What changed in this filing

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Item 2. Management’s Discussion and Analysis

2024-11-04 compared with 2024-08-05 · 120 added, 98 removed, 410 unchanged (35% of the section changed)

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

Second quarter crude prices were essentially unchanged versus the first quarter, near the middle of the 10-year historical range (2010-2019), as the market remains relatively balanced.

Natural gas prices declined due to lower demand from milder weather, though remained toward the middle of the 10-year range.

Industry refining margins declined from the top of the 10-year range to the lower half of the range, as increased supply more than met record global demand in the second quarter.

Chemical margins showed a slight improvement compared to the first quarter of 2024, although margins remained at bottom-of-cycle conditions and well below the 10-year range, as capacity additions outpaced demand growth.

During the third quarter, crude prices remained in the middle of the 10-year historical range (2010-2019), though decreased slightly versus the second quarter, reflecting uncertainty in supply and demand balances.

Natural gas prices strengthened during the quarter and moved toward the top half of the 10-year range, supported by summer demand in North America and supply concerns in Europe.

Industry refining margins declined versus the second quarter, and moved to the low end of the 10-year range, as record global demand was more than met by additional supply.

Chemical margins improved slightly compared to the second quarter due to lower North America feed costs, though remained well below the 10-year range, as industry bottom-of-cycle conditions continued driven by oversupply in Asia.

Recent Mergers and Acquisitions

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Advantaged Volume Growth.

Earnings impacts from change in volume/mix from advantaged assets, strategic projects, and high-value products.

Represents earnings impacts from change in volume/mix from advantaged assets, strategic projects, and high-value products.

• Advantaged Assets (Advantaged growth projects).

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Lower-emission fuels refers to fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport.

Includes all volume/mix factors not included in Advantaged Volume Growth defined above.

Represents all volume/mix factors not included in Advantaged Volume Growth defined above.

Structural Cost Savings.

After-tax earnings effect of Structural Cost Savings as defined on page 21, including cash operating expenses related to divestments that were previously in the "volume/mix" factor.

Includes all expenses otherwise not included in other earnings factors.

Represents after-tax earnings effects of Structural Cost Savings as defined on page 21, including cash operating expenses related to divestments that were previously in the "volume/mix" factor.

Represents all expenses otherwise not included in other earnings factors.

Timing Effects.

Timing effects are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting).

Represents timing effects that are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting).

(1) Heritage Permian basin assets exclude assets acquired as part of the acquisition of Pioneer that closed May 3, 2024.

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Three Months Ended

June 30, 2024 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

September 30, 2024 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

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Three Months Ended

June 30, 2023 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

September 30, 2023 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

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Tax-related items — (14) — (33) — — — — — (47)

Total Identified Items — (14) — (33) — — — — — (47)

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

1,566 4,573 1,356 1,119 338 (89) 326 293 (365) 9,117

Six Months Ended

June 30, 2024 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

Nine Months Ended

September 30, 2024 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

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5,170 13,722 1,803 1,828 1,397 1,060 1,226 1,080 (1,216) 26,070

Six Months Ended

June 30, 2023 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

Nine Months Ended

September 30, 2023 Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

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Tax-related items — (184) — (45) — — — — — (229)

Total Identified Items — (184) — (45) — — — — — (229)

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

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Structural Cost Savings describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures that are expected to be sustainable compared to 2019 levels.

Relative to 2019, estimated cumulative Structural Cost Savings totaled $10.7 billion, which included an additional $1.0 billion in the first six months of 2024.

Relative to 2019, estimated cumulative Structural Cost Savings totaled $11.3 billion, which included an additional $1.6 billion in the first nine months of 2024.

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, mergers and acquisitions, new business venture development, and early-stage projects.

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This measure is useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management.

Dollars in billions (unless otherwise noted) Twelve Months

Ended December 31, Six Months

Ended June 30,

Dollars in billions (unless otherwise noted) Twelve Months Ended

December 31, Nine Months Ended

September 30,

2019 2023 2023 2024

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Due to rounding, numbers presented may not add up precisely to the totals indicated.

REVIEW OF SECOND QUARTER 2024 RESULTS

ExxonMobil’s second quarter 2024 earnings were $9.2 billion, or $2.14 per share assuming dilution, compared with earnings of $7.9 billion a year earlier.

The increase in earnings was mainly driven by improved realizations and increased volumes for advantaged Upstream investments in the Permian and Guyana, partially offset by weaker industry refining margins and higher scheduled maintenance.

Capital and exploration expenditures were $7.0 billion, up $0.9 billion from second quarter 2023.

Earnings for the first six months of 2024 were $17.5 billion, or $4.20 per diluted share, compared with $19.3 billion a year earlier.

Capital and exploration expenditures were $12.9 billion, up $0.3 billion from the first six months of 2023.

REVIEW OF THIRD QUARTER 2024 RESULTS

ExxonMobil’s third quarter 2024 earnings were $8.6 billion, compared to $9.1 billion a year earlier.

The decrease in earnings was mainly driven by weaker industry refining margins and higher Upstream depreciation, partially offset by favorable timing effects from derivatives mark-to-market impacts and increased volumes from advantaged Upstream investments in the Permian and Guyana.

Capital and exploration expenditures were $7.2 billion, up $1.1 billion from third quarter 2023.

Earnings for the first nine months of 2024 were $26.1 billion, compared to $28.4 billion a year earlier.

Capital and exploration expenditures were $20.0 billion, up $1.5 billion from the first nine months of 2023.

The Corporation distributed $12.3 billion in dividends to shareholders and repurchased $13.8 billion of common stock.

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(1) Refer to page 20 for definition of Identified Items and earnings (loss) excluding Identified Items.

Upstream Second Quarter Earnings Factor Analysis

Upstream Third Quarter Earnings Factor Analysis

(millions of dollars)

Price – Price impacts increased earnings by $1,370 million, driven by an increase in liquids realizations, partly offset by a decrease in natural gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $1,250 million, driven by record production from Guyana, growth in heritage Permian (2) , and the Pioneer acquisition.

Base Volume – Higher base volumes increased earnings by $30 million.

Price – Price impacts decreased earnings by $620 million, driven by a decrease in liquids realizations, partly offset by an increase in natural gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $1,070 million, driven by record Permian production, including the Pioneer acquisition and growth in heritage Permian (2) , and higher production in Guyana.

Base Volume – Base volumes increased earnings by $10 million.

Structural Cost Savings – Increased earnings by $230 million.

Expenses – Higher expenses decreased earnings by $500 million, primarily from depreciation.

Other – All other items increased earnings by $130 million, driven by favorable impacts from divestments, partly offset by Pioneer-related transaction costs.

Timing Effects – Less favorable timing effects from derivatives mark-to-market impacts decreased earnings by $170 million.

Other – All other items decreased earnings by $200 million, mainly driven by unfavorable tax impacts.

Timing Effects – Less unfavorable timing effects from derivatives mark-to-market impacts increased earnings by $30 million.

Identified Items (1) – 3Q 2023 $(14) million loss driven by additional European taxes.

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(millions of dollars)

Price – Price impacts increased earnings by $570 million, driven by an increase in average realizations for crude oil, partially offset by a decrease in average natural gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $1,680 million, driven by record production from Guyana, growth in heritage Permian (2) , and the Pioneer acquisition.

Price – Price impacts decreased earnings by $10 million, driven by lower natural gas realizations partially offset by higher liquids realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $2,750 million, driven by record Permian production, including the Pioneer acquisition and growth in heritage Permian (2) , and record production in Guyana.

Base Volume – Lower base volumes decreased earnings by $440 million, mainly driven by divestments and government-mandated curtailments.

Structural Cost Savings – Increased earnings by $320 million, due to operational efficiencies and divestments.

Expenses – Higher expenses decreased earnings by $510 million, primarily from depreciation.

Other – All other items, including costs related to the Pioneer transaction, decreased earnings by $340 million.

Structural Cost Savings – Increased earnings by $550 million, driven by operational efficiencies and divestments.

Expenses – Higher expenses decreased earnings by $1,000 million, primarily from increased depreciation.

Other – All other items, mainly unfavorable tax and forex impacts, and Pioneer-related transaction costs, decreased earnings by $530 million.

Timing Effects – Less unfavorable timing effects from derivatives mark-to-market impacts increased earnings by $230 million.

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Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(thousands of barrels daily) Three Months Ended

June 30 Six Months Ended

September 30 Nine Months Ended

Volumes reconciliation (Oil-equivalent production) (1)

2023 3,688 3,709

Entitlements - Net Interest (20) (7)

Entitlements - Price / Spend / Other 2 (13)

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

2Q 2024 production of 4.4 million oil-equivalent barrels per day increased 750 thousand oil-equivalent barrels per day from 2Q 2023, driven by the Pioneer acquisition and record production in Guyana and heritage Permian (1) .

4.1 million oil-equivalent barrels per day in 2024 increased 352 thousand oil-equivalent barrels per day from 2023, driven by the Pioneer acquisition and record production in Guyana and heritage Permian (1) .

Due to rounding, numbers presented may not add up precisely to the totals indicated.

3Q 2024 production of 4.6 million oil-equivalent barrels per day increased 894 thousand oil-equivalent barrels per day from 3Q 2023, driven by record Permian production, including the Pioneer acquisition and growth in heritage Permian (2) , and higher production in Guyana.

4.2 million oil-equivalent barrels per day in 2024 increased 534 thousand oil-equivalent barrels per day from 2023, driven by record Permian production, including the Pioneer acquisition and growth in heritage Permian (2) , and record production in Guyana.

(2) Heritage Permian basin assets exclude assets acquired as part of the acquisition of Pioneer that closed May 3, 2024.

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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United States — — — —

— (33) — (45)

Total — (33) — (45)

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Total 1,309 2,475 3,631 8,980

Energy Products Second Quarter Earnings Factor Analysis

Due to rounding, numbers presented may not add up precisely to the totals indicated.

Energy Products Third Quarter Earnings Factor Analysis

(millions of dollars)

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Advantaged Volume Growth – Higher volumes from strategic projects increased earnings by $20 million.

Base Volume – Lower base volumes decreased earnings by $500 million, driven by higher scheduled maintenance and divestments.

Base Volume – Lower base volumes decreased earnings by $200 million, driven by divestments and the Joliet refinery weather event.

Structural Cost Savings – Increased earnings by $100 million.

Expenses – Higher expenses decreased earnings by $260 million from higher planned maintenance and turnaround activity.

Other – All other items decreased earnings by $20 million.

Expenses – Higher expenses decreased earnings by $100 million.

Other – All other items increased earnings by $70 million.

Timing Effects – Favorable timing effects from derivatives mark-to-market impacts increased earnings by $1,340 million.

Identified Items (1) – 2Q 2023 $18 million gain related to European taxes.

Identified Items (1) – 3Q 2023 $(33) million loss related to European taxes.

(1) Refer to page 20 for definition of Identified Items and earnings (loss) excluding Identified Items.

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(millions of dollars)

Margins – Margins decreased earnings by $2,880 million, driven by significantly weaker industry refining margins, which normalized from the historically high levels in early 2023.

Margins – Margins decreased earnings by $5,150 million, driven by significantly weaker industry refining margins, down from the historically high levels in 2023.

Advantaged Volume Growth – Higher volumes from the Beaumont refinery expansion increased earnings by $140 million.

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Structural Cost Savings – Increased earnings by $440 million due primarily to divestments and maintenance related efficiencies.

Expenses – Higher expenses decreased earnings by $550 million, driven by increased turnaround and higher planned maintenance activity.

Expenses – Higher expenses decreased earnings by $630 million, driven by higher planned maintenance activity.

Other – All other items increased earnings by $70 million.

Timing Effects – Unfavorable timing effects mainly from derivatives mark-to-market impacts decreased earnings by $570 million.

Timing Effects – Favorable timing effects from derivatives mark-to-market impacts, increased earnings by $770 million.

Identified Items (1) – 2023 $(45) million loss from additional European taxes.

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(thousands of barrels daily) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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Total 893 249 2,457 1,448

Identified Items (1)

United States — — — —

Total — — — —

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

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(1) Refer to page 20 for definition of Identified Items and earnings (loss) excluding Identified Items.

Chemical Products Second Quarter Earnings Factor Analysis

Chemical Products Third Quarter Earnings Factor Analysis

(millions of dollars)

Margin – Lower realizations, partially offset by lower energy costs, decreased earnings by $30 million.

Margin – Improved margins increased earnings by $770 million.

Advantaged Volume Growth – High-value product sales growth increased earnings by $70 million.

Base Volume – Lower base volumes from maintenance and product sales mix decreased earnings by $190 million.

Structural Cost Savings – Increased earnings by $30 million.

Expenses – Higher expenses, including increased project and maintenance costs, decreased earnings by $140 million.

Other – All other items decreased earnings by $40 million.

Expenses – Higher project spend and maintenance costs decreased earnings by $60 million.

Other – All other items increased earnings by $20 million.

Chemical Products Year-to-Date Earnings Factor Analysis

(millions of dollars)

Margins – Despite weaker global industry margins, overall margins increased earnings by $100 million, driven by North American feed advantage, lower energy costs, and stronger high-value product margins.

Margins – Improved North American feed advantage and higher performance product margins increased earnings by $930 million.

Advantaged Volume Growth – Growth in high-value product sales increased earnings by $330 million.

Base Volume – Higher base volumes increased earnings by $120 million, driven by modest demand growth and lower turnaround impacts.

Base Volume – Mix upgrade strategy resulted in less base volumes which decreased earnings by $120 million.

Structural Cost Savings – Increased earnings by $100 million, primarily from operational efficiencies.

Expenses – Higher growth projects spend and maintenance decreased earnings by $150 million.

Other – All other items decreased earnings by $20 million .

Expenses – Higher spend on planned maintenance and strategic growth projects that start-up in 2025, decreased earnings by $230 million.

Chemical Products Operational Results

(thousands of metric tons) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(1) Refer to page 20 for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products Second Quarter Earnings Factor Analysis

Specialty Products Third Quarter Earnings Factor Analysis

(millions of dollars)

Margin – Stronger finished lubes and basestocks margins increased earnings by $100 million.

Margin – Stronger basestocks and finished lubes margins increased earnings by $260 million.

Advantaged Volume – High-value products volume growth increased earnings by $20 million.

Base Volume – Base volumes were flat.

Structural Cost Savings – Increased earnings by $20 million.

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(millions of dollars)

Margins – Stronger finished lubes margins increased earnings by $100 million, driven by technology-enabled feed optimization, partially offset by weaker industry basestocks margins.

Margins – Stronger finished lubes margins and industry basestocks margins, increased earnings by $350 million.

Advantaged Volume Growth – Additional high-value product sales increased earnings by $50 million.

Base Volume – Higher basestocks sales increased earnings by $30 million.

Base Volume – Increased earnings by $40 million.

Structural Cost Savings – Increased earnings by $80 million.

Expenses – Higher expenses, primarily related to new business development, decreased earnings by $80 million.

Expenses – Higher expenses including marketing activities and new business development, decreased earnings by $150 million.

Other – All other items, primarily unfavorable foreign exchange impacts, decreased earnings by $130 million.

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(thousands of metric tons) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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(1) Refer to page 20 for definition of Identified Items and earnings (loss) excluding Identified Items.

Corporate and Financing expenses were $310 million for the second quarter of 2024, $196 million lower than the second quarter of 2023, mainly due to lower financing costs.

Corporate and Financing expenses were $672 million for the first six months of 2024, $189 million lower than 2023, mainly due to lower financing costs, partially offset by Pioneer-related costs.

Corporate and Financing expenses were $544 million for the third quarter of 2024, $179 million higher than the third quarter of 2023, mainly due to higher financing costs.

Corporate and Financing expenses were $1,216 million for the first nine months of 2024, $10 million lower than 2023.

LIQUIDITY AND CAPITAL RESOURCES

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales in the second quarter of 2024 was $11.5 billion, an increase of $0.8 billion from the comparable 2023 period primarily reflecting higher earnings.

Cash provided by operating activities totaled $25.2 billion for the first six months of 2024, $0.5 billion lower than 2023.

Cash flow from operations and asset sales in the third quarter of 2024 was $17.7 billion, an increase of $0.8 billion from the comparable 2023 period primarily due to favorable working capital.

Cash provided by operating activities totaled $42.8 billion for the first nine months of 2024, $1.1 billion higher than 2023.

Net income including noncontrolling interests was $27.1 billion, a decrease of $2.2 billion from the prior year period.

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See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first six months of 2024 used net cash of $9.4 billion, an increase of $0.2 billion compared to the prior year.

Investing activities for the first nine months of 2024 used net cash of $15.7 billion, an increase of $2.1 billion compared to the prior year.

Spending for additions to property, plant and equipment of $17.5 billion was $1.8 billion higher than 2023.

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Net investments and advances decreased $0.2 billion from $0.9 billion in 2023.

Cash acquired from mergers and acquistions during the first six months of 2024 was $0.8 billion.

Net cash used in financing activities was $20.5 billion in the first six months of 2024, including $8.3 billion for the purchase of 72.1 million shares of ExxonMobil stock, as part of the previously announced buyback program, and $1.3 billion to repay Pioneer convertible debt.

Cash acquired from mergers and acquisitions during the first nine months of 2024 was $0.8 billion.

Net cash used in financing activities was $31.6 billion in the first nine months of 2024, including $13.8 billion for the purchase of 119.8 million shares of ExxonMobil stock, as part of the previously announced buyback program, and $1.3 billion to repay Pioneer convertible debt.

This compares to net cash used in financing activities of $24.7 billion in the prior year.

Total debt at the end of the second quarter of 2024 was $43.2 billion compared to $41.6 billion at year-end 2023.

The Corporation's debt to total capital ratio was 13.5 percent at the end of the second quarter of 2024 compared to 16.4 percent at year-end 2023.

The net debt to capital ratio (1) was 5.7 percent at the end of the second quarter, an increase of 1.2 percentage points from year-end 2023.

Total debt at the end of the third quarter of 2024 was $42.6 billion compared to $41.6 billion at year-end 2023.

The Corporation's debt to total capital ratio was 13.3 percent at the end of the third quarter of 2024 compared to 16.4 percent at year-end 2023.

The net debt to capital ratio (1) was 5.4 percent at the end of the third quarter, an increase of 0.9 percentage points from year-end 2023.

The Corporation's capital allocation priorities are investing in competitively advantaged, high-return projects;

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and sharing our success with our shareholders through more consistent share repurchases and a growing dividend.

The Corporation distributed a total of $8.1 billion to shareholders in the first six months of 2024 through dividends.

The Corporation distributed a total of $12.3 billion to shareholders in the first nine months of 2024 through dividends.

The Corporation has access to significant capacity of long-term and short-term liquidity.

Internally generated funds are expected to cover the majority of financial requirements, supplemented by long-term and short-term debt.

The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.8 billion as of second quarter 2024.

The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.6 billion as of the end of third quarter 2024.

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.

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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.

Through the second quarter of 2024, the Corporation entered into two long-term purchase agreements with an estimated total obligation of approximately $3.0 billion.

Through the third quarter of 2024, the Corporation entered into two long-term purchase agreements with an estimated total obligation of approximately $3.0 billion.

The Corporation assumed take-or-pay obligations of $4.9 billion associated with the Pioneer acquisition that include long-term purchase, gathering, processing, and transportation commitments.

(millions of dollars) Three Months Ended

June 30, Six Months Ended

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September 30,

2024 2023 2024 2023

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(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selli ng, general and administrative expenses”.

Total taxes were $11.6 billion for the second quarter of 2024, a decrease of $0.2 billion from 2023.

Total taxes were $11.7 billion for the third quarter of 2024, a decrease of $1.1 billion from 2023.

Income tax expense was $4.1 billion compared to $4.4 billion in the prior year.

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Total other taxes and duties decreased by $0.9 billion to $7.6 billion.

Total taxes were $22.6 billion for the first six months of 2024, a decrease of $2.3 billion from 2023.

Income tax expense decreased by $0.6 billion to $7.9 billion reflecting lower refining margins.

The effective income tax rate of 35 percent was up compared to the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates.

Total taxes were $34.3 billion for the first nine months of 2024, a decrease of $3.4 billion from 2023.

Income tax expense decreased by $0.9 billion to $12.0 billion reflecting lower commodity prices.

T he effective income tax rate of 35 percent was up compared to the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates.

Total other taxes and duties decreased by $2.6 billion to $22.3 billion.

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(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

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Total 7,159 6,022 20,037 18,568

Capital and exploration expenditures in the second quarter of 2024 were $7.0 billion, up 14% from the second quarter of 2023.

Capital and exploration expenditures in the first six months of 2024 were $12.9 billion, up 3% from the first six months of 2023.

Capital and exploration expenditures in the third quarter of 2024 were $7.2 billion, up $1.1 billion from the third quarter of 2023.

Capital and exploration expenditures in the first nine months of 2024 were $20.0 billion, up $1.5 billion from the first nine months of 2023.

The Corporation anticipates an investment level of approximately $28 billion in 2024.

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and other statements of future events or conditions, are forward-looking statements.

Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, biofuel, hydrogen, ammonia, direct air capture, and other future plans to reduce emissions and emission intensity of ExxonMobil, its affiliates, 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.

Similarly, discussion of future plans related to carbon capture, transportation and storage, biofuel, hydrogen, ammonia, lithium, direct air capture, and other future low carbon business plans to reduce emissions and emission intensity of ExxonMobil, its affiliates, 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;

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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 heritage Upstream Permian Basin (1) unconventional operated assets by 2030 and in Pioneer 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 and ammonia, produce biofuels, produce lithium, create new advanced carbon materials, and use plastic waste as a feedstock for advanced recycling;

timely granting of governmental permits and certifications;

meeting ExxonMobil’s emission reduction ambitions and plans, 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 and ammonia, produce biofuels, produce lithium, create new advanced carbon materials, and use plastic waste as a feedstock for advanced recycling;

future debt levels and credit ratings;

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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 the development or changes in government policies supporting lower carbon and new market investment opportunities such as the U.S.

changes in law, regulations, taxes, trade sanctions, policies or timely granting of governmental permits and certifications, such as the development or changes in government policies supporting lower carbon and new market 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;

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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 response from governments;

the occurrence, pace, rate of recovery and effects of public health crises, including effects of government responses on people and economies;

adoption of regulatory incentives consistent with law, such as the Inflation Reduction Act;

reservoir performance, including variability and timing factors applicable to unconventional resources and the success of new unconventional technologies;

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

changes in market strategy by national oil companies;

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

14 unchanged sentences

References to projects or opportunities may not reflect investment decisions made by ExxonMobil 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.

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;

3 unchanged sentences

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 2. Management’s Discussion and Analysis