third quarter 2015 earnings call jeff woodbury vice...

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Third Quarter 2015 Earnings Call Jeff Woodbury Vice President, Investor RelaCons & Secretary October 30, 2015

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•  ThirdQuarter2015EarningsCall

•  JeffWoodbury• VicePresident,InvestorRelaCons&Secretary

• October30,2015

Cau$onary Statement

•  Forward-LookingStatements.Outlooks,expectaCons,forecasts,esCmates,targets,businessplans,andotherstatementsoffutureeventsorcondiConsinthispresentaConorthesubsequentdiscussionperiodareforward-lookingstatements.Actualfutureresults,includingfinancialandoperaCngperformance;demandgrowthandmix;ExxonMobil’svolume/producCongrowthandmix;theamountandmixofcapitalexpenditures;resourceaddiConsandrecoveries;findinganddevelopmentcosts;projectplans,Cming,costs,andcapaciCes;drillingprograms;productsalesandmix;dividendandsharepurchaselevels;cashanddebtbalances;corporateandfinancingexpenses;andtheimpactoftechnologycoulddiffermateriallyduetoanumberoffactors.TheseincludechangesinoilorgaspricesorothermarketcondiConsaffecCngtheoil,gas,andpetrochemicalindustries;theoccurrenceandduraConofeconomicrecessions;reservoirperformance;theoutcomeofexploraCon;CmelycompleConofdevelopmentprojects;warandotherpoliCcalorsecuritydisturbances;changesinlaworgovernmentregulaCon,includingsancConsaswellastaxandenvironmentalregulaCons;theoutcomeofcommercialnegoCaCons;opportuniCesforinvestmentsordivestmentsthatmayarise;theacConsofcompeCtorsandcustomers;unexpectedtechnologicaldevelopments;unforeseentechnicaldifficulCes;andotherfactorsdiscussedhereandundertheheading"FactorsAffecCngFutureResults"intheInvestorssecConofourWebsiteatexxonmobil.com.SeealsoItem1AofExxonMobil’s2014Form10-K.Forward-lookingstatementsarebasedonmanagement’sknowledgeandreasonableexpectaConsonthedatehereof,andweassumenodutytoupdatethesestatementsasofanyfuturedate.

•  FrequentlyUsedTerms.Referencestoresources,theresourcebase,barrelsofoil,volumesofgasandliquids,andsimilartermsincludequanCCesthatarenotyetclassifiedasprovedreservesunderSECdefiniConsbutthatwebelievewilllikelybedevelopedandmovedintotheprovedreservescategoryinthefuture.ShareholderdistribuConsreferredtointhispresentaConmeancashdividendsplussharespurchasedtoreducesharesoutstanding(excludinganC-diluCvepurchases).FordefiniConsandmoreinformaConregardingresources,reserves,cashflowfromoperaConsandassetsales,freecashflow,andothertermsusedinthispresentaCon,includinginformaConrequiredbySECRegulaConG,seethe"FrequentlyUsedTerms"postedontheInvestorssecConofourWebsiteandtheaddiConalinformaConprovidedinthispresentaConandinthe8-KfiledtodaywithourearningspressreleaseandIRsupplement.TheFinancialandOperaCngReviewonourWebsitealsoshowsExxonMobil'snetinterestinspecificprojects.

•  Theterm‘project’asusedinthispresentaConcanrefertoavarietyofdifferentacCviCesanddoesnotnecessarilyhavethesamemeaningasinanygovernmentpaymenttransparencyreports.CauConaryStatement

Headlines

•  HeadlinesRelentlessfocusonbusinessfundamentals,includingcostmanagement

• DeliveringonourinvestmentandoperaCngcommitments

• DownstreamandChemicalresultsunderscoreresilienceofintegratedmodel

•  YTDCashflowfromoperaConsandassetsales$27.6B1;posiCvefreecashflowThirdquarterearningsof$4.2billion1IncludesProceedsAssociatedwithAssetSalesof$1.6B

Business Environment

•  BusinessEnvironmentGlobaleconomicgrowthslowedduringthethirdquarterU.S.growthtapered•  ChinaconCnuedtodecelerate,andrecoveryinJapanremainedweak•  Europe’seconomystabilized•  Crudeoilpricesresumeddecline• Globalrefiningmarginsstrengthened•  Chemicalcommodityandspecialtymarginsimproved

3Q15 Financial Results

•  3Q15FinancialResults1IncludesProceedsAssociatedwithAssetSalesof$0.5B

3Q15 Sources and Uses of Funds

•  3Q15SourcesandUsesofFundsCashbalancesdecreasedby$100Minthethirdquarter1Beginningbalanceincludesrestrictedcashof$0.1B•  2IncludesPP&EAddsof($6.4B)andnetadvancesof$0.2B

Total Earnings – 3Q15 vs. 3Q14

•  TotalEarnings–3Q15vs.3Q14Earningsdecreased$3.8BduetolowerUpstreamearnings,parCallyoffsetbystrongerDownstreamresultsandlowercorporatecostsMillionsofDollars

Total Earnings – 3Q15 vs. 2Q15

•  MillionsofDollarsTotalEarnings–3Q15vs.2Q15Earningscomparableto2Q15aslowerUpstreamearningsoffsetstrongerDownstreamresultsandlowercorporatecosts

Earnings – 3Q15 vs. 3Q14

•  Earnings–3Q15vs.3Q14Earningsdown$5.1BduetolowerrealizaCons,partlyoffsetbyfavorablevolume/mixeffectsUpstreamMillionsofDollars

Volumes – 3Q15 vs. 3Q14

•  Volumes–3Q15vs.3Q14UpstreamkoebdVolumesincreased2.3%:Liquids+266kbd,naturalgas-1.1bcfd

Earnings – 3Q15 vs. 2Q15

•  Earnings–3Q15vs.2Q15Earningsdecreased$673M,aslowerliquidsrealizaConswerepartlyoffsetbyfavorableforeignexchangeimpactsandtheabsenceofunfavorabletaxitemsUpstreamMillionsofDollars

Volumes – 3Q15 vs. 2Q15

•  Volumes–3Q15vs.2Q15UpstreamkoebdVolumesdecreased1.5%:Liquids+40kbd,naturalgas-604mcfd

Earnings – 3Q15 vs. 3Q14

•  Earnings–3Q15vs.3Q14Earningsincreased$1.0Bduetostrongerrefiningmargins,parCallyoffsetbyhighermaintenanceDownstreamMillionsofDollars

Earnings – 3Q15 vs. 2Q15

•  Earnings–3Q15vs.2Q15Earningsincreased$527MonstrongermarginsandlowermaintenanceDownstreamMillionsofDollars

Earnings – 3Q15 vs. 3Q14

•  Earnings–3Q15vs.3Q14Earningscomparableto3Q14withstrongermarginsoffsetbyunfavorableforeignexchangeeffectsChemicalMillionsofDollars

Earnings – 3Q15 vs. 2Q15

•  Earnings–3Q15vs.2Q15EarningsflatsequenCallywithstrongermarginsandfavorablesalesmixoffsetbytheabsenceofassetmanagementgainsChemicalMillionsofDollars

Business Fundamentals

•  BusinessFundamentals2RelentlessfocusregardlessofcommoditypricesOperaConalintegrity• Maximizereliability• Costmanagement•  $8billionYTDnetreducConincapitalandcashoperaCngcosts• Upstreamunitcostdown10%•  SuperiorprojectexecuConMarketCostSavings

•  ProjectsUpdateUpstreamDemonstraCngworld-classprojectdevelopmentcapabiliCesErhaFPSO,offshoreNigeria21Majorprojectstart-upssince2012• Added+750KOEBDofworkinginterestproducConcapacity• Achievingstrongreliability• PNGLNGcapacityupto7.3MTA•  Twocapital-efficientprojectscompleted3Q:• Nigeria:ErhaNorthPhase2• Norway:AasgardSubseaCompression• BanyuUripCPFstarCngupbyyearend• 

•  NewOpportunityGrowthUpstreamHighgradingtheresourcebasethroughnewopportunitycapturesGuyana:large3Dseismicunderway• Nigeria:securedtwohigh-potenCalblocks• Permian:acquiredinterestin48,000acres3DSeismicacquisiConoffshoreGuyana

•  SelecCveInvestmentsDownstreamGrowinghigher-valueproducts•  Roqerdamhydrocracker• Highperformancelubricantbasestocksandultra-lowsulfurdiesel•  Integratedinvestmentatadvantagedsite•  2018start-up

•  SingaporesyntheCclubricantoilblendingplant• ManufactureMobil1inAsia•  Supportsgrowingdemand•  2017start-upRoqerdamRefineryisaworld-scale,integratedcomplex

YTD Sources and Uses of Cash

•  YTDSourcesandUsesofCashFinancialflexibilitytoinvestthroughcycle• Dividendspershareup5.8%vs.3Q14• Buybackprogrammaintained•  $7.4billionYTDFreeCashFlow1IntegratedcashflowssupportdistribuConsandfundinvestments1CalculatedasCashFlowfromOperaConsandAssetSales($27.6B)lessPP&EAdds/Investments•  andAdvances($20.2B)•  2IncludesPP&EAddsof($20.4B)andnetadvancesof$0.2B2$B

Summary

•  DeliveringonourinvestmentandoperaCngcommitmentsSummaryHighlightsCapturingDownstream&Chemicalvalue•  SuperiorprojectexecuConcapabiliCes• ConCnuedinvestmentandcostdiscipline• PosiCvefreecashflow1IncludesProceedsAssociatedwithAssetSalesof$1.6B•  2CalculatedasCashFlowfromOperaConsandAssetSales($27.6B)lessPP&EAdds/Investmentsand•  Advances($20.2B)

•  QuesCons