What changed in this filing

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Item 1. Financial Statements

2022-08-03 compared with 2022-05-04 · 169 added, 124 removed, 296 unchanged (50% of the section changed)

FINANCIAL STATEMENTS

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(millions of dollars)

Three Months Ended

(millions of dollars, unless noted)

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Revenues and other income

19 unchanged sentences

Earnings (loss) per common share (dollars)

4.21 1.10 5.49 1.74

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

4.21 1.10 5.49 1.74

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

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(millions of dollars)

Three Months Ended

(millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Net income (loss) including noncontrolling interests 18,574 4,781 24,324 7,577

8 unchanged sentences

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

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(millions of dollars)

2022 December 31,

(millions of dollars, unless noted)

June 30, 2022 December 31, 2021

Current assets

27 unchanged sentences

Common stock held in treasury

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

( 3,851 million shares at June 30, 2022 and

3,780 million shares at December 31, 2021)

5 unchanged sentences

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

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)

Three Months Ended

Cash flows from operating activities

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(millions of dollars) Six Months Ended June 30,

CASH FLOW FROM OPERATING ACTIVITIES

Net income (loss) including noncontrolling interests 24,324 7,577

3 unchanged sentences

Net cash provided by operating activities 34,751 18,914

Cash flows from investing activities

CASH FLOW FROM INVESTING ACTIVITIES

Additions to property, plant and equipment ( 7,748 ) ( 5,147 )

3 unchanged sentences

Net cash used in investing activities ( 7,009 ) ( 5,071 )

Cash flows from financing activities

CASH FLOW FROM FINANCING ACTIVITIES

Additions to short-term debt

2 unchanged sentences

Additions/(reductions) in debt with three months or less maturity 1,303 1,320

Contingent consideration payments ( 58 ) ( 28 )

Cash dividends to ExxonMobil shareholders ( 7,487 ) ( 7,441 )

17 unchanged sentences

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)

CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

ExxonMobil Share of Equity

(millions of dollars, unless noted)

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

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

Amortization of stock-based awards 126 — — — 126 — 126

5 unchanged sentences

Dispositions — — — 2 2 — 2

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

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

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

Amortization of stock-based awards 143 — — — 143 — 143

5 unchanged sentences

Dispositions — — — 1 1 — 1

Balance as of June 30, 2022 16,018 407,902 ( 15,017 ) ( 231,587 ) 177,316 7,192 184,508

Three Months Ended June 30, 2022 Three Months Ended June 30, 2021

Common Stock Share Activity (millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

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

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

(millions of shares) (millions of shares)

Acquisitions — ( 45 ) ( 45 ) — — —

Dispositions — — — — — —

Balance as of June 30 8,019 ( 3,851 ) 4,168 8,019 ( 3,785 ) 4,234

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

ExxonMobil Share of Equity

(millions of dollars, unless noted)

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

Amortization of stock-based awards 328 — — — 328 — 328

Other ( 10 ) — — — ( 10 ) 86 76

Net income (loss) for the period — 7,420 — — 7,420 157 7,577

Dividends - common shares — ( 7,441 ) — — ( 7,441 ) ( 112 ) ( 7,553 )

Other comprehensive income (loss) — — 1,119 — 1,119 167 1,286

Acquisitions, at cost — — — ( 1 ) ( 1 ) ( 293 ) ( 294 )

Dispositions — — — 6 6 — 6

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

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

Amortization of stock-based awards 281 — — — 281 — 281

Other ( 9 ) — — — ( 9 ) ( 1 ) ( 10 )

Net income (loss) for the period — 23,330 — — 23,330 994 24,324

Dividends - common shares — ( 7,487 ) — — ( 7,487 ) ( 123 ) ( 7,610 )

Other comprehensive income (loss) — — ( 1,253 ) — ( 1,253 ) ( 88 ) ( 1,341 )

Acquisitions, at cost — — — ( 6,126 ) ( 6,126 ) ( 696 ) ( 6,822 )

Dispositions — — — 3 3 — 3

Balance as of June 30, 2022 16,018 407,902 ( 15,017 ) ( 231,587 ) 177,316 7,192 184,508

Six Months Ended June 30, 2022 Six Months Ended June 30, 2021

Common Stock Share Activity (millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

Balance as of December 31 8,019 ( 3,780 ) 4,239 8,019 ( 3,786 ) 4,233

Acquisitions — ( 71 ) ( 71 ) — — —

Dispositions — — — — 1 1

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

Balance as of June 30 8,019 ( 3,851 ) 4,168 8,019 ( 3,785 ) 4,234

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

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

5 unchanged sentences

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

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.

In response to Russia’s military action in Ukraine, the Corporation announced in early 2022 that it plans to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and develop steps to exit the venture.

In light of this, an impairment assessment was conducted, and management determined that the carrying value of the asset group was not recoverable.

As a result, the Corporation’s first quarter earnings included 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 March 31, 2022, for guarantees relating to notes, loans and performance under contracts.

The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 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.

March 31, 2022

Equity Company

June 30, 2022

(millions of dollars) Equity Company

Obligations (1)

Other Third-Party Obligations Total

(millions of dollars)

Debt-related 1,138 144 1,282

8 unchanged sentences

expropriation of property;

cancellation of contract rights and environmental regulations.

cancellation of contract rights;

sanctions and environmental regulations.

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

1 unchanged sentence

ExxonMobil Share of Accumulated Other

Comprehensive Income

Comprehensive Income (millions of dollars)

Cumulative Foreign Exchange Translation Adjustment Postretirement Benefits

Reserves Adjustment Total

(millions of dollars)

Balance as of December 31, 2020 ( 10,614 ) ( 6,091 ) ( 16,705 )

Current period change excluding amounts reclassified

from accumulated other comprehensive income (1)

Amounts reclassified from accumulated other

comprehensive income

Current period change excluding amounts reclassified from accumulated other comprehensive income (1)

Amounts reclassified from accumulated other comprehensive income — 575 575

Total change in accumulated other comprehensive income 425 694 1,119

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

Balance as of June 30, 2021 ( 10,189 ) ( 5,397 ) ( 15,586 )

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

Current period change excluding amounts reclassified

from accumulated other comprehensive income (1)

Amounts reclassified from accumulated other

comprehensive income

Current period change excluding amounts reclassified from accumulated other comprehensive income (1)

( 1,682 ) 245 ( 1,437 )

Amounts reclassified from accumulated other comprehensive income — 184 184

Total change in accumulated other comprehensive income ( 1,682 ) 429 ( 1,253 )

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

Balance as of June 30, 2022 ( 13,181 ) ( 1,836 ) ( 15,017 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 327 million and $ 135 million in 2022 and 2021, respectively.

Amounts Reclassified Out of Accumulated Other

Comprehensive Income - Before-tax Income/(Expense)

Three Months Ended

(millions of dollars)

Amortization and settlement of postretirement benefits reserves

adjustment included in net periodic benefit costs

Comprehensive Income - Before-tax Income/(Expense) (millions of dollars)

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs

(Statement of Income line:

1 unchanged sentence

Income Tax (Expense)/Credit For

Components of Other Comprehensive Income

Three Months Ended

(millions of dollars)

Foreign exchange translation adjustment ( 22 ) ( 53 )

Postretirement benefits reserves adjustment (excluding

amortization)

( 40 ) ( 58 )

Amortization and settlement of postretirement benefits reserves

adjustment included in net periodic benefit costs

Components of Other Comprehensive Income (millions of dollars)

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Foreign exchange translation adjustment ( 68 ) 19 ( 90 ) ( 34 )

Postretirement benefits reserves adjustment (excluding amortization) ( 83 ) 25 ( 123 ) ( 33 )

Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs ( 30 ) ( 65 ) ( 57 ) ( 171 )

Total ( 181 ) ( 21 ) ( 270 ) ( 238 )

Earnings Per Share

Three Months Ended

Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Earnings per common share

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

17,850 4,690 23,330 7,420

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

4,233 4,276 4,248 4,274

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

4.21 1.10 5.49 1.74

Dividends paid per common share (dollars)

0.88 0.87 1.76 1.74

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

Pension and Other Postretirement Benefits

Three Months Ended

(millions of dollars)

(millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Components of net benefit cost

23 unchanged sentences

Financial Instruments and Derivatives

Financial Instruments.

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)

Level 1 Level 2 Level 3 Total Gross Assets

The estimated fair value of financial instruments and derivatives at June 30, 2022 and December 31, 2021, and the related hierarchy level for the fair value measurement was as follows:

June 30, 2022

(millions of dollars) Level 1 Level 2 Level 3 Total Gross Assets

& Liabilities Effect of

Counterparty Netting Effect of

Netting Difference

Fair Value Net

Netting Difference in Carrying Value and Fair Value Net

Derivative assets (1)

6,269 2,935 — 9,204 ( 7,954 ) ( 209 ) — 1,041

Advances to/receivables

from equity companies (2)(6)

Advances to/receivables from equity companies (2)(6)

— 2,511 5,017 7,528 — — 666 8,194

Other long-term

financial assets (3)

Other long-term financial assets (3)

1,166 — 1,017 2,183 — — 188 2,371

3 unchanged sentences

34,229 61 5 34,295 — — 2,935 37,230

Long-term obligations

to equity companies (6)

Long-term obligations to equity companies (6)

— — 2,635 2,635 — — ( 18 ) 2,617

Other long-term

financial liabilities (7)

Other long-term financial liabilities (7)

— — 742 742 — — 51 793

December 31, 2021

(millions of dollars)

Level 1 Level 2 Level 3 Total Gross Assets

(millions of dollars) Level 1 Level 2 Level 3 Total Gross Assets

& Liabilities Effect of

Counterparty Netting Effect of

Netting Difference

Fair Value Net

Netting Difference in Carrying Value and Fair Value Net

Derivative assets (1)

1,422 1,523 — 2,945 ( 1,930 ) ( 28 ) — 987

Advances to/receivables

from equity companies (2)(6)

Advances to/receivables from equity companies (2)(6)

— 3,076 5,373 8,449 — — ( 123 ) 8,326

Other long-term

financial assets (3)

Other long-term financial assets (3)

1,134 — 1,058 2,192 — — 181 2,373

3 unchanged sentences

44,454 88 3 44,545 — — ( 2,878 ) 41,667

Long-term obligations

to equity companies (6)

Long-term obligations to equity companies (6)

— — 3,084 3,084 — — ( 227 ) 2,857

Other long-term

financial liabilities (7)

Other long-term financial liabilities (7)

— — 902 902 — — 58 960

13 unchanged sentences

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

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.

At June 30, 2022 and December 31, 2021, respectively, the Corporation had $ 1,403 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 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.

As of June 30, 2022, the

Corporation has designated $ 4.7 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 $ 10.7 billion and undrawn long-term committed lines of credit of $ 0.6 billion as of first quarter 2022.

The Corporation had undrawn short-term committed lines of credit of $ 10.6 billion, of which $ 10 billion will expire without renewal in the third quarter, and undrawn long-term committed lines of credit of $ 0.4 billion as of second 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.

The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of our business segments 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 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 March 31, 2022 and December 31, 2021, or results of operations for the periods ended March 31, 2022 and 2021.

Commodity contracts held for trading purposes are presented in the Condensed 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 June 30, 2022 and December 31, 2021, or results of operations for the periods ended June 30, 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 March 31, 2022 and December 31, 2021, was as follows:

March 31, December 31,

The net notional long/(short) position of derivative instruments at June 30, 2022 and December 31, 2021, was as follows:

(millions) June 30, 2022 December 31, 2021

Crude oil (barrels) 47 82

1 unchanged sentence

Natural gas (MMBTUs) ( 115 ) ( 115 )

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:

Three Months Ended

(millions of dollars)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Condensed Consolidated Statement of Income are included in the following lines on a before-tax basis:

(millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Sales and other operating revenue ( 1,413 ) ( 1,088 ) ( 3,948 ) ( 1,600 )

2 unchanged sentences

Disclosures about Segments and Related Information

Three Months Ended

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

Effective April 1, 2022, the Corporation streamlined its business structure by combining the Chemical and Downstream businesses into a single business, Product Solutions.

Product Solutions consists of three operating segments:

• Energy Products:

Fuels, aromatics, and catalysts and licensing

• Chemical Products:

Olefins, polyethylene, polypropylene, and intermediates

• Specialty Products:

Finished lubricants, basestocks and waxes, synthetics, and elastomers and resins

Information disclosed in this note has been recast for the new segmentation.

(millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

Earnings (Loss) After Income Tax

United States 3,749 663 6,125 1,026

7,622 2,522 9,734 4,713

Energy Products

United States 2,655 ( 278 ) 3,144 ( 510 )

2,617 ( 578 ) 1,933 ( 1,267 )

Chemical Products

United States 625 1,149 1,395 1,803

Corporate and Financing (1)

450 1,051 1,086 1,788

Specialty Products

United States 232 262 478 442

185 487 415 862

Corporate and Financing ( 286 ) ( 588 ) ( 980 ) ( 1,437 )

Corporate total 17,850 4,690 23,330 7,420

(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 3,958 1,726 6,614 3,611

7,101 3,792 13,444 6,886

Energy Products

United States 34,473 18,770 59,326 34,304

52,804 29,925 94,519 56,815

Chemical Products

United States 3,180 3,035 6,274 5,533

4,497 4,244 8,994 7,985

Specialty Products

United States 1,653 1,242 3,044 2,379

3,591 3,204 6,769 6,073

Corporate and Financing 8 5 15 ( 91 )

Corporate total (1)

111,265 65,943 198,999 123,495

Intersegment Revenue

United States 7,180 3,827 13,371 7,150

13,533 7,747 24,368 14,564

Energy Products

United States 8,348 4,102 15,197 7,263

10,848 5,186 19,610 10,085

Chemical Products

United States 2,558 1,461 4,325 2,806

1,600 929 3,107 1,751

Specialty Products

United States 713 584 1,272 1,080

195 160 419 320

Corporate and Financing 59 52 116 109

Three Months Ended

Sales and Other Operating Revenue 2022 2021

(millions of dollars)

(1) See footnote on the next page

Geographic Sales and Other Operating Revenue

(millions of dollars) Three Months Ended June 30, Six Months Ended June 30,

2022 2021 2022 2021

United States 43,264 24,773 75,258 45,827

68,001 41,170 123,741 77,668

Total 87,734 57,552

111,265 65,943 198,999 123,495

Significant Non-U.S.

revenue sources include:

United Kingdom 7,548 2,943

Canada 9,642 5,282 16,638 9,541

United Kingdom 8,306 3,815 15,854 6,758

France 5,265 3,247 9,622 6,029

Singapore 4,774 3,515 9,096 6,950

Belgium 2,836 1,989

Italy 3,063 2,466 5,898 4,331

Belgium 3,041 2,192 5,877 4,181

Australia 3,205 2,019 5,661 3,748

(1) Includes approximately 23 % and 15 % related to revenue outside the scope of ASC 606 "Revenue from Contracts with Customers" for the three months ended June 30, 2022 and June 30, 2021, respectively, and 22 % and 16 % for the six months ended June 30, 2022 and June 30, 2021, respectively.

Trade receivables in Notes and accounts receivable – net reported on the Balance Sheet include both receivables within the scope of ASC 606 and those outside the scope of ASC 606.

Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives.

Credit quality and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it.

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

4 unchanged sentences

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

In early July, a Nigerian court issued an order to halt transition activities and enter into arbitration with the Nigerian National Petroleum Company.

The closing date and any loss on sale will depend on resolution of these matters.

In May 2022, the Corporation signed an agreement for the sale of ExxonMobil Exploration and Production Romania, consisting of certain unproved Upstream assets, to Romgaz S.A.

The transaction closed in the third quarter, and the Corporation will recognize a gain on the sale of approximately $ 300 million.

In June 2022, the Corporation signed an agreement with Whitecap Resources Inc.

for the sale of XTO Energy Canada, consisting of Upstream unconventional assets in central Alberta.

The agreed sales price is subject to interim period adjustments from May 1, 2022 to the closing date.

The transaction is anticipated to close in the third quarter, and the Corporation expects to recognize a gain on the sale of approximately $ 300 million.

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