SECOND QUARTER 2020 RESULTS 7.31.20 STEPHEN LITTLETON VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
DEVELOPMENTS SINCE FIRST QUARTER 2020 DEVELOPMENTS SINCE FIRST QUARTER 2020 3
4 Improvement during 2Q from April lows Lower volumes related to COVID-19 demand impacts Earnings benefit from reduced expenses across all businesses of 0.8 billion Positive inventory valuation impact from higher commodity prices…
5 Liquids realizations down 50%, gas realizations down 25% Volume impacts driven by scheduled maintenance and lower seasonal gas demand Lower expenses from efficiencies, reduced unconventional and exploration activities, and…
UPSTREAM VOLUMES 2Q20 VS. 1Q20 UPSTREAM VOLUMES 2Q20 VS. 1Q20 Economic curtailments in unconventional and heavy-oil Government-mandated reductions implemented in May Lower seasonal gas demand in Europe Scheduled maintenance timing,…
UPSTREAM VOLUMES 2Q20 VS. 2Q19 UPSTREAM VOLUMES 2Q20 VS. 2Q19 7 Economic curtailments in unconventional and heavy- oil Government-mandated reductions implemented in May Norway divestment Liquids growth driven by Permian, Abu…
DOWNSTREAM 2Q20 VS. 1Q20 DOWNSTREAM 2Q20 VS. 1Q20 8 Lower margins and demand impacts driven by COVID-19 Absence of 1Q favorable mark-to-market impact of 1.1 billion and 2Q impact of (0.2) billion Lower manufacturing turnaround…
DOWNSTREAM 2Q20 VS. 2Q19 DOWNSTREAM 2Q20 VS. 2Q19 9 Lower margins and demand impacts driven by COVID-19 Lower manufacturing turnaround activity Reduced expenses from logistics optimization, efficiencies, and market- related…
CHEMICAL 2Q20 VS. 1Q20 CHEMICAL 2Q20 VS. 1Q20 10 Margin impact flat with 1Q Lower volumes with COVID-19 demand impacts Optimized pacing of projects, turnaround and maintenance efficiencies, and supply chain savings reduced…
CHEMICAL 2Q20 VS. 2Q19 CHEMICAL 2Q20 VS. 2Q19 11 Margins benefited from lower feed costs Lower volumes with COVID-19 demand impacts Optimized pacing of projects, turnaround and maintenance efficiencies, and supply chain savings…
DRIVING EFFICIENCIES 12 On track to meet or exceed full-year capital spending and cost- reduction targets Pacing investments while preserving long-term value Options to ramp up short-cycle investments based on market conditions…
FINANCIAL CAPACITY 13 FINANCIAL CAPACITY ,See Supplemental Information Preserving financial capacity by reducing near-term Capex and lowering cash operating costs Leveraged competitive access to capital markets Issued 15 billion of…
SECOND QUARTER 2020 CASH PROFILE SECOND QUARTER 2020 CASH PROFILE 14 Cash flow from operating activities in line with anticipated COVID-19 demand impacts / oversupply Non-cash inventory adjustment with increased inventory value from…
THIRD QUARTER 2020 OUTLOOK THIRD QUARTER 2020 OUTLOOK 15
MANAGEMENT PERSPECTIVES NEIL CHAPMAN SENIOR VICE PRESIDENT
KEY MESSAGES KEY MESSAGES 17
RECOVERING TRANSPORTATION FUELS DEMAND 18 RECOVERING TRANSPORTATION FUELS DEMAND See Supplemental Information 0 Mar -60 Apr May Jun Jul -30 EUROPE Percent change U.S. Percent change ASIA PACIFIC Percent change
TRANSPORTATION FUELS DEMAND OUTLOOK 19 TRANSPORTATION FUELS DEMAND OUTLOOK 4Q20 road transportation fuels demand projected to be similar to 4Q19 levels Slowest recovery expected for jet fuel 2Q20 global refinery crude throughput 15%…
LIQUIDS SUPPLY/DEMAND BALANCE RECOVERING 20 LIQUIDS SUPPLY/DEMAND BALANCE RECOVERING LIQUIDS SUPPLY / DEMAND Millions of barrels per day 2Q20 demand down 20% versus 2Q19 Unprecedented industry supply cuts OPEC+ down 11 Mbd North…
PRODUCTION CURTAILMENTS 21 PRODUCTION CURTAILMENTS 2Q economic and government-mandated production curtailments 330 Koebd Government mandated 120 Koebd Unconventional 75 Koebd Heavy oil 130 Koebd Early life unconventional wells shut…
PERMIAN UPDATE 22 PERMIAN UPDATE Volumes shown on a net basis 2Q production of 298 Koebd Up 9% vs. 2Q19 despite curtailments Anticipate 2020 production 345 Koebd Down 15 Koebd vs. Investor Day Significant reduction in Capex…
GUYANA UPDATE 23 GUYANA UPDATE Liza Phase 1 demonstrated production capacity of 120 Kbd Liza Phase 2 development remains on schedule for 2022 start-up Four drilling rigs operating in June Exploration, appraisal, and development…
24 Reduction in capital spending ahead of revised plan On track to meet or exceed 30% reduction target Significant reductions in short-cycle unconventional Working closely with contractors, partners, governments Achieve short-term…
25 Ahead of pace to achieve 15% reduction target Maintaining safety and operations integrity spend Recent reorganizations critical to identification and rapid capture of efficiencies Accelerating implementation of previously…
26 Long-term capital allocation priorities remain unchanged Invest in advantaged projects Maintain strong balance sheet Provide reliable and growing dividend Balancing priorities in response to short-term conditions Reducing…
KEY MESSAGES KEY MESSAGES 27
Q&A
THIRD QUARTER 2020 OUTLOOK 2Q20 1Q20 CHEMICAL SCHEDULED MAINTENANCE QUARTERLY EARNINGS IMPACT Million USD 2019 quarterly average 3Q20 Est. THIRD QUARTER 2020 OUTLOOK 29 Full year 2020 turnaround activity down from 2019 DOWNSTREAM…
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION 30 Curtailments, as used on slides 6 and 7, includes both (1) government mandates and (2) economic curtailments. Government mandates are shown as a separate category below. Economic…
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION Slide 12 Includes production and manufacturing expenses; selling, general and administrative expenses; exploration expenses, including dry holes. See definitions on following page.…
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