Exxon Mobil Corp 10-Q

ITEM 1. FINANCIAL STATEMENTS The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements. Due to rounding, numbers presented may not add up precisely to the totals indicated. CONDENSED CONSOLIDATED STATEMENT OF INCOME (millions of dollars, unless noted) Note Reference Number Three Months Ended March 31, 2026 2025 Revenues and other income Sales and other operating revenue 3 83,161 81,058 Income from equity affiliates 1,369 1,369 Other income 608 703 Total revenues and other income 85,138 83,130 Costs and other deductions Crude oil and product purchases 51,802 46,788 Production and manufacturing expenses 10,695 10,083 Selling, general and administrative expenses 2,684 2,540 Depreciation and depletion (includes impairments) 6,771 5,702 Exploration expenses, including dry holes 126 64 Non-service pension and postretirement benefit expense 4 62 113 Interest expense 295 205 Other taxes and duties 5,736 6,035 Total costs and other deductions 78,171 71,530 Income (loss) before income taxes 6,967 11,600 Income tax expense (benefit) 2,495 3,567 Net income (loss) including noncontrolling interests 4,472 8,033 Net income (loss) attributable to noncontrolling interests 289 320 Net income (loss) attributable to ExxonMobil 4,183 7,713 Earnings (loss) per common share (dollars) 2 1.00 1.76 Earnings (loss) per common share - assuming dilution (dollars) 2 1.00 1.76 4 Table of Contents CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (millions of dollars) Three Months Ended March 31, 2026 2025 Net income (loss) including noncontrolling interests 4,472 8,033 Other comprehensive income (net of income taxes) Foreign exchange translation adjustment ( 263 ) 302 Adjustment for foreign exchange translation (gain)/loss included in net income ( 5 ) — Postretirement benefits reserves adjustment (excluding amortization) ( 35 ) ( 34 ) Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs ( 27 ) 23 Total other comprehensive income (loss) ( 330 ) 291 Comprehensive income (loss) including noncontrolling interests 4,142 8,324 Comprehensive income (loss) attributable to noncontrolling interests 194 330 Comprehensive income (loss) attributable to ExxonMobil 3,948 7,994 5 Table of Contents CONDENSED CONSOLIDATED BALANCE SHEET (millions of dollars, unless noted) Note Reference Number March 31, 2026 December 31, 2025 ASSETS Current assets Cash and cash equivalents 8,435 10,681 Notes and accounts receivable – net 61,783 44,562 Inventories Crude oil, products and merchandise 21,838 22,979 Materials and supplies 3,137 3,323 Other current assets 2,594 1,837 Total current assets 97,787 83,382 Investments, advances and long-term receivables 46,125 45,317 Property, plant and equipment – net 298,781 299,373 Other assets, including intangibles – net 21,717 20,908 Total Assets 464,410 448,980 LIABILITIES Current liabilities Notes and loans payable 14,531 9,296 Accounts payable and accrued liabilities 77,088 60,911 Income taxes payable 2,759 2,123 Total current liabilities 94,378 72,330 Long-term debt 33,130 34,241 Postretirement benefits reserves 8,940 8,847 Deferred income tax liabilities 40,018 40,216 Long-term obligations to equity companies 562 542 Other long-term obligations 26,386 26,178 Total Liabilities 203,414 182,354 Commitments and contingencies 7 EQUITY Common stock without par value ( 9,000 million shares authorized, 8,019 million shares issued) 46,426 46,150 Earnings reinvested 482,344 482,494 Accumulated other comprehensive income 5 ( 11,098 ) ( 10,863 ) Common stock held in treasury ( 3,874 million shares at March 31, 2026 and 3,840 million shares at December 31, 2025 ) ( 263,291 ) ( 258,395 ) ExxonMobil share of equity 254,381 259,386 Noncontrolling interests 6,615 7,240 Total Equity 260,996 266,626 Total Liabilities and Equity 464,410 448,980 6 Table of Contents CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (millions of dollars) Three Months Ended March 31, 2026 2025 CASH FLOWS FROM OPERATING ACTIVITIES Net income (loss) including noncontrolling interests 4,472 8,033 Depreciation and depletion (includes impairments) 6,771 5,702 Changes in operational working capital, excluding cash and debt ( 1,758 ) ( 878 ) All other items – net ( 780 ) 96 Net cash provided by operating activities 8,705 12,953 CASH FLOWS FROM INVESTING ACTIVITIES Additions to property, plant and equipment ( 6,470 ) ( 5,898 ) Proceeds from asset sales and returns of investments 219 1,823 Additional investments and advances ( 387 ) ( 153 ) Other investing activities including collection of advances 632 93 Net cash used in investing activities ( 6,006 ) ( 4,135 ) CASH FLOWS FROM FINANCING ACTIVITIES Additions to long-term debt 894 280 Reductions in long-term debt ( 158 ) ( 7 ) Reductions in short-term debt (1) ( 5,402 ) ( 4,541 ) Additions/(reductions) in commercial paper, and debt with three months or less maturity 9,075 ( 41 ) Cash dividends to ExxonMobil shareholders ( 4,334 ) ( 4,335 ) Cash dividends to noncontrolling interests ( 168 ) ( 141 ) Changes in noncontrolling interests 61 ( 12 ) Inflows from noncontrolling interests for major projects — 22 Common stock acquired ( 4,868 ) ( 4,804 ) Net cash used in financing activities ( 4,900 ) ( 13,579 ) Effects of exchange rate changes on cash ( 45 ) 86 Increase/(decrease) in cash and cash equivalents (including restricted) ( 2,246 ) ( 4,675 ) Cash and cash equivalents at beginning of period (including restricted) 10,681 23,187 Cash and cash equivalents at end of period (including restricted) 8,435 18,512 SUPPLEMENTAL DISCLOSURES Cash interest paid Included in cash flows from operating activities 362 211 Capitalized, included in cash flows from investing activities 199 326 Total cash interest paid 561 537 Noncash right of use assets recorded in exchange for lease liabilities Operating leases 938 243 Finance leases 20 6 (1) Includes commercial paper with a maturity greater than three months. 7 Table of Contents CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ExxonMobil Share of Equity (millions of dollars, unless noted) Common Stock Earnings Reinvested Accumulated Other Comprehensive Income Common Stock Held in Treasury ExxonMobil Share of Equity Non- controlling Interests Total Equity Balance as of December 31, 2024 46,238 470,903 ( 14,619 ) ( 238,817 ) 263,705 6,901 270,606 Amortization of stock-based awards 194 — — — 194 — 194 Other ( 6 ) 9 — — 3 ( 4 ) ( 1 ) Net income (loss) for the period — 7,713 — — 7,713 320 8,033 Dividends - common shares — ( 4,335 ) — — ( 4,335 ) ( 141 ) ( 4,476 ) Other comprehensive income (loss) — — 281 — 281 10 291 Share repurchases, at cost — — — ( 4,852 ) ( 4,852 ) — ( 4,852 ) Dispositions — — — 11 11 — 11 Balance as of March 31, 2025 46,426 474,290 ( 14,338 ) ( 243,658 ) 262,720 7,086 269,806 Balance as of December 31, 2025 46,150 482,494 ( 10,863 ) ( 258,395 ) 259,386 7,240 266,626 Amortization of stock-based awards 304 — — — 304 — 304 Other ( 28 ) 1 — — ( 27 ) ( 637 ) ( 664 ) Net income (loss) for the period — 4,183 — — 4,183 289 4,472 Dividends - common shares — ( 4,334 ) — — ( 4,334 ) ( 182 ) ( 4,516 ) Other comprehensive income (loss) — — ( 235 ) — ( 235 ) ( 95 ) ( 330 ) Share repurchases, at cost — — — ( 4,917 ) ( 4,917 ) — ( 4,917 ) Dispositions — — — 21 21 — 21 Balance as of March 31, 2026 46,426 482,344 ( 11,098 ) ( 263,291 ) 254,381 6,615 260,996 Three Months Ended March 31, 2026 Three Months Ended March 31, 2025 Common Stock Share Activity (millions of shares) Issued Held in Treasury Outstanding Issued Held in Treasury Outstanding Balance as of December 31 8,019 ( 3,840 ) 4,179 8,019 ( 3,666 ) 4,353 Share repurchases, at cost — ( 34 ) ( 34 ) — ( 43 ) ( 43 ) Balance as of March 31 8,019 ( 3,874 ) 4,145 8,019 ( 3,709 ) 4,310 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS Due to rounding, numbers presented may not add up precisely to the totals indicated. Note 1. Basis of Financial Statement Preparation These unaudited Condensed Consolidated Financial Statements should be read in the context of the Consolidated Financial Statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2025 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. The Corporation's exploration and production activi ties are accounted for under the "successful efforts" method. Note 2. Earnings Per Share Earnings per common share Three Months Ended March 31, 2026 2025 Net income (loss) attributable to ExxonMobil (millions of dollars) 4,183 7,713 Weighted-average number of common shares outstanding (millions of shares) (1) 4,202 4,372 Earnings (loss) per common share (dollars) (2) 1.00 1.76 Dividends paid per common share (dollars) 1.03 0.99 (1) Includes restricted shares not vested. (2) Earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown. 8 Table of Contents Note 3. Disclosures about Segments and Related Information Our four reportable segments are Upstream, Energy Products, Chemical Products, and Specialty Products. (millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Three Months Ended March 31, 2026 Revenues and other income Sales and other operating revenue 7,265 2,813 25,990 37,204 1,970 3,504 1,372 3,018 83,136 Income from equity affiliates ( 61 ) 906 34 438 32 102 1 ( 18 ) 1,434 Intersegment revenue 7,593 10,023 6,421 7,105 1,692 977 496 140 34,447 Other income 246 39 29 51 — 1 3 29 398 Segment revenues and other income 15,043 13,781 32,474 44,798 3,694 4,584 1,872 3,169 119,415 Costs and other items Crude oil and product purchases 6,083 2,843 28,194 39,967 1,950 3,561 972 2,109 85,679 Operating expenses, excl. depreciation and depletion (1) 3,035 2,513 2,313 2,117 1,175 1,038 502 497 13,190 Depreciation and depletion (includes impairments) 3,838 1,870 207 216 149 157 23 38 6,498 Interest expense ( 5 ) 6 2 3 — — 1 — 7 Other taxes and duties 68 329 731 4,492 15 47 4 50 5,736 Total costs and other deductions 13,019 7,561 31,447 46,795 3,289 4,803 1,502 2,694 111,110 Segment income (loss) before income taxes 2,024 6,220 1,027 ( 1,997 ) 405 ( 219 ) 370 475 8,305 Income tax expense (benefit) 450 1,956 301 ( 201 ) 86 ( 17 ) 97 90 2,762 Segment net income (loss) incl. noncontrolling interests 1,574 4,264 726 ( 1,796 ) 319 ( 202 ) 273 385 5,543 Net income (loss) attributable to noncontrolling interests — 101 65 127 — 7 ( 1 ) 8 307 Segment income (loss) 1,574 4,163 661 ( 1,923 ) 319 ( 209 ) 274 377 5,236 Reconciliation of consolidated revenues Segment revenues and other income 119,415 Other revenues (2) 170 Elimination of intersegment revenues ( 34,447 ) Total consolidated revenues and other income 85,138 Reconciliation of income (loss) attributable to ExxonMobil Total segment income (loss) 5,236 Corporate and Financing income (loss) ( 1,053 ) Net income (loss) attributable to ExxonMobil 4,183 (millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Three Months Ended March 31, 2026 Additions to property, plant and equipment (3) 3,275 1,885 851 166 152 25 34 19 6,407 As of March 31, 2026 Investments in equity companies 5,669 19,909 463 1,479 2,931 2,627 — 752 33,830 Total assets 153,871 137,240 39,224 54,765 17,682 18,097 2,887 7,843 431,609 Reconciliation to Corporate Total Segment Total Corporate and Financing Corporate Total Three Months Ended March 31, 2026 Additions to property, plant and equipment (3) 6,407 347 6,754 As of March 31, 2026 Investments in equity companies 33,830 ( 117 ) 33,713 Total assets 431,609 32,801 464,410 (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 $ 206 million . (3) Includes non-cash additions. 9 Table of Contents (millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Three Months Ended March 31, 2025 Revenues and other income Sales and other operating revenue 7,318 3,960 23,885 36,077 2,022 3,385 1,367 3,025 81,039 Income from equity affiliates 4 1,247 36 1 23 140 — ( 22 ) 1,429 Intersegment revenue 6,556 9,850 4,624 6,672 1,675 739 549 114 30,779 Other income ( 135 ) 374 56 24 1 ( 1 ) — 27 346 Segment revenues and other income 13,743 15,431 28,601 42,774 3,721 4,263 1,916 3,144 113,593 Costs and other items Crude oil and product purchases 5,429 3,261 25,106 35,046 2,154 3,015 997 2,079 77,087 Operating expenses, excl. depreciation and depletion (1) 2,763 2,281 2,082 2,159 1,063 1,084 472 570 12,474 Depreciation and depletion (includes impairments) 3,038 1,689 195 173 145 122 27 38 5,427 Interest expense 37 6 — 1 — — — — 44 Other taxes and duties 64 539 787 4,562 16 22 2 44 6,036 Total costs and other deductions 11,331 7,776 28,170 41,941 3,378 4,243 1,498 2,731 101,068 Segment income (loss) before income taxes 2,412 7,655 431 833 343 20 418 413 12,525 Income tax expense (benefit) 542 2,598 94 187 88 ( 6 ) 96 77 3,676 Segment net income (loss) incl. noncontrolling interests 1,870 5,057 337 646 255 26 322 336 8,849 Net income (loss) attributable to noncontrolling interests — 171 40 116 — 8 — 3 338 Segment income (loss) 1,870 4,886 297 530 255 18 322 333 8,511 Reconciliation of consolidated revenues Segment revenues and other income 113,593 Other revenues (2) 316 Elimination of intersegment revenues ( 30,779 ) Total consolidated revenues and other income 83,130 Reconciliation of income (loss) attributable to ExxonMobil Total segment income (loss) 8,511 Corporate and Financing income (loss) ( 798 ) Net income (loss) attributable to ExxonMobil 7,713 (millions of dollars) Upstream Energy Products Chemical Products Specialty Products Segment Total U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. Three Months Ended March 31, 2025 Additions to property, plant and equipment (3) 2,780 2,022 116 228 145 117 49 53 5,510 As of December 31, 2025 Investments in equity companies 5,491 19,429 460 1,048 2,946 2,616 — 775 32,765 Total assets 153,042 134,529 32,652 47,265 17,365 17,991 2,961 8,020 413,825 Reconciliation to Corporate Total Segment Total Corporate and Financing Corporate Total Three Months Ended March 31, 2025 Additions to property, plant and equipment ( 3) 5,510 519 6,029 As of December 31, 2025 Investments in equity companies 32,765 ( 112 ) 32,653 Total assets 413,825 35,155 448,980 (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 $ 363 million . (3) Includes non-cash additions. 10 Table of Contents Revenue from Contracts with Customers Sales and other operating revenue include both revenue within the scope of ASC 606 and outside the scope of ASC 606. Trade receivables in "Notes and accounts receivable – net" reported on the Balance Sheet also includes both receivables within the scope of ASC 606 and those outside the scope of ASC 606. Revenue and receivables outside the scope of ASC 606 primarily relate to physically settled commodity contracts accounted for as derivatives. Contractual terms, credit quality, and type of customer are generally similar between those revenues and receivables within the scope of ASC 606 and those outside it. Sales and other operating revenue (millions of dollars) Three Months Ended March 31, 2026 2025 Revenue from contracts with customers 56,866 56,931 Revenue outside the scope of ASC 606 26,295 24,127 Total 83,161 81,058 Geographic Sales and Other Operating Revenue (millions of dollars) Three Months Ended March 31, 2026 2025 United States 36,627 34,607 Non-U.S. 46,534 46,451 Total 83,161 81,058 Significant Non-U.S. revenue sources include: (1) Canada 7,483 6,990 (1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in non-U.S. operations where attribution to a specific country is not practicable. Note 4. Pension and Other Postretirement Benefits (millions of dollars) Three Months Ended March 31, 2026 2025 Components of net benefit cost Pension Benefits - U.S. Service cost 127 136 Interest cost 165 170 Expected return on plan assets ( 164 ) ( 149 ) Amortization of actuarial loss/(gain) 5 18 Amortization of prior service cost ( 8 ) ( 7 ) Net pension enhancement and curtailment/settlement cost ( 1 ) 36 Net benefit cost 124 204 Pension Benefits - Non-U.S. Service cost 72 78 Interest cost 239 222 Expected return on plan assets ( 231 ) ( 221 ) Amortization of actuarial loss/(gain) ( 10 ) 9 Amortization of prior service cost 15 13 Net pension enhancement and curtailment/settlement cost 28 — Net benefit cost 113 101 Other Postretirement Benefits Service cost 21 23 Interest cost 65 65 Expected return on plan assets ( 4 ) ( 4 ) Amortization of actuarial loss/(gain) ( 22 ) ( 24 ) Amortization of prior service cost ( 15 ) ( 15 ) Net benefit cost 45 45 11 Table of Contents Note 5. Other Comprehensive Income Information ExxonMobil Share of Accumulated Other Comprehensive Income (millions of dollars) Cumulative Foreign Exchange Translation Adjustment Postretirement Benefits Reserves Adjustment Total Balance as of December 31, 2024 ( 16,166 ) 1,547 ( 14,619 ) Current period change excluding amounts reclassified from accumulated other comprehensive income (1) 295 ( 36 ) 259 Amounts reclassified from accumulated other comprehensive income — 22 22 Total change in accumulated other comprehensive income 295 ( 14 ) 281 Balance as of March 31, 2025 ( 15,871 ) 1,533 ( 14,338 ) Balance as of December 31, 2025 ( 13,398 ) 2,535 ( 10,863 ) Current period change excluding amounts reclassified from accumulated other comprehensive income ( 1) ( 174 ) ( 29 ) ( 203 ) Amounts reclassified from accumulated other comprehensive income ( 5 ) ( 27 ) ( 32 ) Total change in accumulated other comprehensive income ( 179 ) ( 56 ) ( 235 ) Balance as of March 31, 2026 ( 13,577 ) 2,479 ( 11,098 ) (1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $ 55 million and $( 99 ) million in 2026 and 2025 , respectively. Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense) (millions of dollars) Three Months Ended March 31, 2026 2025 Foreign exchange translation gain/(loss) included in net income (Statement of Income line: Other income) 5 — Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs (Statement of Income line: Non-service pension and postretirement benefit expense) 35 ( 30 ) Income Tax (Expense)/Credit For Components of Other Comprehensive Income (millions of dollars) Three Months Ended March 31, 2026 2025 Foreign exchange translation adjustment 57 59 Postretirement benefits reserves adjustment (excluding amortization) 1 22 Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs 8 ( 7 ) Total 66 74 12 Table of Contents Note 6. Financial Instruments and Derivatives The estimated fair value of financial instruments and derivatives at March 31, 2026 and December 31, 2025 , and the related hierarchy level for the fair value measurement was as follows: March 31, 2026 (millions of dollars) Fair Value Level 1 Level 2 Level 3 Total Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value Assets Derivative assets (1) 42,237 8,357 — 50,594 ( 47,389 ) ( 281 ) — 2,924 Advances to/receivables from equity companies (2)(3) — 1,369 4,134 5,503 — — 226 5,729 Other long-term financial assets (4) 1,552 — 1,788 3,340 — — 228 3,568 Liabilities Derivative liabilities (5) 44,879 8,430 — 53,309 ( 47,389 ) ( 2,912 ) — 3,008 Long-term debt (6) 23,269 4,108 — 27,377 — — 3,382 30,759 Long-term obligations to equity companies (3) — — 562 562 — — — 562 Other long-term financial liabilities (7) — — 352 352 — — 13 365 December 31, 2025 (millions of dollars) Fair Value Level 1 Level 2 Level 3 Total Gross Assets & Liabilities Effect of Counterparty Netting Effect of Collateral Netting Difference in Carrying Value and Fair Value Net Carrying Value Assets Derivative assets (1) 5,197 2,259 — 7,456 ( 6,261 ) ( 341 ) — 854 Advances to/receivables from equity companies (2)(3) — 1,935 3,938 5,873 — — 256 6,129 Other long-term financial assets (4) 1,536 — 1,800 3,336 — — 216 3,552 Liabilities Derivative liabilities (5) 4,994 2,043 — 7,037 ( 6,261 ) ( 141 ) — 635 Long-term debt (6) 24,678 3,909 — 28,587 — — 3,248 31,835 Long-term obligations to equity companies (3) — — 542 542 — — — 542 Other long-term financial liabilities (7) — — 348 348 — — 16 364 (1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net. (2) Included in the Balance Sheet line: Investments, advances and long-term receivables. (3) 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 equity company. (4) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net. (5) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations. (6) Excluding finance lease obligations. (7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates. 13 Table of Contents At March 31, 2026 and December 31, 2025 , respectively, the Corporation had $ 1.9 billion and $ 0.5 billion of collateral under master netting arrangements not offset against the derivatives on the Condensed Consolidated Balance Sheet, primarily related to initial margin requirements. The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of March 31, 2026 , the Corporation has designated $ 3.4 billion of its Euro-denominated debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective. The Corporation had undrawn short-term committed lines of credit of $ 7.3 billion and undrawn long-term committed lines of credit of $ 0.3 billion as of the end of first quarter 2026 . Derivative Instruments The Corporation’s size, strong capital structure, geographic diversity, and the complementary nature of its business segments reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates, and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Condensed Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue" and in the Consolidated Statement of Cash Flows in “Cash Flows from Operating Activities” and included before-tax realized and unrealized losses of $ 3.8 billion and gains of $ 19 million for the periods ended March 31, 2026 and 2025 , respectively. The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2026 and December 31, 2025 , or results of operations for the periods ended March 31, 2026 and 2025 . The Corporation operates 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 as of the end of first quarter 2026 . Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting, and monitoring of derivative activity. The net notional long/(short) position of derivative instruments at March 31, 2026 and December 31, 2025 , was as follows: (millions) March 31, 2026 December 31, 2025 Crude oil (barrels) 25 6 Petroleum products (barrels) ( 47 ) ( 27 ) Natural gas (MMBTUs) ( 658 ) ( 449 ) Note 7. Litigation and Other Contingencies Litigation A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters, as well as other matters, which management believes should be disclosed. 14 Table of Contents State and local governments and other entities in various jurisdictions across the United States and its territories have filed a number of legal proceedings against several oil and gas companies, including ExxonMobil, requesting unprecedented legal and equitable relief for various alleged injuries purportedly connected to climate change. These lawsuits assert a variety of novel, untested claims under statutory and common law. Additional such lawsuits may be filed. We believe the legal and factual theories set forth in these proceedings are meritless and represent an inappropriate attempt to use the court system to usurp the proper role of policymakers in addressing the societal challenges of climate change. Local governments in Louisiana have filed unprecedented legal proceedings against a number of oil and gas companies, including ExxonMobil, requesting compensation for the restoration of coastal marsh erosion in the state. We believe the factual and legal theories set forth in these proceedings are meritless. While the outcome of any litigation can be unpredictable, we believe the likelihood is remote that the ultimate outcomes of these lawsuits will have a material adverse effect on the Corporation’s operations, financial condition, or financial statements taken as a whole. We will continue to defend vigorously against these claims. Other Contingencies The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2026 , for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. Where it is not possible to make a reasonable estimation of the maximum potential amount of future payments, future performance is expected to be either immaterial or have only a remote chance of occurrence. March 31, 2026 (millions of dollars) Equity Company Obligations (1) Other Third-Party Obligations Total Guarantees Non-debt-related 665 5,832 6,497 Total 665 5,832 6,497 (1) ExxonMobil share. Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition. Note 8. Divestment Activities Through March 31, 2026 , the Corporation realized proceeds of approximately $ 0.2 billion from its divestment activities with negligible impact on after-tax earnings. This included the sale of certain conventional assets in the United States , as well as other smaller divestments. In 2025 , the Corporation realized proceeds of approximately $ 3.2 billion and recognized net after-tax earnings of approximately $ 1.1 billion from its divestment activities. This included the sale of the Singapore retail fuels business, Mobil Argentina S.A., Product Solutions affiliates in France, certain conventional and unconventional assets in the United States, and other smaller divestments. 15 Table of Contents