PRICE AND MARGIN BASIS 4 PRICE AND MARGIN BASIS Updated basis for cash flow and earnings potential to reflect commodity cycles Capital-intensive commodity businesses subject to price and margin cycles drives business results Establish…
PRICE AND MARGIN BASIS 5 PRICE AND MARGIN BASIS Updated framework reflective of industry cyclicality CRUDE PRICE Brent1 (2019 /bbl) Average3 High Low GAS PRICE Henry Hub1 (2019 /mbtu) 2018 ID basis2 2018 ID basis2 1 Actual pricing…
PRICE AND MARGIN BASIS 6 PRICE AND MARGIN BASIS Updated framework reflective of industry cyclicality 5 year high 5 year low 5 year average 5 year average INDUSTRY REFINING MARGIN1 /bbl CHEMICAL VARIABLE MARGIN2 %, indexed to 2015…
OVERVIEW
2020 KEY MESSAGES 2020 KEY MESSAGES 8 Growing global prosperity drives investments in oil, natural gas, and chemicals Evolving demand requires investments in refining and technology Earnings and cash flow grow with advantaged…
2019 CHALLENGED ENVIRONMENT 2019 CHALLENGED ENVIRONMENT Robust demand growth drove significant capacity additions DEMAND Change from 2000 PRICE AND MARGIN Change from 2000 Natural gas4 Refining2 Polyethylene1 9 Polyethylene…
SIGNIFICANT FINANCIAL CAPACITY SIGNIFICANT FINANCIAL CAPACITY Facilitates counter-cyclical investments to capture significant value 10 ExxonMobil Peer group range1 ExxonMobil potential2 (50/bbl with sustained low margins) 20% Source:…
RESPONDING WHILE PRESERVING VALUE RESPONDING WHILE PRESERVING VALUE Balancing capital allocation priorities and value 11 Commitment remains to long-standing growth in dividends Advantaged investments critical to long-term success and…
ENERGY IS ESSENTIAL Very high High Medium Low Size of circle depicts relative size of population Yemen Bangladesh India Mexico Spain Nigeria Egypt China Energy demand per capita (1,000 BTUs / person / day) 50% of world population…
ENERGY DEMAND WILL GROW GLOBAL MIDDLE CLASS NEARLY DOUBLES Billion people Others Asia Pacific Africa / Middle East Source: The Brookings Institution - Global Economy & Development 2017 ENERGY DEMAND WILL GROW Economic growth in…
ENERGY DEMAND WILL GROW CHANGE IN GLOBAL ENERGY DEMAND AND ENERGY-RELATED EMISSIONS, 2015 - 2030 ENERGY DEMAND WILL GROW Economic growth in non-OECD nations increases demand and emissions Global population grows by 1 billion people1…
ENERGY DEMAND WILL GROW CHANGE IN GLOBAL ENERGY DEMAND AND ENERGY-RELATED EMISSIONS, 2015 - 2019 ENERGY DEMAND WILL GROW Economic growth in non-OECD nations increases demand and emissions Almost half of the worlds energy is dedicated…
Energy demand contributes to EMISSIONS Energy demand contributes to EMISSIONS Emissions driven by three sectors and non-OECD nations Non-OECD nations account for 65% of energy-related emissions of total GHG emissions Energy- related…
TECHNOLOGY SOLUTIONS REQUIRED TECHNOLOGY SOLUTIONS REQUIRED Advances needed to address deficiencies in alternatives 11% 14% Long-haul transportation requires energy-dense fuels Large batteries and frequent recharging needed with…
TECHNOLOGY SOLUTIONS REQUIRED Advances needed to address deficiencies in alternatives 38% 39% BARRIERS TO EXISTING ALTERNATIVES Affordability and adoption limited by availability, density, and intermittency Storage and transmission…
TECHNOLOGY SOLUTIONS REQUIRED Advances needed to address deficiencies in alternatives 30% 29% BARRIERS TO EXISTING ALTERNATIVES Limited number of economic solutions Insufficient heat and energy intensity to support manufacturing…
ENERGY EVOLUTION ENERGY EVOLUTION Scale and infrastructure requirements limit pace of energy transition Evolution of energy system will require time given scale, complexity, and societys needs Availability and affordability critical…
ENERGY EVOLUTION ENERGY EVOLUTION Scale and infrastructure requirements limit pace of energy transition Evolution of energy system will require time given scale, complexity, and societys needs Availability and affordability critical…
LIMITED ALTERNATIVES SUPPORT INVESTMENTS GLOBAL NATURAL GAS SUPPLY AND DEMAND Bcfd LIMITED ALTERNATIVES SUPPORT INVESTMENTS Depletion drives level of investments Significant new supplies needed across range of demand scenarios IEA…
INSUFFICIENT INDUSTRY INVESTMENT INSUFFICIENT INDUSTRY INVESTMENT Increased investments needed to meet demand and offset depletion Higher level of resource discovery and investment required beyond growth in unconventional GLOBAL…
DISCIPLINED INVESTMENTS DISCIPLINED INVESTMENTS Progressing advantaged investments REINVESTMENT RATE, 2010 - 2019 Capex1 / cash flow from operations 24 BP TOT CVX RDS XOM 1 Capex excludes non-cash acquisitions Average annual capex1…
DISCIPLINED INVESTMENTS TOT BP RDS 25 DISCIPLINED INVESTMENTS Progressing advantaged investments REINVESTMENT RATE, 2020 - 2021 Capex1 / cash flow from operations2 CVX Average annual capex1 (Billion USD) XOM XOM 10 - 19 1 Capex…
FAVORABLE INVESTMENT ENVIRONMENT FAVORABLE INVESTMENT ENVIRONMENT Down cycle costs further advantage projects Reduced costs of exploration and development strengthen project returns CONSTRUCTION COSTS Indexed to 2013 DRILLING AND…
COMPETITIVE ADVANTAGES COMPETITIVE ADVANTAGES Drive value creation and industry-leading opportunities Industry-advantaged assets; optimized facilities; advances in processes, products, and discoveries TECHNOLOGY Enables investment;…
DELIVERING ON 2018 commitments DELIVERING ON 2018 commitments Advancing structural business improvements UPSTREAM CHEMICAL DOWNSTREAM 28 1 From capacity additions, 2017 to 2025 See supplemental information
GROWING EARNINGS CAPACITY 29 GROWING EARNINGS CAPACITY Advantaged investments improve earnings, cash flow, and returns potential Delivering structural improvements to grow earnings capacity across business Earnings improvement…
GROWING EARNINGS CAPACITY 30 GROWING EARNINGS CAPACITY Advantaged investments improve earnings, cash flow, and returns potential Delivering structural improvements to grow earnings capacity across business Earnings improvement…
2020 KEY MESSAGES 2020 KEY MESSAGES 31 Growing global prosperity drives investments in oil, natural gas, and chemicals Evolving demand requires investments in refining and technology Earnings and cash flow grow with advantaged…
UPSTREAM
Upstream Key messages 33 Upstream Key messages Driving utilization improvements and expense reductions in base assets to deliver stronger cash flow Highgrading asset portfolio with divestment program Executing strongest portfolio of…
MAXIMIZING BASE ASSET VALUE MAXIMIZING BASE ASSET VALUE BASE ASSETS1 Indexed to 2020 Cash Prioritizing highest-return investments Disciplined control of capex Reduction in unconventional dry gas Leveraging technology and global best…
HIGHGRADING Portfolio Divestments based on strategic fit, materiality, and growth potential Enables deployment of resources to highest-value opportunities Individual transactions assessed against retention value Total in 2019 of…
EXECUTING Growth Plans Includes diverse mix of resource types and shorter / longer-cycle developments Provides optionality on investment timing and pace of development Generates double-digit returns at low prices (40/bbl, 5/mbtu)1…
EXECUTING Growth Plans Includes diverse mix of resource types and shorter / longer-cycle developments Provides optionality on investment timing and pace of development Generates double-digit returns at low prices (40/bbl, 5/mbtu)1…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Development of advantaged acreage and resource in early stages Resource1 base of 10 Boeb Midland development more mature; largely established infrastructure 20% of resource…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Development of advantaged acreage and resource in early stages Delaware transitioning from delineation to development drilling Rig count to peak in 1Q20 DELAWARE RIG ACTIVITY…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Development of advantaged acreage and resource in early stages Met or exceeded production plan over last five years Volumes increased 80% in 2019 PERMIAN PRODUCTION Koebd net…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Competitive advantages deliver higher-value development plan Higher-value development plan Cube development to maximize resource recovery and long-term value Development at scale…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian MAXIMIZING LONG-TERM VALUE DRIVING LOWER TOTAL DEVELOPMENT COST Development at scale to drive capital efficiency and lower operating costs Maximizing value balancing production…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Cube drilling simultaneously develops multiple stacked pay zones Greatly reduces parent-child impacts Maximizes resource recovery Increases resource value (NPV) versus best well…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Cube drilling simultaneously develops multiple stacked pay zones Greatly reduces parent-child impacts Maximizes resource recovery Increases resource value (NPV) versus best well…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Understanding subsurface characteristics and fluid properties critical for successful cube development Proprietary technologies provide a significant advantage Key in selecting…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian All wells drilled in single phase higher initial capital investment Parent-child effects greatly reduced Maximizes ultimate resource recovery and value Multiple drilling phases…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian DELAWARE AVERAGE WELL OIL PRODUCTION RATES (365 DAYS) Bbl/d ExxonMobil DELAWARE1 AVERAGE WELL CUMULATIVE OIL RECOVERY Kbbl 2019 2018 2017 Delaware delineation confirmed…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Midland transitioned to cube development with demonstrated improvement in resource recovery Transitioning Delaware to expanded cube development 48 Maximizing value balancing…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Overview of development plan Multi-well pad corridors reduce duration of rig moves and improve logistics efficiencies 49 Maximizing value balancing production rates, resource…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Overview of development plan Multi-well pad corridors reduce duration of rig moves and improve logistics efficiencies Development of large contiguous acreage reduces separation…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian DELAWARE BASIN DRILLING AND COMPLETION COSTS1 Indexed to 2H18 Drilling and completion costs decreased 23% in 2019 Improved frac stage completion efficiency enabling reduction in…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian TANK BATTERY UNIT CAPITAL COST1 Indexed COMPRESSOR STATION UNIT CAPITAL COST1 Indexed Scale development delivers up to 50% cost reduction 52 Maximizing value balancing production…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Overview of development plan Multi-well pad corridors reduce duration of rig moves and improve logistics efficiencies Development of large contiguous acreage reduces separation and…
KEY GROWTH PROJECT Permian KEY GROWTH PROJECT Permian Central delivery points include multiple trains sized for capital efficiency and field development pace Poker Lake Cowboy central delivery point capacity 200 Kbd and 400 Mcfd in…
EXECUTING Growth Plans Includes diverse mix of resource types and shorter / longer-cycle developments Provides optionality on investment timing and pace of development Generates double-digit returns at low prices (40/bbl, 5/mbtu)1…
KEY GROWTH PROJECT deepwater KEY GROWTH PROJECT deepwater Exploration and development success increasing value of deepwater portfolio GREENFIELD DEEPWATER IOC PROJECTS Internal rate of return Source: Wood Mackenzie (FID Tracker for…
KEY GROWTH PROJECT guyana KEY GROWTH PROJECT guyana Exploration and development success increasing value of deepwater portfolio SURINAME Pickett: Suggest we add Georgetown to the map 58 Restricted Distribution - Prepared under…
KEY GROWTH PROJECT guyana KEY GROWTH PROJECT guyana Exploration and development success increasing value of deepwater portfolio Obtaining enhanced version with green circles to be moved slightly so they are not touching the grey…
KEY GROWTH PROJECT guyana Continuing to explore 6.6M acre Stabroek block 5 discoveries in 2019; 1 discovery to date in 2020 16 discoveries out of 18 wells drilled on the Stabroek block Industry-leading technologies foundational to…
KEY GROWTH PROJECT guyana Five additional exploration wells planned for 2020 Includes testing new play concepts in Canje, Kaieteur, and extent of deeper Cretaceous across Stabroek Considerable undrilled potential of more than 50…
KEY GROWTH PROJECT guyana Benchmarking confirms leading deepwater competitiveness Delivered Liza phase 1 first-oil in December 2019, ahead of schedule and below budget Production ramp-up ongoing, expected to reach full capacity of…
KEY GROWTH PROJECT guyana KEY GROWTH PROJECT guyana Exploration and development success increasing value of deepwater portfolio Liza Phase 2 development (220 Kbd) on schedule for 2022 start-up Leveraging learnings and designs of Phase…
KEY GROWTH PROJECT guyana KEY GROWTH PROJECT guyana Exploration and development success increasing value of deepwater portfolio Progressing towards 2023 start-up of Phase 3 development at Payara (220 Kbd) Working with host government…
KEY GROWTH PROJECT BRAZIL Bacalhau Phase 1 development progressing on schedule Completed two appraisal wells in 2019 FID anticipated late 2020 First oil targeted 2023 / 2024 Commenced drilling on Uirapuru block KEY GROWTH PROJECT…
KEY GROWTH PROJECT BRAZIL Leading IOC acreage position with 2.5M acres More than 450K acres added in 2019 Operator in over 60% of acreage Exploration drilling to start in 2020 Prioritized operated opportunities within the Santos,…
EXECUTING Growth Plans Includes diverse mix of resource types and shorter / longer-cycle developments Provides optionality on investment timing and pace of development Generates double-digit returns at low prices (40/bbl, 5/mbtu)1…
KEY GROWTH PROJECTs LNG KEY GROWTH PROJECTs LNG Long-term demand driven by increasing power generation and lower emissions profile LNG demand remains strong, driven by competitive costs and lower emissions in power generation…
KEY GROWTH PROJECT Mozambique Potential LNG capacity of over 40 Mta1 through phased developments in Area 4 25% interest, onshore operator 3.4 Mta floating LNG (Coral) on track for start-up in 2022 15.2 Mta Rovuma Phase 1…
KEY GROWTH PROJECT PNG Continued strong performance from existing operations 2019 production 8.5 Mta, 20% above design capacity Net resource of 10 Tcf1 Papua / Pnyang 3 train, 8 Mta development Papua gas agreement finalized in 2019…
Upstream volumes outlook Upstream volumes outlook Production growth focused on increasing value PRODUCTION Koebd, net 71 Working on 2020 bridge to 2019 ID outlook Upstream strategy is driven by growing value Growth focused on…
Exploration PORTFOLIO Exploration PORTFOLIO Expanding portfolio of low-cost opportunities through industry-leading exploration success TOTAL COMMERCIAL DISCOVERIES1, 2014 - 2019 Boeb, net Source: Wood Mackenzie Discoveries three times…
Upstream Key messages 74 Upstream Key messages Driving utilization improvements and expense reductions in base assets to deliver stronger cash flow Highgrading asset portfolio with divestment program Executing strongest portfolio of…
DOWNSTREAM
DOWNSTREAM KEY MESSAGES DOWNSTREAM KEY MESSAGES Leveraging integration while driving efficiencies to maximize value from base assets Advantaged investments upgrading refinery configuration to support demand growth for higher-value…
EFFICIENT MANUFACTURING Average refinery capacity 75% higher than industry Cost advantage of 10% compared to average refiner, resulting in 900M annual benefit First-quartile energy efficiency with 34 cogeneration units across…
EFFICIENT MANUFACTURING Interchange of process streams represents 30% of total crude processing at integrated sites Enables lower feedstock costs and production of highest-value products Synergies include shared resources,…
IMPROVING REFINERY CONFIGURATION 79 REFINING CONFIGURATION 2008 to 2023 Kbd IMPROVING REFINERY CONFIGURATION Upgrading production with proprietary technology and portfolio highgrading Higher conversion advantaged by up to 7/bbl in…
PORTFOLIO HIGHGRADING PORTFOLIO HIGHGRADING Focusing portfolio on long-term strategic assets CUMULATIVE CASH PROCEEDS Billion USD Japan Canada retail Germany / Italy 10B reduction in capital employed1 14 refineries 4,000 pipeline…
EVOLVING DEMAND EVOLVING DEMAND Fuel economy standards drive increasing demand for higher-quality lubricants and Group II basestocks Increase in demand for chemical products underpins growth in refining feedstocks Demand for…
HIGH-RETURN GROWTH INITIATIVES 82 HIGH-RETURN GROWTH INITIATIVES Advantaged investments and global footprint serve as foundation for earnings growth Major projects Revamps & improvements Trading & optimization Advantaged investments…
MAJOR PROJECTS MAJOR PROJECTS Advantaged investments aligned with evolving demand DOWNSTREAM PRODUCT SHIFT, YEAR-END 2025 VS. 2017 Kbd 54 70 78 109 MAJOR PROJECTS REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING Projects…
BEAUMONT LIGHT-CRUDE EXPANSION Materially improves site competitiveness MAJOR PROJECTS BEAUMONT LIGHT-CRUDE EXPANSION REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING Beaumont Light-Crude Expansion 250 Kbd expansion Beaumont…
BEAUMONT LIGHT-CRUDE EXPANSION Materially improves site competitiveness MAJOR PROJECTS BEAUMONT LIGHT-CRUDE EXPANSION REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING REFINERY NET CASH MARGIN /bbl Beaumont post-project…
FAWLEY HYDROFINER AND PIPELINE REVAMPS AND IMPROVEMENTS Materially improves site competitiveness Increases production of higher-value products Improves yield to better align with local market demand Leverages logistics into Greater…
FAWLEY HYDROFINER AND PIPELINE REVAMPS AND IMPROVEMENTS Materially improves site competitiveness MAJOR PROJECTS FAWLEY HYDROFINER AND PIPELINE OPTIMIZATION, TRADING, MARKETING REFINERY NET CASH MARGIN /bbl Fawley post-project Fawley…
SINGAPORE RESID UPGRADE Materially improves site competitiveness MAJOR PROJECTS SINGAPORE RESID UPGRADE REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING Upgrading high-sulfur fuel oil to high-quality lubes basestocks and…
SINGAPORE RESID UPGRADE Materially improves site competitiveness MAJOR PROJECTS SINGAPORE RESID UPGRADE REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING REFINERY NET CASH MARGIN /bbl Singapore post-project Singapore 700…
PERMIAN INTEGRATION OPTIMIZATION, TRADING, MARKETING PERMIAN INTEGRATION Unique position enables earnings growth across full value chain MAJOR PROJECTS REVAMPS AND IMPROVEMENTS Corpus Christi 90 Advantaged position in Midland and…
PERMIAN INTEGRATION PERMIAN INTEGRATION Unique position enables earnings growth across full value chain 500 million annual earnings potential1 MAJOR PROJECTS Corpus Christi Most efficient logistics to Baytown and Beaumont…
PERMIAN INTEGRATION OPTIMIZATION, TRADING, MARKETING PERMIAN INTEGRATION Unique position enables earnings growth across full value chain MAJOR PROJECTS 500 million annual earnings potential1 Corpus Christi REVAMPS AND IMPROVEMENTS…
PERMIAN INTEGRATION PERMIAN INTEGRATION Unique position enables earnings growth across full value chain 1 billion annual earnings potential1 MAJOR PROJECTS Corpus Christi REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING 93…
PERMIAN INTEGRATION OPTIMIZATION, TRADING, MARKETING PERMIAN INTEGRATION Unique position enables earnings growth across full value chain PERMIAN VALUE CHAIN PARTICIPATION MAJOR PROJECTS Permian production (Koebd) U.S Gulf Coast…
REVAMPS And IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING REVAMPS And IMPROVEMENTS Smaller-scale projects with average returns of 30%1 REVAMPS AND IMPROVEMENTS MAJOR PROJECTS BAYTOWN SINGAPORE BATON ROUGE Two projects supporting…
GROWING LOGISTICS CAPACITY FOR OPTIMIZATION OPTIMIZATION, TRADING, MARKETING REVAMPS AND IMPROVEMENTS MAJOR PROJECTS Supply chain advantage in Mexico with strong U.S. Gulf Coast production base and low-cost import logistics…
LUBRICANTS VALUE CHAIN LEADERSHIP GLOBAL SYNTHETIC LUBRICANTS SALES GROWTH Indexed to 2011 MAJOR PROJECTS REVAMPS AND IMPROVEMENTS OPTIMIZATION, TRADING, MARKETING LUBRICANTS VALUE CHAIN LEADERSHIP Leveraging global footprint across…
GROWING EARNINGS CAPACITY GROWING EARNINGS CAPACITY Advantaged investments and efforts to optimize asset footprint improve earnings potential 98 1 5 year average margin basis See supplemental information 2020 earnings improvement…
DOWNSTREAM KEY MESSAGES DOWNSTREAM KEY MESSAGES Leveraging integration while driving efficiencies to maximize value from base assets Advantaged investments upgrading refinery configuration to support demand growth for higher-value…
CHEMICAL
CHEMICAL KEY MESSAGES 101 CHEMICAL KEY MESSAGES Growing demand to meet evolving needs of rapidly expanding middle class Demand growth attracting significant industry investments Project advantages coupled with proprietary technology…
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