2012 Analyst Meeting March 8, 2012 New York Stock Exchange
Agenda 9 AM Welcome David Rosenthal, Vice President, Investor Relations Business Overview Financial & Operating Results Rex Tillerson, Chairman and CEO Competitive Advantages BREAK Unlocking Greater Value in the Mark Albers,…
Business Overview Rex Tillerson Chairman and CEO
Business Environment Global environment offers a broad mix of challenges and opportunities Near-term slowdown in global recovery with rising economic risks Developing economies show signs of slowing but still outpace OECD economies…
Energy Demand to 2040 Global energy demand likely to grow approximately 30% by 2040 Energy Demand Quadrillion BTUs Pace of demand growth moderated 300 2010 by efficiency gains across the world 2040 Annual Growth Rate to 2040 0.7%…
Developing Economies Lead Growth Asia Pacific demand growth accounts for nearly 60% of global increase Energy Demand: OECD Countries* Non-OECD Countries Quadrillion BTUs 500 500 400 400 Other 300 300 Coal 200 200 Gas 100 100…
Liquids and Gas Supplies Expand and Diversify Technology continues to expand economic supplies Liquids Natural Gas MOEBD GCFD 120 700 Biofuels 100 600 Unconventional Natural Gas Liquids 500 80 Deepwater Unconventional 400 60 300…
Global Downstream Demand Transportation energy demand increases nearly 45% percent by 2040 Transportation Energy Demand MOEBD Developing countries driving 75 growth, especially Asia Pacific OECD demand is flat 50 Non-OECD Countries…
Transportation Product Mix Heavy duty transportation leads demand growth Petroleum Product Demand* MOEBD Significant shift in product mix 50 Diesel growing in all regions, driven by economic activity Diesel 25 Gasoline flat to…
Global Lubricants Demand Demand expected to be nearly 20 percent higher in 2020 versus 2000 Lubricants Demand* MB per Year Demand growth of 1 percent per 300 year, driven by Asia Pacific Global synthetics demand 200 growing 6 percent…
Global Chemical Demand Chemical demand growth driven by Asia Pacific Demand and Global GDP* Year-on-Year Percent Change Demand growth above GDP as 9 standards of living improve Demand Growth Global GDP 6 Two-thirds of growth in Asia…
The Energy Challenge Meeting the worlds growing energy needs safely and responsibly Requires broad-based economic solutions Demands a commitment to innovation and technology Calls for unprecedented levels of investment and diversity…
Risk Management Risk management is fundamental to our business Well-developed and clearly-defined policies and procedures Management accountability High standards of design Employee and contractor training Rigorously applied…
Operations Integrity Management System Disciplined framework for the management of risk Common global expectations Integrated into daily operations - its how we operate Provides framework to meet or exceed regulations Ongoing…
Financial and Operating Results Rex Tillerson Chairman and CEO
2011 Financial and Operating Results Strong results across all key measures and business lines Relentless Focus on Operational Excellence Strong Financial and Operating Results Disciplined Investments Focused on Long-Term Value…
Relentless Focus on Operational Excellence Safety Safety performance remains strong in industry Lost Time Incident Rate Incidents per 200K hours Our vision: Nobody Gets Hurt 0.4 Employee Contractor Focus on operational excellence…
Relentless Focus on Operational Excellence Environmental Performance Committed to reducing environmental impact Hydrocarbon Flaring from Upstream Oil & Gas Production Strong environmental management Million Metric Tons 8 Improving…
Strong Financial and Operating Results Earnings Earnings of 41B in 2011, an increase of 35 percent over 2010 Earnings Excluding Special Items B Strong performance across all 50 Upstream business lines Downstream Chemical 40 Total…
Strong Financial and Operating Results Upstream Earnings per Barrel Upstream portfolio continues to deliver strong earnings per barrel Earnings per Barrel per OEB Balanced portfolio well-positioned throughout business cycle 25 20…
Strong Financial and Operating Results Upstream Volumes Growth Project ramp-ups and strong unconventional performance drive growth 2011 Volume Growth Percent 1 percent growth from 2010 2 0 Supported by risk management XOM and…
Strong Financial and Operating Results Reserves Replacement Consistently replaced more reserves than produced Proved Reserves Replacement* Percent Replaced 116 percent of 2011 250 production 200 Additions exceeded production for…
Strong Financial and Operating Results Return on Capital Employed ROCE leadership supported by consistent business model Return on Average Capital Employed* Percent ROCE of 24 percent in 2011 30 25 2011 07 11, average Investments…
Strong Financial and Operating Results Capital Management Active asset divestments enhance shareholder value Cumulative Proceeds Associated with Asset Sales; 2007 2011 Ongoing portfolio management B fundamental to business model 30…
Strong Financial and Operating Results 2011 Cash Flow Superior cash generation provides investment and distribution flexibility 2011 Cash Flow B Strong cash flow, up nearly 80 66 33 30 percent from 2010 60 Year-end cash balance over…
Strong Financial and Operating Results Free Cash Flow Generation Cash generation unmatched among peers Total Free Cash Flow (07 11)* B Total free cash flow generation of 150 146B since beginning of 2007 Higher than competitors…
Disciplined Investments Focused on Long-Term Value Capex Maintained focus on selective investments to deliver superior returns Capex by Business Line B Invested 143B during the past five 40 Upstream years Downstream Chemical /…
Unmatched Shareholder Distributions Distribution Yield Industry-leading shareholder distributions Total Distribution Yield (07 11)* Dividends & Share Repurchases Total distribution yield of 34 percent Percent since beginning of 2007…
Unmatched Shareholder Distributions Dividends Reliable and growing dividends; 9 billion distributed in 2011 Dividend Growth since 1983* per share Over 40B distributed to shareholders over past five years 2.50 XOM 2.00 S&P 500…
Unmatched Shareholder Distributions Share Reductions Share purchases efficiently return cash to shareholders Shares Outstanding Millions of Shares 20B in shares purchases in 2011 7,000 6,000 Over 30 percent reduction in shares…
Unmatched Shareholder Distributions Increasing Ownership Enhanced per share interest in ExxonMobil reserves and production Reserves Growth per Share since 2007* ** Production Growth per Share since 2007* Indexed; 2007 = 100 Indexed;…
2011 Financial and Operating Results Strong results across all key measures and business lines Relentless Focus on Operational Excellence Strong Financial and Operating Results Disciplined Investments Focused on Long-Term Value…
Competitive Advantages Rex Tillerson Chairman and CEO
Upstream Balanced Portfolio 2011 Resource Base Diverse resource base of over 87 billion oil-equivalent barrels Resource Base (BOEB) Type Geography Liquids / Gas 90 90 90 Deepwater Australia/Oceania Arctic Europe LNG Africa Gas…
Upstream Balanced Portfolio Global Liquids Position Robust liquids portfolio of quality operations and advantaged projects Liquids Resource Base 2011 Liquids Production BOEB Percent 12.2 BOEB proved liquid reserves LNG/Unconv 100 40…
Upstream Balanced Portfolio Global Gas Position Gas portfolio diverse in resource type, markets, and contract structures Gas Resource Base Markets BOEB CBM/Other BCFD Africa 76 TCF proved gas reserves Arctic Deep- 16 Middle East…
Upstream Balanced Portfolio Production and Contract Mix Significant portion of production linked to oil pricing Production Mix Contract Mix MOEBD MOEBD 5 5 4 4 Gas Gas Indexed Gas Gas Indexed 3 3 Oil Oil Indexed Indexed 2 2…
Upstream Balanced Portfolio New Opportunity Growth Growing global portfolio of high-quality resource opportunities Beaufort Kara Sea West Faroe Islands Summit Creek Greenland Norway Horn River Germany Athabasca Poland Alberta…
Downstream Balanced Portfolio Scale Advantage Largest global refiner with the highest level of integration Average Refinery Size* KBD Refineries 60 percent larger 220 than industry average 200 Leveraging scale to improve 180…
Downstream Balanced Portfolio Lubricants Leadership Position Largest basestock manufacturer and leading marketer of synthetics Market Position Percent share Global synthetics demand growing 20 6 percent per year ExxonMobil…
Downstream Balanced Portfolio World-Class Brands A leading marketer of high-quality products with trusted brands Global Fuels Marketing Sales Percent, sales Global reach Industrial and Wholesale Retail Diverse sales channels…
Chemical Balanced Portfolio Balanced Portfolio Maximizes Value Industry-leading Chemical performance driven by strong portfolio Earnings B Facilities strategically located, 5 Commodities supplying all major growth regions…
Upstream Disciplined Investing Project Inventory Extensive portfolio supports selective investment decisions Project Distribution by Type Percent, resource Portfolio of 120+ projects Deepwater Unconventional Conventional Developing…
Upstream Disciplined Investing Near-Term Project Start-Ups 21 major project start-ups are planned between 2012 and 2014 Deepwater Angola Oil Sands Deepwater GOM LNG Satellites Kearl Hadrian South / Lucius Papua New Guinea…
Upstream Disciplined Investing Major Project Production Outlook Significant new production supports long-term volumes Major Project Production Outlook* MOEBD Over 1 MOEBD added by 2016 1.2 Gas Liquids Papua New Guinea Gorgon…
Downstream Disciplined Investing Selective Investments Increasing high-value diesel production for growing markets Ultra-Low Sulfur Diesel Production ExxonMobil, indexed Global diesel demand expected to 300 rise by 85 percent through…
Downstream Disciplined Investing Portfolio Management Ongoing portfolio management delivers value Global Asset Sales (2003 - 2011) Refineries 11 Pipeline Miles 5.9k Terminals 145 Countries Exited 65 Retail Stations 16.8k
Downstream Disciplined Investing Effects from Portfolio Highgrading Restructuring has driven a material decrease in our capital employed Impact of Divestments / Restructuring Percent, 2011 versus 2003; Downstream only Improved capital…
Chemical Disciplined Investing Singapore Expansion Establishing world-class integrated platform to support Asia growth Two-thirds of chemical growth from Asia Pacific Once complete, largest refining- chemical complex in our…
Corporate High-Impact Technologies Technology Leadership Developing fundamental science to meet the worlds energy challenges Corporate Strategic Research Metallurgy solutions for challenging Unique, world-class scientific arctic…
Upstream High-Impact Technologies Research and Development Progressing breakthrough research to develop high-reward, risk reduction technologies across the Upstream business Exploration Development Production Imaging Extended…
Upstream High-Impact Technologies Extended Reach Drilling Developing and applying integrated technologies to unlock greater value Drilled 23 of 27 longest-reach wells Integrated suite of technologies from modeling to wellbore…
Chemical High-Impact Technologies Feedstock Flexibility Significant flexibility to process advantaged feedstocks Worldwide Feedstock* Percent Facilities configured to run wide 100 range of feedstock Benchmark 75 feeds Access to…
Corporate Operational Excellence People Operational excellence begins with exceptional employees Culture of excellence Tailored, world-class training Diverse, global work experiences Host country workforce development
Upstream Operational Excellence Reliability and Cost Management Best practices deliver strong reliability and life-cycle cost performance Strong reliability performance Operated uptime 3 percent higher than assets…
Upstream Operational Excellence Project Execution Proven execution performance and delivery of complex projects Cost Performance* 2007 2011 Average Rigorous project management Percent 150 Superior cost and schedule delivery 109%…
Upstream Operational Excellence Cost Management Disciplined and consistent approach to cost management Total Costs per OEB* /OEB Continual effort to maximize the 25 value of each asset CVX RDS 20 Mature contracting strategies XOM…
Upstream Operational Excellence Angola and Sakhalin Developments Delivering significant life-cycle value from frontier developments Enabling frontier developments with differentiating technologies Delivering operational…
Downstream / Chemical Operational Excellence Operating Efficiency Sustaining high levels of operating efficiency Refining Energy Intensity* Indexed Refining and Chemical expanding 110 energy efficiency advantage Industry Average 105…
Chemical Operational Excellence Higher Operating Rates Technology enables higher capacity utilization Global Steam Cracker Capacity Utilization 2007 2011 Average Reliability focus Percent 90 Feedstock flexibility expands range 89 of…
Corporate Global Integration Maximizing Value through Integration Continuing to create value through the integrated business model Maximize value from Upstream resource through to finished products Leverage global functional…
Upstream / Downstream Global Integration Marketing New Crudes Early integration across the supply chain enhances resource value Upstream leveraging Downstream to optimize equity crude value Consistent integrated approach…
Downstream / Chemical Global Integration Integrated Manufacturing ExxonMobil has integration advantages that are difficult to replicate Refining Integration with Chemicals/Lubes* Percent Higher-value products 80 Integrated molecular…
Downstream / Chemical Global Integration Industry-Leading Results Downstream and Chemical businesses outperform competition Downstream and Chemical Combined ROCE Percent Proven business strategies 40 enabled by technology…
Agenda 9 AM Welcome David Rosenthal, Vice President, Investor Relations Business Overview Financial & Operating Results Rex Tillerson, Chairman and CEO Competitive Advantages BREAK Unlocking Greater Value in the Mark Albers,…
2012 Analyst Meeting Break
Unlocking Greater Value in the Upstream Mark Albers Senior Vice President Andy Swiger Senior Vice President
Upstream Consistent execution of our strategies, underpinned by a relentless focus on operational excellence, drives delivery of superior results High-quality resources captured at attractive costs Effective partnerships…
Meeting the Energy Challenge Diverse and material portfolio across resource types of growing importance in meeting global energy demand World Oil and Gas Supply Growth* 2011 ExxonMobil Resource Base MOEBD BOEB 150 2010 Production 90…
Conventional Delivering significant value from conventional resources Beaufort Sea Norway Alaska Kara Sea Canada Europe Kazakhstan Hebron/ Sakhalin Hibernia USA Azerbaijan Iraq Gulf of Mexico UAE Chad Vietnam Yemen…
Conventional Banyu Urip, Indonesia Significant onshore oil development progressing on schedule Floating Storage & 450 MB oil resource Offloading Vessel FSO Early production of 20 KBD 165 KBD full field capacity Central…
Arctic Sakhalin and Hebron Applying proven arctic capabilities to progress additional developments Sakhalin Odoptu holds world record for extended reach well Arkutun-Dagi fabrication in progress and on schedule for 2014…
Arctic Russia Extending capabilities to significant new arctic acreage position Entered into Strategic Cooperation Agreement with Rosneft Kara Sea 31 million acres Extension of prolific West Siberia hydrocarbon province…
Arctic Technology Continuing to advance new technology solutions for arctic resources 90 years of arctic technology development Laboratory Ice Management Trials Progressing next-generation technologies Advanced arctic…
Deepwater Building on established deepwater capability Faroe Islands Norway Innovative design approaches Ireland Early Production Systems Black Sea Design One, Build Multiple Gulf of Mexico Cost-effective subsea satellite…
Deepwater Gulf of Mexico Progressing development of discoveries in the Gulf of Mexico Lucius and Hadrian Discoveries Lucius Large, high-quality acreage position Oil Discovery Hadrian Gas Discovery North ExxonMobil Lease…
Liquefied Natural Gas ExxonMobil has leading global liquefied natural gas capability LNG Development Costs* /OEB (2012) South Hook Fluxys Golden Pass 20 Adriatic ExxonMobil Participation Shimizu Ras Laffan Industry Indonesia…
Liquefied Natural Gas Papua New Guinea Extending global LNG experience and project execution capabilities High-quality 9 TCF resource Two-train 6.6 MTA LNG plant Progressing on schedule Anticipate start-up in 2014 Active…
Unconventional Resources Industry-leading global unconventional resource base Unconventional Resource Base BOEB* Unconventional resource base 40 doubled since 2005 30 Unconventional Accounts for over 40 percent of Oil and Gas total…
Unconventional Resources North America Material position in unconventional resource plays across N. America Shale Gas Summit Creek 445K Shale Oil Horn River (incl. liquids rich) 340K Tight Gas Athabasca 735K Tight Oil…
Oil Sands High-quality oil sands resource underpins long-term resource value Oil Sands Mining Resource Quality 13 Significant acreage position Firebag Among the highest quality Kearl % Bitumen in ore 12 Growth area, material,…
Oil Sands Kearl High-quality resource and enabling technologies deliver long-term value Kearl Development KOEBD 400 Long-term plateau production profile Debottleneck 200 Expansion On schedule to commence Debottleneck operations…
Oil Sands Technology Emerging new technologies to further unlock oil sands value Paraffinic Froth Treatment Eliminates need for on-site upgrader Reduces GHG emissions and cost Wet Tailings Lowers tailings handling costs…
Unconventional Oil and Gas North America Gas Significant gas production growth required to meet demand Local Production to Meet Demand GCFD Technology unlocking new supplies 120 4.4% avg annual growth Significant unconventional…
Unconventional Oil and Gas Unconventional Capability XTO established the foundation of our global unconventional capability XTO Resource Base Evolution (U.S.) TCFE Key enabler to unlocking global 90 unconventional resource value 60…
Unconventional Oil and Gas Liquids-Rich Plays Well-positioned in liquids-rich unconventional plays Legacy tight oil positions in the Bakken and Permian Expanding Woodford Ardmore play Over 170K net acres; 9 operated rigs…
Unconventional Oil and Gas Operational Excellence Operational efficiency and technology capture additional value Drilling Days Evolution Percent Improvement Mature play learnings being applied 80 to new plays Barnett Haynesville…
Unconventional Oil and Gas Technology New technologies are further enhancing unconventional value Enhanced perforating and stimulation technologies Shallow water aquifer Reduce completion costs 1 to 3 Improve recovery miles…
Unconventional Resources Global Portfolio Growing global portfolio with early-mover, quality acreage pursuits Canada Europe USA China Colombia Play Type Indonesia Shale Gas Tight Gas Coal Bed Methane Argentina…
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