What changed in this filing

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Item 1. Financial Statements

2022-05-04 compared with 2021-11-03 · 57 added, 182 removed, 363 unchanged (40% of the section changed)

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

Revenues and other income

7 unchanged sentences

Selling, general and administrative expenses 2,409 2,428

Depreciation and depletion 4,990 4,983 14,946 15,718

Depreciation and depletion (including impairments) 8,883 5,004

Exploration expenses, including dry holes 173 164

9 unchanged sentences

Earnings (loss) per common share (dollars)

1.57 ( 0.15 ) 3.31 ( 0.55 )

Earnings (loss) per common share - assuming dilution (dollars)

1.57 ( 0.15 ) 3.31 ( 0.55 )

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

Net income (loss) including noncontrolling interests 5,750 2,796

1 unchanged sentence

Foreign exchange translation adjustment 741 149

Adjustment for foreign exchange translation (gain)/loss

included in net income — 14 — 14

Postretirement benefits reserves adjustment (excluding amortization) 105 168

8 unchanged sentences

(millions of dollars)

September 30,

2022 December 31,

28 unchanged sentences

Common stock held in treasury

( 3,785 million shares at September 30, 2021 and

( 3,806 million shares at March 31, 2022 and

3,780 million shares at December 31, 2021)

8 unchanged sentences

(millions of dollars)

Nine Months Ended

September 30,

Three Months Ended

Cash flows from operating activities

Net income (loss) including noncontrolling interests 5,750 2,796

Depreciation and depletion 14,946 15,718

Depreciation and depletion (including impairments) 8,883 5,004

Changes in operational working capital, excluding cash and debt 1,086 1,953

8 unchanged sentences

Cash flows from financing activities

Additions to long-term debt 46 23,186

Reductions in long-term debt ( 4 ) ( 4 )

Additions to short-term debt

12,197 28,839

Reductions in short-term debt

1 unchanged sentence

Additions/(reductions) in debt with three months or less maturity 1,366 1,003

Contingent consideration payments ( 28 ) ( 21 )

Cash dividends to ExxonMobil shareholders ( 3,760 ) ( 3,720 )

16 unchanged sentences

Finance leases 656 —

(1) Includes commercial paper with a maturity greater than three months.

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

4 unchanged sentences

Common Stock Earnings Reinvested Accumulated Other Comprehensive Income Common Stock Held in Treasury ExxonMobil Share of Equity Non-controlling Interests Total Equity

Balance as of June 30, 2020 15,812 412,124 ( 21,617 ) ( 226,136 ) 180,183 6,970 187,153

Amortization of stock-based awards 187 — — — 187 — 187

Other ( 2 ) — — — ( 2 ) 194 192

Net income (loss) for the period — ( 680 ) — — ( 680 ) ( 29 ) ( 709 )

Dividends - common shares — ( 3,716 ) — — ( 3,716 ) ( 44 ) ( 3,760 )

Other comprehensive income (loss) — — 1,428 — 1,428 121 1,549

Balance as of September 30, 2020 15,997 407,728 ( 20,189 ) ( 226,136 ) 177,400 7,212 184,612

Balance as of June 30, 2021 16,006 383,922 ( 15,586 ) ( 225,771 ) 158,571 6,985 165,556

Amortization of stock-based awards 99 — — — 99 — 99

Other ( 1 ) — — — ( 1 ) 4 3

Net income (loss) for the period — 6,750 — — 6,750 192 6,942

Dividends - common shares — ( 3,720 ) — — ( 3,720 ) ( 54 ) ( 3,774 )

Other comprehensive income (loss) — — ( 1,110 ) — ( 1,110 ) ( 135 ) ( 1,245 )

Acquisitions, at cost — — — — — ( 75 ) ( 75 )

Balance as of September 30, 2021 16,104 386,952 ( 16,696 ) ( 225,771 ) 160,589 6,917 167,506

Three Months Ended September 30, 2021 Three Months Ended September 30, 2020

Common Stock Share Activity Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

(millions of shares) (millions of shares)

Balance as of June 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Acquisitions — — — — — —

Dispositions — — — — — —

Balance as of September 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(millions of dollars)

ExxonMobil Share of Equity

Common Stock Earnings Reinvested Accumulated Other Comprehensive Income Common Stock Held in Treasury ExxonMobil Share of Equity Non-controlling Interests Total Equity

Balance as of December 31, 2020 15,688 383,943 ( 16,705 ) ( 225,776 ) 157,150 6,980 164,130

3 unchanged sentences

Dividends - common shares — ( 3,720 ) — — ( 3,720 ) ( 52 ) ( 3,772 )

Cumulative effect of accounting

— ( 93 ) — — ( 93 ) ( 1 ) ( 94 )

Other comprehensive income (loss) — — 615 — 615 80 695

1 unchanged sentence

Dispositions — — — 4 4 — 4

Balance as of September 30, 2020 15,997 407,728 ( 20,189 ) ( 226,136 ) 177,400 7,212 184,612

Balance as of March 31, 2021 15,884 382,953 ( 16,090 ) ( 225,773 ) 156,974 7,127 164,101

Balance as of December 31, 2021 15,746 392,059 ( 13,764 ) ( 225,464 ) 168,577 7,106 175,683

6 unchanged sentences

Dispositions — — — 2 2 — 2

Balance as of September 30, 2021 16,104 386,952 ( 16,696 ) ( 225,771 ) 160,589 6,917 167,506

Nine Months Ended September 30, 2021 Nine Months Ended September 30, 2020

Balance as of March 31, 2022 15,879 393,779 ( 12,914 ) ( 227,529 ) 169,215 7,311 176,526

Three Months Ended March 31, 2022 Three Months Ended March 31, 2021

Common Stock Share Activity Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

3 unchanged sentences

Dispositions — — — — 1 1

Balance as of September 30 8,019 ( 3,785 ) 4,234 8,019 ( 3,791 ) 4,228

Balance as of March 31 8,019 ( 3,806 ) 4,213 8,019 ( 3,785 ) 4,234

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

7 unchanged sentences

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

Miscellaneous Financial Information

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO).

The Corporation's results for the third quarter of 2020 included a before-tax credit of $ 153 million, as rising prices reduced the charge against the book value of inventories.

This adjustment, which is included in "Crude oil and product purchases", together with a market adjustment to inventory for equity companies included in "Income from equity affiliates", resulted in a $ 113 million after-tax credit to earnings (excluding noncontrolling interests) in the third quarter of 2020.

The Corporation recognized impairment charges of $ 262 million and $ 1,036 million in the nine months ended, September 30, 2021 and 2020, respectively.

The 2021 impairments included $ 20 million for exploratory well costs that had been suspended more than one year.

The 2020 impairments included goodwill impairments of $ 611 million and other impairments of $ 425 million, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter.

Impairment charges generally are included in “Depreciation and depletion” or "Other income".

In early March, in response to Russia’s military action in Ukraine, the Corporation announced that it plans to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and develop steps to exit the venture.

In light of this, and given the considerable uncertainties surrounding the ongoing operation and future cash-flow generating capability of Sakhalin, an impairment assessment was required, and management determined that the carrying value of the asset group was not recoverable.

As a result, the Corporation’s first quarter earnings include after-tax charges of $ 3.4 billion largely representing the impairment of its operations related to Sakhalin.

On a before-tax basis, the charges amounted to $ 4.6 billion, substantially all of which is reflected in the line captioned “Depreciation and depletion (including impairments)” on the Condensed Consolidated Statement of Income.

The Corporation's exit from the project would result in quantities estimated at 150 million oil-equivalent barrels no longer qualifying as proved reserves, which represented less than one percent of the Corporation's 18.5 billion oil-equivalent barrels of proved reserves at year-end 2021.

The assessment of fair value required the use of Level 3 inputs and assumptions that are based on the views of a likely market participant.

As of March 31, the pool of market participants for Russia-based upstream assets was assessed as extremely limited.

In arriving at a fair value for its interest in Sakhalin, the Corporation considered, among other things, the current state of sanctions, the regulatory environment within Russia, the statements and actions of potential market participants, and the range and risks of future cash flows that a market participant might consider.

Given these significant uncertainties, the likelihood of a third-party market participant agreeing to engage in a transaction for the Corporation’s interest in Sakhalin, as of March 31, was judged to be remote.

Litigation and Other Contingencies

9 unchanged sentences

Other Contingencies.

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2021, for guarantees relating to notes, loans and performance under contracts.

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2022, for guarantees relating to notes, loans and performance under contracts.

Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure.

These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

As of September 30, 2021

March 31, 2022

Equity Company

14 unchanged sentences

Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

In accordance with a Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project.

The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project.

ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.

ExxonMobil collected awards of $ 908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $ 260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID).

An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($ 1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project.

ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated.

Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria.

ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC.

The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC.

In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act.

On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $ 1.8 billion plus $ 234 million in accrued interest.

The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside.

On May 22, 2012, the court set aside the award.

The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial Division.

On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award.

On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria.

In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary.

Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016.

In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction.

NNPC moved to dismiss the lawsuit.

On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award.

The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019.

At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated.

However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.

Other Comprehensive Income Information

7 unchanged sentences

from accumulated other comprehensive income (1)

( 1,125 ) ( 172 ) ( 1,297 )

Amounts reclassified from accumulated other

1 unchanged sentence

Total change in accumulated other comprehensive income 88 527 615

Balance as of September 30, 2020 ( 13,557 ) ( 6,632 ) ( 20,189 )

Balance as of March 31, 2021 ( 10,526 ) ( 5,564 ) ( 16,090 )

Balance as of December 31, 2021 ( 11,499 ) ( 2,265 ) ( 13,764 )

1 unchanged sentence

from accumulated other comprehensive income (1)

( 1,041 ) 289 ( 752 )

Amounts reclassified from accumulated other

1 unchanged sentence

Total change in accumulated other comprehensive income 661 189 850

Balance as of September 30, 2021 ( 11,655 ) ( 5,041 ) ( 16,696 )

Balance as of March 31, 2022 ( 10,838 ) ( 2,076 ) ( 12,914 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 79 million and $ 191 million in 2022 and 2021, respectively.

2 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

Foreign exchange translation gain/(loss) included in net income

(Statement of Income line:

Other income) — ( 14 ) — ( 14 )

(millions of dollars)

Amortization and settlement of postretirement benefits reserves

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

(millions of dollars)

Foreign exchange translation adjustment ( 22 ) ( 53 )

8 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

Earnings per common share

Net income (loss) attributable to ExxonMobil (millions of dollars)

6,750 ( 680 ) 14,170 ( 2,370 )

Weighted average number of common shares outstanding (millions of shares)

4,276 4,271 4,275 4,270

Earnings (loss) per common share (dollars) (1)

1.57 ( 0.15 ) 3.31 ( 0.55 )

Dividends paid per common share (dollars)

0.87 0.87 2.61 2.61

(1) The calculation of earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

1 unchanged sentence

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

(millions of dollars)

Components of net benefit cost

3 unchanged sentences

Expected return on plan assets ( 140 ) ( 180 )

Amortization of actuarial loss/(gain) and prior service cost 57 79 167 237

Amortization of actuarial loss/(gain) 39 61

Amortization of prior service cost ( 7 ) ( 6 )

Net pension enhancement and curtailment/settlement cost 37 298

4 unchanged sentences

Expected return on plan assets ( 213 ) ( 258 )

Amortization of actuarial loss/(gain) and prior service cost 118 124 362 358

Amortization of actuarial loss/(gain) 47 108

Amortization of prior service cost 12 15

Net pension enhancement and curtailment/settlement cost — 12

4 unchanged sentences

Expected return on plan assets ( 3 ) ( 5 )

Amortization of actuarial loss/(gain) and prior service cost 9 13 26 39

Amortization of actuarial loss/(gain) 3 19

Amortization of prior service cost ( 11 ) ( 11 )

Net benefit cost 84 108

1 unchanged sentence

Financial Instruments.

The estimated fair value of financial instruments at September 30, 2021, and December 31, 2020, and the related hierarchy level for the fair value measurement was as follows:

At September 30, 2021

The estimated fair value of financial instruments at March 31, 2022 and December 31, 2021, and the related hierarchy level for the fair value measurement was as follows:

March 31, 2022

(millions of dollars)

22 unchanged sentences

— — 886 886 — — 53 939

At December 31, 2020

December 31, 2021

(millions of dollars)

36 unchanged sentences

Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At September 30, 2021, and December 31, 2020, respectively, the Corporation had $ 511 million and $ 504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

At March 31, 2022 and December 31, 2021, respectively, the Corporation had $ 1,347 million and $ 641 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries.

Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income.

As of September 30, 2021, the Corporation has designated $ 5.2 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

As of March 31, 2022, the Corporation has designated $ 5.0 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $ 10.6 billion and undrawn long-term committed lines of credit of $ 0.6 billion as of third quarter 2021.

The Corporation had undrawn short-term committed lines of credit of $ 10.7 billion and undrawn long-term committed lines of credit of $ 0.6 billion as of first quarter 2022.

Derivative Instruments.

The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates.

In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and for trading purposes.

In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading.

Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of September 30, 2021, and December 31, 2020, or results of operations for the periods ended September 30, 2021, and 2020.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2022 and December 31, 2021, or results of operations for the periods ended March 31, 2022 and 2021.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties.

The Corporation maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments at September 30, 2021, and December 31, 2020, was as follows:

September 30, December 31,

The net notional long/(short) position of derivative instruments at March 31, 2022 and December 31, 2021, was as follows:

March 31, December 31,

Crude oil (barrels) 91 82

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

(millions of dollars) (millions of dollars)

(millions of dollars)

Sales and other operating revenue ( 2,535 ) ( 512 )

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2021 2020 2021 2020

Earnings (Loss) After Income Tax (millions of dollars) (millions of dollars)

Earnings (Loss) After Income Tax (millions of dollars)

United States 2,376 363

3,082 298 7,795 1,084

United States 685 ( 113 )

1 unchanged sentence

United States 819 715

957 304 2,695 456

Corporate and Financing (1)

( 694 ) ( 849 )

Corporate total 5,480 2,730

(1) Results for 2022 include charges of $ 3.3 billion in non-U.S.

Upstream and $ 0.1 billion in Corporate and Financing associated with the Corporation's interest in Sakhalin-1.

(See Note 2 to Condensed Consolidated Financial Statements)

Sales and Other Operating Revenue

United States 2,656 1,885

2,295 2,015 9,181 6,604

United States 25,356 16,078

1 unchanged sentence

United States 3,982 3,091

5,473 3,684 15,834 10,574

Corporate and Financing 7 ( 96 )

2 unchanged sentences

United States 6,191 3,323

9,371 5,132 23,935 14,371

United States 8,261 3,953

7,176 3,334 18,062 11,210

United States 2,863 1,950

1,635 895 4,208 2,866

Corporate and Financing 57 57

Three Months Ended

September 30, Nine Months Ended

September 30,

Sales and Other Operating Revenue 2022 2021

(millions of dollars) (millions of dollars)

(millions of dollars)

United States 31,994 21,054

3 unchanged sentences

revenue sources include:

United Kingdom 7,548 2,943

Canada 6,995 4,258

Singapore 3,678 2,400 10,628 6,883

France 4,356 2,782

United Kingdom 3,379 2,827 10,137 8,424

Italy 2,808 2,055 7,139 5,241

Singapore 4,322 3,435

Belgium 2,836 1,989

Australia 1,751 1,354 5,499 4,380

Italy 2,836 1,865

(1) Revenue is determined by primary country of operations.

2 unchanged sentences

Divestment Activities

ExxonMobil signed an agreement in the first quarter of 2021 with HitecVision, through its wholly-owned portfolio company NEO Energy, for the sale of most of its non-operated upstream assets in the United Kingdom central and northern North Sea for more than $ 1 billion.

The transaction is expected to close by year-end 2021, subject to standard conditions precedent, including regulatory and third-party approvals.

The agreed sales price is subject to interim period adjustments from the effective date of January 1, 2021, to the closing date, and has an additional upside potential of approximately $ 0.3 billion in contingent payments, based on production levels and commodity prices.

Estimated total cash flow from the divestment will range from $ 0.7 billion to $ 1.2 billion, of which $ 0.7 billion to $ 0.8 billion is expected in 2021 and the remainder in future years.

In the second quarter of 2021, ExxonMobil signed an agreement with Celanese for the sale of its global Santoprene business for $ 1.15 billion, subject to working capital and other adjustments.

The sale includes two thermoplastic elastomers manufacturing sites in Pensacola, Florida and Newport, Wales along with associated assets.

The transaction is expected to close in the fourth quarter of 2021, subject to standard conditions precedent including regulatory approvals.

Estimated total cash flow from the divestment is approximately $ 0.9 billion.

The Corporation expects to recognize a gain at closing for each of these transactions.

Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts, and closing dates.

Following the end of the third quarter, the Corporation executed an agreement to divest certain assets in the U.S.

Unconventional portfolio.

The book value of the assets subject to disposal is approximately $ 0.5 billion and closing is expected by year-end 2021, with proceeds in the range of $ 0.2 billion.

Restructuring Activities

During 2020, ExxonMobil conducted an extensive global review of staffing levels and subsequently commenced targeted workforce reductions within a number of countries to improve efficiency and reduce costs.

The programs, which are expected to be substantially completed by the end of 2021, include both voluntary and involuntary employee separations and reductions in contractors.

During the third quarter of 2021, the Corporation recorded before-tax charges of $ 4 million, consisting primarily of employee separation costs, from workforce reductions in Europe associated with the global review of staffing levels.

These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.

For the first nine months of the year, the recorded before-tax charges associated with the global review of staffing levels were $ 53 million.

The Corporation does not expect any further significant charges related to the previously disclosed workforce reduction programs.

Th is does not include charges related to employee reductions associated with any portfolio changes or other projects.

The following tables summarize the reserves and charges related to the workforce reduction programs associated with the global review of staffing levels, which are recorded in “Accounts payable and accrued liabilities.”

Three Months Ended

September 30, Nine Months Ended

September 30,

(millions of dollars) (millions of dollars)

Beginning Balance 228 403

Additions/adjustments 4 53

Payments made ( 97 ) ( 321 )

Ending Balance 135 135

In February 2022, the Corporation signed an agreement with Seplat Energy Offshore Limited for the sale of Mobil Producing Nigeria Unlimited.

The agreement is subject to certain conditions precedent and government approvals.

If these are attained, the transaction would be expected to close no earlier than mid-year 2022.

The agreed sales price is subject to interim period adjustments from January 1, 2021 to the closing date, and has potential for further adjustments based on commodity prices and production levels.

Assuming a mid-2022 closing date and based on currently available information, the Corporation expects to recognize a loss of approximately $ 500 million when and if the potential divestment ultimately meets held-for-sale criteria under ASC 360, following the resolution of certain conditions precedent noted above.

Following the end of the first quarter, the Corporation executed an agreement for the sale of ExxonMobil Exploration and Production Romania, consisting of certain unproved Upstream assets, to Romgaz S.A.

The transaction is anticipated to close mid-year 2022, and the Corporation expects to recognize a gain on the sale of approximately $ 300 million.

EXXON MOBIL CORPORATION

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements