third quarter 2012 earnings call - exxonmobil3q12 financial results achieved strong results while...

Third Quarter 2012 Earnings CallNovember 1, 2012

David Rosenthal

Vice President Investor Relations & Secretary

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Cautionary StatementForward-Looking Statements. Outlooks, forecasts, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; ExxonMobil’s production growth and mix; the amount and mix of capital expenditures; future distributions; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; drilling programs; product sales and mix; and the impact of technology could differ materially due to a number of factors. These include changes in oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; the outcome of exploration; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation and outcomes of litigation; the outcome of commercial negotiations; the actions of competitors and customers; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investors section of our Web site at exxonmobil.com. Completion of pending acquisitions will depend on the terms and timing of government approvals and satisfaction of other conditions precedent contained in the applicable agreements. See also Item 1A of ExxonMobil’s 2011 Form 10-K. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date.

Frequently Used Terms. References to resources, resource base, discovered resources, recoverable resources and similar terms include quantities of oil and gas that are not yet classified as proved reserves under SEC definitions but that we believe will likely be developed and moved into the proved reserves category in the future. For definitions and more information regarding resources, reserves, return on average capital employed, cash flow from operations and asset sales, and other terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms" posted on the Investors section of our Web site. The Financial and Operating Review on our Web site also shows ExxonMobil's net interest in specific projects.

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Business Environment

Global economic uncertainty continued in the third quarter with further weakness in Europe and Japan

■ U.S. GDP showed marginal improvement

■ China’s growth rate decline moderated versus prior quarters

■ Higher crude oil and U.S. natural gas prices

■ Stronger industry refining margins

■ Europe and Asia chemical margins showed continued weakness

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3Q12 Financial Results

Achieved strong results while investing for the long term

Earnings 9.6

Earnings Per Share – Diluted (dollars) 2.09

Shareholder Distributions 7.6

CAPEX 9.2

Cash Flow from Ops and Asset Sales* 14.0

Cash 13.3

Debt 12.4Billions of dollars unless specified otherwise

Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations.Note: cash includes restricted cash of $206M.* Includes $0.6B associated with asset sales.

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3Q12 Sources and Uses of Funds

Superior cash generation provides ability to fund robust projects, return cash to shareholders, and maintain financial flexibility

Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations.Note: beginning and ending balances include restricted cash of $215M and $206M respectively.

Beginning Cash 18.0

Earnings 9.6

Depreciation 4.0

Working Capital / Other (0.2)

Proceeds Associated with Asset Sales 0.6

Additions to PP&E (8.0)

Shareholder Distributions (7.6)

Additional Financing / Investing (3.1)

Ending Cash 13.3Billions of dollars unless specified otherwise

14.0

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Total Earnings – 3Q12 vs. 3Q11

Earnings decreased by $760M, primarily due to lower gains from asset sales and lower upstream volumes partly offset by higher refining margins

Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations.

3Q11 U/S D/S Chem C&F 3Q12

10,330 (2,421)1,611 (213) 263 9,570

Millions of Dollars

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Total Earnings – 3Q12 vs. 2Q12

Earnings decreased by $6.3B primarily due to lower gains on asset sales


2Q12 U/S D/S Chem C&F 3Q12

15,910 (2,385)

(3,456)

(659) 160 9,570

Millions of Dollars

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Upstream

Major Projects

Advanced global portfolio of high-quality projects

■ Nigeria Satellites Phase 1 project on track for first oil in 4Q 2012

■ Kearl Initial Development phased start-up activities underway

■ PNG construction and Hides drilling progressing

PNG LNG Plant Site

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Upstream

Gulf of Mexico

Advanced opportunities in the Gulf of Mexico

Deepwater Champion – Hadrian 7

■ Drilled two Hadrian North appraisal wells

■ Active Exploration drilling program

Hummer Shallow

Phobos

Thorn

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Upstream

Black Sea

Established a material acreage position in the northern Black Sea

■ Ukraine

Awarded Skifska Block Tender

Negotiating JOA and PSA

■ Romania

Preparing for 3D seismic acquisition in late 2012

Drilling planned for late 2013 -2014

■ Russia

3D seismic processing underway

Drilling planned for 2014 - 2015

Russia

Georgia

Turkey

Bulgaria

Ukraine

Romania

Neptun

Skifska

400km

DominoDiscovery

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Upstream

Russia – Arctic and West Siberia Exploration

Progressed Strategic Cooperation Agreement with Rosneft

■ Kara Sea exploration activities

Completed Kara Sea 3D seismic acquisition

Completed oceanographic study

Drilling planned for 2014-15

Advancing arctic drilling technology

■ West Siberia exploration Work program under

development Drilling planned to begin in 2013

West SiberiaBasin Boundary

Oil Fields

Gas & Oil Fields

Gas Fields

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Upstream

Unconventional Liquids

Continued focus on high-potential, liquids-rich opportunities

■ United States

Bakken – Signed agreement which will increase position to nearly 600,000 net acres

Woodford Ardmore - Advanced infrastructure projects

■ Western Canada

Signed agreement to acquire 649,000 net acres in the Montneyand Duvernay shales

Bakken Drilling Rigs

13

Upstream

Earnings – 3Q12 vs. 3Q11

Earnings decreased $2.4B primarily due to lower gains on asset sales and lower volumes

3Q11 Realization Vol/Mix Other 3Q12

8,394 (130) (700)(1,600)

5,973

Millions of Dollars


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Upstream

Volumes – 3Q12 vs. 3Q11

Volumes decreased 7.5%: liquids -133 kbd, natural gas -1,136 mcfd

3Q11 Entitlements Quotas Divestments Net Growth 3Q12

4,282 (144) 9 (62) (125) 3,960

koebd

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Upstream


Earnings decreased $2.4B reflecting lower gains on asset sales and lower volumes, partly offset by stronger realizations


2Q12 Realization Vol/Mix Other 3Q12

8,358 340 (540)(2,180)

5,973

Millions of Dollars

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Upstream

Volumes – 3Q12 vs. 2Q12

Volumes decreased 4.6%: liquids -92 kbd, natural gas -600 mcfd

2Q12 Entitlements Quotas Divestments Net Growth 3Q12

4,152 (39) (1) (1) (151) 3,960

koebd

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Upstream

2012 Volumes

■ Operational performance approximately 1% below outlook

■ Higher prices and divestments impacting volumes

■ Fourth quarter volumes supported by seasonal demand, project startups, and completion of scheduled downtime

Volumes (koebd)

4,000

4,100

4,200

4,300

Est.

3QYT

D A

naly

st M

tg.

$111

Bre

nt

3QYT

D A

ctua

l

Year-to-date volumes below outlook

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Downstream



3Q11 Margin Vol/Mix Other 3Q12

Millions of Dollars

1,579

850 (20)

780 3,190

Earnings increased $1.6B due to improved margins, gains on assets sales, and forex

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Downstream


Earnings decreased $3.5B due to lower gains on asset sales partly offset by improved refining margins



Millions of Dollars

6,646650 300 (4,410)

3,190

20

Chemical


Earnings decreased $213M primarily due to weaker margins



Millions of Dollars

1,003 (150)(10) (50) 790

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Chemical


Earnings decreased $659M due to lower gains on asset sales and weaker margins



Millions of Dollars

1,449 (90) 20 (590)

790

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Summary

ExxonMobil’s strong financial and operating performance reflects the value of our integrated business model and competitive advantages

Billions 3Q12

Earnings $9.6

Cash Flow from Ops and Asset Sales* $14.0

Capex $9.2

Shareholder Distributions $7.6

Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations.* Includes $0.6B associated with asset sales.

■ ExxonMobil possesses unique competitive advantages that create long-term shareholder value Balanced portfolio

Disciplined investing

High-impact technologies

Operational excellence

Global integration

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third quarter 2012 earnings call - exxonmobil3q12 financial results achieved strong results while...

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