Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Scotia Howard Weil Conference 2019
34 slides from Exxon Mobil's conference presentation, Mar 25, 2019
Slide 1: Growing Downstream Value
Growing Downstream Value Bryan Milton President, Fuels and Lubricants Company, Exxon Mobil Corporation Scotia Howard Weil Conference New Orleans - March 25, 2019
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT Forward-Looking Statements. Outlooks, projections, estimates, goals, discussions of potential, descriptions of business plans, objectives and resource potential, market expectations and other statements of future events or conditions in this presentation are forward-looking stat
Slide 3: ExxonMobil Global Businesses
EXXONMOBIL GLOBAL BUSINESSES UPSTREAM DOWNSTREAM CHEMICAL 3.8 million oil-equivalent barrels of 5.5 million barrels of petroleum 26.9 million tonnes of chemical net production per day1 product sales per day1 prime product sales per day1 $14.2 billion earnings1 $6.1 billion earnings1 $3.4 billion ear
Slide 4: Strong Downstream Portfolio
Strong Downstream Portfolio leverage competitive advantages, capture market opportunities 4
Slide 5: Downstream Business Fundamentals
DOWNSTREAM BUSINESS FUNDAMENTALS LIQUIDS DEMAND GROWTH %, Indexed to 2016 Fuel oil demand projected to decline 25% with 140 Chemical new IMO low-sulfur standards1 feedstock Demand for distillates grows due to increasing Distillates2 commercial transportation and aviation Lubes3 Gasoline Increase in
Slide 6: Competitive Advantages
COMPETITIVE ADVANTAGES TECHNOLOGY Proprietary process and catalyst technology -Doubles Rotterdam margins -Upgrade Singapore lower- value residual products Mobil 1 synthetic lubricants and Synergy fuels deliver superior performance 3 global research and technology centers drive innovation SCALE #1 ba
Slide 7: Value Chain Portfolio
VALUE CHAIN PORTFOLIO Fuels Value Chain Commercial Commercial Branded and Trading Business to Retail Business (B2B) Crude Crude Manufacturing Distribution acquisition movement Lubes Value Chain Basestocks Blending and Finished and Specialties Packaging Lubricants Research | Technology | Digital 7
Slide 8: Advantaged Investments Strengthen Portfolio
ADVANTAGED INVESTMENTS STRENGTHEN PORTFOLIO EXXONMOBIL DOWNSTREAM PRODUCT MIX1 % 50 2025 vs. 2017 2018 Progress 0 $61/bbl $77/bbl $107/bbl $84/bbl $114/bbl -50 Fuel oil Gasoline Chemical Diesel / Lube feedstock Jet basestock 1 All columns reflect 2018 prices: Platts, Argus, and IHS, YE18 asset basis
Slide 9: Maximizing Value of Existing Assets
MAXIMIZING VALUE OF EXISTING ASSETS leading competition implementing differentiated confirmed by benchmarking technology solutions improving financial performance capturing opportunity with with advantaged projects industry-leading conversion maximizing refinery yields with continuous focus on impro
Slide 10: Improving Operational Reliability and Performance
IMPROVING OPERATIONAL RELIABILITY AND PERFORMANCE DOWNTIME / MAINTENANCE EARNINGS IMPACT1 $M (620)(610) 600 300 (160) 0 2Q183Q184Q18 vsvsvs 1Q181Q181Q18 1Source : Earnings bridge factors from 2018 quarterly ExxonMobil earnings calls Industry-leading reliability record Reliability performance improve
Slide 11: Upgrading Portfolio
UPGRADING PORTFOLIO DIVESTMENTS / BRANDED WHOLESALER ACQUISITIONS / MARKET ENTRIES Augusta Purchase of Federal Oil in Refinery Indonesia (FKT) Germany Retail Italy Retail Wink Terminal Mexico and Indonesia Fuels Entry 11
Slide 12: Upgrading Portfolio Divestments
UPGRADING PORTFOLIO DIVESTMENTS Reduction vs. 20081 % Retail Sites TerminalsRefineriesPipeline MilesOwned 0 -50 -100 Successful portfolio management; fewer opportunities for future downstream asset sales $0.9 billion of earnings in 4Q18 for divestment of Augusta refinery and Germany retail No downst
Slide 13: Unique Value Growth
Unique Value Growth product technology, brand strength, market entries 12
Slide 14: Differentiated Branded Product Offers
DIFFERENTIATED BRANDED PRODUCT OFFERS RETAIL FUELS LUBRICANTS CORETM - basestocks - EHCTM Mogas Diesel Sales: 1.1 MB/D 0.4 MB/D Sales: >21 MB/Y Customer value: Premium performance fuels Customer value: Improved equipment protection 13
Slide 15: Mexico / Indonesia Market Entries
MEXICO / INDONESIA MARKET ENTRIES Mexico Industry-leading refining supply cost Fuels : 177 retail sites, ~400 expected by YE19 Lubes : strong Mobil brand recognition Indonesia Proximity to Singapore integrated complex Fuels : mining and fleet sales / branded microsites Lubes : FKT provides assets an
Slide 16: High-Value Synthetics Lubricants Growth
HIGH-VALUE SYNTHETICS LUBRICANTS GROWTH MARKET POSITION Group I-II basestocks market share (%) 15XOM 10 CVX 5 RDS TOT BP 0 051015 Finished lubricants market share (%) Strongest combined market position in industry: #1 basestocks, #2 finished lubricants Value chain delivered more than $900 million ea
Slide 17: High-Value Synthetics Lubricants Growth
HIGH-VALUE SYNTHETICS LUBRICANTS GROWTH MARKET POSITION Group I-II basestocks market share (%) 15XOM 10 CVX 5 RDS TOT BP 0 051015 Finished lubricants market share (%) Strongest combined market position in industry: #1 basestocks, #2 finished lubricants Value chain delivered more than $900 million ea
Slide 18: Early Insight Capture
Early Insight Capture market driven, advantaged investments, maximize returns 16
Slide 19: Rotterdam Advanced Hydrocracker
ROTTERDAM ADVANCED HYDROCRACKER ROTTERDAM PROFITABILITY AND CRUDE CAPACITY Pre vs. post investment input) Rotterdam /bbl post-investment ( $ margin Rotterdam cash pre-investment Net Global crude capacity (Kbd) Source: ExxonMobil estimates based on 3rd party data and ExxonMobil analysis 1 Average ear
Slide 20: Permian Integration
PERMIAN INTEGRATION See supplemental information Unique position across full value chain Logistics / refining capacity grows with equity production Progressing Downstream projects: - Cost-efficient 1+ Mbd JV pipeline - Beaumont light-oil expansion Upstream Downstream Chemical (Moebd)1LogisticsRefini
Slide 21: Downstream Earnings Growth Potential
DOWNSTREAM EARNINGS $3 BILLION EARNINGS GROWTH POTENTIAL1 2017-2020 By activity Logistics and Major projects trading Revamps / improvements Manufacturing optimization Markets 1 2019 March Investor Day basis ($60/bbl Brent flat real, 2017 margins); 2017 excludes impact of U.S. tax reform and impairme
Slide 22: Market Conditions
Market Conditions robust long-term / short-term swings 20
Slide 23: Cyclical Businesses
CYCLICAL BUSINESSES DOWNSTREAM EARNINGS AND AVERAGE ROCE Billion USD 15 34% 13 1024% 20% 8 14% 5 3 0 ‘01’06’10’14’18 Average ROCE CHEMICAL EARNINGS AND AVERAGE ROCE1 Billion USD 519% 18% 16% 11% 3 0 ‘78’88’98’08’18 Downstream and Chemical businesses are cyclical Investing through cycles enables stro
Slide 24: Investing in Line with Fundamentals
INVESTING IN LINE WITH FUNDAMENTALS GLOBAL COKING CAPACITY1 KBD Antwerp coker 400 200 0 XOM BP CVX RDS TOT 1 Includes delayed coking, flexicoking and fluid coking. IHS Energy, 2018. The use of this content was authorized in advance by IHS Markit. Any further use or redistribution of this content is
Slide 25: Logistics and Trading
LOGISTICS AND TRADING $/B GLOBAL1 COMPOSITE PLATTS 3-2-1 10 5 0 1Q182Q183Q184Q181Q19 NORTH AMERICA (NA) PLATTS / ARGUS CRUDE PRICE DISCONNECTS $/B (5) (15) (25)Midland/Houston Edmonton/Houston Disconnects above pipeline cost (35)Disconnects above rail cost 4Q171Q182Q183Q184Q181Q19 1 USGC, NWE, AP eq
Slide 26: Downstream Key Messages
DOWNSTREAM KEY MESSAGES Competitive advantages enable long-term value creation Growth in earnings potential driven by advantaged investments, technology, and operations Leveraging global brand recognition and marketing to increase sales of premium fuels and lubricants Integration with logistics and
Slide 27: Growing Downstream Value
Growing Downstream Value Bryan Milton President, Fuels and Lubricants Company, Exxon Mobil Corporation Scotia Howard Weil Conference New Orleans - March 25, 2019
Slide 28: Supplemental Information
SUPPLEMENTAL INFORMATION Important information and assumptions regarding certain forward-looking statements. Forward-looking statements contained in this presentation regarding the potential for future earnings, project returns, and return on average capital employed (ROCE) are not forecasts of actu
Slide 29: Supplemental Information: Non-GAAP and other measures
SUPPLEMENTAL INFORMATION Non-GAAP and other measures. In this presentation, earnings excluding effects of U.S. tax reform enactment and impairments and return on average capital employed (ROCE) are non-GAAP measures. With respect to historical periods, reconciliation information is included with the
Slide 30: Supplemental Information
SUPPLEMENTAL INFORMATION Corporate and (millions of dollars)UpstreamDownstreamChemicalFinancingCorporate Total 2018 Earnings (U.S. GAAP)14,0796,0103,351(2,600)20,840 U.S. tax reform271--20291 Impairments(439)(43)(7)-(489) 2018 Earnings excluding U.S. tax reform and impairments14,2476,0533,358(2,620)
Slide 31: Supplemental Information: Other information
SUPPLEMENTAL INFORMATION Other information ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relati
Slide 32: Value Chain - Fuels
VALUE CHAIN - FUELS 4.7 MBD of refining capacity ~80% integrated with basestocks or chemicals Proprietary process / catalyst technology Integrated circuit with unmatched scale >20k branded retail sites Finished product supplied to >30 countries Fuels refinery Fuels presence Fuels and chemicals compl
Slide 33: Value Chain - Lubricants
VALUE CHAIN - LUBRICANTS Six basestocks refineries and 21 blend plants Global product offer Three global research and technology centers 200 research scientists and engineers Five oil analysis laboratories 1M+ oil samples per year Basestocks refinery Lubricants presence Lube blend plant Basestocks r
Slide 34: First Quarter 2019 Outlook
FIRST QUARTER 2019 OUTLOOK Upstream Volumes consistent with fourth quarter Lower industry refining margins Downstream Narrowed North American crude differentials Scheduled maintenance similar to fourth quarter 2018 Chemical Supply length continues to impact margins Corporate and financing expected t