IRVING, Texas -- Exxon Mobil Corp. said that for first-quarter 2006, earnings excluding special items were $8.4 billion, an increase of 14% or $1 billion from first-quarter 2005. First-quarter 2006 earnings were impacted by litigation and tax items. Net income was up 7%. There were no special items in first-quarter 2006. First-quarter 2005 net income included a positive special item of $460 million from the sale of ExxonMobil's interest in Sinopec. Cash flow from operations and asset sales was approximately $15 billion, including asset sales of $400 million.
Higher crude oil and natural gas realizations and improved marketing margins were partly offset by lower chemical margins. Net income for the first quarter was up 7% from 2005, said Irving, Texas-based ExxonMobil's chairman Rex W. Tillerson.
Upstream earnings were $6.383 billion, up $1.329 billion from first-quarter 2005. Earnings from U.S. upstream operations were $1.28 million, $73 million lower than first-quarter 2005. Downstream earnings excluding special items were $1.271 billion, up $128 million from first-quarter 2005, primarily due to higher marketing margins and improved refining operations. Petroleum product sales were 7,865 kbd, 364 kbd lower than last year's first quarter, primarily due to lower refining throughput and divestments. U.S. downstream earnings were $679 million, up $34 million from first-quarter 2005.
Separately, Houston-based Marathon Oil Corp. has reported first-quarter 2006 net income of $784 million, or $2.13 per diluted share. Net income in the first-quarter 2005 was $324 million, or 93 cents per diluted share. For first-quarter 2006, net income adjusted for special items was $739 million, or $2.01 per diluted share. For first-quarter 2005, net income adjusted for special items was $357 million, or $1.02 per diluted share.
In the first quarter, Marathon benefited from strong operational performance in all of our business segments, said Clarence P. Cazalot, Jr., Marathon president and CEO. Our downstream operations contributed to our strong results primarily due to the favorable refining margins and higher refined product sales volumes we experienced during the quarter. In addition, downstream results were significantly enhanced as a result of the minority interest acquisition completed June 30, 2005.
Total segment income was $804 million in first-quarter 2006, compared with $430 million in first-quarter 2005. Upstream segment income totaled $477 million in first-quarter 2006, compared to $334 million in first-quarter 2005. U.S. upstream income was $245 million in first-quarter 2006, compared to $177 million in first-quarter 2005. Downstream segment income was $319 million in first-quarter 2006 compared to $74 million in first-quarter 2005. A key driver of the increase in segment income was the company's refining and wholesale marketing gross margin, which averaged 11.37 cents per gallon in first-quarter 2006 versus 6.85 cents in the comparable 2005 quarter.
Speedway SuperAmerica's gasoline and distillate gross margin averaged approximately 10.55 cents per gallon during first-quarter 2006, essentially unchanged from the margin realized in first-quarter 2005. SSA achieved significant same-store gasoline sales volume growth of 3.3% during the first-quarter 2006 compared to first-quarter 2005. Also, SSA increased same-store merchandise sales by 10.2% during the same period. This marks the 13th consecutive quarter that SSA has achieved same-store merchandise sales growth of greater than 9% when compared to the same quarter from the previous year.
Marathon is on schedule to meet the federal Environmental Protection Agency (EPA) regulations which require ultra-low-sulfur diesel fuel production effective June 1, 2006. These modifications will complete the approximately $900 million capital project the company began in 2002 to comply with the Tier II gasoline and on-road diesel requirements of the Clean Air Act that are effective as of June 1, 2006.
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