What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2023-05-02 compared with 2022-11-02 · 72 added, 150 removed, 345 unchanged (39% of the section changed)

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Revenues and other income

7 unchanged sentences

Selling, general and administrative expenses 2,390 2,409

Depreciation and depletion (including impairments) 5,642 4,990 18,976 14,946

Depreciation and depletion (includes impairments) 4,244 8,883

Exploration expenses, including dry holes 141 173

218 190 677 530

Non-service pension and postretirement benefit expense 167 108

3 unchanged sentences

Income (loss) before income taxes 16,803 8,556

Income taxes 5,224 2,664 14,389 4,986

Income tax expense (benefit) 4,960 2,806

Net income (loss) including noncontrolling interests 11,843 5,750

2 unchanged sentences

Earnings (loss) per common share (dollars)

4.68 1.57 10.17 3.31

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

4.68 1.57 10.17 3.31

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

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

1 unchanged sentence

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Net income (loss) including noncontrolling interests 11,843 5,750

10 unchanged sentences

(millions of dollars, unless noted)

September 30, 2022 December 31, 2021

March 31, 2023 December 31, 2022

Current assets

28 unchanged sentences

Common stock held in treasury

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

( 3,976 million shares at March 31, 2023 and

3,937 million shares at December 31, 2022)

5 unchanged sentences

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

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(millions of dollars) Nine Months Ended September 30,

CASH FLOW FROM OPERATING ACTIVITIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars) Three Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

Net income (loss) including noncontrolling interests 11,843 5,750

Depreciation and depletion (including impairments) 18,976 14,946

Depreciation and depletion (includes impairments) 4,244 8,883

Changes in operational working capital, excluding cash and debt ( 302 ) 1,086

1 unchanged sentence

Net cash provided by operating activities 16,341 14,788

CASH FLOW FROM INVESTING ACTIVITIES

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment ( 5,412 ) ( 3,911 )

3 unchanged sentences

Net cash used in investing activities ( 4,925 ) ( 3,945 )

CASH FLOW FROM FINANCING ACTIVITIES

CASH FLOWS FROM FINANCING ACTIVITIES

Additions to long-term debt 20 —

Reductions in long-term debt — ( 4 )

Additions to short-term debt

Reductions in short-term debt

1 unchanged sentence

Additions/(reductions) in debt with three months or less maturity ( 192 ) 1,366

Contingent consideration payments ( 58 ) ( 28 )

Cash dividends to ExxonMobil shareholders ( 3,738 ) ( 3,760 )

21 unchanged sentences

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

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

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

Other ( 1 ) — — — ( 1 ) 4 3

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

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

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

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

Dispositions — — — — — — —

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

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

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

Other ( 3 ) — — — ( 3 ) ( 29 ) ( 32 )

Net income (loss) for the period — 19,660 — — 19,660 538 20,198

Dividends - common shares — ( 3,685 ) — — ( 3,685 ) ( 68 ) ( 3,753 )

Other comprehensive income (loss) — — ( 2,786 ) — ( 2,786 ) ( 339 ) ( 3,125 )

Acquisitions, at cost — — — ( 4,494 ) ( 4,494 ) ( 351 ) ( 4,845 )

Dispositions — — — 1 1 — 1

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

Three Months Ended September 30, 2022 Three Months Ended September 30, 2021

Common Stock Share Activity (millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

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

Acquisitions — ( 50 ) ( 50 ) — — —

Dispositions — — — — — —

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

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

ExxonMobil Share of Equity

(millions of dollars, unless noted)

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

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

6 unchanged sentences

Dispositions — — — 2 2 — 2

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

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

Balance as of December 31, 2022 15,752 432,860 ( 13,270 ) ( 240,293 ) 195,049 7,424 202,473

6 unchanged sentences

Dispositions — — — 2 2 — 2

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

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

Common Stock Share Activity (millions of shares)

Balance as of March 31, 2023 15,904 440,552 ( 13,095 ) ( 244,676 ) 198,685 7,729 206,414

Three Months Ended March 31, 2023 Three Months Ended March 31, 2022

Common Stock Share Activity

(millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

2 unchanged sentences

Dispositions — — — — — —

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

Balance as of March 31 8,019 ( 3,976 ) 4,043 8,019 ( 3,806 ) 4,213

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

9 unchanged sentences

As a result, the Corporation’s first-quarter 2022 earnings included after-tax charges of $ 3.4 billion largely representing the full impairment of its operations related to Sakhalin.

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

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

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

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 (includes impairments)” on the Condensed Consolidated Statement of Income.

Effective October 14, 2022 the Russian government unilaterally terminated the Corporation’s interests in Sakhalin, transferring operations to a Russian operator.

The Corporation’s fourth-quarter 2022 results included 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 resulted in approximately 150 million oil-equivalent barrels no longer qualifying as proved reserves at year-end 2022.

Litigation and Other Contingencies

9 unchanged sentences

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2022, for guarantees relating to notes, loans and performance under contracts.

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2023, for guarantees relating to notes, loans and performance under contracts.

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

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.

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.

September 30, 2022

March 31, 2023

(millions of dollars) Equity Company

6 unchanged sentences

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

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

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

In the first quarter and early April 2023, the Corporation entered into two long-term purchase agreements with an estimated total obligation of approximately $ 4.6 billion.

As of March 31, undiscounted commitments for leases not yet commenced totaled $ 4.1 billion for operating leases and $ 2.3 billion for finance leases.

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

8 unchanged sentences

ExxonMobil Share of Accumulated Other

Comprehensive Income (millions of dollars)

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, 2021 ( 11,499 ) ( 2,265 ) ( 13,764 )

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

( 1,041 ) 289 ( 752 )

Amounts reclassified from accumulated other comprehensive income — 87 87

Total change in accumulated other comprehensive income 661 189 850

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

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

Balance as of December 31, 2022 ( 14,591 ) 1,321 ( 13,270 )

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

( 4,680 ) 335 ( 4,345 )

Amounts reclassified from accumulated other comprehensive income — 4 4

Total change in accumulated other comprehensive income 157 18 175

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

Balance as of March 31, 2023 ( 14,434 ) 1,339 ( 13,095 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $( 74 ) million and $ 79 million in 2023 and 2022, respectively.

Amounts Reclassified Out of Accumulated Other

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

Comprehensive Income - Before-tax Income/(Expense)

(millions of dollars)

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

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

2 unchanged sentences

Income Tax (Expense)/Credit For

Components of Other Comprehensive Income (millions of dollars)

Components of Other Comprehensive Income

(millions of dollars)

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Foreign exchange translation adjustment 48 ( 22 )

3 unchanged sentences

Earnings Per Share

Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Earnings per common share

Earnings per common share Three Months Ended

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

19,660 6,750 42,990 14,170

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

4,185 4,276 4,227 4,275

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

4.68 1.57 10.17 3.31

Dividends paid per common share (dollars)

0.88 0.87 2.64 2.61

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

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

period shown.

Pension and Other Postretirement Benefits

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Components of net benefit cost

13 unchanged sentences

Amortization of prior service cost 12 12

Net pension enhancement and curtailment/settlement cost — 4 ( 1 ) 16

Net benefit cost 168 156

7 unchanged sentences

Financial Instruments and Derivatives

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

September 30, 2022

The estimated fair value of financial instruments and derivatives at March 31, 2023 and December 31, 2022, and the related hierarchy level for the fair value measurement was as follows:

March 31, 2023

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

49 unchanged sentences

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

At September 30, 2022 and December 31, 2021, respectively, the Corporation had $ 1,826 million and $ 641 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

At March 31, 2023 and December 31, 2022, respectively, the Corporation had $ 884 million and $ 1,494 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

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

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

As of September 30, 2022, the Corporation has designated $ 4.4 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

As of March 31, 2023, the Corporation has designated $ 4.9 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

The net investment hedge is deemed to be perfectly effective.

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

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

The Corporation had undrawn short-term committed lines of credit of $ 363 million and undrawn long-term committed lines of credit of $ 1,281 million as of first quarter 2023.

Derivative Instruments

3 unchanged sentences

The Corporation’s commodity derivatives are not accounted for under hedge accounting.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of September 30, 2022 and December 31, 2021, or results of operations for the periods ended September 30, 2022 and 2021.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2023 and December 31, 2022, or results of operations for the periods ended March 31, 2023 and 2022.

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

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

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

(millions) September 30, 2022 December 31, 2021

The net notional long/(short) position of derivative instruments at March 31, 2023 and December 31, 2022, was as follows:

(millions) March 31, 2023 December 31, 2022

Crude oil (barrels) 15 4

3 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Sales and other operating revenue 651 ( 2,535 )

2 unchanged sentences

Disclosures about Segments and Related Information

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

Product Solutions consists of three operating segments:

• Energy Products:

Fuels, aromatics, and catalysts and licensing

• Chemical Products:

Olefins, polyethylene, polypropylene, and intermediates

• Specialty Products:

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

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

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

Earnings (Loss) After Income Tax

United States 1,632 2,376

9,309 3,082 19,043 7,795

Energy Products

3 unchanged sentences

United States 324 770

177 907 1,263 2,695

Specialty Products

United States 451 246

456 592 871 1,454

Corporate and Financing (1)

( 355 ) ( 694 )

Corporate total 11,430 5,480

1 unchanged sentence

United States 2,770 2,656

8,770 2,295 22,214 9,181

Energy Products

3 unchanged sentences

United States 2,029 3,094

4,213 4,215 13,207 12,200

Specialty Products

United States 1,568 1,391

3,709 3,309 10,478 9,382

Corporate and Financing 9 7

Corporate total 83,644 87,734

106,512 71,892 305,511 195,387

Intersegment Revenue

United States 4,956 6,191

11,723 9,371 36,091 23,935

Energy Products

United States 5,451 6,849

9,551 6,787 29,161 16,872

Chemical Products

United States 1,788 1,767

1,252 1,098 4,359 2,849

Specialty Products

United States 680 559

246 212 665 532

Corporate and Financing 64 57

(1) See footnote on the next page.

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

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

Geographic Sales and Other Operating Revenue

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2022 2021 2022 2021

United States 31,291 31,994

52,353 55,740

106,512 71,892 305,511 195,387

Total 83,644 87,734

Significant Non-U.S.

revenue sources include:

Canada 8,468 5,837 25,105 15,378

United Kingdom 7,011 7,548

Canada 6,721 6,995

Singapore 3,731 4,322

France 3,484 4,356

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

Belgium 2,649 2,836

Italy 2,536 2,836

Australia 2,428 2,456

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

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

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

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

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

1 unchanged sentence

operations where attribution to a specific country is not practicable.

Revenue from Contracts with Customers

Sales and other operating revenue includes both revenue within the scope of ASC 606 and outside the scope of ASC 606.

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

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

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

Sales and other operating revenue

(millions of dollars)

Three Months Ended

Revenue from contracts with customers 64,304 68,816

Revenue outside the scope of ASC 606 19,340 18,918

Total 83,644 87,734

Divestment Activities

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

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

The transaction is anticipated to close in the fourth quarter.

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

The transaction is anticipated to close in the fourth quarter.

In the first quarter, the Corporation completed the sale of Mobil California Exploration and Producing Asset Company, consisting of ExxonMobil's interest in the Aera Energy joint venture, to Green Gate Resources E, LLC.

Cash flow related to the divestment was $ 0.6 billion in the first quarter, and the Corporation expects to receive additional consideration of $ 0.4 billion, primarily in 2023.

The net book value of the assets divested was $ 1.1 billion.

In January 2023, the Corporation executed an agreement with Bangchak Corporation to sell its interest in Esso Thailand Ltd.

that includes the Sriracha Refinery, select distribution terminals, and a network of retail stations.

The transaction is anticipated to close in third quarter 2023.

In November 2022, the Corporation executed an agreement for the sale of the Santa Ynez Unit and associated assets in California.

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

Should the conditions precedent be met and the potential transaction close, the Corporation would expect to recognize a loss of up to $ 2 billion.

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

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

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

In mid-2022, a Nigerian court issued an order to halt transition activities and enter into arbitration with the Nigerian National Petroleum Company.

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

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

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

The transaction would be expected to close in 2023.

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

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

What changed 10-Q

Item 1. Financial Statements