Exxon Mobil Corp 10-Q

ITEM 1. FINANCIAL STATEMENTS CONDENSED CONSOLIDATED STATEMENT OF INCOME (millions of dollars, unless noted) Three Months Ended March 31, 2023 2022 Revenues and other income Sales and other operating revenue 83,644 87,734 Income from equity affiliates 2,381 2,538 Other income 539 228 Total revenues and other income 86,564 90,500 Costs and other deductions Crude oil and product purchases 46,003 52,388 Production and manufacturing expenses 9,436 10,241 Selling, general and administrative expenses 2,390 2,409 Depreciation and depletion (includes impairments) 4,244 8,883 Exploration expenses, including dry holes 141 173 Non-service pension and postretirement benefit expense 167 108 Interest expense 159 188 Other taxes and duties 7,221 7,554 Total costs and other deductions 69,761 81,944 Income (loss) before income taxes 16,803 8,556 Income tax expense (benefit) 4,960 2,806 Net income (loss) including noncontrolling interests 11,843 5,750 Net income (loss) attributable to noncontrolling interests 413 270 Net income (loss) attributable to ExxonMobil 11,430 5,480 Earnings (loss) per common share (dollars) 2.79 1.28 Earnings (loss) per common share - assuming dilution (dollars) 2.79 1.28 The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. 3 CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (millions of dollars) Three Months Ended March 31, 2023 2022 Net income (loss) including noncontrolling interests 11,843 5,750 Other comprehensive income (loss) (net of income taxes) Foreign exchange translation adjustment 173 741 Postretirement benefits reserves adjustment (excluding amortization) 19 105 Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs 6 93 Total other comprehensive income (loss) 198 939 Comprehensive income (loss) including noncontrolling interests 12,041 6,689 Comprehensive income (loss) attributable to noncontrolling interests 436 359 Comprehensive income (loss) attributable to ExxonMobil 11,605 6,330 The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. 4 CONDENSED CONSOLIDATED BALANCE SHEET (millions of dollars, unless noted) March 31, 2023 December 31, 2022 ASSETS Current assets Cash and cash equivalents 32,651 29,640 Cash and cash equivalents – restricted 25 25 Notes and accounts receivable – net 38,808 41,749 Inventories Crude oil, products and merchandise 19,458 20,434 Materials and supplies 4,184 4,001 Other current assets 2,098 1,782 Total current assets 97,224 97,631 Investments, advances and long-term receivables 49,044 49,793 Property, plant and equipment – net 206,023 204,692 Other assets, including intangibles – net 17,080 16,951 Total Assets 369,371 369,067 LIABILITIES Current liabilities Notes and loans payable 2,296 634 Accounts payable and accrued liabilities 59,935 63,197 Income taxes payable 4,435 5,214 Total current liabilities 66,666 69,045 Long-term debt 39,150 40,559 Postretirement benefits reserves 10,183 10,045 Deferred income tax liabilities 23,195 22,874 Long-term obligations to equity companies 2,376 2,338 Other long-term obligations 21,387 21,733 Total Liabilities 162,957 166,594 Commitments and contingencies (Note 3) EQUITY Common stock without par value ( 9,000 million shares authorized, 8,019 million shares issued) 15,904 15,752 Earnings reinvested 440,552 432,860 Accumulated other comprehensive income ( 13,095 ) ( 13,270 ) Common stock held in treasury ( 3,976 million shares at March 31, 2023 and 3,937 million shares at December 31, 2022) ( 244,676 ) ( 240,293 ) ExxonMobil share of equity 198,685 195,049 Noncontrolling interests 7,729 7,424 Total Equity 206,414 202,473 Total Liabilities and Equity 369,371 369,067 The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. 5 CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (millions of dollars) Three Months Ended March 31, 2023 2022 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) including noncontrolling interests 11,843 5,750 Depreciation and depletion (includes impairments) 4,244 8,883 Changes in operational working capital, excluding cash and debt ( 302 ) 1,086 All other items – net 556 ( 931 ) Net cash provided by operating activities 16,341 14,788 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment ( 5,412 ) ( 3,911 ) Proceeds from asset sales and returns of investments 854 293 Additional investments and advances ( 445 ) ( 417 ) Other investing activities including collection of advances 78 90 Net cash used in investing activities ( 4,925 ) ( 3,945 ) CASH FLOWS FROM FINANCING ACTIVITIES Additions to long-term debt 20 — Reductions in short-term debt ( 126 ) ( 2,098 ) Additions/(reductions) in debt with three months or less maturity ( 192 ) 1,366 Cash dividends to ExxonMobil shareholders ( 3,738 ) ( 3,760 ) Cash dividends to noncontrolling interests ( 115 ) ( 60 ) Changes in noncontrolling interests ( 16 ) ( 94 ) Common stock acquired ( 4,340 ) ( 2,067 ) Net cash used in financing activities ( 8,507 ) ( 6,713 ) Effects of exchange rate changes on cash 102 142 Increase/(decrease) in cash and cash equivalents 3,011 4,272 Cash and cash equivalents at beginning of period 29,665 6,802 Cash and cash equivalents at end of period 32,676 11,074 SUPPLEMENTAL DISCLOSURES Income taxes paid 4,404 1,798 Cash interest paid Included in cash flows from operating activities 256 319 Capitalized, included in cash flows from investing activities 291 187 Total cash interest paid 547 506 Noncash right of use assets recorded in exchange for lease liabilities Operating leases 393 240 Finance leases 438 656 The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. 6 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 Amortization of stock-based awards 138 — — — 138 — 138 Other ( 5 ) — — — ( 5 ) 14 9 Net income (loss) for the period — 5,480 — — 5,480 270 5,750 Dividends - common shares — ( 3,760 ) — — ( 3,760 ) ( 60 ) ( 3,820 ) Other comprehensive income (loss) — — 850 — 850 89 939 Acquisitions, at cost — — — ( 2,067 ) ( 2,067 ) ( 108 ) ( 2,175 ) Dispositions — — — 2 2 — 2 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 Amortization of stock-based awards 158 — — — 158 — 158 Other ( 6 ) — — — ( 6 ) ( 16 ) ( 22 ) Net income (loss) for the period — 11,430 — — 11,430 413 11,843 Dividends - common shares — ( 3,738 ) — — ( 3,738 ) ( 115 ) ( 3,853 ) Other comprehensive income (loss) — — 175 — 175 23 198 Acquisitions, at cost — — — ( 4,385 ) ( 4,385 ) — ( 4,385 ) Dispositions — — — 2 2 — 2 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 Balance as of December 31 8,019 ( 3,937 ) 4,082 8,019 ( 3,780 ) 4,239 Acquisitions — ( 39 ) ( 39 ) — ( 26 ) ( 26 ) Dispositions — — — — — — 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. 7 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Note 1. Basis of Financial Statement Preparation These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2022 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. Prior data has been reclassified in certain cases to conform to the current presentation basis. The Corporation's exploration and production activities are accounted for under the "successful efforts" method. Note 2. Russia In response to Russia’s military action in Ukraine, the Corporation announced in early 2022 that it planned to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and develop steps to exit the venture. In light of this, an impairment assessment was conducted, and management determined that the carrying value of the asset group was not recoverable. As a result, the Corporation’s first-quarter 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 (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. 8 Note 3. Litigation and Other Contingencies Litigation A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. 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 purposes of our contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole. Other Contingencies 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. March 31, 2023 (millions of dollars) Equity Company Obligations (1) Other Third-Party Obligations Total Guarantees Debt-related 1,229 155 1,384 Other 739 5,385 6,124 Total 1,968 5,540 7,508 (1) ExxonMobil share 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 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; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights; sanctions and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable. 9 Note 4. Other Comprehensive Income Information ExxonMobil Share of Accumulated Other 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) 661 102 763 Amounts reclassified from accumulated other comprehensive income — 87 87 Total change in accumulated other comprehensive income 661 189 850 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) 157 14 171 Amounts reclassified from accumulated other comprehensive income — 4 4 Total change in accumulated other comprehensive income 157 18 175 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) Three Months Ended March 31, 2023 2022 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) ( 8 ) ( 120 ) Income Tax (Expense)/Credit For Components of Other Comprehensive Income (millions of dollars) Three Months Ended March 31, 2023 2022 Foreign exchange translation adjustment 48 ( 22 ) Postretirement benefits reserves adjustment (excluding amortization) 11 ( 40 ) Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs ( 2 ) ( 27 ) Total 57 ( 89 ) 10 Note 5. Earnings Per Share Earnings per common share Three Months Ended March 31, 2023 2022 Net income (loss) attributable to ExxonMobil (millions of dollars) 11,430 5,480 Weighted-average number of common shares outstanding (millions of shares) 4,102 4,266 Earnings (loss) per common share (dollars) (1) 2.79 1.28 Dividends paid per common share (dollars) 0.91 0.88 (1) The calculation of earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown. Note 6. Pension and Other Postretirement Benefits (millions of dollars) Three Months Ended March 31, 2023 2022 Components of net benefit cost Pension Benefits - U.S. Service cost 120 179 Interest cost 166 129 Expected return on plan assets ( 133 ) ( 140 ) Amortization of actuarial loss/(gain) 21 39 Amortization of prior service cost ( 7 ) ( 7 ) Net pension enhancement and curtailment/settlement cost 8 37 Net benefit cost 175 237 Pension Benefits - Non-U.S. Service cost 82 150 Interest cost 234 160 Expected return on plan assets ( 174 ) ( 213 ) Amortization of actuarial loss/(gain) 14 47 Amortization of prior service cost 12 12 Net benefit cost 168 156 Other Postretirement Benefits Service cost 20 40 Interest cost 70 55 Expected return on plan assets ( 4 ) ( 3 ) Amortization of actuarial loss/(gain) ( 30 ) 3 Amortization of prior service cost ( 10 ) ( 11 ) Net benefit cost 46 84 11 Note 7. Financial Instruments and Derivatives 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 Fair 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 Assets Derivative assets (1) 5,122 2,372 — 7,494 ( 5,761 ) ( 943 ) — 790 Advances to/receivables from equity companies (2)(6) — 2,440 5,165 7,605 — — 614 8,219 Other long-term financial assets (3) 1,243 — 1,506 2,749 — — 313 3,062 Liabilities Derivative liabilities (4) 4,233 2,720 — 6,953 ( 5,761 ) ( 60 ) — 1,132 Long-term debt (5) 32,905 1,036 6 33,947 — — 3,415 37,362 Long-term obligations to equity companies (6) — — 2,502 2,502 — — ( 126 ) 2,376 Other long-term financial liabilities (7) — — 713 713 — — 40 753 December 31, 2022 Fair 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 Assets Derivative assets (1) 4,309 3,455 — 7,764 ( 5,778 ) ( 969 ) — 1,017 Advances to/receivables from equity companies (2)(6) — 2,406 4,958 7,364 — — 685 8,049 Other long-term financial assets (3) 1,208 — 1,413 2,621 — — 346 2,967 Liabilities Derivative liabilities (4) 3,417 3,264 — 6,681 ( 5,778 ) ( 79 ) — 824 Long-term debt (5) 33,112 1,880 6 34,998 — — 4,173 39,171 Long-term obligations to equity companies (6) — — 2,467 2,467 — — ( 129 ) 2,338 Other long-term financial liabilities (7) — — 679 679 — — 38 717 (1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net (2) Included in the Balance Sheet line: Investments, advances and long-term receivables (3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net (4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations (5) Excluding finance lease obligations (6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company. (7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates. 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. 12 The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of March 31, 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 $ 363 million and undrawn long-term committed lines of credit of $ 1,281 million as of first quarter 2023. Derivative Instruments 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. Commodity contracts held for trading purposes are presented in the Condensed Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue". The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of 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 March 31, 2023 and December 31, 2022, was as follows: (millions) March 31, 2023 December 31, 2022 Crude oil (barrels) 15 4 Petroleum products (barrels) ( 48 ) ( 52 ) Natural gas (MMBTUs) ( 29 ) ( 64 ) Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Condensed Consolidated Statement of Income are included in the following lines on a before-tax basis: (millions of dollars) Three Months Ended March 31, 2023 2022 Sales and other operating revenue 651 ( 2,535 ) Crude oil and product purchases ( 25 ) ( 26 ) Total 626 ( 2,561 ) 13 Note 8. Disclosures about Segments and Related Information (millions of dollars) Three Months Ended March 31, 2023 2022 Earnings (Loss) After Income Tax Upstream United States 1,632 2,376 Non-U.S. (1) 4,825 2,112 Energy Products United States 1,910 489 Non-U.S. 2,273 ( 684 ) Chemical Products United States 324 770 Non-U.S. 47 636 Specialty Products United States 451 246 Non-U.S. 323 230 Corporate and Financing (1) ( 355 ) ( 694 ) Corporate total 11,430 5,480 Sales and Other Operating Revenue Upstream United States 2,770 2,656 Non-U.S. 5,387 6,343 Energy Products United States 24,924 24,853 Non-U.S. 39,976 41,715 Chemical Products United States 2,029 3,094 Non-U.S. 3,692 4,497 Specialty Products United States 1,568 1,391 Non-U.S. 3,289 3,178 Corporate and Financing 9 7 Corporate total 83,644 87,734 Intersegment Revenue Upstream United States 4,956 6,191 Non-U.S. 9,399 10,835 Energy Products United States 5,451 6,849 Non-U.S. 6,969 8,762 Chemical Products United States 1,788 1,767 Non-U.S. 777 1,507 Specialty Products United States 680 559 Non-U.S. 99 224 Corporate and Financing 64 57 (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. 14 Geographic Sales and Other Operating Revenue (millions of dollars) Three Months Ended March 31, 2023 2022 United States 31,291 31,994 Non-U.S. 52,353 55,740 Total 83,644 87,734 Significant Non-U.S. revenue sources include: (1) United Kingdom 7,011 7,548 Canada 6,721 6,995 Singapore 3,731 4,322 France 3,484 4,356 Belgium 2,649 2,836 Italy 2,536 2,836 Australia 2,428 2,456 (1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in non-U.S. 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 March 31, 2023 2022 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 15 Note 9. Divestment Activities 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 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. 16