FOURTH QUARTER 2020 RESULTS 2.2.21 STEPHEN LITTLETON VICE PRESIDENT, INVESTOR RELATIONS AND SECRETARY
DEVELOPMENTS SINCE THIRD QUARTER 2020 Increased gas realizations; liquids realizations in-line with 3Q, recovering through quarter Government-mandated curtailments increased to 190 Koebd UPSTREAM Matched best-ever reliability…
RESULTS 4Q20 VS. 3Q20 U/S D/S CHEM C&F TOTAL Earnings increased by 900 million excluding identified items 3Q20 GAAP Earnings / (Loss) (0.4) (0.2) 0.7 (0.7) (0.7) Non-cash inventory valuation - - 0.1 - 0.1 Captured benefits of…
EARNINGS 4Q20 VS. 3Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD Upstream liquids growth and reduced economic curtailments improved earnings 110 Timing of planned turnaround, maintenance and exploration drove higher…
EARNINGS 2020 VS. 2019 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Billion USD 9.6 Reduced cash Opex 8 billion versus 20191 Includes 3 billion of structural reductions Volume down primarily due to lower demand (14.1) Improved…
UPSTREAM VOLUMES 2020 VS. 2019 CONTRIBUTING FACTORS TO CHANGE IN VOLUMES Koebd 3,952 High-return liquids growth in Permian and Guyana offset Norway divestment Govt Volumes in-line with production plan excluding mandate 60…
EXCEEDED REDUCTION TARGETS CASH OPEX Billion USD -8 billion Exceeded reduction targets for full-year capital and 55 operating spend 11 47 8 Energy and 8 billion decrease in cash Opex versus 2019 production taxes 44 39 2019…
FOURTH QUARTER 2020 CASH PROFILE 4Q20 2020 Beginning Cash 8.8 3.1 Cash flow from operations improved 600 million Earnings / (Loss) (20.1) (22.4) from 3Q20, excluding working capital effects Identified items: impairment 19.3 20.1…
FIRST QUARTER 2021 OUTLOOK Announced government-mandated curtailments averaging 150 Koebd UPSTREAM Production expected to be 140 Koebd higher due to seasonal gas demand Demand levels consistent with 4Q DOWNSTREAM Higher planned…
MANAGEMENT PERSPECTIVES DARREN WOODS CHAIRMAN OF THE BOARD AND CHIEF EXECUTIVE OFFICER
FOCUSED ON SHAREHOLDER VALUE Delivering world class safety and reliability Driving structural cost reductions Advancing flexible portfolio of high-return, cost-advantaged investments Maintaining strong dividend and fortified…
DRIVING STRUCTURAL COST EFFICIENCIES Achieved 3 billion of structural reductions in 2020; 6 billion by 2023 CASH OPEX1 Billion USD Delivered on cost reduction objectives, outperforming revised plan 44 3 Leveraged prior reorganizations…
MAINTAINING INVESTMENT OPTIONALITY Demonstrated ability to adjust capital spending and preserve value CAPEX 2021 2025 Billion USD 20 - 25 2021-2025 capital program optimized to current market outlook Guidance: 20 16 - 19 Flexible…
CAPITAL ALLOCATION PRIORITIES Leverage portfolio flexibility to sustain the dividend 2021 ESTIMATED SOURCES AND USES OF CASH1,2 Billion USD By Brent price, with Prioritizes Guyana, Brazil, Permian, and Chemical 10yr low Downstream…
CAPITAL ALLOCATION PRIORITIES Leverage portfolio flexibility to sustain the dividend 2025 ESTIMATED SOURCES AND USES OF CASH1,2 Billion USD By Brent price, with Prioritizes Guyana, Brazil, Permian, and Chemical 10yr avg. Downstream…
INVESTMENTS SUPPORT CASH FLOW GROWTH Capital expenditures grow cash flow/value through the cycle1 OPERATING CASH FLOW FROM 2021 2025 START-UPS2 Cash flow growth driven by investment program, 40% reduced operating expenses, and improved…
INDUSTRY-LEADING INVESTMENTS Upstream capital program prioritizing low cost-of-supply opportunities UPSTREAM INVESTMENTS1,2 Brent /bbl required to generate the cost-of-supply plus 10% return 45 Industry-leading investments focus on…
STRENGTHENING PERMIAN PERFORMANCE Significantly improving operating and development metrics DRILLING RATES1 Lateral feet per day; indexed to 2018 150% Permian development exceeding expectations 2020 drilling rates 50% better than plan…
FLEXIBLE PERMIAN DEVELOPMENT PLAN Options to reduce spend with market changes PERMIAN PRODUCTION1 Koebd 800 Flexible short-cycle Permian development 60/bbl Reduced 2020 Capex 35% below plan Production 2020 volumes on plan, 100 Koebd…
DELIVERING CAPITAL ALLOCATION PRIORITIES Focused capital program delivers exceptional returns and price resiliency Restructured organization driving significant efficiencies Advantaged projects deliver low-cost supply and…
DELIVERING LOWER EMISSIONS Committed to addressing risk of climate change Support Operated GHG Announced Research, develop, Paris emissions reduction plans to commercialize Agreement -6% since 2016 2025 3 Billion2 Engaging in climate…
LOWERING EMISSIONS Committed to reducing emissions EXXONMOBIL AND SOCIETYS EMISSIONS1 Indexed to 2016; % Achieved 6% absolute GHG reduction since Paris 105 Agreement in 20163 Non-OECD, +4% Global, +2% Reducing intensity across…
REDUCTIONS CONSISTENT WITH PARIS AGREEMENT Plans provide affordable and reliable energy while minimizing environmental impacts EXXONMOBIL AND SOCIETYS EMISSIONS1,2,3 Percent reduction versus 2016 1 Societys emissions Paris submissions…
CARBON CAPTURE IS CRITICAL FOR A 2C PATHWAY CCS mitigates emissions at an affordable cost PROJECTED CO2 REDUCTIONS BY TECHNOLOGY FROM 2019 - 20401 Billion tonnes 0 5 10 15 20 25 IEA/IPCC assessment of carbon capture: Solar Grows to…
EXXONMOBIL IS THE GLOBAL LEADER IN CCS More than 30 years of CCS experience CUMULATIVE CO2 CAPTURE VOLUME SINCE 19701 Leveraging ExxonMobils strengths to significantly Million tonnes advance CCS: 30+ years of operating experience…
FOCUSED ON SHAREHOLDER VALUE Delivering world class safety and reliability Driving structural cost reductions Advancing flexible portfolio of high-return, cost-advantaged investments Maintaining strong dividend and fortified…
Q&A Mark your calendars for ExxonMobil Investor Day Webcast March 3, 2021 8:00 a.m. Central Time
EARNINGS POTENTIAL Improvements in price and margins generate material cash flow upside DOWNSTREAM AND CHEMICAL ANNUAL EARNINGS SENSITIVITY FROM PRICES / MARGINS 4Q 2020 MARGINS 6 2010 - 2020 Billion USD 10 Crude Natural gas Downstream…
UPSTREAM 4Q20 VS. 3Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 745 Captured benefits of improving gas and LNG markets 400 (90) Strategic investment in Guyana, reduced economic 160 curtailments and lower maintenance…
UPSTREAM VOLUMES 4Q20 VS. 3Q20 CONTRIBUTING FACTORS TO CHANGE IN VOLUMES Koebd Reduced economic curtailment offset by higher government-mandated curtailments Groningen Limits 3,689 85 (35) 3,672 Lower entitlements with higher…
DOWNSTREAM 4Q20 VS. 3Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD Lower margins include the impact of unsettled mark-to-market derivatives Higher planned turnaround and maintenance activity (240) Strong…
CHEMICAL 4Q20 VS. 3Q20 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 30 Strong operational performance and improved (80) margins from packaging strength and automotive / (80) durable market recovery 713 300 Higher…
UPSTREAM 2020 VS. 2019 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 10,008 Unprecedented demand destruction significantly impacted liquids and gas realizations High-return liquids growth in Permian and Guyana partially…
DOWNSTREAM 2020 VS. 2019 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 2,332 Unprecedented demand destruction significantly impacted refining margins Contribution from trading, optimization, and marketing helped mitigate…
CHEMICAL 2020 VS. 2019 CONTRIBUTING FACTORS TO CHANGE IN EARNINGS Million USD 2,077 Strong reliability and lower feed costs improved margins 710 COVID impacted sales volumes across multiple (150) businesses 930 Delivered…
SUPPLEMENTAL INFORMATION IDENTIFIED ITEMS RECONCILIATION FOURTH QUARTER THIRD QUARTER TWELVE MONTHS 2020 2019 2020 2020 2019 Earnings / (Loss) U.S. GAAP (20.1) 5.7 (0.7) (22.4) 14.3 Identified Items Included in Earnings /…
SUPPLEMENTAL INFORMATION Curtailments, as used on slides 7 and 32, includes both (1) government mandates and (2) economic curtailments. Government mandates are shown as a separate category below. Economic curtailments are included below…
SUPPLEMENTAL INFORMATION Slide 4 Slide 17 1) Period-to-period change in earnings as a result of fair value accounting for 1) 2025 Available Cash from Operations assumes Downstream and Chemical unsettled derivatives. at the average of…
SUPPLEMENTAL INFORMATION Slide 20 Slide 24 1) Midland and Delaware only, including all areas, formations and lateral lengths. 1) EM GHG emissions, absolute (Operated CO2-equivalent Scope 1 & 2) from 2016 to 2019 and preliminary estimate…
SUPPLEMENTAL INFORMATION Slide 26 Slide 30 1) IEA World Energy Outlook 2020. Comparison of IEA Sustainable Development 1) Source: S&P Global Platts. Scenario vs. IEA Stated Policies Scenario. 2) Source: ICE. Equal weighting of Henry Hub…
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