2011 2011Analyst AnalystMeeting Meeting March 9, 2011 New York Stock Exchange
Agenda 9 AM Welcome David Rosenthal Vice President, Investor Relations Business Overview Rex Tillerson Chairman and CEO Financial and Operating Results Competitive Advantages Global Exploration & Mark Albers Upstream Projects…
Business Overview Rex Tillerson Chairman and CEO
Business Environment ExxonMobil is well-positioned for the challenges and opportunities in the global business environment. Stabilizing global economy with modest growth in the U.S. and Europe Stronger economic growth in developing…
Global Energy Demand to 2030 Energy demand is expected to grow about 35 percent by 2030 led by economic progress in developing nations even with large efficiency gains. Energy Demand Quadrillion BTUs Oil, gas, and coal continue to 300…
Regional Gas Supply and Demand Strong growth in global gas demand led by Asia Pacific, met with expanding supplies of LNG and unconventional gas. United States Europe Asia Pacific BCFD BCFD BCFD 120 120 125 100 100 100 80 80 LNG…
Global Downstream Demand Long-term transportation energy demand likely to increase almost 40 percent between 2005 and 2030. Transportation Energy Demand MOEBD Long-term growth driven by 60 doubling of demand in developing countries 50…
Global Chemical Demand Global demand for commodity chemicals poised to resume growth. Commodities Demand and Global GDP* Year-on-Year Percent Change Global demand growth above GDP 12 Chemical Commodity Demand Global GDP 9…
The Energy Challenge The energy industry must meet the worlds growing energy needs safely while minimizing the impact on the environment. The scale of the challenge is enormous and growing Requires an integrated set of solutions and…
Industry Risks The energy industry faces multiple uncertainties and risks. Well-developed processes, procedures, and people are required to manage risks. Safety & Security Climate Health & Change Environment Risk Management…
Risk Management Approach ExxonMobil has established common worldwide expectations for addressing risks inherent in our business. Capable, committed workforce with clear accountability Well-developed and clearly-defined policies and…
Multiple Risks Multiple Frameworks ExxonMobil employs multiple frameworks to lower risk profiles across the business, forming the foundation for strong financial and operating results. Operations Integrity Management System (OIMS)…
Financial and Operating Results Rex Tillerson Chairman and CEO
2010 Financial and Operating Results ExxonMobil delivered strong results across all key measures and all business lines. Industry-Leading Safety Performance Superior Financial and Operating Results Unmatched Shareholder…
Industry-Leading Safety Performance Safety ExxonMobils vision of Nobody Gets Hurt is internalized in the Companys culture, positively influencing the behavior of each employee and contractor. Lost Time Incident Rate Incidents per 200K…
Industry-Leading Safety Performance Environmental Performance ExxonMobil is committed to reducing the impact on the environment while expanding energy supplies needed to fuel economic growth. Hydrocarbon Flaring from Upstream Oil and…
Superior Financial and Operating Results Earnings ExxonMobil earned 30.5 billion in 2010 supported by project start-ups and strong operational performance across all business lines. Earnings Excluding Special Items B 57 percent…
Superior Financial and Operating Results Upstream Earnings per Barrel High-quality Upstream portfolio continues to deliver strong earnings per barrel. Earnings per Barrel* per OEB '06 -10, average Profitability ahead of competition…
Superior Financial and Operating Results Upstream Volumes Growth Upstream volumes grew 13 percent in 2010 driven by project start-ups, the addition of XTO, and strong operational performance. 2010 Volume Growth Percent Largest…
Superior Financial and Operating Results Reserves Replacement ExxonMobil consistently replaces more reserves than it produces, at a lower unit cost than competitors. Proved Reserves Replacement Percent* vs. Costs** (05 09 average)…
Superior Financial and Operating Results Return on Capital Employed ROCE continues to lead industry. Return on Average Capital Employed* Percent ROCE of 22 percent in 2010 30 '06 -10, average 2010 25 Consistent execution of 20…
Superior Financial and Operating Results Asset Impairments ExxonMobils industry-leading returns are supported by superior investment discipline and the efficient use of capital. Asset Impairments (2005 2009)* B Industry 45 Asset…
Superior Financial and Operating Results 2010 Cash Flow Superior cash generation provides ability to fund profitable projects, return cash to shareholders, and maintain financial flexibility. 2010 Cash Flow B Cash flow up over 70…
Unmatched Shareholder Distributions Dividends ExxonMobil delivers reliable and growing dividends. In 2010, 8.5 billion was distributed to shareholders. Dividend Growth since 1983* per share Almost 40B distributed to shareholders over…
Unmatched Shareholder Distributions Share Purchases In 2010, ExxonMobil distributed 11.2 billion to shareholders through share purchases. Cumulative Purchases to Reduce Shares Outstanding 114B distributed over the last five B years…
Unmatched Shareholder Distributions Annual Distribution Yield ExxonMobil shareholder distributions are unmatched in the industry. Average Annual Distribution Yield* Dividends & Share Repurchases Average total distribution yield of…
Disciplined Investments Focused on Long-Term Value Capex Continued selective investments to enhance long-term value of the asset base. Capex by Business Line B Invested over 126B 35 during the past five years Upstream Downstream 28…
Disciplined Investments Focused on Long-Term Value Portfolio Management Active asset management across the business cycle to capture shareholder value. Cumulative Cash Flow from Asset Sales since Exxon and Mobil Merger Ongoing…
2010 Financial and Operating Results ExxonMobil delivered strong results across all key measures and all business lines. Industry-Leading Safety Performance Superior Financial and Operating Results Unmatched Shareholder…
Competitive Advantages Rex Tillerson Chairman and CEO
Upstream Balanced Portfolio Quality 2010 Resource Base ExxonMobils resource base of over 84 billion oil-equivalent barrels is diverse by resource type, geography, and oil / gas mix. Resource Base BOEB BOEB BOEB 90 Type 90 Geography 90…
Upstream Balanced Portfolio Quality Global Gas Position A robust gas portfolio of quality operations and advantaged projects spans all resource types, major markets, and commercial structures. Gas Resource Base Markets BOEB BCFD CBM…
Upstream Balanced Portfolio Quality 2010 Production and Contract Mix A wide range of gas contracts provides ExxonMobil with the flexibility to maximize the value of a strong global gas position. 2010 Production by Contract MOEBD…
Upstream Balanced Portfolio Quality New Opportunity Growth A diverse global portfolio of high-quality resource opportunities. Beaufort West Norway Horn River Greenland Athabasca Germany Cardium Ireland Poland Romania Russia…
Downstream Balanced Portfolio Quality Scale Advantage ExxonMobil is the largest global refiner and manufacturer of lube basestocks as well as a leading marketer of petroleum products. Average Refinery Size* KBD Refineries 60 percent…
Downstream Balanced Portfolio Quality World-class Brands Global reach, trusted brands, and high-quality products position ExxonMobil as a reliable supplier to a wide range of customers. Global Fuels Marketing Sales Diverse business…
Downstream Balanced Portfolio Quality Industry-leading Sales Growth Continued growth in high-value lubes, well above industry. Synthetic Lubricants Sales Growth Percent Change since 2005 Market leader in high-value 60 synthetic…
Chemical Balanced Portfolio Quality Product Strength and Diversity Unique Chemical portfolio captures benefits of scale in commodities while maximizing value from specialties. Earnings B Commodities capture upside Specialty earnings…
Chemical Balanced Portfolio Quality Asia Pacific Growth Investments in increasing capacity to meet future demand growth in key Asia Pacific Markets. Asia Pacific / Middle East Capacity Ethylene & Paraxylene Asia Pacific 60 percent of…
Upstream Disciplined Investing Major Project Inventory Extensive Upstream portfolio of 130+ major projects supports selective investment decisions. Major Project Distribution by Project Type Percent, resource Developing 26 net BOEB,…
Upstream Disciplined Investing Near-Term Project Start-Ups Eleven major project start-ups are planned between 2011 and 2013. Courtesy of Total Courtesy of Total Deepwater Deepwater Deepwater Conventional Etim / Asasa Pazflor…
Upstream Disciplined Investing Major Project Production Outlook Significant new long-plateau production from major projects supports long- term volumes. Major Project Production Outlook MOEBD, net Nearly 1.4 MOEBD added by 2016 1.5…
Downstream Disciplined Investing Lower-Sulfur Motor Fuels ExxonMobils global investments continue to expand production of lower-sulfur motor fuels. New ultra-low sulfur diesel (ULSD) facilities in Baytown, TX; Baton Rouge, LA; and…
Downstream Disciplined Investing Efficient Use of Capital ExxonMobil is the most capital efficient among competitors and actively manages capital employed across the business cycle. Downstream Average Capital Employed B Disciplined…
Chemical Disciplined Investing Singapore Expansion Major expansion in Singapore to meet demand growth in Asia Pacific will add shareholder value, building on key competitive advantages. 2.5 million metric tons of new capacity…
Chemical Disciplined Investing Efficient Use of Capital ExxonMobil Chemical is the most capital efficient of the large, international chemical companies. Chemical Average Capital Employed B Disciplined investment selection ExxonMobil…
Upstream High-Impact Technologies Research and Development ExxonMobil delivers advantaged technologies across the business while progressing significant breakthrough research. Exploration Development Production Imaging Drilling…
Upstream High-Impact Technologies Upper Zakum Employing advantaged technologies to progress resource development with partners. Abu Dhabi Technology Center Leading Reservoir Simulator Building artificial islands with co- located…
Downstream High-Impact Technologies Legacy of Technology Leadership Discovering, developing, and deploying proprietary technologies provide near-term and longer-term competitive advantages to our businesses. Leading-edge technologies…
Downstream High-Impact Technologies Next Generation Technology ExxonMobil and Synthetic Genomics are researching large-scale production and commercialization of algae-based biofuels. Numerous potential benefits of biofuels production…
Chemical High-Impact Technologies Advantaged Technology Development and deployment of industry-leading chemical technology provide a competitive advantage. Advantaged feedstock High level of feed flexibility Lower-cost…
Chemical High-Impact Technologies Feedstock Advantage ExxonMobil Chemical proprietary technology enables processing both heavy and light feedstocks for competitive advantage. Worldwide Feedstock* Percent Technology critical in…
Upstream Operational Excellence Reliability and Cost Management Global best practice deployment delivers superior reliability and life cycle cost performance. Standardize Operate and Maintain Achieving superior reliability Operated…
Upstream Operational Excellence Cost Management ExxonMobil effectively mitigated cost growth through the business cycle, as a result of superior cost management. Total Costs per OEB* /OEB Disciplined and consistent approach to cost…
Upstream Operational Excellence Qatar Liquefied Natural Gas Superior reliability performance combined with unmatched project execution and life cycle cost performance generate maximum value. Delivering 62 million metric tons per year…
Downstream Operational Excellence Operating Cost Efficiencies ExxonMobil continues to increase competitive advantage by focusing on operations reliability, energy efficiencies, and integration. Refining Energy Intensity* Indexed…
Downstream Operational Excellence Improving Productivity A continuous focus on optimizing productivity delivers a long-term competitive advantage. Lubes & Specialties Operating Efficiencies Indexed On-going consolidation activities 0…
Chemical Operational Excellence Operating Efficiencies A relentless focus on operating efficiencies creates a competitive advantage and steady performance improvement over time. Global Steam Cracker Energy Intensity* Indexed Globally…
Chemical Operational Excellence Business Simplification Simplification delivers cost savings and operational efficiencies. Marketing & Supply Chain Simplification Indexed Percent Change Focus on value capture 0 Eliminate unnecessary…
Global Integration Value of the Integrated Model ExxonMobils effective execution of a complex integrated business model creates significant value for the shareholder. Maximize resource upgrade across the value chain Joint feedstock…
Global Integration Integrated Supply Chain ExxonMobil maximizes value across the entire supply chain, from the wellhead to the customer. The level of integration is unmatched. Power Plant LNG Plant Gas Processing Crude Natural…
Downstream/Chemical Global Integration Integrated Manufacturing Global scale and integration are structural advantages that are difficult for competitors to replicate. Integration with Chemicals/Lubes* Percent Higher-value products 75…
Downstream/Chemical Global Integration Industry-leading Returns ExxonMobil has unequaled performance across the Downstream and Chemical platforms. Return on Average Capital Employed* 2000 - 2010 Proven business strategies Percent…
Global Exploration Mark Albers Senior Vice President
New Opportunity Growth A diverse global portfolio of high-quality resource opportunities. Beaufort West Norway Horn River Greenland Athabasca Germany Cardium Ireland Poland Romania Russia Haynesville / Marcellus Bossier Turkey…
New Opportunity Growth A diverse global portfolio of high-quality resource opportunities, representing a balance between oil and gas. Beaufort West Norway Horn River Greenland Athabasca Germany Cardium Ireland Poland Romania…
Established Exploration U.S. Gulf of Mexico Active exploration programs in established basins such as the U.S. Gulf of Mexico. KC874 KC875 KC876 N Key Lucius EM 50% (Operator) Plugged oil and gas well 2.1 million net acres with…
New Basin Tests Black Sea ExxonMobil maintains an active exploration program which includes select new play tests in basins with significant upside potential. ExxonMobil Acreage Leading acreage position in the Russia Black Sea with…
Upstream Projects Mark Albers Senior Vice President
Deepwater Blocks 15 and 17, Angola Delivering significant value through opportunities such as Kizomba Satellites Phase 1 in West Africa. Expected to produce an additional 100 kbd of oil in Angola Innovative loop development…
Arctic Sakhalin-1, Eastern Russia Disciplined project management processes continue to deliver industry- leading project execution performance. Odoptu project started-up on time and producing 50 kbd Developed with world record…
Conventional Hebron, Eastern Canada Delivering significant value through conventional development opportunities such as Hebron. Awarded Hebron topsides and gravity based structure front-end engineering and design contracts…
Oil Sands Kearl, Canada High-quality oil sands resource coupled with ExxonMobil technology and execution capability provide long-life earnings contribution. Kearl Comparison 400 KOEBD, net 300 Long-term plateau production GOM…
Conventional West Qurna (Phase I), Iraq ExxonMobil is advancing the redevelopment of this world-class field to maximize production capability. Signed 25-year agreement Iraq Amended agreement to include discovered but undeveloped…
Liquefied Natural Gas - Papua New Guinea PNG LNG project utilizes global LNG experience, strengthening ExxonMobils presence in the attractive Asia Pacific gas market. High-quality 9 TCF gross resource Two-train 6.6 MTA LNG plant…
Exploration and Development Performance ExxonMobil consistently delivers competitive reserves replacement with the most efficient use of exploration and development capital. Exploration Expenditures vs. Organic Reserve Exploration &…
Unconventional Portfolio Andy Swiger Senior Vice President
Unconventional Resource Base ExxonMobils global unconventional resource base of almost 35 billion oil- equivalent barrels is growing and includes several new strategic additions. Unconventional Resource Base BOEB Almost 90 percent growth…
Unconventional North America ExxonMobils North American unconventional resource base is diverse by location and play type. Horn River Shale Gas 340K Athabasca 745K Shale Oil (incl. liquids rich) Cardium 235K Tight Gas Bakken…
Unconventional Gas Plays ExxonMobil holds a leadership position in multiple unconventional plays such as the Haynesville and Fayetteville shales. Mcfd Rigs 250 Haynesville Shale 30 200 Gross Op Haynesville: increased production…
Operational Excellence Best practices in unconventional gas build value through higher recoveries and increasing operational efficiency. Drilled 8 of 10 largest Cumulative Drilling Days, Spud to Rig Release Production Wells in Barnett…
Unconventional Liquids Rich Plays Unconventional liquids-rich plays such as the Eagle Ford and Bakken provide upside value potential. Strong acreage position Drilling in Bakken/Three Forks with potential to ramp-up Hold 410,000…
XTO Integration XTOs experience and capabilities are further enhanced by leveraging ExxonMobils global functional organization. Research Exploration Drilling Attrition consistent with historic levels Technology and expertise are…
Global Growth Opportunities ExxonMobil holds a leadership position in emerging global unconventional plays. Canada Diverse global portfolio Germany Poland China Access to greater than 10 million net U.S. acres globally Colombia…
Value Creation Unconventional Gas and Oil Unconventional gas and oil production has the potential to unlock significant future value with strong volume growth. U.S. Unconventional Production (2010-2020) MOEBD 100 Tcfe global resource…
Value Creation - Heavy Oil and Oil Sands Extensive inventory of long-life projects provides growth in long-plateau volumes. Heavy Oil / Oil Sands Production (2010-2020) MOEBD 18 BOEB heavy oil / oil sands 0.6 resource base Over 500…
Unlocking Greater Value Superior value creation relies on high-quality resources, growth markets, enabling technologies, and growing organizational capability. Deepwater Leading Deepwater Global Oil Deepwater 1995 2000 2005 Deepwater…
Summary Rex Tillerson Chairman and CEO
Share Performance ExxonMobils performance exceeds competitor average and S&P 500. Shareholder Returns Value of 1,000 Invested (as of YE 2010) Financial results and stock market K returns best viewed over long-term 12 ExxonMobil…
Increasing Ownership - Production Share purchases have enhanced per share ownership of oil and gas production. Annualized production growth per share of 6.3 percent. Production Growth per Share since 2006* Indexed; 2006 = 100 Increasing…
Increasing Ownership - Reserves Share purchases have enhanced per share ownership of oil and gas reserves. Reserves per share increased 32 percent since 2006. Reserves Growth per Share since 2006* Indexed; 2006 = 100 Expanding reserve…
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