What changed in this filing

/stocks — the workspaceLOADING

Item 9A. Controls and Procedures

2025-02-19 compared with 2024-02-28 · 772 added, 492 removed, 2989 unchanged (30% 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, 2024.

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.

The Corporation excluded Pioneer from our assessment of internal control over financial reporting as of December 31, 2024, because it was acquired by the Corporation in a business combination during 2024.

Total assets and total revenues of Pioneer, a wholly owned subsidiary, represent nineteen percent and four percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2024.

PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Corporation’s internal control over financial reporting as of December 31, 2024, as stated in their report included in the Financial Section of this report.

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• The section entitled “Election of Directors”;

• The portion entitled "Delinquent Section 16(a) Reports" of the section entitled "Director and Executive Officer Stock Ownership";

• 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 "Nominating and Governance Committee" portion and the "Audit Committee" portion of the section entitled “Corporate Governance”.

The Corporation has adopted an Insider Trading Policy governing the purchase, sale, and/or other dispositions of its securities by its directors, officers and employees, and the Corporation itself, that the Corporation believes is reasonably designed to promote compliance with insider trading laws, rules and regulations and the exchange listing standards applicable to the Corporation.

A copy of the Corporation’s Insider Trading Policy is filed as Exhibit 19 to this report.

EXECUTIVE COMPENSATION

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SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

The information required under Item 403 of Regulation S-K is incorporated by reference to the sections “Certain Beneficial Owners” and “Director and Executive Officer Stock Ownership” of the registrant’s 2024 Proxy Statement.

The information required under Item 403 of Regulation S-K is incorporated by reference to the sections entitled “Certain Beneficial Owners” and “Director and Executive Officer Stock Ownership” of the registrant’s 2025 Proxy Statement.

Equity Compensation Plan Information

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(2) Available shares can be granted in the form of restricted stock or other stock-based awards.

Includes 53,971,387 shares available for award under the 2003 Incentive Program and 282,200 shares available for award under the 2004 Non-Employee Director Restricted Stock Plan.

Includes 47,088,821 shares available for award under the 2003 Incentive Program, 238,700 shares available for award under the 2004 Non-Employee Director Restricted Stock Plan, and 9,362,383 shares available for award under the Pioneer Natural Resources Company Amended and Restated 2006 Long Term Incentive Plan.

(3) Under the 2004 Non-Employee Director Restricted Stock Plan approved by shareholders in May 2004, and the related standing resolution adopted by the Board, each non-employee director automatically receives 8,000 shares of restricted stock when first elected to the Board and, if the director remains in office, an additional 2,500 restricted shares each following year.

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CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE

Incorporated by reference to the portion entitled “Related Person Transactions and Procedures” of the section entitled “Director and Executive Officer Stock Ownership”;

and the portion entitled “Director Independence” of the section entitled “Corporate Governance” of the registrant’s 2024 Proxy Statement.

PRINCIPAL ACCOUNTING FEES AND SERVICES

Incorporated by reference to the portion entitled “Director Independence” of the section entitled “Corporate Governance” and the portion entitled “Related Person Transactions and Procedures” of the section entitled “Director and Executive Officer Stock Ownership” of the registrant’s 2025 Proxy Statement.

PRINCIPAL ACCOUNTANT FEES AND SERVICES

Incorporated by reference to the portion entitled “Audit Committee” of the section entitled “Corporate Governance” and the section entitled “Ratification of Independent Auditors” of the registrant’s 2025 Proxy Statement.

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Employed (Non-GAAP)

Exploration Expenditures

Financial 2024 2023 2024 2023 2024 2023 2024 2023

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Additions to property, plant and equipment (1)

109,332 29,038 18,338

Property, plant and equipment, less allowances 294,318 214,940 204,692

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60.9 61.5 62.3

(1) Debt net of cash.

(1) Includes non-cash additions.

See Note 21 for additions resulting from the Pioneer acquisition in 2024.

(2) Net debt is total debt less cash and cash equivalents excluding restricted cash.

Net debt to capital ratio is net debt divided by net debt plus total equity.

Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet.

(3) 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.

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Listed below are definitions of several of ExxonMobil’s key business and financial performance measures.

These definitions are provided to facilitate understanding of the terms and their calculation.

These definitions are provided to facilitate understanding of the terms and their calculations.

Cash Flow from Operations and Asset Sales (Non-GAAP)

Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and returns of investments from the Consolidated Statement of Cash Flows.

Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds from asset sales and returns of investments from the Consolidated Statement of Cash Flows.

This cash flow reflects the total sources of cash both from operating the Corporation’s assets and from the divesting of assets.

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12.7% 15.0% 24.9%

FREQUENTLY USED TERMS

Selected Earnings Driver Definitions

The updated earnings drivers introduced in the first quarter of 2024 provide additional visibility into our business results.

The Company evaluates these drivers periodically to determine if any enhancements may provide helpful insights to the market.

Listed below are descriptions of the earnings drivers:

Advantaged Volume Growth.

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

• Advantaged Assets (Advantaged growth projects) .

Includes Permian (heritage Permian (1) and Pioneer), Guyana and LNG.

• Advantaged Projects.

Includes capital projects and programs of work that contribute to Energy, Chemical, and/or Specialty Products segments that drive integration of segments/businesses, increase yield of higher value products, or deliver higher than average returns.

• High-Value Products.

Includes performance products and lower-emission fuels.

Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users.

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

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

Structural Cost Savings.

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.

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

Represents all expenses otherwise not included in other earnings drivers.

Timing Effects.

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.

FREQUENTLY USED TERMS

Structural Cost Savings (Non-GAAP)

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 $12.1 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.

Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels.

Estimates of cumulative annual structural cost savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels.

Structural cost savings are stewarded internally to support management’s oversight of spending over time.

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44.0 +4.0 +6.6 -12.1 42.5

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

FREQUENTLY USED TERMS

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Tax-related items — 238 238 184 (126) 58 — (1,415) (1,415)

Contractual provisions — — — — — — — (250) (250)

Other — — — — — — — 1,380 1,380

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1,670 1,002 2,672 1,594 431 2,025 2,328 1,215 3,543

FREQUENTLY USED TERMS

Specialty Products 2024 2023 2022

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Impairments (4) (8) (12) — (82) (82) — (40) (40)

Gain/(loss) on sale of assets — — — — — — 498 136 634

Tax-related items — (1) (1) 12 5 17 — — —

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1,580 1,485 3,065 1,524 1,283 2,807 1,190 1,265 2,455

FREQUENTLY USED TERMS

Corporate and Financing

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Tax-related items — 76 324

Severance charges — — (52)

Identified Items 30 76 302

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Tax-related items 409 348 (1,501)

Severance charges — — (52)

Contractual provisions — — (250)

Other — (175) 1,456

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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, 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.

Similarly, discussion of roadmaps or future plans related to carbon capture, transportation and storage, lower-emission fuels, hydrogen, ammonia, direct air capture, Proxxima TM systems, carbon materials, lithium 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, stable policy support and timely rule-making and permitting, and represent forward-looking statements.

Actual future results, including financial and operating performance;

earnings power;

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;

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

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 Permian Basin (1) 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 to meet ExxonMobil’s emission reduction plans and goals, 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 lower-emission fuels, produce Proxxima TM systems, produce carbon materials, produce lithium, and use plastic waste as feedstock for advanced recycling;

timely granting of governmental permits and certifications;

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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;

and planned Denbury Inc.

(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;

developments or changes in local, national, or international laws, regulations, taxes, trade sanctions, trade tariffs, or policies affecting our business, such as government policies supporting lower carbon and new market investment opportunities, 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;

actions of competitors and commercial counterparties;

actions of co-venturers, competitors and commercial counterparties;

the outcome of commercial negotiations, including final agreed terms and conditions;

the outcome of competitive bidding and project awards;

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;

the level and outcome of exploration projects and decisions to invest in future reserves;

timely completion of development and other construction projects;

the occurrence, pace, rate of recovery and effects of public health crises;

adoption of regulatory incentives consistent with law;

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

the level, outcome, and timing of exploration and development projects and decisions to invest in future reserves and resources;

timely completion of construction projects;

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

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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;

decoupling of economies, and disruptions in trade alliances and military alliances;

expropriations, seizure, or capacity, insurance, shipping, import 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;

the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies without impairing our competitive positioning;

unforeseen technical or operating difficulties and unplanned maintenance;

the development and competitiveness of alternative energy and emission reduction technologies;

consumer preferences including willingness and ability to pay for reduced emission products;

the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis;

and other factors discussed under Item 1A .

Risk Factors."

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.

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

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.

Third-party scenarios discussed in this report reflect the modeling assumptions and outputs of their respective authors, not ExxonMobil, and their

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

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

use by ExxonMobil is not an endorsement by ExxonMobil of their underlying assumptions, likelihood or probability.

Investment decisions are made on the basis of ExxonMobil’s separate planning process.

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.

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.

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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.

Current trends for policy stringency and development of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050.

As such, the Outlook does not 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 ExxonMobil’s business plans will be updated accordingly.

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 stable and 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;

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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, lower-emission fuels, and lithium.

and pursuit of lower-emission and other new business opportunities, including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima TM systems, carbon materials, and lithium.

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

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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 businesses are supported by centralized service-delivery groups, including Global Projects, Technology and Engineering, Global Operations and Sustainability, Global Trading, Supply Chain, and Global Business Solutions.

ExxonMobil, with its resource base, financial strength, disciplined investment approach and technology portfolio, is well-positioned to participate in substantial investments to develop new supplies of reliable and affordable lower-emission energy and other critical products.

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the scale and variety of energy needs worldwide;

capability, practicality and affordability of energy alternatives, including low-carbon solutions;

capability, practicality, and affordability of energy alternatives, including lower-carbon solutions;

greenhouse gas emission-reduction technologies;

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

Key unknowns include yet-to-be-developed government policies, market conditions, and advances in technology that may influence the cost, pace, and potential availability of certain pathways.

Key unknowns include yet-to-be-developed or changes in developed government policies, market conditions, and advances in technology that may influence the cost, pace, and potential availability of certain pathways.

Scenarios that employ a full complement of technology options are likely to provide the most economically efficient pathways.

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ExxonMobil 2024 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.

By 2050, the world’s population is projected to be around 9.7 billion people, or nearly 2 billion more than in 2023.

Coincident with this population increase, the Outlook projects worldwide economic growth to average approximately 2.5 percent per year, with economic output nearly doubling by 2050 compared to 2023.

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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This increase in energy demand is expected to be driven by developing countries (i.e., those that are not member nations of the Organization for Economic Co-operation and Development (OECD)).

By contrast, energy use in developed nations is expected to decline by more than 10 percent as efficiency improves.

As expanding prosperity drives global energy demand higher, increasing use of energy-efficient technologies and practices as well as lower-emission products will continue to help significantly reduce energy consumption and CO2 emissions per unit of economic output over time.

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 about 80 percent from 2021 to 2050, with developing countries likely to account for over 75 percent of the increase.

Under our Outlook, global electricity demand is expected to increase more than 75 percent from 2023 to 2050, with developing countries likely to account for approximately 80 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.

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From 2023 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 through 2050.

Total renewables are expected to reach about 50 percent of global electricity supplies by 2050.

Electricity from wind and solar is expected to increase more than 450 percent, helping total renewables (including other sources, e.g., hydropower) to account for approximately 90 percent of the increase in electricity supplies through 2050.

Total renewables are expected to reach over 50 percent of global electricity supplies by 2050.

Natural gas and nuclear are expected to be about 20 percent and 10 percent, respectively, of global electricity supplies by 2050.

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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.

Energy for transportation - including cars, trucks, ships, trains, and airplanes - is expected to increase by about 25 percent from 2023 to 2050.

Transportation energy demand is expected to account for about 60 percent of the growth in liquid fuels demand worldwide over this period.

By 2050, light-duty vehicles are expected to account for around 20 percent of global liquid fuels demand.

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Combined residential and commercial energy demand is projected to rise by around 15 percent through 2050.

Led by the growing economies of developing nations, average worldwide household electricity use will rise about 75 percent between 2021 and 2050.

Led by the growing economies of developing nations, average worldwide household electricity use is expected to rise more than 65 percent between 2023 and 2050.

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.

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these supplies will remain important, and significant development activity is expected to offset much of the natural declines from these fields.

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.

At the same time, a variety of supply sources - including tight oil, deepwater, oil sands, natural gas liquids, and biofuels - are expected to grow to help meet rising demand.

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.

Global natural gas demand is expected to rise more than 20 percent from 2023 to 2050, with approximately 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.

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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 two thirds 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 70 percent 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

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Total renewable energy is expected to exceed 20 percent of global energy by 2050, with other renewables (e.g., biomass, hydropower, geothermal) contributing a combined share of more than 10 percent.

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.

Decarbonization of industrial activities will require a suite of nascent or future lower-carbon technologies and supporting policies.

Total energy supplied from wind and solar is expected to increase rapidly, growing over 400 percent from 2023 to 2050, when they are projected to be nearly 12 percent of the world energy mix.

Decarbonization of industrial activities will require a suite of nascent or future lower-carbon technologies and stable 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.

Along with electrification, lower-emission fuels are expected to play an important role in decarbonization of the transportation sector, particularly in hard-to-decarbonize areas, such as aviation.

Low-carbon hydrogen will be a key enabler replacing traditional furnace fuel to decarbonize the industrial sector.

Hydrogen will be a key enabler replacing traditional furnace fuel to decarbonize the industrial sector.

Hydrogen and hydrogen-based fuels like ammonia are also expected to make inroads into commercial transportation as technology improves to lower its cost and policy develops to support the needed infrastructure development.

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311 “Likely below 2°C” scenarios used;

decline rates based on 10-yr Compound Annual Growth Rate (CAGR)

Projected global natural gas supply and demand

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311 “Likely below 2°C” scenarios used;

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.

decline rates based on 10-yr CAGR

Our Outlook projects that oil demand will remain above 100 million barrels per day to 2050.

Even under the average of IPCC Likely Below 2°C scenarios, oil demand still comes to 66 million barrels per day in 2050 – about two thirds of current consumption.

Our Outlook shows oil production declines at a rate of about 15 percent per year.

At that rate, in the absence of continued investment, by 2030 oil supplies would fall from 100 million barrels per day to less than 30 million barrels, more than 70 million barrels per day short of what is needed to meet demand.

Limiting investment to only existing fields would slow the decline to about 4 percent;

however, this would still be well below the oil demand in the IEA APS and average of IPCC Likely Below 2°C scenarios.

To meet projected demand, 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.

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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 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.

Our Outlook reflects an environment with increasingly stringent climate policies and seeks to identify potential impacts of these climate-related government policies, which often target specific sectors.

For purposes of the Outlook, a proxy cost on energy-related CO2 emissions is assumed, based on regional considerations and relative levels of economic development, and by 2050, reaches up to $150 per metric ton for OECD nations and up to $100 per metric ton for non-OECD nations.

China and other leading non-OECD nations are expected to trail OECD policy initiatives.

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 28 in Dubai in 2023, as well as other policy developments in light of net-zero ambitions formulated by some nations.

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 Nationally Determined Contributions (NDCs) that are submitted by nations that are signatories to the Paris Agreement, 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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Progress Reducing Emissions

The Corporation’s strategy seeks to maximize the advantages of our scale, business integration, leading technology, functional excellence, and our people to build globally competitive businesses that lead industry in earnings and cash flow growth across a range of future scenarios.

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 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.

The Corporation’s strategy seeks to maximize the advantages of our scale, business integration, leading technology, execution excellence, and our people to build globally competitive businesses that lead industry in earnings and cash flow growth across a range of future scenarios.

We strive to play a leading role, regardless of how an energy transition unfolds.

Across our portfolio of opportunities, we retain investment flexibility to maximize shareholder value.

With advancements in technology and clear, consistent, stable, and effective government policies, 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 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.

The roadmaps build on the Company’s 2030 emission-intensity reduction plans and, notably, include reaching net-zero Scope 1 and 2 emissions in our heritage Permian Basin (1) unconventional operated assets by 2030, and by 2035 for Pioneer assets.

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

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

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• 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.

Our emission-reduction plans and 2050 net-zero ambition cover Scope 1 and 2 emissions from assets we operate, which now include Pioneer and Denbury.

The Corporation plans to continue to pursue advantaged growth opportunities and 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.

At this early stage, stable and 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, lower-emission fuels, Proxxima TM systems, and carbon materials, as well as lithium to supply the global battery and electric vehicle markets.

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

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

The acquisition of Denbury expanded our capabilities in this area, providing ExxonMobil with the largest owned and operated network of CO2 pipelines in the United States, including more than 900 miles of pipelines and multiple CO2 storage sites near the largest industrial complexes on the Gulf Coast.

Combining Denbury’s assets and our experience we have created the largest CO2 network in the world which gives us a unique 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.

Stable 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.

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

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

Recent Business Environment

Prior to the COVID-19 pandemic, many companies in the industry invested below the levels needed to maintain or increase production capacity to meet anticipated demand.

During the COVID-19 pandemic, this decline in investments accelerated as industry revenue collapsed resulting in underinvestment and supply tightness as demand for petroleum and petrochemical products recovered.

In addition, industry rationalization of refining assets resulted in more than 3 million barrels per day of capacity being taken offline.

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.

During 2024, the price of crude oil remained near the middle of the pre-COVID 10-year range (2010-2019), as markets remained balanced.

Through the first nine months of the year, natural gas prices declined towards the middle of the 10-year range due to strong supply and lower demand.

In the fourth quarter, natural gas prices increased on rising demand driven by colder weather in the U.S.

Refining margins declined in 2024 from high 2023 levels as increased supply from industry capacity additions outpaced record global demand and remain near the bottom of the 10-year range.

Chemical margins improved slightly in 2024 but remained well below the 10-year range driven by over-supply, primarily in Asia.

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.

Inflation has trended down since 2023 as a result of aggressive monetary tightening by major central banks and slowing global economic growth.

However, there has been significant variation on the pace of change across OECD and non-OECD countries.

With inflation gradually approaching the official targets in the U.S.

and Eurozone, the Federal Reserve and the European Central Bank began lowering interest rates in 2024.

Meanwhile, China has been under persistent deflationary pressure since 2023.

The Corporation closely monitors market trends and works to mitigate both operating and capital cost impacts in all price environments.

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.

Organizational changes implemented over the past several years enabled the Corporation to capture $12.1 billion of structural cost savings (1) versus 2019, including $2.4 billion of savings during 2024, through increased operational efficiencies, workforce reductions, divestment-related reductions, and other cost-saving measures.

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

These savings are key drivers to further reduce our structural costs by $6 billion by 2030, thereby improving the earnings power of the Corporation.

(1) Refer to Frequently Used Terms for definition of structural cost savings.

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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.

Oil production from those operations is exported through the Caspian Pipeline Consortium (CPC), in which the Corporation holds a 7.5 percent interest.

Oil production from those operations is exported primarily through the Caspian Pipeline Consortium (CPC), in which the Corporation holds a 7.5 percent interest.

CPC traverses parts of Kazakhstan and Russia to tanker-loading facilities on the Russian coast of the Black Sea.

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For reference, after-tax earnings related to the Corporation’s interests in Kazakhstan in 2024 were approximately $1.9 billion, and its share of combined oil and gas production was approximately 260 thousand oil-equivalent barrels per day.

Additional European Taxes on the Energy Sector

On October 6, 2022, European Union (“EU”) Member States adopted an EU Council Regulation which, along with other measures, introduced a new tax described as an emergency intervention to address high energy prices.

This regulation imposed a mandatory tax on certain companies active in the crude petroleum, coal, natural gas, and refinery sectors.

The regulation required Member States to levy a minimum 33 percent tax on in-scope companies’ 2022 and/or 2023 “surplus profits", defined in the regulation as taxable profits exceeding 120 percent of the annual average profits during the 2018-2021 period.

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 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

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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’s competitive strengths enable the Upstream’s business strategy, which is focused on developing an industry-leading portfolio underpinned by advantaged growth projects, applying ExxonMobil’s technology to enhance value and improve development efficiency, and leveraging the unique capabilities of the Company's global projects organization to deliver projects on time and in line with budgets.

The Upstream capital program is focused on low cost-of-supply opportunities.

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.

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 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.

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

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

This proportion is generally expected to grow.

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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".

In 2024, crude and gas prices were within the pre-COVID 10-year historical range (2010-2019).

ExxonMobil believes prices over the long term will continue to be driven by market supply and demand, with the demand side largely being a function of general economic activities, levels of prosperity, technology advances, consumer preference, and government policies.

On the supply side, prices may be significantly impacted by political events, the actions of OPEC and other large government resource owners, alternative energy sources, and other factors.

On the supply side, prices may be significantly impacted by political events, the actions of OPEC or OPEC+ and other large government resource owners, alternative energy sources, and other factors.

Key Recent Events

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.

Liza Destiny, Liza Unity and Prosperity floating production, storage and offloading (FPSO) vessels continued to produce above investment basis capacity in 2024.

The combined gross production from the three operating vessels exceeded 615 thousand barrels of oil per day (kbd) in 2024 and exceeded 650 kbd in the fourth quarter of 2024.

Yellowtail, Uaru and Whiptail, the fourth, fifth and sixth developments on the Stabroek Block, respectively, are progressing on schedule and each has an investment basis capacity of approximately 250 kbd.

We announced plans for two additional developments and anticipate eight FPSO vessels will be in operation on the Stabroek Block by year-end 2030.

We are working with the government of Guyana to secure regulatory approvals for the seventh project.

ExxonMobil successfully closed the Pioneer Natural Resources Company (Pioneer) acquisition in May 2024, significantly increasing our Permian footprint.

Total production volumes averaged approximately 1,185 thousand oil-equivalent barrels per day (koebd) in 2024, approximately 570 koebd higher than the previous year.

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.

Examples include deploying ExxonMobil cube design and proprietary proppant as well as leading capabilities and technology in drilling and completions.

ExxonMobil remains on track to achieve industry-leading plans of Scope 1 and 2 net zero greenhouse gas emissions in the heritage Permian Basin (1) unconventional operated assets by 2030, and in Pioneer assets by 2035.

ExxonMobil expects to roughly double production in the Permian Basin to approximately 2.3 Moebd by 2030.

ExxonMobil continued work on LNG growth projects in 2024.

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.

Production commenced from two new gas wells in Papua New Guinea (PNG), marking completion of the Angore project and additional supply to support LNG export from the PNG LNG joint venture.

In Mozambique, the Rovuma LNG project began the front-end engineering and design stage in 2024, in support of a final investment decision in 2026, to develop the Area 4 offshore gas resources.

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

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

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

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

2023 Upstream Earnings Factor Analysis

2024 Upstream Earnings Driver Analysis

(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.

Price – Price impacts decreased earnings by $1,250 million, driven by lower gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged projects increased earnings by $3,760 million, as a result of record production in Permian, driven by the Pioneer acquisition and growth in the heritage Permian (2) , and record production in Guyana driven by the Prosperity FPSO start-up.

Base Volume – Divestments of non-strategic assets and entitlements decreased earnings by $820 million.

Structural Cost Savings – Increased earnings by $830 million.

Expenses – Higher expenses decreased earnings by $1,350 million, primarily from higher depreciation (non-cash).

Other – All other items increased earnings by $120 million, mainly driven by favorable impacts from divestments, partially offset by unfavorable tax and foreign exchange impacts.

Timing Effects – Less unfavorable timing effects from derivatives mark-to-market impacts increased earnings by $280 million.

Identified Items (1) – 2023 $(2,301) million loss primarily due to the impairment of the idled Santa Ynez Unit assets and associated facilities in California;

2024 $215 million gain mainly due to Argentina divestment, partly offset by Nigeria divestment and U.S.

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

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

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

2022 Upstream Earnings Factor Analysis

2023 Upstream Earnings Driver 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.

Volume/Mix – Volume and mix effects decreased earnings by $110 million.

The earnings benefit from volume growth in Guyana and the Permian was offset by the volume loss from divestments, the Russia expropriation, and other impacts including weather-related downtime.

Other – All other items decreased earnings by $880 million as strong cost control partly offset impacts from inflation and increased activity.

Identified Items (1) – 2021 $(543) million loss 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;

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.

Price – Lower realizations decreased earnings by $14,290 million, reflecting lower gas prices and crude price moderation resulting from increased inventory levels.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $1,270 million, driven by Guyana and Permian production.

Base Volume – Base volumes decreased earnings by $800 million as a results of divestments, the Russia expropriation, and higher government-mandated curtailments.

Structural Cost Savings – Increased earnings by $730 million.

Expenses – Higher expenses decreased earnings by $650 million, primarily on increased activity and depreciation.

Other – All other items increased earnings by $320 million, mainly driven by favorable foreign exchange effects.

Timing Effects – Unfavorable timing effects from derivatives mark-to-market impacts decreased earnings by $2,390 million.

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

Upstream Operational Results

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Canada/Other Americas 784 664 588

Europe 4 4 22

Africa 209 221 238

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

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

Upstream Additional Information

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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.

2024 versus 2023

2024 production of 4.3 million oil-equivalent barrels per day increased 595 thousand barrels per day from 2023.

Permian and Guyana production grew by 680 thousand oil-equivalent barrels per day, more than offsetting impacts from divestments and entitlements.

Excluding the impacts from entitlements, divestments, and government-mandated curtailments, net production grew by 685 thousand oil-equivalent barrels per day.

2023 versus 2022

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

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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

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.

Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining factors.

These factors consist of net interest changes specified in Production Sharing Contracts (PSCs), which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession.

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

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

Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining drivers.

These drivers consist of net interest changes specified in Production Sharing Contracts (PSCs), which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession.

Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.

Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining factors.

These factors include changes in oil and gas prices or spending levels from one period to another.

Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining drivers.

These drivers include changes in oil and gas prices or spending levels from one period to another.

According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil.

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These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas.

Such factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

Such drivers 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 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.

Growth and Other factors comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil.

Such factors include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.

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

Growth and Other drivers comprise all other operational and non-operational drivers not covered by the above definitions that may affect volumes attributable to ExxonMobil.

Such drivers include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.

Energy Products

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Prices for these commodities are determined by the global marketplace and are influenced by many factors, including global and regional supply/demand balances, inventory levels, industry refinery operations, import/export balances, currency fluctuations, seasonal demand, weather, and political considerations.

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.

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;

While industry refining margins significantly impact Energy Products earnings, strong operational performance, product mix optimization, and disciplined cost control are also critical to strong financial performance.

In 2024, refining margins decreased to the middle of the pre-COVID 10-year historical range (2010-2019) despite record demand, due to supply length.

Refining margins are expected to remain volatile with changes in global factors, including geopolitical developments;

demand growth;

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inventory levels;

and refining capacity utilizations, additions and rationalizations.

and refining capacity utilization, additions and rationalizations.

Key Recent Events

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:

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

Esso Thailand divestment:

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.

Progressed project with expected start-up in 2025 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 to help reduce greenhouse gas emissions.

Fawley Hydrofiner project :

Progressed project with expected start-up in 2025 at Fawley site to increase production of ultra-low sulfur diesel and reduce production of other products, including high-sulfur distillates.

Fos-sur-Mer Refinery divestment:

In October 2024, ExxonMobil divested the Fos refinery and select midstream assets in France.

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.

In October 2023, ExxonMobil reached an agreement to sell its interest in the MiRO refinery located in Karlsruhe, Germany.

The transaction is expected to close in 2025.

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

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United States (34) 192 (58)

113 (48) (626)

Total 79 144 (684)

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

2023 Energy Products Earnings Factor Analysis

2024 Energy Products Earnings Driver Analysis

(millions of dollars)

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.

Margin – Significantly weaker industry refining margins decreased earnings by $6,280 million.

Margins declined from historically high levels as increased supply from industry capacity additions outpaced record global demand.

Advantaged Volume Growth – Higher volumes from advantaged projects increased earnings by $140 million.

Base Volume – Lower base volumes decreased earnings by $1,240 million, driven by scheduled maintenance and divestments.

Structural Cost Savings – Increased earnings by $630 million.

Expenses – Higher expenses related to scheduled turnarounds and maintenance, and advantaged project spend decreased earnings by $970 million.

Other – All other items, mainly unfavorable tax and forex impacts, decreased earnings by $310 million.

Timing Effects – Decreased earnings by $10 million.

Identified Items (1) – 2023 $144 million gain driven by favorable tax effects partially offset by additional European taxes on the energy sector;

2024 $79 million gain.

(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 Energy Products Earnings Factor Analysis

2023 Energy Products Earnings Driver Analysis

(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.

Margin – Margins decreased earnings by $3,510 million, mainly driven by industry refining margins which declined from 2022 highs, partially offset by stronger marketing margins.

Advantaged Volume Growth – Higher volumes from advantaged projects, increased earnings by $480 million, mainly driven by the Beaumont expansion.

Base Volume – Lower base volumes decreased earnings by $560 million driven by higher planned maintenance and divestments, partially offset by improved reliability.

Structural Cost Savings – Increased earnings by $450 million.

Expenses – Higher expenses decreased earnings by $830 million, mainly driven by Beaumont project activities and planned maintenance costs.

Other – All other items decreased earnings by $10 million.

Timing Effects – Absence of unfavorable timing effects associated with derivatives increased earnings by $330 million.

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

2023 $144 million gain 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.

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

Energy Products Operational Results

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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

Chemical Products

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Chemical Products integration with refineries, performance product mix, and project execution capability improves returns on investments across a range of market environments.

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

In 2024, chemical industry margins remained bottom-of-cycle, below the pre-COVID 10-year historical range (2010-2019), as capacity additions from 2022-2024 have 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.

Our earnings benefited from record reliability, record high-value products sales, and a large North American footprint where low ethane prices provide a feed advantage.

Key Recent Events

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:

China Chemical Complex:

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.

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

Advanced Recycling:

ExxonMobil is combining proprietary technology and advantaged integrated sites to process hard-to-recycle plastic waste.

The Company’s first Baytown facility started up in 2022 and represents one of the largest advanced recycling facilities in North America.

ExxonMobil is expanding advanced recycling capacity with two additional Baytown units starting up during 2025.

The Company plans to build additional units to reach a global recycling capacity of 1 billion pounds per year by 2027.

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

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United States 1,627 1,626 2,328

11 1,215 3,292

Total 2,577 1,637 3,543

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

2023 Chemical Products Earnings Factor Analysis

2024 Chemical Products Earnings Driver Analysis

(millions of dollars)

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.

Margin – Improved company margins on North American ethane feed advantage and improved product realizations increased earnings by $890 million, despite continued bottom-of-cycle market conditions.

Advantaged Volume Growth – Record high-value product sales increased earnings by $410 million.

Base Volume – Portfolio optimization and product sales mix decreased earnings by $270 million.

Structural Cost Savings – Increased earnings by $190 million.

Expenses – Higher advantaged project spend and inflation effects decreased earnings by $490 million.

Other – All other items decreased earnings by $80 million.

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

2024 $(95) million loss 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

2022 Chemical Products Earnings Factor Analysis

2023 Chemical Products Earnings Driver Analysis

(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.

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

Advantaged Volume Growth – High-value product sales growth increased earnings by $210 million.

Base Volume – Reduced volumes from product sales mix decreased earnings by $360 million.

Structural Cost Savings – Increased earnings by $220 million.

Expenses – Higher project spend and scheduled maintenance costs decreased earnings by $690 million.

Other – All other items decreased earnings by $30 million.

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.

Chemical Products Operational Results

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

Proxxima TM Systems:

ExxonMobil's advanced polyolefin thermoset resin uses components of gasoline and catalyst technology to create a material that is lighter, stronger, and more durable than conventional products, providing alternatives for the construction, coatings and transportation industries.

These systems are designed to drive product substitutions in existing markets and enable expansion into new applications like structural composites and steel substitutes.

ExxonMobil plans to grow the manufacturing capacity of Proxxima TM products up to 200,000 tons per year by 2030.

Carbon Materials venture:

ExxonMobil is growing its carbon materials venture by applying proprietary process technology to capture attractive opportunities in the battery anode market.

The Company has developed an advanced coke product by converting low-value, bottom-of-the-barrel molecules that can deliver a higher performance differentiated graphite.

These carbon materials enable batteries that can provide up to 30 percent higher capacity, 30 percent faster charging time, and extended battery life.

Specialty Products Financial Results

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

2023 Specialty Products Earnings Factor Analysis

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

2024 Specialty Products Earnings Driver Analysis

(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.

Margin – Stronger basestocks and finished lubes margins increased earnings by $590 million.

Advantaged Volume Growth – High-value products volume growth increased earnings by $70 million.

Base Volume – Decreased earnings by $10 million.

Structural Cost Savings – Increased earnings by $130 million.

Expenses – Higher expenses including new product development costs, decreased earnings by $300 million.

Other – All other items decreased earnings by $220 million, mainly unfavorable foreign exchange effects and absence of prior year favorable year-end inventory effects.

Identified Items (1) – 2023 $(93) million loss mainly from impairments;

2024 $(13) million loss.

(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

2023 Specialty Products Earnings Driver Analysis

(millions of dollars)

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

Volume/Mix – Higher volumes increased earnings by $20 million on robust demand.

Other – All other items increased earnings by $30 million primarily as a result of positive year-end inventory effects, offset by increased expenses from higher maintenance and inflation, and unfavorable foreign exchange impacts.

Identified Items (1) – 2021 $634 million gain resulted from the Santoprene divestment;

2022 $(40) million loss from impairments.

Margin – Stronger margins increased earnings by $450 million, driven by high-value products and lower feed costs.

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

Base Volume – Base Volumes decreased earnings by $100 million on weaker global demand.

Structural Cost Savings – Increased earnings by $120 million.

Expenses – Higher expenses decreased earnings by $100 million.

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.

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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.

Low Carbon Solutions activities will be included in Corporate and Financing until the business is established with a material level of assets and revenue.

Corporate and Financing Financial Results

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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 $1,372 million in 2024 compared to $1,791 million in 2023, with the decrease mainly due to lower financing costs.

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.

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

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Total cash and cash equivalents (December 31) 23,187 31,568 29,665

Total cash and cash equivalents were $31.6 billion at the end of 2023, up $1.9 billion from the prior year.

The major sources of funds in 2023 were net income including noncontrolling interests of $37.4 billion, the adjustment for the noncash provision of $20.6 billion for depreciation and depletion, proceeds from asset sales of $4.1 billion, and other investing activities of $1.6 billion.

Total cash and cash equivalents were $23.2 billion at the end of 2024, down $8.4 billion from the prior year.

The major sources of funds in 2024 were net income including noncontrolling interests of $35.1 billion, the adjustment for the noncash provision of $23.4 billion for depreciation and depletion, proceeds from asset sales of $5.0 billion, other investing activities of $1.9 billion, and cash acquired from mergers and acquisitions of $0.8 billion.

The major uses of funds included spending for additions to property, plant and equipment of $24.3 billion;

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the purchase of ExxonMobil stock of $19.6 billion;

debt repayment of $5.9 billion;

additional investments and advances of $3.3 billion;

and a change in working capital of $4.3 billion.

and an increase in working capital of $1.8 billion.

Total cash and cash equivalents were $31.6 billion at the end of 2023, up $1.9 billion from the prior year.

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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.

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

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The Corporation’s cash flows are also highly dependent on crude oil and natural gas prices.

Please refer to "Item 1A.

Risk Factors" for a more complete discussion of risks.

Please refer to Item 1A for a more complete discussion of risks.

The Corporation’s financial strength enables it to make large, long-term capital expenditures.

Capital and exploration expenditures in 2023 were $26.3 billion, reflecting the Corporation’s continued active investment program.

The Corporation plans to invest in the range of $23 billion to $25 billion in 2024.

Cash Capex in 2024 was $25.6 billion, reflecting the Corporation’s continued active investment program, and includes plans to invest in the range of $27 billion to $29 billion in 2025 (see the Cash Capital Expenditures section for more details).

Actual spending could vary depending on the progress of individual projects and property acquisitions.

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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, cost synergies, potential for future growth, low cost of supply, and attractive valuations.

Key criteria for evaluating acquisitions include strategic fit, cost and other 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.

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The major source of funds was net income including noncontrolling interests of $35.1 billion, a decrease of $2.3 billion.

The noncash provision for depreciation and depletion was $23.4 billion, up $2.8 billion from the prior year.

The adjustment for the net gain on asset sales was $1.2 billion, an increase of $0.7 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was an increase of $0.2 billion, compared to an increase of $0.5 billion in 2023.

Changes in operational working capital, excluding cash and debt, decreased cash in 2024 by $1.8 billion.

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.

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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.

The major source of funds was net income including noncontrolling interests of $57.6 billion, an increase of $34.0 billion.

The noncash provision for depreciation and depletion was $24.0 billion, up $3.4 billion from the prior year.

The adjustment for the net gain on asset sales was $1.0 billion, a decrease of $0.2 billion.

The adjustment for dividends received less than equity in current earnings of equity companies was a reduction of $2.4 billion, compared to a reduction of $0.7 billion in 2021.

Changes in operational working capital, excluding cash and debt, decreased cash in 2022 by $0.2 billion.

Cash Flow from Investing Activities

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Proceeds from asset sales and returns of investments of $5.0 billion compared to $4.1 billion in 2023.

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.

Additional investments and advances were $0.3 billion higher in 2024, while proceeds from other investing activities including collection of advances increased by $0.4 billion.

Cash used in investing activities netted to $19.3 billion in 2023, $4.5 billion higher than 2022.

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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.

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.

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.

Cash used in financing activities was $42.8 billion in 2024, $8.5 billion higher than 2023.

Dividend payments on common shares increased to $3.84 per share from $3.68 per share and totaled $16.7 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.

During 2024, the Corporation utilized cash to repay debt of $5.9 billion.

During 2024, the Corporation continued its share repurchase program, including the purchase of 167 million shares at a book value of $19.1 billion in 2024.

In its 2024 Corporate Plan Update released December 11, 2024, the Corporation stated that it is expected to continue its share repurchase program with a $20 billion repurchase pace per year through 2026, 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.

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

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.

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

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.

During 2023, the 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.

Contractual Obligations

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Net debt to capital (1)

(1) Net debt is total debt less cash and cash equivalents excluding restricted cash.

Net debt to capital ratio is net debt divided by net debt plus total equity.

Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet.

Management views the Corporation’s financial strength to be a competitive advantage of strategic importance.

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 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.

The Corporation's total debt level remained relatively flat in 2024, ending the year at $41.7 billion.

Litigation and Other Contingencies

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Refer to Note 16 for additional information on legal proceedings and other contingencies.

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

CAPITAL AND EXPLORATION EXPENDITURES

Capital and exploration expenditures (Capex) represent the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Income.

Capital and exploration expenditures (Capex) represents the combined total of additions at cost to property, plant and equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Income.

ExxonMobil’s Capex includes its share of similar costs for equity companies.

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Other 851 — 851 622 — 622

Total 11,444 14,881 26,325 9,547 13,157 22,704

Total Capex 13,743 13,808 27,551 11,444 14,881 26,325

Capex in 2024 was $27.6 billion, as the Corporation continued to pursue opportunities to find and produce new supplies of oil and natural gas to meet global demand for energy.

Upstream spending of $21.8 billion in 2024 was up $2.1 billion from 2023, reflecting higher spend in the U.S.

Permian Basin following the Pioneer acquisition.

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 2024, and has been over 60 percent for the last ten years.

Capital investments in the three Product Solutions businesses totaled $4.9 billion in 2024, a decrease of $1.1 billion from 2023, reflecting lower global project spending.

Key investments in 2024 included the China petrochemical complex and Singapore Resid Upgrade project.

Other spend of $0.9 billion primarily reflects investments in the Low Carbon Solutions business to advance carbon capture and storage, lithium, and virtually carbon-free hydrogen (with approximately 98% of the carbon captured and stored) projects and technologies.

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

CASH CAPITAL EXPENDITURES (Non-GAAP)

The Corporation has transitioned to providing forward investment guidance on a cash capital expenditures (Cash Capex) basis instead of the historical capital and exploration expense (Capex) basis.

This approach is a useful measure for investors to understand the cash impact of investments in the business and is more aligned with standard industry practice.

Cash Capex is the sum of Additions to property, plant and equipment;

Additional investments and advances;

and Other investing activities including collection of advances;

reduced by Inflows from noncontrolling interests for major projects, each from the Consolidated Statement of Cash Flows.

The components of Cash Capex and a reconciliation to the previous Capex metric are presented in the following table:

(millions of dollars) 2024 2023

Capital and Exploration Expenditures (Capex) 27,551 26,325

ExxonMobil’s share of Capex for equity companies (2,546) (2,741)

Exploration expenses excluding prior year dry holes (755) (567)

Other activities including finance leases 56 (1,098)

Additions to property, plant and equipment 24,306 21,919

Additional investments and advances 3,299 2,995

Other investing activities including collection of advances (1,926) (1,562)

Inflows from noncontrolling interests for major projects (32) (124)

Total Cash Capex (Non-GAAP)

25,647 23,228

(millions of dollars) 2024 2023

Upstream 11,276 8,985 20,261 8,783 8,122 16,905

Energy Products 705 1,513 2,218 1,284 1,547 2,831

Chemical Products 671 1,212 1,883 718 1,702 2,420

Specialty Products 145 263 408 63 391 454

Other 877 — 877 618 — 618

Total Cash Capex (Non-GAAP)

13,674 11,973 25,647 11,466 11,762 23,228

Cash Capex in 2024 was $25.6 billion.

The Corporation plans to invest in the range of $27 billion to $29 billion in 2025.

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Actual spending could vary depending on the progress of individual projects and property acquisitions.

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

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 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.

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

(millions of dollars) 2024 2023 2022

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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.

This was flat compared to 2023.

Total other taxes and duties of $29.9 billion in 2024 decreased $2.3 billion from 2023.

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 compared to 31 percent in the prior year driven by impacts from additional European taxes on the energy sector.

Total other taxes and duties of $31.5 billion in 2022 decreased $1.5 billion.

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

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 was 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 from 2022.

ENVIRONMENTAL MATTERS

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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:

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

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;

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Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2024 worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $9.0 billion, of which $5.3 billion were included in expenses with the remainder in capital expenditures.

As the Corporation progresses its emission-reduction plans, worldwide environmental expenditures are expected to increase to approximately $9.7 billion in 2024, with capital expenditures expected to account for approximately 47 percent of the total.

Costs for 2025 are anticipated to increase to approximately $10.2 billion, with capital expenditures expected to account for approximately 51 percent of the total.

As the Corporation progresses its emission-reduction plans, worldwide environmental expenditures are expected to increase to approximately $12 billion annually in 2025 and 2026, with capital expenditures expected to account for approximately 55 percent of the total in each year.

Environmental Liabilities

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Consolidated company provisions made in 2024 for environmental liabilities were $277 million ($208 million in 2023), and the balance sheet reflects liabilities of $734 million as of December 31, 2024, and $701 million as of December 31, 2023.

Worldwide Average Realizations (1)

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

2024 2023 2022

Crude oil and NGL ($ per barrel) 69.85 87.25 61.89

Natural gas ($ per thousand cubic feet) 4.26 7.48 4.33

(1) Consolidated subsidiaries.

Brent ($ per barrel) 80.76 82.62 101.19

Henry Hub ($ per metric million British thermal unit) 2.27 2.74 6.65

TTF ($ per metric million British thermal unit) 10.77 15.15 40.22

(1) Markers reflect the average prices from the year.

Crude oil, natural gas, petroleum product, and chemical prices have fluctuated in response to changing market forces.

The impacts of these price fluctuations on earnings have varied across the Corporation's operating segments.

For the year 2024, a $1 per barrel change in the weighted-average realized price of oil would have approximately a $525 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

Similarly, a $0.10 per thousand cubic feet change in the worldwide average gas realization would have approximately a $130 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

For the year 2025, a $1 per barrel change in the Brent price would have an approximately $650 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

This Brent sensitivity includes oil-linked LNG sales which make up approximately 10 percent of the sensitivity.

A $0.10 per million metric British thermal unit change in the Henry Hub price would have an approximately $75 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

Similarly, a $0.10 per million metric British thermal unit change in the Title Transfer Facility (TTF) price would have an approximately $20 million annual after-tax effect on Upstream consolidated plus equity company earnings, excluding the impact of derivatives.

This TTF sensitivity primarily represents LNG sales.

These price markers have a direct impact on our realized prices.

For any given period, the extent of actual benefit or detriment will be dependent on the price movements of individual types of crude oil, results of trading activities, taxes and other government take impacts, price adjustment lags in long-term gas contracts, and crude and gas production volumes.

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Management views the Corporation’s financial strength as a competitive advantage.

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

In general, segment results are not dependent on the ability to sell and/or purchase products to/from other segments.

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Refer to Note 18 for additional information on intersegment revenue.

Although price levels of crude oil and natural gas may rise or fall significantly over the short to medium term due to global economic conditions, political events, decisions by OPEC and other major government resource owners and other factors, industry economics over the long term will continue to be driven by market supply and demand.

Although price levels of crude oil and natural gas may rise or fall significantly over the short to medium term due to global economic conditions, political events, decisions by OPEC or OPEC+ and other major government resource owners and other factors, industry economics over the long term will continue to be driven by market supply and demand.

The Corporation evaluates investments over a range of prices, including estimated greenhouse gas emission costs even in jurisdictions without a current greenhouse gas pricing policy.

The Corporation has an active asset management program in which nonstrategic assets are considered for divestment.

The asset management program includes a disciplined, regular review to ensure that assets are contributing to the Corporation’s strategic objectives.

The asset management program includes a disciplined, regular review to ensure assets are contributing to the Corporation’s strategic objectives.

Risk Management

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

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

The Corporation is exposed to changes in interest rates, primarily on its short-term debt and the portion of long-term debt that carries floating interest rates.

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The Corporation makes limited use of currency exchange contracts to mitigate the impact of changes in currency values, and exposures related to the Corporation’s use of these contracts are not material.

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

CRITICAL ACCOUNTING ESTIMATES

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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, lower-emission fuels and lithium.

and pursuit of lower-emission and other new business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima TM systems, carbon materials, and lithium.

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

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Oil and Natural Gas Reserves

The estimation of proved oil and natural gas reserve volumes is an ongoing process based on rigorous technical evaluations, commercial and market assessments, and detailed analysis of well information such as flow rates and reservoir pressure declines, development and production costs, and other factors.

The estimation of proved oil and natural gas reserve volumes is an ongoing process based on rigorous technical evaluations, commercial and market assessments, and detailed analysis of reservoir and well performance, development and production costs, and other factors.

The estimation of proved reserves is controlled by the Corporation through long-standing approval guidelines.

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Revisions can also result from significant changes in development strategy or production equipment and facility capacity.

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

Unit-of-Production Depreciation

Oil and natural gas reserve volumes are used as the basis to calculate unit-of-production depreciation rates for most upstream assets.

Depreciation is calculated by taking the ratio of asset cost to total proved reserves or proved developed reserves applied to actual production.

Acquisition costs of proved properties are depreciated using a ratio of asset cost to total proved reserves while capitalized drilling and developments costs are depreciated using a ratio of actual production volumes to proved developed reserves.

The volumes produced and asset cost are known, while proved reserves are based on estimates that are subject to some variability.

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To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of proved reserves, appropriately adjusted for production and technical changes.

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

Fair Value Used in Business Combinations

In accounting for business combinations, the purchase price paid to acquire a business is allocated to its assets and liabilities based on their respective estimated fair values as of the date of acquisition.

If applicable, any excess of the purchase price over the fair value is recorded as goodwill.

The assessment of fair value is based upon the views of a likely market participant group.

On May 3, 2024, the Corporation acquired Pioneer Natural Resources Company (Pioneer), an independent oil and gas exploration and production company.

To effect the acquisition, we issued 545 million shares of ExxonMobil common stock having a fair value of $63 billion on the acquisition date, and assumed debt with a fair value of $5 billion.

In respect of the Pioneer acquisition, the most significant amount of judgment involved the estimated fair values of property, plant and equipment related to crude oil and natural gas properties, for which we used discounted cash flow models.

Inputs and assumptions used in discounted cash flow models include estimates of future production volumes, commodity prices consistent with the average of third-party industry experts, drilling and development costs, and risk-adjusted discount rates.

The assumptions and inputs incorporated within the fair value estimates are subject to considerable management judgement and are based on industry, market, and economic conditions prevalent at the time of the acquisition.

Actual results may differ from the projected results used to determine fair value.

See N ote 21 for further information regarding the Pioneer acquisition during 2024.

The Corporation tests assets or groups of assets for recoverability on an ongoing basis whenever events or changes in circumstances indicate that the carrying amounts may not be recoverable.

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Consequently, these assets will experience periods of higher earnings and periods of lower earnings, or even losses.

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.

In assessing whether events or changes in circumstances indicate the carrying value of

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

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.

Global Outlook and Cash Flow Assessment.

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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 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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Inputs and assumptions used in discounted cash flow models include estimates of future production volumes, throughput and product sales volumes, commodity prices (which are consistent with the average of third-party industry experts and government agencies), refining and chemical margins, drilling and development costs, operating costs, and discount rates which are reflective of the characteristics of the asset group.

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

Other Impairment Estimates.

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Recent Impairments.

Impairments in 2024 were immaterial.

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.

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

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.

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(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.

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.

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See Note 9 for further information regarding asset retirement obligations.

Suspended Exploratory Well Costs

The Corporation continues capitalization of exploratory well costs when it has found a sufficient quantity of reserves to justify completion as a producing well and the Corporation is making sufficient progress assessing the reserves and the economic and operating viability of the project.

Exploratory well costs not meeting these criteria are charged to expense.

Assessing whether the Corporation is making sufficient progress on a project requires careful consideration of the facts and circumstances.

The facts and circumstances that support continued capitalization of suspended wells at year-end are disclosed in Note 10.

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

Pension Benefits

The Corporation and its affiliates sponsor about 70 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.

Note 17 provides details on pension obligations, fund assets, and pension expense.

Some of these plans (primarily non-U.S.) provide pension benefits that are paid directly by their sponsoring affiliates out of corporate cash flow rather than a separate pension fund because applicable tax rules and regulatory practices do not encourage advance funding.

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Such differences are deferred, along with other actuarial gains and losses, and are amortized into pension expense over the expected remaining service life of employees.

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

Litigation and Tax 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, 2024.

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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Chief Financial Officer

Vice President and Controller

Vice President, Controller and Tax

(Principal Accounting Officer)

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Basis for Opinions

The Corporation's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the accompanying Management’s Report on Internal Control Over Financial Reporting.

The Corporation's management is responsible for these consolidated financial statements, for maintaining effective internal control over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in Management’s Report on Internal Control over Financial Reporting appearing under Item 9A.

Our responsibility is to express opinions on the Corporation’s consolidated financial statements and on the Corporation's internal control over financial reporting based on our audits.

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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.

As described in Management’s Report on Internal Control over Financial Reporting, management has excluded Pioneer Natural Resources Company ("Pioneer") from its assessment of internal control over financial reporting as of December 31, 2024 because it was acquired by the Corporation in a business combination during 2024.

We have also excluded Pioneer from our audit of internal control over financial reporting.

Pioneer 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 nineteen percent and four percent, respectively, of the related consolidated financial statement amounts as of and for the year ended December 31, 2024.

Definition and Limitations of Internal Control over Financial Reporting

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Critical Audit Matters

The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

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 critical audit matters communicated below are matters arising from the current period audit of the consolidated financial statements that were communicated or required to be communicated to the audit committee and that (i) relate to accounts or disclosures that are material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments.

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 matters below, providing separate opinions on the critical audit matters or on the accounts or disclosures to which they relate.

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

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Costs incurred to purchase, lease, or otherwise acquire a property (whether unproved or proved) are capitalized when incurred.

As disclosed by management, proved oil and natural gas reserve volumes are used as the basis to calculate unit-of-production depreciation rates for most upstream assets.

The estimation of proved oil and natural gas reserve volumes is an ongoing process based on technical evaluations, commercial and market assessments, and detailed analysis of well information such as flow rates and reservoir pressure declines, development and production costs, among other factors.

As disclosed by management, oil and natural gas reserve volumes are used as the basis to calculate unit-of-production depreciation rates for most upstream assets.

Acquisition costs of proved properties are depreciated using a ratio of asset cost to total proved reserves while capitalized drilling and development costs are depreciated using a ratio of actual production volumes to proved developed reserves.

The estimation of proved oil and natural gas reserve volumes is an ongoing process based on technical evaluations, commercial and market assessments, and detailed analysis of reservoir and well performance, development and production costs, and other factors.

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 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.

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 reserves 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 reserves.

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 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.

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

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

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 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.

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;

and (iii) evaluating the specialists' findings related to future production volumes by comparing the future production volumes to relevant historical and current period production volumes, as applicable.

Merger with Pioneer - Valuation of Crude Oil and Natural Gas Properties

As described in Note 21 to the consolidated financial statements, the Corporation acquired Pioneer in a transaction accounted for as a business combination, requiring that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date, which included approximately $84 billion related to the fair values of acquired PP&E of which a significant portion relates to crude oil and natural gas properties.

Crude oil and natural gas properties were valued using discounted cash flow models.

Inputs and assumptions used in the discounted cash flow models included estimates for commodity prices, future production volumes, drilling and development costs, and risk-adjusted discount rates.

The principal considerations for our determination that performing procedures relating to the valuation of crude oil and natural gas properties acquired in the Pioneer merger is a critical audit matter are (i) the significant judgment by management, including the use of management’s specialists, when developing the fair value estimate of crude oil and natural gas properties acquired;

(ii) a high degree of auditor judgment, subjectivity, and effort in performing procedures and evaluating management’s significant assumptions related to commodity prices, future production volumes, drilling and development costs, and risk-adjusted discount rates;

and (iii) the audit effort involved the use of professionals with specialized skill and knowledge.

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 the acquisition accounting, including controls over management’s valuation of acquired crude oil and natural gas properties.

These procedures also included, among others (i) reading the merger agreement;

(ii) testing management’s process for developing the fair value estimate of crude oil and natural gas properties acquired;

(iii) evaluating the appropriateness of the discounted cash flow models;

(iv) testing the completeness and accuracy of underlying data used in the discounted cash flow models related to historical production volumes and third-party commodity prices;

and (v) evaluating the reasonableness of significant assumptions used by management related to commodity prices, future production volumes, drilling and development costs, and risk-adjusted discount rates.

Evaluating the

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

commodity prices assumptions involved comparing the prices to observable market data.

Evaluating management’s assumptions relating to future production volumes and drilling and development costs involved evaluating whether the assumptions used by management were reasonable as compared to historical results of Pioneer.

Professionals with specialized skill and knowledge were used to assist in evaluating the appropriateness of the discounted cash flow models and the reasonableness of the risk-adjusted discount rates assumptions.

The work of management’s specialists was used in performing the procedures to evaluate the reasonableness of the future production volumes used in the discounted cash flow models.

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 (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;

and (iii) evaluating the specialists’ findings related to future production volumes by comparing the future production volumes to relevant historical and current period production volumes, as applicable.

/s/ PricewaterhouseCoopers LLP

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Sales and other operating revenue 18

339,247 334,697 398,675

Income from equity affiliates 7

6,194 6,385 11,463

Other income 4,144 3,500 3,542

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Depreciation and depletion (includes impairments) 2 , 9

23,442 20,641 24,040

Exploration expenses, including dry holes 826 751 1,025

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Other taxes and duties 19

26,288 29,011 27,919

Total costs and other deductions 300,712 291,799 335,927

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Income tax expense (benefit) 19

13,810 15,429 20,176

Net income (loss) including noncontrolling interests 35,063 37,354 57,577

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Notes and accounts receivable – net 6

43,681 38,015

Crude oil, products and merchandise 3

19,444 20,528

Materials and supplies 4,080 4,592

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Investments, advances and long-term receivables 8

47,200 47,630

Property, plant and equipment, at cost, less accumulated depreciation and depletion 9

294,318 214,940

Other assets, including intangibles – net 19,967 17,138

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Accounts payable and accrued liabilities 6

61,297 58,037

Income taxes payable 4,055 3,189

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Long-term debt 14

36,755 37,483

Postretirement benefits reserves 17

Deferred income tax liabilities 19

39,042 24,452

Long-term obligations to equity companies 1,346 1,804

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Accumulated other comprehensive income 4

( 14,619 ) ( 11,989 )

Common stock held in treasury

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Depreciation and depletion (includes impairments) 2 , 9

23,442 20,641 24,040

Deferred income tax charges/(credits) 19

( 865 ) 634 3,758

Postretirement benefits expense in excess of/(less than) net payments ( 358 ) 90 ( 2,981 )

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Net (gain)/loss on asset sales 5

( 1,223 ) ( 513 ) ( 1,034 )

All other items - net 2,310 2,410 9

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Other investing activities including collection of advances 1,926 1,562 1,508

Cash acquired from mergers and acquisitions 754 — —

Net cash used in investing activities ( 19,938 ) ( 19,274 ) ( 14,742 )

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Changes in noncontrolling interests ( 791 ) ( 894 ) ( 1,493 )

Inflows from noncontrolling interests for major projects 32 124 18

Common stock acquired ( 19,629 ) ( 17,748 ) ( 15,155 )

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

Non-Cash Transaction:

The Corporation acquired Pioneer in an all-stock transaction on May 3, 2024, having issued 545 million shares of ExxonMobil common stock having a fair value of $ 63 billion on the acquisition date and assumed debt with a fair value of $ 5 billion.

See Note 21 for additional information.

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

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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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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, lower-emission fuels and lithium.

and pursuit of lower-emission and other new business opportunities including carbon capture and storage, hydrogen, lower-emission fuels, Proxxima TM systems, carbon materials, and lithium.

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

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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.

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Other Impairments Related to Property, Plant and Equipment.

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Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the Corporation.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Environmental Liabilities

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Crude oil, products, and merchandise as of year-end 2024 and 2023 consist of the following:

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

(millions of dollars) December 31, 2024 December 31, 2023

Crude oil 6,483 6,944

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ASC 832 "Government Assistance" requires disclosure of certain types of government assistance not otherwise covered by authoritative accounting guidance.

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.

During 2022 to 2024, 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 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.

In 2024 and 2023, such reimbursements were negligible as were any corresponding receivables associated with these programs.

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.

The terms and conditions of these programs, including their duration, vary by country.

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

In 2024, the Corporation completed the acquisition of Pioneer Natural Resources Company (Pioneer) through the issuance of 545 million shares of ExxonMobil common stock having a fair value of $ 63 billion on the acquisition date and assumed debt with a fair value of $ 5 billion.

Additional information is provided in Note 21 .

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.

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

Additional information is provided in Note 21 .

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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 2024, 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, Argentina, and Nigeria .

For 2023, the number includes before-tax amounts 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.

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Additional Working Capital Information

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

(millions of dollars) December 31, 2024 December 31, 2023

Notes and accounts receivable

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The Corporation has short-term committed lines of credit of $ 0.2 billion which were unused as of December 31, 2024.

These lines are available for general corporate purposes.

These lines of credit are available for general corporate purposes.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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The amortization of this difference, as appropriate, is included in “Income from equity affiliates” on the Consolidated Statement of Income.

Impairments related to Upstream equity investments of $ 0.6 billion, $ 0.6 billion, and $ 0.2 billion in 2023, 2022, and 2021, respectively, are included in “Income from equity affiliates” or “Other income” on the Consolidated Statement of Income.

Equity Company

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Tengizchevroil LLP 25

Terminale GNL Adriatico S.r.l.

Energy Products, Chemical Products, and/or Specialty Products

9 unchanged sentences

Investments, Advances and Long-Term Receivables

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

(millions of dollars) December 31, 2024 December 31, 2023

Equity method company investments and advances

17 unchanged sentences

In 2024, 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 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.

Before-tax impairment charges recognized during 2024 are immaterial.

In 2023, the Corporation recognized before-tax impairment charges of $ 3.3 billion, 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).

In 2022, the Corporation recognized before-tax impairment charges of $ 4.5 billion 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.

Impairment charges are primarily recognized in the lines “ Depreciation and depletion” and “Exploration expenses, including dry holes ” on the Consolidated Statement of Income.

53 unchanged sentences

Total 29 31 36

Of the 31 projects that have exploratory well costs capitalized for a period greater than one year as of December 31, 2023, 16 projects have drilling in the preceding year or exploratory activity planned in the next two years, while the remaining 15 projects are those with completed exploratory activity progressing toward development.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The table below provides additional detail for those 15 projects, which total $ 2,389 million.

Country/Project December 31, 2023 Years Wells Drilled / Acquired Comment

(millions of dollars)

Block 32 Central NE Hub

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

72 2014 Evaluating development plan to tie into planned infrastructure.

Gorgon Area Ullage

308 1994 - 2015 Evaluating development plans to tie into existing LNG facilities.

Hibernia North

25 2019 Awaiting capacity in existing/planned infrastructure.

178 2019 - 2022 Continuing discussions with the government regarding development plan.

53 2004 - 2007 Evaluating commercialization and field development alternatives, while continuing discussions with the government regarding the development plan.

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 Progressing development plan to tie into existing/planned infrastructure.

Papua New Guinea

246 2017 Evaluating/progressing development plans.

165 2017 - 2019 Evaluating/progressing development plans.

116 2012 - 2018 Evaluating/progressing development plans.

525 2012 - 2015 Evaluating development alternatives, while continuing discussions with the government regarding development plan.

296 2011 - 2015 Evaluating/progressing development plans.

Total 2023 ( 15 projects)

Of the 24 projects that have exploratory well costs capitalized for a period greater than one year as of December 31, 2024, 11 projects have drilling in the preceding year or exploratory activity planned in the next two years, while the remaining 13 projects are those with completed exploratory activity.

These projects are currently being progressed toward development, including evaluation to tie into existing infrastructure, awaiting capacity and aligning with the respective governments for development plans.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

51 unchanged sentences

Estimated cash payments for operating and finance leases not yet commenced are $ 248 million and $ 341 million for 2025 and 2026, respectively.

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

Operating leases not yet commenced primarily relate to LNG transportation vessels.

Finance leases not yet commenced primarily relate to a long-term processing agreement to upgrade residue to hydrogen.

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

9 unchanged sentences

In exchange for lease liabilities during the period 2,074 2,161 1,997 109 529 73

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Earnings Per Share

8 unchanged sentences

3.84 3.68 3.55

(1) Includes restricted shares not vested.

(1) Includes restricted shares not vested as well as 545 million shares issued for the Pioneer acquisition on May 3, 2024.

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

46 unchanged sentences

(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs.

The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.

(7) Included in the Balance Sheet line:

9 unchanged sentences

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 December 31, 2024 and 2023, or results of operations for 2024, 2023, and 2022.

During the fourth quarter of 2024, the Corporation initiated a program to hedge certain of its fixed-rate debt instruments against changes in fair value due to changes in the designated benchmark interest rate.

This program utilizes fair value hedge accounting.

The derivative (hedging) instruments are fixed-for-floating interest rate swaps, with settlement dates that correspond to the interest payments associated with the fixed-rate debt (hedged item).

Changes in the fair values of the hedging instruments are perfectly offset by changes in the fair values of the hedged items;

the effects of these changes in fair values are recorded in "Interest expense" in the Consolidated Statement of Income.

This program was not material to the Consolidated Financial Statements.

The Corporation intends to expand the use of this program in future periods.

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.

15 unchanged sentences

These amounts exclude that portion of long-term debt, totaling $ 4,892 million, which matures within one year and is included in current liabilities.

On December 22, 2022, the Company irrevocably deposited sufficient cash with the Trustee to fund (i) the redemption of its 2.726 % notes due 2023 and (ii) the redemption of its 1.571 % notes due 2023.

After the deposit of the funds, the Corporation was released from its obligation and the debt was extinguished.

The amounts of long-term debt, excluding finance lease obligations, maturing in each of the four years after December 31, 2025, in millions of dollars, are:

11 unchanged sentences

(millions of dollars, except where stated otherwise) Average

Dec 31, 2023 Dec 31, 2022

December 31, 2024 December 31, 2023

Exxon Mobil Corporation (2)(3)

14 unchanged sentences

3.452 % notes due 2051

4.327 % notes due 2050

3.452 % notes due 2051

Exxon Mobil Corporation - Euro-denominated

2 unchanged sentences

1.408 % notes due 2039

XTO Energy Inc.

2 unchanged sentences

6.375 % senior notes due 2038

Pioneer Natural Resources Company (5)

1.125 % senior notes due 2026

5.100 % senior notes due 2026

7.200 % senior notes due 2028

1.900 % senior notes due 2030

2.150 % senior notes due 2031

Parsley Energy LLC (6)

4.125 % senior notes due 2028

Industrial revenue bonds due 2025-2051 3.149 % 2,032 2,123

3 unchanged sentences

(1) Average effective or imputed interest rates at December 31, 2024.

(2) Includes impacts of hedge accounting of interest rate swaps.

(3) Includes premiums of $ 76 million in 2024 and $ 97 million in 2023.

(4) Includes premiums of $ 66 million in 2024 and $ 71 million in 2023.

(5) Includes net discounts of $ 348 million in 2024.

(6) Includes discounts of $ 7 million in 2024.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1 unchanged sentence

The 2003 Incentive Program provides for grants of stock options, stock appreciation rights (SARs), restricted stock, and other forms of awards.

Awards may be granted to eligible employees of the Corporation and those affiliates at least 50 percent owned.

Awards may be granted to eligible employees of the Company and those affiliates at least 50 percent owned by the Corporation.

Outstanding awards are subject to certain forfeiture provisions contained in the program or award instrument.

3 unchanged sentences

The 2003 Incentive Program does not have a specified term.

New awards may be made until the available shares are depleted, unless the Board terminates the plan early.

New awards may be made until the available shares are depleted, unless the ExxonMobil Board of Directors terminates the plan early.

At the end of 2024, remaining shares available for award under the 2003 Incentive Program were 47 million.

Restricted Stock and Restricted Stock Units.

Awards totaling 9,701 thousand, 9,392 thousand, and 8,133 thousand of restricted (nonvested) common stock units were granted in 2023, 2022, and 2021, respectively.

Awards of restricted (nonvested) common stock units granted under the 2003 Incentive Program totaled 10,393 thousand, 9,701 thousand, and 9,392 thousand in 2024, 2023, and 2022, respectively.

Compensation expense for these awards is based on the price of the stock at the date of grant and is recognized in income over the requisite service period.

5 unchanged sentences

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.

In accordance with the terms of the merger agreement for the Pioneer acquisition, which closed on May 3, 2024, awards of Pioneer restricted stock units granted under the Pioneer Amended and Restated 2006 Long Term Incentive Plan (Pioneer LTIP) that did not vest as of immediately prior to the closing were cancelled and converted into awards of ExxonMobil restricted stock units based on the merger exchange ratio.

The grant date for the converted Pioneer awards is considered to be the effective date of the acquisition for the purpose of calculating fair value.

Compensation costs for the converted Pioneer awards is recognized in income over a period commensurate with the vesting schedule.

Pioneer awards vest in three installments over a period of three years with approximately one third of the awards vesting each year.

Shares for these awards are issued to employees from treasury stock.

The units that are settled in cash are recorded as liabilities and their changes in fair value are recognized over the vesting period.

The maximum term of the Pioneer awards is three years .

As of the Pioneer acquisition closing on May 3, 2024, the maximum number of shares of stock that can be issued under the Pioneer LTIP was 9,458 thousand.

At the end of 2024, remaining shares available for awards under the Pioneer LTIP were 9,362 thousand.

The following tables summarize information about restricted stock and restricted stock units for the year ended December 31, 2024.

Restricted stock and units outstanding 2024

Shares Weighted-Average

Weighted-Average

Fair Value per Share

(thousands) (dollars)

Issued and outstanding at January 1 37,812 77.94

3 unchanged sentences

Issued and outstanding at December 31 39,595 85.29

Impacts of Pioneer awards incorporated in the totals above include 760 thousand awards issued in 2024, ( 67 ) thousand vested and ( 209 ) thousand forfeited.

Value of restricted stock units 2024 2023 2022

6 unchanged sentences

Total value 1,322 1,001 1,037

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

As of December 31, 2024, there was $ 2,588 million of unrecognized compensation cost related to the nonvested restricted awards.

4 unchanged sentences

Cash payments of $ 87 million, $ 79 million, and $ 89 million for vested restricted stock units settled in cash were made in 2024, 2023, and 2022, respectively.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Litigation and Other Contingencies

49 unchanged sentences

Accumulated benefit obligation at December 31 11,227 11,033 17,818 19,769 — —

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

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

(2) Benefit payments for funded and unfunded plans.

32 unchanged sentences

Total ( 1,755 ) ( 1,776 ) ( 1,820 ) ( 2,896 )

The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.

The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its Consolidated Balance Sheet and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.

Pension Benefits Other Postretirement Benefits

55 unchanged sentences

(Charge)/credit to income tax (see Note 4 )

( 208 ) 180 ( 1,236 )

(Charge)/credit to investment in equity companies 24 16 235

8 unchanged sentences

The target asset allocations for the major benefit plans range from 15 to 40 percent in equity securities and the remainder in fixed income securities.

The equity for the U.S.

and certain non-U.S.

plans include allocations to private equity partnerships that primarily focus on early-stage venture capital of less than 5 percent.

The equity allocation for the U.S.

plan includes a target allocation of 10 percent to limited partnerships that focus on the venture capital, growth and buyout sectors of the private equity market.

Certain non-U.S.

plans include small allocations to private equity partnerships that primarily focus on early-stage venture capital.

The fair value measurement levels are accounting terms that refer to different methods of valuing assets.

20 unchanged sentences

Cash — — — 113 113 78 6 (4) — 69 153

Other — 14 — — 14 — — — — —

Total at fair value — 1,577 — 9,665 11,242 198 208 — 16,957 17,363

38 unchanged sentences

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

Other — — — — — — — — 4 4

Real Estate — — — — — — — — 70 70

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

51 unchanged sentences

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.

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

The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment and reflect the nature of internal reviews by our Management Committee (MC).

The MC is considered collectively, and not in their individual capacity, to be our Chief Operating Decision Maker (CODM), and includes our CEO, CFO, and two Senior Vice Presidents serving as contact executives overseeing the Upstream and Product Solutions businesses.

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

Product Solutions consists of the Energy Products, Chemical Products, and Specialty Products segments, which are organized to manufacture and sell petroleum products and petrochemicals.

• Energy Products:

4 unchanged sentences

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

Earnings after income tax include transfers at estimated market prices.

The CODM generally allocates resources through an annual planning process.

They also allocate capital based on detailed project economics and long-term strategic objectives across reportable segments.

The CODM primarily uses changes in Net income (loss) attributable to ExxonMobil to assess segment financial performance.

Net income (loss) attributable to ExxonMobil includes transfers at estimated market prices.

In Corporate and Financing, interest revenue relates to interest earned on cash deposits and marketable securities.

1 unchanged sentence

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Corporate Total

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2024

Earnings (loss) after income tax 4,202 17,106 6,123 6,019 1,626 11 1,536 1,178 ( 1,791 ) 36,010

Earnings of equity companies included above 63 5,550 140 131 126 761 — ( 25 ) ( 361 ) 6,385

Revenues and other income

Sales and other operating revenue 22,929 14,202 101,325 159,531 8,558 14,338 5,790 12,463 339,136

Income from equity affiliates ( 36 ) 5,649 140 ( 109 ) 166 615 — ( 26 ) 6,399

Intersegment revenue 24,633 41,809 23,626 26,034 7,329 3,893 2,462 573 130,359

Depreciation and depletion expense 8,863 7,737 765 797 605 706 93 222 853 20,641

Interest revenue — — — — — — — — 1,628 1,628

Other income 890 670 295 192 5 7 22 116 2,197

Segment revenues and other income 48,416 62,330 125,386 185,648 16,058 18,853 8,274 13,126 478,091

Costs and other items

Crude oil and product purchases 18,325 10,388 110,205 153,811 8,510 12,621 4,160 8,753 326,773

Operating expenses, excl.

depreciation and depletion (1)

9,822 10,695 8,034 8,924 4,781 4,419 1,931 2,316 50,922

Depreciation and depletion (includes impairments) 11,510 8,014 799 734 611 485 104 133 22,390

Interest expense 185 82 9 10 1 1 — 3 291

Other taxes and duties 334 2,750 3,421 19,699 68 78 7 185 26,542

Total costs and other deductions 40,176 31,929 122,468 183,178 13,971 17,604 6,202 11,390 426,918

Segment income (loss) before income taxes 8,240 30,401 2,918 2,470 2,087 1,249 2,072 1,736 51,173

Income tax expense (benefit) 1,814 10,622 631 164 460 262 494 243 14,690

Segment net income (loss) incl.

noncontrolling interests 6,426 19,779 2,287 2,306 1,627 987 1,578 1,493 36,483

Net income (loss) attributable to noncontrolling interests — 815 188 372 — 37 2 17 1,431

Segment net income (loss) 6,426 18,964 2,099 1,934 1,627 950 1,576 1,476 35,052

Reconciliation of consolidated revenues

Segment revenues and other income 478,091

Other revenues (2)

Elimination of intersegment revenues ( 130,359 )

Total consolidated revenues and other income 349,585

Reconciliation of income (loss) attributable to ExxonMobil

Total segment net income (loss) 35,052

Corporate and Financing income (loss) ( 1,372 )

Net income (loss) attributable to ExxonMobil 33,680

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2024

Additions to property, plant and equipment (3)

94,649 8,371 589 1,450 474 1,161 230 227 107,151

Investments in equity companies 4,884 21,396 444 915 3,016 2,649 — 814 34,118

Total assets 154,914 134,609 32,143 43,399 17,445 17,692 2,882 8,040 411,124

Reconciliation to Corporate Total Segment Total Corporate and Financing Corporate Total

Additions to property, plant and equipment (3)

107,151 2,181 109,332

Investments in equity companies 34,118 ( 108 ) 34,010

Total assets 411,124 42,351 453,475

(1) Operating expenses, excl.

depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement:

Production and manufacturing expenses;

Selling, general and administrative expenses;

Exploration expenses, including dry holes;

and Non-service pension and postretirement benefit expense.

(2) Primarily Corporate and Financing Interest revenue of $ 1,600 million.

(3) Includes non-cash additions.

See Note 21 for additions resulting from the Pioneer acquisition in 2024.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2023

Earnings (loss) after income tax 11,728 24,751 8,340 6,626 2,328 1,215 1,190 1,225 ( 1,663 ) 55,740

Earnings of equity companies included above 411 10,133 126 322 91 771 — ( 23 ) ( 368 ) 11,463

Revenues and other income

Sales and other operating revenue 9,500 16,074 103,868 164,515 7,951 14,314 6,044 12,363 334,629

Income from equity affiliates 63 5,550 140 131 126 761 — ( 25 ) 6,746

Intersegment revenue 20,971 38,982 23,481 28,258 7,991 3,643 2,570 555 126,451

Depreciation and depletion expense 5,791 14,013 741 1,246 542 446 95 193 973 24,040

Interest revenue — — — — — — — — 446 446

Other income 631 466 183 87 6 12 19 139 1,543

Segment revenues and other income 31,165 61,072 127,672 192,991 16,074 18,730 8,633 13,032 469,369

Costs and other items

Crude oil and product purchases 9,945 11,279 107,796 152,487 8,824 13,096 4,718 8,955 317,100

Operating expenses, excl.

depreciation and depletion (1)

6,696 10,960 7,851 9,434 4,560 4,643 1,822 2,238 48,204

Depreciation and depletion (includes impairments) 8,863 7,737 765 797 605 706 93 222 19,788

Interest expense 82 74 4 7 2 2 — 2 173

Other taxes and duties 361 2,684 3,421 22,226 61 78 6 174 29,011

Total costs and other deductions 25,947 32,734 119,837 184,951 14,052 18,525 6,639 11,591 414,276

Segment income (loss) before income taxes 5,218 28,338 7,835 8,040 2,022 205 1,994 1,441 55,093

Income tax expense (benefit) 1,016 10,593 1,543 1,492 396 158 458 235 15,891

Segment net income (loss) incl.

noncontrolling interests 4,202 17,745 6,292 6,548 1,626 47 1,536 1,206 39,202

Net income (loss) attributable to noncontrolling interests — 639 169 529 — 36 — 28 1,401

Segment net income (loss) 4,202 17,106 6,123 6,019 1,626 11 1,536 1,178 37,801

Reconciliation of consolidated revenues

Segment revenues and other income 469,369

Other revenues (2)

Elimination of intersegment revenues ( 126,451 )

Total consolidated revenues and other income 344,582

Reconciliation of income (loss) attributable to ExxonMobil

Total segment net income (loss) 37,801

Corporate and Financing income (loss) ( 1,791 )

Net income (loss) attributable to ExxonMobil 36,010

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2023

Additions to property, plant and equipment (3)

10,372 8,217 1,106 1,455 600 1,775 81 370 23,976

Investments in equity companies 4,436 21,485 406 1,135 3,086 2,700 — 952 34,200

Total assets 67,452 138,914 32,123 42,337 17,599 17,076 2,620 8,379 326,500

Reconciliation to Corporate Total Segment Total Corporate and Financing Corporate Total

Additions to property, plant and equipment (3)

23,976 5,062 29,038

Investments in equity companies 34,200 ( 120 ) 34,080

Total assets 326,500 49,817 376,317

(1) Operating expenses, excl.

depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement:

Production and manufacturing expenses;

Selling, general and administrative expenses;

Exploration expenses, including dry holes;

and Non-service pension and postretirement benefit expense.

(2) Primarily Corporate and Financing Interest revenue of $ 1,628 million.

(3) Includes non-cash additions.

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2022

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

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

Revenues and other income

Sales and other operating revenue 14,579 30,585 117,824 188,153 10,670 16,949 6,152 13,727 398,639

Income from equity affiliates 411 10,133 126 322 91 771 — ( 23 ) 11,831

Intersegment revenue 25,658 46,076 29,001 36,894 9,081 5,201 2,587 825 155,323

Depreciation and depletion expense 6,831 9,918 700 1,036 505 450 97 195 875 20,607

Interest revenue — — — — — — — — 33 33

Other income 449 1,504 184 208 39 30 25 112 2,551

Segment revenues and other income 41,097 88,298 147,135 225,577 19,881 22,951 8,764 14,641 568,344

Costs and other items

Crude oil and product purchases 12,786 20,770 123,675 182,293 11,551 15,847 5,112 10,384 382,418

Operating expenses, excl.

depreciation and depletion (1)

6,693 12,723 8,373 12,092 4,900 5,022 2,028 2,388 54,219

Depreciation and depletion (includes impairments) 5,791 14,013 741 1,246 542 446 95 193 23,067

Interest expense 51 38 1 7 — 1 — 1 99

Other taxes and duties 718 3,559 3,306 20,040 40 79 5 172 27,919

Total costs and other deductions 26,039 51,103 136,096 215,678 17,033 21,395 7,240 13,138 487,722

Segment income (loss) before income taxes 15,058 37,195 11,039 9,899 2,848 1,556 1,524 1,503 80,622

Income tax expense (benefit) 3,330 11,575 2,615 2,420 520 292 334 252 21,338

Segment net income (loss) incl.

noncontrolling interests 11,728 25,620 8,424 7,479 2,328 1,264 1,190 1,251 59,284

Net income (loss) attributable to noncontrolling interests — 869 84 853 — 49 — 26 1,881

Segment net income (loss) 11,728 24,751 8,340 6,626 2,328 1,215 1,190 1,225 57,403

Reconciliation of consolidated revenues

Segment revenues and other income 568,344

Other revenues (2)

Elimination of intersegment revenues ( 155,323 )

Total consolidated revenues and other income 413,680

Reconciliation of income (loss) attributable to ExxonMobil

Total segment net income (loss) 57,403

Corporate and Financing income (loss) ( 1,663 )

Net income (loss) attributable to ExxonMobil 55,740

(millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total

As of December 31, 2022

Additions to property, plant and equipment (3)

5,940 6,441 1,141 964 1,026 1,692 37 200 17,441

Investments in equity companies 4,893 21,502 368 1,154 3,124 2,417 — 1,177 34,635

Total assets 66,695 139,764 31,729 41,836 17,342 15,875 2,839 8,316 324,396

Reconciliation to Corporate Total Segment Total Corporate and Financing Corporate Total

Additions to property, plant and equipment (3)

17,441 897 18,338

Investments in equity companies 34,635 ( 113 ) 34,522

Total assets 324,396 44,671 369,067

(1) Operating expenses, excl.

depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement:

Production and manufacturing expenses;

Selling, general and administrative expenses;

Exploration expenses, including dry holes;

and Non-service pension and postretirement benefit expense.

(2) Primarily Corporate and Financing Interest revenue of $ 446 million.

(3) Includes non-cash additions.

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

22 unchanged sentences

France 13,743 14,803 17,727

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.

11 unchanged sentences

Singapore 12,621 12,490 11,972

Australia 11,212 11,372 12,988

Guyana 12,414 9,689 6,766

Kazakhstan 7,728 8,172 8,463

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

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

Brazil 4,203 3,649 4,337

China 3,669 2,350 984

Nigeria 3,319 4,090 5,235

Russia — — 4,055

Australia 9,818 11,212 11,372

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

18 unchanged sentences

Total 8,920 34,784 43,704 8,852 38,768 47,620 12,086 39,545 51,631

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.

The above provisions for deferred income taxes include net benefits of $ 28 million in 2024, and net expenses of $ 24 million and $ 30 million in 2023 and 2022, respectively, related to changes in tax laws and rates.

Additional European Taxes on the Energy Sector.

1 unchanged sentence

This regulation imposed a mandatory tax on certain companies active in the crude petroleum, coal, natural gas, and refinery sectors.

The regulation required EU Member States to levy a minimum 33 percent tax on in-scope companies’ 2022 and/or 2023 “surplus profits", defined in the regulation as taxable profits exceeding 120 percent of the annual average profits during the 2018-2021 period.

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

The enactment of these regulations by EU 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

11 unchanged sentences

State taxes, net of federal tax benefit 314 57 601

( 259 ) ( 769 ) ( 705 )

Other ( 452 ) ( 259 ) ( 769 )

Total income tax expense (credit) 13,810 15,429 20,176

6 unchanged sentences

Effective income tax rate 33 % 33 % 33 %

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

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

13 unchanged sentences

Net deferred tax liabilities 35,106 20,815

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.

In 2024, asset valuation allowances of $ 2,516 million decreased by $ 125 million and included net provisions of $ 41 million and foreign currency and other net benefits of $ 166 million.

Balance sheet classification

25 unchanged sentences

Balance at December 31 4,035 3,935 3,398

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.

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

Unfavorable resolution of these tax positions generally would not increase the effective tax rate.

The 2024, 2023, and 2022 changes in unrecognized tax benefits did not have a material effect on the Corporation’s net income.

Resolution of these tax positions through negotiations with the relevant tax authorities or through litigation will take many years to complete.

Resolution of these tax positions through negotiations with the relevant tax authorities or through litigation may take many years to complete.

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.

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

Unlike 2022, during which litigation resolved certain unrecognized tax benefit positions, there was no major resolution of unrecognized tax benefit positions in 2023 or 2024.

The Corporation has various U.S.

federal income tax positions at issue with the Internal Revenue Service (IRS) for tax years beginning in 2010.

Unfavorable resolution of these issues would not have a material adverse effect on the Corporation’s operations or financial condition.

federal income tax positions at issue with the Internal Revenue Service for tax years beginning with 2010.

Unfavorable resolution of these issues would not have a materially adverse effect on the Corporation’s net income or liquidity.

It is reasonably possible that the total amount of unrecognized tax benefits could increase by up to 20 percent or decrease by up to 30 percent in the next 12 months.

1 unchanged sentence

Country of Operation Open Tax Years

Australia 2010 — 2023

Belgium 2020 — 2023

Canada 2001 — 2024

10 unchanged sentences

In 2024, the Corporation realized proceeds of approximately $ 5.0 billion and recognized net after-tax earnings of approximately $ 1.0 billion from its divestment activities.

This included the sale of the Santa Ynez Unit and associated facilities in California, Mobil Producing Nigeria Unlimited, ExxonMobil Exploration Argentina, the Fos-sur-Mer Refinery (France), the Adriatic LNG terminal (Italy), and certain conventional and unconventional assets in the United States, 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 the Aera Energy joint venture, Esso Thailand Ltd., the Billings Refinery, certain unconventional assets in the United States, as well as other smaller divestments.

1 unchanged sentence

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

The agreement is subject to certain conditions precedent and government approvals.

In early July 2022, a Nigerian court issued an order to halt transition activities and enter into arbitration with the Nigerian National Petroleum Company.

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

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

Pioneer Natural Resources Company

On May 3, 2024, the Corporation acquired Pioneer, an independent oil and gas exploration and production company.

In connection with the acquisition, we issued 545 million shares of ExxonMobil common stock having a fair value of $ 63 billion on the acquisition date, and assumed debt with a fair value of $ 5 billion.

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 provisional fair values of the assets acquired and liabilities assumed.

(billions of dollars) Pioneer

Current assets (1)

Other non-current assets 1

Property, plant & equipment (2)

Total identifiable assets acquired 88

Current liabilities (1)

Long-term debt (3)

Deferred income tax liabilities (4)

Other non-current liabilities 2

Total liabilities assumed 26

Net identifiable assets acquired 62

Net assets (6)

(1) Current assets and current liabilities consist primarily of accounts receivable and payable, with their respective fair values approximating historical values given their short-term duration, expectation of insignificant bad debt expense, and our credit rating.

(2) Property, plant and equipment, of which a significant portion relates to crude oil and natural gas properties, was primarily valued using the income approach.

Significant inputs and assumptions used in the income approach included estimates for commodity prices, future oil and gas production volumes, drilling and development costs, and risk-adjusted discount rates.

Collectively, these inputs are level 3 inputs.

(3) Long-term debt was valued using market prices as of the acquisition date, which reflects the use of level 1 inputs.

(4) Deferred income taxes represent the tax effects of differences in the tax basis and acquisition date fair values of assets acquired and liabilities assumed.

(5) Goodwill was allocated to the Upstream segment.

(6) Provisional fair value measurements were made for assets acquired and liabilities assumed.

Adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as we continue to evaluate the information necessary to complete the analysis.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

Debt Assumed in the Merger

The following table presents long-term debt assumed at closing:

(millions of dollars)

Par Value Fair Value

as of May 2, 2024

0.250 % Convertible Senior Notes due May 2025 (1)

1.125 % Senior Notes due January 2026

5.100 % Senior Notes due March 2026

7.200 % Senior Notes due January 2028

4.125 % Senior Notes due February 2028

1.900 % Senior Notes due August 2030

2.150 % Senior Notes due January 2031

(1) In June 2024, the Corporation redeemed in full all of the Convertible Senior Notes assumed from Pioneer for an amount consistent with the acquisition date fair value.

Actual and Pro Forma Impact of Merger

The following table presents revenues and earnings included in the Consolidated Statement of Income for Pioneer since the acquisition date (May 3, 2024) through December 31, 2024:

(millions of dollars)

Twelve Months Ended December 31, 2024

Sales and other operating revenues 17,008

Net income (loss) attributable to ExxonMobil 1,710

The following table presents unaudited pro forma information for the Corporation as if the merger with Pioneer had occurred at the beginning of January 1, 2023:

(millions of dollars)

Twelve Months Ended December 31,

Sales and other operating revenues 347,406 358,014

Net income (loss) attributable to ExxonMobil 34,476 39,211

The historical financial information was adjusted to give effect to the pro forma events that were directly attributable to the merger and factually supportable.

The unaudited pro forma consolidated results are not necessarily indicative of what the consolidated results of operations actually would have been had the merger been completed on January 1, 2023.

In addition, the unaudited pro forma consolidated results reflect pro forma adjustments primarily related to conforming Pioneer's accounting policies to ExxonMobil, additional depreciation expense related to the fair value adjustment of the acquired property, plant and equipment, our capital structure, Pioneer's transaction-related costs, and applicable income tax impacts of the pro forma adjustments.

Our transaction costs to effect the acquisition were immaterial.

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

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.

The acquisition also included Gulf Coast and Rocky Mountain oil and natural gas operations.

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.

1 unchanged sentence

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

(billions of dollars)

(billions of dollars) Denbury

Current assets 0.4

9 unchanged sentences

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)

125 unchanged sentences

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 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 consolidated costs incurred in 2024 were $105,094 million, up $84,142 million from 2023, due primarily to the Pioneer acquisition and higher development costs.

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

Total equity company costs incurred in 2024 were $1,134 million, down $376 million from 2023, due to lower development costs.

46 unchanged sentences

In some cases, substantial new investments in additional wells and related facilities will be required to recover these proved reserves.

In accordance with the Securities and Exchange Commission’s (SEC) rules, the Corporation’s year-end reserves volumes as well as the reserves change categories shown in the following tables are required to be calculated on the basis of average prices during the 12-month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period.

In accordance with the Securities and Exchange Commission’s (SEC) rules, the Corporation’s year-end reserves volumes, as well as the reserves change categories shown in the following tables, are required to be calculated on the basis of average prices during the 12-month period prior to the ending date of the period covered by this report, determined as an unweighted arithmetic average of the first-day-of-the-month price for each month within such period.

These reserves quantities are also used in calculating unit-of-production depreciation rates and in calculating the standardized measure of discounted net cash flows.

16 unchanged sentences

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 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.

The changes between 2024 year-end proved reserves and 2023 year-end proved reserves include worldwide production of 1.6 billion oil-equivalent barrels (GOEB) and asset sales of 0.1 GOEB primarily in Nigeria.

Additions to proved reserves include 2.3 GOEB related to the Pioneer acquisition, 1.9 GOEB from extensions and discoveries primarily in the United States and Guyana, and net revisions of 0.6 GOEB primarily attributed to the United Arab Emirates, United States, Canada, and Guyana.

The changes between 2023 year-end proved reserves and 2022 year-end proved reserves include worldwide production of 1.4 billion 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.

1 unchanged sentence

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.

The changes between 2021 year-end proved reserves and 2020 year-end proved reserves reflect upward revisions of 2.4 billion barrels of bitumen at Kearl and 0.5 billion barrels of bitumen at Cold Lake, primarily as a result of improved prices.

In addition, extensions and discoveries of approximately 1.3 GOEB occurred primarily in the United States (0.9 GOEB), Brazil (0.2 GOEB) and Guyana (0.1 GOEB).

Worldwide production in 2021 was 1.4 GOEB.

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

10 unchanged sentences

Revisions (1)

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

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

19 unchanged sentences

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.

Net proved developed and undeveloped reserves of consolidated subsidiaries

2 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)

67 unchanged sentences

(1) See previous pages for natural gas liquids proved reserves attributable to consolidated subsidiaries and equity companies.

For additional information on natural gas liquids proved reserves see "Item 2.

Properties" in ExxonMobil’s 2023 Form 10-K.

For additional information on natural gas liquids proved reserves, see Item 2 in ExxonMobil’s 2024 Form 10-K.

Natural Gas and Oil-Equivalent Proved Reserves

10 unchanged sentences

Revisions (2)

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

Improved recovery — — — — — — — —

23 unchanged sentences

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

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

Improved recovery — — — — — — — —

213 unchanged sentences

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.*

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 2023).*

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).*

10(iii )(b.4)

Pioneer Natural Resources Company Second Amended and Restated 2006 Long-Term Incentive Plan (incorporated by reference to Exhibit 10(iii)(b.4) to the Registrant’s Report on Form 10-Q for the quarter ended June 30, 2024).*

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.*

ExxonMobil Additional Payments Plan (incorporated by reference to Exhibit 10(iii)(c.3) to the Registrant’s Annual Report on Form 10-K for 2023).*

ExxonMobil Executive Life Insurance and Death Benefit Plan (incorporated by reference to Exhibit 10(iii)(d) to the Registrant’s Annual Report on Form 10-K for 2016).*

2 unchanged sentences

Form of restricted stock grant letter for non-employee directors.*

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).*

Standing resolution for non-employee director cash fees dated March 1, 2020, as amended effective July 29, 2024 (incorporated by reference to Exhibit 10(iii)(f.4) to the Registrant’s Report on Form 10-Q for the quarter ended September 30, 2024).*

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).

Code of Ethics and Business Conduct.

Insider Trading Policy.

Subsidiaries of the registrant.

6 unchanged sentences

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

Policy Relating to Recovery of Erroneously Awarded Compensation.

Policy Relating to Recovery of Erroneously Awarded Compensation (incorporated by reference to Exhibit 97 to the Registrant’s Annual Report on Form 10-K for 2023).

101 Interactive data files (formatted as Inline XBRL).

1 unchanged sentence

* 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.

6 unchanged sentences

POWER OF ATTORNEY

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

Parsons, Brian J.

Each person whose signature appears below constitutes and appoints Matthew R.

Rasmussen, Brian J.

Conjelko, and Antony E.

4 unchanged sentences

WOODS /s/ MICHAEL J.

ANGELAKIS /s/ JOSEPH L.

ANGELAKIS /s/ STEVEN A.

Woods, Chairman of the Board Michael J.

Angelakis Joseph L.

AVERY /s/ STEVEN A.

Principal Financial Officer Susan K.

Avery Steven A.

/s/ KATHRYN A.

MIKELLS /s/ ANGELA F.

Angelakis Steven A.

/s/ ANGELA F.

BRALY /s/ ALEXANDER A.

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

Principal Financial Officer Angela F.

Braly Alexander A.

/s/ GREGORY J.

GOFF /s/ LAWRENCE W.

Principal Accounting Officer Gregory J.

Goff Lawrence W.

FOX /s/ JOHN D.

/s/ KATHRYN A.

MIKELLS /s/ MARIA S.

DREYFUS /s/ LAWRENCE W.

Mikells, Senior Vice President and Chief Financial Officer Maria S.

Dreyfus Lawrence W.

HARRIS II /s/ DINA POWELL MCCORMICK

Fox, Vice President

and Controller John D.

Principal Accounting Officer John D.

Harris II Dina Powell McCormick

FOX /s/ KAISA H.

HIETALA /s/ JEFFREY W.

Fox, Vice President,

Controller and Tax Kaisa H.

Hietala Jeffrey W.

/s/ JOSEPH L.

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