Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2009)
81 slides from Exxon Mobil's investor day presentation, Mar 11, 2009
Slide 1: 2009 Analyst Meeting
[| ExxonMobil Taking on the world’s toughest energy challenges? @ i ) 2009 Analyst Meeting New York Stock Exchange March 5, 2009
Slide 2: Cautionary statement
cautionary statement or the subsequent discussion period are forward-looking statements. Actual future results, including demand growth and mix; ExxonMobil’s own production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; p
Slide 3: Taking on the world's toughest energy challenges
ExonMobil ‘Taking on the world's toughest energy challenges” S
Slide 4: 2008 results
• industry-leading safety performance • record financial performance – net income $45.2 B – ROCE % – cash flow from operations and asset sales $66 B • total distributions to shareholders* $40 B • capex $26 B • reserves replacement** % • total shareholder return -13 % *includes dividends and share pu
Slide 5: Safety leadership
safety leadership lost time incident rate U.S. petroleum industry employee benchmark* *2008 industry data not available U.S. petroleum industry contractor benchmark* Nobody Gets Hurt employee contractor incidents per 200K hours 0.5 0.4 0.3 0.2 0.1 0.0 '01 '02 '03 '04 '05 '06 '07 '08 '01 '02 '03 '04
Slide 6: Environmental performance
environmental performance • reducing spills to the environment – zero spills from company-operated and long-term chartered marine vessels • reducing GHG emissions from operations – improving energy efficiency – increasing cogeneration – reducing flaring Protect Tomorrow. Today. '04 '05 '06 '07 '08 s
Slide 7: Record earnings
record earnings • superior results in all business segments • commitment to operational excellence • capitalizing on competitive advantages '04 '05 '06 '07 '08 Chemical Downstream Upstream net income $B normalized earnings
Slide 8: Superior ROCE
*competitor data estimated on a consistent basis with ExxonMobil, and based on public information superior ROCE • industry-leading returns • strength of integrated portfolio • consistent execution of business model • disciplined investment across the business cycle 2008 return on average capital emp
Slide 9: Record cash flow
record cash flow • record $60 billion in 2008 • average $50 billion per year from 2004 to 2008 • disciplined cash management *excludes asset sales '04 '05 '06 '07 '08 cash flow from operating activities * $B
Slide 10: Disciplined investments
disciplined investments *average capex - '04 '05 '06 '07 '08 geographic capex distribution* U.S. Europe Africa Asia Pacific / Middle East Russia / Caspian Canada / Latin America $99 billion invested from 2004 to 2008 Chemical / Other Downstream Upstream capex by business line $B
Slide 11: Reliable and growing dividends
reliable and growing dividends • paid dividends each year for more than 100 years • dividends per share increased each year since 1983 • dividends per share increased 58% over the last 5 years – average growth 9.6% per year – U.S. inflation average 3.2% per year* 0.00 0.40 0.80 1.20 1.60 '04 '05 '06
Slide 12: Cumulative share purchases
cumulative share purchases • record $32 billion distributed in 2008 • $109 billion distributed over the last five years • reduced shares outstanding by 24% since beginning of 2004 '04 '05 '06 '07 '08 purchases to reduce shares outstanding $B
Slide 13: Total shareholder distributions
total shareholder distributions • $40 billion total distribution to shareholders – dividends $8 billion – share purchases $32 billion – larger than total distributions of competitors combined • total distribution yield 7.9% * competitor data estimated on a consistent basis with ExxonMobil, and based
Slide 14: Increasing ownership: growth per share since 2004
-20 -10 % growth per share since 2004* XOM BP CVX RDS XOM BP CVX RDS production proved reserves** refinery throughput *competitor data estimated on a consistent basis with ExxonMobil, and based on public information **2008 reserves data estimated for CVX based on Q4 earnings release; reserves data u
Slide 15: Increasing value per share
increasing value per share • average 22% EPS growth per year • captured upside • growth driven by – strong business performance – higher commodity prices and margins – share purchases contributed $2.26 to 2008 EPS** '04 '05 '06 '07 '08 *cash flow from operating activities **versus number of shares o
Slide 16: Recent business environment
recent business environment • volatile commodity prices and margins • changing near-term demand • dramatic financial market changes • adjustments by competitors to business plans ExxonMobil well-positioned, now and for the future
Slide 17: Energy demand to 2030
• economic progress driving global energy demand higher • oil and natural gas are indispensable • requirements to meet rising demand: – integrated solutions – technology innovations – massive investments – timely execution energy demand to 2030 '80 '05 '30 energy demand MBDOE gas oil wind, solar & b
Slide 18: Investing for the future
investing for the future '10 - '13 average '03 - '07 average '08 '09 estimate $B estimate range $B capex by business line estimate Chemical / Other Downstream Upstream
Slide 19: ExxonMobil strengths
ExxonMobil strengths • portfolio quality • global integration • discipline and consistency • value maximization • long-term perspective underpinned by superior technology, organization, and financial strength industry leadership through the business cycle
Slide 20: Taking on the world's toughest energy challenges
ExonMobil ‘Taking on the world's toughest energy challenges” S
Slide 21: 2008 highlights
2008 highlights • earnings $35.4 B • ROCE 53.6 % • production volumes 3.9 MOEBD • resource adds 2.2 BOEB • proved reserves adds 1.5 BOEB • capex $19.7 B
Slide 22: Upstream strategies
Upstream strategies • ensure operations integrity: best-in-class performance • identify and capture all attractive exploration opportunities • invest in projects that deliver superior returns • maximize profitability of existing oil and gas production • capitalize on growing natural gas and power ma
Slide 23: ExxonMobil strengths
ExxonMobil strengths • portfolio quality • global integration • discipline and consistency • value maximization • long-term perspective combining our strategies and strengths allows us to: - capture the highest-quality resources - develop them more cost effectively and in less time than others - con
Slide 24: Superior resource base
superior resource base BOEB resource type resource distribution YE '08 Americas Europe Russia / Caspian Africa Asia Pacific Middle East LNG unconventional gas conventional deepwater arctic heavy oil acid / sour gas
Slide 25: Adding to the resource base
adding to the resource base • 2.2 BOEB resource additions in 2008, with key contributions from: – onshore U.S. – deepwater Gulf of Mexico – Athabasca – West Africa • completed 77 exploratory wells – 60% wildcat success rate • 2008 finding cost of $1.3 per OEB '00 '02 '04 '06 '08 average '04 to '08 B
Slide 26: Increasing prospective acreage
increasing prospective acreage key 2008 captures 42% increase in net exploration acreage from 2003 to 2008 '03 '08 million acres Americas Europe, Africa Asia, Middle East, Russia net exploration acreage
Slide 27: Key exploration wells
key exploration wells 2010+ Brazil Canada Orphan Madagascar Australia U.S. Gulf of Mexico Angola Nigeria Indonesia Cepu Libya New Zealand UK North Sea Germany Canada Beaufort Ireland Philippines Hungary Romania Canada Horn River 3 new deepwater rigs under contract Indonesia Makassar West Greenland
Slide 28: Reserves base: size and diversity
Asia Pacific / Middle East Americas Europe Africa Russia / Caspian oil gas conventional LNG acid / sour gas arctic heavy oil deepwater reserves base: size and diversity product region resource '04 '05 '06 '07 '08 '04-'08 average *excludes year-end price/cost effects and includes Canadian oil sands o
Slide 29: Strong project inventory
strong project inventory number of projects (YE '08) project stage geography resource Middle East Americas Europe Africa Russia / Caspian conventional LNG arctic heavy oil / oil sands deepwater Asia Pacific unconventional gas acid / sour gas operating executing defining planning / selecting
Slide 30: Angola and Nigeria project cycle time
Angola and Nigeria* project cycle time • 7 operated deepwater projects in West Africa – 270 KBD net production – two FPSO start-ups in 2008 – leveraged designs reduce cycle time and cost – Kizomba uptime of 98% • GoM: 7 wells and 141 new blocks in 2008 • first deepwater Santos Basin wildcat • new pl
Slide 31: Unconventional gas resources: acquisition cost
acquisition cost* (unit cost) 1,000 10,000 100,000 1,000 10,000 100,000 ExxonMobil competitor entry cost (U.S. $ per acre) unconventional gas resources • global approach to capture highest-quality opportunities – acreage in high-value gas markets (Europe, North America) – drilling programs under way
Slide 32: Global LNG integration
'05 '06 '07 '08 '09 '10 ExxonMobil JV LNG shipping capacity million m ³ global LNG integration Nigeria Gorgon -Jansz Arun Qatar Scarborough PNG existing LNG production future LNG terminal major LNG market existing LNG production future LNG terminal major LNG market
Slide 33: Oil sands resources
mining slurry preparation oil sands hydro transport / conditioning diluted bitumen froth treatment extraction tailings storage Phase 1 Phase 3 Phase 2 • very high-quality oil sands portfolio • proprietary froth treatment process removes need for upgrader – lowest unit development cost • Kearl: phase
Slide 34: 2008 start-ups
2008 start-ups 2008 start-ups Saxi / Batuque 2008 major project start-ups East Area NGL II Thunder Horse Starling Mondo Volve Jerneh B ACG Phase 3 Qatargas II Train 4 offshore KOEBD, net KOEBD, net ' ' ' ' ' ' ' '
Slide 35: 2009 start-ups
2008 start-ups 2009 start-ups 2008 start-ups 2009 start-ups 2009 major project start-ups Adriatic LNG Terminal Qatargas II Train 5 RasGas Train 6 Al Khaleej Gas Phase 2 RasGas Train 7 Tyrihans LNG Terminal South Hook Terminal Piceance Phase 1 Qatargas II Train 4 KOEBD, net ' ' ' ' ' ' ' ' KOEBD, net
Slide 36: Future capacity growth
2010+ start-ups 2009 start-ups 2008 start-ups AKG Ph 2, Qatargas II Train 5, RasGas Train 6 & 7 Qatargas II Train 4, East Area NGL II Kearl Ph 1 PNG LNG Kashagan '08 '09 '10 '11 '12 '13 '14 '15 KOEBD, net 2010+ major project start-ups long-plateau volumes build-up other flowstreams long-plateau volu
Slide 37: Project execution
project execution schedule performance 114% 103% 116% 105% variance: actual versus funded (%), '04 to '08 start - ups cost performance ExxonMobil operated operated by others
Slide 38: Adding reserves at lower cost
adding reserves at lower cost '04 -'07 proved reserves additions* '04 - '07 exploration and development capex XOM BP RDS CVX BOEB $B XOM BP RDS CVX '04-'07 reserves replacement cost** $ per OEB XOM BP RDS CVX *calculated using year-end pricing; includes Canada oil sands; excludes asset sales. 2008 c
Slide 39: Global best operating practices
tight gas Piceance Hungary global best operating practices heavy oil operations Syncrude Kearl FPSO projects West Africa Kizomba C extended reach drilling SYU Sakhalin 1 operations uptime, '04 to '08 93% 91% ExxonMobil operated operated by others %
Slide 40: Industry-leading cost management
industry-leading cost management *Upstream technical costs (FAS 69) normalized using 10-K/20-F information; 2008 competitor data not available for all companies due to later SEC filing deadline cash costs per OEB, indexed* total costs per OEB, indexed* '04 '05 '06 '07 XOM RDS BP CVX '04 '05 '06 '07
Slide 41: Industry-leading volumes per share
industry-leading volumes per share *competitor data estimated using a consistent basis with ExxonMobil, and based on public information; 2008 reserves data estimated for CVX based on Q4 2008 earnings release; 2007 reserves data used for BP and RDS as 2008 data not yet available '04 '05 '06 '07 '08 r
Slide 42: Industry-leading earnings
XOM CVX RDS BP industry-leading earnings '04-'08 net income per barrel $ / OEB *competitor data estimated on a consistent basis with ExxonMobil, and based on public information
Slide 43: Industry-leading returns
industry-leading returns *competitor data estimated on a consistent basis with ExxonMobil, and based on public information XOM BP RDS CVX average capital employed* reported net income* return on average capital employed* $B $B % XOM BP RDS CVX XOM BP RDS CVX '04 '08 '04 '08
Slide 44: Long-term commitment to research
commercial applications identified opportunities long-term commitment to research evaluation Fast Drill Process LASER Controlled Freeze Zone ™ EMColdFlow ™ Sub-Seismic Reservoir Characterization Advanced Subsurface Imaging
Slide 45: Long-term partner of choice
long-term partner of choice West Africa Asia Pacific Middle East 125 years of experience working with host countries with NOC resource owners from USGS with ExxonMobil Upstream participation top 30 countries
Slide 46: Long-term investing for future growth
long-term investing for future growth • ExxonMobil continues to take a long-term view and invest in attractive projects – financial strength to invest through the cycle – increased development project investment to deliver near- to mid-term volumes – increased exploration activity driven by quality
Slide 47: Profitable production growth
liquids gas Asia Pacific / Middle East Americas Africa Russia / Caspian Europe '08 '09 '10 '11 '12 '13 total production outlook '08 '09 '10 '11 '12 '13 MOEBD, net MOEBD, net profitable production growth
Slide 48: Upstream summary
Upstream summary • largest, highest-quality opportunity portfolio • lowest life-cycle cost, exploration to production • highest standards of integrity • proprietary suite of industry-leading technologies • superior value for our shareholders and for resource owners • uniquely positioned for attracti
Slide 49: Taking on the world's toughest energy challenges
ExonMobil ‘Taking on the world's toughest energy challenges* 7 € a8 e a
Slide 50: 2008 highlights
• strong financial performance – earnings $ 8.2 B – ROCE 31.8 % – refinery throughput 5.4 MBD – petroleum product sales 6.8 MBD • focus on operational excellence • maintaining capital discipline • results underpinned by technology, efficiency, integration, and margin enhancement 2008 highlights
Slide 51: Downstream industry environment
downstream industry environment *ExxonMobil estimates • – products growth averages about 1% per year • diesel demand driving growth • gasoline demand slowing '80-'90 '90-'00 '00-'10 '10-'20 '20-'30 global products demand* annual compound growth %
Slide 52: Downstream strategies
Downstream strategies • maintain best-in-class operations, in all respects • provide quality, valued products and services to our customers • lead industry in efficiency and effectiveness • capitalize on integration with other ExxonMobil businesses • selectively invest for resilient, advantaged retu
Slide 53: Operational excellence
operational excellence project execution controls integrity reliability energy efficiency safety and environment product quality
Slide 54: Business overview
23% 27% 20% 51% 42% 50% 26% 31% 30% sales volume refining capacity 1.7 MBD 1.4 MBD retail sites 6.7 #K Asia Pacific Americas sales volume refining capacity 2.6 MBD 3.4 MBD retail sites 14.5 #K business overview refineries (37 total) total YE '08 refining capacity 6.2 MBD retail sites 28.7 K sales vo
Slide 55: Fuels marketing structural advantages
fuels marketing structural advantages • largest supplier / marketer of petroleum products • leveraging integration with Refining • broad spectrum of customer channels • product placement for highest value • global systems, work processes and best practices global fuel sales Industrial & Wholesale 23
Slide 56: Fuels marketing self-help
fuels marketing self-help improved efficiency and portfolio highgrading delivers higher returns *all data at constant foreign exchange rates; operating cost efficiency at constant foreign exchange rates and energy price '04 '06 '08 -10 -5 '04 '06 '08 -50 -40 -30 -20 -10 '04 '06 '08 capital productiv
Slide 57: Lubes structural advantages
lubes structural advantages • largest global manufacturer of lube basestocks • leveraging integration with Refining and Chemical • leading synthetic lube brands • renowned for innovation and technology leadership • strong relationships with original equipment manufacturers source: ExxonMobil estimat
Slide 58: Lubes self-help
-70 -60 -50 -40 -30 -20 -10 '04 '06 '08 '04 '06 '08 '04 '06 '08 lubes self -help synthetic lubricants growth key growth markets* sales, percent change ExxonMobil Industry ExxonMobil Industry operating efficiencies business simplification, leadership in brand and technology ensure long-term competiti
Slide 59: Refining structural advantages
capacity and scale advantage '02 '04 '06 '08 unit cash operating expense* indexed ExxonMobil Industry '02 '04 '06 '08 unit cash operating expense* indexed ExxonMobil Industry average refinery size KBD average refinery size KBD XOM BP RDS Industry integration with chemicals or lubes % XOM RDS BP Indu
Slide 60: Refining self-help
refining self-help *ExxonMobil capacity share excluding divestments and acquisitions **only even-year Solomon data available through '06; '08 estimated by ExxonMobil; data indexed to ExxonMobil ('02) source: energy intensity based on data from Solomon Associates and ExxonMobil estimates '04 '05 '06
Slide 61: Improved catalysts
improved catalysts technology leadership site optimization advanced modeling advanced lubricants efficiency and reliability
Slide 62: Advantaged investments
advantaged investments product demand integrated projects efficiency unit expansions and debottlenecks lower-sulfur diesel Fujian joint venture cogeneration increased conversion capacity
Slide 63: Portfolio highgrading
portfolio highgrading major business restructuring activities '00 - '08* *announced/completed in one or more Downstream business functions
Slide 64: Industry-leading returns
industry-leading returns • proven business strategies • leveraging corporate strengths • significant competitive advantage *competitor data estimated on a consistent basis with ExxonMobil, and based on public information % return on average capital employed* '00 '02 '04 '06 '08 ExxonMobil Competitio
Slide 65: Taking on the world's toughest energy challenges
ExxonMobil ‘Taking on the world's toughest energy challenges" . ~e
Slide 66: 2008 highlights
2008 highlights • earnings of $3.0 B, ROCE of 20.4 % – global scale – integration and feedstock flexibility • operational excellence continues – safety – efficiency • capex of $2.8 B – advantaged Asia Pacific growth – specialty business growth
Slide 67: Chemical industry environment
'90 '95 '00 '05 '10 '15 PE, PP, PX demand* MTA paraxylene (PX) polypropylene (PP) polyethylene (PE) chemical industry environment *ExxonMobil estimates
Slide 68: Chemical industry environment: margins and capacity
'90 '95 '00 '05 '10 '15 margin, nominal, indexed PE, PP, PX trends* capacity util., % '90 '95 '00 '05 '08 margin capacity utilization PE, PP, PX demand* MTA Asia Pacific Europe / Middle East / Africa Americas chemical industry environment *ExxonMobil estimates
Slide 69: Chemical strategies
Chemical strategies • unique portfolio of global businesses • integration across ExxonMobil operations • relentless focus on operational excellence • disciplined investment in advantaged projects • technology leadership long-term strategy built on ExxonMobil’s strengths
Slide 70: High-performing business portfolio: business mix
earnings, $B business mix high-performing business portfolio '95 '05 aromatics polyethylene polypropylene olefins cyclical commodity businesses butyl polymers specialty elastomers adhesive polymers fluids oxo alcohols synthetics films less cyclical specialty businesses petroleum additives commodity
Slide 71: High-performing business portfolio: geographic mix
high-performing business portfolio geographic mix 2008 sales volume earnings, $B business mix '95 '05 commodity specialty '00 Americas Asia Pacific Europe / Middle East / Africa
Slide 72: Value through integration
value through integration basic chemicals polymers / intermediates specialties chemical plant refinery production gas processing refinery steam cracker polyethylene plant
Slide 73: Operational excellence
operational excellence source: Solomon Associates *only odd-year Solomon data available '03-'07, data indexed to ExxonMobil ('03) '03 '05 '07 '03 '05 '07 global steam cracker efficiency, indexed North America steam cracker fixed costs, indexed operating costs* widening our efficiency advantage versu
Slide 74: Metallocene products sales growth
'04 '08 metallocene products sales growth indexed premium product growth focus areas • solutions to customer needs • technology investment • commodity differentiation • Asia demand growth
Slide 75: Major growth projects
major growth projects MT PE, PP, PX demand growth* existing large / integrated sites in Asia Pacific and the Middle East NA SA India Europe Other China Middle East MTA '90 '95 '00 '05 '10 '15 PE, PP, PX net trade* Asia rest of world '95-'05 '05-'15 major growth projects currently under development *
Slide 76: Delivering superior returns
delivering superior returns • proven business strategies • leveraging corporate strengths • significant competitive advantage *competitor data estimated on a consistent basis with ExxonMobil, and based on public information **BP (through '04), RDS, CVX ExxonMobil Dow Chemical Integrated Oils** ' ' 0
Slide 77: Taking on the world's toughest energy challenges
ExonMobil ‘Taking on the world's toughest energy challenges* 7 € a8 e a
Slide 78: Proven business model
proven business model
Slide 79: Risk management
risk management • long-term planning • commitment to technology • consistent financial approach • global systems and processes • operational excellence • enduring business controls disciplined, comprehensive approach delivering long-term success
Slide 80: Growth in shareholder value
growth in shareholder value * RDS, CVX and BP 20 years 10 years 5 years ExxonMobil competitor average* S&P 500 value of $1,000 invested $K shareholder returns
Slide 81: ExxonMobil
ExxonMobil • industry-leading portfolio of businesses and assets • disciplined and consistent approach across the business • commitment to technology leadership • superior financial flexibility • relentless focus on maximizing long-term value • uniquely well-positioned for the future