What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-05-05 compared with 2024-11-04 · 143 added, 260 removed, 270 unchanged (60% of the section changed)

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

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

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

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

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

Recent Mergers and Acquisitions

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

Pioneer Natural Resources Merger" of the Condensed Consolidated Financial Statements for additional information.

Selected Earnings Factor Definitions

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

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

Listed below are descriptions of the earnings factors:

During the first quarter of 2025, the price of crude oil remained roughly flat relative to fourth quarter 2024 and near the middle of the 10-year historical range (2010-2019).

Natural gas prices improved during the quarter and moved above the 10-year range on stronger global demand, driven by colder weather in the U.S.

Global industry refining margins declined and moved below the low end of the 10-year range, driven by weakness in Asia Pacific from capacity additions and higher regional feed costs.

The Corporation benefited from its relatively large refining footprint in North America where industry margins improved as a result of turnarounds and industry outages.

Chemical margins remained at bottom of cycle conditions, and well below the 10-year range, as growing demand was met by continued capacity additions.

During 2025, the U.S.

announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries.

In response, many countries announced their own retaliatory tariffs.

Certain tariffs were paused for a period of time but have not been withdrawn.

The global trade environment continues to be volatile.

The likelihood of the U.S.

or its trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions is highly uncertain.

Additionally, significant uncertainty exists as to what effects these actions will ultimately have on the Corporation, our suppliers and our customers, as well as on the overall macroeconomic environment.

We continually monitor the global trade environment and work to mitigate potential impacts.

Selected Earnings Driver Definitions

The earnings drivers 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, strategic projects, and high-value products.

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, Brazil, and LNG.

• Strategic Projects.

Includes (i) the following completed projects:

Rotterdam Hydrocracker, Corpus Christi Chemical Complex, Baton Rouge Polypropylene, Beaumont Crude Expansion, Baytown Chemical Expansion, Permian Crude Venture, and the 2022 Baytown advanced recycling facility;

and (ii) the following projects still to be completed:

Fawley Hydrofiner, China Chemical Complex, Singapore Resid Upgrade, Strathcona Renewable Diesel, Proxxima TM Venture, USGC Reconfiguration, additional advanced recycling projects under evaluation worldwide, and additional projects in plan yet to be publicly announced.

Includes Permian, 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.

2 unchanged sentences

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 factors not included in Advantaged Volume Growth defined above.

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

Structural Cost Savings.

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

Represents all expenses otherwise not included in other earnings factors.

Represents after-tax earnings effects of Structural Cost Savings as defined on page 19 , including cash operating expenses related to divestments.

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.

Earnings (loss) excluding Identified Items

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

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

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

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

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

Earnings (loss) excluding Identified Items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for Identified Items.

3 unchanged sentences

Three Months Ended

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

March 31, 2025

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

Earnings (loss) (U.S.

1,686 4,472 517 792 367 526 375 419 (544) 8,610

Identified Items

GAAP) 1,870 4,886 297 530 255 18 322 333 (798) 7,713

Total Identified Items — — — — — — — — — —

2 unchanged sentences

Three Months Ended

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

(millions of dollars) U.S.

Earnings (loss) (U.S.

1,566 4,559 1,356 1,086 338 (89) 326 293 (365) 9,070

Identified Items

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

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

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

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

Nine Months Ended

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

(millions of dollars) U.S.

Earnings (loss) (U.S.

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

Identified Items

Total Identified Items — — — — — — — — — —

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

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

Nine Months Ended

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

March 31, 2024

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

(millions of dollars) U.S.

Earnings (loss) (U.S.

4,118 13,041 4,794 4,141 1,148 300 1,150 914 (1,226) 28,380

Identified Items

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

GAAP) 1,054 4,606 836 540 504 281 404 357 (362) 8,220

Total Identified Items — — — — — — — — — —

7 unchanged sentences

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

Structural Cost Savings

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 $11.3 billion, which included an additional $1.6 billion in the first nine months of 2024.

Relative to 2019, estimated cumulative Structural Cost Savings totaled $12.7 billion, which included an additional $0.6 billion in the first three months of 2025.

The total change between periods in expenses below will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new business venture development, and early-stage projects.

Structural Cost Savings from new operations, mergers and acquisitions, and new business venture developments are included in the cumulative Structural Cost Savings.

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.

1 unchanged sentence

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

Dollars in billions (unless otherwise noted) Twelve Months Ended

December 31, Nine Months Ended

September 30,

Dollars in billions (unless otherwise noted)

Twelve Months

Ended December 31, Three Months Ended

2019 2024 2024 2025

9 unchanged sentences

Total Adjusted Operating Costs (Non-GAAP)

78.8 83.6 18.9 21.1

Total Adjusted Operating Costs (Non-GAAP)

78.8 83.6 18.9 21.1

Depreciation and depletion (includes impairments) 19.0 23.4 4.8 5.7

3 unchanged sentences

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

55.0 56.4 13.2 14.1

Energy and production taxes (Non-GAAP) 11.0 13.9 3.4 3.9

Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP)

44.0 42.5 9.8 10.2

Estimated Cumulative vs

3 unchanged sentences

Structural Cost Savings

-12.1 -0.6 -12.7

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

REVIEW OF THIRD QUARTER 2024 RESULTS

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

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

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

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

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

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

REVIEW OF FIRST QUARTER 2025 RESULTS

ExxonMobil’s first quarter 2025 earnings were $7.7 billion, compared to $8.2 billion a year earlier.

The decrease in earnings was mainly driven by a significant decline in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses driven by growth initiatives, partly offset by increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts and Structural Cost Savings.

Cash capital expenditures were $5.9 billion, up $0.7 billion from first quarter 2024.

Upstream Financial Results

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Earnings (loss) (U.S.

United States 1,870 1,054

4,472 4,559 13,722 13,041

Total 6,756 5,660

Identified Items (1)

United States — — — —

— (14) — (184)

Total — (14) — (184)

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

United States 1,870 1,054

4,472 4,573 13,722 13,225

Total 6,756 5,660

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Upstream Third Quarter Earnings Factor Analysis

Upstream First Quarter Earnings Driver Analysis

(millions of dollars)

Price – Price impacts decreased earnings by $450 million, driven by a decrease in liquids realizations, partly offset by an increase in natural gas realizations.

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

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

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $920 million, driven by growing production in Permian, including the Pioneer acquisition, and Guyana.

Base Volume – Base volumes from divestments decreased earnings by $180 million.

Structural Cost Savings – Increased earnings by $310 million.

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

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

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

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

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

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

Upstream Year-to-Date Earnings Factor Analysis

(millions of dollars)

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

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

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

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

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

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

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

Identified Items (1) – 2023 $(184) million loss driven by additional European taxes.

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

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

Expenses – Higher expenses decreased earnings by $180 million from higher depreciation.

Other – All other items increased earnings by $400 million, mainly driven by divestments.

Timing Effects – Favorable timing effects, mainly from derivatives mark-to-market impacts, increased earnings by $280 million.

Upstream Operational Results

Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net production of crude oil, natural gas liquids, bitumen and synthetic oil

2 unchanged sentences

Canada/Other Americas 760 772

Europe 4 4 4 4

Africa 137 224

Asia 734 713 719 721

Australia/Oceania 24 30

11 unchanged sentences

(thousands of oil-equivalent barrels daily)

4,582 3,688 4,243 3,709

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

1 unchanged sentence

(thousands of barrels daily) Three Months Ended

September 30 Nine Months Ended

Volumes reconciliation (Oil-equivalent production) (1)

2023 3,688 3,709

Entitlements - Net Interest —

3 unchanged sentences

Growth / Other 889

2024 4,582 4,243

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

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

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

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

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

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.

1Q 2025 production of 4.6 million oil-equivalent barrels per day increased 767 thousand oil-equivalent barrels per day from 1Q 2024, driven by the Pioneer acquisition.

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.

1 unchanged sentence

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 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.

Growth and Other 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

1 unchanged sentence

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Earnings (loss) (U.S.

United States 297 836

792 1,086 1,828 4,141

Total 827 1,376

Identified Items (1)

United States — — — —

— (33) — (45)

Total — (33) — (45)

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

United States 297 836

792 1,119 1,828 4,186

Total 827 1,376

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

Energy Products Third Quarter Earnings Factor Analysis

(millions of dollars)

Margin – Margins decreased earnings by $2,400 million, driven by weaker industry refining margins.

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

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

Structural Cost Savings – Increased earnings by $100 million.

Expenses – Higher expenses decreased earnings by $100 million.

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

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

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

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Energy Products Year-to-Date Earnings Factor Analysis

Energy Products First Quarter Earnings Driver Analysis

(millions of dollars)

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

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

Base Volume – Lower base volumes from divestments and higher scheduled maintenance decreased earnings by $990 million.

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

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

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

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

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

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

Margin – Industry refining margins decreased earnings by $1,290 million, normalizing from historically high levels.

Advantaged Volume Growth – Higher volumes from advantaged projects increased earnings by $10 million.

Base Volume – Lower base volumes decreased earnings by $70 million.

Structural Cost Savings – Increased earnings by $110 million.

Expenses – Lower expenses increased earnings by $60 million.

Other – All other items increased earnings by $200 million, reflecting favorable forex and inventory impacts.

Timing Effects – Favorable timing effects, mainly from the absence of prior year unfavorable derivatives mark-to-market impacts, increased earnings by $430 million.

Energy Products Operational Results

(thousands of barrels daily) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Refinery throughput

7 unchanged sentences

United States 2,728 2,576

2,758 2,925 2,699 2,887

Worldwide 5,283 5,232

4 unchanged sentences

Other energy products 873 759

Worldwide 5,283 5,232

(1) Data reported net of purchases/sales contracts with the same counterparty.

3 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Earnings (loss) (U.S.

United States 255 504

526 (89) 1,060 300

Total 273 785

Identified Items (1)

United States — — — —

Total — — — —

Earnings (loss) excluding Identified Items (2) (Non-GAAP)

United States 255 504

526 (89) 1,060 300

Total 273 785

(2) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Chemical Products Third Quarter Earnings Factor Analysis

Chemical Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Improved margins increased earnings by $770 million.

Margin – Weaker margins decreased earnings by $290 million, driven by higher feed costs in North America.

Advantaged Volume Growth – High-value product sales growth increased earnings by $10 million.

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

Base Volume – Lower base volumes decreased earnings by $70 million, driven by absence of prior year opportunistic sales.

Structural Cost Savings – Increased earnings by $30 million.

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

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

Chemical Products Year-to-Date Earnings Factor Analysis

(millions of dollars)

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

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

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

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

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

Expenses – Higher spend on advantaged projects and turnaround activity decreased earnings by $130 million.

Other – All other items decreased earnings by $60 million.

Chemical Products Operational Results

(thousands of metric tons) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Chemical Products sales (1)

United States 1,706 1,847

3,123 3,358 9,401 9,570

Worldwide 4,776 5,054

3 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Earnings (loss) (U.S.

United States 322 404

419 293 1,080 914

Total 655 761

1 unchanged sentence

United States 322 404

419 293 1,080 914

Total 655 761

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products Third Quarter Earnings Factor Analysis

(millions of dollars)

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

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

Base Volume – Base volumes were flat.

Structural Cost Savings – Increased earnings by $20 million.

Expenses – Higher expenses decreased earnings by $60 million.

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

Specialty Products Year-to-Date Earnings Factor Analysis

Specialty Products First Quarter Earnings Driver Analysis

(millions of dollars)

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

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

Base Volume – Increased earnings by $40 million.

Margin – Stronger margins increased earnings by $10 million.

Advantaged Volume – Earnings remained flat.

Base Volume – Lower base volumes decreased earnings by $30 million.

Structural Cost Savings – Increased earnings by $40 million.

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

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

Expenses – Higher expenses mainly related to new product development costs, decreased earnings by $70 million.

Other – All other items decreased earnings by $60 million, mainly driven by unfavorable forex effects.

Specialty Products Operational Results

(thousands of metric tons) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Specialty Products sales (1)

United States 473 495

1,471 1,414 4,363 4,268

Worldwide 1,936 1,959

4 unchanged sentences

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Earnings (loss) (U.S.

(544) (365) (1,216) (1,226)

GAAP) (798) (362)

Earnings (loss) excluding Identified Items (2) (Non-GAAP)

(544) (365) (1,216) (1,226)

(2) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

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

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

Corporate and Financing expenses were $798 million for the first quarter of 2025, $436 million higher than the first quarter of 2024, due to lower interest income, unfavorable foreign exchange effects and increased pension-related expenses.

LIQUIDITY AND CAPITAL RESOURCES

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Net cash provided by/(used in)

7 unchanged sentences

Net cash provided by operating activities (U.S.

17,569 15,963 42,793 41,687

GAAP) 12,953 14,664

Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments 1,823 703

2 unchanged sentences

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

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

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

Cash flow from operations and asset sales in the first quarter of 2025 was $14.8 billion, a decrease of $0.6 billion from the comparable 2024 period primarily due to unfavorable working capital.

Cash provided by operating activities totaled $13.0 billion for the first three months of 2025, $1.7 billion lower than 2024.

Net income including noncontrolling interests was $8.0 billion, a decrease of $0.5 billion from the prior year period.

1 unchanged sentence

Changes in operational working capital were a reduction of $0.9 billion during the period.

All other items net decreased cash flows by $0.9 billion in 2024 versus a contribution of $1.5 billion in 2023.

All other items net increased cash flows by $96 million in 2025 versus a decrease of $0.7 billion in 2024.

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

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

Investing activities for the first three months of 2025 used net cash of $4.1 billion, a decrease of $0.4 billion compared to the prior year.

Spending for additions to property, plant and equipment of $5.9 billion was $0.8 billion higher than 2024.

Proceeds from asset sales were $1.8 billion, a decrease of $1.3 billion compared to the prior year.

Proceeds from asset sales were $1.8 billion, an increase of $1.1 billion compared to the prior year.

Net investments and advances decreased $0.1 billion from $0.2 billion in 2024.

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

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

Net cash used in financing activities was $13.6 billion in the first three months of 2025, including $4.8 billion for the purchase of 43.4 million shares of ExxonMobil stock, as part of the previously announced buyback program.

This compares to net cash used in financing activities of $8.0 billion in the prior year.

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

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

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

Total debt at the end of the first quarter of 2025 was $37.6 billion compared to $41.7 billion at year-end 2024.

The Corporation's debt to total capital ratio was 12.2 percent at the end of the first quarter of 2025 compared to 13.4 percent at year-end 2024.

The net debt to capital ratio (1) was 7.1 percent at the end of the first quarter, an increase of 0.6 percentage points from year-end 2024.

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

1 unchanged sentence

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

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

The Corporation distributed a total of $4.3 billion to shareholders in the first three months of 2025 through dividends.

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

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

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

The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.0 billion as of the end of first quarter 2025.

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

7 unchanged sentences

Total debt is the sum of notes and loans payable and long-term debt, as reported in the consolidated balance sheet.

Contractual Obligations

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

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

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

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Income taxes 3,567 3,803

1 unchanged sentence

Total other taxes and duties (1)

7,609 8,460 22,300 24,883

Total 10,633 10,963

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

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

(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selli ng, general and administrative expenses”, each from the Consolidated Statement of Income.

Total taxes were $10.6 billion for the first quarter of 2025, a decrease of $0.3 billion from 2024.

Income tax expense was $3.6 billion compared to $3.8 billion in the prior year.

The effective income tax rate, which is calculated based on consolidated company income taxes and ExxonMobil's share of equity company income taxes, was 34 percent.

This increased from the 34 percent rate in the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates.

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

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

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

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

This decreased from the 36 percent rate in the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates.

Total other taxes and duties decreased by $0.1 billion to $7.1 billion.

CAPITAL AND EXPLORATION EXPENDITURES

CASH CAPITAL EXPENDITURES (Non-GAAP)

Cash capital expenditures (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.

This measure is useful for investors to understand the current period cash impact of investments in the business.

(millions of dollars) Three Months Ended

September 30, Nine Months Ended

September 30,

2024 2023 2024 2023

Upstream (including exploration expenses) 5,748 4,801 16,077 13,991

Additions to property, plant and equipment 5,898 5,074

Additional investments and advances 153 421

Other investing activities including collection of advances (93) (215)

Inflows from noncontrolling interests for major projects

Total Cash Capex (Non-GAAP)

Cash capex in the first quarter of 2025 was $5.9 billion, up $0.7 billion from the first quarter of 2024.

(millions of dollars) Three Months Ended

Upstream 4,993 4,105

Energy Products 378 517

2 unchanged sentences

Other 164 226

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

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

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

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

Total Cash Capex (Non-GAAP)

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

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

3 unchanged sentences

statements of future ambitions and plans;

future earnings power;

potential addressable markets;

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

Similarly, discussion of future plans related to carbon capture, transportation and storage, biofuel, hydrogen, ammonia, lithium, direct air capture, and other future low carbon business plans to reduce emissions and emission intensity of ExxonMobil, its affiliates, and third parties, are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements.

Similarly, discussion of future plans related to carbon capture, transportation and storage, lower-emission fuels, hydrogen, ammonia, direct air capture, Proxxima TM systems, carbon materials, lithium, low-carbon data centers, 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;

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 heritage Upstream Permian Basin (1) unconventional operated assets by 2030 and in Pioneer assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, and to reach near-zero methane emissions from operated assets and other methane initiatives;

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

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 unconventional operated assets by 2030 and in Pioneer Permian assets by 2035, to eliminate routine flaring in-line with World Bank Zero Routine Flaring, to reach near-zero methane emissions from operated assets and other methane initiatives;

and 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 CO 2 , 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;

future debt levels and credit ratings;

2 unchanged sentences

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, policies or timely granting of governmental permits and certifications, such as the development or changes in government policies supporting lower carbon and new market investment opportunities such as the U.S.

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

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 greenhouse gas reporting;

timely granting of governmental permits and certifications;

uncertain impacts of deregulation on the legal and regulatory environment;

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 effects of government responses on people and economies;

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

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 technologies;

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

timely completion of development and other construction projects;

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;

1 unchanged sentence

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;

changes in market strategy by national oil companies;

decoupling of economies, realignment of global trade and supply chain networks, and disruptions in 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;

1 unchanged sentence

Risk Factors" of ExxonMobil’s 2024 Form 10-K.

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.

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

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

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

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

3 unchanged sentences

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

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

Individual projects or opportunities may advance based on a number of factors, including availability of 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;

1 unchanged sentence

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

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

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about market risks for the three months ended March 31, 2025, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2024.

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

What changed 10-Q

Item 2. Management’s Discussion and Analysis