Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2014)
74 slides from Exxon Mobil's investor day presentation, Mar 11, 2014
Slide 1: 2014 Analyst Meeting
Exhibit 99.2 2014 Analyst Meeting New York Stock Exchange March 5, 2014 Exxon Mobil Energy lives hereTM
Slide 2: Cautionary Statement
Cautionary Statement “ Forward-Looking Statements. Outlooks, projections, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and op
Slide 3: Agenda
Agenda 9am Welcome David Rosenthal, Vice President, Investor Relations and Secretary Financial & Operating Review Energy Outlook Strategic Overview Rex Tillerson, Chairman and CEO Risk Management Delivering Profitable Growth Upstream Production Growth Mark Albers, Senior Vice President Upstream Long
Slide 4: Financial & Operating Review
Financial & Operating Review Rex Tillerson Chairman and CEO
Slide 5: Key Messages
Financial & Operating Review Key Messages Maintaining relentless focus on risk management and operational excellence Major project start-ups delivering production volume growth through 2017 Improving Upstream unit profitability Developing a unique and balanced set of profitable growth opportunities
Slide 6: Results
Financial & Operating Review Results Sustained solid financial and operating results Improved safety performance Rigorous environmental management Strong financial / operating results Earnings $32.6B ROCE 17.2% Cash flow from operations * Includes dividends and share purchases to reduce shares outst
Slide 7: Safety Performance
Financial & Operating Review Safety Performance Committed to safe operations Workforce Lost-Time Incident Rate Incidents per 200K hours Continued emphasis on personnel and process safety Committed to our vision of ‘Nobody Gets Hurt’ Awarded 2013 Green Cross for Safety® medal by the National Safety C
Slide 8: Environmental Performance
Financial & Operating Review Environmental Performance Committed to reducing environmental impacts Cogeneration Capacity & Hydrocarbon Flaring Indexed change, ‘09 -’13 ‘09 ‘10 ‘11* ‘12 ‘13 * XTO included beginning 2011. Cogeneration Flaring 120 100 80 60 Strong environmental performance Continued im
Slide 9: Earnings
Financial & Operating Review Earnings Earnings remain strong at $32.6B in 2013 Earnings $B 50 40 30 20 10 0 ‘09 ‘10 ‘11 ‘12 ‘13 Total earnings Chemical Downstream Upstream Industry-leading results in all business segments Lower gains from divestments and asset restructuring Progress across a diverse
Slide 10: Upstream Earnings per Barrel
Financial & Operating Review Upstream Earnings per Barrel Managing the Upstream portfolio to improve unit profitability Earnings per OEB* $/OEB 30 25 20 15 10 5 ‘09 ‘10 ‘11 ‘12 ‘13 CVX XOM TOT RDS BP * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. E
Slide 11: Reserves Replacement
Financial & Operating Review Reserves Replacement Consistently replacing reserves and adding quality resources Proved Reserves Replacement* Percent * Reserves replacement based on SEC pricing basis and including asset sales, except as noted in the Cautionary Statement. 2013 BP reserves replacement e
Slide 12: Return on Capital Employed
Financial & Operating Review Return on Capital Employed Proven business model continues to deliver ROCE leadership Return on Average Capital Employed* Percent * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. ROCE of 17% in 2013 Investments position f
Slide 13: Free Cash Flow
Financial & Operating Review Free Cash Flow Superior cash flow provides financial flexibility Free Cash Flow* $B XOM CVX BP RDS TOT Generated free cash flow of $104B since beginning of 2009 Balanced, high-quality portfolio Value of integrated model Provides capacity for unmatched shareholder distrib
Slide 14: Unmatched Shareholder Distributions
Financial & Operating Review Unmatched Shareholder Distributions Disciplined capital allocation Shareholder Distributions as % of Cash Flow from Operations and Asset Sales* Percent * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. Invest in attractive
Slide 15: Increasing Ownership
Financial & Operating Review Increasing Ownership Enhanced per-share interest in ExxonMobil production Production Growth per Share* Indexed growth, ‘09 - ‘13 * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. Each share has an interest in 16% more prod
Slide 16: Share Performance
Financial & Operating Review Share Performance Long-term returns exceed competitor average and S&P 500 Shareholder Returns $K, value of $1,000 invested (as of YE 2013) ExxonMobil Competitor average* S&P 500 * RDS, BP, TOT, and CVX. Competitor data estimated on a consistent basis with ExxonMobil and
Slide 17: Energy Outlook
Energy Outlook Rex Tillerson Chairman and CEO
Slide 18: Energy Demand to 2040
Energy Outlook Energy Demand to 2040 Global energy demand expected to grow about 35% by 2040 Energy Demand Quadrillion BTUs Oil and natural gas are leading sources as energy mix evolves Higher oil demand driven by expanding transportation needs Strong growth in natural gas led by power generation Pa
Slide 19: Developing Economies Lead Growth
Energy Outlook Developing Economies Lead Growth Asia Pacific will account for about 65% of global demand increase Non-OECD Countries* OECD Countries* Quadrillion BTUs Quadrillion BTUs Source: ExxonMobil 2014 Outlook for Energy. * OECD: Organisation for Economic Co-operation and Development. ** Other
Slide 20: Liquids and Gas Supplies Expand and Diversify
Energy Outlook Liquids and Gas Supplies Expand and Diversify Advances in technology enable growth from unconventional resources Liquids Gas MOEBD BCFD Source: ExxonMobil 2014 Outlook for Energy. 120 100 80 60 40 20 0 2010 2025 2040 Others Oil sands Tight oil Deepwater NGLs Conventional crude & conde
Slide 21: Transportation Product Demand
Energy Outlook Transportation Product Demand Diesel will surpass gasoline as the primary transportation fuel Global Demand MOEBD Transportation product mix will shift as demand rises more than 40% Demand for diesel driven by expanding commercial activity Gasoline demand will be relatively flat, refl
Slide 22: Global Chemical Demand
Energy Outlook Global Chemical Demand Chemical demand growth driven by Asia Pacific Global Chemical Demand* Million metric tons Demand growth rate above GDP as standards of living improve Two-thirds of growth in Asia Pacific Chemicals provide cost and material attribute advantages Sources: IHS Chemi
Slide 23: Key Perspectives
Energy Outlook Key Perspectives Outlook guides our business strategy and investment plans Development of practical, reliable and affordable energy remains paramount Access to high-quality resources both necessary and challenging Technology advancements are key enabler to safe and effective developme
Slide 24: Strategic Overview
Strategic Overview Rex Tillerson Chairman and CEO
Slide 25: Key Elements of ExxonMobil Strategy
Strategic Overview Key Elements of ExxonMobil Strategy Unrelenting focus on creating long-term shareholder value Employ effective risk management and lead industry in operational excellence Manage a diversified, balanced portfolio to mitigate risks and optimize profitability Leverage integration ben
Slide 26: Risk Management
Risk Management Rex Tillerson Chairman and CEO
Slide 27: Risk management is at the core of our business
Risk Management Risk management is at the core of our business Operations Integrity Management System (OIMS) Systematic managed approach Rigorously applied systems and processes Clearly defined policies, standards and practices Ensure accountability Measure performance Recognize progress Plan future
Slide 28: Incident Prevention & Emergency Preparedness
Risk Management Incident Prevention & Emergency Preparedness Leveraging proven systems Comprehensive risk assessment protocols Sound design, construction, operating and maintenance standards Continuous inspection and state-of-the-art process control systems Fully integrated incident command system W
Slide 29: Delivering Profitable Growth
Delivering Profitable Growth Rex Tillerson Chairman and CEO
Slide 30: Key Elements
Delivering Profitable Growth Key Elements
Slide 31: Major Project Production Outlook
Delivering Profitable Growth Major Project Production Outlook Delivering 1 MOEBD by 2017 Major Project Production by Start-up Year* MOEBD, net 1.0 0.8 0.6 0.4 0.2 0.0 ‘13 ‘14 ‘15 ‘16 ‘17 Select Projects Hebron Julia Phase 1 Upper Zakum 750 Gorgon Jansz Kearl Expansion Banyu Urip Cold Lake Nabiye Exp
Slide 32: Upstream Production Improvements
Delivering Profitable Growth Upstream Production Improvements Strategic choices to improve unit profitability Total Production Outlook* MOEBD, net Highgrading the base Maintain disciplined capital allocation Reduce lower margin barrels Minimize capital for North American gas Step up North American l
Slide 33: Upstream Production Outlook
Delivering Profitable Growth Upstream Production Outlook Improving volume and profitability mix Total Production Outlook* MOEBD, net Total production outlook 2014: Flat 2015 _ 2017: up 2-3% per year Liquids outlook 2014: up 2% 2015 _ 2017: up 4% per year Gas outlook 2014: down 2% 2015 _ 2017: up 1%
Slide 34: Investment Plan
Delivering Profitable Growth Investment Plan Disciplined investing through the business cycle Capex by Business Line 2013 peak total capex year Expect to invest $39.8B in 2014 Reduced Upstream spending Selective Downstream and Chemical investments Average less than $37B per year from 2015 to 2017 $B
Slide 35: Free Cash Flow
Delivering Profitable Growth Free Cash Flow Strong track record of free cash flow continues Free Cash Flow $B Inflection point after intensive Upstream capital spending program Upstream volume production growth Improved profitability mix Capex rollover Downstream & Chemical contribution 40 30 20 10
Slide 36: Upstream Production Growth through 2017
Upstream Production Growth through 2017 Mark Albers Senior Vice President
Slide 37: Major Project Start-ups
Upstream Production Growth through 2017 Major Project Start-ups Large inventory of diverse projects Asia Africa Australia/Oceania Americas 24 BOEB Developing 24 BOEB Pursuing > 120 projects; 21 start-ups by 2017 Diverse resource types Attractive fiscal regimes Record 10 major project start-ups in 20
Slide 38: North American Growth
Upstream Production Growth through 2017 North American Growth Well positioned for profitable growth in North America North American Production (MOEBD) 1.2 0.8 0.4 0 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 Conventional Unconventional Gas Liquids Gas Strong and diverse leasehold position Differentiating technology ap
Slide 39: US Liquids Growth
Upstream Production Growth through 2017 US Liquids Growth Highgrading opportunity pursuit towards liquids-rich plays Onshore U.S. - Operated Rigs 75 50 25 0 Oil and Liquid-rich Gas ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 ‘17 U.S. Onshore Liquid Plays (KBD) 250 150 50 Ardmore/Marietta, Permian, Bakken ‘10 ‘11 ‘1
Slide 40: Bakken Tight Oil
Upstream Production Growth through 2017 Bakken Tight Oil Delivering high-margin growth in the Onshore U.S. Strong growth in premier tight oil play > 900 million BOE resource 81% year-on-year growth Strategic bolt-on acquisitions High-margin development Pad development Optimized drilling and completi
Slide 41: Oil Sands – Kearl Start-up
Upstream Production Growth through 2017 Oil Sands – Kearl Start-up Initiated production – providing 40+ years of plateau volumes Innovative froth treatment design creating value and driving capital efficiency 4.6 billion-barrel resource Production steadily increasing to design capacity Capturing ben
Slide 42: Oil Sands – Value Chain Integration
Upstream Production Growth through 2017 Oil Sands – Value Chain Integration Leveraging full value chain to maximize profitability: Research – Production – Logistics – Refining – Marketing Capturing technology benefits and near-term optimization Attractive logistic solutions that deliver broad market
Slide 43: Conventional
Upstream Production Growth through 2017 Conventional Improving unit profitability Abu Dhabi Upper Zakum to 750 KBD Artificial islands with long reach wells Improved fiscal terms Indonesia Banyu Urip 450 MBO onshore oil development Early production of almost 30 KBD Iraq West Qurna I Capacity reached
Slide 44: Deepwater
Upstream Production Growth through 2017 Deepwater Building on significant deepwater experience Extensive portfolio of high quality resources Capturing near-term benefits of existing infrastructure Angola Kizomba expansion Nigeria Erha North tie-back GOM Hadrian South 2014 start-up GOM Julia spud mid
Slide 45: Papua New Guinea LNG
Upstream Production Growth through 2017 Papua New Guinea LNG Execution capability unlocks value High quality 9 TCF resource Execution leveraging global expertise Remote mountainous terrain 200 crossings; 9,000 ft. elevation change Extensive government and community consultation Mid 2014 start-up Sal
Slide 46: Arctic
Upstream Production Growth through 2017 Arctic Continuing more than 90 years of arctic development Sakhalin-1 Arkutun-Dagi Installing topsides in mid-2014 Target start-up around year-end 2014 Hebron Gravity-based structure and topside construction underway 2017 production start-up Hibernia Southern
Slide 47: Improving Efficiency, Recovery and Reliability
Upstream Production Growth through 2017 Improving Efficiency, Recovery and Reliability Maximizing value of installed capacity Industry-leading reliability Close to 25% less downtime Industry-leading cost management Improving recovery from existing fields * Cost defined as production costs excluding
Slide 48: Summary
Upstream Production Growth through 2017 Summary Major start-ups delivering 1 MOEBD net production by 2017 Delivering profitable growth Deep and diverse portfolio Superior execution capability Industry-leading technologies Disciplined cost management
Slide 49: Upstream Long-Term Opportunity Set
Upstream Long-Term Opportunity Set Andrew Swiger Senior Vice President
Slide 50: Resource Base
Upstream Long-Term Opportunity Set Resource Base Superior resource base underpins high-quality projects Large, diverse, and well-balanced portfolio 25 BOEB proved reserves 66% proved developed 28 BOEB – in design and development 37 BOEB – evaluating for the future BOEB 90 60 30 0 Heavy Oil/ Oil Sand
Slide 51: New Opportunity Growth
Upstream Long-Term Opportunity Set New Opportunity Growth Large portfolio of quality opportunities enables selectivity Play Type Deepwater / Conventional Arctic Unconventional
Slide 52: Russia
Upstream Long-Term Opportunity Set Russia Exploring highly prospective Arctic basins Some of the largest undiscovered potential in the world 188 million acres Numerous basins Data gathering well under way Seismic Environmental and geotechnical surveys Kara Sea - preparing to drill in 2014 West Siber
Slide 53: Black Sea
Upstream Long-Term Opportunity Set Black Sea Strong position in emerging new hydrocarbon province Appraising Romania Domino discovery Multi-TCF discovery Significant follow-on potential Pursuing Ukraine Skifska block Preparing to test new basin in Russia 990 thousand acres; multiple plays Processing
Slide 54: Kurdistan Region of Iraq
Upstream Long-Term Opportunity Set Kurdistan Region of Iraq Testing large structures in proven plays Significant hydrocarbon potential Offset discoveries Six PSCs; multiple plays Acquired seismic data in 2013 Two rig operations underway
Slide 55: Global Unconventional
Upstream Long-Term Opportunity Set Global Unconventional Advancing potential world-class unconventional plays Leveraging XTO capabilities Argentina – delineating play High-potential Vaca Muerta oil and gas shale plays Testing under way Colombia – commencing operations Promising La Luna liquids poten
Slide 56: Africa
Upstream Long-Term Opportunity Set Africa Growing number of new opportunities 4.5M gross acres through new country entries South Africa, Gabon, and Liberia Resumed activities in Madagascar Drilling success in Nigeria and Tanzania Development planning underway Extensive portfolio of leads Drilling pl
Slide 57: LNG Portfolio
Upstream Long-Term Opportunity Set LNG Portfolio Well positioned to meet rapidly growing LNG demand Under Construction New Project Opportunities LNG Production (MTA Gross) Current Under Construction 0 64 86 100 150 Growing global LNG demand Expected to more than double by 2025 New supplies required
Slide 58: North America LNG Opportunities
Upstream Long-Term Opportunity Set North America LNG Opportunities Matching abundant local supply with export capability Global LNG Supply MTA 750 500 250 0 2010 2025 2040 North America Rest of world North America Position Golden Pass FTA permit in place; pursuing non-FTA FERC pre-filing process ong
Slide 59: Upstream Summary
Upstream Long-Term Opportunity Set Upstream Summary Well positioned for long-term profitable growth Superior resource base Large new opportunity set Project selectivity and capital efficiency Unlock potential through capabilities Leading project development expertise
Slide 60: Strengthening the Downstream & Chemical Portfolio
Strengthening the Downstream & Chemical Portfolio Mike Dolan Senior Vice President
Slide 61: Premier Businesses
Strengthening the Downstream and Chemical Portfolio Premier Businesses Sustained industry-leading results Best-in-class operations Flexibility and optimization tools Technology-enabled, high-value product growth Industry-leading portfolio Pacesetter integrated facilities Disciplined portfolio manage
Slide 62: Increasing Advantage in the Downstream
Strengthening the Downstream and Chemical Portfolio Increasing Advantage in the Downstream Focus on strategic assets Lowering raw material cost Increasing high-value product yield Expanding logistics capability Reducing operating cost Disciplined portfolio management
Slide 63: Lowering Raw Material Cost
Strengthening the Downstream and Chemical Portfolio Lowering Raw Material Cost New crude production driving investments Mid-Continent* / Gulf Coast Equity Refining Capacity KBD Source: PIRA data. * United States and Canada. Largest Mid-Continent / Gulf Coast refining footprint Well positioned to ben
Slide 64: Increasing High Value Product Yield
Strengthening the Downstream and Chemical Portfolio Increasing High Value Product Yield Expanding diesel and lubes production Increased diesel capacity in Singapore and Saudi Arabia Developing coker project at Antwerp Expanding high-performance lube basestock capacity Blend plant investments support
Slide 65: Strategic Investments in Chemical
Strengthening the Downstream and Chemical Portfolio Strategic Investments in Chemical Developing major projects in United States, Saudi Arabia, and Singapore Capture advantaged feedstocks Reduce production costs Increase high-value products Leverage integration Target growth markets
Slide 66: United States
Strengthening the Downstream and Chemical Portfolio United States Growing North American advantage U.S. Ethylene Production from Ethane* Percent Sources: Jacobs Consultancy The Hodson Report. * Includes ethane and ethane equivalents. World-scale ethylene plant at Baytown Maximizes value of integrati
Slide 67: Saudi Arabia
Strengthening the Downstream and Chemical Portfolio Saudi Arabia Expanding specialties footprint World-scale synthetic rubber and elastomer facilities Builds on existing JV platform Supports development of rubber value chain On plan for 2015 start-up
Slide 68: Singapore
Strengthening the Downstream and Chemical Portfolio Singapore Serving Asia Pacific growth markets Adding synthetic rubber and adhesive products World-scale, based on advantaged feedstocks Lower-cost production via integration Start-up planned for 2017
Slide 69: Downstream and Chemical Summary
Strengthening the Downstream and Chemical Portfolio Summary Positioned to continue delivering industry-leading results Downstream and Chemical Combined ROCE Percent 40 30 20 10 0 Exxon Mobil Competitor range* ‘04 ‘05 ‘06 ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 Sustained, industry-leading financial performance a
Slide 70: Break
Break
Slide 71: Summary
Summary Rex Tillerson Chairman and CEO
Slide 72: Positioned to Deliver Profitable Growth
Summary Positioned to Deliver Profitable Growth
Slide 73: Key Messages
Summary Key Messages Maintaining relentless focus on risk management and operational excellence Major project start-ups delivering production volume growth through 2017 Improving Upstream unit profitability Developing a unique and balanced set of profitable growth opportunities Continuing discipline
Slide 74: Q&A
Q&A