Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Q2 2023 Earnings Presentation
29 slides from Exxon Mobil's earnings presentation, Jul 28, 2023
Slide 1: Second-quarter 2023 earnings: Executing our strategy is delivering strong results
2023 Second-quarter Executing our strategy is earnings delivering strong results 07.28.23
Slide 2: Important information for investors and stockholders
Important information for investors and stockholders IMPORTANT INFORMATION ABOUT THE TRANSACTION AND WHERE TO FIND IT In connection with the proposed transaction between Exxon Mobil Corporation (“ExxonMobil”) and Denbury Inc. (“Denbury”), ExxonMobil and Denbury will file relevant materials with the
Slide 3: Cautionary statement
Cautionary statement FORWARD-LOOKING STATEMENTS. Statements of future events, conditions, expectations, plans, or ambitions in this presentation or the subsequent discussion period are forward- looking statements. Similarly, discussions of future carbon capture, transportation and storage, including
Slide 4: Growing shareholder value through structural earnings improvements
Growing shareholder value through structural earnings improvements Leading Performance | Essential Partner | Advantaged Portfolio | Innovative Solutions | Meaningful Development • Structural improvements drive earnings of $8 billion - Reported earnings nearly doubled versus 2Q18, a comparable commod
Slide 5: Denbury transaction synergies drive strong returns
Denbury transaction synergies drive strong returns • Accelerates and expands profitable U.S. Gulf Coast growth opportunities at lower cost • Combination creates a compelling customer decarbonization proposition • Enhanced oil recovery (EOR) provides near- term optionality for CO2 utilization Emissio
Slide 6: Permian: unique development approach driving industry-leading efficiencies
Permian: unique development approach driving industry-leading efficiencies • Maximizing value through development of advantaged, high-quality, contiguous acreage position • Leveraging scale, technology, and integration to deliver leading capital efficiency and cost performance • Driving higher value
Slide 7: Permian: unique development approach delivering bottom-line value
Permian: unique development approach delivering bottom-line value Longest Leading drilling Maximizing resource Delivering industry- laterals efficiency recovery leading value Cumulative wells Days on well Well performance Net Present Value2 20 (>17.5k ft.)1 50 (10k ft. lateral equivalent) 1 35 (OEB/
Slide 8: Integrated portfolio resilient across price cycles
Integrated portfolio resilient across price cycles Industry prices / margins 10-year annual range1 • Crude prices essentially flat despite ongoing economic concerns • Natural gas prices are back inside 10-year range, reflecting continued high inventory levels and lower demand • Refining margins in t
Slide 9: Integrated portfolio resilient across price cycles
Integrated portfolio resilient across price cycles Industry prices / margins 10-year annual range1 • Crude prices essentially flat despite ongoing economic concerns • Natural gas prices are back inside 10-year range, reflecting continued high inventory levels and lower demand • Refining margins in t
Slide 10: Executing our strategy is delivering strong results
Executing our strategy is delivering strong results Earnings Structural cost savings Year-to-date production $7.9 B $8.3 B vs. 2019; on track to deliver 3.7 Moebd consistent with full-year guidance $9 billion by year-end Cash flow from operations Year-to-date capex Shareholder distributions $9.4 B $
Slide 11: Structural earnings improvements supporting continued strong performance
Structural earnings improvements supporting continued strong performance U/S EP CP SP C&F TOTAL 1Q23 GAAP Earnings / (Loss) $6.5 $4.2 $0.4 $0.8 ($0.4) $11.4 Additional European taxes on energy sector (0.2) (0.0) - - - (0.2) 1Q23 Earnings / (Loss) ex. identified items (non-GAAP) $6.6 $4.2 $0.4 $0.8 (
Slide 12: Upstream: structural earnings improvements drive another strong quarter
Upstream: structural earnings improvements drive another strong quarter Upstream Contributing factors to change in earnings • Reported earnings >50% higher versus 2Q18 driven by Million USD growth from advantaged projects, improving mix, and $ 6,615 structural cost reductions (2,060) • Lower natural
Slide 13: Upstream: record production from advantaged projects
Upstream: record production from advantaged projects Upstream Contributing factors to change in volumes • >20% production growth in Permian and Guyana Koebd, net versus 2Q22 3,732 - Offset by impacts from divestments, the Sakhalin-1 20 3,608 expropriation, and government-mandated (150) 90 curtailmen
Slide 14: Energy Products: strong reliability and Beaumont start-up
Energy Products: strong reliability and Beaumont start-up partially offsetting lower industry margins Energy Products Contributing factors to change in earnings • Reported earnings 5x higher versus 2Q18 primarily driven Million USD by strategic projects and structural cost reductions $ 4,213 • Refin
Slide 15: Chemical Products: advantaged footprint and structural improvements
Chemical Products: advantaged footprint and structural improvements driving above-market results Chemical Products Contributing factors to change in earnings • Reported earnings nearly match 2Q18, when industry Million USD margins were twice as high, driven by strategic projects, mix improvements, a
Slide 16: Specialty Products: continuing to contribute solid earnings
Specialty Products: continuing to contribute solid earnings Specialty Products Contributing factors to change in earnings • Reported earnings more than double 2Q18 driven largely Million USD by cost reductions, strategic project, and revenue management $ 774 (110) 80 $ 671 • Margin declined versus 1
Slide 17: Strong results driving capital returns
Strong results driving capital returns Cash flow Billion USD • Robust earnings drove free cash flow of $5.0 billion • Reduction in cash balance due to working capital (5.6) 1.3 0.1 impact of $3.6 billion, mainly driven by seasonal cash 9.4 tax payments $ 32.7 (8.0) $ 29.6 (0.2) • Debt-to-capital at
Slide 18: 3Q23 outlook
3Q23 outlook • Higher volumes on lower scheduled Upstream maintenance • First full quarter without Billings refinery Energy Products • Lower scheduled maintenance Product Solutions Chemical Products Specialty Products • Corporate and financing expenses expected to Corporate be $400-$500 million 18
Slide 19: Key takeaways: executing our strategy is delivering strong results
Key takeaways: executing our strategy is delivering strong results • Nearly doubled reported earnings versus 2Q18, a comparable price environment1 • Ongoing structural earnings improvements - Baytown Performance Chemicals progressing phased start-up and product qualification in 3Q23 - Payara, our th
Slide 20: Upcoming events: Product Solutions Spotlight webcast
Upcoming events: Product Solutions Spotlight webcast Wednesday, September 20th, 1 p.m. Central Time Q&A 07.28.23
Slide 21: Outlook for third quarter of 2023
Outlook for third quarter of 2023 Upstream scheduled maintenance earnings impact1 Energy Products scheduled maintenance earnings impact3 Million USD Million USD 600 900 ~470 ~390 370 ~630 400 600 ~410 ~410 340 200 ~160 300 170 260 0 0 2022 quarterly 1Q23 2Q23 3Q23 est. 2022 quarterly 1Q23 2Q23 3Q23
Slide 22: Upstream: record production from advantaged projects
Upstream: record production from advantaged projects Upstream Contributing factors to change in volumes • Advantaged projects delivered strong volume Koebd, net contribution 3,831 - Record Permian production of ~620 Koebd (30) - Record Guyana gross production of 380 Kbd (40) (90) 0 (60) 3,608 • Lowe
Slide 23: Supplemental information
Supplemental information ExxonMobil reported emissions, including reductions and avoidance performance data, are based on a combination of measured and estimated data. Calculations are based on industry standards and best practices, including guidance from the American Petroleum Institute (API) and
Slide 24: Supplemental information
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Capital and exploration expenditures (Capex). Represents the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Inc
Slide 25: Supplemental information
Supplemental information DEFINITIONS AND NON-GAAP FINANCIAL MEASURE RECONCILIATIONS Operating costs (Opex). Operating costs are the costs during the period to produce, manufacture, and otherwise prepare the company’s products for sale – including energy, staffing, and maintenance costs. They exclude
Slide 26: Supplemental information
Supplemental information CALCULATION OF STRUCTURAL COST SAVINGS 2019 2022 YTD 2Q22 YTD 2Q23 Components of operating costs From ExxonMobil’s Consolidated statement of income (U.S. GAAP) Production and manufacturing expenses 36.8 42.6 20.9 18.3 Selling, general and administrative expenses 11.4 10.1 4.
Slide 27: Supplemental information
Supplemental information CASH FLOW FROM OPERATIONS EXCLUDING WORKING CAPITAL 2Q23 Net cash provided by operating activities (U.S. GAAP) 9,383 Less: changes in operational working capital, excluding cash and debt 3,583 Cash flow from operations excluding working capital (Non-GAAP) 12,966 Cash flow fr
Slide 28: Supplemental information
Supplemental information FREE CASH FLOW 2Q23 Net cash provided by operating activities (U.S. GAAP) 9,383 Additions to property, plant and equipment (5,359) Proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments 1,287 Additional investments
Slide 29: Supplemental information
Supplemental information Slide 7 Slide 21 1. Permian industry peer group includes Bayswater Exploration and Production, ConocoPhillips, 1. Estimate based on July prices. Chevron, Devon Energy, Diamondback Energy, EOG Resources, Hibernia Resources III, 2. Estimate based on operating expenses related