FOURTH QUARTER 2019 RESULTS 1.31.20 NEIL HANSEN VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
FOURTH QUARTER 2019 KEY MESSAGES FINANCIAL SUMMARY 4Q19 3Q19 2019 Earnings and cash flow in line with commodity market factors previously communicated Earnings 5.7 3.2 14.3 Liquids realizations essentially flat, while refining and…
DEVELOPMENTS SINCE THIRD QUARTER 2019 Liquids realizations essentially flat with higher Brent and WTI, offset by lower WCS Global gas realizations improved, but remained challenged with supply length UPSTREAM Production increased three…
EARNINGS 4Q19 VS. 3Q19 3Q19 4Q19 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS +2,520M Million USD 3,170M 5,690M DECREASE INCREASE Upstream Norway divestment, one-time tax item, higher 3,970 volumes, and improved gas realizations…
EARNINGS 2019 VS. 2018 2018 2019 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS -6,500M Million USD 20,840M 14,340M DECREASE INCREASE Upstream Norway divestment and higher liquids volumes, partly +360 offset by lower realizations and…
PRICE AND MARGIN ENVIRONMENT PRICES / MARGIN BUSINESS LINE IMPACT Billion USD 20.8 2.7 2019 earnings decreased with prices and margins 3.0 -7.5 1.0 14.3 approaching 10-year lows -1.8 Market impacted by industry capacity…
UPSTREAM PERSPECTIVE EARNINGS 2018 2019 CONTRIBUTING FACTORS TO CHANGE IN VOLUMES, 2019 vs. 2018 +363M Koebd 14,079 14,442 DECREASE INCREASE Liquids volumes increased 5% with Permian, Hebron, and Kaombo growth offsetting decline…
DOWNSTREAM PERSPECTIVE EARNINGS 2018 2019 NORTH AMERICA CRUDE DIFFERENTIALS -3,687M /bbl 6,010M 2,323M 60 Narrower North American differentials and lower margins reduced earnings by 3 billion 30 WTI Hou WCS Narrower North American…
DOWNSTREAM PERSPECTIVE EARNINGS 2018 2019 MEDIUM/HEAVY-SOUR CRUDES VS. DATED BRENT, 2019 -3,687M /bbl 6,010M 2,323M 0 Narrower North American differentials and lower Urals NWE margins reduced earnings by 3 billion -10 Mars Narrower…
CHEMICAL PERSPECTIVE EARNINGS 2018 2019 INDUSTRY POLYETHYLENE MARGIN -2,759M /tonne 3,351M 592M 1,200 PE marker price Lower margins reduced earnings by 1.8 billion Cost to produce ethylene from naphtha increased 600 65% in 4Q Cost…
FOURTH QUARTER 2019 CASH PROFILE 4Q19 2019 Cash flow from operating activities reflects Beginning Cash 5.4 3.0 industry market conditions Earnings 5.7 14.3 Working capital / other driven by adjustments for Depreciation 4.9 19.0…
MANAGEMENT PERSPECTIVES DARREN WOODS CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER
2019 PERSPECTIVE Earnings Divestments Leverage 14 billion 5 billion 13% Achieved in weak price Actively highgrading Financial strength and margin environment portfolio; marketing provides capacity to efforts progressing invest…
DEMAND FUNDAMENTALS REMAIN STRONG DEMAND GROWTH Percent 4 2010-2019 CAGR Demand fundamentals remain strong, supported 2019 growth by economic expansion Growth in demand in line with long-term fundamentals, supporting investments…
DOWNSTREAM AND CHEMICAL UPDATE REFINERY NET CASH MARGIN1 /bbl Strategic investments strengthen competitive positioning of key assets Recent projects accretive to earnings in current margin environment Planned / Actual Rotterdam,…
GUYANA UPDATE INDUSTRY-LEADING DEVELOPMENTS Development cost, /Boe 30 Delivered first oil significantly ahead of industry Industry median average and below budget Production ramp-up ongoing, anticipate 120 Kbd in coming months…
UNCONVENTIONAL BUSINESS UPDATE PERMIAN AND BAKKEN PRODUCTION1 Koebd net 1,500 Permian volume growth on schedule Actual production 4Q19 production of 294 Koebd; 2019 production of 272 Koebd Permian Increase of 54% from 4Q18, 79% from…
2020 PERSPECTIVES Progress Guyana Liza Phase 1 ramp-up, Liza Phase 2 construction, and five additional exploration wells Start up first large-scale Permian central delivery point and full cube development UPSTREAM Anticipate FID for…
SIGNIFICANT FINANCIAL CAPACITY FINANCIAL CAPACITY Total capitalization, billion USD 400 Utilizing balance sheet capacity in attractive cost Aaa-Aa rated and borrowing environment corporates XOM (YE19) XOM Leverage well below peer…
KEY MESSAGES Delivering on execution of value-accretive projects and portfolio highgrading Continuing optimization of project portfolio value Leveraging financial strength to progress advantaged investments in favorable cost…
SUPPLEMENTAL INFORMATION The following information provides a more detailed view of the factors portrayed on slide 8. Other includes Entitlements / Divestments and Demand / Other, below. UPSTREAM VOLUME FACTOR ANALYSIS 2019 vs. 2018…
SUPPLEMENTAL INFORMATION 4Q19 3Q19 2019 4Q19 3Q19 2019 Cash Flow from Operating Activities 6.4 9.1 29.7 Cash Flow from Operating Activities 6.4 9.1 29.7 Proceeds Associated with Asset Sales 3.1 0.5 3.7 Proceeds Associated with Asset…
SUPPLEMENTAL INFORMATION DIVESTMENTS NORWAY NON-OPERATED UPSTREAM Norway non-operated Upstream 4.5 Agreed sales value as of Jan 1, 2019 4.5 Mobile Bay 0.2 Estimated interim adjustments -1.1 Other 0.1 Estimated Proceeds from Vr Energi AS…
SUPPLEMENTAL INFORMATION Slide 3 Slide 17 1) Includes PP&E Adds of (6.7B) and net investments/advances of (0.7B) 1) Company estimates based on third party data. 2019 margins. Slide 7 Slide 18 1) Source: S&P Global Platts 1) Source:…
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