What changed in this filing

/stocks — the workspaceLOADING

Item 2. Management’s Discussion and Analysis

2025-11-03 compared with 2025-08-04 · 130 added, 132 removed, 403 unchanged (39% of the section changed)

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

During the second quarter of 2025, the price of crude oil decreased slightly relative to first quarter 2025, remaining near the middle of the 10-year historical range (2010-2019) supported by strong demand which helped to offset increased OPEC supply.

Natural gas prices remained above the 10-year range on strong global demand.

Global industry refining margins improved in the second quarter, moving back to the middle of the 10-year historical range driven by strong seasonal demand.

During the third quarter of 2025, the price of crude oil increased slightly relative to second quarter 2025, remaining near the middle of the 10-year historical range (2010-2019) supported by strong demand despite increased OPEC+ supply.

Natural gas prices remained at the top of the 10-year range on robust global demand.

Global industry refining margins moved toward the top of the 10-year historical range in the third quarter, impacted by industry supply outages coupled with strong demand.

Chemical margins remained at bottom of cycle, well below the 10-year range, with continued industry oversupply.

2 unchanged sentences

In response, many countries announced their own retaliatory tariffs.

Certain tariffs were paused for a period of time but have not been withdrawn, while others have been revised.

The global trade environment continues to be volatile.

The likelihood of the U.S.

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

Despite the current uncertainty 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 do not anticipate any material near-term financial impacts.

27 unchanged sentences

Three Months Ended

June 30, 2025

September 30, 2025

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

1 unchanged sentence

Earnings (loss) (U.S.

1,212 4,190 825 541 255 38 291 489 (759) 7,082

GAAP) 1,228 4,451 858 982 329 186 354 386 (1,226) 7,548

Identified Items

Impairments — — — — — — — — (155) (155)

Restructuring charges — — — — — — — — (355) (355)

Total Identified Items — — — — — — — — (510) (510)

2 unchanged sentences

Three Months Ended

June 30, 2024

September 30, 2024

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

1 unchanged sentence

Earnings (loss) (U.S.

2,430 4,644 450 496 526 253 447 304 (310) 9,240

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

Identified Items

2 unchanged sentences

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

Six Months Ended

June 30, 2025

Nine Months Ended

September 30, 2025

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

3 unchanged sentences

Identified Items

Impairments — — — — — — — — (155) (155)

Restructuring charges — — — — — — — — (355) (355)

Total Identified Items — — — — — — — — (510) (510)

1 unchanged sentence

4,310 13,527 1,980 2,053 839 242 967 1,208 (2,273) 22,853

Six Months Ended

June 30, 2024

Nine Months Ended

September 30, 2024

Upstream Energy Products Chemical Products Specialty Products Corporate and Financing Total

14 unchanged sentences

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 $13.5 billion, which included an additional $1.4 billion in the first six months of 2025.

Relative to 2019, estimated cumulative Structural Cost Savings totaled $14.3 billion, which included an additional $2.2 billion in the first nine 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.

5 unchanged sentences

Twelve Months

Ended December 31, Six Months Ended

Ended December 31, Nine Months Ended

September 30,

2019 2024 2024 2025

28 unchanged sentences

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

REVIEW OF SECOND QUARTER 2025 RESULTS

ExxonMobil’s second quarter 2025 earnings were $7.1 billion, compared to $9.2 billion a year earlier.

The decrease in earnings was mainly driven by weaker crude prices , lower chemical realizations, and higher expenses from growth initiatives;

partly offset by increased volumes from advantaged Upstream investments in the Permian and Structural Cost Savings.

Cash capital expenditures were $6.3 billion, down $0.2 billion from second quarter 2024.

Earnings for the first six months of 2025 were $14.8 billion, compared to $17.5 billion a year earlier.

Cash capital expenditures were $12.3 billion, up $0.5 billion from the first six months of 2024.

REVIEW OF THIRD QUARTER 2025 RESULTS

ExxonMobil’s third quarter 2025 earnings were $7.5 billion, compared to $8.6 billion a year earlier.

The decrease in earnings was mainly driven by weaker crude prices, lower chemical margins, and higher expenses from growth initiatives;

partly offset by stronger refining margins, increased volumes from advantaged Upstream investments in Guyana and the Permian, and Structural Cost Savings from base efficiencies and divestments.

Cash capital expenditures were $8.6 billion, up $2.2 billion from third quarter 2024.

Earnings for the first nine months of 2025 were $22.3 billion, compared to $26.1 billion a year earlier.

Cash capital expenditures were $20.9 billion, up $2.7 billion from the first nine months of 2024.

The Corporation distributed $12.9 billion in dividends to shareholders and repurchased $14.9 billion of common stock.

1 unchanged sentence

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Total 5,679 6,158 17,837 18,892

Identified Items (1)

United States — — — —

Total — — — —

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

3 unchanged sentences

(1) Refer to page 22 for definition of Identified Items and earnings (loss) excluding Identified Items.

Upstream Second Quarter Earnings Driver Analysis

(millions of dollars)

Upstream Third Quarter Earnings Driver Analysis (millions of dollars)

Price – Price impacts decreased earnings by $1,510 million, mainly driven by lower liquids realizations.

Advantaged Volume Growth – Volumes from advantaged assets increased earnings by $160 million, mainly driven by Permian growth, including the Pioneer acquisition.

Base Volume – Decreased earnings by $110 million as a result of divestments.

Advantaged Volume Growth – Increased earnings by $630 million, mainly driven by Permian and Guyana growth.

Base Volume – Decreased earnings by $380 million as a result of non-strategic asset divestments.

Structural Cost Savings – Increased earnings by $330 million.

Expenses – Decreased earnings by $250 million from higher depreciation.

Other – Increased earnings by $100 million, driven by favorable foreign exchange and tax items, partially offset by lower divestment gains.

Timing Effects – Increased earnings by $140 million, mainly from favorable derivatives mark-to-market impacts.

Upstream Year-to-Date Earnings Driver Analysis

(millions of dollars)

Price – Price impacts decreased earnings by $2,480 million, driven by lower liquids realizations.

Advantaged Volume Growth – Volumes from advantaged assets increased earnings by $1,080 million, driven by the Permian and Guyana.

Base Volume – Divestments of non-strategic assets decreased earnings by $300 million, partially offset by the Tengiz expansion.

Expenses – Decreased earnings by $10 million.

Other – Increased earnings by $340 million, primarily driven by one-time tax items.

Timing Effects – Increased earnings by $120 million, mainly from the absence of unfavorable derivatives mark-to-market impacts.

Upstream Year-to-Date Earnings Driver Analysis (millions of dollars)

Price – Price impacts decreased earnings by $3,980 million, driven by lower liquids realizations on higher industry supply.

Advantaged Volume Growth – Increased earnings by $1,500 million, mainly driven by Permian and Guyana growth.

Base Volume – Decreased earnings by $450 million as a result of non-strategic asset divestments, partially offset by ramp-up of the Tengiz expansion.

Structural Cost Savings – Increased earnings by $960 million.

Expenses – Decreased earnings by $420 million, primarily from higher depreciation.

Other – Increased earnings by $500 million, driven by favorable foreign exchange and tax items.

Timing Effects – Increased earnings by $420 million from favorable derivatives mark-to-market impacts.

Expenses – Decreased earnings by $480 million, primarily from higher depreciation on the Tengiz expansion.

Other – Increased earnings by $850 million, driven by favorable foreign exchange effects and tax items.

Timing Effects – Increased earnings by $540 million from favorable derivatives mark-to-market impacts and the absence of unfavorable prior year impacts.

Upstream Operational Results

Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

21 unchanged sentences

(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.

Upstream Additional Information

(thousands of barrels daily) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

Volumes reconciliation (Oil-equivalent production) (1)

6 unchanged sentences

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

2Q 2025 production of 4.6 million oil-equivalent barrels per day increased 272 thousand oil-equivalent barrels per day from 2Q 2024, driven by the Pioneer acquisition.

3Q 2025 production of 4.8 million oil-equivalent barrels per day increased 187 thousand oil-equivalent barrels per day from 3Q 2024, driven by Permian and Guyana growth.

4.7 million oil-equivalent barrels per day in 2025 increased 408 thousand oil-equivalent barrels per day from 2024, driven by Permian production.

16 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Total 1,840 1,309 4,033 3,631

Identified Items (1)

United States — — — —

Total — — — —

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

3 unchanged sentences

(1) Refer to page 22 for definition of Identified Items and earnings (loss) excluding Identified Items.

Energy Products Second Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Industry refining margins increased earnings by $270 million, on higher fuel demand and industry supply outages.

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

Base Volume – Increased earnings by $150 million, driven by lower scheduled maintenance.

Energy Products Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Increased earnings by $1,010 million from stronger industry refining margins driven by supply disruptions.

Advantaged Volume Growth – Increased earnings by $40 million.

Base Volume – Increased earnings by $40 million.

Structural Cost Savings – Increased earnings by $130 million.

Expenses – Increased earnings by $60 million.

Other – Increased earnings by $10 million.

Expenses – Decreased earnings by $220 million driven by growth projects.

Other – Decreased earnings by $20 million.

Timing Effects – Decreased earnings by $450 million, mainly from the absence of prior year favorable derivatives mark-to-market impacts.

Energy Products Year-to-Date Earnings Driver Analysis

(millions of dollars)

Margins – Industry refining margins decreased earnings by $1,100 million, as the increased supply from industry capacity additions outpaced higher global demand.

Advantaged Volume Growth – Volumes from advantaged projects increased earnings by $20 million.

Base Volume – Higher base volumes increased earnings by $150 million, driven by lower scheduled maintenance.

Energy Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Decreased earnings by $90 million.

Advantaged Volume Growth – Increased earnings by $50 million .

Base Volume – Increased earnings by $240 million, mainly driven by lower scheduled maintenance and stronger reliability.

Structural Cost Savings – Increased earnings by $420 million.

Expenses – Remained flat.

Expenses – Decreased earnings by $230 million, primarily driven by growth projects, partially offset by lower scheduled maintenance.

Other – All other items, mainly driven by the absence of unfavorable inventory impacts, increased earnings by $160 million.

Timing Effects – Increased earnings by $310 million, mainly from the absence of prior year unfavorable derivatives mark-to-market impacts.

Timing Effects – Decreased earnings by $150 million, primarily from the absence of prior year favorable derivatives mark-to-market impacts.

Energy Products Operational Results

(thousands of barrels daily) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

21 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Total 515 893 1,081 2,457

Identified Items (2)

United States — — — —

Total — — — —

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

3 unchanged sentences

(2) Refer to page 22 for definition of Identified Items and earnings (loss) excluding Identified Items.

Chemical Products Second Quarter Earnings Driver Analysis

(millions of dollars)

Chemical Products Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Weaker margins decreased earnings by $510 million on lower North America ethane feed advantage.

Advantaged Volume Growth – High-value product sales growth increased earnings by $30 million.

Advantaged Volume Growth – Increased earnings by $40 million.

Base Volume – Increased earnings by $80 million.

Structural Cost Savings – Increased earnings by $50 million.

Expenses – Decreased earnings by $50 million.

Expenses – Decreased earnings by $80 million, driven by China Chemical Complex costs.

Other – Increased earnings by $40 million.

Chemical Products Year-to-Date Earnings Driver Analysis

(millions of dollars)

Margins – Weaker margins decreased earnings by $820 million on lower North America ethane feed advantage.

Advantaged Volume Growth – High-value product sales growth increased earnings by $40 million.

Base Volume – Absence of prior year opportunistic sales decreased earnings by $80 million.

Chemical Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Weaker margins decreased earnings by $1,280 million, mainly on lower North America ethane feed advantage.

Advantaged Volume Growth – Record high-value product sales increased earnings by $100 million.

Base Volume – Decreased earnings by $60 million.

Structural Cost Savings – Increased earnings by $180 million.

Expenses – Higher expenses, including China Chemical Complex costs, decreased earnings by $250 million.

Expenses – Higher expenses, including China Chemical Complex ramp-up, decreased earnings by $340 million.

Other – Increased earnings by $20 million.

Chemical Products Operational Results

(thousands of metric tons) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

7 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

3 unchanged sentences

Total 740 794 2,175 2,306

Identified Items (2)

United States — — — —

Total — — — —

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

3 unchanged sentences

(2) Refer to page 22 for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products Second Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Stronger finished lubes margins increased earnings by $90 million.

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

Base Volume – Increased earnings by $10 million.

Specialty Products Third Quarter Earnings Driver Analysis (millions of dollars)

Margin – Weaker basestock margins, partially offset by stronger finished lubes margins, decreased earnings by $70 million.

Advantaged Volume – Increased earnings by $10 million.

Base Volume – Decreased earnings by $10 million.

Structural Cost Savings – Increased earnings by $30 million.

Expenses – Decreased earnings by $60 million.

Other – Decreased earnings by $60 million.

Specialty Products Year-to-Date Earnings Driver Analysis

(millions of dollars)

Margins – Stronger margins driven by lower basestocks feed costs increased earnings by $90 million.

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

Other – Increased earnings by $50 million.

Specialty Products Year-to-Date Earnings Driver Analysis (millions of dollars)

Margins – Stronger finished lubes margins on lower feed costs increased earnings by $30 million.

Advantaged Volume Growth – Increased earnings by $30 million.

Base Volume – Decreased earnings by $30 million.

Structural Cost Savings – Increased earnings by $100 million.

Expenses – Higher expenses including spending on Proxxima TM systems and carbon materials market development decreased earnings by $140 million.

Other – Decreased earnings by $90 million.

Expenses – Higher expenses, including spending on carbon materials market development and Proxxima TM systems, decreased earnings by $190 million.

Other – Decreased earnings by $70 million on unfavorable foreign exchange impacts.

Specialty Products Operational Results

(thousands of metric tons) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

8 unchanged sentences

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

2 unchanged sentences

Identified Items (2)

(510) — (510) —

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

1 unchanged sentence

(2) Refer to page 22 for definition of Identified Items and earnings (loss) excluding Identified Items.

Corporate and Financing expenses were $759 million for the second quarter of 2025, $449 million higher than the second quarter of 2024, due to lower interest income, unfavorable foreign exchange and increased pension-related expenses.

Corporate and Financing expenses were $1,557 million for the first six months of 2025, $885 million higher than 2024, due to lower interest income, unfavorable foreign exchange and increased pension-related expenses.

Corporate and Financing expenses were $1,226 million for the third quarter of 2025, $682 million higher than the third quarter of 2024, due to lower interest income and increased pension-related expenses, partially offset by favorable tax impacts.

Corporate and Financing expenses were $2,783 million for the first nine months of 2025, $1,567 million higher than 2024, due to lower interest income, unfavorable foreign exchange, and increased pension-related expenses, partially offset by favorable tax impacts.

LIQUIDITY AND CAPITAL RESOURCES

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

13 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 second quarter of 2025 was $11.7 billion, an increase of $0.2 billion from the comparable 2024 period.

Cash provided by operating activities totaled $24.5 billion for the first six months of 2025, $0.7 billion lower than 2024.

Cash flow from operations and asset sales in the third quarter of 2025 was $14.9 billion, a decrease of $2.8 billion from the comparable 2024 period.

Cash provided by operating activities totaled $39.3 billion for the first nine months of 2025, $3.5 billion lower than 2024.

Net income including noncontrolling interests was $23.2 billion, a decrease of $4.0 billion from the prior year period.

3 unchanged sentences

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

Investing activities for the first six months of 2025 used net cash of $10.3 billion, an increase of $0.9 billion compared to the prior year.

Investing activities for the first nine months of 2025 used net cash of $18.8 billion, an increase of $3.1 billion compared to the prior year.

Spending for additions to property, plant and equipment of $20.9 billion was $3.4 billion higher than 2024.

1 unchanged sentence

Net investments and advances decreased $0.7 billion from $0.7 billion in 2024.

Net cash used in financing activities was $22.3 billion in the first six months of 2025, including $9.8 billion for the purchase of 89.9 million shares of ExxonMobil stock, as part of the previously announced buyback program.

Net cash used in financing activities was $30.3 billion in the first nine months of 2025, including $14.9 billion for the purchase of 136 million shares of ExxonMobil stock, as part of the previously announced buyback program.

This compares to net cash used in financing activities of $31.6 billion in the prior year.

Total debt at the end of the second quarter of 2025 was $39.0 billion compared to $41.7 billion at year-end 2024.

The Corporation's debt to total capital ratio was 12.6 percent at the end of the second quarter of 2025 compared to 13.4 percent at year-end 2024.

The net debt to capital ratio (1) was 8.4 percent at the end of the second quarter, an increase of 1.9 percentage points from year-end 2024.

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

maintaining a strong balance sheet;

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

The Corporation distributed a total of $8.6 billion to shareholders in the first six months of 2025 through dividends.

Total debt at the end of the third quarter of 2025 was $42.0 billion compared to $41.7 billion at year-end 2024.

The Corporation's debt to total capital ratio was 13.5 percent at the end of the third quarter of 2025 compared to 13.4 percent at year-end 2024.

The net debt to capital ratio (1) was 9.5 percent at the end of the third quarter, an increase of 3.0 percentage points from year-end 2024.

The Corporation's capital allocation priorities are investing in competitively advantaged, high-return projects, maintaining a strong balance sheet, and sharing our success with our shareholders through more consistent share repurchases and a growing dividend.

The Corporation distributed a total of $12.9 billion to shareholders in the first nine 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 $0.7 billion as of the end of second quarter 2025.

Commercial paper is used to balance short-term liquidity requirements and is reflected in "Notes and loans payable" on the Consolidated Balance Sheet, with changes in outstanding commercial paper between periods included in the Consolidated Statement of Cash Flows.

The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $0.4 billion as of the end of third quarter 2025.

On October 2, 2025, the Corporation established a 364-day revolving credit facility of $7.0 billion to provide short-term borrowing capacity for general corporate purposes.

(1) Net debt is total debt of $42.0 billion less $13.8 billion of cash and cash equivalents excluding restricted cash .

Net debt to capital ratio is net debt divided by net debt plus total equity of $268.2 billion.

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

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

4 unchanged sentences

Litigation and other contingencies are discussed in Note 3 to the unaudited Condensed Consolidated Financial Statements.

(1) Net debt is total debt of $39.0 billion less $14.4 billion of cash and cash equivalents excluding restricted cash .

Net debt to capital ratio is net debt divided by net debt plus total equity of $270.0 billion.

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 2025, the Corporation entered into a long-term purchase agreement with an estimated total obligation of approximately $2.3 billion.

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

5 unchanged sentences

(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 second quarter of 2025, a decrease of $1.1 billion from 2024.

Total taxes were $10.5 billion for the third quarter of 2025, a decrease of $1.2 billion from 2024.

Income tax expense was $3.2 billion compared to $4.1 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, comparable with the prior year period.

The effective income tax rate, which is calculated based on consolidated company income taxes and ExxonMobil's share of equity company income taxes, was 32 percent, lower than the prior year period due primarily to favorable one-time items.

Total other taxes and duties decreased by $0.3 billion to $7.3 billion.

Total taxes were $21.2 billion for the first six months of 2025, a decrease of $1.4 billion from 2024.

Total taxes were $31.7 billion for the first nine months of 2025, a decrease of $2.6 billion from 2024.

Income tax expense decreased by $1.9 billion to $10.1 billion reflecting lower commodity prices.

2 unchanged sentences

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.

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

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

6 unchanged sentences

8,595 6,367 20,864 18,184

Cash capex in the second quarter of 2025 was $6.3 billion, down $0.2 billion from the second quarter of 2024.

Cash capex in the third quarter of 2025 was $8.6 billion, up $2.2 billion from the third quarter of 2024.

(millions of dollars) Three Months Ended

June 30, Six Months Ended

September 30, Nine Months Ended

September 30,

2025 2024 2025 2024

6 unchanged sentences

8,595 6,367 20,864 18,184

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.

The Corporation plans to invest slightly below the lower end of the $27 billion to $29 billion range in 2025, excluding acquisitions.

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

FORWARD-LOOKING STATEMENTS

18 unchanged sentences

economic conditions and seasonal fluctuations that impact prices, differentials, and volume/mix 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;

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 or extraterritorial laws and regulations imposed by various jurisdictions related to sustainability and greenhouse gas reporting;

timely granting of governmental permits and certifications;

12 unchanged sentences

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

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

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

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

23 unchanged sentences

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Information about market risks for the six months ended June 30, 2025, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2024.

Information about market risks for the nine months ended September 30, 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