2019 INVESTOR DAY New York Stock Exchange / 03.06.19
AGENDA AGENDA 3 8:00 Welcome Neil Hansen Vice President Overview Darren Woods Chairman and CEO Upstream Neil Chapman Senior Vice President 9:45 Break Downstream and Chemical Jack Williams Senior Vice President Investment and…
OVERVIEW
2019 KEY MESSAGES 2019 KEY MESSAGES Value growth plans on track with additional upside 5 Delivering on plans outlined in 2018 with upside Strong business fundamentals support investments Competitive advantages enable long-term value…
2018 EARNINGS 2018 EARNINGS Delivering on plans outlined in 2018 with upside 6 1 2 EARNINGS Billion USD 1 Excludes impact of U.S. tax reform and impairments in 2017 and 2018 2 2018 March Investor Day basis (60/bbl Brent flat real,…
DELIVERING ON COMMITMENTS DELIVERING ON COMMITMENTS Delivering on plans outlined in 2018 with upside 7 1 Guyana volumes and resource gross 2 Permian volumes net See supplemental information
LONG-TERM FUNDAMENTALS UPSTREAM 8 LONG-TERM FUNDAMENTALS UPSTREAM Strong business fundamentals support investments New supply required Depletion without investment EM outlook demand Avg demand based on assessed 2oC scenarios2 OIL…
LONG-TERM FUNDAMENTALS UPSTREAM 9 LONG-TERM FUNDAMENTALS UPSTREAM Strong business fundamentals support investments ESTIMATED CUMULATIVE NEW OIL SUPPLY REQUIRED2 Billion barrels ESTIMATED CUMULATIVE NEW NATURAL GAS SUPPLY REQUIRED…
LONG-TERM FUNDAMENTALS DOWNSTREAM 10 LONG-TERM FUNDAMENTALS DOWNSTREAM Strong business fundamentals support investments Gasoline Lubes3 Chemical feedstock Distillates2 Fuel oil1 LIQUIDS DEMAND GROWTH %, Indexed to 2016 Source: 2018 EM…
LONG-TERM FUNDAMENTALS DEMAND 11 LONG-TERM FUNDAMENTALS DEMAND Strong business fundamentals support investments Other Chemicals Commercial transportation Source: 2018 EM Outlook for Energy: A View to 2040 See supplemental information…
LONG-TERM FUNDAMENTALS CHEMICAL 12 LONG-TERM FUNDAMENTALS CHEMICAL Strong business fundamentals support investments GDP CHEMICAL DEMAND GROWTH %, Indexed to 2016 Source: 2018 EM Outlook for Energy: A View to 2040, IHS, EM estimates…
LONG-TERM FUNDAMENTALS CHEMICAL 13 LONG-TERM FUNDAMENTALS CHEMICAL Strong business fundamentals support investments PE GDP PX PP Population growth and improved living standards drive projected chemical demand above GDP Expanding…
COMPETITIVE ADVANTAGES 14 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation SCALE FUNCTIONAL EXCELLENCE PEOPLE INTEGRATION TECHNOLOGY
COMPETITIVE ADVANTAGES TECHNOLOGY 15 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation Results in industry-advantaged assets, processes, products, and applications Facilitates response to changes in…
COMPETITIVE ADVANTAGES 16 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation Enables investment in the development of advanced technologies Accelerates experience and learning across global operations…
COMPETITIVE ADVANTAGES 17 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation Maximizes value across the entire value chain, ensuring whole is greater than sum of the parts Provides diversification, helping…
COMPETITIVE ADVANTAGES FUNCTIONAL EXCELLENCE 18 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation Strong culture of doing the right things, the right way, at a high standard Translation of experience and…
COMPETITIVE ADVANTAGES PEOPLE 19 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation Competitive advantages realized through commitment and hard work of our people World-class capabilities developed through…
COMPETITIVE ADVANTAGES 20 COMPETITIVE ADVANTAGES Competitive advantages enable long-term value creation SCALE FUNCTIONAL EXCELLENCE INTEGRATION TECHNOLOGY Synergies exist between advantages that create additional benefits…
VALUE INVESTING 21 VALUE INVESTING Progressing advantaged investments and highgrading portfolio Guyana, Permian 26 30 Brazil, Indonesia 33 - 35 30 - 35 CAPEX Billion USD See supplemental information Best portfolio of opportunities…
DISCIPLINED INVESTING 22 DISCIPLINED INVESTING Progressing advantaged investments and highgrading portfolio REINVESTMENT RATE, 2009 2018 Capex1/cash flow from operations Source: Peer data based on publicly available information as of…
DISCIPLINED INVESTING 23 DISCIPLINED INVESTING Progressing advantaged investments and highgrading portfolio Average annual capex1 (billion USD) REINVESTMENT RATE, 2019 2020 Capex1/cash flow from operations Source: Peer data based on…
ATTRACTIVE COST ENVIRONMENT 24 ATTRACTIVE COST ENVIRONMENT Progressing advantaged investments and highgrading portfolio Deepwater rig Land rig 3D seismic EXPLORATION AND PRODUCTION COSTS %, Indexed to 2013 Source: Fearnley Offshore…
PORTFOLIO MANAGEMENT 25 PORTFOLIO MANAGEMENT Progressing advantaged investments and highgrading portfolio Strong history of highgrading portfolio Annual average of 3.5 billion in proceeds in past five years Rigorous evaluation of…
PORTFOLIO MANAGEMENT 26 PORTFOLIO MANAGEMENT Progressing advantaged investments and highgrading portfolio High-quality portfolio additions drive increased focus on Upstream Expect increased divestment activity over next 3 years…
GROWING EARNINGS POTENTIAL 27 GROWING EARNINGS POTENTIAL Earnings, cash flow, and return profile grow in a flat price environment EARNINGS POTENTIAL Billion USD 1 2018 March Investor Day basis (60/bbl Brent flat real, 2017 margins) 2…
GROWING CASH FLOW POTENTIAL 28 GROWING CASH FLOW POTENTIAL Earnings, cash flow, and return profile grow in a flat price environment CASH FLOW FROM OPERATIONS AND ASSET SALES POTENTIAL Billion USD 1 2018 March Investor Day basis (60/bbl…
ROCE GROWTH POTENTIAL 29 ROCE GROWTH POTENTIAL Earnings, cash flow, and return profile grow in a flat price environment RETURN ON CAPITAL EMPLOYED, 2016-2018 AVERAGE % Source: Peer data based on publicly available information as of…
ROCE GROWTH POTENTIAL 30 ROCE GROWTH POTENTIAL Earnings, cash flow, and return profile grow in a flat price environment RETURN ON CAPITAL EMPLOYED POTENTIAL1 % 1 ROCE potential reflects company plans as of the date of this…
2019 KEY MESSAGES 2019 KEY MESSAGES Value growth plans on track with additional upside 31 Delivering on plans outlined in 2018 with upside Strong business fundamentals support investments Competitive advantages enable long-term value…
UPSTREAM
UPSTREAM KEY MESSAGES UPSTREAM KEY MESSAGES 33 Continuing to strengthen Upstream portfolio Exceeding plans laid out last year Growing value of portfolio driven by five outstanding developments Unconventional liquids: Permian…
COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES Competitive advantages enable value capture across full value chains 34 SCALE FUNCTIONAL EXCELLENCE PEOPLE INTEGRATION TECHNOLOGY
UPSTREAM ORGANIZATION UPSTREAM ORGANIZATION Streamlined value-driven organization 35 Global Businesses Portfolio Unconventional, Deepwater, LNG, Heavy Oil, Conventional Global Functional Support Competitiveness, Exploration,…
UPSTREAM PORTFOLIO UPSTREAM PORTFOLIO Strengthening Upstream portfolio 36 2018 Investor Day recap Best opportunity portfolio since the merger Permian, Guyana, Brazil, Mozambique, PNG All attractive across a range of prices Contribute…
UPSTREAM PORTFOLIO UPSTREAM PORTFOLIO Strengthening Upstream portfolio 37 ESTIMATED OPERATING CASH CONTRIBUTION Billion USD Source: Peer data from Wood Mackenzie data adjusted for flat real (GEM 3Q 2018 60/bbl) 1 Compound annual…
38 PERMIAN
39 UPSTREAM PERMIAN High side flexibility Five outstanding developments PERMIAN AND BAKKEN PRODUCTION, 2018 OUTLOOK1 Koebd net See supplemental information Bakken Permian 2018 Investor Day recap 600 Koebd by 2025 1 Potential…
40 UPSTREAM PERMIAN Bakken Permian 2018 Investor Day Five outstanding developments PERMIAN AND BAKKEN PRODUCTION, 2019 OUTLOOK1 Koebd net See supplemental information 2018 Investor Day recap 600 Koebd by 2025 2019 update…
41 UPSTREAM PERMIAN Delaware Basin Midland Basin ExxonMobil acreage Five outstanding developments 10 Boeb resource1 and growing Significant 2017 acquisition Large blocks of contiguous acreage Continuing to add and upgrade acreage…
42 UPSTREAM PERMIAN Stacked depositional stratum HYDROCARBON DENSITY MAP Delaware Basin Midland Basin Five outstanding developments 10 Boeb resource1 and growing Significant 2017 acquisition Large blocks of contiguous acreage…
UPSTREAM PERMIAN Delaware Basin HYDROCARBON DENSITY MAP FOR PERMIAN TIGHT OIL Five outstanding developments 43 Overview of development plan Established a unique low-cost development plan Significantly differentiated from competition…
44 UPSTREAM PERMIAN POKER LAKE UNIT, DELAWARE BASIN Five outstanding developments Plan based on efficient multi-well pad corridors Developing multi-bench resource Enhancing resource recovery
UPSTREAM PERMIAN UPSTREAM PERMIAN 45 Typical row development design, up to 10 miles end-to-end Five outstanding developments
UPSTREAM PERMIAN UPSTREAM PERMIAN 46 Enables design of optimum size and location for gas, liquids, water separation and compression facilities Capital efficient investment: Modular phased approach to expansion Design one, build many…
UPSTREAM PERMIAN UPSTREAM PERMIAN 47 Simplifies field evacuation and logistics Five outstanding developments
UPSTREAM PERMIAN UPSTREAM PERMIAN 48 Five outstanding developments Central delivery point Capital-efficient, field-wide gathering Control own destiny reduce shut-in risk Simplifies in-basin evacuation and logistics leveraging Wink…
UPSTREAM PERMIAN UPSTREAM PERMIAN 49 Five outstanding developments See supplemental information Development plan schedule 2017 Major Delaware acquisition 2018 Growing Midland production Delineating Delaware resource YE 42 rigs, 11…
50 UPSTREAM PERMIAN Increasing resource recovery Enhancing subsurface characterization Novel completions research Further optimizing development plan High-contact fracture research Subsurface modeling Rapid incorporation of…
51 UPSTREAM PERMIAN Five outstanding developments 1 Earnings potential; includes logistics, operated assets only 2 Flat real Brent, 2017 margins See supplemental information PERMIAN ESTIMATED EARNINGS1 Billion USD PERMIAN ESTIMATED…
52 DEEPWATER
UPSTREAM DEEPWATER 53 Guyana Stabroek Brazil Carcara Bubble size: NPV10 (entire development) Five outstanding developments UPSTREAM DEEPWATER GREENFIELD DEEPWATER IOC PROJECTS %, Internal rate of return Source: Wood Mackenzie (FID…
UPSTREAM GUYANA UPSTREAM GUYANA 54 Five outstanding developments See supplemental information 5 new discoveries in 2018, 2 new discoveries in 2019 12 discoveries to date in SE of Stabroek block Gross recoverable resource estimate 5.5…
UPSTREAM GUYANA UPSTREAM GUYANA 55 Liza Ph 1 Future Developments Payara Liza Ph 2 Five outstanding developments PRODUCTION Kbd gross 1 Production potential on a 2018 March Investor Day basis, includes Liza-1, Liza-2, Payara and Future…
UPSTREAM GUYANA UPSTREAM GUYANA 56 LIZA DESTINY Phase 1 FPSO nearing completion Liza Phase 2 (220 Kbd) FID 1Q 2019 Leveraging learnings and designs of Phase 1 On schedule for start-up 2022 Payara (180-220 Kbd) Early engineering…
UPSTREAM BRAZIL Carcara Completed farm-in to BM-S-81 Drilled 2018 exploration well North Carcara Drilled 1st appraisal well in 2018 analysis ongoing 2019: 2nd appraisal well ongoing Development progressing on plan Design concept…
UPSTREAM BRAZIL UPSTREAM BRAZIL 58 Five outstanding developments Tit SEAL-351 SEAL-430 SEAL-428 SEAL-503 SEAL-501 SEAL-573 S-M-536 C-M-789 C- M-753 C-M-657 C-M-709 S-M-647 NET ACREAGE Million acres Source: Wood Mackenzie High-quality…
59 LNG
UPSTREAM LNG UPSTREAM LNG 60 Demand New supply required Proposed…
UPSTREAM MOZAMBIQUE UPSTREAM MOZAMBIQUE 61 Five outstanding developments 1 All volumes gross 2 Will reduce to 50% post government approval of QP farm-down See supplemental information LNG development on plan Area 4 potential for 40…
UPSTREAM PNG UPSTREAM PNG 62 NET RESOURCE (Tcf)1 Five outstanding developments See supplemental information Continued high performance from existing operations Outstanding earthquake recovery; 2H18 reliability 99% Facilities running…
UPSTREAM GOLDEN PASS UPSTREAM GOLDEN PASS 63 EXISTING GOLDEN PASS TERMINAL 1 Gross volume 2 ExxonMobil purchase of applicable ConocoPhillips interest subject to regulatory clearances 3 trains, 16 Mta1 capacity 70% Qatar Petroleum…
64 PORTFOLIO
UPSTREAM EXPLORATION UPSTREAM EXPLORATION Portfolio competitiveness 65 TOTAL COMMERCIAL DISCOVERIES, 2013-2018 Moeb, net RESOURCE ADDITIONS INCLUDING ACQUISITIONS, 2013- 2017 Average Moeb, net Source: Wood Mackenzie 80% higher net…
UPSTREAM EXPLORATION UPSTREAM EXPLORATION Portfolio competitiveness 66 Deepwater LNG Other EXPLORATION DRILLING1 Gross wells EXPLORATION COSTS INCURRED Billion USD See supplemental information Next 3 years of exploration focused on…
UPSTREAM KEARL 67 UPSTREAM KEARL Portfolio competitiveness Kearl unit cash operating costs KEARL SITE PRODUCTION AND COST Kbd, gross USD/bbl, net Kearl site Improvements on schedule 2018 gross production 206 Kbd vs. 200 Kbd plan…
PORTFOLIO MANAGEMENT UPSTREAM ASSETS YE2018 count 68 PORTFOLIO MANAGEMENT Progressing advantaged investments and highgrading portfolio Source: Wood Mackenzie; EM analysis on potential divestments 1 Assets defined by Wood Mackenzie do…
UPSTREAM VOLUMES OUTLOOK UPSTREAM VOLUMES OUTLOOK Portfolio competitiveness 69 4.0 4.2 3.8 VOLUMES OUTLOOK1 AT 60/bbl Moebd net 2018 volumes in-line with 2017, excluding entitlements and divestments Included 3% liquids growth driven…
70 UPSTREAM PERFORMANCE Significant increase in value UPSTREAM EARNINGS PER OEB %, Indexed to 2019 UNIT CASH OPERATING COSTS1 %, Indexed to 2019 1 Normalized for price and forex impacts; excludes divestments See supplemental…
UPSTREAM KEY MESSAGES UPSTREAM KEY MESSAGES 71 Exceeding plans laid out last year Growing value of portfolio driven by five outstanding developments Aggressively enhancing portfolio competitiveness
DOWNSTREAM AND CHEMICAL
INCREASING VALUE Combined Downstream and Chemical average earnings 30% higher than nearest IOC competitor Earnings grow with investments, underpinned by unique competitive advantages Proprietary catalyst and process technology…
DOWNSTREAM
DOWNSTREAM KEY MESSAGES Delivering on plans outlined in 2018; upgrading to higher-value products Competitive advantages enable value capture across fuels and lubes value chains Advantaged projects, logistics, and new markets drive…
COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES Competitive advantages enable value capture across full value chains 76 SCALE FUNCTIONAL EXCELLENCE PEOPLE INTEGRATION TECHNOLOGY
DELIVERING ON COMMITMENTS DELIVERING ON COMMITMENTS Delivering on plans outlined in 2018; upgrading to higher-value products 77 See supplemental information
PRODUCT MIX IMPROVES PROFITABILITY 78 PRODUCT MIX IMPROVES PROFITABILITY Delivering on plans outlined in 2018; upgrading to higher-value products EXXONMOBIL DOWNSTREAM PRODUCT MIX1 % 61/bbl 77/bbl 107/bbl 84/bbl 114/bbl Upgrading…
MAXIMIZING EXISTING ASSETS 79 MAXIMIZING EXISTING ASSETS Leveraging scale to capture value from manufacturing optimization Industry-leading refining capacity of 4.7 Mbd Global optimization team for each major refining technology…
ENTERING GROWTH MARKETS TO DELIVER VALUE Proximity to Singapore integrated complex Innovative microsites enable accelerated growth 20 microsites at YE18 with 500 microsites at YE19 Indonesia 80 ENTERING GROWTH MARKETS TO DELIVER…
PERMIAN INTEGRATION 81 PERMIAN INTEGRATION Advantaged projects, logistics, and new markets drive earnings growth Unique position across full value chain Logistics/refining capacity grows with equity production Progressing…
BEAUMONT LIGHT CRUDE EXPANSION 82 BEAUMONT LIGHT CRUDE EXPANSION Advantaged projects, logistics, and new markets drive earnings growth BEAUMONT PROFITABILITY AND CRUDE CAPACITY Pre vs. post investment Beaumont post-investment…
ROTTERDAM HYDROCRACKER 83 ROTTERDAM HYDROCRACKER Advantaged projects, logistics, and new markets drive earnings growth Rotterdam post-investment Rotterdam pre-investment ROTTERDAM PROFITABILITY AND CRUDE CAPACITY Pre vs. post…
HIGHER-VALUE BASESTOCKS DEMAND GROWTH 84 HIGHER-VALUE BASESTOCKS DEMAND GROWTH Growing industry-leading basestock cost of supply Cumulative basestock production (Kbd) Advantaged ExxonMobil production cost supports competitiveness…
LUBRICANTS VALUE CHAIN LEADERSHIP 85 LUBRICANTS VALUE CHAIN LEADERSHIP Growing industry-leading lubricants business MARKET POSITION Group I-II basestocks market share (%) SYNTHETIC LUBRICANTS SALES GROWTH %, Indexed to 2007…
DOWNSTREAM KEY MESSAGES DOWNSTREAM KEY MESSAGES On track to upgrade production 87 Delivering on plans outlined in 2018; upgrading to higher-value products Competitive advantages enable value capture across fuels and lubes value…
CHEMICAL
CHEMICAL KEY MESSAGES CHEMICAL KEY MESSAGES On track to grow advantaged performance products 89 Growing new sales volume in North America and Asia 3 new projects online in 2018; 6% annual global sales growth 4 U.S. Gulf Coast olefin…
CHEMICAL BUSINESS CYCLES CHEMICAL BUSINESS CYCLES Long-term fundamentals and competitive advantages support value growth plans 90 Chemical business is cyclical ExxonMobil invests consistently for long term Investing through cycles…
COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES Competitive advantages enable value capture across full value chains 91 SCALE FUNCTIONAL EXCELLENCE PEOPLE INTEGRATION TECHNOLOGY
DELIVERING ON COMMITMENTS DELIVERING ON COMMITMENTS Delivering on plans outlined in 2018; upgrading to higher-value products 92 See supplemental information
GULF COAST GROWTH VENTURE GULF COAST GROWTH VENTURE Growing sales volume with focus on performance products 93 25% Lower Cost 1 LEVERAGING WORLD-CLASS PROJECT EXPERTISE Project unit cost (thousand USD/ton) Worlds largest grassroots…
U.S. GULF COAST OLEFIN DERIVATIVES U.S. GULF COAST OLEFIN DERIVATIVES Growing sales volume with focus on performance products 94 See supplemental information 1At 2018 Investor Day Basis (60/bbl Brent 2017 flat real, 2017 margins),…
NEW LIQUIDS STEAM CRACKER IN CHINA NEW LIQUIDS STEAM CRACKER IN CHINA Growing sales volume with focus on performance products 95 1.2 Mta flexible-feed steam cracker Applying proprietary crude-cracking technology Higher-value…
SCALE AND MARKET ACCESS CAPTURE GROWTH SCALE AND MARKET ACCESS CAPTURE GROWTH Leveraging global integration, scale, and strong customer focus 96 Chemical sales in more than 130 countries 20 world-class manufacturing sites provide…
PERFORMANCE PRODUCTS DRIVE DIFFERENTIATION PERFORMANCE PRODUCTS DRIVE DIFFERENTIATION Leveraging technology to differentiate ExxonMobil through the value chain 97 Product demand growth driven by customer application success…
PERFORMANCE PRODUCTS DRIVE EARNINGS GROWTH PERFORMANCE PRODUCTS DRIVE EARNINGS GROWTH Increasing Chemical earnings profile 98 Sales grow 30% by 2025 driven by North America and Asia Performance products grow 50% with pipeline of…
CHEMICAL KEY MESSAGES CHEMICAL KEY MESSAGES On track to grow advantaged performance products 99 Growing new sales volume in North America and Asia Increasing proportion of sales from higher-value performance products Leveraging…
INVESTMENT AND FINANCIAL PLAN
GROWING VALUE GROWING VALUE Investment plans drive significant growth in shareholder value 101 Structural improvement in capacity to generate earnings, cash flow, and ROCE Investments robust across range of prices and scenarios…
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