David Rosenthal Vice President Investor Relations & Secretary

Transcription

1 First Quarter 2011 Earnings Conference Analyst Call and Webcast Meeting April 28, 2011 David Rosenthal Vice President Investor Relations & Secretary 1

2 Cautionary Statement Forward-Looking Statements. Outlooks, projections, 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 demand growth and mix; ExxonMobil s own production growth and mix; the amount and mix of capital expenditures; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; revenue enhancements and cost efficiencies; industry margins; margin enhancements and integration benefits; product mix; and the impact of technology could differ materially due to a number of factors. These include changes in long-term oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors; 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. See also Item 1A of ExxonMobil s 2010 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, recoverable resources, and similar terms include quantities of oil and gas that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. For definitions of, and information regarding, reserves, return on average capital employed, normalized earnings, 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. 2

3 Business Environment Global economy and energy markets influenced by political unrest and economic uncertainty Global economic recovery impacted by sovereign debt concerns, inflationary pressures, and Japan Energy markets experiencing uncertainty with political unrest Significantly higher oil prices; increased natural gas prices outside U.S. Improved refining margins in the U.S. and Asia Pacific Stronger chemical margins, especially commodities in U.S. and Europe 3

4 1Q11 Financial Results Delivered superior results and demonstrated financial capacity by funding investment plan and distributing cash to shareholders Earnings (effective tax rate of 47%) Earnings Per Share Diluted (dollars) Shareholder Distributions CAPEX Cash Flow from Operations Cash Balance Debt $10.7 $2.14 $7.2 $7.8 $18.2 $13.2 $15.9 Billions of dollars unless specified otherwise Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. Note: cash flow from operations includes asset sales of $1.3B. Note: cash balance includes restricted cash of $401M. 4

5 1Q11 Sources and Uses of Cash Superior cash generation provides ability to fund robust projects, return cash to shareholders, and maintain financial flexibility Beginning Cash Balance Earnings Depreciation Working Capital / Other Asset Sales Additions to PP&E Shareholder Distributions Additional Financing / Other Ending Cash Balance $Billion $8.5 $10.7 $3.8 $2.4 $1.3 ($7.1) ($7.2) $0.8 $13.2 $18.2B Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. Note: beginning and ending cash balances include restricted cash of $628M and $401M, respectively. 5

6 Total Earnings 1Q11 vs. 1Q10 First quarter 2011 earnings increased $4.4B reflecting strong results across all business lines 2,861 Millions of Dollars 1, ,650 6,300 1Q10 U/S D/S Chem C&F 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 6

7 Total Earnings 1Q11 vs. 4Q10 Sequential earnings remain robust, increasing $1.4B, reflecting stronger prices and chemical margins 1,195 Millions of Dollars (51) 449 (193) 10,650 9,250 4Q10 U/S D/S Chem C&F 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 7

8 Upstream Iraq West Qurna I Achieved improved production target, increasing volumes ten percent above initial field production Current production about 320 kbd gross Day-to-day operations transferred to Field Operating Division Staffed by ExxonMobil and South Oil Company Three rigs currently drilling West Qurna Phase I Drilling Rig 8

9 Upstream Deepwater Hadrian-5 exploration well commenced drilling; awarded 3 new production licenses in Norway U.S. Gulf of Mexico ExxonMobil commenced drilling within several days of receiving permit approval Evaluation of Hadrian North oil complex is ongoing MWCC initial system operational; membership has grown to ten Maersk Developer Drilling Rig Norway Awarded 3 new production licenses 9

10 Upstream Indonesia Confirming resource potential with conventional by-the-bit oil discovery and coal bed methane evaluation drilling Kedung Keris well discovered second onshore oil field on Cepu block Close proximity to Banyu Urip development Evaluating Barito Basin coal bed methane gas resource Rig drilling Kedung Keris well 10

11 Upstream Earnings 1Q11 vs. 1Q10 Earnings increased $2.9B with stronger crude oil and natural gas realizations. Upstream earnings per barrel were $20. Millions of Dollars 2,550 (160) 470 8,675 5,814 1Q10 Realization Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 11

12 Upstream Volumes 1Q11 vs. 1Q10 Volumes increased 10.5%: liquids -15 KBD, natural gas +2,836 MCFD 4,362 KOEBD (65) 29 (35) 529 4,820 1Q10 Entitlements Quotas Divestments Net Growth 1Q11 12

13 Upstream Earnings 1Q11 vs. 4Q10 Sequential earnings increased $1.2B driven primarily by stronger crude oil and natural gas realizations Millions of Dollars 1,310 (520) 410 8,675 7,480 4Q10 Realization Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 13

14 Upstream Volumes 1Q11 vs. 4Q10 Volumes decreased 3%: liquids -127 KBD, natural gas -127 MCFD 4,968 KOEBD (91) 16 (25) (48) 4,820 4Q10 Entitlements Quotas Divestments Net Growth 1Q11 14

15 Downstream Mobil 1 Technology Partnership New agreement with Vodafone McLaren Mercedes maintains longest, continuous oil company sponsorship of a Grand Prix race team New Photo Needed Continue to provide Mobil 1 lubricant technology and engineering to Formula 1 racing Enhance Mobil 1 leading-edge performance and apply learnings from use in extreme conditions Supply a range of specialized lubricant products for use at the McLaren Technology Center 15

16 Downstream Earnings 1Q11 vs. 1Q10 Earnings increased $1.1B with improved industry refining margins, refining optimization, and favorable foreign exchange effects Millions of Dollars 240 1, Q10 Margin Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 16

17 Downstream Earnings 1Q11 vs. 4Q10 Sequential earnings were essentially flat as higher industry refining margins were offset by higher turnaround maintenance effects 1,150 Millions of Dollars 160 (270) 60 1,099 4Q10 Margin Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 17

18 Chemical Supporting Asia Growth Opened world-class Shanghai Technology Center (STC), supporting the growing needs of ExxonMobil customers New 220,000 ft 2 facility equipped with 200+ processing machines and analytical instruments STC has 22 development-scale and 16 commercial-scale product processing machines Shanghai Technology Center China is largest petrochemical market, representing 1/3 of global growth through

19 Chemical Saudi Elastomers Project Continuing long history of investment in Saudi Arabia and building on strong relationship with SABIC JV elastomers project has moved into front end engineering and design Project will supply 400 KTA of synthetic rubber, thermoplastic specialty polymers, and carbon black to international markets KEMYA JV Chemical Plant Jubail Industrial City selected as project site 19

20 Chemical Earnings 1Q11 vs. 1Q10 Record quarterly earnings of $1.5B, an increase of $267M from 1Q10, driven by strong chemicals margins and feedstock advantage 1,249 Millions of Dollars (200) 1,516 1Q10 Margin Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 20

21 Chemical Earnings 1Q11 vs. 4Q10 Earnings increased $449M due to higher commodity chemicals margins and lower planned maintenance expense Millions of Dollars ,516 1,067 4Q10 Margin Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 21

22 Integration Downstream & Chemical Earnings 1Q11 vs. 1Q10 Strong Downstream and Chemical earnings, reflecting competitive advantages and strength of integrated business model Millions of Dollars , ,286 1Q10 Margin Vol/Mix Other 1Q11 Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. 22

23 Summary ExxonMobil s strong financial and operating performance reflects value of integrated business model and competitive advantages Earnings Upstream Volume Growth Shareholder Distributions Cash Flow from Ops $10.7 Billion +10.5% growth (vs. 1Q10) $7.2 Billion $18.2 Billion ExxonMobil possesses unique competitive advantages that create long-term shareholder value Operational excellence Disciplined investing Unparalleled portfolio quality High-impact technologies Global integration Note: earnings exclude special items, if applicable. See IR supplement for Non-GAAP reconciliations. Note: cash flow from operations includes asset sales of $1.3B. 23

24 Questions and Answers Questions and Answers 24