Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q3 2024 Earnings Presentation
34 slides from Exxon Mobil's earnings presentation, Nov 1, 2024
Slide 1: 2024 3rd Quarter Earnings
2024 3rd Quarter Earnings Improved earnings power generating industry-leading shareholder value 11.01.24
Slide 2: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, expectations, plans, future earnings power, potential addressable markets, ambitions, or results in this presentation or the subsequent discussion period are forward-looking statements. Similarly, discussions o
Slide 3: Industry-leading results driven by structural improvements in earnings power
Industry-leading results driven by structural improvements in earnings power • 3Q24 earnings of $8.6 billion driven by advantaged portfolio and strong operational performance - Upstream delivered highest liquids production in over 40 years with unit earnings doubling since 2019 on a constant price b
Slide 4: Our strategy is delivering the industry's best performance
Our strategy is delivering the industry’s best performance 3Q24 GAAP earnings 3Q24 cash flow from operations 3Q24 Upstream production $8.6 Leading IOCs1 B $17.6 B Leading IOCs; $11.3 billion of free 4.6 Moebd >50% from advantaged assets cash flow2 YTD’24 capital and exploration Increased quarterly d
Slide 5: Driving earnings growth across our businesses
Driving earnings growth across our businesses Upstream Product Solutions Corporate Growing value from advantaged assets Growing earnings through strategic projects and Reducing structural costs and improving operations % advantaged assets of total Upstream production high-value products sales4 Billi
Slide 6: Integrated portfolio delivers leading performance across commodity cycles
Integrated portfolio delivers leading performance across commodity cycles • Brent averaged $80/bbl in 3Q24, down ~$5/bbl vs. prior Industry prices / margins quarter, reflecting uncertainty in supply and demand 10-year annual range1 balances • Natural gas prices improved during 3Q24 supported by summ
Slide 7: Enterprise-wide transformation: a platform for industry-leading earnings (3Q24 vs. 2Q24)
3Q24 vs. 2Q24 Enterprise-wide transformation: a platform for industry-leading earnings ENERGY CHEMICAL SPECIALTY CORP & UPSTREAM TOTAL PROD PROD PROD FIN 2Q24 GAAP Earnings / (Loss) $7.1 $0.9 $0.8 $0.8 ($0.3) $9.2 2Q24 Earnings / (Loss) ex. identified items (non-GAAP) $7.1 $0.9 $0.8 $0.8 ($0.3) $9.2
Slide 8: Enterprise-wide transformation: a platform for industry-leading earnings (YTD)
YTD‘24 vs. YTD‘23 Enterprise-wide transformation: a platform for industry-leading earnings ENERGY CHEMICAL SPECIALTY CORP & UPSTREAM TOTAL PROD PROD PROD FIN YTD’23 GAAP Earnings / (Loss) $17.2 $8.9 $1.4 $2.1 ($1.2) $28.4 Additional European taxes on energy sector (0.2) (0.0) - - - (0.2) YTD’23 Earn
Slide 9: Upstream: Advantaged assets delivering strong earnings growth
Upstream Advantaged assets delivering strong earnings growth Upstream year-over-year earnings ex. ident. items • Strong earnings growth driven by record Million USD Guyana and Permian volumes, including $1.2 billion contribution from Pioneer1 550 - Year-to-date production of 4.2 Moebd, and (1,000) y
Slide 10: Energy Products: Portfolio high-grading and structural cost savings improving results
Energy Products Portfolio high-grading and structural cost savings improving results Energy Products year-over-year earnings ex. ident. items • Doubled earnings versus 2019 on a Million USD constant margin basis1 $ 8,980 • Industry margins significantly down from historically high YTD’23 levels • Lo
Slide 11: Chemical Products: Earnings growth from high-value product sales
Chemical Products Earnings growth driven by increase in high-value product sales and advantaged North American footprint Chemical Products year-over-year earnings ex. ident. items • Improved margins on North America feed Million USD advantage and higher realizations 100 • High-value product sales gr
Slide 12: Specialty Products: Differentiated products underpin high-margin business
Specialty Products Differentiated products underpin high-margin business with consistently strong earnings Specialty Products year-over-year earnings ex. ident. items • Record YTD earnings driven by high-value Million USD products, revenue management, and feed optimization1 40 80 50 $ 2,306 • Struct
Slide 13: Effective capital allocation priorities growing shareholder value
Effective capital allocation priorities growing shareholder value Year-to-date cash flow • Strong earnings drove nearly $43 billion of Billion USD cash flow from operations, leading IOCs3 1.8 • Year-to-date cash capex of $18.2 billion supporting higher-return, advantaged (18.2) projects - YTD’24 cap
Slide 14: Forward guidance
Forward guidance Upstream Upstream Product Solutions Product Solutions Corporate Corporate • 4Q24 outlook: seasonal scheduled • 4Q24 outlook: modestly lower • 4Q24 outlook: corporate and maintenance to lower volumes by scheduled maintenance across financing expenses expected to be ~30 Koebd Product
Slide 15: Key takeaways
Key takeaways Industry-leading results driven by structural improvements in earnings power • Our strategy is delivering the industry’s best performance - Growing advantaged assets in Guyana and Permian delivering high returns - Portfolio high-grading and high-value products improving profitability a
Slide 16: Upcoming disclosures: Corporate Plan Update & Upstream Spotlight
Upcoming disclosures: Corporate Plan Update & Upstream Spotlight to be held on December 11th Q&A 11.01.2024
Slide 17: Upstream: Continued strong earnings driven by record production
Upstream Continued strong earnings driven by record production • Lower liquids realizations as record demand Upstream quarter-on-quarter earnings ex. ident. items Million USD was met by robust supply $ 7,074 • Lower contribution from advantaged assets (660) 160 volume driven by scheduled work on Liz
Slide 18: Energy Products: Higher earnings despite lower industry margins
Energy Products Higher earnings despite lower industry margins Energy Products quarter-on-quarter earnings ex. ident. items • Industry margins decreased as record Million USD quarterly demand was more than met by additional supply $ 1,309 • Higher volume / mix and lower expenses reflect lower planne
Slide 19: Chemical Products: High-value products growth driving earnings improvement
Chemical Products High-value products growth and advantaged footprint driving earnings improvement Chemical Products quarter-on-quarter earnings ex. ident. items • Highest quarterly earnings in over two Million USD years despite industry remaining at bottom-of-cycle conditions driven by Asia 40 Paci
Slide 20: Specialty Products: Portfolio of high-value products delivering strong earnings
Specialty Products Portfolio of high-value products consistently delivering strong earnings Specialty Products quarter-on-quarter earnings ex. ident. items • Increased margins from lower feed costs Million USD and revenue management 20 • Other reflects unfavorable tax and forex 0 (10) (0) (80) $ 794
Slide 21: 4Q24 maintenance outlook
4Q24 maintenance outlook Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact2 Million USD Million USD 600 900 ~730 +30 430 ~580 400 ~400 600 ~310 ~440 ~250 ~230 -110 290 ~280 -0 280 200 300 -80 200 0 0 4Q23 1Q24 2Q24 3Q24 4Q24 est. 4Q23 1Q24 2Q24 3Q2
Slide 22: Supplemental information
Supplemental information Forward-looking statements contained in this presentation regarding the potential for future earnings, shareholder distributions, returns, structural cost savings, capital and exploration expenditures, and volumes, including statements regarding future earnings potential, an
Slide 23: Supplemental information
Supplemental information Important information and assumptions regarding certain forward-looking statements. For all price point comparisons, unless otherwise indicated, we assume $60/bbl Brent crude prices and $3/mmbtu Henry Hub gas prices. Unless otherwise specified, crude prices are Brent prices.
Slide 24: Supplemental information: selected earnings factor definitions
Supplemental information SELECTED EARNINGS FACTOR DEFINITIONS Advantaged volume growth. Represents earnings impact from change in volume/mix from advantaged assets, strategic projects, and high-value products. See Supplemental information for definitions of advantaged assets, strategic projects, and
Slide 25: Supplemental information: definitions and non-GAAP reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Advantaged assets (Advantaged growth projects). Includes Permian (heritage Permian and Pioneer), Guyana, Brazil, and LNG. Base portfolio (Base). In our Upstream segment, refers to assets (or volumes) other than advan
Slide 26: Supplemental information: definitions and non-GAAP reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Government mandates (curtailments). Changes to ExxonMobil’s sustainable production levels as a result of production limits or sanctions imposed by governments. Heritage Permian. Permian basin assets excluding assets
Slide 27: Supplemental information: definitions and non-GAAP reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Returns, rate of return, investment returns, project returns, IRR. Unless referring specifically to ROCE or external data, references to returns, rate of return, IRR, and similar terms mean future discounted cash flo
Slide 28: Reconciliation of Upstream unit earnings
Supplemental information RECONCILIATION OF UPSTREAM UNIT EARNINGS UPSTREAM EARNINGS 2019 2021 2023 YTD’24 Earnings (U.S. GAAP) 14.4 15.8 21.3 18.9 Asset management (Announced divestments) (3.7) (0.5) (0.3) 0.0 Impairment 0.0 0.8 2.7 0.0 Tax / Other items (Tax items, Additional European taxes on ener
Slide 29: Reconciliation of Energy Products earnings
Supplemental information RECONCILIATION OF ENERGY PRODUCTS EARNINGS ENERGY PRODUCTS EARNINGS YTD’19 YTD’24 Earnings (U.S. GAAP) 0.8 3.6 Tax / Other items (0.0) 0.0 Earnings ex. identified items 0.8 3.6 Adjustment to 10-year average Energy Products margins 0.3 (1.2) Earnings, ex. identified items and
Slide 30: Cash capital expenditures
Supplemental information CASH CAPITAL EXPENDITURES 3Q24 Additions to property, plant and equipment 6,160 Net investments and advances 207 Total cash capital expenditures 6,367 CASH CAPITAL EXPENDITURES YTD’24 Additions to property, plant and equipment 17,469 Net investments and advances 727 Total ca
Slide 31: Free cash flow
Supplemental information FREE CASH FLOW 3Q24 Net cash provided by operating activities (U.S. GAAP) 17,569 Additions to property, plant and equipment (6,160) Proceeds from asset sales and returns of investments 127 Additional investments and advances (294) Other investing activities including collect
Slide 32: Calculation of structural cost savings
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2023 YTD’23 YTD’24 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 36.9 27.0 28.8 Selling, general and administrative expenses 11.4 9.9 7.3 7.4
Slide 33: Supplemental information: footnotes
Supplemental information Slide 3 Slide 5 1) Upstream 3Q24 production compared to historical annual production from 1984 to 2024; 1) Production adjusted to $60/bbl real Brent. Differences versus actual production include Upstream unit earnings ($/oeb) exclude identified items and are adjusted to 2022
Slide 34: Supplemental information: footnotes
Supplemental information Slide 12 1) Highest Specialty Products first-nine-months earnings on record. Records date back to 2017 per recast of Product Solutions five years back from formation in 2022. See EMPS recast databook in the “Investors” section of our website. Slide 13 1) Free cash flow defin