Fourth Quarter 2013 Earnings Call David Rosenthal Vice President Investor Relations & Secretary January 30, 2014

Transcription

1 Fourth Quarter 2013 Earnings Call David Rosenthal Vice President Investor Relations & Secretary January 30, 2014

2 Cautionary Statement Forward-Looking Statements. Outlooks, expectations, 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 volume/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; drilling programs; product sales and mix; dividend and share purchase levels; cash and debt balances; corporate and financing expenses; 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; the occurrence and duration of economic recessions; reservoir performance; the outcome of exploration; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation, including tax and environmental regulations; the outcome of commercial negotiations; opportunities for investments or divestments that may arise; the actions of competitors and customers; unexpected technological developments; 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 2012 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, barrels of oil, volumes of gas and liquids, and similar terms include quantities 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. The term project as used in this presentation can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. 2

3 Business Environment Global economic growth continued at a modest pace in the 4 th quarter Moderate U.S. economic growth sustained China s growth rate stabilized European economic recovery remained sluggish WTI prices declined, widening discount to Brent Flat Henry Hub gas prices Global industry refining margins strengthened Weaker chemical commodity margins 3

4 4Q13 Financial Results Earnings 8.4 Earnings Per Share Diluted (dollars) 1.91 Shareholder Distributions 5.8 CAPEX 9.9 Cash Flow from Ops and Asset Sales Cash Debt 22.7 Billions of dollars unless specified otherwise 4 1 Includes $1.8B associated with asset sales. 2 Includes restricted cash of $0.3B.

5 4Q13 Sources and Uses of Funds Cash decreased by $0.8B in the fourth quarter Beginning Cash 5.7 Earnings 8.4 Depreciation 4.4 Working Capital / Other (2.6) 12.0 Proceeds Associated with Asset Sales 1.8 Additions to PP&E (8.4) Shareholder Distributions (5.8) Additional Financing / Investing 1.4 Ending Cash 4.9 Billions of dollars unless specified otherwise Note: beginning and ending balances include restricted cash of $0.4B and $0.3B, respectively. 5

6 Total Earnings 4Q13 vs. 4Q12 Earnings decreased by $1.6B as lower earnings across all business segments were partially offset by reduced corporate and financing expenses Millions of Dollars 9,950 (976) (852) (48) 276 8,350 4Q12 U/S D/S Chem C&F 4Q13 6

7 Total Earnings 4Q13 vs. 3Q13 Earnings increased $480M as higher Upstream and Downstream earnings, and lower corporate and financing expenses were partly offset by lower Chemical earnings Millions of Dollars 7, (115) 198 8,350 3Q13 U/S D/S Chem C&F 4Q13 7

8 Upstream Earnings 4Q13 vs. 4Q12 Earnings decreased $976M primarily driven by unfavorable volume mix effects and higher costs Millions of Dollars 7, (550) (490) 6,786 4Q12 Realization Vol/Mix Other 4Q13 8

9 Upstream Volumes 4Q13 vs. 4Q12 Volumes decreased 1.8%: liquids +32 kbd, natural gas -654 mcfd koebd 4,293 (42) 0 (22) (13) 4,216 Price/Spend: (39) Net Interest: (3) 4Q12 Entitlements Quotas Divestments Net Growth 4Q13 9

10 Upstream Earnings 4Q13 vs. 3Q13 Earnings increased $73M mainly due to higher gains on asset sales and increased volumes mostly offset by lower liquids realizations Millions of Dollars 6,713 (430) ,786 3Q13 Realization Vol/Mix Other 4Q13 10

11 Upstream Volumes 4Q13 vs. 3Q13 Volumes increased 4.9%: liquids +36 kbd, natural gas +973 mcfd koebd 4, (6) 143 4,216 Price/Spend: 61 Net Interest: - 3Q13 Entitlements Quotas Divestments Net Growth 4Q13 11

12 Downstream Earnings 4Q13 vs. 4Q12 Earnings decreased by $852M mainly due to lower non-u.s. refining margins 1,768 (680) Millions of Dollars 110 (280) 916 4Q12 Margin Vol/Mix Other 4Q13 12

13 Downstream Earnings 4Q13 vs. 3Q13 Earnings increased $324M mainly due to refining optimization activities Millions of Dollars 330 (120) Q13 Margin Vol/Mix Other 4Q13 13

14 Chemical Earnings 4Q13 vs. 4Q12 Earnings decreased $48M due to lower specialty product margins Millions of Dollars 958 (70) 50 (30) 910 4Q12 Margin Vol/Mix Other 4Q13 14

15 Chemical Earnings 4Q13 vs. 3Q13 Earnings decreased $115M mainly due to lower margins in Europe Millions of Dollars 1,025 (95) 0 (20) 910 3Q13 Margin Vol/Mix Other 4Q13 15

16 Upstream Major Projects Progressing major project start-ups to deliver profitable growth 1st PNG LNG deliveries 3Q 2014 Kearl expansion 70% complete Progressing Upper Zakum expansion towards 750 kbd Artificial islands near complete Improved fiscals Upper Zakum West Qurna I reached 500 gross kbd Reduced participation; remain operator 16

17 Upstream Exploration Continuing active exploration program Tanzania Block 2 = ExxonMobil Interest Mronge-1 5 th significant gas discovery TCF of gas in place Additional exploration drilling in 2014 Block 2 Block 2 Mronge Zafarani Tangawizi Lavani Russia Western Siberia Joint Venture completed for Tight Oil Pilot Project Analyzing data from 2013 activity Finalizing horizontal well locations Tanzania Argentina Vaca Muerta Drilling 2 nd operated well On-going drilling and testing operations to evaluate high potential acreage 17

18 Downstream Investments Strengthening the Downstream portfolio Expanded Low-Sulfur Diesel production capacity at Singapore Refinery 62 KBD Hydrotreater commissioned in December Commissioned Augusta Refinery Cogeneration Plant in Italy 6% reduction in site energy cost Expanding heavy crude-by-rail logistics from Western Canada Rail terminal capacity up to 250 KBD Singapore Diesel Hydrotreater 18

19 2013 Financial Results Earnings 32.6 Earnings Per Share Diluted (dollars) 7.37 Shareholder Distributions 25.9 CAPEX 42.5 Cash Flow from Ops and Asset Sales Cash Debt 22.7 Billions of dollars unless specified otherwise 19 1 Includes $2.7B associated with asset sales. 2 Includes restricted cash of $0.3B.

20 2013 Sources and Uses of Funds Cash decreased by $5B in 2013 Beginning Cash 9.9 Earnings 32.6 Depreciation 17.2 Working Capital / Other (4.9) 47.6 Proceeds Associated with Asset Sales 2.7 Additions to PP&E (33.7) Shareholder Distributions (25.9) Additional Financing / Investing 7.0 Ending Cash 4.9 Billions of dollars unless specified otherwise Note: beginning and ending balances include restricted cash of $0.4B and $0.3B, respectively. 20

21 Total Earnings 2013 vs Earnings decreased by $12.3B, primarily due to lower net gains from divestments of $8.6B Millions of Dollars 44,880 (3,054) (9,741) (70) ,580 Earnings impact from asset divestments 2012 U/S D/S Chem C&F

22 Upstream Earnings 2013 vs Earnings decreased $3.1B mainly due to unfavorable volume mix effects, higher costs, and lower gains from asset sales Millions of Dollars 29, (910) (2,530) 26,841 Earnings impact from asset divestments 2012 Realization Vol/Mix Other

23 Upstream Volumes 2013 vs Volumes decreased 1.5%: liquids +17 kbd, natural gas -486 mcfd koebd 4,239 (47) 3 (26) 6 4,175 Price/Spend: (9) Net Interest: (38) 2012 Entitlements Quotas Divestments Net Growth

24 Upstream Volumes 2013 Actual vs. March Outlook Total production volumes in line with target 4,194 Analyst Mtg. $112 Brent 43 (58) koebd 0 (4) 4,175 Actual $109 Brent Operational performance better than expected Strong uptime Increased U.S. liquids production Higher European natural gas demand Major project performance below outlook Slower Kearl ramp-up Kashagan pipeline 24

25 Downstream Earnings 2013 vs Earnings decreased by $9.7B due to the absence of gains from the Japan restructuring and other divestments, and lower refining margins Millions of Dollars 13,190 (2,870) (310) (6,560) 3,449 Earnings impact from asset divestments 2012 Margin Vol/Mix Other

26 Chemical Earnings 2013 vs Earnings decreased by $70M due to the absence of gains from the Japan restructuring, partly offset by higher commodity margins Millions of Dollars 3, (630) 3,828 Earnings impact from asset divestments 2012 Margin Vol/Mix Other

27 Summary ExxonMobil s strong financial and operating performance continues to create long-term shareholder value Billions 2013 Earnings $32.6 Cash Flow from Ops and Asset Sales* $47.6 Capex $42.5 Shareholder Distributions $25.9 Highlights Achieved production target Progressed attractive opportunities Met CAPEX outlook Delivered strong cash flow Maintained robust shareholder distributions * Includes $2.7B associated with asset sales 27

28 Questions and Answers