What changed in this filing

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Item 1. Financial Statements

2023-08-01 compared with 2023-05-02 · 112 added, 32 removed, 385 unchanged (27% of the section changed)

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Revenues and other income

19 unchanged sentences

Earnings (loss) per common share (dollars)

1.94 4.21 4.73 5.49

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

1.94 4.21 4.73 5.49

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

June 30, Six Months Ended

2023 2022 2023 2022

Net income (loss) including noncontrolling interests 8,153 18,574 19,996 24,324

10 unchanged sentences

(millions of dollars, unless noted)

March 31, 2023 December 31, 2022

June 30, 2023 December 31, 2022

Current assets

28 unchanged sentences

Common stock held in treasury

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

( 4,016 million shares at June 30, 2023 and

3,937 million shares at December 31, 2022)

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars) Three Months Ended

(millions of dollars) Six Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

12 unchanged sentences

Additions to long-term debt 136 —

Reductions in long-term debt ( 6 ) —

Reductions in short-term debt

1 unchanged sentence

Additions/(reductions) in debt with three months or less maturity ( 172 ) 1,303

Contingent consideration payments ( 68 ) ( 58 )

Cash dividends to ExxonMobil shareholders ( 7,439 ) ( 7,487 )

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

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

Amortization of stock-based awards 143 — — — 143 — 143

5 unchanged sentences

Dispositions — — — 1 1 — 1

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

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

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 130 — — — 130 — 130

5 unchanged sentences

Dispositions — — — 2 2 — 2

Balance as of June 30, 2023 16,029 444,731 ( 12,657 ) ( 249,057 ) 199,046 7,951 206,997

Three Months Ended June 30, 2023 Three Months Ended June 30, 2022

Common Stock Share Activity (millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

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

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

Acquisitions — ( 40 ) ( 40 ) — ( 45 ) ( 45 )

Dispositions — — — — — —

Balance as of June 30 8,019 ( 4,016 ) 4,003 8,019 ( 3,851 ) 4,168

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

Amortization of stock-based awards 281 — — — 281 — 281

Other ( 9 ) — — — ( 9 ) ( 1 ) ( 10 )

Net income (loss) for the period — 23,330 — — 23,330 994 24,324

Dividends - common shares — ( 7,487 ) — — ( 7,487 ) ( 123 ) ( 7,610 )

Other comprehensive income (loss) — — ( 1,253 ) — ( 1,253 ) ( 88 ) ( 1,341 )

Acquisitions, at cost — — — ( 6,126 ) ( 6,126 ) ( 696 ) ( 6,822 )

Dispositions — — — 3 3 — 3

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

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 288 — — — 288 — 288

Other ( 11 ) — — — ( 11 ) 11 —

Net income (loss) for the period — 19,310 — — 19,310 686 19,996

Dividends - common shares — ( 7,439 ) — — ( 7,439 ) ( 293 ) ( 7,732 )

Other comprehensive income (loss) — — 613 — 613 123 736

Acquisitions, at cost — — — ( 8,768 ) ( 8,768 ) — ( 8,768 )

Dispositions — — — 4 4 — 4

Balance as of June 30, 2023 16,029 444,731 ( 12,657 ) ( 249,057 ) 199,046 7,951 206,997

Six Months Ended June 30, 2023 Six Months Ended June 30, 2022

Common Stock Share Activity

4 unchanged sentences

Dispositions — — — — — —

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

Balance as of June 30 8,019 ( 4,016 ) 4,003 8,019 ( 3,851 ) 4,168

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

21 unchanged sentences

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.

State and local governments and other entities in various jurisdictions across the United States and its territories have filed a number of legal proceedings against several oil and gas companies, including ExxonMobil, requesting unprecedented legal and equitable relief for various alleged injuries purportedly connected to climate change.

These lawsuits assert a variety of novel, untested claims under statutory and common law.

Additional such lawsuits may be filed.

We believe the legal and factual theories set forth in these proceedings are meritless and represent an inappropriate attempt to use the court system to usurp the proper role of policymakers in addressing the societal challenges of climate change.

Local governments in Louisiana have filed unprecedented legal proceedings against a number of oil and gas companies, including ExxonMobil, requesting compensation for the restoration of coastal marshes in the state.

We believe the factual and legal theories set forth in these proceedings are meritless.

While the outcome of any litigation can be unpredictable, we believe the likelihood is remote that the ultimate outcomes of these lawsuits will have a material adverse effect on the Corporation’s operations, financial condition, or financial statements taken as a whole.

We will continue to defend vigorously against these claims.

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.

The Corporation and certain of its consolidated subsidiaries were contingently liable at June 30, 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.

1 unchanged sentence

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

June 30, 2023

(millions of dollars) Equity Company

5 unchanged sentences

(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;

13 unchanged sentences

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

( 1,682 ) 245 ( 1,437 )

Amounts reclassified from accumulated other comprehensive income — 184 184

Total change in accumulated other comprehensive income ( 1,682 ) 429 ( 1,253 )

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

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

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

2 unchanged sentences

Total change in accumulated other comprehensive income 570 43 613

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

Balance as of June 30, 2023 ( 14,021 ) 1,364 ( 12,657 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $( 70 ) million and $ 327 million in 2023 and 2022, respectively.

3 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

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

5 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Foreign exchange translation adjustment 85 ( 68 ) 133 ( 90 )

4 unchanged sentences

Earnings per common share Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

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

7,880 17,850 19,310 23,330

Weighted-average number of common shares outstanding (millions of shares) (1)

4,066 4,233 4,084 4,248

Earnings (loss) per common share (dollars) (2)

1.94 4.21 4.73 5.49

Dividends paid per common share (dollars)

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

period shown.

0.91 0.88 1.82 1.76

(1) Includes restricted shares not vested.

(2) 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

June 30, Six Months Ended

2023 2022 2023 2022

Components of net benefit cost

13 unchanged sentences

Amortization of prior service cost 13 11 25 23

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

Net benefit cost 168 152 336 308

7 unchanged sentences

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

The estimated fair value of financial instruments and derivatives at June 30, 2023 and December 31, 2022, and the related hierarchy level for the fair value measurement was as follows:

June 30, 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 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.

At June 30, 2023 and December 31, 2022, respectively, the Corporation had $ 698 million and $ 1,494 million of collateral under master netting arrangements not offset against the derivatives on the Condensed 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 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.

As of June 30, 2023, the Corporation has designated $ 4.9 billion of its Euro-denominated 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.

The Corporation had undrawn short-term committed lines of credit of $ 545 million and undrawn long-term committed lines of credit of $ 928 million as of second 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 March 31, 2023 and December 31, 2022, or results of operations for the periods ended March 31, 2023 and 2022.

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of June 30, 2023 and December 31, 2022, or results of operations for the periods ended June 30, 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

The net notional long/(short) position of derivative instruments at June 30, 2023 and December 31, 2022, was as follows:

(millions) June 30, 2023 December 31, 2022

Crude oil (barrels) 34 4

3 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Sales and other operating revenue 332 ( 1,413 ) 983 ( 3,948 )

3 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Earnings (Loss) After Income Tax

United States 920 3,749 2,552 6,125

3,657 7,622 8,482 9,734

Energy Products

3 unchanged sentences

United States 486 625 810 1,395

342 450 389 1,086

Specialty Products

United States 373 232 824 478

298 185 621 415

Corporate and Financing (1)

3 unchanged sentences

United States 1,673 3,958 4,443 6,614

3,739 7,101 9,126 13,444

Energy Products

3 unchanged sentences

United States 1,992 3,180 4,021 6,274

3,678 4,497 7,370 8,994

Specialty Products

United States 1,542 1,653 3,110 3,044

3,095 3,591 6,384 6,769

Corporate and Financing 3 8 12 15

2 unchanged sentences

United States 5,044 7,180 10,000 13,371

8,412 13,533 17,811 24,368

Energy Products

United States 5,074 8,348 10,525 15,197

6,988 10,848 13,957 19,610

Chemical Products

United States 2,084 2,558 3,872 4,325

977 1,600 1,754 3,107

Specialty Products

United States 684 713 1,364 1,272

169 195 268 419

Corporate and Financing 64 59 128 116

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

(1) Results for first quarter 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.

1 unchanged sentence

(millions of dollars) Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

United States 31,335 43,264 62,626 75,258

3 unchanged sentences

revenue sources include:

United Kingdom 7,011 7,548

Canada 6,825 9,642 13,546 16,638

United Kingdom 5,242 8,306 12,253 15,854

Singapore 3,758 4,774 7,489 9,096

France 3,494 5,265 6,978 9,622

Belgium 2,649 2,836

Italy 2,527 3,063 5,063 5,898

Belgium 2,410 3,041 5,059 5,877

Australia 2,392 3,205 4,820 5,661

10 unchanged sentences

Three Months Ended

June 30, Six Months Ended

2023 2022 2023 2022

Revenue from contracts with customers 63,322 85,851 127,626 154,667

2 unchanged sentences

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.

Through June 30, 2023, the Corporation realized proceeds of approximately $ 2.1 billion from its divestment activities in 2023 with negligible impact on net after-tax earnings.

This included the sale of the Aera Energy joint venture, the Billings Refinery, certain unconventional assets in the United States, as well as other smaller divestments.

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

1 unchanged sentence

The transaction is anticipated to close in third quarter 2023.

In 2022, the Corporation realized proceeds of approximately $ 5 billion and recognized net after-tax earnings of approximately $ 0.4 billion from its divestment activities.

This included the sale of certain unproved assets in Romania and unconventional assets in Canada and the United States, as well as other smaller divestments.

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

5 unchanged sentences

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

Subsequent Events

On July 13, 2023, the Corporation entered into an agreement to acquire Denbury Inc., a developer of carbon capture, utilization and storage solutions and enhanced oil recovery in exchange for ExxonMobil common stock.

Based on the July 12 closing price for ExxonMobil shares, and at a fixed exchange rate of 0.84 per Denbury share, the transaction value was $ 4.9 billion.

The number of shares issuable in connection with the transaction would have been approximately 45 million.

The transaction is currently expected to close in the fourth quarter of 2023.

In addition to carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations which consist of proved reserves totaling over 200 million barrels of oil equivalent, with 47 thousand oil-equivalent barrels per day of current production.

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