What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2023-02-22 compared with 2022-02-23 · 963 added, 818 removed, 2475 unchanged (42% of the section changed)

18 unchanged sentences

• The portions entitled “Director Qualifications”, “Director Nomination Process and Board Succession”, and “Code of Ethics and Business Conduct” of the section entitled “Corporate Governance”;

• The “Audit Committee” portion, “Director Independence” portion, “Board Meetings and Annual Meeting Attendance” portion, and the membership table of the portion entitled “Board Committees” of the section entitled “Corporate Governance”.

• The “Director Independence” portion, “Board Meetings and Annual Meeting Attendance” portion, the membership table of the portion entitled “Board Committees”, the "Audit Committee" portion and the "Nominating and Governance Committee" portion of the section entitled “Corporate Governance”.

EXECUTIVE COMPENSATION

Incorporated by reference to the sections entitled “Director Compensation”, “Compensation Committee Report”, “Compensation Discussion and Analysis”, “Executive Compensation Tables”, and “Pay Ratio” of the registrant’s 2022 Proxy Statement.

Incorporated by reference to the sections entitled “Director Compensation”, “Compensation Committee Report”, “Compensation Discussion and Analysis”, “Executive Compensation Tables”, “Pay Ratio”, and "Pay Versus Performance" of the registrant’s 2023 Proxy Statement.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required under Item 403 of Regulation S-K is incorporated by reference to the sections “Director and Executive Officer Stock Ownership” and “Certain Beneficial Owners” of the registrant’s 2022 Proxy Statement.

The information required under Item 403 of Regulation S-K is incorporated by reference to the sections “Certain Beneficial Owners” and “Director and Executive Officer Stock Ownership” of the registrant’s 2023 Proxy Statement.

Equity Compensation Plan Information

2 unchanged sentences

Equity compensation plans approved by security holders 42,542,460 (1)

— 60,288,068 (2)(3)

Equity compensation plans not approved by security holders — — —

11 unchanged sentences

Incorporated by reference to the portion entitled “Audit Committee” of the section entitled “Corporate Governance” and the section entitled “Ratification of Independent Auditors” of the registrant’s 2023 Proxy Statement.

EXHIBITS, FINANCIAL STATEMENT SCHEDULES

EXHIBIT AND FINANCIAL STATEMENT SCHEDULES

(a) (1) and (2) Financial Statements:

26 unchanged sentences

Summary of Accounting Policies 82

Restructuring Activities 79

Miscellaneous Financial Information 88

14 unchanged sentences

Income and Other Taxes 114

Divestment Activities 118

Supplemental Information on Oil and Gas Exploration and Production Activities 119

2 unchanged sentences

Income Taxes Average Capital

Employed Return on

Employed (Non-GAAP)

Average Capital

Employed Capital and

Employed (Non-GAAP)

Financial 2022 2021 2022 2021 2022 2021 2022 2021

(millions of dollars) (percent) (millions of dollars)

(millions of dollars) (millions of dollars) (percent) (millions of dollars)

United States 11,728 3,663 52,555 55,305 22.3 6.6 6,968 4,018

1 unchanged sentence

Total 36,479 15,775 145,805 156,950 25.0 10.1 17,002 12,254

Energy Products

United States 8,340 668 11,787 11,902 70.8 5.6 1,351 982

1 unchanged sentence

Total 14,966 (347) 30,642 30,439 48.8 (1.1) 2,410 1,987

Chemical Products

United States 2,328 3,697 14,694 14,107 15.8 26.2 1,123 1,200

1 unchanged sentence

Total 3,543 6,989 27,207 25,865 13.0 27.0 2,965 2,025

Corporate and Financing (2,636) (3,296) 1,724 (1,445) — — 3 6

Specialty Products

United States 1,190 1,452 2,072 1,997 57.4 72.7 46 185

1,225 1,807 6,207 5,915 19.7 30.5 222 141

Total 2,415 3,259 8,279 7,912 29.2 41.2 268 326

Corporate and Financing (1,663) (2,636) 16,471 1,724 — — 59 3

Corporate total 55,740 23,040 228,404 222,890 24.9 10.9 22,704 16,595

See Frequently Used Terms for a definition and calculation of capital employed and return on average capital employed.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

Operating 2022 2021 2022 2021

(thousands of barrels daily) (thousands of barrels daily)

Net liquids production Refinery throughput

Net liquids production

(thousands of barrels daily)

Refinery throughput

(thousands of barrels daily)

United States 776 721 United States 1,702 1,623

1 unchanged sentence

Total 2,354 2,289 Total 4,030 3,945

(millions of cubic feet daily) (thousands of barrels daily)

Natural gas production available for sale Petroleum product sales (2)

Natural gas production available for sale

(millions of cubic feet daily)

Energy Products sales (2)

(thousands of barrels daily)

United States 2,551 2,746 United States 2,426 2,267

1 unchanged sentence

Total 8,295 8,537 Total 5,347 5,130

(thousands of oil-equivalent barrels daily) (thousands of metric tons)

Oil-equivalent production (1)

3,712 3,761 Chemical prime product sales (2) (3)

(thousands of oil-equivalent barrels daily)

3,737 3,712 Chemical Products sales (2)

(thousands of metric tons)

United States 7,270 7,017

1 unchanged sentence

Total 19,167 19,142

Specialty Products sales (2)

(thousands of metric tons)

United States 2,049 1,943

Total 7,810 7,666

(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

(2) Petroleum product and chemical prime product sales data reported net of purchases/sales contracts with the same counterparty.

(3) Prime product sales are total product sales including ExxonMobil’s share of equity company volumes and finished-product transfers to the Downstream.

(2) Data reported net of purchases/sales contracts with the same counterparty.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

FINANCIAL INFORMATION

2021 2020 2019

(millions of dollars, except where stated otherwise) 2022 2021 2020

Sales and other operating revenue 398,675 276,692 178,574

Earnings (loss)

Upstream 15,775 (20,030) 14,442

Downstream 2,105 (1,077) 2,323

Chemical 7,796 1,963 592

Corporate and Financing (2,636) (3,296) (3,017)

Net income (loss) attributable to ExxonMobil 55,740 23,040 (22,440)

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ExxonMobil share of equity per common share (dollars) 47.78 39.77 37.12

Weighted average number of common shares

outstanding (millions) 4,275 4,271 4,270

Weighted average number of common shares outstanding (millions) 4,205 4,275 4,271

Number of regular employees at year-end (thousands) (2)

5 unchanged sentences

These definitions are provided to facilitate understanding of the terms and their calculation.

Cash Flow From Operations and Asset Sales

Cash Flow From Operations and Asset Sales (Non-GAAP)

Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments from the Consolidated Statement of Cash Flows.

5 unchanged sentences

(millions of dollars)

2022 2021 2020

Net cash provided by operating activities 76,797 48,129 14,668

Proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments 5,247 3,176 999

Cash flow from operations and asset sales (Non-GAAP)

82,044 51,305 15,667

Cash flow from operations and asset sales 51,305 15,667 33,408

Capital Employed

Capital Employed (Non-GAAP)

Capital employed is a measure of net investment.

4 unchanged sentences

(millions of dollars)

2022 2021 2020

Business uses:

6 unchanged sentences

Add ExxonMobil share of debt-financed equity company net assets 3,705 4,001 4,140

Total capital employed 218,642 227,137 240,925

Total capital employed (Non-GAAP)

238,166 218,642 227,137

Total corporate sources:

5 unchanged sentences

Add ExxonMobil share of equity company debt 3,705 4,001 4,140

Total capital employed 218,642 227,137 240,925

Total capital employed (Non-GAAP)

238,166 218,642 227,137

FREQUENTLY USED TERMS

Return on Average Capital Employed

Return on Average Capital Employed (Non-GAAP)

Return on average capital employed (ROCE) is a performance measure ratio.

6 unchanged sentences

(millions of dollars)

2022 2021 2020

Net income (loss) attributable to ExxonMobil 55,740 23,040 (22,440)

4 unchanged sentences

Total financing costs (1,135) (1,355) (788)

Earnings (loss) excluding financing costs 24,395 (21,652) 15,481

Earnings (loss) excluding financing costs (Non-GAAP)

56,875 24,395 (21,652)

Average capital employed 228,404 222,890 234,031

Return on average capital employed – corporate total 10.9% (9.3)% 6.5%

Return on average capital employed – corporate total (Non-GAAP)

24.9% 10.9% (9.3)%

FREQUENTLY USED TERMS

Structural Cost Savings

Structural cost savings describe decreases in the below expenses as a result of operational efficiencies, workforce reductions and other cost saving measures that are expected to be sustainable compared to 2019 levels.

Relative to 2019, estimated cumulative annual structural cost savings totaled $4.9 billion, of which $1.9 billion was achieved in 2021.

The total change between periods in expenses below will reflect both structural cost savings and other changes in spend, including market factors, such as energy costs, inflation, and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations.

Structural cost savings describe decreases in certain expenses as a result of operational efficiencies, workforce reductions, and other cost saving measures that are expected to be sustainable compared to 2019 levels.

Relative to 2019, estimated cumulative annual structural cost savings totaled $7 billion.

The total change between periods in expenses below will reflect both structural cost savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations.

Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels.

Structural cost savings are stewarded internally to support management’s oversight of spending over time.

This measure is useful for investors to understand the Corporation’s efforts to optimize spending through disciplined expense management.

Consolidated Statement of Income Line Items Targeted for Structural Cost Savings 2021 2020 2019

(millions of dollars)

Calculation of Structural Cost Savings

(billions of dollars)

Components of operating costs

From ExxonMobil’s Consolidated Statement of Income

Production and manufacturing expenses 36.8 42.6

Selling, general and administrative expenses 11.4 10.1

Depreciation and depletion (includes impairments) 19.0 24.0

Exploration expenses, including dry holes 1.3 1.0

Total 46,663 41,884 49,493

Non-service pension and postretirement benefit expense 1.2 0.5

Subtotal 69.7 78.2

ExxonMobil’s share of equity company expenses 9.1 13.0

Total operating costs (Non-GAAP)

Depreciation and depletion (includes impairments) 19.0 24.0

Non-service pension and postretirement benefit expense 1.2 0.5

Other adjustments (includes equity company depreciation

and depletion) 3.6 3.5

Total cash operating expenses (cash opex) (Non-GAAP)

Energy and production taxes 11.0 23.8

Market Activity /

Other Structural

Total cash operating expenses (cash opex) excluding energy and production taxes (Non-GAAP)

44.0 +3 -1 -7 39.4

FREQUENTLY USED TERMS

Earnings (Loss) excluding Identified Items

Earnings (Loss) excluding Identified Items (Non-GAAP)

Earnings (loss) excluding Identified Items, are earnings (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $250 million in a given quarter.

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Earnings (loss) excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income (loss) attributable to ExxonMobil as prepared in accordance with U.S.

2021 2020 2019

Upstream U.S.

(millions of dollars)

Upstream 2022 2021 2020

(millions of dollars) U.S.

Earnings (loss) (U.S.

5 unchanged sentences

Contractual provisions — — — — (250) (250) — — —

Other — 1,380 1,380 — — — — — —

Identified Items 299 (3,238) (2,939) (263) (280) (543) (17,092) (2,602) (19,694)

Earnings (loss) excluding Identified Items 3,926 12,392 16,318 (2,293) 1,957 (336) 536 9,472 10,008

Earnings (loss) excluding Identified Items (Non-GAAP)

11,429 27,989 39,418 3,926 12,392 16,318 (2,293) 1,957 (336)

Downstream U.S.

(millions of dollars)

Energy Products 2022 2021 2020

(millions of dollars) U.S.

Earnings (loss) (U.S.

1 unchanged sentence

Impairments (58) (216) (274) — — — (4) (374) (378)

Gain/(loss) on sale of assets 4 — 4 — — — — — —

Tax-related items — (410) (410) — — — — (262) (262)

Identified Items (58) (626) (684) — — — (4) (636) (640)

Earnings (loss) excluding Identified Items 1,310 791 2,101 (848) 630 (218) 1,717 615 2,332

Earnings (loss) excluding Identified Items (Non-GAAP)

8,398 7,252 15,650 668 (1,014) (347) (1,338) (594) (1,932)

Chemical U.S.

(millions of dollars)

Chemical Products 2022 2021 2020

(millions of dollars) U.S.

Earnings (loss) (U.S.

1 unchanged sentence

Impairments — — — — — — (90) (2) (92)

Tax-related items — — — — — — — (13) (13)

Identified Items — — — — — — (90) (15) (105)

Earnings (loss) excluding Identified Items (Non-GAAP)

2,328 1,215 3,543 3,697 3,292 6,989 1,286 1,076 2,362

Specialty Products 2022 2021 2020

(millions of dollars) U.S.

Earnings (loss) (U.S.

GAAP) 1,190 1,225 2,415 1,452 1,807 3,259 571 630 1,201

Impairments — (40) (40) — — — — (219) (219)

Gain/(loss) on sale of assets — — — 498 136 634 — — —

1 unchanged sentence

Identified Items — (40) (40) 498 136 634 — (228) (228)

Earnings (loss) excluding Identified Items 4,008 3,158 7,166 1,367 710 2,077 206 384 590

Earnings (loss) excluding Identified Items (Non-GAAP)

1,190 1,265 2,455 954 1,672 2,625 571 858 1,429

FREQUENTLY USED TERMS

1 unchanged sentence

(millions of dollars)

2022 2021 2020

Earnings (loss) (U.S.

5 unchanged sentences

Identified Items 302 (64) (361)

Earnings (loss) excluding Identified Items (2,572) (2,935) (3,325)

Earnings (loss) excluding Identified Items (Non-GAAP)

(1,965) (2,572) (2,935)

Corporate Total

(millions of dollars)

2022 2021 2020

Net income (loss) attributable to ExxonMobil (U.S.

6 unchanged sentences

Contractual provisions — (250) —

Other 1,456 — —

Identified Items (3,361) 27 (21,028)

Earnings (loss) excluding Identified Items 23,013 (1,412) 9,605

References in Frequently Used Terms and Management's Discussion & Analysis to total corporate earnings (loss) mean net income (loss) attributable to ExxonMobil from the Consolidated Statement of Income.

Unless otherwise indicated, references to earnings (loss), Upstream, Downstream, Chemical and Corporate and Financing earnings (loss), and earnings (loss) per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

Earnings (loss) excluding Identified Items (Non-GAAP)

59,101 23,013 (1,412)

References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S.

GAAP) from the Consolidated Statement of Income.

Unless otherwise indicated, references to earnings (loss), Upstream, Energy Products, Chemical Products, Specialty Products, and Corporate and Financing earnings (loss), 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.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

FORWARD-LOOKING STATEMENTS

Outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions in this release are forward-looking statements.

Similarly, emission-reduction roadmaps are dependent on future market factors, such as continued technological progress and policy support, and also represent forward-looking statements.

Actual future results, including future energy demand and mix;

financial and operating performance;

realized price and margins;

dividends and shareholder returns, including the timing and amounts of share repurchases;

volume growth;

project plans, timing, costs, and capacities;

capital expenditures, including lower-emissions and environmental expenditures;

cost reductions and structural cost savings;

integration benefits;

emission intensity and absolute emissions reductions;

achievement of ambitions to reach Scope 1 and Scope 2 net-zero from operated assets by 2050, to reduce methane emissions and flaring, or to complete major asset emission reduction roadmaps;

implementation and outcomes of carbon capture and storage projects and infrastructure, renewable fuel projects, blue hydrogen projects, and other technology efforts;

the impact of new technologies on society and industry;

capital expenditures and mix;

investment returns;

accounting and financial reporting effects resulting from market or regulatory developments and ExxonMobil’s responsive actions, including potential impairment charges;

and the outcome of litigation and tax contingencies, could differ materially due to a number of factors.

These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market or economic conditions that impact demand, prices and differentials;

policy and consumer support for lower-emission products and technologies in different jurisdictions;

the impact of company actions to protect the health and safety of employees, vendors, customers, and communities;

Statements related to outlooks;

descriptions of strategic, operating, and financial plans and objectives;

statements of future ambitions and plans;

and other statements of future events or conditions are forward-looking statements.

Similarly, discussion of emission-reduction roadmaps or future plans related to carbon capture, biofuel, hydrogen, plastics recycling, and other 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;

total capital expenditures and mix, including allocations of capital to low carbon solutions;

cost reductions and efficiency gains, including the ability to offset inflationary pressure;

ambitions to achieve net-zero operated Scope 1 and Scope 2 emissions by 2050;

plans to reach net-zero operated Scope 1 and 2 emissions in our unconventional Permian Basis operated assets by 2030, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, and to reach near-zero methane emissions from operated assets, within evolving growth, start-up, divestment, and technological efforts;

timing and outcome of projects to capture and store CO2, and produced biofuels;

timing and outcome of hydrogen projects;

timing to increase the use of plastic waste as feedstock for advanced recycling;

cash flow, dividends and shareholder returns, including the timing and amounts of share repurchases;

future debt levels and credit ratings;

business and project plans, timing, costs, capacities and returns;

and resource recoveries and production rates could differ materially due to a number of factors.

These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors, economic conditions or seasonal fluctuations that impact prices and differentials for our product;

government policies supporting lower carbon investment opportunities such as the U.S.

Inflation Reduction Act or policies limiting the attractiveness of future investment such as the additional European taxes on the energy sector;

variable impacts of trading activities on our margins and results each quarter;

actions of competitors and commercial counterparties;

the ability to access short- and long-term debt markets on a timely and affordable basis;

the severity, length and ultimate impact of COVID-19 variants and government responses on people and economies;

reservoir performance;

the outcome of exploration projects and timely completion of development and construction projects;

regulatory actions targeting public companies in the oil and gas industry;

changes in local, national, or international law, taxes, regulation or policies affecting our business, including environmental regulations and timely granting of governmental permits;

war, trade agreements and patterns, shipping blockades or harassment, and other political or security disturbances;

the pace of regional and global economic recovery from the pandemic and the occurrence and severity of future outbreaks;

opportunities for and regulatory approval of potential investments or divestments;

the actions of competitors;

the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning;

unforeseen technical or operating difficulties;

the outcome of commercial negotiations, including final agreed terms and conditions;

the ability to access debt markets;

the impacts of COVID-19 or other public health crises, including the effects of government responses on people and economies;

reservoir performance, including variability and timing factors applicable to unconventional resources;

the level and outcome of exploration projects and decisions to invest in future reserves;

timely completion of development and other construction projects;

final management approval of future projects and any changes in the scope, terms, or costs of such projects as approved;

changes in law, taxes, or regulation including environmental regulations, trade sanctions, and timely granting of governmental permits and certifications;

government policies and support and market demand for low carbon technologies;

war, civil unrest, attacks against the company or industry, and other political or security disturbances;

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;

the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies;

unforeseen technical or operating difficulties and unplanned maintenance;

the development and competitiveness of alternative energy and emission-reduction technologies;

the results of research programs;

the ability to bring new technologies to commercial scale on a cost-competitive basis;

general economic conditions including the occurrence and duration of economic recessions;

the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis;

and other factors discussed under Item 1A.

Risk Factors.

Forward-looking and other statements regarding our environmental, social and other sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or requiring disclosure in our filing with the SEC.

In addition, historical, current, and forward-looking environmental, social and sustainability-related statements may be based on standards for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions that are subject to change in the future, including future rule-making.

Energy demand models are forward-looking by nature and aim to replicate system dynamics of the global energy system, requiring simplifications.

2 unchanged sentences

As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty.

For example, the IEA describes its NZE scenario as extremely challenging, requiring unprecedented innovation, unprecedented international cooperation and sustained support and participation from consumers.

For example, the International Energy Agency (IEA) describes its Net Zero Emissions (NZE) by 2050 scenario as extremely challenging, requiring unprecedented innovation, unprecedented international cooperation and sustained support and participation from consumers.

Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use by ExxonMobil is not an endorsement by ExxonMobil of their underlying assumptions, likelihood or probability.

Investment decisions are made on the basis of ExxonMobil’s separate planning process, but may be secondarily tested for robustness or resiliency against different assumptions, including against various scenarios.

Investment decisions are made on the basis of ExxonMobil’s separate planning process.

Any use of the modeling of a third-party organization within this report does not constitute or imply an endorsement by ExxonMobil of any or all of the positions or activities of such organization.

The following discussion and analysis of ExxonMobil’s financial results, as well as the accompanying financial statements and related notes to consolidated financial statements to which they refer, are the responsibility of the management of Exxon Mobil Corporation.

The Corporation’s accounting and financial reporting fairly reflect its integrated business model involving exploration for, and production of, crude oil and natural gas, manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products;

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and biofuels.

ExxonMobil's operating segments are Upstream, Downstream, and Chemical.

Where applicable ExxonMobil voluntarily discloses additional U.S., Non-U.S.

and regional splits to help investors better understand the company's operations.

In January 2022, the Corporation announced that effective April 2022 it is streamlining its business structure by combining the Chemical and Downstream businesses.

The company will be organized along three businesses – Upstream, Product Solutions, and Low Carbon Solutions, aligning along market-focused value chains.

Product Solutions will consist of Energy Products, Specialty Products and Chemical Products.

Low Carbon Solutions will continue to be included in Corporate and Financing.

The businesses will be supported by a combined technology organization, and other centralized service-delivery groups, building on the establishment of a worldwide major projects organization in 2019.

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Corporation’s accounting and financial reporting fairly reflect its integrated business model involving exploration for, and production of, crude oil and natural gas;

manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide variety of specialty products;

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels.

ExxonMobil's operating segments are Upstream, Energy Products, Chemical Products, and Specialty Products.

Where applicable, ExxonMobil voluntarily discloses additional U.S., Non-U.S., and regional splits to help investors better understand the company's operations.

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

The company is organized along three businesses – Upstream, Product Solutions, and Low Carbon Solutions, aligning along market-focused value chains.

Product Solutions consists of Energy Products, Chemical Products, and Specialty Products.

Low Carbon Solutions will continue to be included in Corporate and Financing as the business continues to mature through commercialization and deployment of technology.

The businesses are supported by a combined technology organization, and other centralized service-delivery groups, including a global projects organization.

ExxonMobil, with its resource base, financial strength, disciplined investment approach and technology portfolio, is well-positioned to participate in substantial investments to develop new energy supplies.

The company’s integrated business model, with significant investments in Upstream, Downstream and Chemical segments and Low Carbon Solutions business, generally reduces the Corporation’s risk from changes in commodity prices.

The company’s integrated business model, with significant investments in Upstream, Energy Products, Chemical Products, and Specialty Products segments and Low Carbon Solutions business, generally reduces the Corporation’s risk from changes in commodity prices.

While commodity prices depend on supply and demand and may be volatile on a short-term basis, ExxonMobil’s investment decisions are grounded on fundamentals reflected in our long-term business outlook, and use a disciplined approach in selecting and pursuing the most attractive investment opportunities.

The Corporate Plan is a fundamental annual management process that is the basis for setting operating and capital objectives in addition to providing the economic assumptions used for investment evaluation purposes.

The foundation for the assumptions supporting the corporate plan is the Energy Outlook and corporate plan volume projections are based on individual field production profiles, which are also updated at least annually.

Price ranges for crude oil, natural gas, including price differentials, refinery and chemical margins, volumes, development and operating costs, including greenhouse gas emission prices, and foreign currency exchange rates are based on corporate plan assumptions developed annually by major region and are utilized for investment evaluation purposes.

The foundation for the assumptions supporting the Corporate Plan is the Outlook for Energy (Outlook), and Corporate Plan volume projections are based on individual field production profiles, which are also updated at least annually.

Price ranges for crude oil, natural gas, including price differentials, refinery and chemical margins, volumes, development and operating costs, including greenhouse gas emissions pricing, and foreign currency exchange rates are based on Corporate Plan assumptions developed annually by major region and are utilized for investment evaluation purposes.

Major investment opportunities are evaluated over a range of potential market conditions.

Once major investments are made, a reappraisal process is completed to ensure relevant lessons are learned and improvements are incorporated into future projects.

Once we make major investments, we complete a reappraisal process to ensure we learn from the investment decision and incorporate the lessons into future projects.

BUSINESS ENVIRONMENT

Long-Term Business Outlook

ExxonMobil’s business planning is underpinned by a deep understanding of long-term energy fundamentals.

These fundamentals include energy supply and demand trends, the scale and variety of energy needs worldwide;

ExxonMobil’s business planning is underpinned by a deep understanding of long-term market fundamentals.

These fundamentals include supply and demand trends, the scale and variety of energy needs worldwide;

capability, practicality and affordability of energy alternatives including low-carbon solutions;

1 unchanged sentence

and supportive government policies.

The company’s Energy Outlook (Outlook) considers these fundamentals to form the basis for the company’s long-term business planning, investment decisions, and research programs.

The company’s Outlook considers these fundamentals to form the basis for the company’s long-term business planning, investment decisions, and research programs.

The Outlook reflects the company’s view of global energy demand and supply through 2050.

1 unchanged sentence

In addition, ExxonMobil considers a range of scenarios - including remote scenarios - to help inform perspective of the future and enhance strategic thinking over time.

Included in the range of these scenarios are the Intergovernmental Panel on Climate Change Lower 2°C and the International Energy Agency's Net Zero Emissions (IEA NZE) by 2050 scenario.

To effectively evaluate the pace of change, ExxonMobil uses many scenarios to help identify signposts that provide leading indicators of future developments and allow for timely adjustments to the Outlook.

The IEA describes the IEA NZE as extremely challenging, requiring all stakeholders – governments, businesses, investors and citizens – to take action this year and every year after so that the goal does not slip out of reach.

The scenario assumes unprecedented and sustained energy efficiency gains, innovation and technology transfer, lower-emission investments, and globally coordinated greenhouse gas reduction policy.

The IEA acknowledges that society is not on the IEA NZE pathway.

Included in the range of these scenarios are the Intergovernmental Panel on Climate Change Lower 2°C scenarios and the IEA NZE by 2050 scenario.

The IEA describes the IEA NZE as extremely challenging, requiring all stakeholders – governments, businesses, investors, and citizens – to take immediate, unprecedented action.

The IEA acknowledges that society is not currently on the IEA NZE pathway.

No single transition pathway can be reasonably predicted, given the wide range of uncertainties.

Key unknowns include yet-to-be-developed government policies, market conditions, and advances in technology that may influence the cost, pace, and potential availability of certain pathways.

Scenarios that employ a full complement of technology options are likely to provide the most economically efficient pathways.

Using our own experts and third-party sources, we monitor a variety of signposts that may indicate a potential shift in the energy transition.

For example, the regional pace of the transition could be influenced by the cost of new technologies compared to existing or alternative energy sources.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Non-OECD countries projected to drive energy demand growth

Primary energy, quadrillion BTUs

ExxonMobil 2022 Outlook for Energy

By 2050, the world’s population is projected at around 9.7 billion people, or about 2 billion more than in 2021.

Coincident with this population increase, the Corporation expects worldwide economic growth to average close to 2.5 percent per year, with economic output growing by around 125 percent by 2050 compared to 2019.

Coincident with this population increase, the Outlook projects worldwide economic growth to average close to 2.5 percent per year, with economic output growing by around 110 percent by 2050 compared to 2021.

As economies and populations grow, and as living standards improve for billions of people, the need for energy is expected to continue to rise.

Even with significant efficiency gains, global energy demand is projected to rise by almost 15 percent from 2021 to 2050.

This increase in energy demand is expected to be driven by developing countries (i.e., those that are not member nations of the Organisation for Economic Co-operation and Development (OECD)).

As expanding prosperity drives global energy demand higher, increasing use of energy-efficient technologies and practices as well as lower-emission products will continue to help significantly reduce energy consumption and emissions per unit of economic output over time.

This increase in energy demand is expected to be driven by developing countries (i.e., those that are not member nations of the Organization for Economic Co-operation and Development (OECD)).

Substantial efficiency gains are likely in all key aspects of the world’s economy through 2050, affecting energy requirements for power generation, transportation, industrial applications, and residential and commercial needs.

Under our Outlook, global electricity demand is expected to increase almost 75 percent from 2019 to 2050, with developing countries likely to account for about 80 percent of the increase.

Under our Outlook, global electricity demand is expected to increase over 75 percent from 2021 to 2050, with developing countries likely to account for about 80 percent of the increase.

Consistent with this projection, power generation is expected to remain the largest and fastest growing major segment of global primary energy demand, supported by a wide variety of energy sources.

The share of coal-fired generation is expected to decline substantially and approach 15 percent of the world’s electricity in 2050, versus nearly 35 percent in 2019, in part as a result of policies to improve air quality as well as reduce greenhouse gas emissions to address risks related to climate change.

The share of coal-fired generation is expected to decline substantially and approach 15 percent of the world’s electricity in 2050, versus nearly 35 percent in 2021, in part due to policies to improve air quality as well as reduce greenhouse gas emissions to address risks related to climate change.

From 2021 to 2050, the amount of electricity supplied using natural gas, nuclear power, and renewables is expected to more than double, accounting for the entire growth in electricity supplies and offsetting the reduction of coal.

Electricity from wind and solar is expected to increase more than 600 percent, helping total renewables (including other sources, e.g.

hydropower) to account for about 80 percent of the increase in electricity supplies worldwide through 2050.

Electricity from wind and solar is expected to increase more than 550 percent, helping total renewables (including other sources, e.g., hydropower) to account for over 80 percent of the increase in electricity supplies worldwide through 2050.

Total renewables are expected to reach about 50 percent of global electricity supplies by 2050.

Natural gas and nuclear are also expected to increase shares over the period to 2050, reaching more than 25 percent and about 10 percent of global electricity supplies, respectively, by 2050.

Natural gas and nuclear are expected to be about 25 percent and 10 percent, respectively, of global electricity supplies by 2050.

Supplies of electricity by energy type will reflect significant differences across regions reflecting a wide range of factors including the cost and availability of various energy supplies and policy developments.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Under our Outlook, energy for transportation - including cars, trucks, ships, trains and airplanes - is expected to increase by almost 25 percent from 2019 to 2050.

Transportation energy demand is expected to account for over 40 percent of the growth in liquid fuels demand worldwide over this period.

Light-duty vehicle demand for liquid fuels is projected to peak by around 2025 and then decline to levels seen in the early-2000s by 2050 as the impact of better fuel economy and significant growth in electric cars, led by China, Europe, and the United States, work to offset growth in the worldwide car fleet of about 75 percent.

Under our Outlook, energy for transportation - including cars, trucks, ships, trains and airplanes - is expected to increase by over 30 percent from 2021 to 2050.

Transportation energy demand is expected to account for around 65 percent of the growth in liquid fuels demand worldwide over this period.

Light-duty vehicle demand for liquid fuels is projected to peak by around 2025, and then decline to levels seen in the early-2000s by 2050, as the impact of better fuel economy and significant growth in electric cars, led by China, Europe, and the United States, work to offset growth in the worldwide car fleet of almost 70 percent.

By 2050, light-duty vehicles are expected to account for around 15 percent of global liquid fuels demand.

During the same time period, nearly all the world’s commercial transportation fleets are expected to continue to run on liquid fuels, including biofuels, which are widely available and offer practical advantages in providing a large quantity of energy in small volumes.

During the same time period, nearly all the world’s commercial transportation fleets are expected to continue to run on liquid fuels, including biofuels, which are expected to be widely available and offer practical advantages in providing a large quantity of energy in small volumes.

Almost half of the world’s energy use is dedicated to industrial activity.

As the global middle class continues to grow, demand for durable products, appliances, and consumable goods will increase.

Industry uses energy products both as a fuel and as a feedstock for chemicals, asphalt, lubricants, waxes, and other specialty products.

The Outlook anticipates technology advances, as well as the increasing shift toward cleaner forms of energy, such as electricity and natural gas, with coal declining.

Demand for oil will continue to grow as a feedstock for industry.

As populations grow and prosperity rises, more energy will be needed to power homes, offices, schools, shopping centers, hospitals, etc.

Combined residential and commercial energy demand is projected to rise by around 15 percent through 2050.

Led by the growing economies of developing nations, average worldwide household electricity use will rise about 75 percent between 2021 and 2050.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquid fuels provide the largest share of global energy supplies today reflecting broad-based availability, affordability, ease of transportation, and fitness as a practical solution to meet a wide variety of needs.

By 2050, global demand for liquid fuels is projected to grow to approximately 114 million barrels of oil equivalent per day, an increase of about 14 percent from 2019.

The non-OECD share of global liquid fuels demand is expected to increase to nearly 70 percent by 2050, as liquid fuels demand in the OECD is expected to decline by more than 20 percent.

Much of the global liquid fuels demand today is met by crude production from traditional conventional sources;

By 2050, global demand for liquid fuels is projected to grow to approximately 110 million oil equivalent barrels per day, an increase of about 17 percent from 2021.

The non-OECD share of global liquid fuels demand is expected to increase to nearly 70 percent by 2050, as liquid fuels demand in the OECD is expected to decline by around 20 percent.

Much of the global liquid fuels demand today is met by crude production from conventional sources;

these supplies will remain important, and significant development activity is expected to offset much of the natural declines from these fields.

At the same time, a variety of emerging supply sources - including tight oil, deepwater, oil sands, natural gas liquids, and biofuels - are expected to grow to help meet rising demand.

The world’s resource base is sufficient to meet projected demand through 2050 as technology advances continue to expand the availability of economic and lower-carbon supply options.

The world’s resource base is sufficient to meet projected demand through 2050 as technology advances continue to expand the availability of more economic and lower-carbon supply options.

However, timely investments will remain critical to meeting global needs with reliable and affordable supplies.

Natural gas is a lower-emission, versatile and practical fuel for a wide variety of applications, and it is expected to grow the most of any primary energy type from 2021 to 2050, meeting about 40 percent of global energy demand growth.

Global natural gas demand is expected to rise nearly 35 percent from 2019 to 2050, with more than half of that increase coming from the Asia Pacific region.

Global natural gas demand is expected to rise nearly 25 percent from 2021 to 2050, with around two-thirds of that increase coming from the Asia Pacific region.

Significant growth in supplies of unconventional gas - the natural gas found in shale and other tight rock formations - will help meet these needs.

In total, about 50 percent of the growth in natural gas supplies is expected to be from unconventional sources.

At the same time, conventionally-produced natural gas is likely to remain the cornerstone of global supply, meeting more than two-thirds of worldwide demand in 2050.

Liquefied natural gas (LNG) trade will expand significantly, meeting about 40 percent of the increase in global demand growth, with much of this supply expected to help meet rising demand in Asia Pacific.

At the same time, conventionally-produced natural gas is likely to remain the cornerstone of global supply, meeting around two-thirds of worldwide demand in 2050.

LNG trade will expand significantly, meeting about 50 percent of the increase in global demand growth, with much of this supply expected to help meet rising demand in Asia Pacific.

Oil and natural gas projected to play a critical role in the global energy mix

Primary energy - Quadrillion Btu Percent of primary energy

ExxonMobil 2022 Outlook for Energy Source:

ExxonMobil 2022 Outlook for Energy

The world’s energy mix is highly diverse and will remain so through 2050.

Oil is expected to remain the largest source of energy with its share remaining close to 30 percent in 2050.

Coal is currently the second largest source of energy, but it is expected to lose that position to natural gas in the next few years.

The share of natural gas is expected to reach more than 25 percent by 2050, while the share of coal falls to about half that of natural gas.

Nuclear power is projected to grow significantly, as many nations are likely to expand nuclear capacity to address rising electricity needs as well as energy security and environmental issues.

Total renewable energy is expected to exceed 20 percent of global energy by 2050, with biomass, hydro and geothermal contributing a combined share of more than 10 percent.

Total energy supplied from wind, solar and biofuels is expected to increase rapidly, growing over 420 percent from 2019 to 2050, when they are projected to be about 10 percent of the world energy mix.

To meet this projected demand under our Outlook, the Corporation anticipates that the world’s available oil and gas resource base will grow not only from new discoveries, but also from increases in previously discovered fields.

Coal and gas are the next largest sources of energy today, with the share of natural gas growing to more than 25 percent by 2050, while the share of coal falls to about half that of natural gas.

Nuclear power is projected to grow, as many nations are likely to expand nuclear capacity to address rising electricity needs as well as energy security and environmental issues.

Total renewable energy is expected to exceed 20 percent of global energy by 2050, with other renewables (e.g., biomass, hydropower, geothermal) contributing a combined share of more than 10 percent.

Total energy supplied from wind and solar is expected to increase rapidly, growing over 480 percent from 2021 to 2050, when they are projected to be around 10 percent of the world energy mix.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Decarbonization of industry activities will require a suite of nascent or future lower-carbon technologies and supporting policies.

Lower-emission fuels, hydrogen-based fuels, and carbon capture and storage are three key lower-carbon solutions needed to support a lower-emission future, in addition to wind and solar.

Along with electrification, lower-emission fuels are expected to play an important role in decarbonization of the transportation sector, particularly in hard-to-decarbonize areas, such as aviation.

Low-carbon hydrogen will be a key enabler replacing traditional furnace fuel to decarbonize the industrial sector.

Hydrogen and hydrogen-based fuels like ammonia are also expected to make inroads into commercial transportation as technology improves to lower its cost and policy develops to support the needed infrastructure development.

Carbon capture and storage on its own, or in combination with hydrogen production, is among the few proven technologies that could enable CO2 emission reductions from high-emitting and hard-to-decarbonize sectors such as power generation and heavy industries, including manufacturing, refining, and petrochemicals.

Significant oil and natural gas investment needed to meet projected global demand

Projected oil supply and demand

Million barrels per day

Excludes biofuels;

IEA STEPS and IEA NZE Source:

IEA WEO 2021;

Outlook Source:

ExxonMobil 2022 Outlook for Energy;

Average IPCC Lower 2°C Source:

IPCC AR6 Scenarios Database hosted by IIASA release 1.0 average IPCC C3:

311 “Likely below 2°C” scenarios used

Projected global natural gas supply and demand

Billion cubic feet per day

IEA STEPS and IEA NZE Source:

IEA WEO 2021;

Outlook Source:

ExxonMobil 2022 Outlook for Energy;

Average IPCC Lower 2°C Source:

IPCC AR6 Scenarios Database hosted by IIASA release 1.0 average IPCC C3:

311 “Likely below 2°C” scenarios used

To meet this projected demand under our Outlook and the IEA's Stated Policies Scenario (STEPS), the Corporation anticipates that the world’s available oil and gas resource base will grow, not only from new discoveries, but also from increases in previously discovered fields.

Technology will underpin these increases.

The investments to develop and supply resources to meet global demand through 2050 will be significant.

This reflects a fundamental aspect of the oil and natural gas business as the International Energy Agency (IEA) describes in its World Energy Outlook 2021.

The investments to develop and supply resources to meet global demand through 2050 will be significant, and would be needed to meet even the rapidly declining demand for oil and gas envisioned in the IEA’s Net Zero Emissions by 2050 scenario.

International accords and underlying regional and national regulations covering greenhouse gas emissions continue to evolve with uncertain timing and outcome, making it difficult to predict their business impact.

For many years, the Corporation has taken into account policies established to reduce energy-related greenhouse gas emissions in its long-term Energy Outlook.

For many years, the Corporation has taken into account policies established to reduce energy-related greenhouse gas emissions in its long-term Outlook.

The climate accord reached at the Conference of the Parties (COP 21) in Paris set many new goals, and many related policies are still emerging.

Our Energy Outlook reflects an environment with increasingly stringent climate policies and is consistent with the global aggregation of Nationally Determined Contributions (NDCs), as available at the end of 2020, which were submitted by signatories to the United Nations Framework Convention on Climate Change (UNFCCC) 2015 Paris Agreement.

Our Energy Outlook seeks to identify potential impacts of climate-related policies, which often target specific sectors.

It estimates potential impacts of these policies on consumer energy demand by using various assumptions and tools - including, depending on the sector, and, as applicable, use of a proxy cost of carbon or assessment of targeted policies (e.g.

automotive fuel economy standards).

For purposes of the Energy Outlook, a proxy cost on energy-related CO2 emissions is assumed to reach about $100 per metric ton in 2050 in OECD nations.

Our Outlook reflects an environment with increasingly stringent climate policies and is consistent with the global aggregation of Nationally Determined Contributions (NDCs), submitted by the nations that are signatories to the Paris Agreement, as available at the end of 2021.

Our Outlook seeks to identify potential impacts of climate-related government policies, which often target specific sectors.

For purposes of the Outlook, a proxy cost on energy-related CO2 emissions is assumed, based on regional considerations and relative levels of economic development, and by 2050, reaches up to $150 per metric ton for OECD nations and up to $100 per metric ton for non-OECD nations.

China and other leading non-OECD nations are expected to trail OECD policy initiatives.

Nevertheless, as people and nations look for ways to reduce risks of global climate change, they will continue to need practical solutions that do not jeopardize the affordability or reliability of the energy they need.

The Corporation continues to monitor the updates to the NDCs that nations provided around COP 26 in Glasgow in November 2021 as well as other policy developments in light of net-zero ambitions recently formulated by some nations.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Corporation continues to monitor the updates to the NDCs that nations provided around COP 27 in Egypt in November 2022 as well as other policy developments in light of net-zero ambitions formulated by some nations.

The information provided in the Outlook includes ExxonMobil’s internal estimates and projections based upon internal data and analyses as well as publicly available information from external sources including the International Energy Agency.

Leading the Drive to Net Zero

The company plans to play a leading role in the energy transition by leveraging its core capabilities to meet society’s needs for products essential for modern life, while addressing the challenge of climate change.

The Corporation announced its ambition to achieve net-zero emissions from its operated assets by 2050 (Scope 1 and 2 greenhouse gas emissions) and is taking a comprehensive approach centered on developing detailed emission-reduction roadmaps for major operated assets.

The company’s roadmap approach identifies greenhouse gas emission-reduction opportunities and the investment and future policy needs required to achieve net-zero.

The roadmaps are tailored to account for facility configuration and maintenance schedules, and they will be updated as technologies and policies evolve.

Net-zero roadmaps for major assets, covering about 90% of the company’s greenhouse gas emissions, are scheduled to be completed by year-end 2022, and the remainder in 2023.

Our strategy uses our advantages in scale, integration, technology and people to build globally competitive businesses that lead industry in earnings and cash flow growth across a broad range of scenarios.

The company’s plans to reduce greenhouse gas emissions through 2030 compared to 2016 levels support its net-zero ambition.

The plans are expected to result in a 20-30% reduction in corporate-wide greenhouse gas intensity, including reductions of 40-50% in upstream intensity, 70-80% in methane intensity and 60-70% in flaring intensity.

These plans include actions that are expected to reduce absolute corporate-wide greenhouse gas emissions by approximately 20%, including an estimated 70% reduction in methane emissions, 60% reduction in flaring emissions and 30% reduction in upstream emissions.

ExxonMobil established its Low Carbon Solutions business in early 2021, leveraging its unique combination of capabilities such as geophysics expertise and complex project management, to establish a new business in carbon capture and storage, hydrogen, and biofuels to accelerate emission reductions for customers and in its existing businesses.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Progress Reducing Emissions

The Corporation’s strategy seeks to maximize the advantages of our scale, business integration, leading technology, functional excellence, and our people to build globally competitive businesses that lead industry in earnings and cash flow growth across a range of future scenarios.

We strive to play a leading role in the energy transition, bringing to bear these same advantages while retaining investment flexibility across a portfolio of evolving opportunities to grow shareholder value.

With advances in technology and the support of clear and consistent government policies, we aim to achieve net-zero operated Scope 1 and 2 greenhouse gas emissions by 2050.

To this end, we have taken a comprehensive approach to create greenhouse gas emission-reduction roadmaps for our major operated assets.

The roadmaps build on the company’s 2030 emission-reduction plans and, notably, include reaching net-zero emissions (Scopes 1 and 2) in our unconventional Permian Basin operated assets by 2030.

We completed these roadmaps in 2022.

Many of the required reduction steps are unaffordable with today's technology and policy support.

We plan to update the roadmaps as needed to reflect technology, policy, and other necessary developments, including the development and acquisition of major operated assets.

Compared to 2016 levels, our 2030 emission-reduction plans include a 20-30 percent reduction in corporate-wide greenhouse gas intensity, 40-50 percent reduction in upstream greenhouse gas intensity, 70-80 percent reduction in company-wide methane intensity, and 60-70 percent reduction in corporate-wide hydrocarbon flaring intensity.

In achieving these objectives, we also expect to see absolute reduction in:

• Corporate-wide greenhouse gas emissions by approximately 20 percent;

• Upstream greenhouse gas emissions of approximately 30 percent;

• Corporate-wide hydrocarbon flaring of approximately 60 percent;

• Corporate-wide methane emissions by approximately 70 percent;

• World Bank Zero Routine Flaring by 2030.

These emission-reduction plans cover Scope 1 and 2 emissions from assets we operate.

Since formally launching ExxonMobil’s Low Carbon Solutions business in early 2021, the Corporation has significantly grown the pipeline of emission-reduction opportunities in carbon capture and storage, hydrogen, and lower-emission fuels.

Low Carbon Solutions leverages the Corporation’s unique combination of existing assets, technical capabilities, project management skills, and broad relationships with industry and governments to accelerate emission reductions for customers and help to reduce emissions in our existing businesses.

The Corporation plans to invest in initiatives to lower greenhouse gas emissions.

A significant focus is on scaling up carbon capture and storage, hydrogen, and biofuels.

Stronger policy further accelerates development and deployment of lower-emission technologies, and would provide ExxonMobil additional investment opportunities to reduce greenhouse gas emissions.

The company's robust research and development process, continued evaluation of emerging technologies, and global collaborations will be key to identifying and growing lower-emission opportunities.

During the start-up phase, the Low Carbon Solutions business will be reflected in Corporate and Financing.

These investments are designed to reduce emissions in the company’s operations and are also directed toward reducing others’ emissions through commercializing and scaling carbon capture and storage, hydrogen, and lower-emission fuels.

Policy support, along with technology advancements, are important to the development and deployment of lower-emission technologies necessary for a net-zero future.

Recent Business Environment

In early 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects.

On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products.

This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.

Demand for petroleum and petrochemical products has continued to recover through 2021, with the Corporation's financial results benefiting from stronger prices and margins, notably prices for crude oil and natural gas as well as Chemical product margins.

The rate and pace of recovery, however, has varied across geographies and business lines, with Downstream margins only reaching the lower end of the 10-year range late in 2021 and jet demand continuing to lag.

The Corporation continues to closely monitor industry and economic conditions amid this uneven global recovery from the COVID-19 pandemic which has brought unprecedented uncertainties to near-term economic outlooks.

The general rate of inflation across major countries of operation experienced a brief decline in the initial stage of the COVID-19 pandemic.

However inflation rates increased in 2021 across major economies, with some regions experiencing multi-decade highs, largely reflecting overall imbalances between supply and demand recoveries from the pandemic.

The underlying factors include, but are not limited to, global supply chain disruptions, shipping bottlenecks, labor market constraints, and side effects from monetary and fiscal expansions.

The global economic recovery remains uneven, with uncertainties remaining.

Prices for services and materials continue to evolve in response to fast-changing commodity markets, industry activities, as well as government policies, impacting operating and capital costs.

The Corporation closely monitors market trends and works to mitigate cost impacts in all price environments through its economies of scale in global procurement, efficient project management practices, and general productivity improvements.

Organizational changes implemented over the past several years enabled the Corporation to realize nearly $5 billion of structural cost savings 1 versus 2019, leveraging increased operational efficiencies and reduced overhead costs.

Included in these savings is the completion of the workforce reduction programs, announced in late 2020 and early 2021, which are estimated to generate savings of approximately $2 billion per year compared to 2019 from lower employee and contractor costs.

Prior to the COVID-19 pandemic, many companies in the industry invested below the levels needed to maintain or increase production capacity to meet anticipated demand.

During the COVID-19 pandemic, this decline in investments accelerated as industry revenue collapsed resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered.

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, these reductions, 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.

Demand for petroleum and petrochemical products grew in 2022, with the Corporation's financial results benefiting from stronger prices and margins, notably for crude oil and natural gas as well as refining products.

The rate and pace of recovery, however, has varied across geographies and business lines, with industry Chemical margins falling below the bottom of the 10-year range late in 2022 reflecting weakening global demand and capacity additions.

Commodity and product prices are expected to remain volatile given the current global economic uncertainty and geopolitical events affecting supply and demand.

The general rate of inflation across major countries experienced a brief decline in the initial stage of the COVID-19 pandemic, before starting to increase steadily in 2021 due to an imbalance in supply and demand.

The underlying factors include, but are not limited to, time cycle of capacity investments, supply chain disruptions, shipping bottlenecks, labor constraints, and side effects from monetary and fiscal expansions.

Inflationary pressure intensified in 2022 with additional impacts from the Russia-Ukraine conflict, and currently remains elevated despite policy tightening by major central banks and a moderating pace of world economic expansion.

The Corporation closely monitors market trends and works to mitigate both operating and capital cost impacts in all price environments.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Organizational changes implemented over the past several years enabled the Corporation to realize $7 billion of structural cost savings (1) versus 2019, through increased operational efficiencies and reduced overhead costs.

Included in these savings is the completion of the workforce reduction programs, which are estimated to generate savings of approximately $2 billion per year compared to 2019 from lower employee and contractor costs.

The company continues to take actions to streamline its business structure to improve effectiveness and reduce costs.

1 unchanged sentence

(1) Refer to Frequently Used Terms for definition of structural cost savings.

Russia-Ukraine Conflict

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 (refer to Note 2 for further information on Russia).

While the Corporation’s affiliate was in force majeure due to the impact of global sanctions, it continued to make concerted attempts to engage in good-faith exit discussions with the Russian government and all Sakhalin partners.

The Corporation remained focused on safety of people, protection of the environment, and integrity of operations.

Effective October 14, through two decrees the Russian government unilaterally terminated the Corporation’s interests in Sakhalin, transferring operations to a Russian operator.

The Corporation’s fourth-quarter results include an after-tax benefit of $1.1 billion largely reflecting the impact of the expropriation on the company’s various obligations related to Sakhalin.

The Corporation's exit from the project results in approximately 150 million oil-equivalent barrels no longer qualifying as proved reserves at year-end 2022.

The Corporation holds a 25 percent interest in Tengizchevroil, LLP (TCO), which operates the Tengiz and Korolev oil fields in Kazakhstan, and a 16.8 percent working interest in the Kashagan field in Kazakhstan.

Oil production from those operations is exported through the Caspian Pipeline Consortium (CPC), in which the Corporation holds a 7.5 percent interest.

CPC traverses parts of Kazakhstan and Russia to tanker-loading facilities on the Russian coast of the Black Sea.

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 from its operations in Kazakhstan.

For reference, after-tax earnings related to the Corporation’s interests in Kazakhstan in 2022 were approximately $2.5 billion, and its share of combined oil and gas production was approximately 246 thousand oil-equivalent barrels per day.

Additional European Taxes on the Energy Sector

On October 6, 2022, European Union (“EU”) Member States adopted an EU Council Regulation which, along with other measures, introduced a new tax described as an emergency intervention to address high energy prices.

This regulation imposed a mandatory tax on certain companies active in the crude petroleum, coal, natural gas, and refinery sectors.

The regulation required Member States to levy a minimum 33 percent tax on in-scope companies’ 2022 and/or 2023 “surplus profits", defined in the regulation as taxable profits exceeding 120 percent of the annual average profits during the 2018-2021 period.

EU Member States were required to implement the tax, or an equivalent national measure, by December 31, 2022.

The enactment of these regulations by Member States resulted in an after-tax charge of approximately $1.8 billion to the Corporation’s fourth-quarter 2022 results, mainly reflected in the line “Income tax expense (benefit)” on the Consolidated Statement of Income.

The future impact of this regulation and other measures directed at the energy sector which were imposed by EU Member States and the UK over the last few months could be a reduction to earnings of up to $2 billion depending on commodity prices and levels of taxable income.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

8 unchanged sentences

The Upstream capital program continues to prioritize low cost-of-supply opportunities.

In addition to continued development of Guyana, Brazil, and the Permian Basin, ExxonMobil has a strong pipeline of development projects.

Most notable are our LNG developments in Mozambique, Papua New Guinea, and the Golden Pass LNG facility.

ExxonMobil has a strong pipeline of development projects including continued growth in Guyana, Brazil, the Permian Basin, as well as LNG expansion opportunities in Qatar, Mozambique, Papua New Guinea, and the United States.

The Corporation anticipates several projects will come online over the next few years providing additional production capacity.

2 unchanged sentences

reservoir performance;

performance of enhanced oil recovery projects;

regulatory changes;

6 unchanged sentences

Risk Factors.

ExxonMobil believes prices over the long term will continue to be driven by market supply and demand, with the demand side largely being a function of general economic activities, alternative energy sources, levels of prosperity, technology advances, consumer preference and government policies.

On the supply side, prices may be significantly impacted by political events, the actions of OPEC and other large government resource owners, and other factors.

To manage the risks associated with price, ExxonMobil tests the resiliency of its annual plans and major investments across a range of price scenarios.

ExxonMobil believes prices over the long term will continue to be driven by market supply and demand, with the demand side largely being a function of general economic activities, levels of prosperity, technology advances, consumer preference and government policies.

On the supply side, prices may be significantly impacted by political events, the actions of OPEC and other large government resource owners, alternative energy sources, and other factors.

Key Recent Events

Significant progress was made on key new developments in Guyana, Brazil, the Permian Basin, and Mozambique during 2021.

Exploration success continued with additional discoveries increasing the estimated recoverable resource on the Stabroek block.

The Liza Unity floating production, storage and offloading vessel arrived in Guyanese waters in late 2021 and started production in February 2022.

In Payara, the third project, development drilling activities started in late 2021 and it remains on schedule for 2024 start-up.

Yellowtail is the fourth and largest world-class development project and is expected to achieve first oil in 2025, following issuance of the production license.

Production volumes averaged about 460 thousand oil-equivalent barrels per day (koebd) in 2021, nearly 100 koebd year-on-year production increase which exceeded expectations.

Significant progress was made on key new developments during 2022.

Exploration success continued with 10 additional discoveries in 2022 in the Stabroek block.

The Liza Phase 2 Unity floating production, storage and offloading vessel started production in February 2022, and our combined Liza Phase 1 and 2 developments produced above previous expectations, averaging more than 360 thousand oil-equivalent barrels per day in the fourth quarter.

On Payara, the third project, development drilling continued and anticipated start-up timing has been accelerated to year-end 2023.

Yellowtail is the fourth and largest world-class development project and is expected to achieve first oil in 2025.

Development work is progressing on the Bacalhau Phase 1 project.

Production volumes averaged about 550 thousand oil-equivalent barrels per day (koebd) in 2022, approximately 90 koebd higher than the previous year.

The Corporation was successful in increasing drilling performance and continuing to improve capital efficiency.

In December, ExxonMobil announced plans to achieve net-zero greenhouse gas emissions (Scope 1 and 2) by 2030 from our unconventional operations in the Permian Basin.

ExxonMobil announced its Final Investment Decision for the Bacalhau Phase 1 development in June 2021 with start-up planned for 2024.

The Area 4 Coral South Floating LNG (FLNG) development continues as planned, targeting start-up in 2022, making Mozambique an LNG exporter.

The Coral Sul FLNG vessel began tow to field in November 2021.

ExxonMobil previously announced plans to achieve net-zero greenhouse gas emissions (Scope 1 and 2) from our operated unconventional operations in the Permian Basin by 2030.

Towards this objective, we advanced several emissions-reduction initiatives in 2022 including elimination of all routine flaring (1) , progress with pneumatic device replacement, electrification of equipment and enhancements to methane emissions detection technology.

ExxonMobil continued work to expand its LNG portfolio and secured participation in the Qatar North Field East project, which will increase ExxonMobil’s participation in Qatar LNG production from 52 to 60 million metric tons per year.

The Coral South Floating LNG development began production in October 2022 as the first development in Mozambique’s Rovuma Basin, and is expected to produce up to 3.4 million metric tons of LNG per year.

The company also completed key commercial milestones to begin the Papua New Guinea expansion, and the Golden Pass LNG project remains on schedule for 2024 start-up in the U.S.

(1) References to routine flaring herein are consistent with the World Bank's Zero Routine Flaring Reduction Partnership's (GGFRP) principle of routine flaring, and excludes safety and non-routine flaring.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Upstream Financial Results

2021 2020 2019

(millions of dollars) 2022 2021 2020

7 unchanged sentences

Total (2,939) (543) (19,694)

Earnings (loss) excluding Identified Items (1)

Earnings (loss) excluding Identified Items (1) (Non-GAAP)

United States 11,429 3,926 (2,293)

1 unchanged sentence

Total 39,418 16,318 (336)

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

2022 Upstream Earnings Factor Analysis

(millions of dollars)

Price – Higher realizations increased earnings by $14,960 million.

Volume – Unfavorable volume and mix effects decreased earnings by $340 million.

Other – All other items increased earnings by $2,040 million, primarily driven by lower expenses of $1,360 million and one-time favorable tax items.

Identified Items (1) – 2020 $(19,694) million loss primarily impairments of dry gas assets;

2021 $(543) million loss as a result of impairments of $(752) million and contractual provisions of $(250) million, partly offset by a $459 million gain from the U.K.

Central and Northern North Sea divestment.

Price – Higher realizations increased earnings by $21,290 million reflecting tight supply and recovering demand, and favorable mark-to-market impacts of $2,800 million.

Volume/Mix – Volume and mix effects decreased earnings by $110 million.

The earnings benefit from volume growth in Guyana and the Permian was offset by the volume loss from divestments, the Russia expropriation, and other impacts including weather-related downtime.

Other – All other items decreased earnings by $880 million as strong cost control partly offset impacts from inflation and increased activity.

Identified Items (1) – 2021 $(543) million loss as a result of impairments of $(752) million and contractual provisions of $(250) million, partly offset by a $459 million gain from the U.K Central and Northern North Sea divestment;

2022 $(2,939) million loss mainly driven by the Russia expropriation $(2,185) million and impacts from additional European taxes $(1,415) million, partly offset by gains of $886 million on the sale of the Romania, U.S.

Barnett Shale, and XTO Energy Canada assets.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

2 unchanged sentences

(millions of dollars)

Price – Lower realizations reduced earnings by $11,210 million.

Volume – Unfavorable volume and mix effects decreased earnings by $300 million.

Other – All other items increased earnings by $1,170 million, primarily driven by lower expenses of $960 million.

Identified Items (1) – 2019 $4,434 million gain primarily the $3,700 million gain from the Norway non-operated divestment;

2020 $(19,694) million loss primarily impairments of dry gas assets.

Price – Higher realizations increased earnings by $14,960 million.

Volume/Mix – Unfavorable volume and mix effects decreased earnings by $340 million.

Other – All other items increased earnings by $2,040 million, primarily driven by lower expenses of $1,360 million and one-time favorable tax items.

Identified Items (1) – 2020 $(19,694) million loss primarily reflected impairments of dry gas assets;

2021 $(543) million loss was as a result of impairments of $(752) million and contractual provisions of $(250) million, partly offset by a $459 million gain from the U.K Central and Northern North Sea divestment.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

1 unchanged sentence

2022 2021 2020

Production of crude oil, natural gas liquids, bitumen and synthetic oil

Net production (thousands of barrels daily)

Net production of crude oil, natural gas liquids, bitumen and synthetic oil

(thousands of barrels daily)

United States 776 721 685

5 unchanged sentences

Worldwide 2,354 2,289 2,349

Natural gas production available for sale

Net production (millions of cubic feet daily)

Net natural gas production available for sale

(millions of cubic feet daily)

United States 2,551 2,746 2,691

5 unchanged sentences

Worldwide 8,295 8,537 8,471

(thousands of oil-equivalent barrels daily)

Oil-equivalent production (2)

(thousands of oil-equivalent barrels daily)

3,737 3,712 3,761

1 unchanged sentence

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Liquids production – 2.3 million barrels per day decreased 60 thousand barrels per day reflecting higher demand and growth, more than offset by entitlements, decline, and divestments.

Natural gas production available for sale – 8.5 billion cubic feet per day increased 66 million cubic feet per day from 2020, reflecting higher demand, partly offset by divestments and Groningen production limit.

Liquids production – 2.3 million barrels per day decreased 37 thousand barrels per day reflecting the impacts of government mandates, divestments, and lower demand, partly offset by growth and lower downtime.

Natural gas production available for sale – 8.5 billion cubic feet per day decreased 923 million cubic feet per day from 2019, reflecting divestments, lower demand, and higher downtime, partly offset by growth.

Upstream Additional Information

6 unchanged sentences

Divestments (71) (24)

Demand / Growth / Other 65 12

Growth / Other 94 65

Current Year 3,737 3,712

(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

2022 versus 2021

2022 production of 3.7 million oil-equivalent barrels per day increased 25 thousand barrels per day from 2021.

Growth in the Permian and Guyana, and easing government-mandated curtailments more than offset the impacts from divestments, the Russia expropriation, and lower entitlements due to higher prices.

2021 versus 2020

2021 production of 3.7 million oil-equivalent barrels per day decreased 49 thousand barrels per day from 2020, as higher demand and growth were more than offset by lower entitlements due to higher prices, decline, and divestments.

Listed below are descriptions of ExxonMobil’s volumes reconciliation factors, which are provided to facilitate understanding of the terms.

8 unchanged sentences

Such factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

Government Mandates are changes to ExxonMobil's sustainable production levels due to temporary non-operational production limits imposed by governments, generally upon a sector, type or method of production.

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.

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.

Demand, Growth and Other factors comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil.

Growth and Other factors comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil.

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.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

ExxonMobil’s Downstream continues to be one of the largest, most integrated businesses among international oil companies (IOC), with significant positions across the full value chain including logistics, trading, refining, and marketing.

The Corporation has a well-established presence in the Americas, Europe, and Asia Pacific.

Downstream strategies competitively position the business across a range of market conditions.

These strategies focus on providing high-value and lower-emission products that customers need to power global mobility;

leveraging strong operations performance;

capitalizing on integration across all ExxonMobil businesses;

maximizing value from advantaged technology and a robust pipeline of lower-emission opportunities;

and improving portfolio competitiveness and resilience with advantaged investments and divestments.

With its large manufacturing footprint, ExxonMobil’s Downstream earnings are closely tied to industry refining margins.

Refining margins improved steadily throughout 2021, recovering from historic lows in 2020 driven by COVID-19 pandemic demand impacts.

By the end of 2021, refining margins had recovered to the bottom of the 10-year historical band from 2010 to 2019.

Demand for gasoline and diesel had essentially recovered to normal levels by the end of 2021, while jet fuel demand remained below historical levels reflecting continued COVID-19 restrictions.

Refining margins are anticipated to further improve in the near term as the recovery in international travel increases demand for jet fuel, and strong chemical demand persists for products essential to modern life.

With improving market conditions, we restarted projects in Beaumont, Texas and Singapore to further strengthen the portfolio by increasing production of high-value fuels and lubricants.

Refining margins are largely driven by differences in commodity prices and are a function of the difference between what a refinery pays for its raw materials and the market prices for the range of products produced.

Energy Products

ExxonMobil's Energy Products is one of the largest, most integrated businesses of its kind among international oil companies, with significant representation across the entire fuels value chain including refining, logistics, trading, and marketing.

This segment brings fuels and aromatics value chains together, recognizing their history of working closely to optimize manufacturing sites, and includes catalysts and licensing.

With the largest refining footprint among international oil companies, ExxonMobil’s Energy Products earnings are closely tied to industry refining margins.

Crude oil and many products are widely traded with published prices, including those quoted on multiple exchanges around the world (e.g.

New York Mercantile Exchange and Intercontinental Exchange).

Prices for these commodities are determined by the global marketplace and are influenced by many factors, including global and regional supply/demand balances, inventory levels, industry refinery operations, import/export balances, currency fluctuations, seasonal demand, weather, and political climate.

ExxonMobil’s outlook is that industry refining margins will remain volatile subject to shifting consumer demand as well as capacity changes from refinery additions and closures.

ExxonMobil’s significant integration both within the Downstream value chains including lubricants, logistics, trading, refining, and marketing, as well as with Upstream and Chemical, improves our ability to generate shareholder value in a variety of market conditions.

ExxonMobil continues to grow fuels product sales in new markets near major production assets with continued progress in the Mexico and Indonesia markets.

Similarly, the lubricants business continues to grow, especially in Asia Pacific and the industrial sector, leveraging world class brands and integration with basestocks refining capability.

Through the Mobil brands, such as Mobil 1, ExxonMobil is the worldwide leader in synthetic motor oils.

The Downstream business is characterized by periods of margin volatility resulting from short-term and long-term supply and demand fluctuations.

Proposed carbon policy and other climate-related regulations in many countries have the potential to increase industry volatility, both favorably and unfavorably.

ExxonMobil continually evaluates the Downstream portfolio during all phases of the business cycle, which has resulted in numerous asset divestments and terminal conversions over the past decade to strengthen overall profitability and resiliency.

When investing in the Downstream, ExxonMobil remains focused on projects resilient across a broad range of market conditions to support capturing value when opportunities emerge.

While industry refining margins significantly impact Energy Products earnings, strong operations performance, product mix optimization, and disciplined cost control are also critical to strong financial performance.

Refining margins increased sharply in 2022, well above the top of the 10-year historical range (2010–2019).

Demand for gasoline and diesel recovered to pre-pandemic levels, while jet fuel demand remained below historical levels reflecting continued COVID-19 impacts.

Refinery shutdowns and lack of investments driven by the pandemic reduced industry capacity and resulted in a tight market.

Refining margins are anticipated to remain volatile in the near term as a result of significant global factors including China demand recovery and export quotas, recession fears, impacts from price caps and sanctions, low inventory levels, and new refining capacity additions.

Key Recent Events

Lower-emission fuels :

ExxonMobil announced plans for more than 40 thousand barrels per day of lower-emission fuels by 2025, including a new renewable diesel unit at the Strathcona refinery, and purchase agreements with Global Clean Energy in the U.S.

and Biojet AS in Norway.

Terminal conversions :

ExxonMobil converted the Slagen, Norway and Altona, Australia refineries into product import terminals capable of serving existing markets.

Additionally, Refining New Zealand announced conversion of its refinery (in which ExxonMobil owns a 17% minority share) to a product import terminal in 2022.

Future capacity additions:

The company mechanically completed its Beaumont Refinery expansion.

This expansion will bring 250,000 barrels per day of crude distillation capacity to the market in first quarter 2023.

Strathcona Renewable Diesel Project:

Progressed 20,000 barrels per day renewable diesel project, culminating in final investment decision in January 2023 for the largest such facility in Canada.

Billings divestment ( 1) :

In October 2022, ExxonMobil and its affiliates reached an agreement with Par Pacific Holdings for the sale of the Billings Refinery and select midstream assets in Montana and Washington.

Italy Fuels divestment ( 1) :

In December 2022, ExxonMobil reached an agreement with Italiana Petroli to sell its interest in the Trecate Refinery joint venture, select midstream assets, and the fuels marketing business.

Esso Thailand divestment ( 1) :

In January 2023, ExxonMobil reached an agreement with Bangchak Corporation to sell its interest in Esso Thailand, which includes the Sriracha Refinery, select distribution terminals, and a network of Esso-branded retail stations.

(1) The Corporation expects the transactions to close in 2023.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Downstream Financial Results

2021 2020 2019

Energy Products Financial Results

(millions of dollars) 2022 2021 2020

5 unchanged sentences

United States (58) — (4)

(626) — (636)

Total (684) — (640)

Earnings (loss) excluding Identified Items (1)

Earnings (loss) excluding Identified Items (1) (Non-GAAP)

United States 8,398 668 (1,338)

7,252 (1,014) (594)

Total 15,650 (347) (1,932)

2021 Downstream Earnings Factor Analysis

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

2022 Energy Products Earnings Factor Analysis

(millions of dollars)

Margins – Increased earnings by $1,920 million as industry refining conditions improved.

Volume – Increased earnings by $100 million reflecting demand recovery and favorable mix.

Other – Increased earnings by $300 million due to lower expenses of $560 million, partly offset by unfavorable foreign exchange and LIFO impacts.

Identified Items (1) – 2020 $(859) million loss primarily as a result of impairments and unfavorable tax items.

Margins – Increased earnings by $14,360 million as industry refining conditions significantly improved from increased demand and low inventories, as well as stronger trading and marketing margins.

Volume/Mix – Increased earnings by $1,060 million reflecting improved product yields and higher throughput.

Other – Increased earnings by $570 million due to favorable foreign exchange and year-end inventory effects.

Identified Items (1) – 2022 $(684) million loss was driven by additional European taxes on the energy sector and impairments.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2020 Downstream Earnings Factor Analysis

2021 Energy Products Earnings Factor Analysis

(millions of dollars)

Margins – Decreased earnings by $3,820 million including the impact of weaker industry refining conditions.

Volume – Increased earnings by $370 million as manufacturing/yield improvement impacts were partly offset by weaker demand.

Other – Increased earnings by $900 million due to lower expenses of $1,290 million, partly offset by unfavorable LIFO inventory impacts of $410 million.

Identified Items (1) – 2020 $(859) million loss primarily as a result of impairments and unfavorable tax items.

Margins – Increased earnings by $1,360 million as industry refining conditions improved.

Volume/Mix – Decreased earnings by $90 million reflecting higher planned maintenance.

Other – Increased earnings by $320 million due to lower expenses, partly offset by unfavorable foreign exchange impacts.

Identified Items (1) – 2020 $(640) million loss was primarily as a result of impairments and unfavorable tax items.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Downstream Operational Results

2021 2020 2019

Refinery throughput (thousands of barrels daily)

Energy Products Operational Results

(thousands of barrels daily) 2022 2021 2020

Refinery throughput

United States 1,702 1,623 1,549

4 unchanged sentences

Worldwide 4,030 3,945 3,773

Petroleum product sales (2)

Energy Products sales (2)

United States 2,426 2,267 2,159

Canada 448 418 476

Europe 1,340 1,253 1,479

Asia Pacific 653 651 738

Other 464 419 467

2,921 2,863 2,704

Worldwide 5,347 5,130 4,863

Gasoline, naphthas 2,232 2,158 1,994

Heating oils, kerosene, diesel oils 1,749 1,751 1,867

Heating oils, kerosene, diesel 1,774 1,749 1,751

Aviation fuels 338 220 213

Heavy fuels 235 269 249

Specialty petroleum products 766 688 689

Other energy products 768 734 656

Worldwide 5,347 5,130 4,863

1 unchanged sentence

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Chemical Products

ExxonMobil is a leading global manufacturer and marketer of petrochemicals that support modern living.

ExxonMobil helps meet society’s evolving needs by providing a wide range of innovative, valuable product solutions in an efficient and responsible manner.

This is enabled by ExxonMobil’s proprietary technology combined with industry-leading scale and integration.

Chemical Products helps meet society’s evolving needs by providing a wide range of innovative, valuable products in an efficient and responsible manner.

This is supported by our unique combination of industry-leading scale and integration along with ExxonMobil’s proprietary technology, which is fundamental to producing performance products that enable lighter, more durable solutions that use less material, save energy, and reduce costs and waste.

These competitive advantages are underpinned by operational excellence, advantaged investments, and cost discipline.

In 2021, while many markets continued to be negatively impacted by COVID-19, demand for chemical products remained resilient in several key segments including food packaging, hygiene and medical.

Overall chemical industry margins improved compared to 2020 due to continued strong packaging demand and industry supply disruptions.

We were uniquely positioned to capture value from the market in 2021 due to our integration, enabling nimble feed and product optimization, and our advantaged global supply and logistics.

These, along with our outstanding reliability performance and continued structural cost savings, delivered record annual earnings.

Worldwide demand for chemicals is expected to grow faster than the economy as a whole, driven by global population growth, an expanding middle class, and improving living standards.

ExxonMobil’s integration with refining, together with our high-value performance products and unique project execution capability, enhances our ability to generate returns on investments across a range of market environments.

In 2021, ExxonMobil completed construction of our joint venture ethane cracker and associated derivative units near Corpus Christi, Texas.

The project started up in late 2021 below budget and ahead of schedule.

With improving market conditions, we also restarted other U.S.

Gulf Coast growth projects, including projects in Baytown, Texas and Baton Rouge, Louisiana that will support the growing demand for high-value chemicals products.

This segment includes olefins, polyolefins, and intermediates.

Over the long term, worldwide demand for chemicals is expected to grow faster than the economy as a whole, driven by global population growth, an expanding middle class, and improving living standards.

Chemical Products integration with refineries, performance product mix, and project execution capability improves returns on investments across a range of market environments.

In 2022, chemical industry margins decreased, falling below the 10-year historical range (2010-2019), reflecting bottom-of-cycle conditions in Asia Pacific, increased industry capacity, and the closure of the regional pricing disconnect between Asia and the Atlantic Basin.

Despite the decline in industry margins, Chemical Products earnings remained above the segment’s 10-year average, benefiting from strong reliability, expense management, and mix of performance products.

Key Recent Events

China investment :

ExxonMobil reached final investment decision to proceed with a multi-billion dollar chemical complex in the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province in China.

The facility will help meet expected demand growth for performance chemical products in China.

Polypropylene expansion :

ExxonMobil successfully started up a new polypropylene unit in Baton Rouge, Louisiana.

This increased capacity by 450,000 metric tons per year, meeting growing demand for high-performance, lightweight, and durable plastics.

Advanced recycling :

The Corporation is progressing construction of one of North America’s largest plastic waste advanced recycling facilities in Baytown, Texas, which is expected to start operations in 2022.

In addition, plans are underway for up to 500,000 metric tons annually of advanced recycling capacity to be added across multiple sites by 2026.

These investments enabled commercial volumes of certified circular polymers to be made available to the market in 2021.

Materia acquisition :

ExxonMobil acquired Materia, Inc., a technology company that has pioneered the development of a Nobel prize-winning technology for manufacturing a new class of materials.

The innovative materials can be used in a number of applications, including wind turbine blades, electric vehicle parts, sustainable construction, and anticorrosive coatings.

Santoprene divestment :

ExxonMobil Chemical Company sold its global Santoprene business to Celanese.

The sale included two manufacturing sites, one in the United States and one in the United Kingdom.

Chemical Financial Results

2021 2020 2019

ExxonMobil started up one of North America’s largest advanced recycling units at our integrated manufacturing complex in Baytown, Texas.

This facility uses proprietary technology to break down hard-to-recycle plastics and transform them into raw materials for new products.

It is capable of processing more than 80 million pounds of plastic waste per year, supporting a circular economy for post-use plastics and helping divert plastic waste currently sent to landfills.

Future capacity additions:

ExxonMobil is making additional, long-term chemical investments with our Chemical expansion in Baytown, Texas, which will produce performance chemicals such as Vistamaxx™ polymers and Elevexx™ linear alpha olefins, and in China, where we continue to progress construction of our multi-billion dollar chemical complex in the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Chemical Products Financial Results

(millions of dollars) 2022 2021 2020

6 unchanged sentences

Total — — (105)

Earnings (loss) excluding Identified Items (1)

Earnings (loss) excluding Identified Items (1) (Non-GAAP)

United States 2,328 3,697 1,286

2 unchanged sentences

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2021 Chemical Earnings Factor Analysis

2022 Chemical Products Earnings Factor Analysis

(millions of dollars)

Margins – Stronger margins increased earnings by $4,480 million driven by resilient demand and industry supply constraints.

Volume – Higher volumes increased earnings by $250 million on record production supported by exceptional reliability.

Other – All other items increased earnings by $360 million primarily as a result of favorable foreign exchange, lower expenses, and favorable LIFO impacts.

Identified Items (1) – 2020 $(114) million loss primarily as a result of impairments;

2021 $630 million gain as a result of the Santoprene divestment.

2020 Chemical Earnings Factor Analysis

Margins – Lower margins decreased earnings by $3,030 million with normalization of regional prices during the year, increased supply, and bottom-of-cycle conditions in Asia Pacific.

Volume/Mix – Product mix decreased earnings by $170 million.

Other – All other items decreased earnings by $250 million primarily as a result of higher expenses from production capacity additions, and foreign exchange effects from a stronger U.S.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2021 Chemical Products Earnings Factor Analysis

(millions of dollars)

Margins – Stronger margins increased earnings by $4,370 million.

Volume – Lower volumes decreased earnings by $150 million.

Volume/Mix – Higher volumes increased earnings by $130 million.

Other – All other items increased earnings by $130 million primarily as a result of lower expenses.

Identified Items (1) – 2020 $(114) million loss primarily as a result of impairments.

Identified Items (1) – 2020 $(105) million loss was driven by impairments.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Chemical Operational Results

2021 2020 2019

Chemical Products Operational Results

(thousands of metric tons) 2022 2021 2020

Chemical prime product sales (2)

United States 7,270 7,017 6,602

11,897 12,126 12,186

Worldwide 19,167 19,142 18,787

(2) Data reported net of purchases/sales contracts with the same counterparty.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Specialty Products

ExxonMobil Specialty Products is a combination of business units that manufacture and market a range of performance products including high-quality lubricants, basestocks, waxes, synthetics, elastomers, and resins.

Leveraging ExxonMobil’s proprietary technologies, Specialty Products focuses on providing performance products that help customers improve efficiency in the transportation and industrial sectors.

Demand for lubricants is expected to remain strong and grow in the industrial, aviation, and marine sectors.

Specialty Products is well-positioned to help meet that demand through advantaged projects that leverage ExxonMobil's integration and world-class brands, such as Mobil 1.

In 2021, ExxonMobil completed the acquisition of Materia, a U.S.-based specialty chemical company.

This business, built on proprietary technology, is now a part of the Specialty Products segment.

Materia’s new class of polymers has properties well-suited for infrastructure, oil and gas, and mobility segments, notably wind turbine blades, steel rebar replacement, and anti-corrosion paints.

Plans are being progressed to bring the product to market at scale.

Key Recent Events

Singapore Resid Upgrade Project:

Progressed project which will leverage two proprietary technologies to upgrade fuel oil to Group II lubes and clean products, further strengthening ExxonMobil’s position as the largest basestock producer in the world.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Specialty Products Financial Results

(millions of dollars) 2022 2021 2020

Earnings (loss) (U.S.

United States 1,190 1,452 571

1,225 1,807 630

Total 2,415 3,259 1,201

Identified Items (1)

United States — 498 —

(40) 136 (228)

Total (40) 634 (228)

Earnings (loss) excluding Identified Items (1) (Non-GAAP)

United States 1,190 954 571

1,265 1,672 858

Total 2,455 2,625 1,429

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

2022 Specialty Products Earnings Factor Analysis

(millions of dollars)

Margins – Margins decreased earnings by $220 million driven by higher feed costs and energy prices.

Volume/Mix – Higher volumes increased earnings by $20 million on robust demand.

Other – All other items increased earnings by $30 million primarily as a result of positive year-end inventory effects, offset by increased expenses from higher maintenance and inflation, and unfavorable foreign exchange impacts.

Identified Items (1) – 2021 $634 million gain resulted from the Santoprene divestment;

2022 $(40) million loss from impairments.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2021 Specialty Products Earnings Factor Analysis

(millions of dollars)

Margins – Stronger margins, particularly for basestocks, increased earnings by $680 million.

Volume/Mix – Higher volumes increased earnings by $300 million.

Other – All other items increased earnings by $220 million primarily as a result of lower expenses.

Identified Items (1) – 2020 $(228) million loss was driven by impairments;

2021 $634 million gain came from the Santoprene divestment.

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products Operational Results

(thousands of metric tons) 2022 2021 2020

Specialty Products sales (2)

United States 2,049 1,943 1,897

2 unchanged sentences

(2) Data reported net of purchases/sales contracts with the same counterparty.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

2 unchanged sentences

Corporate activities include general administrative support functions, financing and insurance activities.

Low Carbon Solutions activities are included in Corporate and Financing as the business continues to mature through commercialization and deployment of technology.

Low Carbon Solutions activities will be included in Corporate and Financing until the business is established with a material level of assets and customer contracts.

Corporate and Financing Financial Results

2021 2020 2019

(millions of dollars) 2022 2021 2020

3 unchanged sentences

302 (64) (361)

Earnings (loss) excluding Identified Items (1)

Earnings (loss) excluding Identified Items (1) (Non-GAAP)

(1,965) (2,572) (2,935)

(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.

Corporate and Financing expenses were $1,663 million in 2022 compared to $2,636 million in 2021, with the decrease mainly due to lower pension-related expenses, favorable one-time tax impacts, and lower financing costs.

Corporate and Financing expenses were $2,636 million in 2021 compared to $3,296 million in 2020, with the decrease mainly due to the absence of prior year severance costs and lower financing costs.

Corporate and Financing expenses were $3,296 million in 2020 compared to $3,017 million in 2019, with the increase mainly due to higher financing costs and employee severance costs, partly offset by lower corporate costs.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Sources and Uses of Cash

2021 2020 2019

(millions of dollars) 2022 2021 2020

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Increase/(decrease) in cash and cash equivalents 22,863 2,438 1,275

(December 31)

Total cash and cash equivalents 6,802 4,364 3,089

Total cash and cash equivalents (December 31) 29,665 6,802 4,364

Total cash and cash equivalents were $29.7 billion at the end of 2022, up $22.9 billion from the prior year.

The major sources of funds in 2021 were net income including noncontrolling interests of $23.6 billion, the adjustment for the noncash provision of $20.6 billion for depreciation and depletion, contributions from operational working capital of $4.2 billion, proceeds from asset sales of $3.2 billion, and other investing activities of $1.5 billion.

The major uses of funds included a debt reduction of $19.7 billion, spending for additions to property, plant and equipment of $12.1 billion, dividends to shareholders of $14.9 billion, and additional investments and advances of $2.8 billion.

The major sources of funds in 2022 were net income including noncontrolling interests of $57.6 billion, the adjustment for the noncash provision of $24.0 billion for depreciation and depletion, proceeds from asset sales of $5.2 billion, and other investing activities of $1.5 billion.

The major uses of funds included spending for additions to property, plant and equipment of $18.4 billion;

dividends to shareholders of $14.9 billion;

the purchase of ExxonMobil stock of $15.2 billion;

a debt reduction of $7.2 billion;

and additional investments and advances of $3.1 billion.

Total cash and cash equivalents were $6.8 billion at the end of 2021, up $2.4 billion from the prior year.

The major sources of funds in 2020 were the adjustment for the noncash provision of $46.0 billion, a net debt increase of $20.1 billion, proceeds from asset sales of $1.0 billion, and other investing activities of $2.7 billion.

The major uses of funds included a net loss including noncontrolling interests of $23.3 billion, spending for additions to property, plant and equipment of $17.3 billion, dividends to shareholders of $14.9 billion, and additional investments and advances of $4.9 billion.

The major uses of funds included a debt reduction of $19.7 billion;

spending for additions to property, plant and equipment of $12.1 billion;

dividends to shareholders of $14.9 billion;

and additional investments and advances of $2.8 billion.

The Corporation has access to significant capacity of long-term and short-term liquidity.

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 with changes in outstanding commercial paper between periods included in the Consolidated Statement of Cash Flows.

The Corporation took steps to strengthen its balance sheet in 2021, reducing debt by nearly $20 billion and ending the year with $47.7 billion in total debt.

Internally generated funds are expected to cover the majority of financial requirements, supplemented by long-term and short-term debt.

On December 31, 2022, the Corporation had undrawn short-term committed lines of credit of $0.3 billion and undrawn long-term lines of credit of $1.2 billion.

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reservoir performance;

performance of enhanced oil recovery projects;

regulatory changes;

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price effects on production sharing contracts;

and changes in the amount and timing of investments that may vary depending on the oil and gas price environment.

changes in the amount and timing of investments that may vary depending on the oil and gas price environment;

and international trade patterns and relations.

The Corporation’s cash flows are also highly dependent on crude oil and natural gas prices.

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The Corporation plans to invest in the range of $23 billion to $25 billion in 2023.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Actual spending could vary depending on the progress of individual projects and property acquisitions.

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Further, due to its financial strength and diverse portfolio of opportunities, the risk associated with failure or delay of any single project would not have a significant impact on the Corporation’s liquidity or ability to generate sufficient cash flows for operations and its fixed commitments.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.

Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses.

In light of commodity price volatility, and depending on the pace of demand recovery, the Corporation's planned divestment program could be adversely affected by fewer financially suitable buyers.

This could result in a slowing of the pace of divestments, certain assets being sold at a price below current book value, or impairment charges if the likelihood of divesting certain assets increases.

Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time.

Key criteria for evaluating acquisitions include potential for future growth and attractive current valuations.

Key criteria for evaluating acquisitions include strategic fit, potential for future growth and attractive current valuations.

Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.

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The major source of funds was net income including noncontrolling interests of $57.6 billion, an increase of $34.0 billion.

The noncash provision for depreciation and depletion was $24.0 billion, up $3.4 billion from the prior year.

The adjustment for the net gain on asset sales was $1.0 billion, a decrease of $0.2 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was a reduction of $2.4 billion, compared to a reduction of $0.7 billion in 2021.

Changes in operational working capital, excluding cash and debt, decreased cash in 2022 by $0.2 billion.

Cash provided by operating activities totaled $48.1 billion in 2021, $33.5 billion higher than 2020.

The major source of funds was net income including noncontrolling interests of $23.6 billion, an increase of $46.8 billion.

The noncash provision for depreciation and depletion was $20.6 billion, down $25.4 billion from the prior year.

The adjustment for the net gain on asset sales was $1.2 billion, an increase of $1.2 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was a reduction of $0.7 billion, compared to an increase of $1.0 billion in 2020.

The adjustment for dividends received less than equity in current earnings of equity companies was a reduction of $0.7 billion, compared to a reduction of $1.0 billion in 2020.

Changes in operational working capital, excluding cash and debt, increased cash in 2021 by $4.2 billion.

Cash provided by operating activities totaled $14.7 billion in 2020, $15.0 billion lower than 2019.

Net income (loss) including noncontrolling interests was a loss of $23.3 billion, a decrease of $38.0 billion.

The noncash provision for depreciation and depletion was $46.0 billion, up $27.0 billion from the prior year, mainly due to asset impairments.

The noncash provision for deferred income tax benefits was $8.9 billion and also included impacts from asset impairments.

The adjustment for the net loss on asset sales was $4 million, a decrease of $1.7 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was an increase of $1.0 billion, compared to a reduction of $0.9 billion in 2019.

Changes in operational working capital, excluding cash and debt, decreased cash in 2020 by $1.7 billion.

Cash Flow from Investing Activities

Cash used in investing activities netted to $10.2 billion in 2021, $8.2 billion lower than 2020.

Spending for property, plant and equipment of $12.1 billion decreased $5.2 billion from 2020.

Cash used in investing activities netted to $14.7 billion in 2022, $4.5 billion higher than 2021.

Spending for property, plant and equipment of $18.4 billion increased $6.3 billion from 2021.

Proceeds from asset sales and returns of investments of $5.2 billion compared to $3.2 billion in 2021.

Additional investments and advances were $2.0 billion lower in 2021, while proceeds from other investing activities including collection of advances decreased by $1.2 billion.

Additional investments and advances were $0.3 billion higher in 2022, while proceeds from other investing activities including collection of advances were $1.5 billion during the year.

Cash used in investing activities netted to $10.2 billion in 2021, $8.2 billion lower than 2020.

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Proceeds from asset sales and returns of investments of $3.2 billion compared to $1.0 billion in 2020.

Additional investments and advances were $1.0 billion higher in 2020, while proceeds from other investing activities including collection of advances increased by $1.2 billion.

Additional investments and advances were $2.0 billion lower in 2021, while proceeds from other investing activities including collection of advances decreased by $1.2 billion.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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The addition to equity for earnings was $55.7 billion.

This was offset by reductions for distributions to ExxonMobil shareholders of $14.9 billion, all in the form of dividends.

This was offset by reductions for dividends to ExxonMobil shareholders of $14.9 billion.

Foreign exchange translation effects of $3.1 billion for the stronger U.S.

dollar reduced equity, and a $3.6 billion change in the funded status of the postretirement benefits reserves increased equity.

During 2021, Exxon Mobil Corporation suspended its share repurchase program used to offset shares or units settled in shares issued in conjunction with the company’s benefit plans and programs.

In 2022, the Corporation initiated a share repurchase program of up to $10 billion over 12 to 24 months.

During 2022, Exxon Mobil Corporation restarted its share repurchase program for up to $50 billion in shares through 2024, including the purchase of 162 million shares at a cost of $15 billion in 2022.

Cash flow from financing activities was $35.4 billion in 2021, $40.7 billion higher than 2020.

Dividend payments on common shares increased to $3.49 per share from $3.48 per share and totaled $14.9 billion.

During 2020, the Corporation issued $23.2 billion of long-term debt.

Total debt increased $20.7 billion to $67.6 billion at year-end.

ExxonMobil share of equity decreased $34.5 billion to $157.2 billion.

The reduction to equity for losses was $22.4 billion and the reduction for distributions to ExxonMobil shareholders of $14.9 billion, all in the form of dividends.

Foreign exchange translation effects of $1.8 billion for the weaker U.S.

dollar and a $1.0 billion change in the funded status of the postretirement benefits reserves increased equity.

During 2020, Exxon Mobil Corporation acquired 8 million shares of its common stock for the treasury.

Purchases were made to offset shares or units settled in shares issued in conjunction with the company’s benefit plans and programs.

Shares outstanding decreased from 4,234 million to 4,233 million at the end of 2020.

During 2021, the Corporation utilized cash to reduce debt by $19.7 billion.

ExxonMobil share of equity increased $11.4 billion to $168.6 billion.

The addition to equity for earnings was $23.0 billion.

This was offset by reductions for distributions to ExxonMobil shareholders of $14.9 billion, all in the form of dividends.

Foreign exchange translation effects of $0.9 billion for the stronger U.S.

dollar reduced equity, and a $3.8 billion change in the funded status of the postretirement benefits reserves increased equity.

During 2021, Exxon Mobil Corporation suspended its share repurchase program used to offset shares or units settled in shares issued in conjunction with the company’s benefit plans and programs.

Contractual Obligations

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These obligations mainly pertain to pipeline, manufacturing supply and terminal agreements.

The total obligation at year-end 2021 for take-or-pay and unconditional purchase obligations was $30,031 million.

Cash payments expected in 2022 and 2023 are $4,004 million and $3,560 million, respectively.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

The total obligation at year-end 2022 for take-or-pay and unconditional purchase obligations was $38.2 billion.

Cash payments expected in 2023 and 2024 are $3.8 billion and $3.5 billion, respectively.

The Corporation and certain of its consolidated subsidiaries were contingently liable at December 31, 2022 for guarantees relating to notes, loans and performance under contracts (Note 16).

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.

Where it is not possible to make a reasonable estimation of the maximum potential amount of future payments, future performance is expected to be either immaterial or have only a remote chance of occurrence.

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.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Financial Strength

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The table below shows the Corporation’s consolidated debt to capital ratios.

2021 2020 2019

Debt to capital (percent) 21.4 29.2 19.1

Net debt to capital (percent) 18.9 27.8 18.1

(percent) 2022 2021 2020

Debt to capital 16.9 21.4 29.2

Net debt to capital 5.4 18.9 27.8

Management views the Corporation’s financial strength to be a competitive advantage of strategic importance.

The Corporation’s financial position gives it the opportunity to access the world’s capital markets across a range of market conditions, and enables the Corporation to take on large, long-term capital commitments in the pursuit of maximizing shareholder value.

Industry conditions in 2020 led to lower realized prices for the Corporation’s products which resulted in substantially lower earnings and operating cash flow in comparison to 2019.

The Corporation took steps to strengthen its liquidity in 2020, including issuing $23.2 billion of long-term debt and implementing significant capital and operating cost reductions.

The Corporation ended 2020 with $67.6 billion in total debt.

Stronger prices and margins improved the Corporation's financial results in 2021.

The Corporation reduced debt by $19.9 billion and ended the year with $47.7 billion in total debt.

Stronger industry conditions in 2021 and 2022 enabled the Corporation to strengthen the balance sheet and return debt to pre-pandemic levels.

The Corporation reduced debt by $19.9 billion in 2021 and an additional $6.5 billion in 2022, ending the year with $41.2 billion in total debt.

Litigation and Other Contingencies

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Refer to Note 16 for additional information on legal proceedings and other contingencies.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

CAPITAL AND EXPLORATION EXPENDITURES

Capital and exploration expenditures (Capex) represents the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Income.

Capital and exploration expenditures (Capex) represent the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Income.

ExxonMobil’s Capex includes its share of similar costs for equity companies.

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(millions of dollars) 2022 2021

4,018 8,236 12,254 6,817 7,614 14,431

Downstream 1,000 1,095 2,095 2,344 1,877 4,221

Chemical 1,367 876 2,243 2,002 714 2,716

Upstream (including exploration expenses) 6,968 10,034 17,002 4,018 8,236 12,254

Energy Products 1,351 1,059 2,410 982 1,005 1,987

Chemical Products 1,123 1,842 2,965 1,200 825 2,025

Specialty Products 46 222 268 185 141 326

Other 59 — 59 3 — 3

Total 9,547 13,157 22,704 6,388 10,207 16,595

(1) Exploration expenses included.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Capex in 2022 was $22.7 billion, as the Corporation continued to pursue opportunities to find and produce new supplies of oil and natural gas to meet global demand for energy.

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Actual spending could vary depending on the progress of individual projects and property acquisitions.

Upstream spending of $12.3 billion in 2021 was down 15 percent from 2020, primarily in the U.S.

Permian Basin.

Investments in 2021 included the U.S.

Permian Basin and key development projects in Guyana and Brazil.

Upstream spending of $17.0 billion in 2022 was up 39 percent from 2021, reflecting higher spend in the U.S.

Permian Basin and advantaged projects in Guyana.

Development projects typically take several years from the time of recording proved undeveloped reserves to the start of production and can exceed five years for large and complex projects.

The percentage of proved developed reserves was 63 percent of total proved reserves at year-end 2022, and has been over 60 percent for the last ten years.

Capital investments in the Downstream totaled $2.1 billion in 2021, a decrease of $2.1 billion from 2020, reflecting lower global project spending.

Chemical capital expenditures of $2.2 billion, decreased $0.5 billion, representing reduced spend on growth projects.

2021 2020 2019

Capital investments in Energy Products totaled $2.4 billion in 2022, an increase of $0.4 billion from 2021, reflecting higher global project spending, including the refinery expansion in Beaumont, Texas.

Chemical Products capital expenditures of $3.0 billion increased $0.9 billion, representing increased spend on key growth projects such as the China chemical complex.

Specialty Products capital expenditures of $0.3 billion decreased $0.1 billion.

(millions of dollars) 2022 2021 2020

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Total taxes on the Corporation’s income statement were $51.6 billion in 2022, an increase of $11.0 billion from 2021.

Income tax expense, both current and deferred, was $20.2 billion compared to $7.6 billion in 2021.

The effective tax rate, which is calculated based on consolidated company income taxes and ExxonMobil’s share of equity company income taxes, was 33 percent compared to 31 percent in the prior year driven by impacts from additional European taxes on the energy sector.

Total other taxes and duties of $31.5 billion in 2022 decreased $1.5 billion.

Total taxes on the Corporation’s income statement were $40.6 billion in 2021, an increase of $17.8 billion from 2020.

Income tax expense, both current and deferred, was $7.6 billion compared to a $5.6 billion benefit in 2020.

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Total other taxes and duties of $33.0 billion in 2021 increased $4.5 billion.

Total taxes on the Corporation’s income statement were $22.8 billion in 2020, a decrease of $15.7 billion from 2019.

Income tax expense, both current and deferred, was a benefit of $5.6 billion compared to $5.3 billion expense in 2019.

The relative benefit was driven by asset impairments recorded in 2020.

The effective tax rate, which is calculated based on consolidated company income taxes and ExxonMobil’s share of equity company income taxes, was 17 percent compared to 34 percent in the prior year due primarily to a change in mix of results in jurisdictions with varying tax rates.

Total other taxes and duties of $28.4 billion in 2020 decreased $4.8 billion.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

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Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on air, water and ground.

These include a significant investment in refining infrastructure and technology to manufacture clean fuels, as well as projects to monitor and reduce nitrogen oxide, sulfur oxide and greenhouse gas emissions, and expenditures for asset retirement obligations.

These include a significant investment in refining infrastructure and technology to manufacture clean fuels, as well as projects to monitor and reduce air, water, and waste emissions, and expenditures for asset retirement obligations.

Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2022 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $5.7 billion, of which $3.8 billion were included in expenses with the remainder in capital expenditures.

The total cost for such activities is expected to increase to approximately $5.3 billion in 2022, with capital expenditures expected to account for approximately 30 percent of the total.

Costs for 2023 are anticipated to be higher as the Low Carbon Solutions business matures and the Corporation progresses its emission-reduction plans.

As the Corporation progresses its emission-reduction plans, worldwide environmental expenditures are expected to increase to approximately $7.3 billion in 2023, with capital expenditures expected to account for approximately 46 percent of the total.

Costs for 2024 are anticipated to increase to approximately $8.2 billion, with capital expenditures expected to account for approximately 51 percent of the total.

Environmental Liabilities

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Crude oil, natural gas, petroleum product, and chemical prices have fluctuated in response to changing market forces.

The impacts of these price fluctuations on earnings from Upstream, Downstream and Chemical operations have varied.

The impacts of these price fluctuations on earnings have varied across the Corporation's operating segments.

For the year 2023, a $1 per barrel change in the weighted-average realized price of oil would have approximately a $500 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

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Accordingly, changes in benchmark prices for crude oil and natural gas only provide broad indicators of changes in the earnings experienced in any particular period.

In the very competitive downstream and chemical environments, earnings are primarily determined by margin capture rather than absolute price levels of products sold.

In the very competitive petroleum and petrochemical environment, earnings are primarily determined by margin capture rather than absolute price levels of products sold.

Refining margins are a function of the difference between what a refiner pays for its raw materials (primarily crude oil) and the market prices for the range of products produced.

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Although price levels of crude oil and natural gas may rise or fall significantly over the short to medium term due to global economic conditions, political events, decisions by OPEC and other major government resource owners and other factors, industry economics over the long term will continue to be driven by market supply and demand.

Accordingly, the Corporation evaluates the viability of its major investments over a range of prices.

The Corporation has an active asset management program in which underperforming assets are either improved to acceptable levels or considered for divestment.

The Corporation evaluates investments over a range of prices, including estimated greenhouse gas emission costs even in jurisdictions without a current greenhouse gas pricing policy.

The Corporation has an active asset management program in which nonstrategic assets are considered for divestment.

The asset management program includes a disciplined, regular review to ensure that assets are contributing to the Corporation’s strategic objectives.

Risk Management

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 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.

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manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals, and a wide variety of specialty products;

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen and biofuels.

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen, and lower-emission fuels.

The preparation of financial statements in conformity with U.S.

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This process is aligned with the requirements of ASC 360 and ASC 932, and relies, in part, on the Corporation’s planning and budgeting cycle.

Because the lifespans of the vast majority of the Corporation’s major assets are measured in decades, the future cash flows of these assets are predominantly based on long-term oil and natural gas commodity prices and industry margins, and development and production costs.

Significant reductions in the Corporation’s view of oil or natural gas commodity prices or margin ranges, especially the longer-term prices and margins, and changes in the development plans, including decisions to defer, reduce, or eliminate planned capital spending, can be an indicator of potential impairment.

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The demand side is largely a function of general economic activities, alternative energy sources, and levels of prosperity.

During the lifespan of its major assets, the Corporation expects that oil and gas prices and industry margins will experience significant volatility, and consequently these assets will experience periods of higher earnings and periods of lower earnings, or even losses.

During the lifespan of its major assets, the Corporation expects that oil and gas prices and industry margins will experience significant volatility.

Consequently, these assets will experience periods of higher earnings and periods of lower earnings, or even losses.

In assessing whether events or changes in circumstances indicate the carrying value of an asset may not be recoverable, the Corporation considers recent periods of operating losses in the context of its longer-term view of prices and margins.

Energy Outlook and Cash Flow Assessment.

Outlook for Energy and Cash Flow Assessment.

The annual planning and budgeting process, known as the Corporate Plan, is the mechanism by which resources (capital, operating expenses, and people) are allocated across the Corporation.

The foundation for the assumptions supporting the Corporate Plan is the Energy Outlook, which contains the Corporation’s demand and supply projections based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic development.

Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or the Corporation, to meet net-zero by 2050.

As future policies and technology advancements emerge, they will be incorporated into the Energy Outlook, and the Corporation’s business plans will be updated accordingly.

The foundation for the assumptions supporting the Corporate Plan is the Outlook for Energy (Outlook), which contains the Corporation’s demand and supply projections based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, economic development, and other factors.

Reflective of the existing global policy environment, the Outlook does not attempt to project the degree of necessary future policy and technology advancement and deployment for the world, or the Corporation, to meet net zero by 2050.

As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the Corporation’s business plans will be updated accordingly.

If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the Corporation estimates the future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts.

In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets.

Cash flows used in recoverability assessments are based on the assumptions developed in the Corporate Plan, which is reviewed and approved by the Board of Directors, and are consistent with the criteria management uses to evaluate investment opportunities.

These evaluations make use of the Corporation’s assumptions of future capital allocations, crude oil and natural gas commodity prices including price differentials, refining and chemical margins, volumes, development and operating costs including greenhouse gas emission prices, and foreign currency exchange rates.

Notably, when assessing future cash flows, the Corporation includes the estimated costs in support of reaching its 2030 greenhouse gas emission-reduction plans, including its goal of net-zero greenhouse gas emissions (Scope 1 and 2) from unconventional operated assets in the Permian Basin.

Volumes are based on projected field and facility production profiles, throughput, or sales.

Management’s estimate of upstream production volumes used for projected cash flows makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities.

The greenhouse gas emission prices reflect existing or anticipated policy actions that countries or localities may take in support of Paris Accord pledges.

While third-party scenarios, such as the International Energy Agency Net Zero Emissions by 2050, may be used to test the resiliency of the Corporation's businesses or strategies, they are not used as a basis for developing future cash flows for impairment assessments.

ExxonMobil considers a range of scenarios - including remote scenarios - to help inform perspective of the future and enhance strategic thinking over time.

While third-party scenarios, such as the International Energy Agency's Net Zero Emissions by 2050, may be used for these purposes, they are not used as a basis for developing future cash flows for impairment assessments.

As part of the Corporate Plan, the Company considers estimated greenhouse gas emission costs, even for jurisdictions without a current greenhouse gas pricing policy.

Fair Value of Impaired Assets.

An asset group is impaired if its estimated undiscounted cash flows are less than the asset group’s carrying value.

Impairments are measured by the amount by which the carrying value exceeds fair value.

Impairments are measured by the excess of the carrying value over fair value.

The assessment of fair value is based upon the views of a likely market participant.

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Judgment is required to determine if assets are held for sale and to determine the fair value less cost to sell.

Investments in equity companies are assessed for possible impairment when events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

Investments accounted for by the equity method are assessed for possible impairment when events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

Examples of key indicators include a history of operating losses, negative earnings and cash flow outlook, significant downward revisions to oil and gas reserves, and the financial condition and prospects for the investee’s business segment or geographic region.

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Recent Impairments.

In 2021, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain long-lived assets may not be recoverable and performed impairment assessments.

After-tax impairment charges of $1.0 billion, including impairments of suspended wells, were recognized during the year largely as a result of changes to Upstream development plans.

In 2020, as part of the Corporation's annual review and approval of its business and strategic plan, a decision was made to no longer develop a significant portion of the dry gas portfolio in the U.S., Canada and Argentina.

In early 2022, in response to Russia’s military action in Ukraine, the Corporation announced 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 $3.0 billion representing the impairment of its Upstream operations related to Sakhalin.

(Refer to Note 2 for further information on Russia.) Other after-tax impairment charges of $1.6 billion and $0.3 billion were recognized in Upstream and Energy Products, respectively.

In 2021, largely as a result of changes to Upstream development plans, the Corporation recognized after-tax impairment charges of approximately $1 billion.

The impairment of these assets resulted in after-tax charges of $18.4 billion in Upstream.

Other after-tax impairment charges of $1.1 billion, $0.6 billion and $0.2 billion were recognized in Upstream, Downstream and Chemical, respectively.

These charges include impairments of property, plant and equipment, goodwill and equity method investments.

In 2019, after-tax impairment charges were $0.2 billion.

Other after-tax impairment charges of $1.8 billion across the year related mainly to impairments of property, plant, and equipment, goodwill, and equity method investments.

Factors which could put further assets at risk of impairment in the future include reductions in the Corporation’s price or margin outlooks, changes in the allocation of capital or development plans, reduced long-term demand for the Corporation's products, and operating cost increases which exceed the pace of efficiencies or the pace of oil and natural gas price or margin increases.

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The fair values of these obligations are recorded as liabilities on a discounted basis, which is typically at the time the assets are installed.

In the estimation of fair value, the Corporation uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation;

technical assessments of the assets;

estimated amounts and timing of settlements;

discount rates;

and inflation rates.

Asset retirement obligations are disclosed in Note 9.

In the estimation of fair value, the Corporation uses assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical assessments of the assets, estimated amounts and timing of settlements, discount rates, and inflation rates.

See Note 9 for further information regarding asset retirement obligations.

Suspended Exploratory Well Costs

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Pension Benefits

The Corporation and its affiliates sponsor about 80 defined benefit (pension) plans in over 40 countries.

The Corporation and its affiliates sponsor 75 defined benefit (pension) plans in 40 countries.

The Pension and Other Postretirement Benefits footnote (Note 17) provides details on pension obligations, fund assets, and pension expense.

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The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated.

For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and where feasible, an estimate of the possible loss.

For contingencies where an unfavorable outcome is reasonably possible and significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss.

Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies.

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However, the Corporation has been successful in defending litigation in the past.

Payments have not had a material adverse effect on operations or financial condition.

Payments have not had a material adverse effect on our operations or financial condition.

In the Corporation’s experience, large claims often do not result in large awards.

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PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2022, as stated in their report included in the Financial Section of this report.

Chief Executive Officer Kathryn A.

Chief Executive Officer

Senior Vice President and

Chief Financial Officer Len M.

Chief Financial Officer

Vice President and Controller

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As further disclosed by management, reserve changes are made within a well-established, disciplined process driven by senior level geoscience and engineering professionals, assisted by the Global Reserves and Resources Group (together "management's specialists").

The principal considerations for our determination that performing procedures relating to the impact of proved oil and natural gas reserves on upstream PP&E, net is a critical audit matter are (i) the significant judgment by management, including the use of management’s specialists, when developing the estimates of proved oil and natural gas reserve volumes, as the reserve volumes are based on engineering assumptions and methods, which in turn led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the data, methods, and assumptions used by management and its specialists in developing the estimates of proved oil and natural gas reserve volumes and the assumptions applied to the data related to future development costs and production costs, as applicable.

The principal considerations for our determination that performing procedures relating to the impact of proved oil and natural gas reserves on upstream PP&E, net is a critical audit matter are (i) the significant judgment by management, including the use of management's specialists, when developing the estimates of proved oil and natural gas reserve volumes, as the reserve volumes are based on engineering assumptions and methods, which in turn led to (ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating audit evidence related to the data, methods and assumptions used by management and its specialists in developing the estimates of proved oil and natural gas reserve volumes and the assumptions applied to the data related to future development costs, as applicable.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

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The procedures performed also included evaluation of the methods and assumptions used by the specialists, tests of the data used by the specialists, and an evaluation of the specialists' findings.

These procedures also included, among others, testing the completeness and accuracy of the data related to future development costs and production costs.

Additionally, these procedures included evaluating whether the assumptions applied to the data related to future development costs and production costs were reasonable considering the past performance of the Corporation.

These procedures also included, among others, testing the completeness and accuracy of the data related to future development costs.

Additionally, these procedures included evaluating whether the assumptions applied to the data related to future development costs were reasonable considering the past performance of the Corporation.

/s/ PricewaterhouseCoopers LLP

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CONSOLIDATED STATEMENT OF INCOME

Number 2021 2020 2019

(millions of dollars)

Number 2022 2021 2020

Revenues and other income

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CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

2021 2020 2019

(millions of dollars) 2022 2021 2020

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CONSOLIDATED BALANCE SHEET

(millions of dollars) Note

Number December 31, 2022 December 31, 2021

(millions of dollars)

Current assets

Cash and cash equivalents 29,640 6,802

Cash and cash equivalents – restricted 25 —

Notes and accounts receivable – net 6 41,749 32,383

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Property, plant and equipment, at cost, less accumulated depreciation and depletion 9 204,692 216,552

9 216,552 227,553

Other assets, including intangibles – net 16,951 18,022

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CONSOLIDATED STATEMENT OF CASH FLOWS

Note Reference Number 2021 2020 2019

(millions of dollars)

(millions of dollars) Note Reference Number 2022 2021 2020

CASH FLOWS FROM OPERATING ACTIVITIES

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Deferred income tax charges/(credits) 19 3,758 303 ( 8,856 )

Postretirement benefits expense

in excess of/(less than) net payments

Other long-term obligation provisions

in excess of/(less than) payments

Postretirement benefits expense in excess of/(less than) net payments ( 2,981 ) 754 498

Other long-term obligation provisions in excess of/(less than) payments ( 1,932 ) 50 ( 1,269 )

Dividends received greater than/(less than) equity in current earnings of equity companies ( 2,446 ) ( 668 ) 979

Changes in operational working capital, excluding cash and debt

Notes and accounts receivable reduction/(increase)

( 11,019 ) ( 12,098 ) 5,384

Dividends received greater than/(less than) equity in current

earnings of equity companies

Inventories reduction/(increase)

( 6,947 ) ( 489 ) ( 315 )

Changes in operational working capital, excluding cash and debt

Reduction/(increase) - Notes and accounts receivable ( 12,098 ) 5,384 ( 2,640 )

- Inventories ( 489 ) ( 315 ) 72

- Other current assets ( 71 ) 420 ( 234 )

Increase/(reduction) - Accounts and other payables 16,820 ( 7,142 ) 3,725

Other current assets reduction/(increase)

( 688 ) ( 71 ) 420

Accounts and other payables increase/(reduction)

18,460 16,820 ( 7,142 )

Net (gain)/loss on asset sales 5 ( 1,034 ) ( 1,207 ) 4

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( 8,075 ) ( 29,396 ) ( 28,742 )

Additions/(reductions) in commercial paper, and debt with

three months or less maturity

( 2,983 ) ( 9,691 ) 1,011

Additions/(reductions) in commercial paper, and debt with three months or less maturity 25 ( 2,983 ) ( 9,691 )

Contingent consideration payments ( 58 ) ( 30 ) ( 21 )

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ExxonMobil Share of Equity

(millions of dollars)

Stock Earnings

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Equity Non-controlling Interests Total

(millions of dollars)

Balance as of December 31, 2019 15,637 421,341 ( 19,493 ) ( 225,835 ) 191,650 7,288 198,938

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Dividends - common shares — ( 14,865 ) — — ( 14,865 ) ( 188 ) ( 15,053 )

Cumulative effect of accounting change — ( 93 ) — — ( 93 ) ( 1 ) ( 94 )

Other comprehensive income — — 2,788 — 2,788 68 2,856

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Dividends - common shares — ( 14,924 ) — — ( 14,924 ) ( 224 ) ( 15,148 )

Cumulative effect of accounting change — ( 93 ) — — ( 93 ) ( 1 ) ( 94 )

Other comprehensive income — — 2,941 — 2,941 228 3,169

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Balance as of December 31, 2022 15,752 432,860 ( 13,270 ) ( 240,293 ) 195,049 7,424 202,473

Common Stock Share Activity Issued Held in

Treasury Outstanding

Common Stock Share Activity

(millions of shares)

Issued Held in

Treasury Outstanding

Balance as of December 31, 2019 8,019 ( 3,785 ) 4,234

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manufacture, trade, transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products;

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen and biofuels.

and pursuit of lower-emission business opportunities including carbon capture and storage, hydrogen and lower-emission fuels.

The preparation of financial statements in conformity with U.S.

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Principles of Consolidation and Accounting for Investments

The Consolidated Financial Statements include the accounts of subsidiaries the Corporation controls.

The Consolidated Financial Statements include the accounts of subsidiaries the Corporation controls and any variable interest entities where it is deemed the primary beneficiary.

They also include the Corporation’s share of the undivided interest in certain upstream assets, liabilities, revenues, and expenses.

Amounts representing the Corporation’s interest in entities that it does not control, but over which it exercises significant influence, are included in “Investments, advances and long-term receivables”.

The Corporation’s share of the net income of these companies is included in the Consolidated Statement of Income caption “Income from equity affiliates”.

Under the equity method of accounting, the Corporation recognizes its share of the net income of these companies in “Income from equity affiliates”.

Majority ownership is normally the indicator of control that is the basis on which subsidiaries are consolidated.

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These include the right to approve operating policies, expense budgets, financing and investment plans, and management compensation and succession plans.

Investments in equity companies are assessed for possible impairment when events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

Investments accounted for by the equity method are assessed for possible impairment when events or changes in circumstances indicate that the carrying value of an investment may not be recoverable.

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In the absence of market prices for the investment, discounted cash flows are used to assess fair value.

The Corporation’s share of the cumulative foreign exchange translation adjustment for equity method investments is reported in “Accumulated other comprehensive income”.

Investments in equity securities, other than consolidated subsidiaries and equity method investments, are measured at fair value with changes in fair value recognized in net income.

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This modified approach measures investments at cost minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions in a similar investment of the same issuer.

The Corporation’s share of the cumulative foreign exchange translation adjustment for equity method investments is reported in “Accumulated other comprehensive income”.

Revenue Recognition

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Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and recorded as exchanges measured at the book value of the item sold.

“Sales and other operating revenue” and “Notes and accounts receivable” primarily arise from contracts with customers.

Long-term receivables are primarily from non-customers.

“Sales and other operating revenue” and “Notes and accounts receivable” include revenue and receivables both within the scope of ASC 606 "Revenue from Contracts with Customers” and those outside the scope of ASC 606.

Long-term receivables are primarily from receivables outside the scope of ASC 606.

Contract assets are mainly from marketing assistance programs and are not significant.

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Development costs, including costs of productive wells and development dry holes, are capitalized.

Interest costs incurred to finance expenditures during the construction phase of multiyear projects are capitalized as part of the historical cost of acquiring the constructed assets.

The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.

Capitalized interest costs are included in property, plant, and equipment and are depreciated over the service life of the related assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Depreciation, Depletion, and Amortization.

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For example, certain assets used in the production of oil and natural gas have a shorter life than the reserves, and as such, the Corporation uses straight-line depreciation to ensure the asset is fully depreciated by the end of its useful life.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of proved reserves, appropriately adjusted for production and technical changes.

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Asset valuation analysis, profitability reviews, and other periodic control processes assist the Corporation in assessing whether events or changes in circumstances indicate the carrying amounts of any of its assets may not be recoverable.

Because the lifespans of the vast majority of the Corporation’s major assets are measured in decades, the future cash flows of these assets are predominantly based on long-term oil and natural gas commodity prices, industry margins, and development and production costs.

Other events or changes in circumstances can be indicators of potential impairment as well.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

In general, the Corporation does not view temporarily low prices or margins as an indication of impairment.

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The demand side is largely a function of general economic activities, alternative energy sources, and levels of prosperity.

During the lifespan of its major assets, the Corporation expects that oil and gas prices and industry margins will experience significant volatility.

Consequently, these assets will experience periods of higher earnings and periods of lower earnings, or even losses.

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The Corporation believes the standardized measure does not provide a reliable estimate of the expected future cash flows to be obtained from the development and production of its oil and gas properties or of the value of its oil and gas reserves, and therefore, does not consider it relevant in determining whether events or changes in circumstances indicate the need for an impairment assessment.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Energy Outlook and Cash Flow Assessment.

Outlook for Energy and Cash Flow Assessment.

The annual planning and budgeting process, known as the Corporate Plan, is the mechanism by which resources (capital, operating expenses, and people) are allocated across the Corporation.

As future policies and technology advancements emerge, they will be incorporated into the Energy Outlook, and the Corporation’s business plans will be updated accordingly.

As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the Corporation’s business plans will be updated accordingly.

In performing this assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash flows of other groups of assets.

Cash flows used in recoverability assessments are based on assumptions which are developed in the Corporate Plan, which is reviewed and approved by the Board of Directors, and are consistent with the criteria management uses to evaluate investment opportunities.

Volumes are based on projected field and facility production profiles, throughput, or sales.

Management’s estimate of upstream production volumes used for projected cash flows makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities.

The greenhouse gas emission prices reflect existing or anticipated policy actions that countries or localities may take in support of Paris Accord pledges.

Cash flow estimates for impairment testing exclude the effects of derivative instruments.

As part of the Corporate Plan, the Company considers estimated greenhouse gas emission costs, even for jurisdictions without a current greenhouse gas pricing policy.

Fair Value of Impaired Assets.

An asset group is impaired if its estimated undiscounted cash flows are less than the asset group's carrying value.

Impairments are measured by the amount by which the carrying value exceeds fair value.

Impairments are measured by the excess of the carrying value over fair value.

The assessment of fair value is based upon the views of a likely market participant.

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Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the Corporation.

Interest costs incurred to finance expenditures during the construction phase of multiyear projects are capitalized as part of the historical cost of acquiring the constructed assets.

The project construction phase commences with the development of the detailed engineering design and ends when the constructed assets are ready for their intended use.

Capitalized interest costs are included in property, plant and equipment and are depreciated over the service life of the related assets.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Environmental Liabilities

3 unchanged sentences

The Corporation selects the functional reporting currency for its international subsidiaries based on the currency of the primary economic environment in which each subsidiary operates.

Downstream and Chemical operations primarily use the local currency.

Operations in the Product Solutions businesses use the local currency.

However, the U.S.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Restructuring Activities

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

The programs were completed by the end of 2021 and included both voluntary and involuntary employee separations as well as reductions in contractors.

In 2021, the Corporation recorded before-tax charges of $ 58 million, consisting primarily of employee separation costs, associated with announced workforce reduction programs in Singapore and Europe.

These costs are captured in “Selling, general and administrative expenses” on the Consolidated Statement of Income and reported within Corporate and Financing.

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

The following table summarizes the reserves and charges related to the workforce reduction programs announced in late 2020 and early 2021.

These are recorded in “Accounts payable and accrued liabilities” on the Consolidated Balance Sheet and do not include charges related to employee reductions associated with any portfolio changes or other projects.

(millions of dollars)

Beginning Balance 403 —

Additions/adjustments 58 450

Payments made ( 384 ) ( 47 )

Ending Balance 77 403

The cash outflows associated with the remaining liability balance of $ 77 million at December 31, 2021 will occur over the next few years, mainly in the form of monthly payments.

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 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 Consolidated Statement of Income.

Effective October 14, the Russian government unilaterally terminated the Corporation’s interests in Sakhalin, transferring operations to a Russian operator.

The Corporation’s fourth-quarter results include an after-tax benefit of $ 1.1 billion largely reflecting the impact of the expropriation on the company’s various obligations related to Sakhalin.

The Corporation's exit from the project results in approximately 150 million oil-equivalent barrels no longer qualifying as proved reserves at year-end 2022.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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Net income included before-tax aggregate foreign exchange transaction losses of $ 218 million, $ 18 million, and $ 24 million in 2022, 2021, and 2020, respectively.

LIFO Inventory.

In 2022, 2021, and 2020, net income included gains of $ 367 million, $ 54 million, and $ 41 million, respectively, attributable to the combined effects of LIFO inventory accumulations and drawdowns.

The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by $ 14.9 billion and $ 14.0 billion at December 31, 2022 and 2021, respectively.

Crude oil, products and merchandise as of year-end 2021 and 2020 consist of the following:

Dec 31, 2021 Dec 31, 2020

(millions of dollars)

Crude oil, products.

and merchandise as of year-end 2022 and 2021 consist of the following:

(millions of dollars) Dec 31, 2022 Dec 31, 2021

Crude oil 6,909 4,162

3 unchanged sentences

Total 20,434 14,519

Mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in its market capitalization at the end of the first quarter of 2020, the Corporation recognized before-tax goodwill impairment charges of $ 611 million in Upstream, Downstream, and Chemical reporting units.

(1) Chemical products includes basic chemicals (olefins and aromatics), polymers (such as polyolefins, adhesions, specialty elastomers, & butyl), intermediates (e.g.

hydrocarbon fluids, plasticizers) and synthetics.

Goodwill Impairments.

Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter.

Charges related to goodwill impairments in 2020 are included in “Depreciation and depletion” on the Consolidated Statement of Income.

Restructuring.

The programs were completed by the end of 2021 and included both voluntary and involuntary employee separations as well as reductions in contractors.

In 2020 and 2021, the Corporation recorded before-tax charges of $ 450 million and $ 58 million respectively, consisting primarily of employee separation costs, associated with announced workforce reduction programs.

These costs are captured in “Selling, general and administrative expenses” on the Consolidated Statement of Income and reported within Corporate and Financing.

No charges related to the disclosed workforce reduction programs were recorded in 2022, and no further charges are expected.

The reserves recorded in “Accounts payable and accrued liabilities” on the Consolidated Balance Sheet were $ 403 million at December 31, 2020, and were not material at year-end 2021 and 2022.

The cash outflows associated with this liability balance occurred primarily in 2021, and the remainder will occur over the next few years, mainly in the form of monthly payments.

Government Assistance.

ASC 832 "Government Assistance" requires disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance.

During 2022, certain governments outside the United States provided payments which, individually and in aggregate, were immaterial to the Corporation's financial results.

Among these are programs where governments endeavor to stabilize or cap fuel and energy costs for local consumers.

To compensate producers who sell at the government-mandated prices, these governments provide reimbursements to the producers.

In 2022, these reimbursements totaled approximately $ 1.5 billion before tax, and were reflected as reductions to the line captioned " Crude oil and product purchases " on the Consolidated Statement of Income.

At December 31, 2022, "Notes and accounts receivable - net" on the Consolidated Balance Sheet included $ 0.5 billion related to pending government reimbursements.

The terms and conditions of these programs, including their duration, vary by country.

In the event that any of these programs are discontinued, the Corporation does not expect a significant impact to its financial results.

Additionally, in connection with cap and trade programs in certain countries outside the United States, companies receive allowances from governments covering a specified level of emissions from facilities they operate.

The terms of these programs vary by country.

The Corporation records these allowances at a nominal amount in “Other assets, including intangibles – net” on the Consolidated Balance Sheet.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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ExxonMobil Share of Accumulated Other

Comprehensive Income Cumulative Foreign Exchange Translation Adjustment Postretirement Benefits Reserves Adjustment Total

Comprehensive Income

(millions of dollars)

Cumulative Foreign Exchange Translation Adjustment Postretirement Benefits Reserves Adjustment Total

Balance as of December 31, 2019 ( 12,446 ) ( 7,047 ) ( 19,493 )

Current period change excluding amounts reclassified from accumulated other comprehensive income 1,818 95 1,913

1,435 ( 1,927 ) ( 492 )

Amounts reclassified from accumulated other comprehensive income 14 861 875

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(millions of dollars)

2022 2021 2020

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

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Other income)

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

(Statement of Income line:

Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs (Statement of Income line:

Non-service pension and postretirement benefit expense) ( 519 ) ( 1,229 ) ( 1,158 )

( 1,229 ) ( 1,158 ) ( 751 )

Income Tax (Expense)/Credit For

1 unchanged sentence

(millions of dollars)

2022 2021 2020

Foreign exchange translation adjustment 54 ( 114 ) 118

1 unchanged sentence

Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs ( 116 ) ( 304 ) ( 262 )

( 304 ) ( 262 ) ( 169 )

Total ( 1,182 ) ( 1,401 ) ( 35 )

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Highly liquid investments with maturities of three months or less when acquired are classified as cash equivalents.

For 2021, the “Net (gain)/loss on asset sales” on the Consolidated Statement of Cash Flows includes before-tax amounts from the sale of non-operated upstream assets in the United Kingdom Central and Northern North Sea and the sale of ExxonMobil's global Santoprene business.

The United Kingdom Central and Northern North Sea assets were sold to Neo Energy, resulting in a before-tax gain of $ 0.4 billion and cash proceeds of $ 0.7 billion in 2021.

The Santoprene business, including two chemical manufacturing sites in Pensacola, Florida and Newport, Wales, was sold to Celanese, resulting in a before-tax gain of $ 0.8 billion and cash proceeds of $ 1.1 billion in 2021.

For 2019, the “Net (gain)/loss on asset sales” line includes before-tax amounts from the sale of non-operated upstream assets in Norway and upstream asset transactions in the U.S.

The Norway assets were sold for $ 4.5 billion, resulting in a gain of $ 3.7 billion and cash proceeds of $ 3.1 billion in 2019.

For 2022, the “Net (gain)/loss on asset sales” on the Consolidated Statement of Cash Flows includes before-tax amounts from the sale of certain unproved assets in Romania and unconventional assets in Canada and the United States, as well as other smaller divestments.

For 2021, the “Net (gain)/loss on asset sales” line includes before-tax amounts from the sale of non-operated upstream assets in the United Kingdom Central and Northern North Sea and the sale of ExxonMobil's global Santoprene business.

For 2020, the “Depreciation and depletion” and “Deferred income tax charges/(credits)” on the Consolidated Statement of Cash Flows include impacts from asset impairments, primarily in Upstream.

2021 2020 2019

(millions of dollars) 2022 2021 2020

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Additional Working Capital Information

Dec 31, 2021 Dec 31, 2020

(millions of dollars)

(millions of dollars) Dec 31, 2022 Dec 31, 2021

Notes and accounts receivable

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Total 63,197 50,766

Trade notes and accounts receivables include both receivables within the scope of ASC 606 and outside the scope of ASC 606.

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 receivables within the scope of ASC 606 and those outside it.

The Corporation has short-term committed lines of credit of $ 0.3 billion which were unused as of December 31, 2022.

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The summarized financial information below includes amounts related to certain less-than-majority-owned companies and majority-owned subsidiaries where minority shareholders possess the right to participate in significant management decisions (see Note 1).

These companies are primarily engaged in oil and gas exploration and production, and natural gas marketing in North America;

These companies are primarily engaged in oil and gas exploration and production, natural gas marketing, transportation of crude oil, and petrochemical manufacturing in North America;

natural gas exploration, production and distribution in Europe;

liquefied natural gas (LNG) operations and transportation of crude oil in Africa;

liquefied natural gas (LNG) operations in Africa;

and exploration, production, LNG operations, and the manufacture and sale of petroleum and petrochemical products in Asia and the Middle East.

Also included are several refining, petrochemical manufacturing and marketing ventures.

Also included are several refining and marketing ventures.

The share of total equity company revenues from sales to ExxonMobil consolidated companies was 11 percent, 10 percent and 11 percent in the years 2022, 2021 and 2020, respectively.

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The amortization of this difference, as appropriate, is included in “Income from equity affiliates” on the Consolidated Statement of Income.

Impairments related to upstream equity investments of $ 0.2 billion and $ 0.6 billion in 2021 and 2020, respectively, are included in “Income from equity affiliates” or “Other income” on the Consolidated Statement of Income.

2021 2020 2019

Impairments related to upstream equity investments of $ 0.6 billion, $ 0.2 billion and $ 0.6 billion in 2022, 2021, and 2020, respectively, are included in “Income from equity affiliates” or “Other income” on the Consolidated Statement of Income.

Equity Company

Financial Summary Total ExxonMobil

Share Total ExxonMobil Share Total ExxonMobil

Financial Summary

(millions of dollars)

2022 2021 2020

Total ExxonMobil

Share Total ExxonMobil Share Total ExxonMobil

Total revenues 183,812 57,528 116,972 34,995 69,954 21,282

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Terminale GNL Adriatico S.r.l.

Energy Products, Chemical Products, and/or Specialty Products

Al-Jubail Petrochemical Company 50

Alberta Products Pipe Line Ltd.

Fujian Refining & Petrochemical Co.

Gulf Coast Growth Ventures LLC 50

Infineum USA L.P.

Permian Express Partners LLC 12

Saudi Aramco Mobil Refinery Company Ltd.

Al-Jubail Petrochemical Company 50

Gulf Coast Growth Ventures LLC 50

Saudi Yanbu Petrochemical Co.

1 unchanged sentence

Investments, Advances and Long-Term Receivables

Dec 31, 2021 Dec 31, 2020

(millions of dollars)

(millions of dollars) Dec 31, 2022 Dec 31, 2021

Equity method company investments and advances

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Property, Plant and Equipment and Asset Retirement Obligations

December 31, 2021 December 31, 2020

Property, Plant and Equipment Cost Net Cost Net

Property, Plant and Equipment

(millions of dollars)

December 31, 2022 December 31, 2021

Cost Net Cost Net

Upstream 350,748 144,146 375,813 156,951

Downstream 57,947 27,417 57,922 27,716

Chemical 43,288 21,793 42,868 21,924

Energy Products 58,393 26,765 58,504 27,354

Chemical Products 36,322 19,064 33,514 17,409

Specialty Products 8,895 4,303 9,217 4,447

Other 18,335 10,414 18,014 10,391

Total 472,693 204,692 495,062 216,552

Before-tax impairment charges of $ 1.2 billion, including impairments of suspended wells, were recognized during the year largely as a result of changes to Upstream development plans.

In 2022, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain long-lived assets may not be recoverable and conducted impairment assessments.

Before-tax impairment charges of $ 4.5 billion were recognized during the first quarter as a result of the Corporation's plans to discontinue operations on the Sakhalin-1 project and develop steps to exit the venture in response to Russia's military action in Ukraine (Refer to Note 2 for additional information.) Other before-tax impairment charges recognized during 2022 included $ 1.5 billion in Upstream and $ 0.4 billion in Energy Products.

In 2021, the Corporation recognized before-tax impairment charges of $ 1.2 billion largely as a result of changes to Upstream development plans.

The impairment of these assets resulted in before-tax charges of $ 24.4 billion in Upstream.

Other before-tax impairment charges in 2020 included $ 0.9 billion in Upstream, $ 0.5 billion in Downstream, and $ 0.1 billion in Chemical.

In 2019, before-tax impairment charges were $ 0.1 billion.

Other before-tax impairment charges during 2020 included $ 0.9 billion in Upstream and $ 0.6 billion in Energy Products.

Impairment charges are primarily recognized in the lines “ Depreciation and depletion” and “Exploration expenses, including dry holes ” on the Consolidated Statement of Income.

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Over time, the liabilities are accreted for the change in their present value.

Asset retirement obligations for downstream and chemical facilities generally become firm at the time the facilities are permanently shut down and dismantled.

Asset retirement obligations for facilities in the Product Solutions business generally become firm at the time the facilities are permanently shut down and dismantled.

These obligations may include the costs of asset disposal and additional soil remediation.

However, these sites have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.

However, these sites generally have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.

The following table summarizes the activity in the liability for asset retirement obligations:

2021 2020 2019

(millions of dollars) 2022 2021 2020

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The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

The following two tables provide details of the changes in the balance of suspended exploratory well costs as well as an aging summary of those costs.

The following two tables provide details of the changes in the balance of suspended exploratory well costs, including an aging summary of those costs.

Change in capitalized suspended exploratory well costs

2021 2020 2019

(millions of dollars)

2022 2021 2020

Balance beginning at January 1 4,120 4,382 4,613

1 unchanged sentence

Charged to expense ( 259 ) ( 325 ) ( 318 )

Reclassifications to wells, facilities and equipment based on the

determination of proved reserves ( 328 ) ( 174 ) ( 37 )

Reclassifications to wells, facilities and equipment based on the determination of proved reserves ( 142 ) ( 328 ) ( 174 )

Divestments/Other ( 585 ) ( 29 ) 53

2 unchanged sentences

Period-end capitalized suspended exploratory well costs

2021 2020 2019

(millions of dollars)

2022 2021 2020

Capitalized for a period of one year or less 378 420 208

7 unchanged sentences

2022 2021 2020

Number of projects that only have exploratory well costs capitalized for a

period of one year or less 4 3 4

Number of projects that have exploratory well costs capitalized for a period

greater than one year 30 34 46

Number of projects that only have exploratory well costs capitalized for a period of one year or less 10 4 3

Number of projects that have exploratory well costs capitalized for a period greater than one year 26 30 34

Total 36 34 37

2 unchanged sentences

The table below provides additional detail for those 15 projects, which total $ 2,324 million.

Country/Project Dec.

31, 2021 Years Wells Drilled / Acquired Comment

Country/Project December 31, 2022 Years Wells Drilled / Acquired Comment

(millions of dollars)

– La Invernada

Block 32 Central NE Hub

66 2007 - 2021 Evaluating development plan for tieback to existing infrastructure.

72 2014 Evaluating development plan to tie into planned infrastructure.

5 unchanged sentences

53 2004 - 2007 Evaluating commercialization and field development alternatives, while continuing discussions with the government regarding the development plan.

– Rovuma LNG Future

Non-Straddling Train

Rovuma LNG Future Non-Straddling Train

120 2017 Evaluating/progressing development plan to tie into planned LNG facilities.

1 unchanged sentence

150 2017 Progressing development plan to tie into planned LNG facilities.

– Rovuma LNG Unitized

Rovuma LNG Unitized Trains

35 2017 Evaluating/progressing development plan to tie into planned LNG facilities.

– Bonga North

34 2004 - 2009 Evaluating/progressing development plan for tieback to existing/planned infrastructure.

3 2001 Evaluating/progressing development plan for tieback to existing/planned infrastructure.

32 2009 Awaiting capacity in existing/planned infrastructure.

Papua New Guinea

2 unchanged sentences

116 2012 - 2018 Evaluating/progressing development plans.

– Neptun Deep

536 2012 - 2016 Continuing discussions with the government regarding development plan.

– Tanzania Block 2

525 2012 - 2015 Evaluating development alternatives, while continuing discussions with the government regarding development plan.

11 unchanged sentences

The Corporation’s activities as a lessor are not significant.

Operating Leases Finance Leases

Lease Cost 2021 2020 2019 2021 2020 2019

(millions of dollars)

Operating Leases Finance Leases

2022 2021 2020 2022 2021 2020

Operating lease cost 1,776 1,542 1,553

4 unchanged sentences

(1) Includes $ 908 million, $ 681 million and $ 827 million for drilling rigs and related equipment operating leases in 2022, 2021, and 2020, respectively.

Operating Leases Finance Leases

Balance Sheet December 31, 2021 December 31, 2020 December 31, 2021 December 31, 2020

Balance Sheet

(millions of dollars)

Operating Leases Finance Leases

December 31, 2022 December 31, 2021 December 31, 2022 December 31, 2021

Right of use assets

15 unchanged sentences

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Operating Leases Finance Leases

Maturity Analysis of Lease Liabilities December 31, 2021

Maturity Analysis of Lease Liabilities

(millions of dollars)

Operating Leases Finance Leases

December 31, 2022

2023 1,623 195

6 unchanged sentences

Estimated cash payments for operating and finance leases not yet commenced are $ 268 million and $ 260 million for 2023 and 2024 respectively.

The finance leases relate to floating production storage and offloading vessels, LNG transportation vessels, and a long-term hydrogen purchase agreement.

The finance leases relate to LNG transportation vessels, a wastewater treatment facility, a CO2 transportation and service agreement, and a long-term hydrogen purchase agreement.

The underlying assets for these finance leases were primarily designed by, and are being constructed by, the lessors.

Operating Leases Finance Leases

Other Information

(millions of dollars)

Operating Leases Finance Leases

2022 2021 2020 2022 2021 2020

Cash paid for amounts included in the measurement of lease liabilities

3 unchanged sentences

Noncash right of use assets recorded for lease liabilities

For January 1 adoption of ASC 842

In exchange for lease liabilities during the period 1,997 1,405 735 73 200 108

13 unchanged sentences

Financial Instruments and Derivatives

Financial Instruments.

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

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

December 31, 2022

(millions of dollars)

Level 1 Level 2 Level 3 Total Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value

(millions of dollars) Level 1 Level 2 Level 3 Total Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value

Derivative assets (1)

4,309 3,455 — 7,764 ( 5,778 ) ( 969 ) — 1,017

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

Advances to/receivables from equity

companies (2)(6)

— 2,406 4,958 7,364 — — 685 8,049

10 unchanged sentences

December 31, 2021

(millions of dollars)

Level 1 Level 2 Level 3 Total Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value

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

23 unchanged sentences

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

At December 31, 2021 and December 31, 2020, the Corporation had $ 641 million and $ 504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

At December 31, 2022 and December 31, 2021, respectively, the Corporation had $ 1,494 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.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Derivative Instruments.

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

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

Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue”.

4 unchanged sentences

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

December 31, December 31,

(millions) December 31, December 31,

Crude oil (barrels) 4 82

2 unchanged sentences

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:

2021 2020 2019

(millions of dollars) 2022 2021 2020

7 unchanged sentences

These amounts exclude that portion of long-term debt, totaling $ 181 million, which matures within one year and is included in current liabilities.

On December 17, 2021, the Corporation irrevocably deposited sufficient cash with the Trustee to fund the redemption of its 2.397 % notes due 2022.

On December 22, 2022, the Company irrevocably deposited sufficient cash with the Trustee to fund (i) the redemption of its 2.726 % notes due 2023 and (ii) the redemption of its 1.571 % notes due 2023.

After the deposit of the funds, the Corporation was released from its obligation and the debt was extinguished.

11 unchanged sentences

Summarized long-term debt at year-end 2022 and 2021 are shown in the table below:

(millions of dollars, except where stated otherwise) Average

Dec 31, 2022 Dec 31, 2021

(millions of dollars)

Exxon Mobil Corporation (2)

1 unchanged sentence

2.726 % notes due 2023

Floating-rate notes due 2022 (Issued 2015)

Floating-rate notes due 2022 (Issued 2019)

3.176 % notes due 2024

15 unchanged sentences

3.452 % notes due 2051

4.327 % notes due 2050

3.452 % notes due 2051

Exxon Mobil Corporation - Euro-denominated

8 unchanged sentences

Industrial revenue bonds due 2022-2051 1.000 % 2,245 2,244

dollar obligations 64 78

Other foreign currency obligations 37 61

Finance lease obligations 7.438 % 1,761 1,680

Finance leases & other obligations 5.856 % 3,299 1,862

Debt issuance costs ( 100 ) ( 114 )

Total long-term debt 40,559 43,428

(1) Average effective interest rate for debt and average imputed interest rate for finance leases at December 31, 2021.

(1) Average effective or imputed interest rates at December 31, 2022.

(2) Includes premiums of $ 115 million in 2022 and $ 131 million in 2021.

18 unchanged sentences

The majority of the awards have graded vesting periods, with 50 percent of the shares and units in each award vesting after three years , and the remaining 50 percent vesting after seven years .

As a result of an expansion of the program in 2022, some new participants will be eligible for awards that vest in full after three years.

Awards granted to a small number of senior executives have vesting periods of five years for 50 percent of the award and of 10 years for the remaining 50 percent of the award, except that for awards granted prior to 2020 the vesting of the 10 -year portion of the award is delayed until retirement if later than 10 years.

The following tables summarize information about restricted stock and restricted stock units for the year ended December 31, 2022.

Restricted stock and units outstanding Shares Weighted Average Grant-Date

Restricted stock and units outstanding 2022

Shares Weighted-Average

Fair Value per Share

33 unchanged sentences

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.

December 31, 2022

Equity Company Obligations (1)

(millions of dollars) Equity Company Obligations (1)

Other Third-Party Obligations Total

(millions of dollars)

Debt-related 1,206 152 1,358

3 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.

The Corporation has previously provided disclosure regarding (i) claims being pursued by the Corporation against the Venezuelan National Oil Company in connection with a 2007 Venezuelan nationalization decree, and (ii) claims being pursued by the Corporation against the Nigerian National Petroleum Corporation in connection with a dispute involving crude oil lifting entitlements which was originally subject to arbitration in 2011.

Both matters remain ongoing but, as previously disclosed, the Corporation does not expect the ultimate resolution of either matter to have a material effect upon the Corporation’s operations or financial condition.

In the interest of disclosure simplification, the Corporation will no longer include specific disclosure of these matters in its annual or quarterly reports unless future developments alter the foregoing conclusions.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

The benefit obligations and plan assets associated with the Corporation’s principal benefit plans are measured on December 31.

Pension Benefits Other Postretirement

Pension Benefits Other Postretirement Benefits

(millions of dollars, except where stated otherwise) U.S.

2022 2021 2022 2021 2022 2021

Weighted-average assumptions used to determine benefit obligations at December 31

Discount rate 3.00 2.80 2.20 1.60 3.10 2.80

Long-term rate of compensation increase 4.50 5.50 4.20 4.20 4.50 5.50

(millions of dollars)

Discount rate (percent)

5.60 3.00 4.90 2.20 5.60 3.10

Long-term rate of compensation increase (percent)

4.50 4.50 5.20 4.20 4.50 4.50

Change in benefit obligation

10 unchanged sentences

Accumulated benefit obligation at December 31 10,367 15,781 18,047 27,373 — —

(1) Actuarial loss/(gain) primarily reflects changes in discount rates, lower long-term rates of compensation and a lower health care cost trend rate.

(1) Actuarial loss/(gain) primarily reflects higher discount rates.

(2) Benefit payments for funded and unfunded plans.

5 unchanged sentences

The measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate of 4.0 percent in 2024 and subsequent years.

Pension Benefits Other Postretirement

Pension Benefits Other Postretirement Benefits

(millions of dollars) U.S.

2022 2021 2022 2021 2022 2021

(millions of dollars)

Change in plan assets

15 unchanged sentences

Pension Benefits

(millions of dollars) U.S.

2022 2021 2022 2021

(millions of dollars)

Assets in excess of/(less than) benefit obligation

5 unchanged sentences

Pension Benefits Other Postretirement Benefits

(millions of dollars) U.S.

2022 2021 2022 2021 2022 2021

(millions of dollars)

Assets in excess of/(less than) benefit obligation

1 unchanged sentence

( 1,361 ) ( 5,245 ) ( 2,585 ) ( 4,612 ) ( 4,863 ) ( 6,825 )

Amounts recorded in the consolidated

balance sheet consist of:

Amounts recorded in the consolidated balance sheet consist of:

Other assets — — 1,962 2,544 — —

2 unchanged sentences

Total recorded ( 1,361 ) ( 5,245 ) ( 2,585 ) ( 4,612 ) ( 4,863 ) ( 6,825 )

Amounts recorded in accumulated other

comprehensive income consist of:

Amounts recorded in accumulated other comprehensive income consist of:

Net actuarial loss/(gain) 897 1,865 846 2,841 ( 1,726 ) 197

Prior service cost ( 295 ) ( 324 ) 278 262 ( 190 ) ( 232 )

Total recorded in accumulated other

comprehensive income

1,541 2,827 3,103 6,112 ( 35 ) 890

Total recorded in accumulated other comprehensive income 602 1,541 1,124 3,103 ( 1,916 ) ( 35 )

(1) Fair value of assets less benefit obligation shown on the preceding page.

2 unchanged sentences

A single, long-term rate of return is then calculated as the weighted average of the target asset allocation percentages and the long-term return assumption for each asset class.

Pension Benefits Other Postretirement Benefits

Pension Benefits Other Postretirement

(millions of dollars, except where stated otherwise) U.S.

2022 2021 2020 2022 2021 2020 2022 2021 2020

Weighted-average assumptions used to determine net periodic benefit cost for years ended December 31

Discount rate 2.80 3.50 4.40 1.60 2.30 3.00 2.80 3.50 4.40

Long-term rate of return on funded assets 5.30 5.30 5.30 4.10 4.10 4.10 4.60 4.60 4.60

Long-term rate of compensation increase 5.50 5.75 5.75 4.20 4.80 4.30 5.50 5.75 5.75

Components of net periodic benefit cost (millions of dollars)

Discount rate (percent)

3.00 2.80 3.50 2.20 1.60 2.30 3.10 2.80 3.50

Long-term rate of return on funded assets (percent)

4.60 5.30 5.30 3.50 4.10 4.10 3.80 4.60 4.60

Long-term rate of compensation increase (percent)

4.50 5.50 5.75 4.20 4.20 4.80 4.50 5.50 5.75

Components of net periodic benefit cost

Service cost 712 919 965 570 774 707 138 188 181

4 unchanged sentences

Net pension enhancement and curtailment/settlement cost 205 489 280 4 32 49 — — —

489 280 164 32 49 ( 98 ) — — —

Net periodic benefit cost 1,002 1,465 1,565 596 778 1,000 304 424 493

7 unchanged sentences

Total recorded in net periodic benefit cost and other comprehensive income, before tax 63 179 420 ( 1,383 ) ( 2,231 ) 1,090 ( 1,577 ) ( 501 ) 359

179 420 1,564 ( 2,231 ) 1,090 2,203 ( 501 ) 359 956

Costs for defined contribution plans were $ 365 million, $ 177 million and $ 358 million in 2022, 2021, and 2020, respectively.

2 unchanged sentences

Total Pension and Other Postretirement Benefits

2021 2020 2019

(millions of dollars)

2022 2021 2020

(Charge)/credit to other comprehensive income, before tax

6 unchanged sentences

(Charge)/credit to other comprehensive income including noncontrolling interests, after tax 3,798 4,043 926

4,043 926 ( 1,510 )

Charge/(credit) to equity of noncontrolling interests ( 212 ) ( 217 ) 30

14 unchanged sentences

Pension Non-U.S.

Fair Value Measurement at

(millions of dollars) Fair Value Measurement at

December 31, 2022, Using:

2 unchanged sentences

Level 1 Level 2 Level 3 Net Asset Value Total Level 1 Level 2 Level 3 Net Asset Value Total

(millions of dollars)

Asset category:

17 unchanged sentences

What changed 10-K

Item 9A. Controls and Procedures