Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2021)
83 slides from Exxon Mobil's investor day presentation, Mar 3, 2021
Slide 1: 2021 Investor Day
2021 INVESTOR DAY Virtual Webcast / 03.03.212021 INVESTOR DAY Virtual Webcast / 03.03.21
Slide 2: Cautionary Statement
CAUTIONARY STATEMENT FORWARD-LOOKING STATEMENTS. Outlooks; projections; goals; estimates; discussions of earnings, cash flow, margins, and resource potential; descriptions of strategic plans and objectives; planned capital and cash operating expense reductions and the ability to meet or exceed annou
Slide 3: Agenda
AGENDA • Welcome Stephen Littleton Vice President, Investor Relations and Secretary • Growing shareholder value Darren Woods Chairman of the Board and Chief Executive Officer in a lower-carbon future • Upstream Neil Chapman Senior Vice President • Downstream and Chemical Jack Williams Senior Vice Pr
Slide 4: 2021 Investor Day
2021 INVESTOR DAY 2021 INVESTOR DAY
Slide 5: 2020 Perspective
2020 PERSPECTIVE Delivered on commitments in a challenging environment while preserving long-term value • Managed global operations to supply essential energy and products with best-ever safety and reliability performance • Improved cash Opex by more than 15 percent with $3 billion of structural sav
Slide 6: Growing Long-Term Shareholder Value
GROWING LONG-TERM SHAREHOLDER VALUE Progressing actions to highgrade portfolio and improve earnings and cash flow • Committed to delivering sustainable shareholder value • Competitively advantaged assets and investments drive strong cash flow to sustain dividend, reduce debt, and invest in the futur
Slide 7: Growing Shareholder Value in a Lower-Carbon Future
GROWING SHAREHOLDER VALUE IN A LOWER-CARBON FUTUREGROWING SHAREHOLDER VALUE IN A LOWER-CARBON FUTURE
Slide 8: IPCC Expects a Diverse Energy Mix in Achieving 2°C
IPCC EXPECTS A DIVERSE ENERGY MIX IN ACHIEVING 2°C Multiple potential pathways to 2°C lead to wide range of projections 2040 ENERGY MIX IN IPCC LOWER 2°C SCENARIOS Quadrillion BTUs (Quads) High IPCC 2040 Wind/Solar Lower 2°C energy demand Bioenergy • Substantial efficiency gains range 19% Low-carbon
Slide 9: IPCC Oil & Gas Demand Driven by Economic Growth
IPCC OIL & GAS DEMAND DRIVEN BY ECONOMIC GROWTH Hard-to-decarbonize sectors meet demands from increasing population and growing prosperity GLOBAL ENERGY DEMAND IN IPCC LOWER 2°C SCENARIOS Quads • 80% of demand for oil and natural gas Wind Fuel driven by three sectors Other 21% Solar 20% Industrial B
Slide 10: Reducing Emissions Requires Innovation
REDUCING EMISSIONS REQUIRES INNOVATION Available alternatives do not fully meet sector needs POWER GENERATION TRANSPORTATION INDUSTRIAL Need: 24/7 on-demand electricity Need: rapid refueling of energy-dense fuels Need: fuel for high-temperature processes Electricity Oil and Bioenergy Gas Wind Electr
Slide 11: ExxonMobil Innovations to Reduce Emissions
EXXONMOBIL INNOVATIONS TO REDUCE EMISSIONS Focused on solutions for hard-to-decarbonize sectors TODAY TOMORROW • Switching coal to natural gas POWER • Cogeneration• Fuel cells for lower-cost CCS and hydrogen GENERATION • Lubricants for wind turbines • Fuels and lubricants to improve fuel COMMERCIAL
Slide 12: Proven Record in Advancing Low-Carbon Technologies
PROVEN RECORD IN ADVANCING LOW-CARBON TECHNOLOGIES Focused on solutions aligned with competitive strengths and experience Controlled Freeze LaBarge Zone™ Gorgon expansion commercial demonstration Low Carbon Solutions LaBarge created Qatar Qatar expansion CCS Low-emission LaBarge Sleipner Venture Fue
Slide 13: Significant Value in Growing Markets
SIGNIFICANT VALUE IN GROWING MARKETS ExxonMobil well positioned to capitalize across value chains through 2040 and beyond Total Addressable Production Manufacturing Markets / Sectors 1 Market: 2040 Fuels ~$6T Transport Power gen Industrial Biofuels ~$400B Transport Hydrogen ~$1T 3 Oil and Natural ga
Slide 14: Positioned to Succeed in Carbon Capture
POSITIONED TO SUCCEED IN CARBON CAPTURE Leveraging position as the global CCS leader in a ~$2 trillion addressable market by 2040 1 TOTAL CO₂ CAPTURE Million tonnes • Leverages history and experience at scale 2 − #1 in the world for CO capture; 9 Mta capacity 2 3 − #2 in the world for CO pipelines 2
Slide 15: Improving Environment for CCS Deployment
IMPROVING ENVIRONMENT FOR CCS DEPLOYMENT Increasing government and market recognition of CCS importance Policy support is growing Technology for hard-to-abate sectors Offsets market >$200 billion is underfunded potential by 2040 % Billion USD per year 800 100 ◄$20 billion Buildings Africa annual Tra
Slide 16: CCS More Cost Effective Than Other Technologies
CCS MORE COST EFFECTIVE THAN OTHER TECHNOLOGIES Cost of CCS is well below many carbon reduction policies 1,2 CCS COSTS FOR MITIGATING INDUSTRIAL EMISSIONS $/tonne CO for conventional technology 2 • Two-thirds of emissions from point sources 3 U.S. EV Tax Credit (2020) 450 300 conducive to CCS IPCC C
Slide 17: ExxonMobil Research to Further Reduce CCS Costs
EXXONMOBIL RESEARCH TO FURTHER REDUCE CCS COSTS Targeting one-third lower cost by 2030 COST OF CCS $/tonne CO 2 • >10 years of CCS-related R&D • R&D focused on effectiveness and efficiency improvements − Advanced materials for improved capture and concentration − Design optimized for capital efficie
Slide 18: Positioned to Succeed in Hydrogen
POSITIONED TO SUCCEED IN HYDROGEN Leveraging position as a global leader in a ~$1 trillion addressable market by 2040 1 GLOBAL ENERGY DEMAND SUPPLIED BY HYDROGEN Quads • Hydrogen can decarbonize hard-to-abate sectors − Transportation (60%), power and buildings (20%), 2 and industry (20%) • Producing
Slide 19: Reducing Emissions Consistent with Goals of Paris
REDUCING EMISSIONS CONSISTENT WITH GOALS OF PARIS Plans provide affordable and reliable energy while minimizing environmental impacts 1,2,3 EXXONMOBIL AND SOCIETY’S EMISSIONS Percent reduction versus 2016 1 Society’s emissions 0.9 Paris submissions (estimated 2016 Nationally Determined Contributions
Slide 20: Positioned for a Lower-Carbon Future
POSITIONED FOR A LOWER-CARBON FUTURE Leveraging capabilities and expertise to reduce emissions and deliver value Low Research, develop, Operated Announced reduction Carbon commercialize GHG emissions plans to 1 Solutions >$13 Billion -6% since 2016 2025 new business to advance lower-emission solutio
Slide 21: Oil and Gas Investment Needed to Meet Demand
OIL AND GAS INVESTMENT NEEDED TO MEET DEMAND New supply required to offset depletion GLOBAL OIL SUPPLY AND DEMAND GLOBAL ENERGY DEMAND IN IPCC LOWER 2°C SCENARIOS Mbd Quads 120 525 High demand Wind t IEA STEPS demand Solar t Bioenergy Average 350 80 demand based Other on IPCC Lower 2°C scenarios Coa
Slide 22: Industry-Leading Assets and Investment Portfolio
INDUSTRY-LEADING ASSETS AND INVESTMENT PORTFOLIO Responsibly meeting the continued demand for oil and gas Operational excellence Capital flexibility Cash Opex 1 <0.02 LTIR $6 billion ~$35 /bbl best-ever workforce safety and in structural efficiencies by year- to maintain dividend at 10-year reliabil
Slide 23: Upstream
UPSTREAMUPSTREAM
Slide 24: Upstream Strategy Reconnect
UPSTREAM STRATEGY RECONNECT 2020 update • Reduced 2020 cash Opex by 18% versus 2019 • Deferred 2020-25 investments of ~$50 billion; value deferred with delayed Strengthening portfolio implementation competitiveness 1 • ~90% of 2021-25 Upstream investments have cost-of-supply ≤$35/bbl 2 • Finalizing
Slide 25: Industry-Leading Investments
INDUSTRY-LEADING INVESTMENTS Upstream capital program prioritizing low cost-of-supply opportunities 1 UPSTREAM INVESTMENTS Brent $/bbl required to generate the cost-of-supply plus 10% return 45 • Industry-leading investments focus on highest-return, lowest cost-of-supply opportunities $40/bbl Brent
Slide 26: High-Return Investments: Guyana
HIGH-RETURN INVESTMENTS GUYANA Industry’s largest oil-play discovered in the past decade GHG intensity Exploration Resource Production ~80% >45% lower ~9 Boeb >750 Kbd success rate with 18 than Upstream average in including three additional by 2026 1 2025; zero routine flaring discoveries discoverie
Slide 27: High-Return Investments: Guyana Development Schedule
HIGH-RETURN INVESTMENTS GUYANA Maintaining aggressive development schedule of low cost-of-supply resource DISCOVERED RESOURCE CAPACITY Boeb Kbd 9• Liza Phase 1 achieved nameplate capacity FPSO 6 1,000 • Liza Phase 2 on schedule for start-up in 2022 Future FPSO 5 − 2H21 arrival in Guyanese waters FPS
Slide 28: High-Return Investments: Guyana Exploration Success
HIGH-RETURN INVESTMENTS GUYANA Exploration success increasing value of developments ~100 MILES Stabroek Payara/Liza Mako/Uaru Yellowtail/Redtail Longtail/Turbot Haimara • Size and quality of resource enables: − Highly capital-efficient development − Extended production plateaus through facilities in
Slide 29: High-Return Investments: Permian
HIGH-RETURN INVESTMENTS PERMIAN Demonstrated ability to leverage short-cycle flexibility Resource Production GHG intensity Unique technology brings upside 1 ~10 Boeb ~700 Koebd ~50% lower >40% NPV increase from cube with more than 70% liquids net by 2025 in 2025 versus 2016 for the 3 2 developments
Slide 30: High-Return Investments: Permian Competitive Advantages
HIGH-RETURN INVESTMENTS PERMIAN Leveraging unique competitive advantages HYDROCARBON DENSITY MAP 1 • World-class resource base of ~10 Boeb − >70% higher-margin liquids Delaware • Development plans leverage unique set of Basin competitive advantages: Midland − Large contiguous acreage position Basin
Slide 31: Permian Poker Lake Development
HIGH-RETURN INVESTMENTS PERMIAN Unique Poker Lake development: >2.5 Boeb net resource, >65 thousand contiguous acres POKER LAKE UNIT • Largest contiguous development in the Permian Compression and pumps − Scale is key to lower cost and capital efficiency Separation and local storage Well pads • Mult
Slide 32: Permian Operating Performance in Delaware Basin
HIGH-RETURN INVESTMENTS PERMIAN Exceeding operating performance plans in the Delaware Basin 1 DAILY DRILLING LATERAL FEET FRAC STAGES PER DAY • Industry-leading drilling achievements 170% 240% >100% >50% − Fastest 2-mile Upper Wolfcamp (758 lat. ft/day) Improvement Improvement − Fastest Lower Wolfca
Slide 33: Permian Resource Recovery Increase
HIGH-RETURN INVESTMENTS PERMIAN >15% increase in resource recovery versus 2018 Achieving industry-leading well performance in Poker Lake 1 DELAWARE AVERAGE WELL OIL PRODUCTION RATES (365 DAYS) DELAWARE AVERAGE WELL CUMULATIVE OIL PRODUCTION Bbl/d Kbbl 300 700 2020 2019 2018 0 0 Poker ExxonMobil 6 0
Slide 34: Permian Flexible Development
HIGH-RETURN INVESTMENTS PERMIAN Flexible development with options to reduce spend as market changes PRODUCTION Koebd net 800 • Pace of investment set by objective to: − Maintain positive free cash ~$60/bbl − Deliver industry-leading capital efficiency − Achieve double-digit returns at <$35/bbl Produ
Slide 35: High-Return Investments: Brazil Bacalhau
HIGH-RETURN INVESTMENTS BRAZIL BACALHAU Expanding portfolio of low cost-of-supply deepwater developments GHG intensity Capacity Resource >65% lower 220 Kbd ~1 Boeb 1 than Upstream average in 2025 with start-up in 2024 for Phase 1 Cash flow Highly resilient High return ~$1 billion >10% >15% 2 3 2,3 o
Slide 36: High-Potential Brazil Exploration
HIGH-POTENTIAL BRAZIL EXPLORATION Leading position in one of the most prolific offshore basins in the world 1 Cutthroat-1 • Second largest IOC acreage position − 2.6 million net acres S e r g i p e B a s i n − Operate more than 60% Mairare-1* B R A Z I L • Multiple prospects averaging >1 Boeb of Uri
Slide 37: Resilient LNG Portfolio
RESILIENT LNG PORTFOLIO Diverse pipeline of low cost-of-supply developments Development status • Mozambique: Coral FLNG, 3.4 Mta, start-up in 2022 Growing sales GHG intensity • Mozambique: Rovuma, 15 Mta st 26 Mta in 2025 1 quartile − Capital efficient from scale of 85 TCF Area 4 resource 1 operated
Slide 38: Upstream Volumes Outlook
UPSTREAM VOLUMES OUTLOOK Focused on increasing value; flexible to adjust to market PRODUCTION • Strategy driven by improving portfolio competitiveness Koebd net 4,000 − Focusing on low cost-of-supply liquids and LNG investments 2 Volumes associated with − ~50% reduction of lower-value North American
Slide 39: Upstream Volumes Outlook
UPSTREAM VOLUMES OUTLOOK Focused on increasing value; flexible to adjust to market PRODUCTION AND OPERATING CASH FLOW • Strategy driven by improving portfolio competitiveness Indexed to 2021, % − Focusing on low cost-of-supply liquids and LNG investments 2 − ~50% reduction of lower-value North Ameri
Slide 40: Downstream & Chemical
DOWNSTREAM & CHEMICALDOWNSTREAM & CHEMICAL
Slide 41: Downstream Strategy Reconnect
DOWNSTREAM STRATEGY RECONNECT 1 #1 in synthetic lubricants and basestocks; industry-leading integration SYNTHETIC LUBRICANTS VOLUMES 1.5x INDUSTRY Strategy Indexed to 2010, % 300 • Grow earnings from highly profitable Lubricants ExxonMobil • Improve Fuels competitiveness and resiliency − Deliver ind
Slide 42: Chemical Strategy Reconnect
CHEMICAL STRATEGY RECONNECT Meet increasing global demand for high-value products through advantaged investments 1 PERFORMANCE PRODUCTS DELIVERED GROWTH AT >4x GDP Strategy Indexed to 2010, % 350 ExxonMobil • Grow environmentally sustainable, high-value performance performance products to meet incre
Slide 43: Leading Chemical Business
LEADING CHEMICAL BUSINESS Diversified and resilient portfolio delivers strong earnings growth An industry leader across the cycle #1 or #2 market position in >80% of Performance product development chemical product portfolio supports rapid sales growth 4 400% Polyethylene ExxonMobil Performance mark
Slide 44: Innovative Products Provide Customer Benefits
INNOVATIVE PRODUCTS PROVIDE CUSTOMER BENEFITS High-value products provide customer choices for lower emissions or improved efficiencies HIGH-VALUE PRODUCTS MEET EVOLVING CUSTOMER NEEDS Representative examples 1 PRODUCT / SECTOR POTENTIAL BENEFITS Plastic packaging 54% lower lifecycle GHG emissions i
Slide 45: Product Mix Delivers Increased Value
PRODUCT MIX DELIVERS INCREASED VALUE Proprietary technology enables product mix upgrade 1 DOWNSTREAM AND CHEMICAL PRODUCT MIX UPGRADE PLANS 2027 volume change, indexed to 2017 -50% 0% 50% • Grow Chemical performance product Performance products commodity ++ volume consistent with demand Chemical Com
Slide 46: Future Investments Deliver Robust Returns
FUTURE INVESTMENTS DELIVER ROBUST RETURNS Advantaged investments focus on margin improvement and high-value product growth FUTURE MAJOR DOWNSTREAM & CHEMICAL GROWTH PROJECTS EARNINGS FROM FUTURE MAJOR GROWTH PROJECTS 1 2 DELIVER ~30% RETURN DELIVER >$2 BILLION AT 10-YEAR LOW MARGINS Billion USD 5 Re
Slide 47: Delivering on Strategic Priorities
DELIVERING ON STRATEGIC PRIORITIES Earnings growth through integration, cost reductions, and project portfolio Leading 2020 Structural • World-class Downstream and Chemical businesses Chemical earnings efficiencies with leading market positions • Competitive cost structure supported by industry- ~$2
Slide 48: Financial Plan
FINANCIAL PLAN FINANCIAL PLAN
Slide 49: Reaffirming Capital Allocation Philosophy
REAFFIRMING CAPITAL ALLOCATION PHILOSOPHY Maintaining flexibility to respond as markets evolve • Long-term capital allocation priorities remain − Invest in advantaged projects to drive cash flow − Maintain balance sheet strength − Provide reliable dividend • Flexibility to efficiently respond to mar
Slide 50: Driving Structural Cost Efficiencies
DRIVING STRUCTURAL COST EFFICIENCIES Achieved ~$3 billion of structural reductions in 2020; $6 billion by 2023 CASH OPEX EXCLUDING ENERGY AND PRODUCTION TAXES Billion USD • Delivered on cost reduction objectives, outperforming revised plan 44 3 • Leveraged prior reorganizations to deliver structural
Slide 51: Maintaining Investment Optionality
MAINTAINING INVESTMENT OPTIONALITY Demonstrated ability to adjust capital spending and preserve value CAPEX 2021–2025 Billion USD • 2021-2025 capital program optimized to current $20 - $25 market outlook Guidance: $16 - $19 20 Flexible • Investment strategy prioritizes highest-return opportunities •
Slide 52: Capital Allocation Priorities
CAPITAL ALLOCATION PRIORITIES Leverage portfolio flexibility to sustain the dividend 1,2,3 2021 ESTIMATED SOURCES AND USES OF CASH Billion USD • Prioritizes Guyana, Brazil, Permian, and Chemical By Brent price, with performance products 10yr low Downstream Guidance: & Chemical margins $16 - $19 $55/
Slide 53: Cash Flow Growth
CASH FLOW GROWTH Investments drive cash flow generation through the cycle 1,2 ESTIMATED AVAILABLE CASH FROM OPERATIONS Billion USD • Cash flow growth driven by investment program Return to 10yr avg. and reduced cash operating expenses Downstream and 40 Chemical margins • 2021—2025 project start-ups
Slide 54: Capital Allocation Priorities: Excess Cash
CAPITAL ALLOCATION PRIORITIES Cumulative excess available cash generation of ~$30 billion through 2025 1,2,3 CUMULATIVE ESTIMATED SOURCES AND USES OF CASH (2021-2025) Billion USD • Investing in advantaged, low cost-of-supply Real Brent price projects drives strong, long-term free cash flow $55/bbl 2
Slide 55: Growing Earnings
GROWING EARNINGS Cost reductions and advantaged investments enhance earnings power across a range of prices / margins 1,2 EARNINGS GROWTH $55/bbl real Brent Billion USD and 10yr high • Delivering structural cash Opex reductions across Downstream and Chemical margins the corporation • Investing in hi
Slide 56: Closing
CLOSING CLOSING
Slide 57: Growing Long-Term Shareholder Value
GROWING LONG-TERM SHAREHOLDER VALUE Progressing actions to highgrade portfolio and improve earnings and cash flow • Committed to delivering sustainable shareholder value • Competitively advantaged assets and investments drive strong cash flow to sustain dividend, reduce debt, and invest in the futur
Slide 58: Supplement
SUPPLEMENTSUPPLEMENT
Slide 59: Society's Global Emissions from All Sources
SOCIETY’S GLOBAL EMISSIONS FROM ALL SOURCES Emissions need to reach net-zero by 2070 per the IPCC Lower 2°C Scenarios GLOBAL EMISSIONS BY SOURCE AND SECTOR 49 GT/yr CO e 2 • Human activities contribute to greenhouse gas All other (GHG) emissions Agriculture Landfills Forestry − Energy used to light
Slide 60: High-Return Investments: Permian Midland Basin
HIGH-RETURN INVESTMENTS PERMIAN Midland Basin 1 2 DAILY DRILLING LATERAL FEET FRAC STAGES PER DAY DRILLING AND COMPLETION COSTS >60% 60% Improvement 170% 170% 100% Improvement >30% Improvement 0% 70% 70% 2018 2019 2020 2018 2019 2020 2018 2019 2020 Data indexed to 2018. See Supplemental Information
Slide 61: Permian Midland Basin Year-on-Year Improvement
HIGH-RETURN INVESTMENTS PERMIAN Midland Basin Continued year-on-year improvement; positive early results from cube development 1 MIDLAND AVERAGE WELL OIL PRODUCTION RATES (365 DAYS) MIDLAND AVERAGE WELL CUMULATIVE OIL PRODUCTION Bbl/d Kbbl 700 180 2020 2019 2018 27 well cube 0 0 Months 0 6 12 ExxonM
Slide 62: Corpus Christi Chemical Complex
CORPUS CHRISTI CHEMICAL COMPLEX Achieving industry-leading cycle times at industry-low unit development costs CORPUS CHRISTI FURNACE MODULES DELIVERED IN 2020 • World’s first fully modularized chemical complex − 1.8 Mta steam cracker; largest under construction − World-scale polyethylene and ethylen
Slide 63: Chemical Sustainability
CHEMICAL SUSTAINABILITY Developing technology to help address plastic waste and improve the efficient use of resources Founding member. Alliance 1 Received ISCC+ certification for Performance Polymers focused on developing safe, circular polymers resulting from Developing products that help protect
Slide 64: Supplemental Information: Forward-Looking Statements
SUPPLEMENTAL INFORMATION IMPORTANT INFORMATION AND ASSUMPTIONS REGARDING CERTAIN FORWARD-LOOKING STATEMENTS. Forward-looking statements contained in this presentation regarding the potential for future earnings, cash flow, margins, ROCE, returns, rate of return, addressable markets, available cash f
Slide 65: Supplemental Information: Non-GAAP and Other Measures
SUPPLEMENTAL INFORMATION NON-GAAP AND OTHER MEASURES. With respect to historical periods, reconciliation information is provided in the Frequently Used Terms available on the Investor page of our website at www.exxonmobil.com under the heading News & Resources for certain terms used in this presenta
Slide 66: Definitions and Non-GAAP Reconciliations, Continued
SUPPLEMENTAL INFORMATION DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS, CONTINUED Lower 2°C scenarios. The Intergovernmental Panel on Climate Change (IPCC) published a Special Report on “Global Warming of 1.5°C” and identified 74 scenarios as “Lower 2ºC,” which are pathways limiting pea
Slide 67: Definitions and Non-GAAP Reconciliations, Continued
SUPPLEMENTAL INFORMATION DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS, CONTINUED Return on average capital employed (ROCE). ROCE is a performance measure ratio. From the perspective of the business segments, ROCE is annual business segment earnings divided by average business segment c
Slide 68: Supplemental Information: Other Information
SUPPLEMENTAL INFORMATION OTHER INFORMATION. All references to production rates, project capacity, resource size, and acreage are on a gross basis, unless otherwise noted. This presentation includes a number of third party scenarios such as the 74 Lower 2°C scenarios, made available through the IPCC
Slide 69: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 13 Slide 16 1) Total Addressable Market figures: ExxonMobil analysis of IPCC SR 1.5 scenario 1) National Petroleum Council report. Financial assumptions include 12% explorer data on Lower 2°C scenarios for CO2, H2, Biofuels, and Fuels. Volumes internal rate of return (
Slide 70: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 19 4) Global CCS Institute. Data updated as of April 2020 and based on cumulative 1) Global CO emissions: Global Carbon Budget 2020; Friedlingstein et al (2020); anthropogenic carbon dioxide capture volume. Anthropogenic CO , for the 2 2 including energy-related and ce
Slide 71: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 24 5) Money-forward basis. 1) Includes projects that bring on new volumes. Breakeven based on cost-of-supply 6) Corporate objective is to set pace of investment resulting in positive annual free to generate a minimum 10 percent return on a money-forward basis. cash, in
Slide 72: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 42 Slide 37 1) GDP - ExxonMobil’s 2019 Outlook for Energy; commodity chemicals 1) Based on 2018 greenhouse gas intensity (tonnes of CO -equivalent per 100 2 demand - IHS Markit World Analysis for Polyethylene, Polypropylene, and tonnes of LNG produced) of the PNG lique
Slide 73: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 45 Slide 44 1) Product benefits: 1) Shows 2027 expected volume indexed to 2017. Product mix upgrade plans • Plastic packaging - per April 2018 report of Franklin Associates; US; Max include Downstream and Chemical announced/completed conversions, all Decomp.; Figure 4-
Slide 74: Supplemental Information: Footnotes
SUPPLEMENTAL INFORMATION Slide 52 Slide 55 1) See definition of Available cash from operations on page 65. 1) 10-year high and low Downstream and Chemical margins refer to annual highs 2) 2021 Available cash from operations assumes Downstream and Chemical and lows from 2010—2019. 10-year average Dow
Slide 75: Frequently Used Terms
FREQUENTLY USED TERMS Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other terms. These definitions are provided to facilitate understanding of the terms and their calculation. In the case of financial measures that we believe constitute “
Slide 76: Frequently Used Terms, continued
Frequently Used Terms, continued Volume effects • Entitlements – net interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining factors. These factors consist of net interest changes specified in Production Sharing Contracts (PSCs) which
Slide 77: Cash Flow from Operations and Asset Sales
Frequently Used Terms, continued CASH FLOW FROM OPERATIONS AND ASSET SALES 2020 2019 2018 (millions of dollars) Net cash provided by operating activities 14,668 29,716 36,014 Proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments 999 3,692
Slide 78: Operating Costs and Cash Operating Expenses
Frequently Used Terms, continued OPERATING COSTS AND CASH OPERATING EXPENSES 2020 2019 2018 (millions of dollars) Reconciliation of operating costs From ExxonMobil’s Consolidated statement of income Total costs and other deductions 210,385 244,882 259,259 Less: Crude oil and product purchases 94,007
Slide 79: Free Cash Flow
Frequently Used Terms, continued FREE CASH FLOW 2020 2019 2018 (millions of dollars) Net cash provided by operating activities 14,668 29,716 36,014 Additions to property, plant and equipment (17,282) (24,361) (19,574) Proceeds associated with sales of subsidiaries, property, plant and equipment, and
Slide 80: Return on Average Capital Employed (ROCE)
Frequently Used Terms, continued RETURN ON AVERAGE CAPITAL EMPLOYED (ROCE) 2020 2019 2018 (millions of dollars) Net income attributable to ExxonMobil (22,440) 14,340 20,840 Financing costs (after tax) Gross third-party debt (1,272) (1,075) (912) ExxonMobil share of equity companies (182) (207) (192)
Slide 81: Average Capital Employed by Business
Frequently Used Terms, continued 1 AVERAGE CAPITAL EMPLOYED BY BUSINESS 2020 2019 2018 (millions of dollars) Upstream United States 65,780 72,152 69,981 Non-U.S. 107,506 107,271 107,893 Total 173,286 179,423 177,874 Downstream United States 11,472 9,515 8,725 Non-U.S. 18,682 18,518 17,015 Total 30,1
Slide 82: Functional Earnings
Frequently Used Terms, continued 1 FUNCTIONAL EARNINGS (millions of dollars) 2020 quarters Earnings (Loss) (U.S. GAAP) First Second Third Fourth 2020 2019 2018 Upstream United States (704) (1,197) (681) (16,803) (19,385) 536 1,739 Non-U.S. 1,240 (454) 298 (1,729) (645) 13,906 12,340 Total 536 (1,651
Slide 83: Total Taxes Including Sales-Based Taxes
Frequently Used Terms, continued TOTAL TAXES INCLUDING SALES-BASED TAXES 2020 2019 2018 (millions of dollars) Income taxes (5,632) 5,282 9,532 Total other taxes and duties 28,425 33,186 35,230 Total taxes 22,793 38,468 44,762 Sales-based taxes 16,281 20,679 21,750 Total taxes including sales-based t