What changed in this filing

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Item 1. Financial Statements

2022-11-02 compared with 2022-08-03 · 77 added, 47 removed, 418 unchanged (23% of the section changed)

2 unchanged sentences

(millions of dollars, unless noted)

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

10 unchanged sentences

Exploration expenses, including dry holes (1)

218 190 677 530

Non-service pension and postretirement benefit expense 154 146 382 686

11 unchanged sentences

4.68 1.57 10.17 3.31

(1) Includes $ 74 million related to the write-off of exploratory well costs in 2022 that were previously capitalized for greater than one year at December 31, 2021.

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

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

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

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

11 unchanged sentences

(millions of dollars, unless noted)

June 30, 2022 December 31, 2021

September 30, 2022 December 31, 2021

Current assets

Cash and cash equivalents 30,407 6,802

Cash and cash equivalents – restricted 57 —

Notes and accounts receivable – net 42,411 32,383

25 unchanged sentences

Common stock held in treasury

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

( 3,901 million shares at September 30, 2022 and

3,780 million shares at December 31, 2021)

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(millions of dollars) Six Months Ended June 30,

(millions of dollars) Nine Months Ended September 30,

CASH FLOW FROM OPERATING ACTIVITIES

11 unchanged sentences

CASH FLOW FROM FINANCING ACTIVITIES

Additions to long-term debt 55 46

Reductions in long-term debt — ( 4 )

Additions to short-term debt

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

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

5 unchanged sentences

Dispositions — — — — — — —

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

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

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

Amortization of stock-based awards 91 — — — 91 — 91

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

Balance as of September 30, 2022 16,106 423,877 ( 17,803 ) ( 236,080 ) 186,100 6,943 193,043

Three Months Ended September 30, 2022 Three Months Ended September 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

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

Acquisitions — ( 50 ) ( 50 ) — — —

Dispositions — — — — — —

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

Balance as of September 30 8,019 ( 3,901 ) 4,118 8,019 ( 3,785 ) 4,234

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

11 unchanged sentences

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

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

6 unchanged sentences

Dispositions — — — 4 4 — 4

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

Balance as of September 30, 2022 16,106 423,877 ( 17,803 ) ( 236,080 ) 186,100 6,943 193,043

Nine Months Ended September 30, 2022 Nine Months Ended September 30, 2021

Common Stock Share Activity (millions of shares)

3 unchanged sentences

Dispositions — — — — 1 1

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

Balance as of September 30 8,019 ( 3,901 ) 4,118 8,019 ( 3,785 ) 4,234

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

6 unchanged sentences

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

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 response to Russia’s military action in Ukraine, the Corporation announced in early 2022 that it planned 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.

As a result, the Corporation’s first quarter earnings included after-tax charges of $ 3.4 billion largely representing the full 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.

Effective October 14, the Russian government unilaterally terminated the Corporation’s interests in Sakhalin-1, and the project has been transferred to a Russian operator.

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

Litigation and Other Contingencies

9 unchanged sentences

Other Contingencies

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.

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 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.

June 30, 2022

September 30, 2022

(millions of dollars) Equity Company

6 unchanged sentences

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.

In the third quarter, the Corporation entered into a long-term purchase agreement with minimum annual payments of approximately $ 0.4 billion from 2025 through 2045.

As of September 30, undiscounted commitments for leases not yet commenced totaled $ 2.5 billion for operating leases and $ 4.3 billion for finance leases.

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets;

13 unchanged sentences

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

( 1,041 ) 289 ( 752 )

Amounts reclassified from accumulated other comprehensive income — 761 761

Total change in accumulated other comprehensive income ( 1,041 ) 1,050 9

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

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

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

3 unchanged sentences

Total change in accumulated other comprehensive income ( 4,680 ) 641 ( 4,039 )

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

Balance as of September 30, 2022 ( 16,179 ) ( 1,624 ) ( 17,803 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 551 million and $ 240 million in 2022 and 2021, respectively.

1 unchanged sentence

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

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

4 unchanged sentences

Components of Other Comprehensive Income (millions of dollars)

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

4 unchanged sentences

Earnings Per Share

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

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

10 unchanged sentences

Pension and Other Postretirement Benefits

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

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

24 unchanged sentences

Financial Instruments and Derivatives

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

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

September 30, 2022

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

49 unchanged sentences

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

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.

At September 30, 2022 and December 31, 2021, respectively, the Corporation had $ 1,826 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 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.

As of September 30, 2022, the Corporation has designated $ 4.4 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, 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.

The Corporation had undrawn short-term committed lines of credit of $ 549 million and undrawn long-term committed lines of credit of $ 351 million as of third quarter 2022.

Undrawn short-term committed lines of credit amounting to $ 10 billion expired in the third quarter of 2022.

Derivative Instruments

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.

The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of its 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.

1 unchanged sentence

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.

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, 2022 and December 31, 2021, or results of operations for the periods ended September 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 June 30, 2022 and December 31, 2021, was as follows:

(millions) June 30, 2022 December 31, 2021

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

(millions) September 30, 2022 December 31, 2021

Crude oil (barrels) ( 15 ) 82

2 unchanged sentences

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,

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

12 unchanged sentences

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,

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

43 unchanged sentences

Geographic Sales and Other Operating Revenue

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

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

6 unchanged sentences

United Kingdom 8,845 3,379 24,699 10,137

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

Singapore 5,262 3,678 14,358 10,628

France 4,449 3,513 14,071 9,541

Italy 2,990 2,808 8,888 7,139

1 unchanged sentence

Australia 2,936 1,751 8,597 5,499

(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.

(1) Includes approximately 25 % and 16 % related to revenue outside the scope of ASC 606 "Revenue from Contracts with Customers" for the three months ended September 30, 2022 and September 30, 2021, respectively, and 23 % and 16 % for the nine months ended September 30, 2022 and September 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.

5 unchanged sentences

Divestment Activities

In the third quarter, the Corporation sold certain Upstream unproved assets in Romania and Upstream unconventional assets in Alberta, Canada, which resulted in total gains on sales of approximately $ 600 million which are largely included in "Other income" in the Condensed Consolidated Statement of Income.

In August 2022, the Corporation executed an agreement for the sale of Upstream unconventional shale interests in the Arkoma basin (United States) to Flywheel, LLC.

The transaction is anticipated to close in the fourth quarter.

In August 2022, the Corporation executed an agreement for the sale of Mobil California Exploration and Producing Asset Company (United States), consisting of ExxonMobil's interest in the Aera Energy Joint Venture, to Green Gate Resources E, LLC.

The transaction is anticipated to close in the fourth quarter.

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

2 unchanged sentences

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.

After the end of the third quarter, the Corporation signed an agreement for the sale of the Santa Ynez Unit and associated assets in California.

The agreement is subject to certain conditions precedent and government approvals and does not yet meet held-for-sale criteria under ASC 360.

The transaction would be expected to close in 2023.

The Corporation expects to recognize a loss of up to $ 2 billion on the potential transaction.

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