
Indonesia
The Arun field, located in northern Sumatra, supplied virtually all Mobil's
Indonesian production. In 1994, Mobil's share of production volumes averaged
1,654 MMCFD of natural gas, 41 TBD of condensate and 36 TBD of liquefied
petroleum gas (LPG). A new record of 224 LNG cargoes were shipped in 1994.
Other discovered fields in the area will be developed to meet sales
contracts when Arun's production goes into decline. Development of the
onshore South Lhok Sukon A and D fields will begin in 1995, with initial
production in 1997, followed by the smaller Pase field. The North Sumatra
Offshore "A" field development is scheduled to begin in 1996, with production
commencing in 1999.
Outside northern Sumatra, Mobil increased its interest in the Madura block,
offshore East Java to 68.1%. Development of the Madura BD field will begin in
1995. Madura gas production will provide fuel for electric power generation
in East Java.
Nigeria
Mobil's 40% share of joint venture operations in Nigeria set a new record
for crude oil and condensate production of 175 TBD in 1994. This is 4% higher
than 1993 production and the seventh consecutive year of record production.
Mobil's annual average equity production is expected to rise to over 240 TBD
by 1998. The increases are expected from new developments such as Oman/Usari,
Inanga, Oso NGL, and Asasa, additional horizontal wells in Ubit and Enang
fields and major extensions or upgrades to existing facilities such as Edop,
Unam and Ekpe.
The production increase during 1994 was largely from horizontal infill
wells in the Ubit field, development wells in the Enang field and region-wide
well workovers. Also, significant production increases have been made by
improving production procedures and optimizing existing critical gas lift
systems.
Mobil - 5 -
Significant developments -- continued
Plans are being finalized to recover natural gas liquids (NGL) from the Oso
field before reinjection of the residue gas into the reservoir. Mobil expects
to recover 170 million barrels of NGL during the 25-year project life. A peak
rate of 26 TBD will be attained in 1998. Major engineering, procurement and
construction contracts were awarded in February, 1995.
Other planned major projects to extend Mobil's future growth in production
include Omon/Usari field development with peak production of 44 TBD in the
year 2000 and Yoho field development with peak production of 26 TBD in 2001.
Horizontal wells are programmed to add over 12 TBD from the Ubit and Enang
fields. The development of the Edop field will continue in 1995 with the
drilling of 18 more wells from four well platforms. At full development in
1998, there will be a total of eight platforms flowing into the central
producing platform. The current production of 40 TBD will be maintained
beyond 1997 with these additions. In 1993, Mobil signed a production sharing
contract on a deep-water tract covering 565 thousand acres in close proximity
to existing Mobil operated joint venture acreage. In 1994, Mobil and partners
commenced exploration in this deep water tract.
Other Areas
Qatar
In 1994, the Qatargas liquefied natural gas (LNG) venture (Mobil share 10%)
expanded to three trains when an agreement was completed for the sale of an
additional two million metric tons of LNG annually to supply seven Japanese
gas and electric utilities. Mobil added 61 MMBOE of proved reserves in 1994
based on our share of the additional sales, increasing our total proved
reserves in Qatar to 181 MMBOE. Engineering and construction of the first two
trains are on schedule to commence LNG deliveries in 1997. Deliveries from
the third train are expected to begin in 1999.
The Ras Laffan LNG venture (Mobil share 30%) drilled its first North field
appraisal well in early 1994, confirming a prime block consisting of over
35,000 acres for initial project development. Sales contracts for Ras Laffan
LNG are at an advanced stage of negotiation with Korea Gas Corporation.
Additional LNG sales are under discussion in traditional markets such as Korea
and Taiwan, as well as in emerging markets such as India and Turkey.
Australia
Mobil's first Australian production commenced in January 1994 from the
Griffin, Scindian and Chinook fields, and combined liquids and natural gas
production averaged 25 TBDOE for the year. The field complex was developed
with subsea wells and a Floating Production Storage and Offloading System.
The associated Griffin gas plant, located onshore (68 km from the field), was
commissioned in December 1994. Mobil's exploration activity has expanded to a
total of 10 exploration permits located on the North West Shelf covering 8.1
million acres. An active drilling program will be initiated in 1995 with 6
exploration wells and 2 appraisal wells planned.
Mobil - 6 -
Significant developments -- Continued
New Business Development (NBD)
The creation of the NBD units, in operation for their first full year in
1994, improved the focus on business development of exploration and producing
activities within each of the operating regions: Americas,
Europe/Russia/Africa, and Asia/Pacific/Middle East. Mobil is involved in
developing opportunities around the world, including the following areas:
- In Kazakhstan, seismic tests were conducted in the northern Caspian Sea.
Mobil had been selected as the only U.S.-based company to participate in
an international consortium of six participants to carry out extensive
exploration of a 25 million acre area in the environmentally sensitive
northern Caspian Sea. The geophysical study is expected to last through
1996, after which member companies will have the right to select two
blocks each for drilling and development.
- In Russia, Mobil and its partner were awarded exclusive rights in December
1993 to negotiate a production sharing contract (PSC) for the exploration
of the 1.7 million acre Kirinskiy block, offshore Sakhalin Island.
Limited seismic tests were conducted here in 1994, and full exploration
activity will commence upon conclusion of negotiations and enactment of
pending Russian legislation. Elsewhere, Mobil continues to monitor
exploration and development opportunities with partners in an area of
mutual interest covering over 95 million acres in the West Siberian Basin.
- In Malaysia, Mobil is operator of a joint venture (Mobil share 37%) with
several partners. With the award of two additional blocks during 1994,
Mobil now holds rights to over 4.3 million acres in deep water, offshore
Sarawak. Early in 1994, 6,100 kilometers of seismic data were acquired
and drilling of the first exploration well commenced in late 1994.
- In Vietnam, Mobil has a 32.625% interest in Block 05-01b located 175 miles
offshore. The first exploration well commenced in mid-1994 and operations
are still under way. A second well is scheduled for 1995. Also in 1994,
Mobil exercised its option to acquire a 25% stake in Block 05-03. Mobil
is participating in the drilling of two additional wells, the first of
which was started in December 1994.
- In Italy, Mobil farmed-in to a southern Apennines acreage portfolio in
1994. This acreage consists of seven exploration permits, plus pending
permits, as well as two exploitation concessions containing the recent
Tempa Rossa discovery. Mobil is currently awaiting formal approval from
the Italian government to finalize the farm-in. Plans for 1995 include
acquiring seismic data and conducting an extended production test of the
discovery well.
- In Equatorial Guinea, Mobil acquired a 65% interest in the 547,000 acre
Block B concession in April 1994. The block is in close proximity to
Mobil-operated production in offshore Nigeria. Mobil will drill an
exploration well during the first quarter of 1995 that will target the
same producing horizon present at Mobil's Edop field located 18 miles to
the north.
Mobil - 7 -
Significant developments -- continued
- - In Algeria, Mobil signed a production sharing contract in February, 1994 on
the 3.2 million acre Touggourt concession, located immediately northeast of
the giant Hassi Messaoud oil field. Exploration activity commenced in 1994
and negotiations are progressing toward an agreement to drill the first well
in 1995.
- - In South America, Mobil established a venture office in Caracas, Venezuela
and signed a letter of intent with Lagoven, an affiliate of Petroleos de
Venezuela (PdVSA), to evaluate the feasibility of developing heavy crude in
the Orinoco region. Mobil and Lagoven anticipate formation of a joint
venture in 1995 to begin detailed engineering design. In Peru, Mobil joined
in negotiations for exploration acreage adjacent to the large,
undeveloped Camisea gas and condensate discovery. In 1995, Mobil expects
to join in negotiations for development of Camisea. During 1994, Mobil
participated in an exploration well in the Block 62 concession in northern
Peru and began negotiations for exploration acreage in the Madre de Dios
area of southern Peru. In Bolivia, Mobil and partners continued evaluation
of the 2.5 million acre Madre de Dios concession in northern Bolivia.
Two exploration wells drilled in 1994 raised the number of wells drilled
since 1991 to a total of five.
Reserves
Mobil is required to report reserve estimates to the U.S. Department of
Energy. During 1994 Mobil filed proved reserve estimates covering the year
1993 under forms EIA-23, Annual Survey of Domestic Oil and Gas Reserves, and
EIA-28, Financial Reporting System. Such estimates were consistent with
reserve data filed with the Securities and Exchange Commission (S.E.C.).
______________________________________________________________________________
Wells in Process of Being Drilled Total
at December 31, 1994 Gross Net
______________________________________________________________________________
United States ......................................... 37 24
International ......................................... 37 19
-- --
Worldwide ............................................. 74 43
== ==
______________________________________________________________________________
______________________________________________________________________________
Improved Recovery Projects Being Installed In Operation
at December 31, 1994 Gross Net Gross Net
______________________________________________________________________________
United States .................... 1 1 252 99
International .................... 1 - 83 40
- - --- ---
Worldwide ........................ 2 1 335 139
= = === ===
______________________________________________________________________________
Mobil - 8 -
______________________________________________________________________________
------- International --------
Productive Wells at Other World- Mult.
December 31, 1994 U.S. Canada Europe Areas Total wide Compl.(a)
______________________________________________________________________________
Oil: Gross ....... 20,461 2,101 1,182 304 3,587 24,048 723
Net ......... 7,591 1,290 381 122 1,793 9,384 279
Gas: Gross ....... 4,591 1,162 518 78 1,758 6,349 752
Net ......... 2,837 279 149 77 505 3,342 395
(a) Multiple completions included in geographic totals.
______________________________________________________________________________
______________________________________________________________________________
Net Exploratory and ------- International --------
Development Wells Other World-
Drilled U.S. Canada Europe Areas Total wide
______________________________________________________________________________
1992
Exploratory wells
Productive ............. 33 1 3 3 7 40
Dry .................... 16 6 11 5 22 38
Development wells
Productive ............. 250 15 13 16 44 294
Dry .................... 10 1 - 2 3 13
1993
Exploratory wells
Productive ............. 23 6 5 2 13 36
Dry .................... 14 8 4 3 15 29
Development wells
Productive ............. 313 15 8 20 43 356
Dry .................... 15 1 - - 1 16
1994
Exploratory wells
Productive ............. 42 16 2 1 19 61
Dry .................... 19 19 7 9 35 54
Development wells
Productive ............. 393 13 14 6 33 426
Dry .................... 14 1 - - 1 15
______________________________________________________________________________
______________________________________________________________________________
Oil and Gas Acreage
at December 31, 1994 Undeveloped Acreage Developed Acreage
(Thousands of acres) Gross Net Gross Net
______________________________________________________________________________
United States .................. 5,819 3,643 4,868 3,034
International
Canada ....................... 8,993 7,134 2,024 1,062
Europe ....................... 16,750 8,196 1,754 626
Africa ....................... 19,433 10,586 718 281
Indonesia .................... 23,095 15,999 403 213
Other Areas .................. 38,064 16,252 76 27
------- ------ ------ -----
Total International ............ 106,335 58,167 4,975 2,209
------- ------ ------ -----
Worldwide ...................... 112,154 61,810 9,843 5,243
======= ====== ====== =====
______________________________________________________________________________
Mobil - 9 -
________________________________________________________________________________
Average Sales Price/Transfer Value
________________________________________________________________________________
The following table shows Mobil's average sales price/transfer value (transfer
values are essentially equal to third-party sales prices) and average production
costs in oil and gas producing activities in 1992, 1993 and 1994. In
calculating the "dollar per barrel" data, the divisor used is net production.
Natural gas volumes have been converted to oil equivalent barrels on a BTU
(British Thermal Unit) basis, with 5,626 cubic feet of gas per barrel. Mobil's
share of equity investees represents Mobil's share of results of operations for
producing activities of investees accounted for on the equity method. The
geographic segment "Other Areas", in this table, includes principally Indonesia
and Nigeria.
________________________________________________________________________________
UNITED STATES 1992 1993 1994
________________________________________________________________________________
Revenues
Crude oil (per barrel) ............................ $15.73 $13.54 $12.91
NGL (per barrel) .................................. $11.84 $11.25 $10.37
Natural gas (per thousand cubic feet) ............. $ 1.86 $ 2.22 $ 1.90
Average dollars per barrel of oil equivalent
Revenues .......................................... $12.09 $11.76 $10.51
Production (lifting) costs ........................ (4.62) (4.64) (4.48)
Exploration expenses .............................. ( .51) ( .31) ( .54)
Depreciation, depletion and amortization .......... (3.84) (4.01) (4.49)
Other operating revenues/(expenses) ............... ( .81) ( .20) ( .15)
Income tax expense ................................ ( .73) ( .87) ( .26)
------ ------ -------
Results of operations for producing activities ...... $ 1.58 $ 1.73 $ .59
====== ====== =======
Above results include the following special items:
Asset sales and write-downs ....................... ( .09) ( .06) ( .86)
Environmental provision ........................... - ( .02) -
Restructuring provisions .......................... ( .25) ( .05) -
Tax rate change ................................... - ( .11) -
Inventory adjustment .............................. - ( .09) -
________________________________________________________________________________
CANADA 1992 1993 1994
________________________________________________________________________________
Revenues
Crude oil (per barrel) ............................ $16.92 $14.83 $14.48
NGL (per barrel) .................................. $12.81 $12.53 $11.44
Natural gas (per thousand cubic feet) ............. $ 1.05 $ 1.37 $ 1.29
Average dollars per barrel of oil equivalent
Revenues .......................................... $ 9.93 $10.37 $ 9.90
Production (lifting) costs ........................ (4.61) (4.10) (4.00)
Exploration expenses .............................. ( .49) ( .36) ( .85)
Depreciation, depletion and amortization .......... (5.92) (3.20) (4.28)
Other operating revenues/(expenses) ............... ( .11) .26 .16
Income tax expense ................................ .67 ( .24) .20
------ ------ ------
Results of operations for producing activities ...... $( .53) $ 2.73 $ 1.13
====== ====== ======
Above results include the following special items:
Asset sales and write-downs ....................... (1.48) .13 ( .83)
Restructuring provision ........................... ( .20) - -
________________________________________________________________________________
Mobil - 10 -
________________________________________________________________________________
EUROPE 1992 1993 1994
________________________________________________________________________________
Revenues
Crude oil (per barrel) ............................ $19.87 $17.42 $16.21
NGL (per barrel) .................................. $15.60 $14.55 $11.69
Natural gas (per thousand cubic feet) ............. $ 3.16 $ 2.87 $ 2.70
Average dollars per barrel of oil equivalent
Revenues .......................................... $18.83 $16.70 $15.58
Production (lifting) costs ........................ (6.95) (5.85) (5.30)
Exploration expenses .............................. (1.71) (1.65) (1.16)
Depreciation, depletion and amortization .......... (4.30) (3.18) (3.43)
Other operating revenues/(expenses) ............... 1.28 .52 0.53
Income tax expense ................................ (4.35) (3.18) (3.68)
------ ------ ------
Results of operations for producing activities ...... $ 2.80 $ 3.36 $ 2.54
====== ====== ======
Mobil's share of equity companies (a) ............... $36.14 $ .92 $ 1.99
====== ====== ======
Total ............................................... $ 3.15 $ 3.34 $ 2.53
====== ====== ======
Above results include the following special items:
Asset sales/write-downs (a) ....................... .18 - ( .13)
Restructuring provision ........................... ( .06) - ( .07)
Tax related items ................................. - .77 -
(a) Includes $26 million gain in 1992 from the sale of a 25% interest in an
Austrian producing venture.
________________________________________________________________________________
OTHER AREAS 1992 1993 1994
________________________________________________________________________________
Revenues
Crude oil (per barrel) ............................ $18.37 $16.51 $15.31
NGL (per barrel) .................................. $12.21 $10.09 $11.77
Natural gas (per thousand cubic feet) ............. $ 2.19 $ 2.12 $ 1.99
Average dollars per barrel of oil equivalent
Revenues .......................................... $14.47 $13.60 $12.97
Production (lifting) costs ........................ (3.00) (2.92) (2.70)
Exploration expenses .............................. ( .96) ( .64) (1.02)
Depreciation, depletion and amortization .......... (1.03) (1.20) (1.50)
Other operating revenues/(expenses) ............... .97 .82 .46
Income tax expense ................................ (6.82) (6.09) (5.53)
------ ------ ------
Results of operations for producing activities ...... $ 3.63 $ 3.57 $ 2.68
====== ====== ======
Mobil's share of equity companies ................... $ 1.55 $ 1.40 $ .89
====== ====== ======
Total ............................................... $ 3.41 $ 3.36 $ 2.54
====== ====== ======
Above results include the following special items:
Tax related items ................................. .29 .42 -
Restructuring provision ........................... ( .04) - -
_______________________________________________________________________________
WORLDWIDE 1992 1993 1994
_______________________________________________________________________________
Revenues
Crude oil (per barrel) ............................ $17.63 $15.53 $14.64
NGL (per barrel) .................................. $11.56 $10.07 $ 8.99
Natural gas (per thousand cubic feet) ............. $ 2.03 $ 2.12 $ 1.96
Average dollars per barrel of oil equivalent
Revenues .......................................... $13.94 $13.26 $12.38
Production (lifting) costs ........................ (4.52) (4.23) (3.98)
Exploration expenses .............................. ( .88) ( .70) ( .87)
Depreciation, depletion and amortization .......... (3.19) (2.79) (3.20)
Other operating revenues/(expenses) ............... .24 .34 .23
Income tax expense ................................ (3.30) (3.09) (2.79)
------ ------ ------
Results of operations for producing activities ...... $ 2.29 $ 2.79 $ 1.77
====== ====== ======
Mobil's share of equity companies ................... $ 3.20 $ 1.37 $ .96
====== ====== ======
Total ............................................... $ 2.32 $ 2.73 $ 1.75
====== ====== ======
Above results include special items, net ............ ( .17) .20 ( .40)
_______________________________________________________________________________
Mobil - 11 -
PETROLEUM OPERATIONS -- DOWNSTREAM
Refining
At December 31, 1994, Mobil owned or had an operating interest in 21
refineries in 12 countries. Mobil's share of crude oil refinery capacity was
2,277 TBD, 41% of which was located in the United States. Worldwide
utilization of Mobil's refining capacity averaged 91% in 1992, 94% in 1993 and
92% in 1994.
Significant developments in 1994 in Mobil's refining operations included the
following projects:
- At Torrance, California, an upgrading project was approved that will
enable the refinery to produce gasoline meeting California Air Resource
Board future requirements.
- In Singapore, a refinery expansion and upgrading project to increase
gasoline production at Jurong was completed in early 1994.
- At a refinery (Mobil share 50%) in Chiba, Japan, construction was
completed in 1994 on projects which upgrade lower-value residual fuels to
higher-value products, and allow the refinery to produce low-sulfur diesel
fuel.
- In Australia, a contract has been signed to replace, by late 1996, an
obsolete upgrading unit at Altona with a fluid catalytic cracker,
increasing gasoline and distillate production at the refinery.
- In Saudi Arabia, the Petromin Lubricating Oil Refining Company (Mobil
share 30%) announced the construction of a new lubricant base stock
refinery in Yanbu, Saudi Arabia, scheduled to be streamed in early 1997.
- At a refinery (Mobil share 25%) in Kawasaki, Japan, a project to upgrade
lower-value residual fuels to higher-value products, suitable for the
Japanese market, has been scheduled for completion by late 1996. Mobil's
refinery entitlement share is 50%.
Marketing
______________________________________________________________________________
Petroleum Sales Volumes By Product (TBD) 1992 1993 1994
______________________________________________________________________________
Automotive gasoline ............................ 1,062 1,152 1,216
Jet fuel ....................................... 201 215 246
Distillate ..................................... 838 895 911
Other products ................................. 643 672 702
----- ----- -----
Total .......................................... 2,744 2,934 3,075
===== ===== =====
______________________________________________________________________________
Petroleum products are marketed extensively in the U.S. and in more than 90
other countries. Mobil has about 19,500 retail outlets, about 45% of which
are located in the United States. Petroleum products include automotive and
aviation gasolines, motor oils, lubricants and greases, marine fuels, jet
fuels, fuel oil, diesel oil, kerosene, asphalts, naphthas, solvents, waxes and
liquefied petroleum gas.
Mobil - 12 -
Marketing -- continued
The principal brand names identifying Mobil's products are "Mobil Unleaded",
"Mobil Super Unleaded+", "Mobil Special", "Mobil Regular", and "Mobil Premium"
gasolines, and "Mobiloil", "Mobilheat", "Mobilgrease", "Mobil 1", "Delvac 1",
and "Mobil" industrial and marine lubricants and process products.
In Tianjin, China, a project was approved for the construction of a
lubricant blending plant which will be streamed in mid-1997. This is the
first 100% foreign-owned oil industry facility approved in China. Mobil also
announced programs to enter the lubricants market in Venezuela and the retail
fuels market in Peru.
Tankers
At December 31, 1994, Mobil owned 29 ocean-going tankers with an aggregate
of 3,971 thousand deadweight tons, of which one, with a capacity of 49
thousand deadweight tons, was registered in the United States. An additional
4 tankers, aggregating 324 thousand deadweight tons, were under term charter.
Mobil's second double-hull, 280 thousand deadweight-ton, very large crude
carrier was ordered in 1994, with estimated delivery in mid-1996. The vessel,
with a capacity of 2.2 million barrels of crude oil, will be identical to the
"Eagle" which was commissioned in 1993.
Pipelines
At December 31, 1994, Mobil's U.S. pipeline system, including partly-owned
facilities, consisted of 15,157 miles of crude oil, natural gas liquids,
natural gas, and carbon dioxide trunk and gathering lines, and 7,939 miles of
product lines. Also at that date, Mobil's pipeline system outside the U.S.,
including partly owned facilities, consisted of 9,453 miles of crude oil,
natural gas liquids, and natural gas trunk and gathering lines, and 1,974
miles of product lines.
CHEMICAL OPERATIONS
Mobil Chemical, with manufacturing operations in 10 countries, is a large
producer of petrochemicals, packaging films, fabricated plastics and specialty
products.
______________________________________________________________________________
Mobil Chemical Facilities United Inter- World-
at December 31, 1994 States national (a) wide
______________________________________________________________________________
Petrochemicals ....................... 5 7 12
Plastics ............................. 16 6 22
Chemical products .................... 2 2 4
Research and development ............. 5 - 5
-- -- --
Total Chemical facilities ............ 28 15 43
== == ==
(a) Includes six partly owned facilities.
______________________________________________________________________________
Principal chemical products include basic petrochemicals (ethylene,
propylene, benzene, paraxylene), intermediates (ethylene glycol) and a key
derivative (polyethylene). Other products include specialty chemicals,
plastic films for packaging and industrial applications and fabricated plastic
products for consumer and industrial markets. The principal brand names
identifying Mobil Chemical's products are "Hefty", "Kordite", "Baggies" and
"Tucker".
Mobil - 13 -
Chemical Operations -- continued
Significant developments in 1994 in Mobil's chemical operations included the
following:
- In Jurong, Singapore, a new 600,000 metric tons per year aromatics plant
was streamed in the first quarter.
- Mobil announced projects that will more than double its worldwide
paraxylene production capacity which is currently 345,000 metric tons per
year. As part of these projects, a debottlenecking of the Jurong facility
is currently under way which will add about 30% to the original levels,
bringing paraxylene capacity to over 350,000 metric tons. Engineering
work is also under way to more than double the existing 70,000 metric tons
facility in Chalmette, Louisiana, and to construct a 275,000 metric tons
grass roots plant in Beaumont, Texas.
- Work is progressing on the expansion of an oriented polypropylene (OPP)
plant in Kerkrade, the Netherlands. This expansion, scheduled to be
streamed in the second quarter of 1995, will double OPP capacity at the
plant to over 60 million pounds in 1995.
- As part of its restructuring program, Mobil announced the closing of
plastics fabricating plants in Washington, New Jersey, and Woodland,
California, and the OPP films plant in Macedon, New York.
OTHER OPERATIONS
Mining and Minerals
Mobil Mining and Minerals produces and sells phosphate rock and fertilizers,
markets Mobil's recovered sulfur in the U.S. and administers other mineral
resources. Phosphate rock production totaled 2.3 million tons in 1994
compared with 1.7 million tons in 1993; net proved and probable reserves were
125 million tons at December 31, 1994, compared with 127 million tons at the
end of 1993. Phosphate minerals net sales to trade were $149 million in 1992,
$160 million in 1993 and $160 million in 1994. Development of a new phosphate
mine near Fort Meade, Florida, continued. The new mine is expected to start
up in 1995, with initial capacity of about 3.5 million tons per year.
Real Estate
Mobil Land Development Corporation (Mobil Land) carries on Mobil's real
estate activities in the United States. Mobil Land has various properties in
Arizona, California, Colorado, Florida, Georgia, Texas and Virginia. Mobil
Land sales to trade were $80 million in 1992, $128 million in 1993 and
$201 million in 1994. Rents to trade were $24 million in 1992, $28 million in
1993 and $29 million in 1994. Mobil Land is a 50% partner in a resort
community development in North Scottsdale, Arizona. Mobil Land and an
affiliated company are 90% partners in an office building venture in
Arlington, Virginia. Mobil Land is also the 100% owner of a commercial office
and retail complex in Reston, Virginia.
Mobil - 14 -
Research
Mobil engages in research and development, principally in the U.S.,
Australia, France, Germany, Japan, Norway and the United Kingdom. Activities
include the development of technologies and services which improve Mobil's
competitiveness in core business areas -- finding oil and gas, and converting
them to fuels, lubricants and chemicals while meeting environmental, health
and safety standards. Annual research expense was $326 million in 1992, $301
million in 1993 and $275 million in 1994.
Item 2. Properties.
Mobil and its subsidiaries own, lease or have interests in extensive
production, manufacturing, marketing, transportation and other facilities
worldwide. Information on these properties has been incorporated into
Item 1. Business.
Item 3. Legal Proceedings.
Environmental Litigation
Mobil periodically receives notices from the Environmental Protection Agency
(EPA) or equivalent agencies at the state level that Mobil is a "potentially
responsible party" under Superfund or equivalent state legislation with
respect to various waste disposal sites. The majority of these sites are
either still under investigation by the EPA or the state agencies concerned,
or under remediation, or both. In certain instances, Mobil and other
potentially responsible parties have been named in court or administrative
proceedings by federal or state agencies seeking the cleanup of these sites.
Mobil has also been named as a defendant in various suits brought by private
parties alleging injury from disposal of wastes at these sites. The ultimate
impact of these proceedings on the business or accounts of Mobil cannot be
predicted at this time due to the large number of other potentially
responsible parties and the speculative nature of clean-up cost estimates, but
based on our long experience in managing environmental matters, we do not
anticipate that the aggregate level of future remediation costs will increase
above recent levels so as to materially and adversely affect our consolidated
financial position or liquidity.
As previously reported, a criminal action, brought in 1992 by the Los
Angeles District Attorney in the California Superior Court, alleging
violations of the Health and Safety Code, the Water Code and the Fish and Game
Code by reason of a spill of approximately 1,700 gallons of crude oil from a
Mobil pipeline in Santa Clarita, California, was terminated in 1993. A civil
proceeding arising out of the same circumstances has not yet been brought by
the Attorney General of the State of California. However, the Attorney
General has now initiated discussions with a view to reaching agreement on a
pre-litigation settlement of the civil fines and penalties that would be
sought in such a proceeding. If such an agreement should be reached, the
amount of the settlement payment would likely exceed $100,000.
On January 27, 1995, discussions with the California Air Resources Board,
regarding the quantity of detergent additives in gasoline sold during 1992,
1993 and early 1994, as stipulated by the California Motor Vehicle Fuel
Additive Requirements set forth in the California Code of Regulations, were
concluded upon payment of $152,000, of which all but $64,000 was paid to
charitable institutions.
Mobil - 15 -
Legal Proceedings -- continued
The matters described in the two preceding paragraphs are not of material
importance in relation to Mobil's accounts and are described in compliance
with SEC rules regarding disclosure of such matters although not material.
Other Than Environmental Litigation
Mobil and its subsidiaries are engaged in various litigations and have a
number of unresolved claims pending. While the amounts claimed are
substantial and the ultimate liability in respect of such litigations and
claims cannot be determined at this time, Mobil is of the opinion that such
liability, to the extent not provided for through insurance or otherwise, is
not likely to be of material importance in relation to its accounts.
Mobil has provided in its accounts for items and issues not yet resolved
based on management's best judgement.
The Internal Revenue Service (IRS) has investigated the pricing of Saudi
Arabian crude oil by Mobil and other Arabian American Oil Co. (Aramco)
shareholder companies during the period 1979-1984. In January 1992, the IRS
assessed a tax deficiency against Mobil of about $300 million on this so-
called "Aramco Advantage" issue for the tax years 1980 and 1981. In April
1992, Mobil filed a petition in the U.S. Tax Court challenging the IRS
deficiency notice. If the IRS were ultimately to prevail, tax deductible
interest in excess of $1 billion would also be due. Mobil is presently
negotiating with the IRS to resolve the "Aramco Advantage" and certain other
tax issues. It is not possible to predict whether these negotiations will be
successful. If a court trial is required, final resolution could be several
years away. In December 1993, the U.S. Tax Court held that the IRS had
exceeded its authority in making large adjustments to increase the taxable
income of Exxon Corporation and Texaco Inc. (former Aramco shareholders) on
the "Aramco Advantage" issue. It is anticipated that the IRS will appeal this
decision.
Item 4. Submission of Matters to a Vote of Security Holders.
None submitted.
Mobil - 16 -
PART II
The information required by Items 5 through 7 is incorporated herein by
reference to Mobil's 1994 Annual Report to Shareholders. Below is an index to
the incorporated information.
1994
Annual
Report to
Shareholders
Item Description Page(s)
- ---- ------------------------------------------------ ------------
5. Market for Registrant's Common Stock and Related
Stockholder Matters .............................. 27
6. Selected Financial Data ............................ 56-57
7. Management's Discussion and Analysis of Results of
Operations and Financial Condition ............... 18-28,30,32
Item 8. Financial Statements and Supplementary Data.
See page 19 for a list of the financial statements and supplementary data
including those incorporated herein by reference to Mobil's 1994 Annual Report
to Shareholders.
Item 9. Changes in and Disagreements with Accountants on Accounting and
Financial Disclosure.
None.
PART III
Item 10. Directors and Executive Officers of the Registrant.
Item 11. Executive Compensation.
Item 12. Security Ownership of Certain Beneficial Owners and Management.
Item 13. Certain Relationships and Related Transactions.
For Item 10, the names and ages of the Executive Officers of Mobil as of
March 1, 1995, and the position(s) each of them has held during the past five
years, are provided on page 18 of this Annual Report on Form 10-K. The other
information called for by Item 10, and the information called for by Items 11,
12 and 13, is incorporated by reference to the Registrant's definitive proxy
statement for its Annual Meeting of Shareholders, to be held on May 11, 1995,
which will be filed with the S.E.C. within 120 days after December 31, 1994.
Mobil - 17 -
Information required by Item 10 of this report related to the names and ages
of the Executive Officers of Mobil Corporation as of March 1, 1995, and the
position(s) each of them has held during the past five years, is provided
below.
________________________________________________________________________________
Executive Officers of the Registrant
________________________________________________________________________________
Name (Age) Position(s) Held During Past Five Years Years Held
- ------------- ---------------------------------------------------- -------
Rex D. Vice President, Administration ..................... 1988 - Present
Adams (54)
Walter R. Vice President, Planning and Economics ............. 1991 - Present
Arnheim (50) Controller/Treasurer, Exploration and Producing
Division ......................................... 1988 - 1991
Thomas C. Senior Vice President, Chief Financial Officer ..... 1994 - Present
DeLoach, Jr. Executive Vice President - International,
(47) Marketing and Refining Division .................. 1993 - 1994
Vice President, Supply and Trading, Marketing and
Refining Division ................................ 1991 - 1993
Vice President, Planning and Economics ............. 1990 - 1991
Vice President and General Manager, U.S. Marketing,
Marketing and Refining Division .................. 1986 - 1990
Caroline M. Corporate Secretary and Secretary of the Board of
Devine (44) Directors and Executive Committee ................ 1994 - Present
Manager, Government Relations ...................... 1990 - 1994
Senior Public Affairs Advisor, Exploration and
Producing Division ............................... 1989 - 1990
R. Hartwell Treasurer .......................................... 1976 - Present
Gardner (60)
Samuel H. General Counsel .................................... 1995 - Present
Gillespie III Associate General Counsel, Mobil Corporation ....... 1994 - 1995
(52) General Counsel, Exploration and Producing
Division ......................................... 1990 - 1994
Associate General Counsel, Exploration and
Producing Division ............................... 1989 - 1990
Assistant General Counsel, Marketing and Refining
Division ......................................... 1987 - 1989
James T. Vice President, Corporate Public Affairs ........... 1993 - Present
Mann (52) Vice President and General Manager, U.S. Marketing,
Marketing and Refining Division .................. 1992 - 1993
Vice President, Planning, Marketing and Refining
Division ......................................... 1990 - 1992
President and General Manager, Mobil Land
Development Corporation .......................... 1987 - 1990
Robert C. Controller ......................................... 1988 - Present
Musser (54)
Lucio A. Chairman of the Board and Chief Executive Officer .. 1994 - Present
Noto (56) President and Chief Operating Officer .............. 1993 - Present
Chief Financial Officer ............................ 1989 - 1993
Vice President, Finance ............................ 1988 - 1993
Robert O. Senior Vice President, responsible for: Mobil
Swanson (58) Chemical Company; Mobil Mining and Minerals
Company; Mobil Land Development Corporation;
and Mobil Research, Engineering and
Environmental Affairs ............................ 1993 - Present
Executive Vice President, International, Marketing
and Refining Division ............................ 1985 - 1993
________________________________________________________________________________
Mobil - 18 -
PART IV
Item 14. Exhibits, Financial Statement Schedules and Reports on Form 8-K.
Mobil's consolidated financial statements, together with the report thereon
of Ernst & Young LLP, independent auditors, dated February 24, 1995, and
Supplementary Information appearing in Mobil's 1994 Annual Report to
Shareholders on the pages indicated below, are incorporated herein by
reference. With the exception of the aforementioned information, no other
data appearing in Mobil's 1994 Annual Report to Shareholders are deemed to be
filed as part of this Annual Report under Items 8 and 14. The charts, graphs
and associated captions appearing on pages 30 through 48 of Mobil's 1994
Annual Report to Shareholders are not incorporated into this Annual Report on
Form 10-K.
Financial Statement Schedules:
Page(s)
_________________________
1994 1994
Annual Annual
Report on Report to
Form 10-K Shareholders
--------- ------------
(a)1. Financial Statements.
Consolidated Statement of Income .......... - 29
Consolidated Statement of Changes in
Shareholders' Equity ..................... - 29
Consolidated Balance Sheet ................ - 31
Consolidated Statement of Cash Flows ...... - 33
Segment and Geographic Information ........ - 34,35
Notes to Financial Statements ............. - 36-48
Report of Ernst & Young LLP, Independent
Auditors ................................. - 49
Supplementary Information ................. - 27,50-53
Summarized Financial Data for Mobil Oil
Corporation .............................. 20 -
(a)2. Financial Statement Schedules.
Schedule II -- Valuation and Qualifying
Accounts.................................. 21 -
Schedules not included above have been omitted because they are not
applicable, not material, or the required information is given in the
financial statements or notes thereto or combined with the information
presented in other schedules.
(a)3. Exhibits
An index to exhibits filed as part of this Annual Report on Form 10-K is
included on page 23.
Mobil - 19 -
(b) Reports on Form 8-K.
Date of 8-K Description of 8-K
----------- ---------------------------------------------------
October 19, 1994 Submitted a copy of the Form of Note relating to the
issuance of $25 million Medium-Term Notes due October
19, 2009, and a copy of the Form of Note relating to
the issuance of $15 million Medium-Term Notes due
October 12, 2054.
October 21, 1994 Submitted a copy of the Mobil News Release dated
October 21, 1994, reporting estimated earnings for the
third quarter of 1994.
December 20, 1994 Submitted a copy of the Form of Note relating to the
issuance of $20 million Medium-Term Notes due December
20, 2006.
January 5, 1995 Submitted a copy of the Mobil Corporation By-Laws, as
amended to December 16, 1994.
January 20, 1995 Submitted a copy of the Mobil News Release dated
January 20, 1995, reporting estimated earnings for the
fourth quarter and full year of 1994.
(c) Supplemental Financial Information.
SUMMARIZED FINANCIAL DATA
Summarized financial data of Mobil Oil Corporation, a wholly-owned subsidiary
of Mobil Corporation, are presented below. The year-end net obligations to
Mobil Corporation amounted to $3,703 million in 1992, $2,676 million in 1993 and
$1,737 million in 1994.
Mobil Oil Corporation conducts an integrated petroleum business in the U.S.
and has many affiliates throughout the world -- separately incorporated and
independently operated -- that are engaged in petroleum operations. Mobil Oil
Corporation and some of its affiliates also engage in the manufacture and
marketing of chemicals. Mobil Oil Corporation or its predecessor companies have
been in business in the U.S. since 1866.
______________________________________________________________________________
MOBIL OIL CORPORATION
(Millions of dollars) 1992 1993 1994
______________________________________________________________________________
At December 31:
Current assets (a) ........................ $ 10,335 $ 10,863 $ 12,942
Noncurrent assets ......................... 23,904 24,209 25,006
Current liabilities (a) ................... (11,396) (11,113) (12,398)
Long-term debt ............................ (6,410) (6,218) (6,639)
Deferred credits and other liabilities .... (4,374) (4,617) (4,899)
Minority interests, primarily Mobil
Corporation ............................. (1,103) (1,138) (1,165)
-------- ------- -------
Net assets ................................ $ 10,956 $ 11,986 $ 12,847
======== ======= =======
Year ended December 31:
Gross revenues ............................ $ 61,083 $60,522 $ 64,032
Income before taxes and change in
accounting principle(s) ................. 1,261 2,274 2,487
Income after taxes but before change in
accounting principle(s) ................. 444 1,032 1,186
Cumulative effect of change in accounting
principle(s) (b) ........................ (353) - (680)
Net income ................................ 91 1,032 506
(a) 1993 data reclassified to conform with current year presentation.
(b) Reflects the adoption of FAS 106 (Employers' Accounting for Postretirement
Benefits Other Than Pensions) and FAS 109 (Accounting for Income Taxes) in
1992 and adoption of a change in the accounting method used to apply the
lower of cost or market test for crude oil and product inventories in 1994.
______________________________________________________________________________
Mobil - 20 -
FINANCIAL STATEMENT SCHEDULE
______________________________________________________________________________
MOBIL CORPORATION
SCHEDULE II--VALUATION AND QUALIFYING ACCOUNTS
For the Years Ended December 31, 1992, 1993 and 1994
(Millions of dollars)
______________________________________________________________________________
Balance Balance
Beginning End of
Description of Period Additions Deductions Period
- ----------------------------- --------- --------- ---------- -------
For the year ended
December 31, 1992:
Reserves deducted in the
balance sheet from the
assets to which they apply:
For doubtful accounts (a) .... $109 $ 74 $68 $115
For investments and
long-term receivables ...... 36 2 7 31
For deferred tax assets ...... - 134 - 134
For the year ended
December 31, 1993:
Reserves deducted in the
balance sheet from the
assets to which they apply:
For doubtful accounts (a) .... $115 $ 76 $63 $128
For investments and
long-term receivables ...... 31 4 3 32
For deferred tax assets ...... 134 37 - 171
For the year ended
December 31, 1994:
Reserves deducted in the
balance sheet from the
assets to which they apply:
For doubtful accounts (a) .... $128 $ 36 $42 $122
For investments and
long-term receivables ...... 32 3 - 35
For deferred tax assets ...... 171 256 48 379
(a) Deductions include accounts written off.
______________________________________________________________________________
Mobil - 21 -
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange
Act of 1934, the registrant, Mobil Corporation, has duly caused this report to
be signed on its behalf by the undersigned, thereunto duly authorized.
REGISTRANT MOBIL CORPORATION
/S/ROBERT C. MUSSER
By:_____________________________
(Robert C. Musser, Controller,
Principal Accounting Officer)
Date: March 13, 1995
Pursuant to the requirements of the Securities Exchange Act of 1934, this
report has been signed below by the following persons on March 13, 1995 on
behalf of the registrant and in the capacities indicated.
Signature Title
--------- -----
LUCIO A. NOTO* Director, Chairman of the Board and
------------------ President, Principal Executive and
(Lucio A. Noto) Operating Officer
THOMAS C. DELOACH, JR.* Principal Financial Officer
--------------------------
(Thomas C. DeLoach, Jr.)
ROBERT C. MUSSER* Controller, Principal Accounting Officer
---------------------
(Robert C. Musser)
DIRECTORS
Lewis M. Branscomb*
Donald V. Fites*
Paul J. Hoenmans*
Allen F. Jacobson*
Samuel C. Johnson*
Helene L. Kaplan*
William J. Kennedy III*
J. Richard Munro*
Aulana L. Peters*
Eugene A. Renna*
Charles S. Sanford, Jr.*
Robert G. Schwartz*
Robert O. Swanson*
*By /s/GORDON G. GARNEY
-----------------------------------
(Gordon G. Garney, Attorney-in-fact)
Date: March 13, 1995
Mobil - 22 -
EXHIBIT INDEX
EXHIBIT SUBMISSION MEDIA
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3(i).1 Certificate of Incorporation Incorporated by reference to Exhibit
of Mobil Corporation, as amended, 3-a(i) to the Registration Statement
in effect October 27, 1989. on Form S-3 (S.E.C. File No.
33-32651), filed under Form SE dated
December 14, 1989.
3(i).2 Certificate of Designation, Incorporated by reference to Exhibit
Preferences and Rights of Series 3-a(ii) to the Registration Statement
A Junior Participating Preferred on Form S-3 (S.E.C. File No.
Stock of Mobil Corporation dated 33-32651), filed under Form SE dated
April 25, 1986. December 14, 1989.
3(i).3 Certificate of Designation, Incorporated by reference to Exhibit
Preferences and Rights of Series 3-a(iii) to the Registration
B ESOP Convertible Preferred Statement on Form S-3 (S.E.C. File
Stock of Mobil Corporation dated No.33-32651), filed under Form SE
November 22, 1989. dated December 14, 1989.
3(ii).4 By-laws of Mobil Corporation, Incorporated by reference to Exhibit
as amended to December 16, 1994. 3.4 filed on Form 8-K dated January
5, 1995.
10.1 1991 Mobil Incentive Compensation Incorporated by reference to Exhibit
and Stock Option Plan. 15 to the Registration Statement on
Form S-8 (S.E.C. File No. 33-48887)
filed August 10, 1992.
10.2 1986 Mobil Incentive Compensation Incorporated by reference to Exhibit
and Stock Option Plan. 15 to the Registration Statement on
Form S-8 (S.E.C. File No. 33-5797)
filed May 20, 1986.
11. Computation of Earnings per Electronic
Common Share. (Page 24)
12. Computation of Ratio of Earnings Electronic
to Fixed Charges. (Page 25)
13. Mobil Corporation 1994 Annual Electronic
Report to Shareholders.
21. Subsidiaries of the Registrant. Electronic
(Pages 26-28)
23. Consent of Ernst & Young LLP, Electronic
Independent Auditors, dated
March 8, 1995. (Page 29)
24.1 Power of attorney dated as of Electronic
February 24, 1995, executed by
the Board of Directors of Mobil
Corporation authorizing execution
of Annual Report on Form 10-K.
24.2 Certified copy of Board of Electronic
Directors' Resolutions adopted
February 24, 1995, authorizing
signature by officers pursuant
to power of attorney.
27. Financial Data Schedule Electronic
Mobil - 23 -