ExxonMobil Announces Second-Quarter 2024 Results

• Delivered industry-leading second-quarter earnings of $9.2 billion¹, showcasing the differentiated strengths of ExxonMobil’s portfolio and its improved earnings power

• The Pioneer merger, which closed five months faster than similar transactions and fundamentally transforms the Upstream portfolio, contributed $0.5 billion to earnings in the first two months post-closing² with record production, and integration and synergy benefits are exceeding expectations

• Also achieved record production in Guyana and heritage Permian; Upstream total net production grew 15%, or 574,000 oil-equivalent barrels per day, from the first quarter

• Expanded the company’s value proposition by progressing new businesses including furthering carbon capture and storage (CCS) leadership with a new agreement that increased total contracted CO₂ offtake with industrial customers to 5.5 million metric tons per year³, more committed volume than any other company has announced

SPRING, Texas–(BUSINESS WIRE)–Exxon Mobil Corporation (NYSE:XOM):

Results Summary
2Q24	1Q24	Change vs 1Q24	Dollars in millions (except per share data)	YTD 2024	YTD 2023	Change vs YTD 2023
9,240	8,220	+1,020	Earnings (U.S. GAAP)	17,460	19,310	-1,850
9,240	8,220	+1,020	Earnings Excluding Identified Items (non-GAAP)	17,460	19,492	-2,032
2.14	2.06	+0.08	Earnings Per Common Share 4	4.20	4.73	-0.53
2.14	2.06	+0.08	Earnings Excl. Identified Items Per Common Share (non-GAAP) 4	4.20	4.77	-0.57
7,039	5,839	+1,200	Capital and Exploration Expenditures	12,878	12,546	+332

Exxon Mobil Corporation today announced second-quarter 2024 earnings of $9.2 billion, or $2.14 per share assuming dilution. Cash flow from operating activities was $10.6 billion and cash flow from operations excluding working capital movements was $15.2 billion. Shareholder distributions of $9.5 billion included $4.3 billion of dividends and $5.2 billion of share repurchases, consistent with the company’s announced plans.

“We delivered our second-highest 2Q earnings of the past decade as we continue to improve the fundamental earnings power of the company,” said Darren Woods, chairman and chief executive officer.

“We achieved record quarterly production from our low-cost-of-supply Permian and Guyana assets, with the highest oil production since the Exxon and Mobil merger. We also achieved a record in high-value product sales, growing by 10% versus the first half of last year. We closed on our transformative merger with Pioneer in about half the time of similar deals. And we’re continuing to build businesses such as Proxxima^TM, carbon materials and virtually carbon-free hydrogen, with approximately 98% of CO₂ removed, that will create value long into the future.”

1	Second-quarter earnings for the industry peer group are actuals for companies that reported results on or before August 1, 2024, or estimated using Bloomberg consensus as of August 1st. Industry peer group includes BP, Chevron, Shell and TotalEnergies.
2	Pioneer operations contributed $0.5 billion to consolidated earnings post-close (May-June), which excludes $0.2 billion of one-time items related to the acquisition.
3	Based on contracts to move up to 5.5 MTA starting in 2025 subject to additional investment by ExxonMobil and permitting for carbon capture and storage projects.
4	Assuming dilution.

Financial Highlights

• Year-to-date earnings were $17.5 billion versus $19.3 billion in the first half of 2023. Earnings excluding identified items were $17.5 billion compared to $19.5 billion in the same period last year. Earnings decreased as industry refining margins and natural gas prices declined from last year’s historically high levels to trade within the ten-year historical range², while crude prices rose modestly. Strong advantaged volume growth from record Guyana, Pioneer, and heritage Permian assets, high-value products and the Beaumont refinery expansion more than offset lower base volumes from divestments of non-strategic assets and government-mandated curtailments. Structural cost savings partially offset higher expenses from scheduled maintenance, depreciation and support of new businesses and 2025 project start-ups.
• Achieved $10.7 billion of cumulative Structural Cost Savings versus 2019, including an additional $1.0 billion of savings during the year and $0.6 billion during the quarter. The company is on track to deliver cumulative savings totaling $5 billion through the end of 2027 versus 2023.
• Generated strong cash flow from operations of $25.2 billion and free cash flow of $15.0 billion in the first half of the year, including working capital outflows of $2.6 billion driven by higher seasonal cash tax payments. Excluding working capital, cash flow from operations and free cash flow were $27.8 billion and $17.6 billion, respectively. Year-to-date shareholder distributions of $16.3 billion included $8.1 billion of dividends and $8.3 billion of share repurchases. Following the close of the Pioneer transaction, the Corporation increased the annual pace of share repurchases to $20 billion through 2025, assuming reasonable market conditions. The company plans to repurchase over $19 billion of shares in 2024.
• The Corporation declared a third-quarter dividend of $0.95 per share, payable on September 10, 2024, to shareholders of record of Common Stock at the close of business on August 15, 2024.
• The company’s debt-to-capital ratio was 14% and the net-debt-to-capital ratio was 6%³, reflecting a year-to-date debt repayment of $3.9 billion and a period-end cash balance of $26.5 billion.
• Capital and exploration expenditures were $7.0 billion in the second quarter including $0.7 billion from Pioneer, bringing year-to-date expenditures to $12.9 billion. The Corporation anticipates full-year capital and exploration expenditures to be approximately $28 billion, which includes the top end of the previously announced guidance for ExxonMobil of $25 billion, and about $3 billion for 8 months of Pioneer, consistent with their prior guidance.

1	The updated earnings factors introduced in the first quarter of 2024 provide additional visibility into drivers of our business results. The company evaluates these factors periodically to determine if any enhancements may provide helpful insights to the market. See page 9 for definitions of these new factors.
2	10-year range includes 2010-2019, a representative 10-year business cycle which avoids the extreme outliers in both directions that the market experienced in recent years.
3	Net debt is total debt of $43.2 billion less $26.5 billion of cash and cash equivalents excluding restricted cash. Net-debt to-capital ratio is net debt divided by the sum of net debt and total equity of $276.3 billion.

ADVANCING CLIMATE SOLUTIONS

Virtually Carbon-Free Hydrogen

• ExxonMobil and Air Liquide reached an agreement to support the production of virtually carbon-free hydrogen, with approximately 98% of CO₂ removed, and ammonia at ExxonMobil’s planned Baytown, Texas hydrogen facility. The agreement will enable transportation of hydrogen through Air Liquide’s existing pipeline network. Additionally, Air Liquide will build and operate four Large Modular Air separation units (LMAs) to supply 9,000 metric tons of oxygen and up to 6,500 metric tons of nitrogen daily to the facility. The LMAs are expected to primarily use low-carbon electricity to reduce the project’s carbon footprint. The production facility would be the world’s largest planned virtually carbon-free hydrogen project and is expected to produce 1 billion cubic feet of hydrogen daily, and more than 1 million metric tons of ammonia per year while capturing approximately 98% of the associated CO₂ emissions. ExxonMobil aims to help enable the growth of a low-carbon hydrogen market along the U.S. Gulf Coast to assist industrial customers achieve their decarbonization goals.

Lithium

• ExxonMobil has signed a non-binding memorandum of understanding (MOU) with SK On, a global leading electric vehicle (EV) battery developer, that enables a multiyear offtake agreement of up to 100,000 metric tons of Mobil^TM Lithium from the company’s first planned project in Arkansas. SK On plans to use the lithium in its EV battery manufacturing operations in the United States.

Carbon Capture and Storage

• ExxonMobil signed its fourth carbon capture and storage (CCS) agreement with a major industrial customer, bringing the total contracted CO₂ to store for industrial customers up to 5.5 million metric tons per year. The new agreement is the second project with CF Industries, a major fertilizer and ammonia producer. Under the contract, ExxonMobil will transport and store up to 500,000 metric tons of CO₂ per year from CF’s operations in Yazoo City, Mississippi, reducing CO₂ emissions from the site by up to 50%.

Products Supporting a Lower-Emissions Future

• The Proxxima^TM business transforms lower-value gasoline molecules into a high-performance, high-value thermoset resin that can be used in coatings, light-weight construction materials, and advanced composites for cars and trucks – including battery boxes for electric vehicles. Materials made with Proxxima^TM are lighter, stronger, more durable, and produced with significantly fewer GHG emissions than traditional alternatives¹. In March, the company showcased the automotive uses of Proxxima^TM at the world’s leading international composites exhibition in Paris. The company is progressing projects in Texas, with startups anticipated in 2025, that will significantly expand production of Proxxima^TM. The company sees the total potential addressable market for Proxxima^TM at 5 million metric tons and $30 billion dollars by 2030 with demand growing faster than GDP and returns above 15%².
• The Carbon Materials venture transforms the molecular structure of low-value, carbon-rich feeds from the company’s refining processes into high-value products for a range of applications. The company is targeting market segments including carbon fiber, polymer additives, and battery materials with margins of several thousand dollars per ton and growth rates outpacing GDP³.

1	EM estimate calculated based on volumetric displacement of epoxy resin on a cradle-to-gate basis. Source: Comparative Carbon Footprint of Product – ExxonMobil’s Proxima™ Resin System to Alternative Resin Systems, June 2023, prepared by Sphera Solutions, Inc. for ExxonMobil Technology and Engineering Company. The study was confirmed to be conducted according to and in compliance with ISO 14067:2018 by an independent third-party critical review panel. https://www.materia-inc.com/what-do-we-do/our-products/creating-sustainable-solutions/lca-executive-summary
2	Based on internal assessment of demand for products in existing markets. Targeting global markets in both the coatings and composites industries: In coatings the focus is on corrosion protection of vessels (e.g., tanks, ships, and railcars) and insulation (e.g., subsea pipes and equipment) applications. Within composite materials (i.e., materials containing glass or carbon fiber) the focus is on infrastructure, wind energy, and mobility sectors. Examples include replacing steel rebar in flatwork applications, replacing epoxy in wind turbines, and structural support in hydrogen tanks, EV battery casings, and other transportation components.
3	Potential markets for carbon materials include structural composites and energy storage. Market growth based on internal assessment of demand for products in respective markets.

EARNINGS AND VOLUME SUMMARY BY SEGMENT

Upstream
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
		Earnings/(Loss) (U.S. GAAP)
2,430	1,054	United States	3,484	2,552
4,644	4,606	Non-U.S.	9,250	8,482
7,074	5,660	Worldwide	12,734	11,034
		Earnings/(Loss) Excluding Identified Items (non-GAAP)
2,430	1,054	United States	3,484	2,552
4,644	4,606	Non-U.S.	9,250	8,652
7,074	5,660	Worldwide	12,734	11,204
4,358	3,784	Production (koebd)	4,071	3,719

• Upstream year-to-date earnings were $12.7 billion, $1.7 billion higher than the first half of 2023. The prior-year period was negatively impacted by tax-related identified items. Excluding identified items, earnings increased $1.5 billion due to advantaged assets volume growth from record Guyana, heritage Permian and Pioneer production. Year-to-date net production was 4.1 million oil-equivalent barrels per day, an increase of 9%, or 352,000 oil-equivalent barrels per day. Higher crude realizations and structural cost savings offset lower natural gas realizations, higher expenses mainly from depreciation, and lower base volumes due to divestments of non-strategic assets and government-mandated curtailments.
• Second-quarter earnings were $7.1 billion, an increase of $1.4 billion from the first quarter driven by the Pioneer acquisition, record Guyana and heritage Permian production, and structural cost savings. Higher crude realizations and divestment gains more than offset lower gas realizations. Net production in the second quarter was 4.4 million oil-equivalent barrels per day, an increase of 15%, or 574,000 oil-equivalent barrels per day compared to the prior quarter due to advantaged volume growth from Pioneer, Guyana and heritage Permian.
• On May 3, 2024, ExxonMobil completed the acquisition of Pioneer Natural Resources. The company issued 545 million shares of ExxonMobil common stock having a fair value of $63 billion on the acquisition date and assumed $5 billion of debt. The merger of ExxonMobil and Pioneer created the largest, high-return unconventional resource development potential in the world.
• In the quarter, the Company submitted an application to the Guyanese Environmental Protection Agency for the Hammerhead project, the proposed seventh development. Production capacity is expected to be 120,000 to 180,000 barrels per day, with anticipated start-up in 2029, pending Guyanese government approval.

Energy Products
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
		Earnings/(Loss) (U.S. GAAP)
450	836	United States	1,286	3,438
496	540	Non-U.S.	1,036	3,055
946	1,376	Worldwide	2,322	6,493
		Earnings/(Loss) Excluding Identified Items (non-GAAP)
450	836	United States	1,286	3,438
496	540	Non-U.S.	1,036	3,067
946	1,376	Worldwide	2,322	6,505
5,320	5,232	Energy Products Sales (kbd)	5,276	5,469

• Energy Products year-to-date earnings were $2.3 billion, a decrease of $4.2 billion versus the first half of 2023 due to significantly lower industry refining margins which normalized from historically high prior year levels as demand growth was more than met by capacity additions. Earnings improvement from structural cost savings and the advantaged Beaumont refinery expansion project partially offset higher scheduled maintenance impacts and lower volumes from non-core refinery divestments. Unfavorable timing effects, mainly from derivatives mark-to-market impacts, also contributed to the earnings decline.
• Second-quarter earnings totaled $0.9 billion compared to $1.4 billion in the first quarter driven by weaker industry refining margins as additional supply outpaced record demand in the second quarter. Stronger trading and marketing margins, as well as favorable derivatives mark-to-market timing effects provided a partial offset.

Chemical Products
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
		Earnings/(Loss) (U.S. GAAP)
526	504	United States	1,030	810
253	281	Non-U.S.	534	389
779	785	Worldwide	1,564	1,199
		Earnings/(Loss) Excluding Identified Items (non-GAAP)
526	504	United States	1,030	810
253	281	Non-U.S.	534	389
779	785	Worldwide	1,564	1,199
4,873	5,054	Chemical Products Sales (kt)	9,927	9,498

• Chemical Products year-to-date earnings were $1.6 billion, an increase of $365 million versus the first half of 2023 driven by strong performance product sales growth and higher base volumes from modest demand improvement and lower turnaround impacts. Despite weaker global industry margins, overall margins increased as a result of the company’s advantaged North American footprint which benefited from lower feed and energy costs. Structural cost savings provided a partial offset to higher project and maintenance expenses.
• Second-quarter earnings were $779 million compared to $785 million in the first quarter. Stronger margins, high-value product sales growth from record performance product sales and structural cost savings offset higher maintenance impacts and project expenses.

Specialty Products
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
		Earnings/(Loss) (U.S. GAAP)
447	404	United States	851	824
304	357	Non-U.S.	661	621
751	761	Worldwide	1,512	1,445
		Earnings/(Loss) Excluding Identified Items (non-GAAP)
447	404	United States	851	824
304	357	Non-U.S.	661	621
751	761	Worldwide	1,512	1,445
1,933	1,959	Specialty Products Sales (kt)	3,893	3,845

• Specialty Products delivered consistently strong earnings from its portfolio of high-value products. Year-to-date earnings were $1.5 billion, an increase of $67 million compared with the first half of 2023. Improved finished lubes margins and structural cost savings more than offset weaker industry basestock margins and higher new business development expenses. Earnings also benefited from higher volumes across the lubricants value chain, including record first-half Mobil 1^TM sales.
• Second-quarter earnings were $751 million, compared to $761 million in the first quarter. Seasonally higher expenses were mostly offset by favorable tax impacts.

Corporate and Financing
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
(310)	(362)	Earnings/(Loss) (U.S. GAAP)	(672)	(861)
(310)	(362)	Earnings/(Loss) Excluding Identified Items (non-GAAP)	(672)	(861)

• Year-to-date net charges of $672 million decreased $189 million compared to the first half of 2023 mainly due to lower financing costs.
• Corporate and Financing second-quarter net charges of $310 million decreased $52 million versus the first quarter.

CASH FLOW FROM OPERATIONS AND ASSET SALES EXCLUDING WORKING CAPITAL

2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
9,571	8,566	Net income/(loss) including noncontrolling interests	18,137	19,996
5,787	4,812	Depreciation and depletion (includes impairments)	10,599	8,486
(4,616)	2,008	Changes in operational working capital, excluding cash and debt	(2,608)	(3,885)
(182)	(722)	Other	(904)	1,127
10,560	14,664	Cash Flow from Operating Activities (U.S. GAAP)	25,224	25,724
926	703	Proceeds from asset sales and returns of investments	1,629	2,141
11,486	15,367	Cash Flow from Operations and Asset Sales (non-GAAP)	26,853	27,865
4,616	(2,008)	Less: Changes in operational working capital, excluding cash and debt	2,608	3,885
16,102	13,359	Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP)	29,461	31,750
(926)	(703)	Less: Proceeds associated with asset sales and returns of investments	(1,629)	(2,141)
15,176	12,656	Cash Flow from Operations excluding Working Capital (non-GAAP)	27,832	29,609

FREE CASH FLOW1
2Q24	1Q24	Dollars in millions (unless otherwise noted)	YTD 2024	YTD 2023
10,560	14,664	Cash Flow from Operating Activities (U.S. GAAP)	25,224	25,724
(6,235)	(5,074)	Additions to property, plant and equipment	(11,309)	(10,771)
(323)	(421)	Additional investments and advances	(744)	(834)
9	215	Other investing activities including collection of advances	224	183
926	703	Proceeds from asset sales and returns of investments	1,629	2,141
4,937	10,087	Free Cash Flow (non-GAAP)	15,024	16,443
4,616	(2,008)	Less: Changes in operational working capital, excluding cash and debt	2,608	3,885
9,553	8,079	Free Cash Flow excluding Working Capital (non-GAAP)	17,632	20,328
¹ Free Cash Flow definition was updated to exclude cash acquired from mergers and acquisitions which is shown as a separate investing line item in the statement of cash flows. See page 10 for definition.

CALCULATION OF STRUCTURAL COST SAVINGS
Dollars in billions (unless otherwise noted)	Twelve Months Ended December 31,			Six Months Ended June 30,
	2019	2023		2023	2024
Components of Operating Costs
From ExxonMobil’s Consolidated Statement of Income (U.S. GAAP)
Production and manufacturing expenses	36.8	36.9		18.3	18.9
Selling, general and administrative expenses	11.4	9.9		4.8	5.1
Depreciation and depletion (includes impairments)	19.0	20.6		8.5	10.6
Exploration expenses, including dry holes	1.3	0.8		0.3	0.3
Non-service pension and postretirement benefit expense	1.2	0.7		0.3	0.1
Subtotal	69.7	68.9		32.2	34.9
ExxonMobil’s share of equity company expenses (non-GAAP)	9.1	10.5		5.0	4.7
Total Adjusted Operating Costs (non-GAAP)	78.8	79.4		37.2	39.6
Total Adjusted Operating Costs (non-GAAP)	78.8	79.4		37.2	39.6
Less:
Depreciation and depletion (includes impairments)	19.0	20.6		8.5	10.6
Non-service pension and postretirement benefit expense	1.2	0.7		0.3	0.1
Other adjustments (includes equity company depreciation and depletion)	3.6	3.7		1.5	1.7
Total Cash Operating Expenses (Cash Opex) (non-GAAP)	55.0	54.4		26.9	27.2
Energy and production taxes (non-GAAP)	11.0	14.9		7.5	6.8
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP)	44.0	39.5		19.4	20.4
		Change vs 2019			Change vs 2023	Estimated Cumulative vs 2019
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (non-GAAP)		-4.5			+1.0
Market		+3.6			+0.2
Activity/Other		+1.6			+1.8
Structural Cost Savings		-9.7			-1.0	-10.7

This press release also references Structural Cost Savings, which describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures, that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $10.7 billion, which included an additional $1.0 billion in the first six months of 2024. The total change between periods in expenses above will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new business venture development, and early-stage projects. Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels. Structural Cost Savings are stewarded internally to support management’s oversight of spending over time. This measure is useful for investors to understand the Corporation’s efforts to optimize spending through disciplined expense management.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 7:30 a.m. Central Time on August 2, 2024. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Selected Earnings Factor Definitions

Advantaged volume growth. Earnings impact from change in volume/mix from advantaged assets, strategic projects, and high-value products. See frequently used terms on page 11 for definitions of advantaged assets, strategic projects, and high-value products.

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