1 unchanged sentence
During the COVID-19 pandemic, industry investment to maintain and increase production capacity was restrained to preserve capital, resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered.
−Removed: In addition, industry rationalization of refining capacity resulted in more than 3 million barrels per day of capacity being taken offline.
+Added: In addition, industry rationalization of refining assets resulted in more than 3 million barrels per day of capacity being taken offline.
Across late 2021 and the first half of 2022, this dynamic, along with supply chain constraints, and a continuation of demand recovery led to a steady increase in oil and natural gas prices and refining margins.
1 unchanged sentence
The price of Brent crude oil and certain regional natural gas indicators increased to levels not seen for several years, and both natural gas realizations and industry refining margins improved to levels well above the 10-year range.
−Removed: By the end of the second quarter, high prices had led to a tempering of demand for some products.
+Added: In the third quarter, crude prices moved back within the upper-end of the 10-year range as higher supply slightly exceeded demand.
+Added: Natural gas prices rose to record levels in the third quarter, reflecting concerns in Europe about the withdrawal of Russian supply as well as efforts to build inventory ahead of winter.
+Added: While natural gas prices recently moderated, they remain well above the 10-year historical range.
+Added: In the U.S., prices increased by about 15% driven by higher summer cooling demand and inventory concerns.
+Added: Refining margins remained well above the 10-year range due to inflated diesel crack spreads resulting from expensive natural gas and high demand for diesel.
+Added: Higher refinery runs and flat demand for gasoline in the U.S.
+Added: resulted in refining margins declining from the second quarter.
+Added: In contrast, global chemical margins fell below the bottom of the 10-year range reflecting weakening global demand.
+Added: Margins in North America and Europe have softened with regional pricing moving closer to global parity as demand and logistics constraints relaxed.
+Added: Asia Pacific remained in bottom-of-cycle conditions as COVID-19 restrictions continue to suppress demand in China.
Commodity and product prices are expected to remain volatile given the current global economic uncertainty and geopolitical events affecting supply and demand.
−Removed: 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.
−Removed: The Corporation remains focused on protecting the safety of employees, operations, and the environment.
−Removed: The Corporation is complying with all applicable laws and sanctions and is currently engaged in transitioning Sakhalin-1 operating activities to another party.
+Added: Russia-Ukraine Conflict
+Added: 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.
The Corporation’s first quarter results included after-tax charges of $3.4 billion largely representing the impairment of its operations related to Sakhalin (see Note 2 to Condensed Consolidated Financial Statements).
−Removed: Efforts to transition operatorship to a third party and exit the venture are expected to result in minimal hydrocarbon sales and cash flows for the Corporation’s account in future periods.
−Removed: For reference, excluding the impact of impairments and other charges, after-tax earnings related to the Corporation’s interest in Sakhalin during the first half of 2022 were approximately $0.3 billion, and combined oil and gas production was approximately 45 thousand oil-equivalent barrels per day.
−Removed: 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.
+Added: While the Corporation’s affiliate was in force majeure due to the unprecedented impact of global sanctions, it continued to make concerted attempts to engage in good-faith discussions with the Russian government and all Sakhalin-1 partners.
+Added: The Corporation remained focused on safety of people, protection of the environment, and integrity of operations.
+Added: Effective October 14, with two decrees the Russian government unilaterally terminated the Corporation’s interests in Sakhalin-1, and the project has been transferred to a Russian operator.
+Added: While the recent decrees violate the Corporation’s rights in Russia established by the production sharing agreement, and interrupted the exit process the Corporation was working, it did not prevent the safe winding down of operations.
+Added: The Corporation’s exit from the venture is expected to result in no future hydrocarbon sales and minimal cash flow impacts for the Corporation’s account in the fourth quarter.
+Added: For reference, excluding the impact of impairments and other charges, year-to-date after-tax earnings related to the Corporation’s interest in Sakhalin through the end of the third quarter of 2022 were approximately $0.2 billion, and combined oil and gas production was approximately 34 thousand oil-equivalent barrels per day.
+Added: 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.
+Added: The Corporation is complying with all applicable laws and sanctions.
The Corporation holds a 25% interest in Tengizchevroil, LLP (TCO), which operates the Tengiz and Korolev oil fields in Kazakhstan, and holds a 16.8% working interest in the Kashagan field in Kazakhstan.
−Removed: Oil production from those operations is exported through the Caspian Pipeline Consortium (CPC) pipeline, in which the Corporation holds a 7.5% interest.
+Added: Oil production from those operations is exported through the Caspian Pipeline Consortium (CPC), in which the Corporation holds a 7.5% interest.
CPC traverses parts of Kazakhstan and Russia to tanker-loading facilities on the Russian coast of the Black Sea.
−Removed: In the event that existing sanctions related to Russia’s military actions in Ukraine expand, new sanctions are imposed, countermeasures are employed by the Russian Federation, or other direct or indirect impacts arise, it is possible that the transportation of Kazakhstan oil through the CPC pipeline could be disrupted, curtailed, temporarily suspended, or otherwise restricted.
+Added: In the event that Russia takes countermeasures in response to existing sanctions related to its military actions in Ukraine, it is possible that the transportation of Kazakhstan oil through the CPC pipeline could be disrupted, curtailed, temporarily suspended, or otherwise restricted.
In such a case, the Corporation could experience a loss of cash flows of uncertain duration.
−Removed: For reference, after-tax earnings related to the Corporation’s interests in Kazakhstan for the first half of 2022 were $1.5 billion, and its share of combined oil and gas production was approximately 250 thousand oil-equivalent barrels per day.
+Added: For reference, year-to-date after-tax earnings related to the Corporation’s interests in Kazakhstan through the end of the third quarter 2022 were approximately $2.0 billion, and its share of combined oil and gas production was approximately 240 thousand oil-equivalent barrels per day.
+Added: European Union Solidarity Contribution
+Added: On October 6, European Union (“EU”) Member States formally adopted a European Union Council Regulation for a new tax described as an emergency intervention to address high energy prices.
+Added: This regulation imposes a mandatory tax on certain companies active in the crude petroleum, coal, natural gas and refinery sectors.
+Added: The regulation requires Member States to levy a minimum 33% tax on in-scope companies’ 2022 and/or 2023 “surplus profits”, defined in the regulation as taxable profits exceeding 120% of the annual average during the 2018-2021 period.
+Added: EU Member States are required to implement the tax, or an equivalent national measure, by December 31, 2022.
+Added: Depending on the national measures to be adopted by the EU Member States, and the financial years for which these measures would be applicable, the Corporation’s liability, based on currently available public information, could be in excess of $2 billion through the end of 2023.
+Added: The actual impact and timing of recognition in the financial statements will depend on the specific provisions of the EU Member States’ measures.
+Added: ExxonMobil Product Solutions Reorganization
Effective April 1, 2022, the Corporation streamlined its business structure by combining the Chemical and Downstream businesses into a single business, Product Solutions.
7 unchanged sentences
Finished lubricants, basestocks and waxes, synthetics, and elastomers and resins
−Removed: Further information on financial performance related to the new segments are disclosed in Management's Discussion and Analysis and Note 8 to the Condensed Consolidated Financial Statements.
+Added: Further information on financial performance related to the new segments is disclosed in Management's Discussion and Analysis and Note 8 to the Condensed Consolidated Financial Statements.
FUNCTIONAL EARNINGS SUMMARY
5 unchanged sentences
Three Months Ended
−Removed: June 30, 2022
−Removed: Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
+Added: September 30, 2022 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
(millions of dollars) U.S.
2 unchanged sentences
Identified Items
+Added: Impairments — (697) — — — — — — — (697)
Gain/(loss) on sale of assets — 587 — — — — — — — 587
+Added: Tax-related items — — — — — — — — 324 324
+Added: Other — 688 — — — — — — 76 764
Earnings (loss) excluding Identified Items 3,110 8,731 3,008 2,811 635 177 306 456 (552) 18,682
Three Months Ended
−Removed: June 30, 2021 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
+Added: September 30, 2021 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
(millions of dollars) U.S.
4 unchanged sentences
Earnings (loss) excluding Identified Items 869 3,082 479 50 1,121 907 247 592 (591) 6,755
−Removed: Six Months Ended
−Removed: June 30, 2022 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
+Added: Nine Months Ended
+Added: September 30, 2022 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
(millions of dollars) U.S.
4 unchanged sentences
Gain/(loss) on sale of assets 299 587 — — — — — — — 886
−Removed: Other - Russia impacts — (378) — — — — — — — (378)
+Added: Tax-related items — — — — — — — — 324 324
+Added: Other — 310 — — — — — — 76 386
Earnings (loss) excluding Identified Items 8,936 21,720 6,152 4,744 2,030 1,263 784 871 (1,434) 45,066
−Removed: Six Months Ended
−Removed: June 30, 2021 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
+Added: Nine Months Ended
+Added: September 30, 2021 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total
(millions of dollars) U.S.
6 unchanged sentences
GAAP) from the Condensed Consolidated Statement of Income.
−Removed: Unless otherwise indicated, references to earnings (loss), Upstream, Energy Products, Chemical Products, Specialty Products, and Corporate and Financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.
+Added: Unless otherwise indicated, references to earnings (loss);
+Added: Upstream, Energy Products, Chemical Products, Specialty Products, and Corporate and Financing segment earnings (loss);
+Added: and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.
Due to rounding, numbers presented may not add up precisely to the totals indicated.
−Removed: REVIEW OF SECOND QUARTER 2022 RESULTS
−Removed: ExxonMobil’s second quarter 2022 earnings were $17.9 billion, or $4.21 per diluted share, compared with earnings of $4.7 billion a year earlier.
−Removed: The increase in earnings was driven by higher Upstream realizations and Energy Products margins.
−Removed: Capital and exploration expenditures were $4.6 billion, up $0.8 billion from second quarter 2021.
−Removed: Earnings for the first six months of 2022 were $23.3 billion, or $5.49 per diluted share, compared with $7.4 billion a year earlier.
+Added: REVIEW OF THIRD QUARTER 2022 RESULTS
+Added: ExxonMobil’s third quarter 2022 earnings were $19.7 billion, or $4.68 per diluted share, compared with earnings of $6.8 billion a year earlier.
+Added: The increase in earnings was driven by higher Upstream realizations and Energy Products margins as well as increased volume and improved mix.
+Added: Capital and exploration expenditures were $5.7 billion, up $1.9 billion from third quarter 2021.
+Added: Earnings for the first nine months of 2022 were $43.0 billion, or $10.17 per diluted share, compared with $14.2 billion a year earlier.
Capital and exploration expenditures were $15.2 billion, up $4.5 billion from 2021.
1 unchanged sentence
Upstream Financial Results
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
11 unchanged sentences
Total 11,841 3,951 30,656 9,690
−Removed: Upstream Second Quarter Earnings Factor Analysis
+Added: Upstream Third Quarter Earnings Factor Analysis
(millions of dollars)
−Removed: Price – Higher realizations increased earnings by $7,900 million as average realizations for crude oil increased 71%, while natural gas realizations increased 186%.
−Removed: Volume/Mix – Higher volumes increased earnings by $440 million, reflecting growth in Guyana and Permian and eased curtailments, partly offset by downtime, lower entitlements, and decline.
−Removed: Other – All other items decreased earnings by $450 million due to divestment-related impairments and absence of prior year one-time tax impacts.
−Removed: Identified Items (1) – 2Q 2022 $299 million gain on the sale of U.S.
−Removed: Barnett Shale assets.
+Added: Price – Higher realizations increased earnings by $7,330 million as average natural gas realizations increased 172%, while realizations for crude oil increased 39%.
+Added: Volume/Mix – Higher volumes increased earnings by $610 million, reflecting growth in Guyana and Permian and eased curtailments, partly offset by planned and unplanned downtime and divestments.
+Added: Other – All other items decreased earnings by $50 million.
+Added: Identified Items (1) – 3Q 2022 $580 million gain on the sale of Romania and XTO Energy Canada assets and one-time benefits from tax and other reserve adjustments, partly offset by impairments.
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
2 unchanged sentences
Price – Higher realizations increased earnings by $21,470 million as average realizations for crude oil increased 58% and natural gas realizations increased 167%.
−Removed: Volume/Mix – Unfavorable volume and mix effects decreased earnings by $380 million, reflecting impacts from the reduced Groningen gas production limit in Netherlands, higher downtime including the effects of weather in the first quarter, and lower entitlements due to prices, partly offset by growth in Permian and Guyana.
−Removed: Other – All other items decreased earnings by $370 million due to divestment-related impairments and the absence of prior year one-time tax impacts.
−Removed: Identified Items (1) – 2022 $(2,956) million loss as a result of the company's plans to discontinue operations on the Russia Sakhalin-1 project, partly offset by a gain on the sale of U.S.
−Removed: Barnett Shale assets.
+Added: Volume/Mix – Unfavorable volume and mix effects decreased earnings by $90 million, as growth in Guyana and Permian and eased curtailments nearly offset the impacts from the reduced Groningen gas production limit in Netherlands, Russia curtailments, higher downtime including the effects of weather in the first quarter, and lower entitlements due to higher prices.
+Added: Other – All other items decreased earnings by $410 million largely due to divestment-related impairments and the absence of prior year one-time tax impacts.
+Added: Identified Items (1) – 2022 $(2,380) million loss mainly driven by the first quarter impairment of the Russia Sakhalin-1 project, partly offset by gains on the sale of the U.S.
+Added: Barnett Shale, Romania, and XTO Energy Canada assets and one-time benefits from tax and other reserve adjustments.
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
Upstream Operational Results
−Removed: Three Months Ended June 30, Six Months Ended June 30,
+Added: (thousands of barrels daily) Three Months Ended
+Added: September 30, 2022 Nine Months Ended
+Added: September 30, 2022
+Added: Volumes reconciliation (Oil-equivalent production) (1)
2021 3,665 3,677
+Added: Entitlements - Net Interest (27) (28)
+Added: Entitlements - Price / Spend / Other (52) (53)
+Added: Government Mandates 85 97
+Added: Divestments (75) (58)
+Added: Growth / Demand / Other 120 73
+Added: 2022 3,716 3,708
+Added: (1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
+Added: 3Q 2022 versus 3Q 2021 - 3.7 million oil-equivalent barrels per day in 3Q 2022 increased 51 thousand oil-equivalent barrels per day from 3Q 2021 reflecting growth in Guyana and Permian, and easing government-mandated curtailments, partly offset by divestments and lower entitlements due to higher prices.
+Added: YTD 2022 versus YTD 2021 - 2022 year-to-date production of 3.7 million oil-equivalent barrels per day increased 31 thousand oil-equivalent barrels per day from year-to-date 2021 reflecting growth in Permian and Guyana and easing government-mandated curtailments, partly offset by divestments, lower entitlements due to higher prices, and higher downtime including the effects of weather in the first quarter of 2022.
+Added: Listed below are descriptions of ExxonMobil’s volumes reconciliation factors which are provided to facilitate understanding of the terms.
+Added: Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining factors.
+Added: These factors consist of net interest changes specified in Production Sharing Contracts (PSCs) which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession.
+Added: Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.
+Added: Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining factors.
+Added: These factors include changes in oil and gas prices or spending levels from one period to another.
+Added: According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil.
+Added: For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs.
+Added: These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas.
+Added: Such factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.
+Added: Government Mandates are changes to ExxonMobil's sustainable production levels as a result of temporary non-operational production limits or sanctions imposed by governments, generally upon a country, sector, type or method of production.
+Added: Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a field or asset in exchange for financial or other economic consideration.
+Added: Growth, Demand and Other comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil.
+Added: Such factors include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.
+Added: Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
+Added: 2022 2021 2022 2021
Net production of crude oil, natural gas liquids, bitumen and synthetic oil (thousands of barrels daily)
19 unchanged sentences
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
−Removed: 2Q 2022 versus 2Q 2021
−Removed: Liquids production – 2.3 million barrels per day increased 98 thousand barrels per day from 2Q 2021, reflecting growth in Permian and Guyana and easing government-mandated curtailments, partly offset by lower entitlements due to higher prices, higher downtime, and divestments.
−Removed: Natural gas production available for sale – 8.6 billion cubic feet per day increased 312 million cubic feet per day from 2Q 2021, reflecting reduced scheduled maintenance, partly offset by lower entitlements and divestments.
−Removed: YTD 2022 versus YTD 2021
−Removed: Liquids production – 2.3 million barrels per day increased 53 thousand barrels per day from 2021, reflecting growth in Permian and Guyana and easing government-mandated curtailments, partly offset by lower entitlements due to higher prices, higher downtime including the effects of weather in the first quarter of 2022, and divestments.
−Removed: Natural gas production available for sale – 8.5 billion cubic feet per day decreased 201 million cubic feet per day from 2021, reflecting impacts from the reduced Groningen production limit, divestments, and entitlements.
−Removed: Upstream Additional Information
−Removed: (thousands of barrels daily) Three Months Ended June 30 Six Months Ended June 30
−Removed: Volumes reconciliation (Oil-equivalent production) (1)
−Removed: 2021 3,582 3,684
−Removed: Entitlements - Net Interest (27) (29)
−Removed: Entitlements - Price / Spend / Other (57) (48)
−Removed: Government Mandates 90 101
−Removed: Divestments (28) (46)
−Removed: 2022 3,732 3,704
−Removed: (1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
−Removed: Listed below are descriptions of ExxonMobil’s volumes reconciliation factors which are provided to facilitate understanding of the terms.
−Removed: Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining factors.
−Removed: These factors consist of net interest changes specified in Production Sharing Contracts (PSCs) which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession.
−Removed: Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.
−Removed: Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining factors.
−Removed: These factors include changes in oil and gas prices or spending levels from one period to another.
−Removed: According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil.
−Removed: For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs.
−Removed: These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas.
−Removed: Such factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.
−Removed: Government Mandates are changes to ExxonMobil's sustainable production levels as a result of temporary non-operational production limits or sanctions imposed by governments, generally upon a country, sector, type or method of production.
−Removed: Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a field or asset in exchange for financial or other economic consideration.
−Removed: Other comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil.
−Removed: Such factors include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.
ENERGY PRODUCTS
Energy Products Financial Results
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
8 unchanged sentences
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
−Removed: Energy Products Second Quarter Earnings Factor Analysis
+Added: Energy Products Third Quarter Earnings Factor Analysis
(millions of dollars)
−Removed: Margins – Higher margins increased earnings by $5,770 million due to improved industry refining margins and favorable derivative mark-to-market effects.
−Removed: Volume/Mix – Favorable volume and mix effects increased earnings by $280 million, primarily as a result of lower scheduled maintenance and turnaround activity.
−Removed: Other – All other items increased earnings by $80 million.
+Added: Margins – Higher margins increased earnings by $5,050 million due to improved industry refining margins and positive derivative mark-to-market effects.
+Added: Volume/Mix – Favorable volume and mix effects increased earnings by $390 million, driven by increased throughput on strong reliability, improved product yields and lower turnaround activity.
+Added: Other – All other items decreased earnings by $150 million.
Energy Products Year-to-Date Earnings Factor Analysis
(millions of dollars)
−Removed: Margins – Higher margins increased earnings by $5,960 million driven by an increase in industry refining margins.
−Removed: Volume/Mix – Favorable volume and mix effects increased earnings by $580 million, mainly as a result of lower scheduled maintenance and turnaround activity.
+Added: Margins – Higher margins increased earnings by $10,870 million, driven by stronger industry refining margins and favorable derivative mark-to-market effects.
+Added: Volume/Mix – Favorable volume and mix effects increased earnings by $1,090 million, mainly as a result of strong reliability and lower scheduled maintenance.
Other – All other items increased earnings by $180 million, primarily due to the absence of terminal conversion impacts in the prior year.
Energy Products Operational Results
−Removed: (thousands of barrels daily) Three Months Ended June 30, Six Months Ended June 30,
+Added: (thousands of barrels daily) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
11 unchanged sentences
Gasoline, naphthas 2,335 2,191 2,220 2,102
−Removed: Heating oils, kerosene, diesel oils 1,755 1,704 1,739 1,698
+Added: Heating oils, kerosene, diesel 1,818 1,796 1,766 1,731
Aviation fuels 365 228 335 204
4 unchanged sentences
Chemical Products Financial Results
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
8 unchanged sentences
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
−Removed: Chemical Products Second Quarter Earnings Factor Analysis
+Added: Chemical Products Third Quarter Earnings Factor Analysis
(millions of dollars)
−Removed: Margins – Lower margins decreased earnings by $960 million, reflecting higher feed and energy costs only partly offset by price increases.
−Removed: Volume/Mix – Higher volumes increased earnings by $40 million.
−Removed: Other – All other items decreased earnings by $200 million, primarily driven by unfavorable foreign exchange, higher growth-related expenses, and increased planned maintenance.
+Added: Margins – Lower margins decreased earnings by $1,090 million, reflecting lower prices and higher feed and energy costs.
+Added: Volume/Mix – Lower volumes decreased earnings by $190 million, reflecting softening market conditions.
+Added: Other – All other items increased earnings by $60 million, driven by lower expenses and net favorable one-time items, partly offset by unfavorable foreign exchange effects.
Chemical Products Year-to-Date Earnings Factor Analysis
(millions of dollars)
−Removed: Margins – Lower margins decreased earnings by $910 million, reflecting higher feed and energy costs, partly offset by price increases.
−Removed: Volume/Mix – Higher volumes increased earnings by $130 million, primarily due to higher U.S.
−Removed: sales including the start-up of the chemical complex in Corpus Christi, Texas.
−Removed: Other – All other items decreased earnings by $330 million, primarily driven by higher growth-related expenses, increased planned maintenance, and unfavorable foreign exchange effects.
+Added: Margins – Lower margins decreased earnings by $2,050 million, reflecting higher feed and energy costs.
+Added: Volume/Mix – Flat.
+Added: Other – All other items decreased earnings by $280 million, primarily driven by higher project and planned maintenance expenses, and unfavorable foreign exchange effects.
Chemical Products Operational Results
−Removed: (thousands of metric tons) Three Months Ended June 30, Six Months Ended June 30,
+Added: (thousands of metric tons) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
6 unchanged sentences
Specialty Products Financial Results
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
8 unchanged sentences
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
−Removed: Specialty Products Second Quarter Earnings Factor Analysis
+Added: Specialty Products Third Quarter Earnings Factor Analysis
(millions of dollars)
−Removed: Margins – Lower margins decreased earnings by $210 million, primarily related to lower industry basestock margins.
−Removed: Volume/Mix – Unfavorable volume mix effects decreased earnings by $90 million, primarily driven by higher scheduled maintenance.
+Added: Margins – Lower margins decreased earnings by $60 million, primarily related to higher feed and energy expenses.
+Added: Volume/Mix – Favorable volume mix effects increased earnings by $20 million, mainly from higher finished lubes sales.
Other – All other items decreased earnings by $40 million.
1 unchanged sentence
(millions of dollars)
−Removed: Margins – Lower margins decreased earnings by $360 million, primarily related to lower industry basestock margins as a result of increased feed costs.
−Removed: Volume/Mix – Unfavorable volume mix effects decreased earnings by $60 million driven by higher scheduled maintenance.
−Removed: Other – All other items increased earnings by $10 million.
+Added: Margins – Lower margins decreased earnings by $570 million, primarily related to lower industry basestock margins as a result of increased feed costs and energy prices.
+Added: Volume/Mix – Higher volume and favorable mix effects increased earnings by $110 million.
+Added: Other – All other items decreased earnings by $30 million.
Specialty Products Operational Results
−Removed: (thousands of metric tons) Three Months Ended June 30, Six Months Ended June 30,
+Added: (thousands of metric tons) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
6 unchanged sentences
Corporate and Financing Financial Results
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
6 unchanged sentences
(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.
−Removed: Corporate and Financing expenses were $286 million for the second quarter of 2022, $302 million lower than the second quarter of 2021, reflecting favorable one-time tax impacts.
−Removed: Corporate and Financing expenses were $980 million for the first six months of 2022, $457 million lower than 2021.
+Added: Corporate and Financing expenses were $152 million for the third quarter of 2022, $444 million lower than the third quarter of 2021, reflecting favorable one-time tax impacts.
+Added: Corporate and Financing expenses were $1,132 million for the first nine months of 2022, $901 million lower than 2021, primarily due to favorable one-time tax impacts, lower pension-related expenses and lower financing costs.
LIQUIDITY AND CAPITAL RESOURCES
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
12 unchanged sentences
Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.
−Removed: Cash flow from operations and asset sales in the second quarter of 2022 was $20.9 billion, an increase of $11.0 billion from the comparable 2021 period primarily reflecting higher earnings.
−Removed: Cash provided by operating activities totaled $34.8 billion for the first six months of 2022, $15.8 billion higher than 2021.
+Added: Cash flow from operations and asset sales in the third quarter of 2022 was $27.1 billion, an increase of $15.0 billion from the comparable 2021 period primarily reflecting higher earnings.
+Added: Cash provided by operating activities totaled $59.2 billion for the first nine months of 2022, $28.2 billion higher than 2021.
Net income including noncontrolling interests was $44.5 billion, an increase of $30.0 billion from the prior year period.
The adjustment for the noncash provision of $19.0 billion for depreciation and depletion was up $4.0 billion from 2021.
−Removed: Changes in operational working capital were a reduction of $1.7 billion, compared to a contribution of $1.6 billion in the prior year period.
+Added: Changes in operational working capital were immaterial, compared to a contribution of $2.2 billion in the prior year period.
All other items net decreased cash flows by $4.3 billion in 2022 versus a reduction of $0.7 billion in 2021.
See the Condensed Consolidated Statement of Cash Flows for additional details.
−Removed: Investing activities for the first six months of 2022 used net cash of $7.0 billion, an increase of $1.9 billion compared to the prior year.
+Added: Investing activities for the first nine months of 2022 used net cash of $9.4 billion, an increase of $1.3 billion compared to the prior year.
Spending for additions to property, plant and equipment of $12.6 billion was $4.6 billion higher than 2021.
−Removed: Proceeds from asset sales were $1.2 billion compared to $0.6 billion in the prior year period.
+Added: Proceeds from asset sales were $3.9 billion, which included the recent sale of our Romania Upstream affiliate as well as the sale of XTO Energy Canada.
Net investments and advances were essentially flat with prior year.
−Removed: Net cash used in financing activities was $15.4 billion in the first six months of 2022, including $6.1 billion for the purchase of 71.1 million shares of ExxonMobil stock, as part of the previously announced buyback program.
−Removed: This compares to net cash used in financing activities of $14.8 billion in the prior year, reflecting long-term debt repayments of $7.0 billion during the first six months of 2021.
−Removed: Total debt at the end of the second quarter of 2022 was $46.9 billion compared to $47.7 billion at year-end 2021.
−Removed: The Corporation's debt to total capital ratio was 20.3 percent at the end of the second quarter of 2022 compared to 21.4 percent at year-end 2021.
−Removed: The net debt to capital ratio was 13.2 percent at the end of the second quarter, a decrease of 5.7 percentage points from year-end 2021.
+Added: Net cash used in financing activities was $25.2 billion in the first nine months of 2022, including $10.5 billion for the purchase of 120.4 million shares of ExxonMobil stock, as part of the previously announced buyback program.
+Added: This compares to net cash used in financing activities of $22.5 billion in the prior year, reflecting net debt repayments of $10.8 billion during the first nine months of 2021.
+Added: Total debt at the end of the third quarter of 2022 was $45.4 billion compared to $47.7 billion at year-end 2021.
+Added: The Corporation's debt to total capital ratio was 19.0 percent at the end of the third quarter of 2022 compared to 21.4 percent at year-end 2021.
+Added: The net debt to capital ratio was 7.2 percent at the end of the third quarter, a decrease of 11.7 percentage points from year-end 2021.
The Corporation's capital allocation priorities continue to be investing in advantaged projects, strengthening the balance sheet and paying a reliable dividend.
1 unchanged sentence
In addition to cash balances, commercial paper continues to provide short-term liquidity, and is reflected in "Notes and loans payable" on the Consolidated Balance Sheet.
−Removed: Cash and cash equivalents was $18.9 billion at the end of the second quarter of 2022.
−Removed: 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.
−Removed: The Corporation distributed a total of $7.5 billion to shareholders in the first six months of 2022 through dividends.
+Added: Cash and cash equivalents was $30.5 billion at the end of the third quarter of 2022.
+Added: The Corporation had undrawn short-term committed lines of credit of $0.5 billion and undrawn long-term committed lines of credit of $0.4 billion as of third quarter 2022.
+Added: The Corporation distributed a total of $11.2 billion to shareholders in the first nine months of 2022 through dividends.
The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.
3 unchanged sentences
Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.
−Removed: Litigation and other contingencies are discussed in Note 3 to the unaudited condensed consolidated financial statements.
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: Litigation, other contingencies, and contractual obligations are discussed in Note 3 to the unaudited condensed consolidated financial statements.
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
5 unchanged sentences
(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selli ng, general and administrative expenses”.
−Removed: Total taxes were $14.1 billion for the second quarter of 2022, an increase of $4.2 billion from 2021.
+Added: Total taxes were $12.7 billion for the third quarter of 2022, an increase of $1.5 billion from 2021.
Income tax expense was $5.2 billion compared to $2.7 billion in the prior year reflecting higher commodity prices.
−Removed: The effective income tax rate of 31 percent compared to 30 percent in the prior year period.
+Added: The effective income tax rate of 29 percent compared to 33 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax rates.
Total other taxes and duties decreased by $1.1 billion to $7.5 billion.
−Removed: Total taxes were $25.4 billion for the first six months of 2022, an increase of $7.3 billion from 2021.
+Added: Total taxes were $38.1 billion for the first nine months of 2022, an increase of $8.8 billion from 2021.
Income tax expense increased by $9.4 billion to $14.4 billion reflecting higher commodity prices.
−Removed: The effective income tax rate of 34 percent compared to 31 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax rates and the impact of one-time items.
−Removed: Total other taxes and duties increased by $0.5 billion to $16.2 billion.
+Added: The effective income tax rate of 31 percent compared to 32 percent in the prior year period.
+Added: Total other taxes and duties decreased by $0.6 billion to $23.7 billion.
In the United States, the Corporation has various ongoing U.S.
8 unchanged sentences
Court of Appeals for the Fifth Circuit (Fifth Circuit).
−Removed: Proceedings in the Fifth Circuit are continuing.
+Added: On August 3, 2022, the Fifth Circuit ruled adversely to the Corporation on its positions, but confirmed that no penalties apply.
+Added: On September 30, 2022, the Fifth Circuit denied the Corporation’s request that the Fifth Circuit reconsider its opinion on one position.
+Added: The Corporation and the government now have the right to request that the U.S.
+Added: Supreme Court review the Fifth Circuit’s decision.
On March 4, 2022, the Corporation also filed a refund suit for tax years 2010-2011 in District Court with respect to the positions at issue for those years.
2 unchanged sentences
CAPITAL AND EXPLORATION EXPENDITURES
−Removed: (millions of dollars) Three Months Ended June 30, Six Months Ended June 30,
+Added: (millions of dollars) Three Months Ended
+Added: September 30, Nine Months Ended
+Added: September 30,
2022 2021 2022 2021
5 unchanged sentences
Total 5,728 3,851 15,241 10,787
−Removed: Capital and exploration expenditures in the second quarter of 2022 were $4.6 billion, up 21 percent from the second quarter of 2021.
−Removed: Capital and exploration expenditures in the first six months of 2022 were $9.5 billion, up 37 percent from the first six months of 2021.
+Added: Capital and exploration expenditures in the third quarter of 2022 were $5.7 billion, up 49 percent from the third quarter of 2021.
+Added: Capital and exploration expenditures in the first nine months of 2022 were $15.2 billion, up 41 percent from the first nine months of 2021.
The Corporation plans to invest in the range of $21 billion to $24 billion in 2022.
5 unchanged sentences
and other statements of future events or conditions, are forward-looking statements.
+Added: Similarly, discussion of future carbon capture, biofuel and hydrogen plans to drive towards net zero emissions are dependent on future market factors, such as continued technological progress and policy support, and represent forward-looking statements.
Actual future results, including financial and operating performance;
2 unchanged sentences
plans to reduce future emissions and emissions intensity;
−Removed: timing and outcome of projects to capture and store CO2, produced biofuels, and use of plastic waste as recycling feedstock;
+Added: timing and outcome of projects to capture and store CO2, and produced biofuels;
timing and outcome of hydrogen projects;
cash flow, dividends and shareholder returns, including the timing and amounts of share repurchases;
+Added: the ultimate outcome of contingencies and other estimates of future costs or savings;
future debt levels and credit ratings;
2 unchanged sentences
These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and differentials for our products;
+Added: government policies supporting lower carbon investment opportunities such as the U.S.
+Added: Inflation Reduction Act or policies limiting the attractiveness of future investment such as the European Solidarity Tax;
variable impacts of trading activities on our margins and results each quarter;
2 unchanged sentences
the ability to access debt markets;
−Removed: the ultimate impacts of COVID-19, including the extent and nature of further outbreaks and the effects of government responses on people and economies;
+Added: the ultimate impacts of COVID-19, including effects of government responses on people and economies;
reservoir performance, including variability and timing factors applicable to unconventional resources;
5 unchanged sentences
war, and other political or security disturbances;
+Added: expropriations, seizure, or capacity, insurance or shipping limitations by foreign governments or laws;
opportunities for potential investments or divestments and satisfaction of applicable conditions to closing, including regulatory approvals;
9 unchanged sentences
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
−Removed: Information about market risks for the six months ended June 30, 2022, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2021.
+Added: Information about market risks for the nine months ended September 30, 2022, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2021.
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.