Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2016)
72 slides from Exxon Mobil's investor day presentation, Mar 8, 2016
Slide 1: 2016 New York Analyst Meeting, March 2, 2016
Exhibit 99.2 2016 York New MarchAnalyst 2, 2016 Stock Meeting Exchange
Slide 2: Cautionary Statement
Cautionary Forward-Looking Outlooks, including recoveries; of political customers; under See statements Frequently References reserves determined and Regulation 1The factors. also information term thecategory or Item project_ heading financial projections, These as Used unexpected security project G
Slide 3: Agenda
9am Welcome Agenda Vice Creating Downstream 11am President, Q&AValue Management &… Through Investor Chemical: Jeff Woodbury, Relations the Committee Growing Cycle and Strategic the 12pm Secretary Advantage Meeting Overview Key Break Concludes Messages Energy Outlook Rex Tillerson, Differentiated Cha
Slide 4: Key Messages
Key Messages
Slide 5: Key Messages
•Key 4Resilient Relentless Messages integrated focus onbusiness businessmodel fundamentals through the commodity price cycle Disciplined and paced investment approach focused on creating value Commitment to reliable and growing dividend
Slide 6: Creating Value Through the Cycle: Strategic Overview
Creating Value Strategic Overview Through the Cycle
Slide 7: Growing Shareholder Value
Creatingindustry ExxonMobil Provide World-Class Risk Workforce Technology GROWING Leadership Integration VALUE Portfolio Delivering 6Management Value on Execution Strategy SHAREHOLDER Excellence Project commitments Investment Management Through leadership the&to Cycle: Operational – Differentiated m
Slide 8: Business Environment and Integrated Model
Creating Business 0‘Continued 50 100 150 $/Barrel Brent Source: Operational Maximizing Lowering Leveraging Investments 7Project 06 ‘07 execution ‘08 Bloomberg. Value Environment cost emphasis ‘09 integrated integrity based reliability structure Through ‘10on ‘11 on longer-term model ‘12 fundamentals
Slide 9: Risk Management and Operations Integrity
Creating Risk Operations Proven Focus Emphasis 8Minimizing management on approach, Value risk on Integrity environmental personnel assessment Through rigorously is Management at the and the and core impact process Cycle: applied management of System our Strategic safety business Overview
Slide 10: Environmental Protection
Creating Environmental Protect Greenhouse Net -5 ‘05 *-25 Mitigating Developing greenhouse 5.5 Advancing 9Engaging Cumulative -10 GW ‘06 Equity, -15 Tomorrow. ‘07 gross Value on -20 impact study ‘08 CO2-equivalent gases technology Gas climate since cogeneration Through Protection ‘09 Reductions of a
Slide 11: Business Delivers Industry-Leading Returns
Creating Business Delivers Understanding to Diverse Capture Structural 10 strength resilient asset upside industry-leading Value Integration advantage investments base of Through across full provides underpins value entire and the returns operations optionality chain Cycle: value financial through l
Slide 12: Capturing Value Across the Chain
Creating Value Capturing 11 Natural Upstream Crude Integrated Specialties Chemical Commodities Lubricants Refining Fuels LNG Global value achieve 80% chemical Selective the value ofChain Supply refining Gas best Value and chain investments the market value Management lubes highest organization Throu
Slide 13: Long-Term Organization Effectiveness
Creating Long-Term Dynamic Facility & Campus Sales Organization Centers Optimization Consolidations ganizational Management Expertise Portfolio Asset Shared Functional Operations Centralized Integrated Common Culture Houston innovation, Highgraded 12 Utilization Channel Optimization Services of Reli
Slide 14: Staffing Efficiency
Creating Staffing Currently Total E 0‘K 20 40 60 80 100 ExxonMobil 120 Mobil ‘00—‘04 ‘99 Average *‘15 Manage Capturing business Increasing Deploying Harmonizing 13 98 xxon Includes Employees* Efficiency long-term Average growth Value ‘05—‘09 38% efficiencies regular productivity technology processes
Slide 15: Cost Leadership
Creating Cost Benefiting 2015 14 0P 10 20 30 40 50 Percent life $11.5B operating Leading in Refining industry *Reducing rocurement Source:Solomon 2015 cycle Leadership Market net Upstream average* Value unit costs project from reduction organization Cost cash Through ongoing costs Savings costs Asso
Slide 16: Asset Upgrading
Creating Asset Upgrading Divestment 15 Proceeds Upstream: Downstream, $46B Upstream 300 Chemical 2.3 Refining 1.4 Retail Highgrading 17,000 Business Continuous Divest Acquisitions Value-based MTA MBD KOEBD Management Service end-of-life, Value Capacity simplification from Capacity Production $24B po
Slide 17: Financial Capacity
Creating Financial •*05Capacity 16 Chevron 200 300 AAA 400 $B Total A+ BP Substantial A- 100 Result opportunities Unmatched attractive Stable, investor %Total Leverage Standard A+ 10% Capitalization, Capitalization of Capitalization attractive inAA- 15% Value to prudent terms Flexibility resources &
Slide 18: Energy Outlook
Energy Outlook a M : J r ExonMobil
Slide 19: Global Energy Demand Growth
Creating Growth Global Quadrillion 0.9% 750 Average 250 1.5% 500 2014 0T Source: OECD Non-OECD energy Middle Energy well Efficiency Without growth 18 otal-0.1% below to 2040 demand energy Energy would use class 2040 ExxonMobil Led efficiency Growth/Year Value gains OECD per BTUs nations by expanding
Slide 20: Energy Demand by Fuel Type
Creating Energy Quadrillion Average 250 2014 200 0O 5.9% 50 2.9% 0.7% 100 -0.2% 150 Solar Nuclear Other Coal Gas Source: Wind *Renewable* Oil energy Higher Strong chemicals generation Global Demand stringent 19il Other and to 1.6% 2040 &growth mix Energy LNG oil Demand natural Renewable 2040 ExxonMo
Slide 21: Key Outlook Perspectives
Creating Key Outlook Affordable Diverse Technology Resource Free 20 Perspectives trade energy guides Value access and energy advancements sound, Through supplies our and solutions business substantial predictable are theexpand required Cycle: are strategy essential investments government energy Ener
Slide 22: Performance Differentiated Through the Cycle
Creating ValuePerformance Differentiated Through the Cycle
Slide 23: 2015 Results
Creating 22 2015 Results Workforce Employee U.S. 0.2 Leading ‘15 ‘14 ‘13 ‘12 ‘11 0.0 ExxonMobil 0.1 Cash $7.9% ROCE $16.2B Earnings and Shareholder $31.1B Capex *$1$32.7B ** 5.1B Source:American Includes asset Petroleum Results flow demonstrate safety Value sales and from Lost-Time dividends distrib
Slide 24: Proven Return on Capital Employed
Creating Proven Return ‘11 20 2015 50-Percent 10 15 average RDS CVX *XOM BP ROCE Strength management, Efficient by 23 5Competitor new toTOT ‘15, of on business investments of Value capital 7.9% Average Capital integrated data and Through inemployed model technology Employed 2015 estimated Capital po
Slide 25: Investment Asset Quality
Creating Investment Asset ‘14 $B ‘08 25 ‘15 50R 10 15 20 *‘13 XOM CVX BP TOT Portfolio commodity Selectively Effective installed Optimized 24DS Competitor to Impairments, capital Value Quality durable project operations investing discipline prices data Through costs execution across estimated After
Slide 26: Upstream Capital Efficiency
Creating Upstream Capital Average 50X 10 15 $/OEB High-quality, CVX RDS TOT BP Disciplined *73% 25 OM 2014 of Competitor efficiency proved Capital Value Capital investment efficient Through reserves Employed Efficiency underpins datacapital approach are estimated theper developed Cycle: long-term ba
Slide 27: Successful Proved Reserves Replacement
Creating Successful Proved Percent BOEB 0‘Reserves 10 25 15 50 75 20 100 125 ‘15 ‘10—‘14 91 Average Long 2015 liquids Value resource Rigorous *reporting on 26 95—‘99 Prior BOEB current proved reserve focused; replacement to Reserves Average base Value Replacement integrity ‘00—‘04 reserves 2009, res
Slide 28: Upstream Leading Earnings per Barrel
Creating Upstream Leading Earnings 5X 10 15 20 25 30 $/OEB 0B Disciplined ‘15 ‘14 ‘13 ‘12 ‘11 -10 RDS CVX -5 TOT over Improving Highgrading Capturing *Securing BP 27 P OM Competitor divestment. the long profitability Value per enhanced Earnings cost production and portfolio Barrel* term data savings
Slide 29: Integrated Free Cash Flow
Creating Integrated Free ‘11 20 50-$B 10 15 Proceeds BP TOT RDS CVX XOM ‘15 2015 2.8 6.0 5.0 5.7 2.4 Pay Invest Share *Industry-leading 28 5Competitor Asset to reliable Cash free buy-back ‘15, in Value attractive from Sales cash Flow Flow* business average and data flow Through program growing share
Slide 30: Reliable Long-term Dividend Growth
Creating Reliable Long-term ‘05 Percent 50S Source: BP RDS TOT* CVX *XOM 33rd Annual increases 10 2015 Quarterly 29&P TOT_s years toconsecutive Dividends ‘15, Dividend dividends Bloomberg. and Value growth dividend average dividend Growing Through $2.88 rates year Growth up $0.73 growth 10% based of
Slide 31: Share Buy-back and Shares Outstanding
Creating Share Shares 0‘Millions 1,000 2,000 3,000 4,000 5,000 6,000 *7,000 ‘15 2Q10* ‘08 ‘04 $3B Buy-back Since Reduced Returned including 30 00 XTOofthe Reductions purchases Outstanding share Energy of Value shares $357B Exxon dividends program Shares purchases Inc. Through outstanding efficiently
Slide 32: Forward Plans Creating Value Through the Cycle
Creating Plans Forward Value Through the Cycle
Slide 33: Disciplined Investment Approach
Creating Investment Disciplined 0‘Capex 10 20 30 Upstream Downstream 40 Chemical $B 2015 Average ‘18—‘20 ‘17 ‘16 ‘15 2016 31.1B 23.2B, Selectively Continued and Optimizing Flexible 32 14 capital Capex by down opportunity Value Business emphasis efficiency advancing Plan designs and $25% Through pace
Slide 34: Prudent Cash Flow Management
Creating *Prudent ** *** Cash 33 Asset Net Shareholder Growing Average ‘18—‘20 ‘17 ‘16 ‘15 ‘14 Ability Maintain investments attractive Capacity Share Presentation Net Investments** Shareholder flow Flow, Flow Sales* buy-back investments to Cash Value for cash financial opportunities cover from from
Slide 35: Deliverables
Creating Deliverables Achieve ROCE Maximize Integration Capital Selectively Upstream 4.0 Cash Growth Shareholder *Reliable 34Production toFlow 4.2 Discipline from industry-leading and Value long-term MOEBD Volumes value invest Distributions growing outlook investments, Through chain inshareholder th
Slide 36: Unlocking Upstream Value
ae eee Unlocking Upstream Value ExxonMobil
Slide 37: Competitive Upstream Business
Unlocking Competitive *Leading High-quality, Develop Operational Culture and Maximizing 36Competitor innovation of returns and continuous Upstream and resource Upstream deploy diverse data on commercial estimated capital advanced Value asset value improvement Business employed portfolio on excellenc
Slide 38: Consistent Upstream Strategy
Unlocking Upstream Consistent Strategy Maximize Reliable Lower installed Production Convert Development Efficient Investment highly Exceptional Quality Capture Broad resource Preferred Operational 37 resource profitable operating Resource attractive resources Objective opportunities capacity partner
Slide 39: Technology Leadership
Unlocking Technology Reservoir Applying 38 Full Next Advanced Digital Lower Increasing Wavefield generation drilling surveillance technology Simulation reservoir recovery Upstream Leadership and Inversion seismic completion modeling technology Value to Model create imagingvalue costs
Slide 40: Enhancing Production Base
Unlocking Production Enhancing North Norman Montney/Duvernay Kearl/Syncrude LaBarge Permian Chad Development Angola Conventional LNG Bass 2.3 10.5 25 39 BOEB MBD BCFD Strait Argentina Thailand Slope Indonesia Wells UAE Bakken liquids proved Upstream profitability Base gas Type PNG Gulf North Yemen p
Slide 41: Asset Optimization
Unlocking Asset Maximizing Incremental KOEBD 150 50 100 Sustained Optimization Reliability Production Improved Enhancing Improving Volume major Lowest profitable 40 +100 +105 Reliability projects cost uplift 200 to reliability ultimate Upstream base production incremental value produce equivalent pr
Slide 42: Managing Cost per Barrel
Unlocking Managing *Cost ‘15 ‘14 ‘13 ‘12 ‘11 10 15 XOM 20 BP 25 30 TOT 35 CVX RDS 40 $/OEB Disciplined Capturing Implementing Driving 41 synergies Cost Management per defined organizational Barrel* market-driven cost Upstream andlearnings as toconsistent production improve Value: effectiveness from
Slide 43: Flexible Drilling Program
Unlocking Flexible Positioned Drilling Incremental 600 KOEBD 0‘Planned 200 400 Progressing ‘18 ‘17 ‘16 Leverage opportunities Low-cost High-quality, Capability 42 15 and Drilling existing production to Upstream profitable Flexibility Work add adjust diverse Program and 200+ infrastructure Program ac
Slide 44: U.S. Unconventional Position
U.S.million Unlocking Near-term liquids 2.1 220 Low Enhancing Operating farm-ins 43 flexibility KOEBD Unconventional development plays position focus Upstream value position netcurrent acres on ofand enables athrough Permian net Value: 15+ Portfolio operating production BOEB development trades Relia
Slide 45: Reducing Unconventional Development Costs
Unlocking Enhancing Reducing Development Percent $/Foot Fracture 600 25 Permian* Bakken 30 100 800 50‘$/OEB 200 10 40 15 400 Drilling 60 20 80 ‘13 ‘12 2H14 ‘15 Accelerating 2H15 1H15 Extending Decreasing Capturing Optimizing *Operating 44 14 Dataspecific 1H14Improvement Stimulation 2H14 Drilling Per
Slide 46: Diverse Portfolio of Development Opportunities
Unlocking Diverse Portfolio Point Mackenzie Aasgard Alaska Odoptu Syncrude 91 Western Kearl Firebag Kashagan Hebron SAGD Sakhalin-1 Tengiz Ardmore/Marietta Domino Bakken Multiple Golden Permian West Heidelberg Barzan Upper Ca Liza Julia Short Erha Satellite Bosi Natuna Development Bonga Owowo Banyu
Slide 47: Balanced Resource Development
Unlocking Balanced Relative Pursue Projects Current Selectively Apply Cash Deploy Increasing 46 Flow high-impact high-quality world-class Average Size Development returns Unit Upstream Returns develop of Profitability Resource Unit and technologies Increasing project attractive resources Value: Prof
Slide 48: Efficient Development: Hebron and Arkutun-Dagi
Unlocking Efficient Industry-leading Development Project Arkutun-Dagi Innovative Cost-effective Hebron infrastructure 47 phasing GBS fit-for-purpose Upstream techniques Optimization planning GBS developments captures project Value: and mitigates designs management learning technologies Efficient lev
Slide 49: Differentiated Project Execution
Unlocking Differentiated Project Actual ExxonMobil 140 Percent Operated 22 Cost Schedule 100 110 120 130 Added 6interest On by 48Start-ups Major year-end track vs. more Execution Performance production to by project Planned, Upstream in start 2017 Others than Operated 2015 advantage up start-ups 940
Slide 50: Added Capacity from Major Projects
Unlocking Added Deep Heavy Erha Conventional Kearl Banyu Kizomba 2015 Leveraging Phased Greenfield 49 execution expansion infrastructure North Major Projects Water Expansion Oil Urip 300 capacity Satellites Upstream project KOEBD Phase existing Projects 2Phase /of Value: working 2 Efficient interest
Slide 51: Deep Water and LNG Projects 2016-2017
Unlocking 2016-2017 10 Deep LNG Gorgon Julia Kashagan Odoptu Hebron Conventional Sub-Arctic Arctic Upper 50 Projects Phase Water Zakum Stage Jansz Phase Upstream Major adding 1 2750 1Projects 450 Value: KOEBDEfficient of working Development interest capacity
Slide 52: Sakhalin Odoptu Stage 2
Unlocking Sakhalin Applying 55 290 World-class, intelligent Early Module 51 KBD Million gasfabrication gross OdoptuStage injection high-impact completions Upstream barrel extended-reach production oil delivering and Value: development technology 2civil capacity Efficient wells works increased to and
Slide 53: Upper Zakum Cost-efficient Development
Upperplateau, Unlocking Cost-efficient Currently Long Evaluating 52 Zakum producing Upstream resource additional island 750 KBD value development 660 Value: expansion gross KBD through Efficient production gross toconcept innovation 1 MBD Development and expertise
Slide 54: Advancing Projects 2018+
Unlocking 2018+ Advancing Heavy Potential 71.4 LNG Conventional 200 3Deep 300 Unconventional Net Peak: Canada Syncrude Firebag Golden PNG West Offshore 50K+ Sakhalin Tengiz Alaska 53 2030 2018 Romania Scarborough Guyana BOEB to Resource: toCoast Future Water 600 2.4 U.S. 600 300 500 Development Oil
Slide 55: Diverse Long-term Resource Base
Unlocking Diverse Long-term Laptev Kara Beaufort Chukchi Summit United Horn West Netherlands East Duvernay Canada Montney Greater Russian Romania Utica Bakken Gulf Iraq Haynesville Permian Marcellus Ardmore/Marietta C Equatorial Nigeria Liberia Colombia Guyana Rep. Tanzania Gabon Brazil Development
Slide 56: Focused Exploration Program
Unlocking Focused, Exploring East Sakhalin Canada Eastern Papua Gulf C Equatorial South Uruguay PNG Angola Opportunities Nigeria Guyana New 55te d_Ivoire Coast of areas Africa New Mexico /Canada Equatorial Paced near Guinea with Upstream Guinea near existing large Exploration existing Guinea Value:
Slide 57: Guyana Significant Discovery
Unlocking Guyana Significant Extensive 3000m Largest Multiple Cataleya Gulf OCS Stabroek Commenced Canje EM Legend 3D Development 014Liza Km Kilometers 80 56 200 0 Seismic 00 Interest Discovery of Block Mexico ever Offshore exploration acreage Upstream discovery Size Survey ExxonMobil drilling evalu
Slide 58: Upstream Summary
Unlocking Well Summary resource Relative New Projects Current Cash Increasing Diverse Pursuing Applying World-class Growing 57 positioned Opportunities Flow Average and Size value cash accretive high-impact Unit Upstream Returns operational flexible of flow Profitability to Resource Unit unlock new
Slide 59: Downstream & Chemical: Growing the Advantage
Downstream & Chemical Growing the Advantage
Slide 60: Premier Downstream and Chemical Businesses
Premier Most Downstream ‘11 50X 10 15 *20 BP RDS TOT CVX Leading Reliable Integrated Technology Superior 59OM Competitor toprofitable ‘15Integrated global and returns Average business leadership efficient & and data refiner Chemical: Downstream across Chemical estimated Percent Businesses optimizati
Slide 61: Downstream and Chemical Strategy
Downstream Leading Strategic Chemicals Lubricants Fuels Blend Terminals Pipelines Integrated Driving Improving Growing Increasing Optimizing 60 Plants operational Value Midstream high-value value Manufacturing logistics feedstock marketing &Chains andChemical: chains Chemical capabilities excellence
Slide 62: Integrated Manufacturing Assets
Downstream Integrated Advantaged Major Slagen Strathcona Augusta Altona Singapore 5Yanbu 35 136 61MBD MT KBD Refining Fife Baton chemical refining Fujian lube Manufacturing Rotterdam asset & Rouge basestock Trecate Chemical: &capacity capacity base Chemical Mont Antwerp supports Al-Jubail refining P
Slide 63: Advantaged Refining Efficiency
Downstream Advantaged Efficient Refinery Unit Industry ExxonMobil 130 ‘06 90 100 110 *Source: Refineries Industry-leading First annual Technology crude Expanding feed 62Constant ‘08 benefits Cost, quartile processing cost ‘10 Solomon 140 operations Unit 70% Indexed* foreign midstream ‘12 savings ena
Slide 64: Increasing Higher-Value Products
Downstream Higher-Value Increasing High-Value *Global ‘14 ‘12 ‘10 ‘08 ‘06 90 100 110 120 130 140 150 160 170 Investments Planned 180 Applying Doubled since Expanded Increased Providing 63High-value 2006 Product premium proprietary lubricants advantaged high-performance premium Products & products Re
Slide 65: Strengthening Global Fuels and Lubricants Positions
Downstream Global Strengthening Higher-value Broad quality, Synthetic in Expanding 64 complexity last decade portfolio Fuels reliability, lubricant sales & and outlet brand Chemical: offering networks Lubricants and sales for positions technology refining underpinned more and Growing Value and than
Slide 66: Feed-advantaged Chemical Platform
Downstream Advantaged Feed-advantaged U.S. Source: ‘15 ‘13 ‘11 ‘09 ‘07 ‘05 40 50 60 Industry 70 80 ExxonMobil 90 *IPercent Global with Flexibility Processing benefits globally Leveraging efficiently 65 ncludes refineries Ethylene manufacturing Jacobs than ethane expand to nearly base Chemical & capt
Slide 67: Growing Metallocene Product Sales
Downstream Growing Metallocene Volume, ExxonMobil 350 150 200 250 300 *Global ‘15 ‘13 ‘11 ‘09 ‘07 ‘05 100 Supplying above Increasing Leveraging technology, Positioned 66Metallocene-based GDP Chemical GDP Indexed differentiated diverse premium toglobal and Growth Products Metallocene &serve Chemical:
Slide 68: Increasing Investments in Feed and Logistics
Downstream Increasing Investments Crude Ethylene capacity expansion improvements Baton Baytown Beaumont Feed 2017 2016 New Premium domestic infrastructure lower-cost 67 capacity processing flexibility Rouge unit expansion /crudes and products polyethylene Feedstock ethane to & Mont for capture and C
Slide 69: Integrated Refinery Investments
Downstream Integrated Delayed Advanced Hydrocarbon Fawley Rotterdam Antwerp Upgrading 2016 2018 2017 Converting Highgrading premium basestocks into 68 intermediate / Coker Singapore ultra-low investments Hydrocracker Molecule bunker and gas refinery &Fluids distillates oil Chemical: chemicals fuel t
Slide 70: Selective Higher-Value Product Investments
Downstream Increasing Selective Synthetic Specialty Saudi 2017 2015 Singapore Blending Premium in and 69 Asia related adhesives Arabia investments synthetic halobutyl Mobil elastomers polymers lubricant Higher-Value products & Chemical: 1 rubbers plants facility rubber facility in specialty Products
Slide 71: Downstream and Chemical Summary
Downstream Focus Summary Driving Capturing Growing Selectively Generating 70 onoperational high-value business advantaged cash investing & Chemical: flow fundamentals efficiency products across from feedsGrowing diverse valuedelivering chains portfolio the Advantage superior results
Slide 72: Closing Comments
Closing Comments Relentless Resilient Disciplined Commitment 71 integrated focus and to paced reliable on business investment and growing fundamentals modelapproach through dividend focused the commodity on creating pricevalue cycle