What changed in this filing

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Item 1. Financial Statements

2024-04-29 compared with 2023-10-31 · 42 added, 156 removed, 364 unchanged (35% of the section changed)

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Revenues and other income

19 unchanged sentences

Earnings (loss) per common share (dollars)

2.25 4.68 6.98 10.17

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

2.25 4.68 6.98 10.17

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

1 unchanged sentence

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Net income (loss) including noncontrolling interests 8,566 11,843

1 unchanged sentence

Foreign exchange translation adjustment ( 1,267 ) 173

Adjustment for foreign exchange translation (gain)/loss

included in net income 549 — 549 —

Postretirement benefits reserves adjustment (excluding amortization) ( 42 ) 19

7 unchanged sentences

(millions of dollars, unless noted)

September 30, 2023 December 31, 2022

March 31, 2024 December 31, 2023

Current assets

28 unchanged sentences

Common stock held in treasury

( 4,056 million shares at September 30, 2023 and

( 4,076 million shares at March 31, 2024 and

4,048 million shares at December 31, 2023)

6 unchanged sentences

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars) Nine Months Ended

September 30,

(millions of dollars) Three Months Ended

CASH FLOWS FROM OPERATING ACTIVITIES

12 unchanged sentences

Additions to long-term debt 108 20

Reductions in long-term debt ( 11 ) —

Reductions in short-term debt

1 unchanged sentence

Additions/(reductions) in debt with three months or less maturity ( 5 ) ( 192 )

Contingent consideration payments ( 68 ) ( 58 )

Cash dividends to ExxonMobil shareholders ( 3,808 ) ( 3,738 )

16 unchanged sentences

Finance leases — 438

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

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

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

2 unchanged sentences

(millions of dollars, unless noted)

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

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

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

Other ( 3 ) — — — ( 3 ) ( 29 ) ( 32 )

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

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

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

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

Dispositions — — — 1 1 — 1

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

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

Amortization of stock-based awards 138 — — — 138 — 138

Other ( 2 ) — — — ( 2 ) 59 57

Net income (loss) for the period — 9,070 — — 9,070 276 9,346

Dividends - common shares — ( 3,663 ) — — ( 3,663 ) ( 218 ) ( 3,881 )

Other comprehensive income (loss) — — ( 431 ) — ( 431 ) 64 ( 367 )

Acquisitions, at cost — — — ( 4,456 ) ( 4,456 ) ( 302 ) ( 4,758 )

Dispositions — — — 1 1 — 1

Balance as of September 30, 2023 16,165 450,138 ( 13,088 ) ( 253,512 ) 199,703 7,830 207,533

Three Months Ended September 30, 2023 Three Months Ended September 30, 2022

Common Stock Share Activity

(millions of shares)

Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding

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

Acquisitions — ( 40 ) ( 40 ) — ( 50 ) ( 50 )

Dispositions — — — — — —

Balance as of September 30 8,019 ( 4,056 ) 3,963 8,019 ( 3,901 ) 4,118

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

CONDENSED CONSOLIDATED STATEMENT OF CHANGE IN EQUITY

ExxonMobil Share of Equity

(millions of dollars, unless noted)

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

Common Stock Earnings Reinvested Accumulated Other Comprehensive Income Common Stock Held

in Treasury ExxonMobil Share of Equity Non-controlling Interests Total

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

4 unchanged sentences

Other comprehensive income (loss) — — 175 — 175 23 198

Acquisitions, at cost — — — ( 10,620 ) ( 10,620 ) ( 1,047 ) ( 11,667 )

Share repurchases, at cost — — — ( 4,385 ) ( 4,385 ) — ( 4,385 )

Dispositions — — — 2 2 — 2

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

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

Balance as of December 31, 2023 17,781 453,927 ( 11,989 ) ( 254,917 ) 204,802 7,736 212,538

4 unchanged sentences

Other comprehensive income (loss) — — ( 1,180 ) — ( 1,180 ) ( 120 ) ( 1,300 )

Acquisitions, at cost — — — ( 13,224 ) ( 13,224 ) ( 302 ) ( 13,526 )

Share repurchases, at cost — — — ( 2,978 ) ( 2,978 ) — ( 2,978 )

Dispositions — — — 4 4 — 4

Balance as of September 30, 2023 16,165 450,138 ( 13,088 ) ( 253,512 ) 199,703 7,830 207,533

Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022

Balance as of March 31, 2024 17,971 458,339 ( 13,169 ) ( 257,891 ) 205,250 7,802 213,052

Three Months Ended March 31, 2024 Three Months Ended March 31, 2023

Common Stock Share Activity

2 unchanged sentences

Balance as of December 31 8,019 ( 4,048 ) 3,971 8,019 ( 3,937 ) 4,082

Acquisitions — ( 119 ) ( 119 ) — ( 121 ) ( 121 )

Share repurchases, at cost — ( 28 ) ( 28 ) — ( 39 ) ( 39 )

Dispositions — — — — — —

Balance as of September 30 8,019 ( 4,056 ) 3,963 8,019 ( 3,901 ) 4,118

Balance as of March 31 8,019 ( 4,076 ) 3,943 8,019 ( 3,976 ) 4,043

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

4 unchanged sentences

All such adjustments are of a normal recurring nature.

Prior data has been reclassified in certain cases to conform to the current presentation basis.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

In response to Russia’s military action in Ukraine, the Corporation announced in early 2022 that it planned to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and develop steps to exit the venture.

In light of this, an impairment assessment was conducted, and management determined that the carrying value of the asset group was not recoverable.

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

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

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

The Corporation’s fourth-quarter 2022 results included an after-tax benefit of $ 1.1 billion largely reflecting the impact of the expropriation on the company’s various obligations related to Sakhalin.

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

Pioneer Natural Resources Merger

On October 11, 2023, the Corporation entered into 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 Octob er 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 that the number of shares issuable in connection with the transaction to be approximately 545 million.

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

Pioneer holds over 850,000 net acres in the Midland Basin of West Texas, which consist of proved reserves totaling over 2.4 billion barrels of oil equivalent (as of December 31, 2023) and over 700 thousand oil-equivalent barrels per day of production for the three months ended December 31, 2023.

Litigation and Other Contingencies

10 unchanged sentences

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

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

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

2 unchanged sentences

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, 2023, for guarantees relating to notes, loans and performance under contracts.

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2024, for guarantees relating to notes, loans and performance under contracts.

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

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

These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

September 30, 2023

March 31, 2024

(millions of dollars) Equity Company

5 unchanged sentences

(1) ExxonMobil share

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

restrictions on production, imports and exports;

price controls;

tax increases and retroactive tax claims;

expropriation of property;

cancellation of contract rights;

sanctions and environmental regulations.

Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

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

Other Comprehensive Income Information

2 unchanged sentences

(millions of dollars)

Cumulative Foreign Exchange Translation Adjustment Postretirement Benefits Reserves Adjustment Total

Cumulative Foreign

Adjustment Postretirement

Benefits Reserves

Adjustment Total

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

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

( 4,680 ) 335 ( 4,345 )

Amounts reclassified from accumulated other comprehensive income — 4 4

Total change in accumulated other comprehensive income 157 18 175

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

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

Balance as of December 31, 2023 ( 13,056 ) 1,067 ( 11,989 )

3 unchanged sentences

Total change in accumulated other comprehensive income ( 1,138 ) ( 42 ) ( 1,180 )

Balance as of September 30, 2023 ( 14,465 ) 1,377 ( 13,088 )

Balance as of March 31, 2024 ( 14,194 ) 1,025 ( 13,169 )

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 84 million and $( 74 ) million in 2024 and 2023, respectively.

3 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Foreign exchange translation gain/(loss) included in net income

(Statement of Income line:

Other income) ( 549 ) — ( 549 ) —

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

5 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Foreign exchange translation adjustment ( 75 ) 48

4 unchanged sentences

Earnings per common share Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

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

9,070 19,660 28,380 42,990

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

4,025 4,185 4,064 4,227

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

2.25 4.68 6.98 10.17

Dividends paid per common share (dollars)

0.91 0.88 2.73 2.64

(1) Includes restricted shares not vested.

2 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Components of net benefit cost

13 unchanged sentences

Amortization of prior service cost 13 12

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

Net benefit cost 87 168

7 unchanged sentences

Financial Instruments and Derivatives

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

September 30, 2023

The estimated fair value of financial instruments and derivatives at March 31, 2024 and December 31, 2023, and the related hierarchy level for the fair value measurement was as follows:

March 31, 2024

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

49 unchanged sentences

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

At September 30, 2023 and December 31, 2022, respectively, the Corporation had $ 834 million and $ 1,494 million of collateral under master netting arrangements not offset against the derivatives on the Condensed Consolidated Balance Sheet, primarily related to initial margin requirements.

At March 31, 2024 and December 31, 2023, respectively, the Corporation had $ 736 million and $ 800 million of collateral under master netting arrangements not offset against the derivatives on the Condensed Consolidated Balance Sheet, primarily related to initial margin requirements.

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

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

As of September 30, 2023, the Corporation has designated $ 4.8 billion of its Euro-denominated debt and related accrued interest as a net investment hedge of its European business.

As of March 31, 2024, the Corporation has designated $ 4.9 billion of its Euro-denominated debt and related accrued interest as a net investment hedge of its European business.

The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $ 524 million and undrawn long-term committed lines of credit of $ 834 million as of third quarter 2023.

The Corporation had undrawn short-term committed lines of credit of $ 323 million and undrawn long-term committed lines of credit of $ 1,914 million as of first quarter 2024.

Derivative Instruments

3 unchanged sentences

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

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

At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2024 and December 31, 2023, or results of operations for the periods ended March 31, 2024 and 2023.

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

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

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

(millions) September 30, 2023 December 31, 2022

The net notional long/(short) position of derivative instruments at March 31, 2024 and December 31, 2023, was as follows:

(millions) March 31, 2024 December 31, 2023

Crude oil (barrels) 15 ( 7 )

3 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Sales and other operating revenue ( 792 ) 651

3 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Earnings (Loss) After Income Tax

United States 1,054 1,632

4,559 9,309 13,041 19,043

Energy Products

United States 836 1,910

1,086 2,811 4,141 4,744

Chemical Products

United States 504 324

( 89 ) 177 300 1,263

Specialty Products

United States 404 451

293 456 914 871

Corporate and Financing ( 362 ) ( 355 )

( 365 ) ( 152 ) ( 1,226 ) ( 1,132 )

Corporate total 8,220 11,430

1 unchanged sentence

United States 2,190 2,770

3,424 8,770 12,550 22,214

Energy Products

3 unchanged sentences

United States 2,194 2,029

3,557 4,213 10,927 13,207

Specialty Products

United States 1,469 1,568

2,998 3,709 9,382 10,478

Corporate and Financing 24 9

2 unchanged sentences

United States 5,988 4,956

10,532 11,723 28,343 36,091

Energy Products

United States 6,558 5,451

7,286 9,551 21,243 29,161

Chemical Products

United States 1,865 1,788

976 1,252 2,730 4,359

Specialty Products

United States 655 680

142 246 410 665

Corporate and Financing 79 64

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

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

Geographic Sales and Other Operating Revenue

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

United States 30,656 31,291

7 unchanged sentences

France 3,473 3,484

Italy 2,923 2,990 7,986 8,888

Belgium 2,407 2,755 7,467 8,632

Australia 2,425 2,428

Belgium 2,407 2,649

Germany 2,347 2,293

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

2 unchanged sentences

Revenue from Contracts with Customers

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

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

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

4 unchanged sentences

Three Months Ended

September 30, Nine Months Ended

September 30,

2023 2022 2023 2022

Revenue from contracts with customers 58,419 64,304

2 unchanged sentences

Divestment Activities

Through September 30, 2023, the Corporation realized proceeds of approximately $ 3.1 billion from its divestment activities in 2023 with negligible impact on net after-tax earnings.

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

Through March 31, 2024, the Corporation realized proceeds of approximately $ 0.7 billion from its divestment activities with negligible impact on net after-tax earnings.

This included the sale of the Santa Ynez Unit and associated facilities in California, as well as other smaller divestments.

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

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

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.

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

2 unchanged sentences

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

Denbury Acquisition

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

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

We expect that the number of shares issuable in connection with the transaction to be approximately 45 million.

Denbury scheduled a shareholder vote for October 31, 2023, and assuming shareholder approval, the transaction is currently expected to close in early November.

In addition to carbon capture and storage assets, the acquisition includes Gulf Coast and Rocky Mountain oil and natural gas operations which consist of proved reserves totaling over 200 million barrels of oil equivalent (as of December 31, 2022), with approximately 47 thousand oil-equivalent barrels per day of production for the first half of 2023.

Pioneer Natural Resources Merger

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

Based on the Octob er 10 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 that the number of shares issuable in connection with the transaction to be approximately 546 million.

The transaction is currently expected to close in the first half of 2024, subject to regulatory approvals.

Pioneer holds over 850,000 net acres in the Midland Basin of West Texas, which consist of proved reserves totaling over 2.3 billion barrels of oil equivalent (as of December 31, 2022) and over 700 thousand oil-equivalent barrels per day of production for the three months ended June 30, 2023.

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

What changed 10-Q

Item 1. Financial Statements