Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2013)
80 slides from Exxon Mobil's investor day presentation, Mar 12, 2013
Slide 1: Analyst Meeting
Analyst Meeting New York Stock Exchange March 6, 2013 Exhibit 99.2
Slide 2: Cautionary Statement
Cautionary Statement Forward-Looking Statements. Outlooks, projections, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and oper
Slide 3: Agenda
Agenda 9 AM Welcome Corporate Overview Business Overview Strategic Overview Upstream Downstream and Chemical Break Summary 11 AM Q&A 12 PM Meeting Concludes Rex Tillerson, Chairman and CEO Mike Dolan, Senior Vice President David Rosenthal , Vice President, Investor Relations Rex Tillerson, Chairman
Slide 4: Corporate Overview
Corporate Overview Chairman and CEO Rex Tillerson
Slide 5: Key Messages
Key Messages Risk management is fundamental to our business Continued strong financial and operating results Major project start-ups drive volume growth for 2013 – Portfolio of opportunities for long-term profitable growth ExxonMobil strategy delivers superior returns over the long term
Slide 6: 2012 Results
2012 Results Strong industry safety performance Rigorous environmental management Superior financial / operating results Disciplined capex $39.8B Unmatched shareholder distributions* $30.1B Reserves replacement** 115% Strong results across key financial and non-financial parameters * Includes divide
Slide 7: Risk Management
Risk Management Management accountability High standards Employee and contractor training Operations Integrity Management Systems (OIMS) Risk management is fundamental to our business Well-developed and clearly- defined policies and procedures Rigorously applied systems
Slide 8: Safety
Safety Our vision: Nobody Gets Hurt Emphasis on personnel and process safety risk Committed to continuously improving safety performance Lost Time Incident Rate Incidents per 200K hours Safety performance improved versus 2011 * 2012 industry data not available. ** XTO included beginning in 2011.
Slide 9: Environmental Performance
Environmental Performance Strong environmental management Improving energy efficiency Reducing flaring, emissions, releases Protect Tomorrow. Today . Hydrocarbon Flaring from Upstream Oil & Gas Production Million metric tons Committed to reducing environmental impact * XTO included beginning in 2011
Slide 10: Earnings
Earnings Earnings of $44.9B in 2012, an increase of 9% over 2011 Strong performance across all business lines Leveraging integration advantages Maximizing value of asset base
Slide 11: Upstream Earnings per Barrel
Upstream Earnings per Barrel Managing the Upstream portfolio to improve earnings per barrel Current asset mix impacting results in the short term Plans in place to maximize value Disciplined and consistent approach over the long term Ongoing portfolio management Earnings per OEB* * Competitor data e
Slide 12: Return on Capital Employed
Return on Capital Employed ROCE of 25.4% in 2012 Investments position long-term performance Disciplined investment through the business cycle Strength of integrated portfolio, project management, and technology application Return on Average Capital Employed* Proven business model continues to delive
Slide 13: Free Cash Flow
Free Cash Flow Funded attractive investment opportunities Generated free cash flow of $138B since beginning of 2008 Provides capacity for unmatched shareholder distributions Total Free Cash Flow* $B, cumulative ‘08 – ‘12 Superior cash flow provides investment and distribution flexibility * Competito
Slide 14: Unmatched Shareholder Distributions
Unmatched Shareholder Distributions Total shareholder distributions of $145 billion Higher than competitors combined 4.5 billion shares outstanding Reduced from 7.0 billion post Exxon-Mobil merger and 5.1 billion post XTO acquisition Dividends per share increased 59% since beginning of 2008 21% per-
Slide 15: Distribution Yield
Distribution Yield Industry-leading shareholder distributions Total distribution yield of 29% since beginning of 2008 Nearest competitor at 23% Average annual distribution yield of 7.2% Competitor average of 4.7% Maintained strong financial position Distribution Yield* Percent, dividends and share r
Slide 16: Increasing Ownership
Increasing Ownership Production Growth per Share* Indexed growth, ‘08 – ‘12 Each share has an interest in 21% more production volumes Annualized production growth per share of 5% Nearest competitor at about 2% Reflects benefit of share purchases Enhanced per-share interest in ExxonMobil production *
Slide 17: Share Performance
Share Performance Financial results and stock market returns best viewed over long term Reflects strong financial and operating performance Competitive advantages maximize shareholder value Shareholder Returns $K, value of $1,000 invested (as of YE 2012) Long-term performance exceeds competitor aver
Slide 18: Business Overview
Business Overview Chairman and CEO Rex Tillerson
Slide 19: Business Environment
Business Environment Global environment offers a broad mix of challenges and opportunities Near-term economic growth remains sluggish with risks persisting in the OECD Developing economies show signs of stabilizing after slowdown in Significant regulatory initiatives continue while climate policies
Slide 20: Energy Demand to 2040
Energy Demand to 2040 Source: ExxonMobil 2013 Outlook for Energy * Other includes hydro, geothermal, biomass, wind, solar, and biofuels. Mix gradually shifts with oil and natural gas remaining prominent Higher oil demand driven by expanding transportation needs Strong growth in natural gas led by po
Slide 21: Developing Economies Lead Growth
Developing Economies Lead Growth Biomass Oil Nuclear Gas Source: ExxonMobil 2013 Outlook for Energy * OECD: Organization for Economic Co-operation and Development Asia Pacific demand accounts for close to 60% of global increase Non-OECD Countries* Quadrillion BTUs Other OECD Countries Coal Quadrilli
Slide 22: Liquids and Gas Supplies Expand and Diversify
Liquids and Gas Supplies Expand and Diversify Source: ExxonMobil 2013 Outlook for Energy Advances in technology enable growth from unconventional resources
Slide 23: Transportation Product Demand
Transportation Product Demand Transportation product mix will shift as demand rises more than 40% Demand for diesel driven by expanding commercial activity Gasoline demand will be relatively flat, reflecting fuel economy gains Diesel will surpass gasoline as the number one transportation fuel MOEBD
Slide 24: Global Chemical Demand
Global Chemical Demand Demand growth above GDP’s as standards of living improve Two-thirds of growth in Asia Pacific Chemicals provide cost and material attribute advantages Sources: IHS Chemical and ExxonMobil estimates * Chemical demand shown is polyethylene, polypropylene, and paraxylene. Global
Slide 25: The Energy Challenge
The Energy Challenge Meeting the world’s growing energy needs safely and responsibly Requires an abundance of diverse, reliable, and affordable supplies Demands a commitment to innovation and technology Requires access to high-quality resources Calls for unprecedented levels of investment and expand
Slide 26: Strategic Overview
Strategic Overview Chairman and CEO Rex Tillerson
Slide 27: Key Elements of ExxonMobil Strategy
Key Elements of ExxonMobil Strategy Best-in-class Upstream, Downstream, and Chemical businesses Effective risk management, safety, and operational excellence Integrated business model Disciplined processes World-class assets across all business lines Focus on profitability and returns Long-term appr
Slide 28: Upstream
Upstream Chairman and CEO Rex Tillerson
Slide 29: Leading Upstream Business
Leading Upstream Business Consistent execution of strategy delivers long-term value Industry-leading capabilities Successful track record of developing best-in-class resources Positioned for sustained growth Intense focus on profitability and differentiation from competition
Slide 30: Leading Deepwater Capability
Leading Deepwater Capability Identified and captured high-quality acreage Cost-effective hub and satellite development Operations practices delivering industry leading reliability Developing and applying high-impact technologies Transformed frontier acreage to large-scale production Angola-operated
Slide 31: New Developments - Gulf of Mexico
New Developments - Gulf of Mexico Leading Deepwater Capability Lucius and Hadrian South projects progressing toward 2014 start-up Hadrian North appraisal drilling Julia project long-lead items on order; engineering underway Exploration drilling and seismic activity ongoing Marine Well Containment Sy
Slide 32: Leading LNG Capability
Leading LNG Capability > 5 BOEB produced Qatar joint ventures gross cumulative production Developing and applying high-impact technologies Developing emerging LNG markets Extending LNG operating experience and project execution capabilities globally 1 st LNG cargo Ras Laffan JV established Train 1 R
Slide 33: New Developments - Papua New Guinea
New Developments - Papua New Guinea Leading LNG Capability High-quality 9 TCF resource Two-train 6.9 MTA LNG plant On schedule for start-up in 2014 Adding resource for a potential third train Applying global LNG experience and project execution capabilities
Slide 34: Leading Oil Sands / Heavy Oil Capability
Leading Oil Sands / Heavy Oil Capability > 1 BOEB produced Premier portfolio of long-plateau volumes Enabling technologies improve recoveries and reduce environmental impact Developing projects with strong earnings Cold Lake gross cumulative production High-quality resources and enabling technologie
Slide 35: New Developments - Kearl
New Developments - Kearl Leading Oil Sands Capability Facility start-up 1Q 2013 Proprietary technology Long-term plateau production Expansion project execution in progress ~30% complete Long-life resource begins production
Slide 36: Leading Arctic Capability
Leading Arctic Capability ExxonMobil interest & field program experience Arctic-like conditions Over 90 years of technology innovation in the Arctic 1970s
Slide 37: New Developments - Sakhalin and Hebron
New Developments - Sakhalin and Hebron Leading Arctic Capability Sakhalin Arkutun-Dagi Chayvo Onshore Expansion start-up Hebron Project sanctioned Develops 700 MBO Execution under way Applying proven arctic capabilities to progress additional developments Gravity-based structure complete Topsides fa
Slide 38: Leading Unconventional Capability
Leading Unconventional Capability Unmatched position in unconventional plays in North America Shale gas Tight oil Tight gas CBM Tight gas / CBM Heavy oil / Oil sands Shale oil (incl. liquids rich) Fayetteville 505K Woodford 385K Bakken 585K San Juan / Raton 445K Uinta 260K Piceance 320K Barnett 230K
Slide 39: Expanding Liquids-Rich Position
Expanding Liquids-Rich Position Leading Unconventional Capability Woodford Ardmore Bakken Permian Leading position in major plays drives significant liquids growth > 1.5 BOEB resource potential Most active unconventional play Infrastructure build-out progressing Growing core liquids position 0.9 BOE
Slide 40: Operational Excellence
Operational Excellence Leading Unconventional Capability 1,000 1,500 2,000 1,000 1,500 Consistent increase in wells per rig year yields reduction in drilling costs Continuing to extract value even with increasing well complexity Optimized completions yield higher recoveries Approach applied to globa
Slide 41: 2013 – 2017 Production Growth
2013 – 2017 Production growth Major project start-ups deliver significant volume growth Continued development of resource base Adding 1 MOEBD net by 2017 Significant growth in liquids and liquids-linked gas
Slide 42: Resource Base
Resource Base 2013 – 2017 Production Growth 87 BOEB – delivering today, positioning for tomorrow Large, diverse, and well-balanced portfolio of assets 25 BOEB proved reserves – current operations and projects in construction 27 BOEB – in design and development stages 35 BOEB – future development Res
Slide 43: Reserves Replacement & Resource Additions
Reserves Replacement & Resource Additions 2013 – 2017 Production Growth Proved Reserves Replacement* Annual Resource Additions** Consistently replacing reserves and adding quality resources * Reserves replacement based on SEC pricing bases and including asset sales, except as noted in the Cautionary
Slide 44: Projects Delivering Volume Growth
Projects Delivering Volume Growth 2013 – 2017 Production Growth Oil Sands Kearl Conventional Nigeria Satellites Arctic Arkutun-Dagi Deepwater Angola Satellites LNG Papua New Guinea Conventional Banyu Urip LNG Gorgon Jansz 31 major project start-ups between 2012 and 2017 Conventional Telok
Slide 45: Major Project Production Outlook
Major Project Production Outlook 2013 – 2017 Production Growth Major Project Production Outlook* Over 1 MOEBD net added by 2017 Portfolio supports long-term growth MOEBD Major projects deliver liquids and liquids-linked volume growth * Excludes impact of future divestments and OPEC quota effects. Pr
Slide 46: Upstream Production Outlook
Upstream Production Outlook 2013 – 2017 Production Growth Total Production Outlook* Liquids outlook Gas outlook Liquids + liquids-linked outlook: up 3 – 4% per year Total production outlook 2 – 3% growth per year through 2017 – strong contribution from liquids * Excludes impact of future divestments
Slide 47: Long-Term Growth Opportunities
Long-Term Growth Opportunities Well positioned for sustained long-term growth Successful exploration results Deep and robust inventory Adding quality acreage in proven and emerging plays
Slide 48: New Opportunity Growth
New Opportunity Growth Growth Opportunities Vietnam Beaufort Faroe Islands Madagascar Guyana Ireland New play tests Play Type Kara Sea Russian Black Sea Ukraine Growing global portfolio of high-quality resource opportunities South Africa Chukchi Sea Laptev Sea
Slide 49: New Opportunity Growth
New Opportunity Growth Growth Opportunities Vietnam Norway Abu Dhabi Beaufort Romania Iraq Tanzania Nigeria PNG Gulf of Mexico Australia Angola Faroe Islands Madagascar Guyana Ireland New play tests Play Type Proven conventional plays Kara Sea Russian Black Sea Ukraine Growing global portfolio of hi
Slide 50: New Opportunity Growth
New Opportunity Growth Growth Opportunities Vietnam Indonesia Norway Abu Dhabi Horn River Alberta tight oil Athabasca Beaufort Summit Creek Romania Iraq Tanzania Nigeria PNG Gulf of Mexico Australia Angola Faroe Islands Madagascar Guyana Ireland Permian Basin Woodford Utica Argentina Colombia New pl
Slide 51: Kara Sea
Kara Sea Growth Opportunities 31 million acres in Kara Sea Completed large field program Completed definitive agreements Expect to start drilling in 2014 Significant new exploration position in prospective Arctic
Slide 52: Russian Arctic
Russian Arctic Growth Opportunities Expanding strong partnership between ExxonMobil and Rosneft SCA licenses Expanded SCA licenses Expansion of Strategic Cooperation Agreement Additional 150 million acres Blocks among most promising offshore areas globally Leverages strengths of ExxonMobil and Rosne
Slide 53: Black Sea
Black Sea Growth Opportunities Established strong position in emerging new hydrocarbon province
Slide 54: ExxonMobil
ExxonMobil
Slide 55: Upstream Summary
Upstream Summary Successful track record of developing best-in-class resources and projects Near-term project start-ups deliver significant volume growth Continuing to expand differentiating capabilities Strong portfolio of opportunities Intense focus on profitability and differentiation from compet
Slide 56: Downstream and Chemical
Downstream and Chemical Senior Vice President Mike Dolan
Slide 57: Premier Downstream and Chemical Businesses
Premier Downstream and Chemical Businesses
Slide 58: Premier Downstream and Chemical Businesses
Premier Downstream and Chemical Businesses
Slide 59: Premier Downstream and Chemical Businesses
Premier Downstream and Chemical Businesses Operational excellence Industry-leading portfolio Superior financial performance Best-in-class operations Operating flexibility and optimization tools Technology-enabled, high-value product growth Balanced suite of pacesetter sites Disciplined portfolio man
Slide 60: Operational Excellence
Operational Excellence Strong reliability Advantaged cost position Technology leadership Operational metrics favorable versus competitors Steam cracker utilizations 1 – 2% above average Refining unit costs 10% lower than average Aromatics unit energy consumption 20% lower than average
Slide 61: North America Mid-Continent Advantage
North America Mid-Continent Advantage A leader in mid-continent refining capacity ExxonMobil mid-continent refineries processing ~100% advantaged crudes Maximizing value via integrated and flexible refining circuit Mid-Continent* Equity Refining Capacity Source: PIRA data, 3Q12 * United States and C
Slide 62: U.S. Gulf Coast Refining Optimization
U.S. Gulf Coast Refining Optimization Flexible integrated circuit capturing heavy and light crude opportunities Increasing advantaged crude runs Well positioned to benefit from industry logistics enhancements Advantaged Crude Processing Maximizing value via integrated and flexible refining circuit
Slide 63: Chemical Optimization – Ethane
Chemical Optimization – Ethane 17-fold increase in earnings contribution since 2007 Unmatched capacity to feed U.S. ethane Robust capability over wide range of feed price environments Feedstock flexibility capitalizes on changing price environment ExxonMobil U.S. Ethane Earnings Contribution Earning
Slide 64: High-Value Product Growth
High-Value Product Growth Industry leader in basestocks and synthetic lubricants Pioneered synthetic lubricant technology with premier Mobil 1 Doubled high-value synthetic lubes sales in the last decade Continual pursuit of high-value growth Mobil 1 Sales Volume, indexed Faster than industry growth
Slide 65: Premium Chemical Products
Premium Chemical Products Maximizing high-value specialties Differentiating commodities through technology Tripled earnings over the last decade High-value product portfolio drives earnings Premium Product Earnings 3-year moving average, indexed Premium margins Faster growth than industry
Slide 66: Downstream/Chemical manufacturing assets
Down stream/Chemical manufacturing assets ExxonMobil
Slide 67: Strengthening the Portfolio
Strengthening the Portfolio
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Slide 74: Industry-Leading Returns
Industry-Leading Returns Downstream and Chemical businesses outperform across the cycle Industry-leading financial performance Operational excellence Capital discipline Downstream and Chemical Combined ROCE * Competitor data estimated on a consistent basis with ExxonMobil and based on public informa
Slide 75: Break
2013 Analyst Meeting Break
Slide 76: Summary
Summary Chairman and CEO Rex Tillerson
Slide 77: Investment Plan
Investment Plan Capex by Business Line Expect to spend average of about $38 billion per year from 2013 to 2017 Plan to invest approximately $41 billion in 2013 Committed to investing through the business cycle Includes $3.1 billion for Celtic acquisition
Slide 78: ExxonMobil Strengths
ExxonMobil Strengths Relentless focus on maximizing long-term shareholder value Strong financial and operating performance Balanced portfolio Disciplined investing High-impact technologies Operational excellence Global integration
Slide 79: Key Messages
Key Messages Risk management is fundamental to our business Continued strong financial and operating results Major project start-ups drive volume growth for 2013 – Portfolio of opportunities for long-term profitable growth ExxonMobil strategy delivers superior returns over the long term
Slide 80: Q&A
2013 Analyst Meeting Q&A