What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2024-02-28 compared with 2023-02-22 · 498 added, 455 removed, 2983 unchanged (24% of the section changed)

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Based on this evaluation, management concluded that Exxon Mobil Corporation’s internal control over financial reporting was effective as of December 31, 2023.

The Corporation excluded Denbury Inc.

from our assessment of internal control over financial reporting as of December 31, 2023, because it was acquired by the Corporation in a business combination during 2023.

Total assets and total revenues of Denbury Inc., a wholly owned subsidiary, represent two percent and less than one percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2023.

PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2023, as stated in their report included in the Financial Section of this report.

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OTHER INFORMATION

During the three months ended December 31, 2023, none of the Company’s directors or officers adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408(a) of Regulation S-K.

DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS

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• 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 “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”.

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

EXECUTIVE COMPENSATION

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Divestment Activities 118

Mergers and Acquisitions 119

Supplemental Information on Oil and Gas Exploration and Production Activities 120

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Net debt to capital (percent) (1)

5.4 18.9 27.8

ExxonMobil share of equity at year-end 204,802 195,049 168,577

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(1) Debt net of cash.

(2) Regular employees are defined as active executive, management, professional, technical and wage employees who work full time or part time for the Corporation and are covered by the Corporation’s benefit plans and programs.

(2) Regular employees are defined as active executive, management, professional, technical, administrative, and wage employees who work full time or part time for the Corporation and are covered by the Corporation’s benefit plans and programs.

FREQUENTLY USED TERMS

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36,561 56,875 24,395

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

Average capital employed (Non-GAAP) 243,440 228,404 222,890

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

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Structural Cost Savings

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.

Structural cost savings describe decreases in cash opex excluding energy and production taxes 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 structural cost savings totaled $9.7 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.

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Subtotal 69.7 68.9

ExxonMobil’s share of equity company expenses 9.1 13.0

Total operating costs (Non-GAAP)

ExxonMobil's share of equity company expenses (Non-GAAP) 9.1 10.5

Total Adjusted Operating Costs (Non-GAAP)

Depreciation and depletion (includes impairments) 19.0 20.6

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Total Cash Operating Expenses (Cash Opex) (Non-GAAP)

Energy and production taxes 11.0 23.8

Energy and production taxes (Non-GAAP) 11.0 14.9

Market Activity /

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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.

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

The earnings (loss) impact of an Identified Item for an individual segment in a given quarter may be less than $250 million when the item impacts several segments or several periods.

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Gain/(loss) on sale of assets 305 — 305 299 587 886 — 459 459

Inventory valuation - lower of cost or market — — — — — — — (61) (61)

Tax-related items 184 (126) 58 — (1,415) (1,415) — — —

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Tax-related items 53 — 53 — — — — — —

Other — (147) (147) — — — — — —

Identified Items 32 (420) (388) — — — — — —

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1,594 431 2,025 2,328 1,215 3,543 3,697 3,292 6,989

FREQUENTLY USED TERMS

Specialty Products 2023 2022 2021

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Tax-related items 12 5 17 — — — — — —

Other — (28) (28) — — — — — —

Identified Items 12 (105) (93) — (40) (40) 498 136 634

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1,524 1,283 2,807 1,190 1,265 2,455 954 1,672 2,625

FREQUENTLY USED TERMS

Corporate and Financing

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Gain/(loss) on sale of assets 305 886 1,081

Inventory valuation - lower of cost or market — — (61)

Tax-related items 348 (1,501) —

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FORWARD-LOOKING STATEMENTS

Statements related to outlooks;

Statements related to future events;

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

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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.

Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, lithium and other future plans to reduce emissions and emission intensity of ExxonMobil, its affiliates, companies it is seeking to acquire and third parties are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, 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;

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

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

realization and maintenance of structural cost reductions and efficiency gains, including the ability to offset inflationary pressure;

plans to reduce future emissions and emissions intensity, including ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, to reach Scope 1 and 2 net zero in Upstream Permian Basin unconventional operated assets by 2030 and in Pioneer Permian assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, and to reach near-zero methane emissions from operated assets and other methane initiatives;

meeting ExxonMobil’s divestment and start-up plans, and associated project plans as well as technology advances, including the timing and outcome of projects to capture, transport and store CO2, produce hydrogen, produce biofuels, produce lithium, and use plastic waste as feedstock for advanced recycling;

timely granting of governmental permits and certifications;

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;

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

resource recoveries and production rates;

and planned Denbury and Pioneer integrated benefits, 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 and seasonal fluctuations that impact prices and differentials for our products;

changes in law, regulations, taxes, trade sanctions, or policies, such as government policies supporting lower carbon investment opportunities such as the U.S.

Inflation Reduction Act and the ability for projects to qualify for the financial incentives available thereunder, the punitive European taxes on the oil and gas sector and unequal support for different technological methods of emissions reduction or evolving, ambiguous and unharmonized standards imposed by various jurisdictions related to sustainability and GHG reporting;

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

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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;

the ability to access debt markets on favorable terms or at all;

the occurrence, pace, rate of recovery and effects of public health crises, including the responses from governments;

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

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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;

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

the actions of government or other actors against our core business activities and acquisitions, divestitures or financing opportunities;

war, civil unrest, attacks against the company or industry, and other geopolitical or security disturbances, including disruption of land or sea transportation routes;

expropriations, seizure, or capacity, insurance, shipping or export limitations imposed by governments or laws;

opportunities for potential acquisitions, investments or divestments and satisfaction of applicable conditions to closing, including timely regulatory approvals;

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

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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.

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

In addition, historical, current, and forward-looking environmental and other 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.

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

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.

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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 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

Actions needed to advance ExxonMobil’s 2030 greenhouse gas emission-reductions plans are incorporated into its medium-term business plans, which are updated annually.

The reference case for planning beyond 2030 is based on the Company’s Global Outlook (Outlook) research and publication.

The Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050.

However, the Outlook does not attempt to project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050.

As future policies and technology advancements emerge, they will be incorporated into the Outlook, and the Company’s business plans will be updated accordingly.

References to projects or opportunities may not reflect investment decisions made by the Corporation or its affiliates.

Individual projects or opportunities may advance based on a number of factors, including availability of supportive policy, permitting, technological advancement for cost-effective abatement, insights from the company planning process, and alignment with our partners and other stakeholders.

Capital investment guidance in lower-emission investments is based on our corporate plan;

however, actual investment levels will be subject to the availability of the opportunity set, public policy support, and focused on returns.

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 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.

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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 lower-emission fuels.

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

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

ExxonMobil's reportable 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, 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 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.

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

The businesses are supported by centralized service-delivery groups, including Global Projects, Technology and Engineering, Global Operations and Sustainability, as well as three organizations formed in 2023:

Global Trading, Supply Chain, and Global Business Solutions.

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

The annual Corporate Plan process establishes the economic assumptions used for evaluating investments and sets operating and capital objectives.

The Global Outlook (Outlook), developed annually, is the foundation for the Corporate Plan assumptions.

Price ranges for crude oil and 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 part of the Corporate Plan assumptions developed annually.

Corporate Plan volume projections are based on individual field production profiles, which are also updated at least annually.

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

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.

All major investments are reappraised to ensure we learn from our decisions, and the development and execution of the project.

Lessons learned are incorporated in future projects.

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

BUSINESS ENVIRONMENT

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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;

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;

greenhouse gas emission-reduction technologies;

and supportive government policies.

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

and relevant government policies.

The 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.

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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 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.

Included in the range of these scenarios are the Intergovernmental Panel on Climate Change (IPCC) Likely Below 2°C scenarios and three scenarios from the International Energy Agency (IEA):

IEA Stated Policies Scenario (STEPS), which reflects a sector-by-sector assessment of current policy in place or announced by governments;

IEA Announced Pledges Scenario (APS), which reflects aspirational government targets met on time and in full;

and IEA Net Zero Emissions by 2050 Scenario (NZE), which the IEA describes as extremely challenging, acknowledging that society is not currently on the IEA NZE pathway.

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

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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 future versions of the Outlook.

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 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.

Developing countries projected to drive energy demand growth

Primary energy - Quadrillion Btu

ExxonMobil 2023 Global Outlook

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

Coincident with this population increase, the Outlook projects worldwide economic growth to average approximately 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.

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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 over 75 percent from 2021 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 about 80 percent from 2021 to 2050, with developing countries likely to account for over 75 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 2021, in part due to 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 to approximately 15 percent of the world’s electricity in 2050, versus approximately 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 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.

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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.

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.

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

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 more than 60 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.

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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 110 million oil-equivalent barrels per day, an increase of about 15 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.

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 conventional sources;

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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 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 25 percent from 2021 to 2050, with around two-thirds of that increase coming from the Asia Pacific region.

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.

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 25 percent from 2021 to 2050, with greater than 75 percent 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.

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

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.

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

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

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

ExxonMobil 2023 Global Outlook Source:

ExxonMobil 2023 Global Outlook

* Electricity and Hydrogen are secondary energies derived from the primary energies shown

**Includes biomass, biofuels, hydropower, and geothermal

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 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.

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

Coal and natural 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.

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Total energy supplied from wind and solar is expected to increase rapidly, growing over 500 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.

Decarbonization of industrial 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.

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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.

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

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

Projected oil supply and demand

Projected global oil supply and demand

Million barrels per day

Excludes biofuels;

IEA STEPS and IEA NZE Source:

IEA STEPS, IEA APS, and IEA NZE Source:

IEA WEO 2023;

Outlook Source:

ExxonMobil 2022 Outlook for Energy;

Average IPCC Lower 2°C Source:

Global Outlook Source:

ExxonMobil 2023 Global Outlook;

IPCC Likely Below 2°C Average and Range Source:

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

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Billion cubic feet per day

IEA STEPS and IEA NZE Source:

IEA STEPS, IEA APS, and IEA NZE Source:

IEA WEO 2023;

Outlook Source:

ExxonMobil 2022 Outlook for Energy;

Average IPCC Lower 2°C Source:

Global Outlook Source:

ExxonMobil 2023 Global Outlook;

IPCC Likely Below 2°C Average and Range 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.

To meet projected demand under our Outlook and the IEA's 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, 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.

The investments to develop and supply resources to meet global demand through 2050 will be significant and would be needed to meet even rapidly declining demand for oil and gas envisioned in aggressive decarbonization scenarios.

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.

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The climate accord reached at the 2015 Conference of the Parties (COP 21) in Paris set many new goals, and many related policies are still emerging.

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 reflects an environment with increasingly stringent climate policies and is consistent with the successful achievement of 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 2022.

We have assumed success of these NDCs, despite the 2023 United Nations Environment Programme (UNEP) Emissions Gap Report projecting that the G20 members will fall short of their NDCs.

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

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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 27 in Egypt in November 2022 as well as other policy developments in light of net-zero ambitions formulated by some nations.

The Corporation continues to monitor the updates to the NDCs that nations provided around COP 28 in Dubai in 2023, 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.

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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.

With advancements in technology, clear and consistent government policies that support needed investments, and the development of market-driven mechanisms, we aim to achieve net-zero Scope 1 and 2 greenhouse gas emissions in our operated assets by 2050.

Our net-zero ambition is backed by a comprehensive approach centered on detailed emission-reduction roadmaps for our major operated assets that were completed in 2022.

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

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.

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.

We continue to update the roadmaps to reflect technology and policy, and to account for the many potential pathways, and the pace of the energy transition.

Compared to 2016 levels, our 2030 plans are expected to drive the following reductions:

• 20-30 percent reduction in corporate-wide greenhouse gas intensity;

• 70-80 percent reduction in corporate-wide methane intensity;

• 40-50 percent reduction in upstream greenhouse gas intensity;

• 60-70 percent reduction in corporate-wide flaring intensity.

The achievement of these plans is also expected to result in an absolute reduction in corporate-wide greenhouse gas emissions by approximately 20 percent, compared to 2016 levels.

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

These plans exclude our recent acquisition of Denbury Inc.

The Corporation plans to continue to pursue lower-emission investments.

These investments are targeted at reducing emissions in the company’s operations as well as reducing the emissions of other companies.

At this early stage, supportive policy remains critical to enable emissions reductions, advance technology, and drive scale to improve costs.

ExxonMobil’s Low Carbon Solutions business is working with the Product Solutions and Upstream businesses to grow a pipeline of emission-reduction opportunities in carbon capture and storage, hydrogen, and lower-emission fuels, as well as lithium to supply the global battery and electric vehicle markets.

Our customers, many governments, and others recognize our combination of experience, skills, and capabilities that have the potential to help reduce the emissions of others.

For example, on the U.S.

Gulf Coast, we see an opportunity to create a carbon capture and storage business that will allow industrial customers to reduce their emissions.

The recent acquisition of Denbury expands our capabilities in this area, providing ExxonMobil with the largest owned and operated network of CO2 pipelines in the United States, including over 900 miles of pipelines near the largest industrial complexes on the Gulf Coast.

Combining Denbury’s assets and our experience expands our ability to help customers in the region reduce their emissions at a lower cost and faster pace.

A cost-efficient transportation and storage system has the potential to accelerate carbon capture and storage deployment for both ExxonMobil and our third-party customers.

Policy support, along with technology advancements and the development of market-driven mechanisms, will continue to be important to the development and deployment of lower-emission solutions.

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

Recent Business Environment

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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.

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 through 2022.

Energy markets began to normalize in 2023, down from their 2022 highs.

During the first half of 2023, the price of crude oil declined towards the average of the pre-COVID 10-year range (2010-2019), impacted by higher inventory levels.

In the second half, crude oil prices increased modestly from strong demand and ongoing actions by OPEC+ oil producers to limit supply.

In the first nine months of the year, natural gas prices declined significantly with storage levels increasing above historical averages in the United States and Europe on higher supply and lower demand.

In the fourth quarter, natural gas prices improved as higher heating demand in the U.S.

and supply interruptions in Europe and Asia brought prices back above the 10-year range.

Throughout 2023, refining margins declined on easing supply concerns with stabilization of Russian supply.

Strong demand for gasoline and distillate, combined with low inventories, kept refining margins above the 10-year range until the fourth quarter when refining margins settled near the middle of the 10-year range due to lower seasonal demand.

Chemical margins remained well below the 10-year range throughout the year as continued demand growth was met with robust supply additions.

The general rate of inflation across major countries peaked in 2022, rising from already elevated levels in 2021, due to additional impacts on energy and other commodities from the Russia-Ukraine conflict.

Inflation moderated in 2023 as major central banks tightened monetary policy aggressively and global GDP growth slowed.

It currently remains higher than the central bank’s inflation target in the U.S.

and Eurozone;

however, major central banks have recently paused further rate tightening.

Meanwhile, there are significant variations across OECD and non-OECD in the pace of change in inflation.

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.

The changes more fully leverage global functional capabilities, improve line of sight to markets, and enhance resource allocation to the highest corporate priorities.

Organizational changes implemented over the past several years enabled the Corporation to capture $9.7 billion of structural cost savings (1) versus 2019, including $2.3 billion of savings during 2023, through increased operational efficiencies and reduced staffing costs.

The company sees additional opportunities in areas such as supply chain efficiency, improved maintenance and turnarounds, modernized data management, and simplified business processes.

These savings are key drivers for further improving the earnings power of the Corporation.

(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.

Transportation of Kazakhstan Production

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.

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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 the event geopolitical issues escalate in the region, including ongoing military conflict, 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.

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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.

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 and approximately $0.2 billion in 2023, mainly reflected in the line “Income tax expense (benefit)” on the Consolidated Statement of Income.

Remaining cash payments are anticipated in the first half of 2024.

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

BUSINESS RESULTS

ExxonMobil continues to sustain a diverse growth portfolio of exploration and development opportunities, which enables the Corporation to be selective, maximizing shareholder value and mitigating political and technical risks.

ExxonMobil’s fundamental strategies guide our global Upstream business, including capturing material and accretive opportunities to continually high-grade the resource portfolio, selectively developing attractive oil and natural gas resources, developing and applying high-impact technologies, and pursuing productivity and efficiency gains as well as a reduction in greenhouse gas emissions.

These strategies are underpinned by a relentless focus on operational excellence, development of our employees, and investment in the communities within which we operate.

As future development projects and drilling activities bring new production online, the Corporation expects a shift in the geographic mix and in the type of opportunities from which volumes are produced.

Based on current investment plans, the proportion of oil-equivalent production from the Americas is generally expected to increase over the next several years.

About half of the Corporation's global production comes from unconventional, deepwater, and LNG resources.

This proportion is generally expected to grow over the next few years.

ExxonMobil has a diverse growth portfolio of exploration and development opportunities, which allows the Corporation to be selective in our investments, maximizing shareholder value and mitigating political and technical risks.

ExxonMobil’s strategies guide our global Upstream business, including capturing material and accretive opportunities to continually high-grade the resource portfolio, selectively developing attractive oil and natural gas resources, developing and applying high-impact technologies, and pursuing productivity and efficiency gains as well as a reduction in greenhouse gas emissions.

These strategies are underpinned by a relentless focus on operational excellence, development of our employees, and investment in the communities in which we operate.

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

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.

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

Based on the current investment plans and merger with Pioneer, the proportion of oil-equivalent production from the Americas is generally expected to increase over the next several years.

Currently about half of the Corporation's global production comes from unconventional, deepwater, and LNG resources.

This proportion is generally expected to grow.

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

However, actual volumes will vary from year to year due to the timing of individual project start-ups;

operational outages;

reservoir performance;

regulatory changes;

the impact of fiscal and commercial terms;

weather events;

price effects on production sharing contracts;

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

international trade patterns and relations;

and other factors described in Item 1A.

However, actual volumes will vary from year to year due to the timing of individual project start-ups, operational outages, reservoir performance, regulatory changes, the impact of fiscal and commercial terms, asset sales, weather events, price effects on production sharing contracts, changes in the amount and timing of capital investments that may vary depending on the oil and gas price environment, international trade patterns and relations, and other factors described in "Item 1A.

Risk Factors".

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Key Recent Events

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.

Exploration success continued with four additional discoveries on the Stabroek Block in 2023.

Prosperity, the third floating production, storage and offloading (FPSO) vessel, started production at the Payara development on the Stabroek Block in November 2023 and reached nameplate capacity in January 2024, well ahead of schedule.

Liza Destiny and Liza Unity FPSO vessels continued to produce above nameplate capacity.

The combined gross production from the three operating vessels exceeded 390 thousand barrels of oil per day (kbd) in 2023 and nearly 440 kbd in the fourth quarter of 2023.

Yellowtail and Uaru, the fourth and fifth developments on the Block, are progressing on schedule and will each initially produce approximately 250 kbd.

We anticipate six FPSO vessels will be in operation on the Stabroek Block by year-end 2027.

We are working with the government of Guyana to secure regulatory approvals for a sixth project at Whiptail.

Production volumes averaged about 610 thousand oil-equivalent barrels per day (koebd) in 2023, approximately 60 koebd higher than the previous year.

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

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.

ExxonMobil operations continue to deliver industry-leading capital efficiency and cost performance by leveraging scale, integration, and technology.

Examples include best-in-class laterals, up to four miles, which will result in fewer wells and a smaller surface footprint.

ExxonMobil remains on track to achieve industry-leading plans of net-zero Scope 1 and 2 greenhouse gas emissions from our operated unconventional operations in the Permian Basin by 2030.

In 2023, operation teams sustained zero routine flaring (1) , completed the program to eliminate over 6,000 pneumatic venting devices, increased electrification of operations, signed long-term agreements to use lower-carbon wind power, and expanded continuous emissions monitoring programs.

In October 2023, ExxonMobil announced a definitive agreement to acquire Pioneer in an all-stock transaction valued at $59.5 billion (2) , more than doubling our Permian footprint.

The transaction represents an opportunity to deliver leading capital efficiency and cost performance as well as increase production by combining Pioneer's large scale, contiguous, high-quality undeveloped Midland acreage with ExxonMobil's Permian resource development approach.

In addition to increasing production, we plan to pull forward Pioneer's Net Zero ambition by 15 years, from 2050 to 2035.

ExxonMobil continued work on LNG growth projects in 2023.

The Papua New Guinea LNG project progressed front-end engineering and design work in support of a final investment decision anticipated in 2024.

Optimization of the Mozambique onshore LNG plans for Rovuma LNG to develop the gas resource continued, working to ensure the right conditions are met for full funding, including a sustainable and secure operating environment and a design that will achieve long-term project competitiveness.

Construction continues on the Golden Pass LNG project with Train 1 mechanical completion expected at the end of 2024 with first LNG production in the first half of 2025.

(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.

(2) Based on the October 5, 2023, closing price for ExxonMobil shares and the fixed exchange rate of 2.3234 per Pioneer share.

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

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(millions of dollars)

Price – Lower realizations decreased earnings by $14,290 million reflecting lower gas prices and crude price moderation with growing liquids supply to address record demand, and unfavorable mark-to-market impacts of $2,380 million.

Volume/Mix – Improved portfolio mix increased earnings by $970 million.

The earnings benefit from the advantaged volume growth primarily in Guyana and the Permian more than offset the impacts from divestments, the Russia expropriation, and higher government-mandated curtailments.

Other – All other items decreased earnings by $100 million on increased activity and inflation, partly offset by positive foreign exchange effects and structural efficiencies.

Identified Items (1) – 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;

2023 $(2,301) million loss primarily due to the impairment of the idled Santa Ynez Unit assets and associated facilities in California.

(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

2022 Upstream Earnings Factor Analysis

(millions of dollars)

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.

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(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 Upstream Earnings Factor Analysis

(millions of dollars)

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.

Upstream Operational Results

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

(2) In the Volumes Reconciliation for 2022, -9 KOEBD has been recategorized from Growth / Other to Government Mandates following additional analysis in 2023 related to Groningen production limits.

2023 versus 2022

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.

2023 production of 3.7 million oil-equivalent barrels per day is in line with 2022.

Permian and Guyana production grew by more than 120 thousand oil-equivalent barrels per day, more than offsetting impacts from divestments.

Excluding the impacts from entitlements, divestments, and higher government-mandated curtailments, net production grew by 111 thousand oil-equivalent barrels per day.

2022 versus 2021

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.

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

Excluding the impacts from entitlements, Russia expropriation, divestments, and eased government-mandated curtailments, net production grew by 103 thousand oil-equivalent barrels per day driven by Permian and Guyana.

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

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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 as a result of temporary non-operational production limits or sanctions imposed by governments, generally upon a country, sector, type or method of production.

Government Mandates are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments.

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.

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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.

This segment includes the fuels and aromatics value chains and catalysts and licensing.

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

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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.

In 2023, refining margins remained above the pre-COVID 10-year historical range (2010–2019) but started to normalize from their 2022 highs.

Continued strong margins were supported by gasoline and distillate demand growth and relatively low inventory levels.

Refining margins will remain volatile with changes in global factors including geopolitical developments;

demand growth;

recession fears;

inventory levels;

and refining capacity utilizations, additions and rationalizations.

Key Recent Events

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.

Capacity additions:

The company started-up its Beaumont Refinery expansion in February 2023, two months early, and reached nameplate crude distillation capacity of 250 thousand barrels per day in March.

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.

In January 2023, ExxonMobil and its affiliates fully funded a project at Strathcona refinery to use low-carbon hydrogen, locally-sourced and grown feedstocks, and our proprietary catalyst to produce 20 thousand barrels of renewable diesel per day that will help reduce greenhouse gas emissions.

Singapore Resid Upgrade project:

Progressed project with expected start-up in 2025, which will leverage two proprietary technologies to upgrade fuel oil to Group II lubes and diesel, further strengthening ExxonMobil’s competitiveness.

Billings divestment:

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.

In June 2023, ExxonMobil divested the Billings Refinery and select midstream assets in Montana and Washington.

Esso Thailand divestment:

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.

In August 2023, ExxonMobil sold its interest in Esso Thailand, which included the Sriracha Refinery, select distribution terminals, and a network of Esso-branded retail stations.

Italy Fuels divestment:

In October 2023, ExxonMobil sold its interest in the Trecate Refinery joint venture, select midstream assets, and the fuels marketing business.

Miro Refinery sale:

In October 2023, ExxonMobil reached an agreement to sell its interest in the Miro refinery located in Karlsruhe, Germany, and we expect the transaction to close in 2024.

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

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United States 192 (58) —

(626) — (636)

Total 144 (684) —

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(millions of dollars)

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.

Margins – Decreased earnings by $3,190 million as industry refining margins declined from 2022 highs, partially offset by stronger trading and marketing margins.

Volume/Mix – Increased earnings by $80 million reflecting improved reliability and higher throughput mainly driven by the Beaumont expansion, partially offset by higher planned maintenance and divestments.

Other – Decreased earnings by $540 million due to higher planned maintenance expenses and Beaumont project activities.

Identified Items (1) – 2022 $(684) million loss was primarily as a result of impairments and unfavorable tax items.

2023 $144 million gain was driven by favorable tax effects partially offset by additional European taxes on the energy sector.

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

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(millions of dollars)

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.

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.

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(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

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

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.

Chemical Products help meet society’s essential needs by providing a wide range of innovative products efficiently and responsibly.

The company is uniquely positioned with a combination of industry-leading scale, integration, and proprietary technology, which are fundamental to producing affordable products that are more sustainable, use less material, save energy, and reduce waste.

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

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.

Over the long term, worldwide demand for chemicals is expected to grow faster than the economy, 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.

In 2023, chemical industry margins remained bottom-of-cycle, below the pre-COVID 10-year historical range (2010-2019), as capacity exceeded demand growth.

The company optimized production across our global footprint to profitably meet customer demand.

Our earnings benefited from the North American feed and energy advantage, strong reliability, and higher performance products sales.

Key Recent Events

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 :

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.

Performance Polymers expansion:

ExxonMobil successfully started up a new performance polymers line in Baytown, Texas.

This 400 thousand metric tons per year unit will make high-performance propylene and ethylene plastomers branded Vistamaxx™ and Exact™.

These materials can be used to make better automotive parts, construction materials, personal care products, and solar panels.

Linear Alpha Olefins production:

ExxonMobil successfully started up a new 350 thousand metric tons per year linear alpha olefins unit in Baytown, Texas.

The unit will produce a full range of alpha olefin products that are essential to our Specialty and Chemical Products businesses.

This marks ExxonMobil's entry into the linear alpha olefins market via Elevexx™ branded products.

These materials can be used in plastic packaging, high-performing engine and industrial oils, and other applications.

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.

ExxonMobil is investing in a petrochemical complex in the Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province, which is a significant step in growing our global manufacturing footprint and will be the first 100 percent foreign-owned petrochemical complex built in China.

The facility will be focused on producing our unique high-performance polyethylene and polypropylene products.

When completed, the complex will have three polyethylene and two polypropylene production lines for a combined capacity of over 2.5 million metric tons per year.

This capacity will more efficiently serve China’s domestic demand, which is currently being met with imports.

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

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(millions of dollars)

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.

Margins – Lower margins decreased earnings by $870 million due to bottom-of-cycle price conditions as industry supply additions continued to outpace demand growth.

Volume/Mix – Unfavorable sales mix decreased earnings by $160 million, partially offset by new volumes from strategic projects.

Other – All other items decreased earnings by $490 million, primarily as a result of higher expenses from scheduled maintenance and production capacity additions.

Identified Items (1) – 2023 $(388) million loss was primarily driven by 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

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(millions of dollars)

Margins – Stronger margins increased earnings by $4,370 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 $(105) million loss was driven by impairments.

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

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.

Chemical Products Operational Results

(thousands of metric tons) 2023 2022 2021

Chemical prime product sales (2)

Chemical product sales (1)

United States 6,779 7,270 7,017

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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.

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

In 2023, Specialty Products continued to deliver strong earnings from our portfolio of high-value products and brand market position.

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

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(millions of dollars)

Margins – Stronger margins increased earnings by $440 million driven by high-value products and lower feed costs.

Volume/Mix – Lower volumes decreased earnings by $120 million on weaker global demand.

Other – All other items increased earnings by $30 million as a result of positive year-end inventory effects and favorable tax impacts, partially offset by unfavorable foreign exchange effects.

Identified Items (1) – 2022 $(40) million loss from impairments;

2023 $(93) million loss mainly 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

2022 Specialty Products Earnings Factor Analysis

(millions of dollars)

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

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(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

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Corporate and Financing

Corporate and Financing is comprised of corporate activities that support the Corporation’s operating segments and ExxonMobil’s Low Carbon Solutions business.

Corporate and Financing is comprised of corporate activities that support ExxonMobil's operating segments and Low Carbon Solutions business.

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

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.

On November 2, 2023, the Corporation acquired Denbury, a developer of carbon capture, utilization and storage solutions and enhanced oil recovery producing assets.

This acquisition expands the Corporation’s Low Carbon Solutions capabilities.

See Note 21 of the Condensed Consolidated Financial Statements for additional information.

Corporate and Financing Financial Results

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Identified Items (1)

302 (64) (361)

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

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

Corporate and Financing expenses were $1,791 million in 2023 compared to $1,663 million in 2022, with the increase mainly due to the absence of prior year favorable tax-related items, partly offset by lower financing costs.

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.

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

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the purchase of ExxonMobil stock of $17.7 billion;

a debt reduction of $7.2 billion;

and additional investments and advances of $3.1 billion.

additional investments and advances of $3.0 billion;

and a change in working capital of $4.3 billion.

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;

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.

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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 strategic fit, potential for future growth and attractive current valuations.

Key criteria for evaluating acquisitions include strategic fit, cost synergies, potential for future growth, low cost of supply, and attractive valuations.

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

ExxonMobil closely monitors the potential impact of Interbank Offered Rate (IBOR) reform, including LIBOR, under a number of scenarios and has taken steps to mitigate the potential impact.

Accordingly, ExxonMobil does not believe this event represents a material risk to the Corporation’s consolidated results of operations or financial condition.

Cash Flow from Operating Activities

Cash provided by operating activities totaled $55.4 billion in 2023, $21.4 billion lower than 2022.

The major source of funds was net income including noncontrolling interests of $37.4 billion, a decrease of $20.2 billion.

The noncash provision for depreciation and depletion was $20.6 billion, down $3.4 billion from the prior year.

The adjustment for the net gain on asset sales was $0.5 billion, a decrease of $0.5 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was an increase of $0.5 billion, compared to a reduction of $2.4 billion in 2022.

Changes in operational working capital, excluding cash and debt, decreased cash in 2023 by $4.3 billion.

Cash provided by operating activities totaled $76.8 billion in 2022, $28.7 billion higher than 2021.

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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 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 Flow from Investing Activities

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Proceeds from asset sales and returns of investments of $4.1 billion compared to $5.2 billion in 2022.

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.

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

Additional investments and advances were $0.1 billion lower in 2023, while proceeds from other investing activities including collection of advances increased by $0.1 billion.

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.

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

Cash Flow from Financing Activities

Cash used in financing activities was $34.3 billion in 2023, $4.8 billion lower than 2022.

Dividend payments on common shares increased to $3.68 per share from $3.55 per share and totaled $14.9 billion.

Exxon Mobil Corporation continued its share repurchase program for up to $50 billion in shares through 2024, including the purchase of 162 million shares at a book value of $17.5 billion in 2023.

In its 2023 Corporate Plan Update released December 6, 2023, the Corporation stated that after the Pioneer transaction closes, the go-forward share repurchase program pace is expected to increase to $20 billion annually through 2025, assuming reasonable market conditions.

The stock repurchase program does not obligate the company to acquire any particular amount of common stock, and it may be discontinued or resumed at any time.

The timing and amount of shares actually repurchased in the future will depend on market, business, and other factors.

Cash used in financing activities was $39.1 billion in 2022, $3.7 billion higher than 2021.

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During 2022, the Corporation utilized cash to reduce debt by $7.2 billion.

ExxonMobil share of equity increased $26.5 billion to $195.0 billion.

The addition to equity for earnings was $55.7 billion.

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 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 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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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.

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.

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

The Corporation reduced debt by $6.5 billion in 2022.

The total debt level remained relatively flat in 2023, ending the year at $41.6 billion.

Litigation and Other Contingencies

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Upstream spending of $19.8 billion in 2023 was up 16 percent from 2022, reflecting higher spend in the U.S.

Permian Basin and advantaged projects in Guyana.

Permian Basin and on 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 2023, and has been over 60 percent for the last ten years.

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.

Capital investments in the three Product Solutions businesses totaled $5.9 billion in 2023, an increase of $0.3 billion from 2022, reflecting higher global project spending.

Key investments in 2023 included the China petrochemical complex and Singapore resid upgrade project.

Other spend of $0.6 billion primarily reflects investments in the Low Carbon Solutions business which focused on carbon capture and storage, lithium, and hydrogen.

(millions of dollars) 2023 2022 2021

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Total 47,620 51,631 40,591

Total taxes on the Corporation’s income statement were $47.6 billion in 2023, a decrease of $4.0 billion from 2022.

Income tax expense, both current and deferred, was $15.4 billion compared to $20.2 billion in 2022.

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.

This is flat compared to 2022, with higher effective rates from various jurisdictions offset by a lower impact from additional European taxes on the energy sector.

Total other taxes and duties of $32.2 billion in 2023 increased $0.7 billion.

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

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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.

The effective tax rate, which is calculated based on consolidated company income taxes and ExxonMobil’s share of equity company income taxes, was 31 percent compared to 17 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 $33.0 billion in 2021 increased $4.5 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 air, water, and waste emissions, and expenditures for asset retirement obligations.

These include:

significant investments in refining infrastructure and technology to manufacture clean fuels;

projects to monitor and reduce air, water, and waste emissions, both from the company’s operations and from other companies;

and expenditures for asset retirement obligations.

Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2023 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $7.1 billion, of which $4.3 billion were included in expenses with the remainder in capital expenditures.

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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 lower-emission fuels.

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

The preparation of financial statements in conformity with U.S.

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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.

Outlook for Energy and Cash Flow Assessment.

Global Outlook 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 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.

The foundation for the assumptions supporting the Corporate Plan is the Global Outlook (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.

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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.

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 Scope 1 and 2 greenhouse gas emissions from unconventional operated assets in the Permian Basin.

Volumes are based on projected field and facility production profiles, throughput, or sales.

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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.

While third-party scenarios 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.

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Recent Impairments.

In 2023, the Corporation recognized after-tax charges of $3.4 billion, primarily related to the idled Upstream Santa Ynez Unit assets and associated facilities in California, which reflected the continuing challenges in the state regulatory environment that impeded progress towards restoring operations.

Other impairments in the year included a $0.6 billion charge related to an Upstream equity investment.

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 2022 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.

(Refer to Note 2 for further information on Russia.) During 2022, 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.

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 United States, Canada, and Argentina.

The impairment of these assets resulted in after-tax charges of $18.4 billion in Upstream.

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.

However, due to the inherent difficulty in predicting future commodity prices or margins, and the relationship between industry prices and costs, it is not practicable to reasonably estimate the existence or range of any potential future impairment charges related to the Corporation’s long-lived assets.

For further information regarding impairments in goodwill, equity method investments, property, plant, and equipment, and suspended wells, refer to Notes 3, 7, 9, and 10, respectively.

For further information regarding impairments in equity method investments, property, plant, and equipment, and suspended wells, refer to Notes 7, 9, and 10, respectively.

Asset Retirement Obligations

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Pension Benefits

The Corporation and its affiliates sponsor 75 defined benefit (pension) plans in 40 countries.

The Corporation and its affiliates sponsor about 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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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.

As described in Note 16, for purposes of our contingency disclosures, “significant” includes material matters, as well as other matters, which management believes should be disclosed.

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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Based on this evaluation, management concluded that Exxon Mobil Corporation’s internal control over financial reporting was effective as of December 31, 2023.

The Corporation excluded Denbury Inc.

from our assessment of internal control over financial reporting as of December 31, 2023 because it was acquired by the Corporation in a business combination during 2023.

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We believe that our audits provide a reasonable basis for our opinions.

As described in Management’s Report on Internal Control Over Financial Reporting, management has excluded Denbury Inc.

from its assessment of internal control over financial reporting as of December 31, 2023 because it was acquired by the Company in a business combination during 2023.

We have also excluded Denbury Inc.

from our audit of internal control over financial reporting.

is a wholly-owned subsidiary whose total assets and total revenues excluded from management’s assessment and our audit of internal control over financial reporting represent two percent and less than one percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2023.

Definition and Limitations of Internal Control over Financial Reporting

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The communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or on the accounts or disclosures to which it relates.

The Impact of Proved Oil and Natural Gas Reserves on Upstream Property, Plant and Equipment, Net

The Impact of Proved Developed Oil and Natural Gas Reserves on Upstream Property, Plant and Equipment, Net

As described in Notes 1, 9 and 18 to the consolidated financial statements, the Corporation's consolidated upstream property, plant and equipment (PP&E), net balance was $148.2 billion as of December 31, 2023, and the related depreciation and depletion expense for the year ended December 31, 2023 was $16.6 billion.

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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, as applicable.

The principal considerations for our determination that performing procedures relating to the impact of proved developed 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 developed oil and natural gas reserve volumes, and (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 developed oil and natural gas reserve volumes.

Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion on the consolidated financial statements.

These procedures included testing the effectiveness of controls relating to management's estimates of proved oil and natural gas reserve volumes.

The work of management's specialists was used in performing the procedures to evaluate the reasonableness of the proved oil and natural gas reserve volumes.

These procedures included testing the effectiveness of controls relating to management's estimates of proved developed oil and natural gas reserve volumes.

The work of management's specialists was used in performing the procedures to evaluate the reasonableness of the proved developed oil and natural gas reserve volumes.

As a basis for using this work, the specialists' qualifications were understood and the Corporation’s relationship with the specialists was assessed.

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.

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.

The procedures performed, also included i) evaluating the methods and assumptions used by the specialists, ii) testing the completeness and accuracy of the data used by the specialists related to historical production volumes, iii) evaluating the specialists' findings related to estimated future production volumes by comparing the estimate to relevant historical and current period information, as applicable.

/s/ PricewaterhouseCoopers LLP

Dallas, Texas

Houston, Texas

February 28, 2024

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Additions to short-term debt — 198 12,687

198 12,687 35,396

Reductions in short-term debt ( 879 ) ( 8,075 ) ( 29,396 )

( 8,075 ) ( 29,396 ) ( 28,742 )

Additions/(reductions) in commercial paper, and debt with three months or less maturity 25 ( 2,983 ) ( 9,691 )

Additions/(reductions) in debt with three months or less maturity ( 284 ) 25 ( 2,983 )

Contingent consideration payments ( 68 ) ( 58 ) ( 30 )

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Cash and cash equivalents at end of year 31,568 29,665 6,802

(1) Includes commercial paper with a maturity greater than three months.

Includes $ 568 million issued to facilitate the sale of an entity where the buyer assumed the debt upon closing;

no longer on the Consolidated Balance Sheet at the end of 2023.

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

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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

Acquisitions, at cost — — — ( 405 ) ( 405 ) ( 68 ) ( 473 )

Share repurchases, at cost — — — ( 155 ) ( 155 ) ( 551 ) ( 706 )

Dispositions — — — 467 467 — 467

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Other comprehensive income — — 494 — 494 ( 178 ) 316

Acquisitions, at cost — — — ( 155 ) ( 155 ) ( 551 ) ( 706 )

Share repurchases, at cost — — — ( 15,295 ) ( 15,295 ) ( 1,479 ) ( 16,774 )

Dispositions — — — 466 466 — 466

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Other comprehensive income — — 1,281 — 1,281 261 1,542

Acquisitions, at cost — — — ( 15,295 ) ( 15,295 ) ( 1,479 ) ( 16,774 )

Share repurchases, at cost — — — ( 17,993 ) ( 17,993 ) ( 851 ) ( 18,844 )

Issued for acquisitions 1,978 — — 2,866 4,844 — 4,844

Dispositions — — — 503 503 — 503

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Balance as of December 31, 2020 8,019 ( 3,786 ) 4,233

Acquisitions — ( 8 ) ( 8 )

Share repurchases, at cost — ( 2 ) ( 2 )

Dispositions — 8 8

Balance as of December 31, 2021 8,019 ( 3,780 ) 4,239

Acquisitions — ( 2 ) ( 2 )

Share repurchases, at cost — ( 165 ) ( 165 )

Dispositions — 8 8

Balance as of December 31, 2022 8,019 ( 3,937 ) 4,082

Acquisitions — ( 165 ) ( 165 )

Share repurchases, at cost — ( 165 ) ( 165 )

Issued for acquisitions — 46 46

Dispositions — 8 8

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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 lower-emission fuels.

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

The preparation of financial statements in conformity with U.S.

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Actual results could differ from these estimates.

Prior years’ data have been reclassified in certain cases to conform to the 2022 presentation basis.

Summary of Accounting Policies

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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.

Outlook for Energy and Cash Flow Assessment.

Global Outlook 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.

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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 Scope 1 and 2 greenhouse gas emissions from unconventional operated assets in the Permian Basin.

Volumes are based on projected field and facility production profiles, throughput, or sales.

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However, the U.S.

dollar is used in countries with a history of high inflation (primarily in Latin America) and Singapore, which predominantly sells into the U.S.

dollar is used in countries with a history of high inflation (primarily in Latin America) and in Singapore, which predominantly sells into the U.S.

dollar export market.

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For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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The Corporation’s fourth-quarter 2022 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's exit from the project resulted 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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In 2023, 2022, and 2021, net income included gains of $ 366 million, $ 367 million, and $ 54 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 2022 and 2021 consist of the following:

The aggregate replacement cost of inventories was estimated to exceed their LIFO carrying values by approximately $ 14 billion and $ 15 billion at December 31, 2023 and 2022, respectively.

Crude oil, products, and merchandise as of year-end 2023 and 2022 consist of the following:

(millions of dollars) Dec 31, 2023 Dec 31, 2022

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hydrocarbon fluids, plasticizers) and synthetics.

Goodwill Impairments.

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.

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.

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 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.

During 2023 and 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.

In 2023 such reimbursements were negligible and in 2022 these reimbursements totaled approximately $ 1.5 billion before tax, which 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.

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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.

The Corporation records these allowances at a nominal amount, generally in "Inventories - Crude oil, products and merchandise" on the Consolidated Balance Sheet.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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Highly liquid investments with maturities of three months or less when acquired are classified as cash equivalents.

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.

In 2023, the Corporation completed the acquisition of Denbury Inc.

(Denbury) through the issuance of 46 million shares of ExxonMobil Corporation common stock having a fair value of $ 4.8 billion on the acquisition date.

Additional information is provided in Note 21.

In 2023, the Corporation completed the sale of Esso Thailand.

The sale included cash proceeds as well as cash from debt that was issued to facilitate the sale, which was assumed by the buyer upon closing.

For 2023, The “Net (gain)/loss on asset sales” on the Consolidated Statement of Cash Flows includes before-tax amounts mainly from the sale of upstream assets in the United States.

For 2022, the number 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 number 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.

These net (gain)/loss amounts are reported in "Other income" on the Consolidated Statement of Income.

(millions of dollars) 2023 2022 2021

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These lines are available for general corporate purposes.

The weighted-average interest rate on short-term borrowings outstanding was 1.5 percent and 0.2 percent at December 31, 2022 and 2021, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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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 in Africa;

natural gas production and distribution in Europe;

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.

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Percentage Ownership Interest

Aera Energy LLC 48

Barzan Gas Company Limited 7

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Permian Highway Pipeline LLC 17

Qatar Liquefied Gas Company Limited (2) 24

Qatar Liquefied Gas Company Limited (7) 25

Ras Laffan Liquefied Natural Gas Company Limited 25

Ras Laffan Liquefied Natural Gas Company Limited (II) 31

Ras Laffan Liquefied Natural Gas Company Limited (3) 30

QatarEnergy LNG N (2) 24

QatarEnergy LNG NFE (3) 25

QatarEnergy LNG S (1) 25

QatarEnergy LNG S (2) 31

QatarEnergy LNG S (3) 30

South Hook LNG Terminal Company Limited 24

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In 2023, 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.

Before-tax charges of $ 3.3 billion were recognized, in large part due to impairing the idled Upstream Santa Ynez Unit assets and associated facilities in California, reflecting the continuing challenges in the state regulatory environment that impeded progress in restoring operations.

Other before-tax impairment charges recognized during 2023 included $ 0.3 billion in Upstream, $ 0.3 billion in Chemical Products, and $ 0.1 billion in Specialty Products.

In 2022, 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 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 facilities in the Product Solutions business 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 a decision is made to permanently shut down and dismantle the facilities.

These obligations may include the costs of asset disposal and additional soil remediation.

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Block 32 Central NE Hub

66 2007 - 2021 Evaluating development plan for tieback to existing infrastructure.

66 2007 - 2021 Evaluating development plan to tie into existing infrastructure.

72 2014 Evaluating development plan to tie into planned infrastructure.

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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

120 2017 Evaluating/progressing development plan to tie into planned LNG facilities.

Rovuma LNG Phase 1

150 2017 Progressing development plan to tie into planned LNG facilities.

Rovuma LNG Future Non-Straddling Train

120 2017 Evaluating/progressing development plan to tie into planned LNG facilities.

Rovuma LNG Unitized Trains

35 2017 Evaluating/progressing development plan to tie into planned LNG facilities.

34 2004 - 2009 Evaluating/progressing development plan for tieback to existing/planned infrastructure.

34 2004 - 2009 Progressing development plan to tie into existing/planned infrastructure.

Papua New Guinea

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2025 1,464 237

2026 1,046 234

2029 and beyond 1,781 2,256

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Estimated cash payments for operating and finance leases not yet commenced are $ 267 million and $ 331 million for 2024 and 2025 respectively.

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.

Not yet commenced finance leases primarily relate to a CO2 transportation and service agreement, and a long-term hydrogen purchase agreement.

The underlying assets are primarily designed by, and are being constructed by, the lessors.

Other Information

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3.68 3.55 3.49

(1) Includes restricted shares not vested.

(2) The earnings (loss) per common share and earnings (loss) per common share - assuming dilution are the same in each period shown.

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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”.

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” and in the Consolidated Statement of Cash Flows in “Cash Flows from Operating Activities”.

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

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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 December 31, 2022, the Corporation has designated its $ 4.8 billion of Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business.

As of December 31, 2023, the Corporation has designated its $ 5.0 billion of 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.

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3.452 % notes due 2051

4.327 % notes due 2050

3.452 % notes due 2051

Exxon Mobil Corporation - Euro-denominated

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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.

Some management, professional, and technical participants will receive 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.

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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 marsh erosion 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.

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Accumulated benefit obligation at December 31 11,033 10,367 19,769 18,047 — —

(1) Actuarial loss/(gain) primarily reflects higher discount rates.

(1) Actuarial loss/(gain) primarily reflects lower discount rates.

(2) Benefit payments for funded and unfunded plans.

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Asset-backed — — — 1 1 — 22 (2) — 221 243

Other — — — — — — — — 4 4

Real Estate — — — — — — — — 70 70

Cash — — — 178 178 189 17 (4) — 45 251

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Disclosures about Segments and Related Information

The Upstream, Energy Products, Chemical Products, and Specialty Products functions best define the operating segments of the business that are reported separately.

Our reportable segments are Upstream, Energy Products, Chemical Products, and Specialty Products.

The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment.

The Upstream segment is organized and operates to explore for and produce crude oil and natural gas.

Energy Products, Chemical Products, and Specialty Products segments are organized and operate to manufacture and sell petroleum products and petrochemicals.

The Energy Products, Chemical Products, and Specialty Products segments are organized and operate to manufacture and sell petroleum products and petrochemicals.

• Energy Products:

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

These functions have been defined as the operating segments of the Corporation because they are the segments (1) that engage in business activities from which revenues are recognized and expenses are incurred;

(2) whose operating results are regularly reviewed by the Corporation’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its performance;

and (3) for which discrete financial information is available.

Earnings after income tax include transfers at estimated market prices.

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Earnings (loss) after income tax 3,663 12,112 668 ( 1,014 ) 3,697 3,292 1,452 1,807 ( 2,636 ) 23,040

Effect of asset impairments - noncash

( 17,138 ) ( 2,287 ) ( 15 ) ( 412 ) ( 100 ) ( 21 ) — ( 245 ) ( 35 ) ( 20,253 )

Earnings of equity companies included above 288 5,535 122 100 ( 139 ) 1,141 — ( 36 ) ( 354 ) 6,657

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

Contractual terms and type of customer are generally similar between contracts within the scope of ASC 606 and those outside it.

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

Sales and other operating revenue

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revenue sources include:

United Kingdom 33,988 14,759 11,055

Canada 28,994 32,970 22,166

United Kingdom 23,372 33,988 14,759

Singapore 15,331 19,029 15,031

France 14,803 17,727 13,236

Italy 11,496 10,056 7,091

Australia 9,883 11,316 7,646

Belgium 9,840 11,279 9,153

Germany 9,297 10,190 7,565

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

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Australia 11,212 11,372 12,988

Guyana 9,689 6,766 4,892

Kazakhstan 7,728 8,172 8,463

Papua New Guinea 7,433 7,338 7,534

Guyana 6,766 4,892 3,547

United Arab Emirates 5,480 5,448 5,392

Nigeria 4,090 5,235 6,345

Brazil 4,203 3,649 4,337

Angola 2,793 3,207 4,405

China 3,669 2,350 984

Nigeria 3,319 4,090 5,235

Russia — — 4,055

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Income and Other Taxes

Income tax expense (benefit)

(millions of dollars)

2023 2022 2021

Income tax expense (benefit)

Federal and non-U.S.

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Total 8,852 38,768 47,620 12,086 39,545 51,631 7,092 33,499 40,591

The above provisions for deferred income taxes include net expenses of $ 30 million in 2022, and net benefits of $ 53 million in 2021, and $ 25 million in 2020 related to changes in tax laws and rates, and a benefit of $ 6.3 billion in 2020 related to asset impairments.

The above provisions for deferred income taxes include net expenses of $ 24 million in 2023, and $ 30 million in 2022, and net benefits of $ 53 million in 2021 related to changes in tax laws and rates.

Additional European Taxes on the Energy Sector.

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

The enactment of these regulations 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 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 and approximately $ 0.2 billion in 2023, mainly reflected in the line “Income tax expense (benefit)” on the Consolidated Statement of Income.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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( 259 ) ( 769 ) ( 705 )

( 769 ) ( 705 ) ( 206 )

Total income tax expense (credit) 15,429 20,176 7,636

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Effective income tax rate 33 % 33 % 31 %

(1) 2020 includes the impact of an increase in valuation allowance of $ 647 million in non-U.S.

and $ 115 million in U.S.

state jurisdictions.

(2) 2022 includes the impact of the additional European taxes on the energy sector of $ 1,825 million.

(1) Includes the impact of the additional European taxes on the energy sector of $ 1,825 million in 2022 and $ 115 million in 2023.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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Net deferred tax liabilities 20,815 19,049

In 2022, asset valuation allowances of $ 2,650 million increased by $ 16 million and included net provisions o f $ 202 million and foreign currency effects of $ 186 million .

In 2023, asset valuation allowances of $ 2,641 million decreased by $ 9 million and included net provisions of $ 104 million and foreign currency and other effects of $ 113 million.

Balance sheet classification

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However, unrecognized deferred taxes on remittance of these funds are not expected to be material.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Unrecognized Tax Benefits.

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Balance at December 31 3,935 3,398 9,130

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The gross unrecognized tax benefit balances are predominantly related to tax positions that would reduce the Corporation’s effective tax rate if the positions are favorably resolved.

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It is difficult to predict the timing of resolution for these tax positions since the timing is not entirely within the control of the Corporation.

In the United States, the Corporation filed a refund suit for tax years 2006-2009 with respect to positions at issue for those years.

These positions were reflected in the 2021 unrecognized tax benefit table.

The IRS asserted penalties associated with several of those positions.

The Corporation did not recognize those penalties as an expense because it did not expect the penalties to be sustained in litigation.

On August 3, 2022, the Corporation received an adverse ruling on the tax positions and a favorable ruling on the related penalties from the U.S.

Court of Appeals for the Fifth Circuit.

Neither the Corporation nor the government appealed the ruling.

As a result of this litigation, the tax positions that were at issue are not reflected in the ending balance of the 2022 unrecognized tax benefits table.

Unlike 2022, during which litigation resolved certain unrecognized tax benefit positions, there was no major resolution of unrecognized tax benefit positions in 2023.

The Corporation has various U.S.

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Country of Operation Open Tax Years

Abu Dhabi 2021 — 2022

Angola 2018 — 2022

Australia 2010 — 2023

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Canada 2001 — 2023

Equatorial Guinea 2009 — 2022

Indonesia 2008 — 2022

Iraq 2017 — 2022

Malaysia 2018 — 2022

Kazakhstan 2015 — 2023

Nigeria 2016 — 2023

Papua New Guinea 2008 — 2023

United Kingdom 2015 — 2022

United Arab Emirates 2022 — 2023

United States 2010 — 2023

The Corporation classifies interest on income tax-related balances as interest expense or interest income and classifies tax-related penalties as operating expense.

For 2022 and 2021 the Corporation's net interest expense on income tax reserves was $ 16 million and $ 0 million , respectively.

For 2020, the Corporation's net interest expense was a credit of $ 6 million.

For 2023, 2022, and 2021 the Corporation's net interest expense on income tax reserves was $ 60 million, $ 16 million, and $ 0 million , respectively.

The related interest payable balances were $ 134 million and $ 63 million at December 31, 2023 and 2022, respectively.

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Divestment Activities

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

In 2023, the Corporation realized proceeds of approximately $ 4.1 billion and recognized net after-tax earnings of approximately $ 0.6 billion from its divestment activities.

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

In 2022, the Corporation realized proceeds of approximately $ 5.2 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 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 first 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.

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

On February 14, 2024, the Corporation closed the sale of the Santa Ynez Unit and associated facilities in California.

The Corporation expects no material impacts on its first quarter 2024 financial statements.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Mergers and Acquisitions

On November 2, 2023, the Corporation acquired Denbury, a developer of carbon capture, utilization, and storage solutions and enhanced oil recovery producing assets.

The acquisition also included Gulf Coast and Rocky Mountain oil and natural gas operations which consisted of proved reserves totaling approximately 0.2 billion oil-equivalent barrels and approximately 45 thousand oil-equivalent barrels per day of production.

Total consideration was $ 5.1 billion, which included the issuance of 46 million shares of ExxonMobil common stock from treasury having a fair value of $ 4.8 billion on the acquisition date, and cash payments of $ 0.3 billion related to repayment of Denbury's credit facility and settlement of fractional shares.

The transaction was accounted for as a business combination in accordance with ASC 805, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.

The following table summarizes the fair values of the assets acquired and liabilities assumed:

(billions of dollars)

Current assets 0.4

Property, plant & equipment 6.4

Other assets 0.2

Total assets 7.0

Current liabilities 0.3

Long-term liabilities 1.6

Total liabilities 1.9

Net assets acquired 5.1

Inputs for the assumptions used in the income approach to value property, plant and equipment included estimates for pipeline tariff rates, pipeline throughput volumes, commodity prices, future oil and gas production profiles, operating expenses, and a risk-adjusted discount rate.

The Denbury acquisition resulted in an immaterial amount of goodwill.

Revenues and earnings arising from Denbury's operations are immaterial in 2023 for pro forma disclosure purposes.

Pioneer Natural Resources Company

On October 11, 2023, the Corporation announced a merger agreement with Pioneer Natural Resources Company (Pioneer), an independent oil and gas exploration and production company, in exchange for ExxonMobil common stock.

Based on the October 5 closing price for ExxonMobil shares, the fixed exchange rate of 2.3234 per Pioneer share, and Pioneer's outstanding net debt, the implied enterprise value of the transaction was approximately $ 65 billion.

We expect the number of shares issuable in connection with the transaction to be approximately 546 million.

The transaction is expected to close in the second quarter of 2024, subject to regulatory approvals.

Pioneer holds over 850 thousand net acres in the Midland Basin of West Texas, which consist of proved reserves totaling over 2.3 billion oil-equivalent barrels (as of December 31, 2022) and over 700 thousand oil-equivalent barrels per day of production for the three months ended September 30, 2023.

SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION AND PRODUCTION ACTIVITIES (unaudited)

The results of operations for producing activities shown below do not include earnings from other activities that ExxonMobil includes in the Upstream function, such as oil and gas transportation operations, LNG liquefaction and transportation operations, coal and power operations, technical service agreements, gains and losses from derivative activity, other nonoperating activities and adjustments for noncontrolling interests.

The results of operations for producing activities shown below do not include earnings from other activities that ExxonMobil includes in the Upstream function, such as oil and gas transportation operations, LNG liquefaction and transportation operations, power operations, technical service agreements, gains and losses from derivative activity, other nonoperating activities and adjustments for noncontrolling interests.

These excluded amounts for both consolidated and equity companies totaled $(519) million in 2023, $4,802 million in 2022 and $(1,380) million in 2021.

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Costs incurred also include new asset retirement obligations established in the current year, as well as increases or decreases to the asset retirement obligation resulting from changes in cost estimates or abandonment date.

Total consolidated costs incurred in 2022 were $14,513 million, up $4,636 million from 2021, due primarily to higher development costs.

In 2021, costs were $9,877 million, down $1,377 million from 2020, due primarily to lower development costs, partially offset by higher acquisition costs of unproved properties.

Total equity company costs incurred in 2022 were $1,769 million, up $318 million from 2021, due to higher development costs.

Total consolidated costs incurred in 2023 were $20,952 million, up $6,439 million from 2022, due primarily to higher development costs and the Denbury acquisition.

In 2022, costs were $14,513 million, up $4,636 million from 2021, due primarily to higher development costs.

Total equity company costs incurred in 2023 were $1,510 million, down $259 million from 2022, due to lower development costs.

Costs Incurred in Property Acquisitions,

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The natural gas quantities differ from the quantities of natural gas delivered for sale by the producing function as reported in the Upstream Operational Results due to volumes consumed or flared and inventory changes.

The changes between 2022 year-end proved reserves and 2021 year-end proved reserves include worldwide production of 1.4 billion oil-equivalent barrels (GOEB), asset sales of 0.4 GOEB primarily in the United States, and other downward revisions of 1.2 GOEB including the impact of the Russia expropriation (0.2 GOEB).

The changes between 2023 year-end proved reserves and 2022 year-end proved reserves include worldwide production of 1.4 billion oil-equivalent barrels (GOEB), asset sales of 0.2 GOEB primarily in the United States, and downward revisions of 0.4 GOEB.

Additions to proved reserves include 1.1 GOEB from extensions and discoveries primarily in the United States and Guyana and 0.2 GOEB related to the Denbury acquisition.

The changes between 2022 year-end proved reserves and 2021 year-end proved reserves include worldwide production of 1.4 GOEB, asset sales of 0.4 GOEB primarily in the United States, and other downward revisions of 1.2 GOEB including the impact of the Russia expropriation (0.2 GOEB).

Additions to proved reserves include 0.7 GOEB from purchases in Asia and 1.4 GOEB from extensions and discoveries primarily in the United States and Guyana.

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Worldwide production in 2021 was 1.4 GOEB.

The downward revisions in 2020, primarily as a result of low prices during 2020, include 3.1 billion barrels of bitumen at Kearl, 0.6 billion barrels of bitumen at Cold Lake, and 0.5 GOEB in the United States.

In addition, the Corporation’s near-term reduction in capital expenditures resulted in a net reduction to estimates of proved reserves of approximately 1.5 GOEB, mainly related to unconventional drilling in the United States.

Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves

35 unchanged sentences

Revisions (1)

(375) 52 3 38 (95) 2 (375) (85) (422) (62) (944)

Improved recovery — — — — — — — — — — —

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2,323 945 7 276 3,550 66 7,167 1,531 2,420 353 11,471

(1) Includes (118) million barrels in Russia which were expropriated.

Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves (continued)

10 unchanged sentences

Revisions (398) 32 — 31 30 3 (302) (110) 123 26 (263)

(375) 52 3 38 (95) 2 (375) (85) (422) (62) (944)

Improved recovery — — — — — — — — — — —

19 unchanged sentences

2,109 994 7 229 3,447 61 6,847 1,569 2,414 354 11,184

(1) Includes (118) million barrels in Russia which were expropriated.

Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves (continued)

73 unchanged sentences

Revisions (2)

(990) (38) 149 49 (307) 187 (950) (1,102)

Improved recovery — — — — — — — —

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

(2) Includes (199) billion cubic feet of natural gas and (152) million total oil-equivalent barrels in Russia which were expropriated.

Natural Gas and Oil-Equivalent Proved Reserves (continued)

10 unchanged sentences

Revisions (1,945) (201) (3) (49) 121 339 (1,738) (553)

(990) (38) 149 49 (307) 187 (950) (1,102)

Improved recovery — — — — — — — —

20 unchanged sentences

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

(2) Includes (199) billion cubic feet of natural gas and (152) million total oil-equivalent barrels in Russia which were expropriated.

Natural Gas and Oil-Equivalent Proved Reserves (continued)

143 unchanged sentences

189,609 69,247 258,856

Value of reserves added during the year due to extensions, discoveries,

improved recovery and net purchases/sales less related costs 18,592 3,008 21,600

Value of reserves added during the year due to extensions, discoveries, improved recovery and net purchases/sales less related costs 5,658 (1,701) 3,957

Changes in value of previous-year reserves due to:

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Exhibit Description

Agreement and Plan of Merger, dated as of October 10, 2023 among Exxon Mobil Corporation, SPQR, LLC and Pioneer Natural Resources Company (incorporated by reference to Exhibit 2.1 to the Registrant’s Report on Form 8-K of October 11, 2023).

Restated Certificate of Incorporation, as restated November 30, 1999, and as further amended effective June 20, 2001 (incorporated by reference to Exhibit 3(i) to the Registrant’s Annual Report on Form 10-K for 2015).

4 unchanged sentences

Extended Provisions for Restricted Stock Unit Agreements – Settlement in Shares.*

Short Term Incentive Program, as amended (incorporated by reference to Exhibit 10(iii)(b.1) to the Registrant’s Annual Report on Form 10-K for 2018).*

Short Term Incentive Program, as amended.*

Earnings Bonus Unit instrument (incorporated by reference to Exhibit 10(iii)(b.2) to the Registrant's Annual Report on Form 10-K for 2019).*

Amendment of 2018 and 2019 Earnings Bonus Unit instruments, effective November 23, 2021 (incorporated by reference to Exhibit 99.1 to the Registrant's Report on Form 8-K of November 30, 2021).*

ExxonMobil Supplemental Savings Plan.*

ExxonMobil Supplemental Pension Plan.*

ExxonMobil Supplemental Savings Plan (incorporated by reference to Exhibit 10(iii)(c.1) to the Registrant's Annual Report on Form 10-K for 2022).*

ExxonMobil Supplemental Pension Plan (incorporated by reference to Exhibit 10(iii)(c.2) to the Registrant's Annual Report on Form 10-K for 2022).*

ExxonMobil Additional Payments Plan.*

4 unchanged sentences

Standing resolution for non-employee director cash fees dated March 1, 2020 (incorporated by reference to Exhibit 10(iii)(f.4) to the Registrant’s Report on Form 10-Q for the quarter ended March 31, 2020).*

Aircraft Time Share Agreement dated as of August 29, 2023, between Exxon Mobil Corporation and Darren W.

Woods (incorporated by reference to Exhibit 10(iii)(g) to the Registrant’s Report on Form 10-Q for the quarter ended October 31, 2023).*

Code of Ethics and Business Conduct (incorporated by reference to Exhibit 14 to the Registrant’s Annual Report on Form 10-K for 2017).

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Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.

Policy Relating to Recovery of Erroneously Awarded Compensation.

101 Interactive data files (formatted as Inline XBRL).

104 Cover page interactive data file (formatted as Inline XBRL and contained in Exhibit 101).

_____________________

* Compensatory plan or arrangement required to be identified pursuant to Item 15(a)(3) of this Annual Report on Form 10-K.

* Management contract or compensatory plan or arrangement required to be identified pursuant to Item 15(a)(3) of this Annual Report on Form 10-K.

** Schedules and exhibits have been omitted pursuant to Item 601(a)(5) of Regulation S-K.

A copy of any omitted schedule or exhibit will be furnished supplementally to the SEC upon request.

The registrant has not filed with this report copies of the instruments defining the rights of holders of long-term debt of the registrant and its subsidiaries for which consolidated or unconsolidated financial statements are required to be filed.

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POWER OF ATTORNEY

Each person whose signature appears below constitutes and appoints John D.

Buchanan, Brian J.

Each person whose signature appears below constitutes and appoints Jim E.

Parsons, Brian J.

Conjelko, and Antony E.

4 unchanged sentences

WOODS /s/ MICHAEL J.

ANGELAKIS /s/ KAISA H.

ANGELAKIS /s/ JOSEPH L.

Woods, Chairman of the Board Michael J.

Angelakis Kaisa H.

AVERY /s/ JOSEPH L.

Angelakis Joseph L.

AVERY /s/ STEVEN A.

Principal Financial Officer Susan K.

Avery Joseph L.

Avery Steven A.

/s/ KATHRYN A.

MIKELLS /s/ ANGELA F.

BRALY /s/ STEVEN A.

BRALY /s/ ALEXANDER A.

Mikells, Senior Vice President and Chief Financial Officer Angela F.

Braly Steven A.

/s/ URSULA M.

BURNS /s/ ALEXANDER A.

Principal Accounting Officer Ursula M.

Burns Alexander A.

FOX /s/ GREGORY J.

Braly Alexander A.

/s/ GREGORY J.

GOFF /s/ LAWRENCE W.

Fox, Vice President

and Controller Gregory J.

Principal Accounting Officer Gregory J.

Goff Lawrence W.

HARRIS II /s/ JEFFREY W.

Harris II Jeffrey W.

FOX /s/ JOHN D.

HARRIS II /s/ DINA POWELL MCCORMICK

Fox, Vice President

and Controller John D.

Harris II Dina Powell McCormick

HIETALA /s/ JEFFREY W.

Hietala Jeffrey W.

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-K

Item 9A. Controls and Procedures