Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q1 2024 Earnings Presentation
38 slides from Exxon Mobil's earnings presentation, Apr 26, 2024
Slide 1: 2024 1st Quarter Earnings: Growing shareholder value
2024 1st Quarter Earnings Growing shareholder value 04.26.24
Slide 2: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, expectations, plans, ambitions, or results in this presentation or the subsequent discussion period are forward-looking statements. Similarly, discussions of future carbon capture, transportation, and storage,
Slide 3: Executing our strategy and delivering results
Executing our strategy and delivering results Earnings Cash flow from operations Structural cost savings $8.2 B GAAP earnings $14.7 B increased cash balance by $1.8 $10.1 B vs. 2019; on track to deliver billion ~$15 billion by 2027 Capex Net debt-to-capital Shareholder distributions $5.8 B consisten
Slide 4: Unprecedented success in Guyana
Unprecedented success in Guyana Projects Operations People • Three world-class developments • Ramped up production at Payara to • Guyana’s energy development is delivered at industry-leading pace design capacity of 220 Kbd at an supporting the world’s fastest real and cost1 industry-leading pace2 GD
Slide 5: Market environment remains constructive
Market environment remains constructive • Average crude prices flat in the quarter as market Industry prices / margins 10-year annual range1 remained relatively balanced • Natural gas prices moved back inside 10-year range, reflecting continued high inventory levels and lower demand • Refining margi
Slide 6: Technology extending reach to new high-value, high-growth markets
Technology extending reach to new high-value, high-growth markets • Building on proprietary technology to expand design capacity and range of Advanced recyclable materials Recycling • Investing in circularity to improve supply logistics and help redirect waste from landfills; start-ups on track to h
Slide 7: Earnings growth outpaced industry
Earnings growth outpaced industry Earnings potential ex-ident. items1 Structural cost savings underpinning earnings growth Billion USD, $60/bbl real Brent and average margin basis (2010-2019) Billion USD, Cumulative >10 % ~$15 B CAGR structural cost ~$15 40 15 savings vs. 2019 ~25 % CAGR $9.7 $10.1
Slide 8: Upstream: On track to more than double earnings by 2027
Upstream On track to more than double earnings by 2027 with industry-leading investments Growing value with industry-leading advantaged assets • Continuing to strengthen industry-leading % of total Upstream production1 portfolio by growing advantaged assets ~4.2 (Guyana, Permian, LNG, Brazil) 4.0 Up
Slide 9: Product Solutions: strategic projects and high-value products
Product Solutions Strategic projects and high-value products drive nearly tripling of earnings by 2027 Strategic projects and high-value products volume driving earnings growth potential1 • Strategic projects expected to deliver >70% Billion USD, average margin basis (2010-2019) of Product Solutions
Slide 10: Strong results through unrivaled excellence in execution: 1Q24 vs. 4Q23
1Q24 vs. 4Q23 Strong results through unrivaled excellence in execution U/S EP CP SP C&F TOTAL 4Q23 GAAP Earnings / (Loss) $4.1 $3.2 $0.2 $0.7 ($0.6) $7.6 Additional European taxes on energy sector 0.0 (0.0) - - - (0.0) Impairments (2.7) - (0.3) (0.1) - (3.0) Tax items 0.2 0.2 0.1 0.0 0.1 0.6 Announc
Slide 11: Strong results through unrivaled excellence in execution: 1Q24 vs. 1Q23
1Q24 vs. 1Q23 Strong results through unrivaled excellence in execution U/S EP CP SP C&F TOTAL 1Q23 GAAP Earnings / (Loss) $6.5 $4.2 $0.4 $0.8 ($0.4) $11.4 Additional European taxes on energy sector (0.2) (0.0) - - - (0.2) 1Q23 Earnings / (Loss) ex. identified items (non-GAAP) $6.6 $4.2 $0.4 $0.8 ($0
Slide 12: Higher volumes from industry-leading investments improving profitability
Upstream Higher volumes from industry-leading investments improving profitability Upstream earnings ex. ident. items • Lower gas realizations partly offset by Million USD higher liquids realizations $ 6,615 • Advantaged assets volume improved on 430 higher growth in Guyana (820) 90 370 $ 5,660 (400)
Slide 13: Excellence in execution delivering strong results
Energy Products Excellence in execution delivering strong results Energy Products earnings ex. ident. items • Industry margins declined versus last year Million USD as growing demand was met by additional supply $ 4,213 • Record first-quarter throughput enabled by strong operational performance and
Slide 14: Feed advantage and high-value product growth delivering results
Chemical Products Feed advantage and high-value product growth delivering results Chemical Products earnings ex. ident. items • Increased North America feed advantage Million USD and high-value product margins more than offset industry margin decline 20 10 $ 785 (20) • High-value product sales growt
Slide 15: High-margin business with consistently strong earnings
Specialty Products High-margin business with consistently strong earnings Specialty Products earnings ex. ident. items • Continued focus on optimizing high-value Million USD product sales and feed offsetting lower industry basestocks margins 30 0 20 • Base sales volumes flat; unfavorable mix $ 774 $
Slide 16: Strong results and consistent capital allocation drive returns for shareholders
Strong results and consistent capital allocation strategy drive exceptional returns for shareholders • $10.1 billion of free cash flow on strong earnings Cash flow Billion USD • Investing in advantaged assets and strategic projects, including multiple project startups planned for 2025 (5.3) 0.7 • Ba
Slide 17: 2Q24 outlook versus 1Q24
2Q24 outlook versus 1Q24 Upstream Upstream Product Solutions Product Corporate Corporate • Seasonal scheduled maintenance to • Lower scheduled maintenance • Corporate and financing expenses lower net volumes by ~40 Koebd expected to be $300-$500 million • Anticipate Pioneer closing in 2Q24 • Unfavor
Slide 18: Key takeaways: Growing shareholder value
Key takeaways Growing shareholder value • Improving our earnings power through execution excellence - Progressing plans to deliver further earnings growth; CAGR of >10% from 2023 through 20271 - Continuing to drive structural cost efficiencies; on track to achieve incremental ~$5 billion by 2027 ver
Slide 19: Q&A 04.26.2024
Q&A 04.26.2024
Slide 20: Higher production mix from advantaged assets driving profitable growth
Upstream Higher production mix from advantaged assets driving profitable growth Upstream earnings ex. ident. items • Lower gas realizations due to high Million USD industry inventory • Advantaged assets volume improved due $ 6,266 190 to continued growth in Guyana (490) 20 10 40 $ 5,660 - >600 Kbd o
Slide 21: Operational excellence underpins strong results
Energy Products Operational excellence underpins strong results Energy Products earnings ex. ident. items • Industry margins increased on strong Million USD demand, heavy turnaround season in the U.S., and supply disruptions (0) 0 • Volumes and expenses reflect higher 540 $ 3,018 (290) scheduled mai
Slide 22: Advantaged footprint drove improved results
Chemical Products Advantaged footprint drove improved results Chemical Products earnings ex. ident. items • Margin improvement from North America Million USD feed advantage and price support from Europe supply disruptions 0 10 $ 785 (10) • Higher volumes from opportunistic sales 120 80 10 enabled by
Slide 23: Portfolio of high-value products consistently delivering solid earnings
Specialty Products Portfolio of high-value products consistently delivering solid earnings Specialty Products earnings ex. ident. items • Margin improvement driven by lower Million USD finished lubricant feed costs and higher 50 30 0 demand 20 70 (150) $ 761 $ 743 • High-value product volumes growth
Slide 24: 2Q24 maintenance outlook
2Q24 maintenance outlook Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact2 Million USD Million USD ~390 370 400 900 740 +140 ~730 +10 ~280 ~250 ~230 600 ~410 ~440 -190 200 +20 250 ~345 540 300 0 0 2Q23 3Q23 4Q23 1Q24 2Q24 est. 2Q23 3Q23 4Q23 1Q24
Slide 25: Supplemental information
Supplemental information Forward-looking statements contained in this presentation regarding the potential for future earnings, shareholder distributions, returns, compound annual growth rates, structural cost savings, capital and exploration expenditures, and volumes, including statements regarding
Slide 26: 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 27: Supplemental information: earnings factor definitions
Supplemental information SELECTED EARNINGS FACTOR DEFINITIONS Advantaged volume growth. 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 high-value
Slide 28: Supplemental information: definitions and reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Advantaged assets (Advantaged growth projects). Includes Permian, Guyana, Brazil, and LNG. Base portfolio (Base). In our Upstream segment, refers to assets (or volumes) other than advantaged assets (or volumes from a
Slide 29: Supplemental information: definitions and 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. High-value products. Includes performance products and l
Slide 30: Supplemental information: definitions and reconciliations
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Structural cost savings (structural cost reductions, structural savings, structural cost improvements). Structural cost savings describe decreases in cash opex excluding energy and production taxes as a result of ope
Slide 31: Reconciliation of 2019 earnings
Supplemental information RECONCILIATION OF 2019 EARNINGS 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 (0.8) 0.0 (0.0) 0.0 (0.3) (1.1)
Slide 32: Reconciliation of 2021 earnings
Supplemental information RECONCILIATION OF 2021 EARNINGS ENERGY CHEM SPECIALTY 2021 EARNINGS U/S C&F TOTAL PROD PROD PROD Earnings (U.S. GAAP) 15.8 (0.3) 7.0 3.3 (2.6) 23.0 Asset management (0.5) 0.0 0.0 (0.6) 0.0 (1.1) Impairment 0.8 0.0 0.0 0.0 0.0 0.8 Tax / Other Items 0.3 0.0 0.0 0.0 0.1 0.3 Ear
Slide 33: Reconciliation of 2023 earnings
Supplemental information RECONCILIATION OF 2023 EARNINGS 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 - 3.0 Tax items (0.2) (0.2) (0.1) (0.0) (
Slide 34: Reconciliation of Upstream unit earnings
Supplemental information RECONCILIATION OF UPSTREAM UNIT EARNINGS UPSTREAM EARNINGS 2019 2021 2023 1Q24 YTD Earnings (U.S. GAAP) 14.4 15.8 21.3 5.7 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 ene
Slide 35: Cash capital expenditures and free cash flow
Supplemental information CASH CAPITAL EXPENDITURES 1Q24 Additions to property, plant and equipment 5,074 Net investments and advances 206 Total cash capital expenditures 5,280 Cash capital expenditures (Cash Capex). Sum of Additions to property, plant and equipment, Additional investments and advanc
Slide 36: Calculation of structural cost savings
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2023 YTD 1Q23 YTD 1Q24 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 36.9 9.4 9.1 Selling, general and administrative expenses 11.4 9.9 2.4 2
Slide 37: Supplemental information: footnotes
Supplemental information Slide 4 Slide 6 1) Based on third party benchmarking results from Independent Project Analysis (IPA) 1) Based on internal assessment of demand for products in existing markets. Targeting global 2) Based on third party analysis from McKinsey & Company. markets in both the coa
Slide 38: Supplemental information: footnotes
Supplemental information Slide 8 Slide 24 1) Production adjusted to $60/bbl real Brent. Differences versus actual production include 1) Estimate based on April prices. entitlements and other price-linked volume impacts. 2) Estimate based on March margins and operating expenses related to turnaround