Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q1 2021 Earnings Presentation
38 slides from Exxon Mobil's earnings presentation, Apr 30, 2021
Slide 1: First Quarter 2021 Results
FIRST QUARTER 2021 RESULTS 4.30.21 STEPHEN LITTLETON VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARYFIRST QUARTER 2021 RESULTS 4.30.21 STEPHEN LITTLETON VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; planned capital and cash operating expense reductions a
Slide 3: Developments Since Fourth Quarter 2020
DEVELOPMENTS SINCE FOURTH QUARTER 2020 Improved liquids and gas realizations with market recovery UPSTREAM Lower government-mandated curtailments and higher seasonal European gas demand 1 Announced >$1 billion sale of U.K. central and northern North Sea assets Improved North America margins, continu
Slide 4: Results 1Q21 vs. 4Q20
RESULTS 1Q21 VS. 4Q20 U/S D/S CHEM C&F TOTAL • Price / margin improvements across all (18.5) (1.2) 0.7 (1.0) (20.1) 4Q20 GAAP Earnings / (Loss) businesses with demand recovery Identified items (19.3) (0.5) - (0.3) (20.2) 4Q20 Earnings / (Loss) ex. identified items 0.7 (0.7) 0.7 (0.7) 0.1 • Winter st
Slide 5: Upstream 1Q21 vs. 4Q20
UPSTREAM 1Q21 VS. 4Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD • Continued market recovery increased liquids, 2,554 170 natural gas, and LNG realizations (110) (80) • Higher volumes with lower government-mandated curtailments, more than offset by mix effects 2,070 • Continuing to deli
Slide 6: Upstream Volumes 1Q21 vs. 4Q20
UPSTREAM VOLUMES 1Q21 VS. 4Q20 CONTRIBUTING FACTORS TO CHANGE IN VOLUMES Koebd 3,787 • Government-mandated curtailments reduced to ~125 Koebd 40 70 3,689 • Higher seasonal European gas demand (40) 60 (40) • Permian and Guyana unchanged versus 4Q20 excluding winter storm impact − Permian up ~20% sinc
Slide 7: Downstream 1Q21 vs. 4Q20
DOWNSTREAM 1Q21 VS. 4Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD • Improved margins primarily on increased North America demand (40) • Jet demand remains weak with limited global travel (210) 380 • Structural efficiencies include maintenance (150) optimization, logistics, and marketin
Slide 8: Chemical 1Q21 vs. 4Q20
CHEMICAL 1Q21 VS. 4Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 1,415 • Captured improved industry margins with reliable polyethylene and polypropylene operations 180 150 • Continued robust performance products demand 100 in packaging and durable goods 713 500 • Delivered additional co
Slide 9: Earnings 1Q21 vs. 1Q20
EARNINGS 1Q21 VS. 1Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 1 • Total price / margin improvement of ~$1.3 billion 740 − Improvement in Upstream and Chemical margins 1,690 more than offset Downstream 1,070 − Absence of significant mark-to-market derivatives benefit due to rapid pric
Slide 10: Disciplined Investing and Cost Management
DISCIPLINED INVESTING AND COST MANAGEMENT CASH OPEX EXCLUDING ENERGY AND PRODUCTION TAXES Billion USD • Efficiencies and cost reductions on track, consistent with plans 10.2 (0.7) 9.2 (0.3) • Cash Opex structurally lower due to maintenance / turnaround efficiencies and workforce reductions 1Q20 Upst
Slide 11: First Quarter 2021 Cash Profile
FIRST QUARTER 2021 CASH PROFILE 1Q21 4Q20 • Stronger overall market fundamentals improved Beginning cash 4.4 8.8 cash flow Earnings / (Loss) 2.7 (20.1) Identified items: impairments - 19.3 • Efficiencies continuing to increase cash flow 1 Depreciation 5.0 5.0 from operations 1 Working capital / othe
Slide 12: Second Quarter 2021 Outlook
SECOND QUARTER 2021 OUTLOOK Announced government-mandated curtailments in line with 1Q21 UPSTREAM Lower volumes with seasonal gas demand and higher scheduled maintenance U.K. North Sea sale expected to close near mid-year, subject to regulatory and third-party approvals Continuing demand improvement
Slide 13: Management Perspectives
MANAGEMENT PERSPECTIVES DARREN WOODS CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICERMANAGEMENT PERSPECTIVES DARREN WOODS CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER
Slide 14: Positioned for Success
POSITIONED FOR SUCCESS Decisive response to pandemic balanced near, medium, and long-term priorities • Developing industry-leading portfolio of advantaged investments • Restructuring provided foundation for rapid response and significant improvements − Fewer organizational interfaces improved speed
Slide 15: Improving Environment
IMPROVING ENVIRONMENT Prices and margins returning to historic range PRICES / MARGINS 2010—2021 • Crude and natural gas markets improved with Crude¹ Natural gas² Downstream Chemical ($/bbl) ($/mbtu) margins³ margins⁴ demand recovery ($/bbl) ($/tonne) 1Q21 • Chemical margins driven by tight industry
Slide 16: Prioritized Investments
PRIORITIZED INVESTMENTS Progressing development of highest-return opportunities CORPUS CHRISTI DEEPWATER PERMIAN CHEMICAL COMPLEX 1 2 >10% return at <$35/bbl >10% return at <$35/bbl 3 >$500 million / year earnings Guyana Permian Corpus Christi th th • 5 and 6 drilling rigs arrived in Guyana • Contin
Slide 17: Preserving Project Value
PRESERVING PROJECT VALUE Leveraging unique capabilities to deliver robust project returns BAYTOWN CHEMICAL EXPANSION 2Q20 Current • Collaborated with contractors, partners, and governments to effectively pace projects • Global Projects organization optimally managed activity to preserve value and pr
Slide 18: Investing in Highest-Return Assets
INVESTING IN HIGHEST-RETURN ASSETS 2020 investments drive cash flow growth 2 2020 UPSTREAM INVESTMENTS OPERATING CASH FLOW FROM PROJECTS RETAINED IN 2020 CAPEX 1 Brent $/bbl required to generate the cost-of-supply plus 10% return Billion USD 45 8 $40/bbl Brent 30 4 15 0 0 2021 2025 2020 Cumulative C
Slide 19: Continuing to Grow Permian Value
CONTINUING TO GROW PERMIAN VALUE 2020 work provided foundation for ongoing performance improvement 1 DAILY DRILLING LATERAL FEET FRAC STAGES PER DAY 4 220% >80% 180% ~50% • Increased 1Q21 volumes ~60 Koebd vs. 1Q20 improvement improvement − Despite 35% Capex reduction in 2020 versus plan DAILY DRILL
Slide 20: Growing Long-Term Shareholder Value
GROWING LONG-TERM SHAREHOLDER VALUE Highgraded portfolio, improved earnings and cash flow, and positioned for a lower-carbon future SUSTAINABLE SHAREHOLDER VALUE STRONG CASH FLOW STRUCTURAL COST SAVINGS ~2.8 million >$9 billion ~10% reduction 2 shareholders received reliable 1Q21 cash flow from oper
Slide 21: Consistent Capital Allocation Priorities
CONSISTENT CAPITAL ALLOCATION PRIORITIES Balanced approach to maintain the dividend, accretively invest and manage debt 1,2,3 2021 ESTIMATED SOURCES AND USES OF CASH Billion USD • Long-term capital allocation priorities remain By Brent price, with 10yr low Downstream − Invest in advantaged projects
Slide 22: Climate Strategy
CLIMATE STRATEGY Responsibly meeting society’s evolving need for energy in a reliable and sustainable manner MITIGATING EMISSIONS IN PROVIDING PRODUCTS TO PROACTIVELY ENGAGING ON DEVELOPING AND COMPANY OPERATIONS HELP CUSTOMERS REDUCE CLIMATE-RELATED POLICY DEPLOYING SCALABLE THEIR EMISSIONS TECHNOL
Slide 23: Significant Investments in Targeted Markets
SIGNIFICANT INVESTMENTS IN TARGETED MARKETS Investment in carbon capture and storage proportionate to potential market size 1 EXXONMOBIL ENERGY INVESTMENT Percent of total addressable market • Carbon capture and storage is critical to achieve the goals of the Paris Agreement • Large investments in l
Slide 24: Positioned to Succeed in Carbon Capture
POSITIONED TO SUCCEED IN CARBON CAPTURE Leveraging position as global leader in critical technology required for net zero emissions 5 GLOBAL LEADERSHIP SIGNIFICANT POTENTIAL GROWTH MARKET 2 ExxonMobil TOTAL CO CAPTURE • #1 in CO capture 2• ~$2 trillion 2 Million tonnes addressable market 3 • #2 for
Slide 25: Houston CCS Innovation Zone Concept
HOUSTON CCS INNOVATION ZONE CONCEPT Houston ship channel is an ideal location for a large-scale CCS project 1 Potential to mitigate 100 MILLION tonnes of CO annually by 2040 CRITICAL ENABLERS INCLUDE: 2 Supportive Broad industry and regulatory and government legal framework alignment $/CO 2 Adequate
Slide 26: Growing Long-Term Shareholder Value
GROWING LONG-TERM SHAREHOLDER VALUE Progressing actions to highgrade portfolio and improve earnings and cash flow • Committed to delivering sustainable shareholder value • Competitively advantaged assets and investments drive strong cash flow to sustain dividend, reduce debt, and invest in the futur
Slide 27: ExxonMobil
ExxonMobil
Slide 28: Second Quarter 2021 Outlook
SECOND QUARTER 2021 OUTLOOK 1 DOWNSTREAM SCHEDULED MAINTENANCE QUARTERLY EARNINGS IMPACT Million USD •• 1H21 1,2 Se sc e heduled Suppleme ma nta inl te Informat nance pion ositions 600 Downstream for continued market recovery 300 • Higher planned turnaround activity in Chemical 0 2020 quarterly aver
Slide 29: Supplemental Information: Identified Items Reconciliation
SUPPLEMENTAL INFORMATION IDENTIFIED ITEMS RECONCILIATION FOURTH QUARTER 2020 Earnings / (Loss) U.S. GAAP (20.1) Identified items included in earnings / (loss) Noncash inventory valuation - lower of cost or market - Impairment (19.3) Tax and other items (asset management, severance) (0.9) Corporate t
Slide 30: Supplemental Information: Upstream Volume Factor Analysis
SUPPLEMENTAL INFORMATION “Winter storm” as used on slide 6 is included below as part of the “Downtime/Maintenance” category. “Curtailments” as used on slide 6 includes government mandates shown as a separate category below. 1 UPSTREAM VOLUME FACTOR ANALYSIS 1Q21 vs. 4Q20 1Q21 vs. 1Q20 Prior Period 3
Slide 31: Supplemental Information: Reconciliation of Operating Costs
SUPPLEMENTAL INFORMATION RECONCILIATION OF OPERATING COSTS AND CASH OPERATING EXPENSES COMPONENTS OF OPERATING COSTS 1Q21 1Q20 From ExxonMobil’s Consolidated statement of income: Production and manufacturing expenses 8.1 8.3 Selling, general and administrative expenses 2.4 2.6 Depreciation and deple
Slide 32: Supplemental Information
SUPPLEMENTAL INFORMATION Forward-looking statements contained in this presentation regarding the potential for future earnings, cash flow, addressable markets, available cash from operations, and free cash are not forecasts of actual future results. These figures are provided to help quantify the po
Slide 33: Supplemental Information: Definitions
SUPPLEMENTAL INFORMATION Definitions Available cash from operations. Available cash from operations provides an indication of cash flow available to fund shareholder distributions, capex, and debt reduction and is calculated as the sum of (1) net cash provided by operating activities and (2) net cas
Slide 34: Supplemental Information: Definitions
SUPPLEMENTAL INFORMATION Definitions Operating costs (Opex). Operating costs are the costs during the period to produce, manufacture, and otherwise prepare the company’s products for sale – including energy, staffing, and maintenance costs. They exclude the cost of raw materials, taxes, and interest
Slide 35: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 3 Slide 15 1) Source: S&P Global Platts. 1) Includes most of the non-operated U.K. central and northern North Sea assets. 2) Source: ICE. Equal weighting of Henry Hub and NBP. Sale price is subject to closing adjustments and has additional upside of ~$300 3) Source: S&
Slide 36: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 18 Slide 22 1) Includes projects that bring on new volumes. Break-even based on a cost-of-supply 1) Emission reduction plans announced in December 2020 include a 15 to 20 to generate a minimum 10% return on a money-forward basis. percent reduction in greenhouse gas int
Slide 37: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 24 Slide 28 1) 40% of all anthropogenic CO captured since 1970. Global CCS Institute 2020 1) Estimates based on March margins and operating expenses related to 2 report and ExxonMobil analysis of 2020 facility data. turnaround activities. 2) Global CCS Institute. Data
Slide 38: Important Additional Information Regarding Proxy Solicitation
Important Additional Information Regarding Proxy Solicitation Exxon Mobil Corporation (“ExxonMobil”) has filed a definitive proxy statement and form of associated BLUE proxy card with the U.S. Securities and Exchange Commission (the “SEC”) in connection with the solicitation of proxies for ExxonMobi