Slide 1: 2024 2nd Quarter Earnings
2024 2nd Quarter Earnings Delivering industry-leading value by growing advantaged portfolio 08.02.24
Slide 2: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, expectations, plans, potential addressable markets, ambitions, or results in this presentation or the subsequent discussion period are forward-looking statements. Similarly, discussions of future carbon capture
Slide 3: Driving industry-leading results by investing in growing array of high-return, advantaged opportunities
Driving industry-leading results by investing in growing array of high-return, advantaged opportunities and reducing structural costs • Pioneer acquisition fundamentally transforms our Upstream portfolio - Added industry-leading, undeveloped, high-quality unconventional inventory - Increased portfol
Slide 4: Strong execution of our strategy is delivering industry-leading performance
Strong execution of our strategy is delivering industry-leading performance GAAP earnings Cash flow from operations Advantaged Upstream growth $9.2 B Leading peers; includes $10.6 B $15.2 billion cash flow from 38 % Advantaged asset production $0.5 billion earnings from operations ex. working capita
Slide 5: Outstanding start to Pioneer integration with record 2Q production
Outstanding start to Pioneer integration with record 2Q production • Closed Pioneer quickly, ~50% faster than similar deals in recent years1 • Integration and synergy execution exceeding expectations - Starting to leverage advanced cube development technology to drive recovery and efficiency - Integ
Slide 6: Driving earnings growth across our businesses
Driving earnings growth across our businesses Upstream Product Solutions Corporate Growing value with industry-leading portfolio; Delivering strategic projects and high-value products Reducing structural costs and improving operations doubled unit earnings since 20191 volume growth5 Billion USD, cum
Slide 7: Integrated portfolio enhances resiliency in softer margin environment
Integrated portfolio enhances resiliency in softer margin environment • Average crude prices essentially unchanged vs. Industry prices / margins 1Q24 as market remains relatively balanced 10-year annual range1 • Natural gas prices declined with lower demand during 2Q24 due to milder weather • Refini
Slide 8: Advantaged volume growth and cost savings driving earnings improvements
2Q24 vs. 1Q24 Advantaged volume growth and cost savings driving earnings improvements U/S EP CP SP C&F TOTAL 1Q24 GAAP Earnings / (Loss) $5.7 $1.4 $0.8 $0.8 ($0.4) $8.2 1Q24 Earnings / (Loss) ex. identified items (non-GAAP) $5.7 $1.4 $0.8 $0.8 ($0.4) $8.2 Price / margin 0.2 (1.1) 0.2 (0.0) - (0.7) A
Slide 9: Structural improvements enabled strong earnings despite softer market
YTD‘24 vs. YTD‘23 Structural improvements enabled strong earnings despite softer market U/S EP CP SP C&F TOTAL YTD’23 GAAP Earnings / (Loss) $11.0 $6.5 $1.2 $1.4 ($0.9) $19.3 Additional European taxes on energy sector (0.2) (0.0) - - - (0.2) YTD’23 Earnings / (Loss) ex. identified items (non-GAAP) $
Slide 10: Record volumes from advantaged assets delivering earnings growth
Upstream Record volumes from advantaged assets delivering earnings growth Upstream earnings ex. ident. items • Higher liquids realizations driven by higher Million USD crude prices and improved Canada differential partly offset by lower gas realizations 320 210 $ 12,734 • Strong earnings growth driv
Slide 11: Strategic portfolio management and cost savings enabling solid earnings
Energy Products Strategic portfolio management and cost savings enabling solid earnings despite softer market Energy Products earnings ex. ident. items • Earnings 2x higher vs. YTD’18, a comparable Million USD market environment, primarily driven by strategic projects and structural cost savings1 $
Slide 12: Performance products increasing profitability despite weak market
Chemical Products Performance products increasing profitability despite weak market Chemical Products earnings ex. ident. items • Increased North America feed advantage Million USD and performance chemicals margins more 50 than offset lower year-on-year industry (150) margins 120 $ 1,564 (20) 260 •
Slide 13: Differentiated products enabling high-margin business with consistently strong earnings
Specialty Products Differentiated products enabling high-margin business with consistently strong earnings Specialty Products earnings ex. ident. items • Continued focus on optimizing feed and Million USD high-value product sales offset lower industry basestocks margins 50 20 30 100 $ 1,512 $ 1,445
Slide 14: Consistent capital allocation strategy enhancing shareholder value
Consistent capital allocation strategy enhancing shareholder value Cash flow • Strong earnings drove $25.2 billion of Billion USD cash flow from operations; $27.8 billion 1.6 ex-working capital - Working capital outflow of $2.6 billion (11.8) driven by second quarter seasonal taxes • Capex supports
Slide 15: Forward guidance
Forward guidance Upstream Upstream Product Solutions Product Corporate Corporate • 3Q24 outlook: ~80 Kbd lower gross • 3Q24 outlook: $200-$300 million • 3Q24 outlook: corporate and volumes in Guyana due to scheduled earnings impact from tornado-related financing expenses expected to be work on Liza
Slide 16: Benefits of strategy accelerating and driving differentiated performance
Key takeaways Benefits of strategy accelerating and driving differentiated performance • Delivering value through consistent capital allocation and execution excellence - Investing in high-return, advantaged projects to sustain long-term cash flow growth - Pioneer boosting low-cost-of-supply product
Slide 17: Upcoming disclosures: 2024 Global Outlook to 2050
Upcoming disclosures: 2024 Global Outlook to 2050 to be issued late August Corporate Plan Update & Upstream Spotlight to be held on December 11th Q&A 08.02.2024
Slide 18: Record volumes from advantaged assets driving profitability
Upstream Record volumes from advantaged assets driving profitability Upstream earnings ex. ident. items • Higher liquids realizations offset lower gas Million USD realizations 100 $ 7,074 110 340 • Strong quarterly volume growth from (20) (150) 830 advantaged assets 200 $ 5,660 - Record Guyana gross
Slide 19: Resilient earnings despite lower industry margins
Energy Products Resilient earnings despite lower industry margins Energy Products earnings ex. ident. items • Earnings 2x higher vs. 2Q18, a comparable Million USD market environment, primarily driven by strategic projects and structural cost $ 1,376 reductions1 • Industry margins decreased followin
Slide 20: Strong realizations on growing performance chemicals sales
Chemical Products Strong realizations on growing performance chemicals sales Chemical Products earnings ex. ident. items • Margin improvement from lower feed Million USD costs and strong realizations on high-value products 40 (120) 30 180 • High-value product sales growth driven by (100) $ 785 $ 779
Slide 21: Portfolio of high-value products consistently delivering strong earnings
Specialty Products Portfolio of high-value products consistently delivering strong earnings Specialty Products earnings ex. ident. items • Continued focus on growing high-value Million USD product sales $ 761 10 20 40 $ 751 • Seasonally higher expenses (10) (20) (50) • Other reflects favorable tax i
Slide 22: 3Q24 maintenance outlook
3Q24 maintenance outlook Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact2 Million USD Million USD 600 510 900 ~730 +200 ~580 400 600 -260 ~310 ~280 ~440 ~250 ~230 +60 370 ~345 320 200 300 -350 230 0 0 3Q23 4Q23 1Q24 2Q24 3Q24 est. 3Q23 4Q23 1Q24
Slide 23: Supplemental information
Supplemental information Forward-looking statements contained in this presentation regarding the potential for future earnings, shareholder distributions, returns, structural cost savings, capital and exploration expenditures, and volumes, including statements regarding future earnings potential, an
Slide 24: 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 25: Supplemental information
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 26: Supplemental information
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Advantaged assets (Advantaged growth projects). Includes Permian (heritage Permian and Pioneer), Guyana, Brazil, and LNG. Base portfolio (Base). In our Upstream segment, refers to assets (or volumes) other than advan
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. Heritage Permian. Permian basin assets excluding assets
Slide 28: Supplemental information
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Returns, rate of return, investment returns, project returns, IRR. Unless referring specifically to ROCE or external data, references to returns, rate of return, IRR, and similar terms mean future discounted cash flo
Slide 29: Supplemental information
Supplemental information RECONCILIATION OF UPSTREAM UNIT EARNINGS UPSTREAM EARNINGS 2019 2021 2023 2Q24 YTD Earnings (U.S. GAAP) 14.4 15.8 21.3 12.7 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 en
Slide 30: Supplemental information
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL 2Q24 Net cash provided by operating activities (U.S. GAAP) 10,560 Less: changes in operational working capital, excluding cash and debt 4,616 Cash flow from operations excluding working capital (Non-GAAP) 15,176 Cash flow f
Slide 31: Supplemental information
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL YTD 2Q24 Net cash provided by operating activities (U.S. GAAP) 25,224 Less: changes in operational working capital, excluding cash and debt 2,608 Cash flow from operations excluding working capital (Non-GAAP) 27,832 Cash fl
Slide 32: Supplemental information
Supplemental information FREE CASH FLOW 2Q24 Net cash provided by operating activities (U.S. GAAP) 10,560 Additions to property, plant and equipment (6,235) Proceeds from asset sales and returns of investments 926 Additional investments and advances (323) Other investing activities including collect
Slide 33: Supplemental information
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2023 YTD 2Q23 YTD 2Q24 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 36.9 18.3 18.9 Selling, general and administrative expenses 11.4 9.9 4.8
Slide 34: Supplemental information
Supplemental information Slide 3 Slide 5 1) Based on contracts to move up to 5.5 MTA starting in 2025 subject to additional 1) Based on average duration of significant investigations as reported in Dechert Antitrust investment by ExxonMobil and permitting for carbon capture and storage projects. Mer
Slide 35: Supplemental information
Supplemental information Slide 7 Slide 19 1) 10-year range includes 2010-2019, a representative 10-year business cycle which avoids 1) Based on ExxonMobil assessment of historical industry commodity prices and margins the extreme outliers in both directions that the market experienced in recent year