Growing Downstream Value Scotia Howard Weil Conference New Orleans - March 25, 2019 Bryan Milton President, Fuels and Lubricants Company, Exxon Mobil Corporation
3 EXXONMOBIL GLOBAL BUSINESSES CHEMICAL UPSTREAM 5.5 million barrels of petroleum product sales per day1 6.1 billion earnings1 Operations in 25 countries DOWNSTREAM 26.9 million tonnes of chemical prime product sales per day1 3.4…
5 DOWNSTREAM BUSINESS FUNDAMENTALS Gasoline Lubes3 Chemical feedstock Distillates2 Fuel oil1 LIQUIDS DEMAND GROWTH %, Indexed to 2016 Source: 2018 ExxonMobil Outlook for Energy: A View to 2040, ExxonMobil analysis 1 Fuel oil…
6 COMPETITIVE ADVANTAGES FUNCTIONAL EXCELLENCE PEOPLE SCALE INTEGRATION TECHNOLOGY Worldwide refining cash operating cost 15% below industry average Global optimization teams deliver 500 million earnings contribution Rigorous…
7 VALUE CHAIN PORTFOLIO Fuels Value Chain Lubes Value Chain Commercial and Trading Branded Retail Commercial Business to Business (B2B) Basestocks and Specialties Finished Lubricants Research Technology Digital Manufacturing…
8 ADVANTAGED INVESTMENTS STRENGTHEN PORTFOLIO 2 Weighted average refining NCM with investments disclosed at 2019 Analyst Meeting. Source: ExxonMobil estimates based on 3rd party data and ExxonMobil analysis EXXONMOBIL DOWNSTREAM…
improving financial performance with advantaged projects 9 MAXIMIZING VALUE OF EXISTING ASSETS maximizing refinery yields with global platform insights implementing differentiated technology solutions leading competition confirmed by…
10 IMPROVING OPERATIONAL RELIABILITY AND PERFORMANCE M Industry-leading reliability record Reliability performance improved in 2H18; 4Q18 mostly scheduled maintenance 2019 scheduled maintenance levels expected to be above 2018 1Q19…
UPGRADING PORTFOLIO 11
UPGRADING PORTFOLIO 11 1 Indexed
Unique Value Growth product technology, brand strength, market entries 12
14 MEXICO / INDONESIA MARKET ENTRIES Industry-leading refining supply cost Fuels : 177 retail sites, 400 expected by YE19 Lubes : strong Mobil brand recognition Proximity to Singapore integrated complex Fuels : mining and fleet…
15 HIGH-VALUE SYNTHETICS LUBRICANTS GROWTH MARKET POSITION Group I-II basestocks market share (%) Strongest combined market position in industry: 1 basestocks, 2 finished lubricants Value chain delivered more than 900 million…
15 HIGH-VALUE SYNTHETICS LUBRICANTS GROWTH MARKET POSITION Group I-II basestocks market share (%) Strongest combined market position in industry: 1 basestocks, 2 finished lubricants Value chain delivered more than 900 million…
Early Insight Capture market driven, advantaged investments, maximize returns 16
17 ROTTERDAM ADVANCED HYDROCRACKER Advantaged technology yields higher-value products 20 Kbd Group II basestocks 20 Kbd distillate 1.2 billion investment, 300 million/year earnings1 Doubles site earnings, becomes one of the worlds…
18 PERMIAN INTEGRATION Unique position across full value chain Logistics / refining capacity grows with equity production Progressing Downstream projects: Cost-efficient 1+ Mbd JV pipeline Beaumont light-oil expansion 1 All volumes…
19 DOWNSTREAM EARNINGS Markets Manufacturing optimization Revamps / improvements Logistics and trading Major projects 3 BILLION EARNINGS GROWTH POTENTIAL1 2017-2020 By activity Technology, scale, and integration increase earnings…
21 CYCLICAL BUSINESSES See supplemental information 1Exxon only before 1999 EARNINGS AND AVERAGE ROCE Billion USD DOWNSTREAM 14% 34% 20% 24% Downstream and Chemical businesses are cyclical Investing through cycles enables strong…
22 INVESTING IN LINE WITH FUNDAMENTALS CLEAN / DIRTY SPREAD2 Northwest Europe product price, /bbl vs. Brent 1 Includes delayed coking, flexicoking and fluid coking. IHS Energy, 2018. The use of this content was authorized in advance by…
23 LOGISTICS AND TRADING Distillate strength more than offset by mogas oversupply 1Q19 industry refining margins 16% below 4Q18 Logistics investments provide cost-efficient transportation and integration benefits Captured 1.3 billion…
24 DOWNSTREAM KEY MESSAGES Competitive advantages enable long- term value creation Growth in earnings potential driven by advantaged investments, technology, and operations Leveraging global brand recognition and marketing to…
Growing Downstream Value Scotia Howard Weil Conference New Orleans - March 25, 2019 Bryan Milton President, Fuels and Lubricants Company, Exxon Mobil Corporation
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION Other information ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint…
VALUE CHAIN - FUELS 30 Fuels refinery Fuels presence Fuels and chemicals complex Export market Fuels, basestocks and chemicals complex Proprietary process / catalyst technology Integrated circuit with unmatched scale 4.7 MBD of…
VALUE CHAIN - LUBRICANTS 31 Basestocks refinery Lubricants presence Lube blend plant Basestocks refinery and lube blend plant Affiliated third party lube blend plant Three global research and technology centers 200 research…
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