THIRD QUARTER 2020 RESULTS THIRD QUARTER 2020 RESULTS 10.30.20 STEPHEN LITTLETON VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
DEVELOPMENTS SINCE SECOND QUARTER 2020 DEVELOPMENTS SINCE SECOND QUARTER 2020 3
RESULTS 3Q20 VS. 2Q20 4 RESULTS 3Q20 VS. 2Q20 Liquids prices improved from 2Q lows Higher volumes driven by demand recovery Earnings benefit from reduced expenses across all businesses 0.2 billion vs. 2Q20 1 billion vs. 3Q19…
UPSTREAM 3Q20 VS. 2Q20 5 UPSTREAM 3Q20 VS. 2Q20 Liquids realizations increased 75%, gas realizations down 10% mainly due to LNG price lag Higher volumes from curtailment recovery, sales timing and entitlements Lower expenses due to…
UPSTREAM 3Q20 VS. 3Q19 6 UPSTREAM 3Q20 VS. 3Q19 Liquids realizations decreased 30%, gas realizations down 40% Higher entitlements and volume growth more than offset by curtailments and divestments Lower production and exploration…
UPSTREAM VOLUMES 3Q20 VS. 2Q20 7 UPSTREAM VOLUMES 3Q20 VS. 2Q20 Government-mandated curtailments through quarter (140 Koebd) Recovery of economic curtailments in unconventional and heavy oil Volume growth driven by Permian Kearl…
UPSTREAM VOLUMES 3Q20 VS. 3Q19 8 UPSTREAM VOLUMES 3Q20 VS. 3Q19 Government-mandated and economic curtailments in unconventional and heavy-oil Divestments driven by Norway sale Growth in Permian, Abu Dhabi and Guyana Decline and…
DOWNSTREAM 3Q20 VS. 2Q20 9 DOWNSTREAM 3Q20 VS. 2Q20 Favorable trading, optimization, price/timing, and marketing more than offset 470 million decrease from record low refinery margins Significant demand recovery for transportation…
DOWNSTREAM 3Q20 VS. 3Q19 10 DOWNSTREAM 3Q20 VS. 3Q19 Favorable trading, optimization, and marketing of 400 million partially offset 2.3 billion decrease from refinery margins Reduced demand with COVID-19 impacts Lower expenses…
CHEMICAL 3Q20 VS. 2Q20 11 CHEMICAL 3Q20 VS. 2Q20 Margins impacted by higher feed costs Record polyethylene sales in 3Q Recovering demand from automotive and construction markets Continuing to capture savings through supply chain…
CHEMICAL 3Q20 VS. 3Q19 12 CHEMICAL 3Q20 VS. 3Q19 Margins benefited from lower feed costs Higher volumes on strong reliability Delivering aggressive cost reduction through supply chain efficiencies, contractor management, and pacing…
DRIVING OPEX EFFICIENCIES 13 DRIVING OPEX EFFICIENCIES See Supplemental Information. 5 0 10 15 3Q19 CASH OPERATING COSTS Billion USD 1Q20 2Q20 3Q20 Energy, production taxes, turnarounds / maintenance On track to exceed reduction…
DRIVING CAPEX EFFICIENCIES 14 DRIVING CAPEX EFFICIENCIES On track to exceed reduction for capital spending Year-to-date Capex of 17 billion Reducing Capex through pacing of short-cycle unconventional, exploration activity, and…
THIRD QUARTER 2020 CASH PROFILE 15 THIRD QUARTER 2020 CASH PROFILE Improved cash flow from operations of 4.4 billion Working capital benefit from inventory draws Capital spending down with investment pacing Debt levels consistent…
FOURTH QUARTER 2020 OUTLOOK FOURTH QUARTER 2020 OUTLOOK 16
MANAGEMENT PERSPECTIVES MANAGEMENT PERSPECTIVES JACK WILLIAMS SENIOR VICE PRESIDENT ANDREW SWIGER SENIOR VICE PRESIDENT
KEY MESSAGES KEY MESSAGES 18
LIQUIDS SUPPLY/DEMAND BALANCE RECOVERING 19 LIQUIDS SUPPLY/DEMAND BALANCE RECOVERING 3Q20 demand increased 13% versus 2Q20 3Q20 supply decreased by 1% versus 2Q20 3Q20 inventory levels decreased by 200 million barrels Expect…
INDUSTRY INVESTMENT DOWN 20 INDUSTRY INVESTMENT DOWN Investment responds to price signals Five year decline in supply-development spend Shift to short-cycle unconventional Significant further reduction with pandemic Exploration at…
INDUSTRY INVESTMENT DOWN 21 INDUSTRY INVESTMENT DOWN Investment responds to price signals Five year decline in supply-development spend Shift to short-cycle unconventional Significant further reduction with pandemic Exploration at…
MARGIN ENVIRONMENT 22 MARGIN ENVIRONMENT Refining margins at historic lows Driving increased rationalizations Chemical margins near bottom of cycle Increasing number of project deferrals and cancellations Industry supply / capacity…
LOOKING TO 2021 23 LOOKING TO 2021
DRIVING REDUCTION IN SPEND 24 DRIVING REDUCTION IN SPEND Reorganizations allow step-change in efficiency and improved responsiveness Better line-of-sight to work process improvements Work to date delivering 15% workforce1 reduction…
PRIORITIZING HIGHEST VALUE INVESTMENTS 25 PRIORITIZING HIGHEST VALUE INVESTMENTS UPSTREAM DOWNSTREAM / CHEMICAL Progressing Guyana developments; 750 Kbd by 2026 Bacalhau on schedule Maintaining exploration activities in Guyana and…
GUYANA UPDATE 26 GUYANA UPDATE Discovered resources approaching 9 Boeb 18th discovery at Redtail-1 Additional discoveries at Yellowtail-2 Liza Phase 2 on schedule for 2022 start-up Completed Payara FID 600 Mbo1 development 220…
PERMIAN UPDATE 27 PERMIAN UPDATE Meeting 2020 production commitments despite curtailments and pacing 35% reduction in Capex 14 Koebd year-to-date impact due to curtailments Significant improvement in performance vs. 2019 Drilling…
HIGHGRADING PORTFOLIO 28 HIGHGRADING PORTFOLIO Growing industry-leading portfolio of development opportunities Guyana, Brazil, Permian, LNG (Mozambique, PNG) Robust returns across range of prices Investment program unchanged in…
EARNINGS POTENTIAL 29 EARNINGS POTENTIAL Unprecedented price/margin environment with all businesses below 10-year range Environment resulting in: Underinvestment in Upstream Accelerated refinery rationalizations Chemical project…
CAPITAL ALLOCATION PRIORITIES 30 CAPITAL ALLOCATION PRIORITIES Long-term capital allocation priorities remain unchanged Invest in advantaged projects Maintain strong balance sheet Provide reliable and growing dividend Developing…
KEY MESSAGES KEY MESSAGES 31
Q&A Q&A Mark your calendars for ExxonMobil Investor Day March 3, 2021 Virtual
FOURTH QUARTER 2020 OUTLOOK CHEMICAL SCHEDULED MAINTENANCE QUARTERLY EARNINGS IMPACT Million USD 2019 quarterly average 1Q20 2Q20 4Q20 Est. 3Q20 33 FOURTH QUARTER 2020 OUTLOOK 1,2 See Supplemental Information 1 Estimates based on…
SUPPLEMENTAL INFORMATION 34 SUPPLEMENTAL INFORMATION 1 Koebd Curtailments, as used on slides 7 and 8, includes both (1) government mandates and (2) economic curtailments. Government mandates are shown as a separate category below.…
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION Slide 7 Includes Permian, Guyana and Abu Dhabi. Slide 8 Includes Permian, Guyana and Abu Dhabi. Slide 15 Includes noncontrolling interests of 2M in 3Q20 and (147M) in…
SUPPLEMENTAL INFORMATION SUPPLEMENTAL INFORMATION Slide 26 Millions of barrels of crude oil. Cost of supply: The per-unit cost of developing a resource making it merchantable including all costs and a specified discount rate. Measured…
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