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Earnings Presentation 3q
Earnings Presentation 3q
10.28.22
STRATHCONA
Cautionary Statement
FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, or expectations in this presentation or the subsequent discussion period are forward-looking
statements. Similarly, discussions of future carbon capture, biofuels, and hydrogen plans to drive toward net zero are dependent on future market factors, such as continued
technological progress and policy support, and represent forward-looking statements. Actual future results, including financial and operating performance; earnings, cash flow,
and rates of return; total capital expenditures and mix, including allocations of capital to low carbon solutions; cost reductions and efficiency gains, including the ability to offset
inflationary pressures; plans to reduce future emissions and emissions intensity; technology efforts, including timing and outcome of projects to capture and store CO2 and
produce biofuels; timing and outcome of hydrogen projects; maintenance and turnaround activity; price and margin recovery; shareholder distributions; the ability to access
debt markets; resource recoveries and production rates; and product sales levels and mix could differ materially due to a number of factors including global or regional changes
in oil, gas, petrochemicals, or feedstock prices, differentials, or other market or economic conditions affecting the oil, gas, and petrochemical industries and the demand for our
products; government policies supporting lower carbon investment opportunities such as the U.S. Inflation Reduction Act or policies limiting the attractiveness of investments
such as the European Solidarity Tax; the impact of trading activities; policy and consumer support for emission-reduction products and technology; the outcome of competitive
bidding and project wins; regulatory actions targeting public companies in the oil and gas industry; changes in local, national, or international laws, regulations, and policies
affecting our business including with respect to the environment; the development and transportation of our products; taxes, trade sanctions, and actions taken in response to
pandemic concerns; the ability to realize efficiencies within and across our business lines and to maintain cost reductions without impairing our competitive positioning; the
outcome and timing of exploration and development projects; and decisions to invest in future reserves, reservoir performance, including variability in unconventional projects;
timely completion of construction projects; war and other security disturbances; expropriations, seizures or capacity, insurance or shipping limitations by foreign governments
or law; actions of consumers and changes in consumer preferences; opportunities for and regulatory approval of investments or divestments that may arise; the outcome of our
or competitors’ research efforts and the ability to bring new technology to commercial scale on a cost-competitive basis; the development and competitiveness of alternative
energy and emission reduction technologies; unforeseen technical or operating difficulties including the need for unplanned maintenance; and other factors discussed here and
in Item 1A. Risk Factors of our Annual Report on Form 10-K and under the heading “Factors Affecting Future Results” available through the Investors page of our website at
exxonmobil.com. All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of this presentation and we assume no duty
to update these statements as of any future date. Neither future distribution of this material nor the continued availability of this material in archive form on our website should
be deemed to constitute an update or re-affirmation of these figures as of any future date. Any future update of these figures will be provided only through a public disclosure
indicating that fact.
U.S. GAAP earnings for the quarter were $19.7 billion. Reconciliations and definitions of non-GAAP and other terms are provided in the text or in the supplemental information
accompanying these slides beginning on page 19.
2
Creating sustainable solutions and growing
shareholder value
Leading Performance | Essential Partner | Advantaged Portfolio | Innovative Solutions | Meaningful Development
• Achieved best-ever quarterly refining throughput in North America and highest globally since 20081
• Strong quarterly oil and gas production; ~50 Koebd increase year-over-year to better serve demand
− Record in the Permian Basin
− Guyana grew to ~360 Kbd; Liza Phase 1 and 2 exceeding design capacity2; announced two new discoveries
− First LNG production was achieved from Mozambique’s Coral South FLNG development in October
• Asset sales delivered $2.7 billion in cash proceeds in the quarter, bringing the year-to-date proceeds to ~$4 billion
Reliable operations, strong production, and continued cost control in a tight market
12.0 1.0
2018 2019 2020 2021 2022
Cost to abate
($/tonne) • Expedited permitting and further regulatory action needed
140 to realize full potential of legislation
Becomes cost effective
with IRA 45Q
Cost effective
pre-IRA
• Broad deployment of commercial scale CCS will play a key
role in achieving society’s net zero emissions goals
70
0
Potential abatement of industrial CO2
ex. identified items1 versus 2019; on track to exceed $9 consistent with full-year range of
billion in annual savings by 2023 $21—24 billion
increased cash balance by $11.6 billion reduced net debt-to-capital to ~7% from $0.88 per share in 3Q; distributed
after funding capex and shareholder $8.2 billion to shareholders, including
distributions share repurchases
1 Reconciliation
to U.S. GAAP of $19.7 billion on page 8.
See Supplemental Information for definitions and reconciliations. 7
3Q earnings growth driven by higher refining throughput
and cost control, which more than offset margin declines
U/S EP CP SP C&F TOTAL • In the Upstream, higher natural gas realizations, which
reflected supply concerns, more than offset lower crude
2Q22 GAAP Earnings / (Loss) $11.4 $5.3 $1.1 $0.4 ($0.3) $17.9 prices
U.S. divestment 0.3 - - - - 0.3
2Q22 Earnings / (Loss) ex. identified
$11.1 $5.3 $1.1 $0.4 ($0.3) $17.6
items • Lower industry refining margins partially offset by favorable
Price / margin 0.7 (0.9) (0.3) 0.4 - (0.2) price and timing impacts
Unsettled derivatives: mark-to-market (0.2) 0.2 - - - 0.0
Volume / mix 0.2 1.0 (0.1) (0.1) - 0.9 • Higher volume / mix driven by strong reliability and
throughput in Energy Products, and Guyana and Permian
Expenses 0.0 0.0 0.1 (0.0) - 0.1 growth in Upstream
Other 0.1 0.2 0.1 0.0 (0.3) 0.2
3Q22 Earnings / (Loss) ex. identified
$11.8 $5.8 $0.8 $0.8 ($0.6) $18.7
items • Relatively flat expenses driven by lower maintenance and
Tax and other reserve items 0.7 - - - 0.4 1.1 structural cost reductions offsetting inflationary pressures
Non-U.S. divestments 0.6 - - - - 0.6
$ 11,072
• Increased Guyana and Permian volumes
2,040
2Q22 ex. Liquids Gas price Volume Expenses Other 3Q22 ex.
ident. items price / mix ident. items
600
$ 5,273 • Increased volume / mix driven by
190 $ 4,970 250 higher reliability, lower turnaround
20 activity, and improved yield
(1,500) − Record North American refinery
990
throughput1
− Highest quarterly global refining
throughput since 20082
2Q22 ex. Margin Volume Expenses Other 3Q22 ex. Unsettled Price / 3Q22 ex.
ident. items / mix derivatives derivatives timing ident. items
and timing • Favorable price / timing impacts from
declining crude prices
$ 1,076
• Improved product mix and sustained reliable operations
nearly offset the impact of economic sparing
$ 812
• Lower turnaround expenses
100
(130)
90
(80) 40 $ 762
• Lower volume on reliability issue, which was resolved within
(10) the quarter
400
$ 417
5.1
2.7
1.2
• Distributed ~$8.2 billion to shareholders, up $0.5 billion
versus 2Q; includes $3.7 billion in dividends
8.2
24.4 $30.5
1.1
• 3Q Capex of $5.7 billion brings year-to-date Capex to $15.2
billion; in line with full-year range of $21 - $24 billion
$18.9
• Net debt-to-capital reduced to ~7%, debt-to-capital at 19%
Energy
Products
• Slightly higher turnarounds and planned maintenance
Specialty
Products
• Slightly higher turnarounds and planned maintenance
• Strong earnings growth driven by higher refining throughput and cost control, which more than offset margin declines
• Continued to progress advantaged investments, drive efficiencies, and create sustainable solutions
• Strengthened portfolio by closing on sales of Romania Upstream affiliate and XTO Energy Canada; announced Aera Upstream
and Billings refinery divestments
• Diversified business, robust balance sheet, and strong cash position support continued investments and growing shareholder
distributions
GUYANA
Outlook for Fourth-Quarter 2022
Upstream scheduled maintenance earnings impact1 Energy products scheduled maintenance earnings impact3
Million USD Million USD
900 900
600 600
430 410
300 300
230 270
0 0
2021 quarterly 1Q22 2Q22 3Q22 4Q22 est. 2021 quarterly 1Q22 2Q22 3Q22 4Q22 est.
average average
Chemical Products scheduled maintenance earnings impact2 Specialty Products scheduled maintenance earnings impact4
Million USD Million USD
100 100
50
40
30
30
0 0
2021 quarterly 1Q22 2Q22 3Q22 4Q22 est. 2021 quarterly 1Q22 2Q22 3Q22 4Q22 est.
average average
See Supplemental Information for footnotes. 18
Supplemental Information
ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. Calculations are based on
industry standards and best practices, including guidance from the American Petroleum Institute (API) and IPIECA. The uncertainty associated with the emissions, reductions
and avoidance performance data depends on variation in the processes and operations, the availability of sufficient data, the quality of those data and methodology used for
measurement and estimation. Changes to the performance data may be reported as updated data and/or emission methodologies become available. ExxonMobil works with
industry, including API and IPIECA, to improve emission factors and methodologies, including measurements and estimates.
All references to production rates, project capacity, resource size, and acreage are on a gross basis, unless otherwise noted.
19
Supplemental Information
20
Supplemental Information
Free cash flow is cash flow from operations and asset sales less additions to property, plant and equipment, and additional investments and advances, plus other investing activities,
including collection of advances. This measure is useful when evaluating cash available for financing activities, including shareholder distributions after investment in the business. For
information concerning the calculation and reconciliation of free cash flow for historical periods, please see the Frequently Used Terms available on the Investors page of the company's
website at www.exxonmobil.com under the heading News & Resources.
21
Supplemental Information
As used on slide 9, “Liquids price” and “Gas Price” is included as part of the “Realization” category.
UPSTREAM EARNINGS FACTOR ANALYSIS (Million USD) 3Q22 vs. 2Q22
Prior Period 11,371
Realization 450
Volume / Mix 150
Expenses 40
Identified Items 280
Other 130
Current Period 12,419
As used on slide 10, “Russia curtailment” is included as part of the “Government Mandates” category; “Other” is included below as part of the “Downtime / Maintenance”,
“Entitlements / Divestments”, and “Demand / Other” categories.
UPSTREAM VOLUME ANALYSIS (Koebd) 3Q22 vs. 2Q22
Prior Period 3,732
Downtime / Maintenance 35
Growth / Decline 19
Entitlements / Divestments (25)
Government Mandates (16)
Demand / Other (29)
Current Period 3,716
22
Supplemental Information
“Margin,” “Unsettled derivatives,” and “Price timing” as used on slide 11 are included below as part of the “Margin” category.
ENERGY PRODUCTS EARNINGS FACTOR ANALYSIS (Million USD) 3Q22 vs. 2Q22
Prior Period 5,273
Margin:
Margin (1,500)
Unsettled derivatives 250
Price / timing 600
Total margin (650)
Volume / mix 990
Expenses 20
Other 200
Current Period 5,819
23
Supplemental Information
Slide 1 Slide 6
1. North America refining throughput record on a same-site basis. 1. U.S. National Petroleum Council (NPC), U.S. Energy Information Administration (EIA),
U.S. Environmental Protection Agency (EPA), Independent Commodity Intelligence
Slide 3 Services (ICIS) chemical growth, Electric Reliability Council of Texas (ERCOT) power
1. North America refining throughput record on a same-site basis. Highest global refining demand growth, McKinsey power demand modelling consistent with McKinsey report
throughput since 2Q08 on a same-site basis. “Navigating America’s net-zero frontier: A guide for business leaders” (May 5, 2022),
2. Gross basis; design capacity for Phase 1 is 120 Kbd and Phase 2 is 220 Kbd. McKinsey Global Downstream Outlook to 2035 for refining capacity growth, Greater
Houston Partnership (GHP) GDP growth, and ExxonMobil assumptions.
2. Legal framework for carbon capture and storage still being developed and could impact
Slide 4 returns or viability of projects.
1. 10-year range includes 2010-2019.
Slide 10
2. Source: S&P Global Platts. 1. Gross basis; design capacity for Phase 1 is 120 Kbd and Phase 2 is 220 Kbd.
3. Source: ICE. Equal weighting of Henry Hub and NBP.
4. Source: S&P Global Platts and ExxonMobil analysis. Net margin calculated by equal Slide 11
weighting of U.S. Gulf Coast (Maya – Coking), Northwest Europe (Brent – Catalytic 1. North America refining throughput record on a same-site basis.
2. Highest global refining throughput since 2Q08 on a same-site basis.
Cracking), and Singapore (Dubai – Catalytic Cracking) netted for industry average
Opex, energy and renewable identification numbers (RINS). Slide 14
5. Source: IHS Markit, Platts, and company estimates. Weighting of polyethylene, 1. North America refining throughput record on a same-site basis.
polypropylene, and paraxylene based on ExxonMobil capacity. 2. Includes PP&E adds of (4.9) billion and net investments / advances of (0.2) billion in
3Q22.
Slide 5 Slide 15
1. S&P Global Commodity Insights for 2018-2021; announced closures in 2022 based on 1. Subject to regulatory and third-party approvals.
public statements. Slide 16
2. Oil and gas production from Rystad Ucube Economic Model, all companies. 1. North America refining throughput record on a same-site basis.
Slide 18
1. Estimate based on October prices.
2. Estimate based on operating expenses related to turnaround activities.
3. Estimate based on September margins and operating expenses related to turnaround
and planned maintenance activities.
4. Estimate based on operating expenses related to turnaround and planned maintenance
activities.
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