Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q3 2023 Earnings Presentation
32 slides from Exxon Mobil's earnings presentation, Oct 27, 2023
Slide 1: Differentiated execution driving strong results
2023 Third-quarter Differentiated execution earnings driving strong results 10.27.23
Slide 2: Important information for investors and stockholders
Important information for investors and stockholders IMPORTANT INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT In connection with the proposed transaction between Exxon Mobil Corporation (“ExxonMobil”) and Pioneer Natural Resources Company (“Pioneer”) (the “Pioneer Transaction”), ExxonMobil a
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
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 • $9.1 billion of earnings driven by strong operational performance, structural earnings improvements, and favorable market conditions
Slide 5: Global Projects: unmatched capability and scale
Global Projects: unmatched capability and scale Beaumont – March 2023 Baytown – September 2023 • Differentiated central project organization with end-to-end capability - Manages all capital projects on behalf of Upstream, Product Solutions, and Low Carbon Solutions - Deep technical expertise across
Slide 6: Record total liquids demand and low inventories shaped favorable market conditions
Record total liquids demand and low inventories shaped favorable market conditions Industry prices / margins 10-year annual range1 • Crude prices increased on strong demand and lower inventory levels • Natural gas prices declined modestly due to continued high inventory levels; remained in top half
Slide 7: Delivering higher earnings and shareholder returns
Delivering higher earnings and shareholder returns Earnings Structural cost savings Year-to-date production $9.1 B $1.2 billion higher than 2Q 2023 $9.0 B vs. 2019; achieved our goal ahead 3.7 Moebd consistent with full-year guidance of schedule Cash flow from operations Year-to-date capex Increased
Slide 8: Structural improvements and operational excellence delivering strong performance in favorable market
Structural improvements and operational excellence delivering strong performance in favorable market U/S EP CP SP C&F TOTAL 2Q23 GAAP Earnings / (Loss) $4.6 $2.3 $0.8 $0.7 ($0.5) $7.9 Additional European taxes on energy sector (0.0) 0.0 - - - 0.0 2Q23 Earnings / (Loss) ex. identified items (non-GAAP
Slide 9: Upstream: growing higher-value volumes in a favorable market
Upstream: growing higher-value volumes in a favorable market Upstream Contributing factors to change in earnings • Higher liquids realizations driven by rising demand and Million USD low inventory levels 170 300 $ 6,382 $ 6,139 (140) (240) • Improved volume / mix supported by lower scheduled 1,460 m
Slide 10: Upstream: continued strong production
Upstream: continued strong production Upstream Contributing factors to change in volumes • ~80 Koebd of growth from Permian, Guyana, and LNG Koebd, net partially offset by base decline1 3,716 30 3,688 50 (150) 40 • 380 Kbd full-year gross production expected in Guyana - 20 Kbd above prior projection
Slide 11: Energy Products: record third-quarter refining throughput and boosting earnings
Energy Products: operational excellence driving record third-quarter refining throughput and boosting earnings Energy Products Contributing factors to change in earnings • Margin improvement driven by strong demand Million USD and low inventories 60 $ 3,452 • Delivered record 3Q refinery throughput1
Slide 12: Chemical Products: structural improvements underpin earnings
Chemical Products: structural improvements underpin earnings as industry feed costs increase globally Chemical Products Contributing factors to change in earnings • Generating positive earnings and cash flow despite Million USD historically low industry market conditions $ 828 • Margins compressed a
Slide 13: Specialty Products: portfolio of high-value products consistently delivers solid earnings
Specialty Products: portfolio of high-value products consistently delivers solid earnings Specialty Products Contributing factors to change in earnings • Margin improvement from revenue management more Million USD than offset by higher basestocks feed costs $ 671 (60) 10 60 (60) $ 619 • Expenses dow
Slide 14: Strong results continuing to support capital allocation priorities
Strong results continuing to support capital allocation priorities Cash flow Billion USD • $11.7 billion of free cash flow on strong earnings and asset sales (5.2) 0.9 • 17% debt-to-capital; 4% net debt-to-capital 16.0 (8.1) $ 33.0 • $8.1 billion distributed to shareholders (0.2) $ 29.6 • Declared 4
Slide 15: 4Q23 outlook
4Q23 outlook • Guyana Payara start-up expected in Upstream November • Higher scheduled maintenance Energy Products • First full quarter without Thailand (~170 Kbd) and Italy (~130 Kbd) refineries Product Solutions • Higher scheduled maintenance Chemical Products • Anticipate further industry capacit
Slide 16: Pioneer transaction transforms Upstream portfolio
Pioneer transaction transforms Upstream portfolio • Creates industry-leading undeveloped high-quality, high-return U.S. unconventional inventory • Combined capabilities expected to generate double-digit returns by recovering more resource, more efficiently - Pre-tax synergies average ~$2 billion per
Slide 17: Pre-tax synergies average ~$2 billion per year over next decade
Pre-tax synergies average ~$2 billion per year over next decade Spraberry/Wolfcamp Resource Density • Pioneer’s Midland resource is the highest quality in the basin Resource Density High - Notably better than ExxonMobil’s Midland acreage • Plan to optimize future development plan leveraging capabili
Slide 18: Average ~$1.3 billion per year synergies from increased resource recovery
Average ~$1.3 billion per year synergies from increased resource recovery Averaged Productivity Across Midland Basin 20 • ExxonMobil has been the leader in higher value cube development ~50% ~80% IP360 kbbl/1,000ft cubes cubes - Cube development achieving 30-50% higher NPV vs. best-bench development
Slide 19: Average ~$0.7 billion per year synergies from ~15% lower costs
Average ~$0.7 billion per year synergies from ~15% lower costs Delaware Basin Drilling Performance Midland Basin Drilling Performance 30 20 Drilling Days/10k Lat Length Drilling Days/10k Lat Length 20 15 Pioneer ExxonMobil ExxonMobil Industry: CVX, COP, DVN, EOG, OXY, FANG Industry: OXY, CVX, COP, E
Slide 20: Key takeaways: differentiated execution driving strong results
Key takeaways: differentiated execution driving strong results • Delivered strong operational performance in a favorable market environment • Continued to leverage unmatched scale and integration; structural savings on track to exceed $9 billion by year-end • Delivering portfolio projects with indus
Slide 21: Q&A
Q&A 10.27.23 Upcoming disclosures: Corporate Plan Update on Wednesday, December 6th, at 9:00 a.m. (CDT) 2024 Advancing Climate Solutions report to be issued in mid-December
Slide 22: Outlook for fourth quarter of 2023
Outlook for fourth quarter of 2023 Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact3 Million USD Million USD 600 900 ~470 ~390 380 ~630 400 +100 600 430 ~280 ~410 ~410 +85 ~345 200 ~160 300 +5 -100 350 180 0 0 2022 quarterly 1Q23 2Q23 3Q23 4Q23 es
Slide 23: Upstream: maintaining strong production levels
Upstream: maintaining strong production levels Upstream Contributing factors to change in volumes • Higher sequential production driven by lower scheduled Koebd, net maintenance 100 10 3,688 • Record 3Q23 Guyana Liza Phase 2 gross production of >240 Kbd on strong operational performance and 3,608 co
Slide 24: Product Solutions: strategic projects model guidance
Product Solutions: strategic projects model guidance First full year of Annual earnings uplift Projects1 Aggregate volume impact project operation (2010-19 average margins1) Rotterdam Hydrocracker +20 Kbd Group II Basestocks, +20 Kbd Distillate Corpus Christi Chemical Complex +650 Kta Polyethylene,
Slide 25: Supplemental information
Supplemental information ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. Calculations are based on industry standards and best practices, including guidance from the American Petroleum Institute (API) and
Slide 26: Supplemental information
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 In
Slide 27: Supplemental information
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. Net debt to capital (net debt-to-capital). Defined as “n
Slide 28: Supplemental information
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 29: Supplemental information
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2022 YTD 3Q22 YTD 3Q23 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 42.6 32.2 27.0 Selling, general and administrative expenses 11.4 10.1 7.
Slide 30: Supplemental information
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL 3Q23 Net cash provided by operating activities (U.S. GAAP) 15,963 Less: changes in operational working capital, excluding cash and debt (1,821) Cash flow from operations excluding working capital (Non-GAAP) 14,142 Cash flow
Slide 31: Supplemental information
Supplemental information FREE CASH FLOW 3Q23 Net cash provided by operating activities (U.S. GAAP) 15,963 Additions to property, plant and equipment (4,920) Proceeds from asset sales and returns of investments 917 Additional investments and advances (307) Other investing activities including collect
Slide 32: Supplemental information
Supplemental information Slide 6 Slide 22 1. 10-year range includes 2010-2019, a representative 10-year business cycle which avoids 1. Estimate based on October prices. the extreme outliers in both directions that the market experienced in the past three years. 2. Estimate based on operating expense