Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q4 2023 Earnings Presentation
40 slides from Exxon Mobil's earnings presentation, Feb 2, 2024
Slide 1: Our strategy is delivering earnings leading results
2023 Fourth-quarter Our strategy is delivering earnings leading results 2.2.24
Slide 2: Important information for investors and stockholders
Important information for investors and stockholders IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION AND WHERE TO FIND IT In connection with the proposed transaction between Exxon Mobil Corporation (the “Company”) and Pioneer Natural Resources Company (“Pioneer”), the Company and Pioneer have f
Slide 3: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, expectations, plans or ambitions in this presentation or the subsequent discussion period are forward-looking statements. Similarly, discussions of future carbon capture, transportation, and storage, as well as
Slide 4: Meeting society's needs and growing shareholder value
Meeting society's needs and growing shareholder value Leading Performance | Essential Partner | Advantaged Portfolio | Innovative Solutions | Meaningful Development • Demonstrating strong safety, operational, and reliability performance - Continuing improvement in process safety; sustained our indus
Slide 5: Increasing supply and reducing emissions
Increasing supply and reducing emissions > 18 % 250 Kbd 750 Kta performance chemical capacity growth from Guyana and Permian, refining expansion in Beaumont, TX, reflecting record annual production contributed to record throughput1 expansion in Baytown, TX > 50 % 100 % 5 Mta reduction in operated me
Slide 6: Energy markets normalizing in 2023; integrated portfolio resilient across price / margin cycles
Energy markets normalizing in 2023; integrated portfolio resilient across price / margin cycles Industry prices / margins 10-year annual range1 2023: • Energy prices and refining margins moving to more typical levels with record liquids demand met by supply growth • Chemical margins remained bottom-
Slide 7: Delivering industry-leading financial results
Delivering industry-leading financial results Earnings Cash flow from operations Structural cost savings $36 B Earnings ex. ident. items of $38.6 billion1, $55 B >15% CAGR vs. 2019; leading peers2 $9.7 B vs. 2019; leading peers3 >40% CAGR vs. 2019; leading peers2 Share repurchases Dividends Total sh
Slide 8: Excellence in execution consistently driving industry-leading results
Excellence in execution consistently driving industry-leading results U/S EP CP SP C&F TOTAL 2022 GAAP Earnings / (Loss) $36.5 $15.0 $3.5 $2.4 ($1.7) $55.7 Sakhalin-1 expropriation / charges (2.2) - - - (0.1) (2.3) Additional European taxes on energy sector (1.4) (0.4) - - - (1.8) Announced divestme
Slide 9: Strong performance across all business segments
Strong performance across all business segments U/S EP CP SP C&F TOTAL 3Q23 GAAP Earnings / (Loss) $6.1 $2.4 $0.2 $0.6 ($0.4) $9.1 Additional European taxes on energy sector (0.0) (0.0) - - - (0.0) 3Q23 Earnings / (Loss) ex. identified items (non-GAAP) $6.1 $2.5 $0.2 $0.6 ($0.4) $9.1 Price / margin
Slide 10: Upstream: higher-margin volumes driving profitable growth
Upstream: higher-margin volumes driving profitable growth Upstream Contributing factors to change in earnings • Higher gas prices partly offset by lower liquids price Million USD 20 • Volume / mix improvement driven by advantaged 550 (450) 60 $ 6,324 $ 6,266 Guyana and Permian assets $ 6,139 (60) -
Slide 11: Energy Products: advantaged portfolio delivering strong performance
Energy Products: advantaged portfolio delivering strong performance Energy Products Contributing factors to change in earnings • Lower margins driven by seasonally weaker Million USD gasoline demand $ 3,018 340 • Continued high-grading of portfolio with $ 2,475 strategic projects and divestments 1,1
Slide 12: Chemical Products: performance chemicals and North American footprint improving earnings
Chemical Products: performance chemicals and North American footprint improving earnings Chemical Products Contributing factors to change in earnings • Strong performance chemicals sales and lower U.S. Million USD Gulf Coast feed costs driving improved margin (130) 40 $ 577 • Seasonally lower sales
Slide 13: Specialty Products: portfolio of high-value products consistently delivering solid earnings
Specialty Products: portfolio of high-value products consistently delivering solid earnings Specialty Products Contributing factors to change in earnings • Margin improvement driven by strong performance Million USD lubricants sales and lower feed costs $ 743 (50) 120 130 • Seasonally lower sales vo
Slide 14: Strong results continuing to support capital allocation priorities
Strong results continuing to support capital allocation priorities Cash flow 4Q: Billion USD • $15.9 billion of CFO ex-working capital • $8.0 billion of free cash flow on strong earnings and (6.7) 1.0 asset sales 13.7 (8.2) • 4Q dividend of $0.95 per share, an increase of 4.4% $ 33.0 versus 3Q $ 31.
Slide 15: 1Q24 outlook
1Q24 outlook • Lower volumes driven by absence of Upstream favorable 4Q entitlement impacts, partly offset by Payara development ramp-up Energy Products • Higher scheduled maintenance Product Chemical Products Solutions Specialty Products • Corporate and financing expenses expected to be $300-$500 m
Slide 16: Delivered $30 billion portfolio of strategic projects on budget and ahead of schedule
Delivered $30 billion portfolio of strategic projects on budget and ahead of schedule since 2018 2018 project plans delivering >$5 billion in 2024 earnings1 Liza Phase II development, Guyana Gulf Coast Growth Ventures, Corpus Christi, TX Refinery Expansion, Beaumont, TX Guyana Payara Baytown Chemica
Slide 17: On track to deliver large portfolio of high-value projects in 2025
On track to deliver large portfolio of high-value projects in 2025 Yellowtail development, Guyana Golden Pass LNG terminal, Sabine Pass, TX Bacalhau development, Brazil Fawley Hydrofiner, United Kingdom Strathcona Renewable Diesel, Canada Resid Upgrade, Singapore Petrochemical Complex, China 7 Advan
Slide 18: 2024: continued growth in shareholder value
2024: continued growth in shareholder value • Leading industry in safety, operating, and financial performance • Capitalizing on growing array of advantaged opportunities, leveraging unmatched capability and scale - 2024 capex of $23-$25 billion underpins profitable growth, improvements in portfolio
Slide 19: Q&A
Q&A 2.2.24 New Advancing Climate Solutions report and Sustainability report available on www.exxonmobil.com
Slide 20: Outlook for first quarter of 2024
Outlook for first quarter of 2024 Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact3 Million USD Million USD 880 400 ~390 900 +440 310 ~280 +60 ~630 ~250 600 720 ~410 ~440 200 ~160 -40 ~345 210 +280 300 0 0 1Q23 2Q23 3Q23 4Q23 1Q24 est. 1Q23 2Q23 3
Slide 21: Upstream: improved mix from advantaged growth projects partially offsetting lower realizations
Upstream: improved mix from advantaged growth projects partially offsetting lower realizations Upstream Contributing factors to change in earnings • Lower liquids and gas realizations Million USD • Achieved full-year production of 3.7 Moebd $ 39,418 - Full-year Permian production of >610 Koebd - Ful
Slide 22: Energy Products: excellence in execution delivering strong earnings performance
Energy Products: excellence in execution delivering strong earnings performance Energy Products Contributing factors to change in earnings • Refining margins declined due to lower diesel Million USD cracks driven by rebalancing of trade flows $ 15,650 • Record reliability and Beaumont expansion deli
Slide 23: Chemical Products: generating positive earnings and cash flow at bottom-of-cycle conditions
Chemical Products: generating positive earnings and cash flow at bottom-of-cycle conditions Chemical Products Contributing factors to change in earnings • Record performance chemicals volumes and advantaged Million USD North American footprint driving improvement $ 3,543 • Lower margins as continued
Slide 24: Specialty Products: product differentiation and brand strength drove sustained portfolio performance
Specialty Products: product differentiation and brand strength drove sustained portfolio performance Specialty Products Contributing factors to change in earnings • Improved margins from high-value products and lower Million USD feed costs (120) 20 10 $ 2,807 - Record Mobil 1TM sales for second stra
Slide 25: Strong business results support capital allocation priorities
Strong business results support capital allocation priorities Cash flow Billion USD • $59.6 billion of CFO ex-working capital • Continuing to high-grade portfolio through advantaged investments and the divestment of non-core assets (23.4) 4.1 • $36.1 billion of free cash flow on strong earnings and
Slide 26: Supplemental Information
Supplemental Information Forward-looking statements contained in this presentation regarding the potential for future earnings, shareholder distributions, returns, structural efficiencies, capital and exploration expenditures, and volumes, including statements regarding future earnings potential, an
Slide 27: 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 28: Definitions and non-GAAP financial measure reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Capital and exploration expenditures (Capex). Represents the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Inc
Slide 29: Definitions and non-GAAP financial measure reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Industry-leading performance (Industry-leading results, Industry-leading financial performance, industry-leading financial results). Includes our leadership in metrics such as earnings excluding identified items and
Slide 30: Definitions and non-GAAP financial measure reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Returns, rate of return, IRR. Unless referring specifically to ROCE or external data, references to returns, rate of return, IRR, and similar terms mean future discounted cash flow returns on future capital investmen
Slide 31: Reconciliation of 2019 earnings and cash flow from operations
Supplemental Information RECONCILIATION OF 2019 EARNINGS AND CASH FLOW FROM OPERATIONS ENERGY CHEM SPECIALTY 2019 EARNINGS U/S C&F TOTAL PROD PROD PROD Earnings (U.S. GAAP) 14.4 1.4 0.8 0.7 (3.0) 14.3 Asset Management (3.7) 0.0 0.0 0.0 0.0 (3.7) Impairment 0.0 0.0 0.0 0.0 0.0 0.0 Tax / Other Items (
Slide 32: Reconciliation of 2023 earnings and cash flow from operations
Supplemental Information RECONCILIATION OF 2023 EARNINGS AND CASH FLOW FROM OPERATIONS (Amended) ENERGY CHEM SPECIALTY 2023 EARNINGS U/S C&F TOTAL PROD PROD PROD Earnings (U.S. GAAP) 21.3 12.1 1.6 2.7 (1.8) 36.0 Additional European taxes on energy sector 0.2 0.1 - - - 0.2 Impairments 2.7 - 0.3 0.1 -
Slide 33: Cash flow from operations excluding working capital 4Q23
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL 4Q23 Net cash provided by operating activities (U.S. GAAP) 13,682 Less: changes in operational working capital, excluding cash and debt 2,191 Cash flow from operations excluding working capital (Non-GAAP) 15,873 Cash flow f
Slide 34: Cash flow from operations excluding working capital 2023
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL 2023 Net cash provided by operating activities (U.S. GAAP) 55,369 Less: changes in operational working capital, excluding cash and debt 4,255 Cash flow from operations excluding working capital (Non-GAAP) 59,624 Cash flow f
Slide 35: Free cash flow 4Q23 and 2023
Supplemental information FREE CASH FLOW 4Q23 Net cash provided by operating activities (U.S. GAAP) 13,682 Additions to property, plant and equipment (6,228) Proceeds from asset sales and returns of investments 1,020 Additional investments and advances (1,854) Other investing activities including col
Slide 36: Calculation of structural cost savings
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2023 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 36.9 Selling, general and administrative expenses 11.4 9.9 Depreciation and depletion (inc
Slide 37: Average capital employed
Supplemental information AVERAGE CAPITAL EMPLOYED 2022 2023 Business uses: asset and liability perspective Total assets 369.1 376.3 Less liabilities and noncontrolling interests share of assets and liabilities Total current liabilities excluding notes and loans payable (68.4) (61.2) Total long-term
Slide 38: Return on average capital employed 2023
Supplemental information RETURN ON AVERAGE CAPITAL EMPLOYED 2023 Net income (loss) attributable to ExxonMobil (U.S. GAAP) 36.0 Financing costs (after-tax) Gross third-party debt (1.2) ExxonMobil share of equity companies (0.3) All other financing costs – net 0.9 Total financing costs (0.6) Earnings
Slide 39: Supplemental information: footnotes
Supplemental information Slide 4 Slide 5 1. Downward trend of Tier 1 process safety events since 2018. Tier 1 process safety events 1. Highest annual global refinery throughput (2000-2023) since Exxon and Mobil merger in (those of greatest consequence) as defined by the American Petroleum Institute.
Slide 40: Supplemental information: footnotes
Supplemental information Slide 6 Slide 16 1. 10-year range includes 2010-2019, a representative 10-year business cycle which avoids 1. Represents ExxonMobil analysis of earnings potential contribution in 2024 from strategic the extreme outliers in both directions that the market experienced in the p