Exxon Mobil Corp 10-Q

ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS Due to rounding, numbers presented may not add up precisely to the totals indicated. FORWARD-LOOKING STATEMENTS Statements related to future events; projections; descriptions of strategic, operating, and financial plans and objectives; 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, lower-emission fuels, hydrogen and 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 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 integrated Upstream Permian Basin unconventional operated 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; maintenance and turnaround activity; drilling and improvement programs; product sales levels and mix; business and project plans, timing, costs, capacities and profitability; resource recoveries and production rates; and planned Denbury and Pioneer integrated benefits, could differ materially due to a number of factors. These include global or regional changes or imbalances in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors; economic conditions and seasonal fluctuations that impact prices, differentials, margins, 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 voluntary or mandatory standards or extraterritorial laws and regulations imposed by various jurisdictions related to sustainability and greenhouse gas reporting; timely granting of governmental permits, licenses, and certifications; uncertain impacts of deregulation on the legal and regulatory environment; price impacts and the broader government responses to inflationary pressures; changes in interest and exchange rates; variable impacts of trading activities and derivative positions, including timing effects, on our margins and results each quarter; actions of co-venturers or partners, competitors and commercial counterparties, including suppliers and customers; government actions in pursuit of national energy and security policies and priorities affecting our business; 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; adoption of regulatory incentives consistent with law; reservoir performance and optimization, including variability and timing factors applicable to unconventional resources, the success of new unconventional and AI-enhanced technologies, and the ability of new technologies to improve drilling performance and recovery relative to competitors; the level, outcome, and timing of exploration and development projects and decisions to invest in future reserves and resources; timely completion of construction projects and commencement of start-up operations, including reliance on third-party suppliers and service providers; final management approval of future projects and any changes in the scope, terms, costs or assumptions of such projects as approved; the actions of governments, non-governmental organizations, or other actors against our core business activities and acquisitions, divestitures or financing opportunities; war, civil unrest, armed hostilities, attacks against the company or industry, and other geopolitical or security disturbances, including disruption of land or sea transportation routes or distribution or shipping channels; decoupling of economies; disruption, realignment, or breaking of current or historical trade or military alliances or global trade and supply chain networks; escalating geopolitical volatility, including regime changes; expropriations, seizure, or capacity, insurance, shipping, import or export limitations imposed directly or indirectly 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 without impairing our competitive positioning; unforeseen technical or operating disruptions or difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; consumer preferences including willingness and ability to pay for 20 Table of Contents reduced emission products; the results of research programs and the ability to bring new technologies to commercial scale on a cost-competitive basis; and other factors discussed under "Item 1A. Risk Factors" of ExxonMobil’s 2025 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 or any other regulatory authority. 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 Outlook is reflective of the existing global policy environment and an assumption of increasing policy stringency and technology improvement to 2050. Current trends for policy stringency and development of lower-emission solutions are not yet on a pathway to achieve net-zero by 2050. As such, the Outlook does not project the degree of required future policy and technology advancement and deployment for the world, or ExxonMobil, to meet net zero by 2050. As future policies and technology advancements emerge, they will be incorporated into the Outlook, and ExxonMobil’s business plans will be updated accordingly. References to projects or opportunities may not reflect investment decisions made by ExxonMobil or its affiliates. Individual projects or opportunities may advance based on a number of factors, including availability of stable and supportive policy, permitting, technological advancement for cost-effective abatement, insights from the Corporate planning process, and alignment with our partners and other stakeholders. Capital investment guidance in lower-emission investments is based on our Corporate plan; however, actual investment levels will be subject to the availability of the opportunity set and public policy support, and focused on returns. 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. 21 Table of Contents Overview Market conditions continued to be heavily influenced by supply disruptions in the Middle East and global refining capacity reductions d uring the second quarter of 2026 . A verage crude oil prices remained within the 10-year historical range (2010-2019) with reduced refining capacity and inventory releases. Natural gas prices remained elevated above the 10-year average with ongoing supply disruptions. Global industry refining margins were sharply above the 10-year historical range due to unprecedented global refining capacity reductions. Chemical margins improved but remained below the bottom of the 10- year range with regional supply constraints impacting product availability, particularly in Asia. Selected Earnings Driver Definitions The earnings drivers provide additional visibility into our business results. The Corporation 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 e arnings impacts from change in volume/mix from advantaged assets, advantaged projects, and high-value products. Occasionally, additional granularity is provided to aid investors. For example, Middle East volumes are presented separately in this filing. • Advantaged Assets (Advantaged growth projects). 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. Includes performance products and lower-emission fuels. Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users. Lower-emission fuels refers to fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport. Base Volume. Represents all volume/mix drivers not included in Advantaged Volume Growth defined above. Occasionally, additional granularity is provided to aid investors. For example, Middle East volumes are presented separately in this filing. Structural Cost Savings. Represents a fter-tax earnings effects of Structural Cost Savings as defined on page 23 , including cash operating expenses related to divestments. Expenses. Represents all expenses otherwise not included in other earnings drivers. Estimated Timing Effects. Represents timing effects that are primarily related to unsettled derivatives which are required to be marked to current period-end prices (mark-to-market), where the associated physical shipments are not reflected in earnings until the physical transaction is complete. It also includes estimated recognition differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting). Impacts are expected to unwind in subsequent periods. Identified Items. Represents individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The impact of an Identified Item for an individual segment may be less than $250 million when the item impacts several segments or several periods. 22 Table of Contents Cash Capital Expenditures (Non-GAAP) Cash c apital 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 "I nflows from noncontrolling interests for major projects", each from the Consolidated Statement of Cash Flows, and excludes advances and collections not related to capital expenditures or equity investments, for example, supply and marketing related advances and associated collections. 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 June 30, 2026 2025 2026 2025 Additions to property, plant and equipment 6,527 6,283 12,997 12,181 Additional investments and advances 324 319 711 472 Other investing activities including collection of advances (102) (246) (734) (339) Inflows from noncontrolling interests for major projects — (23) — (45) Less: Advances and collections not related to capital expenditures or equity investments 38 270 — 270 Total Cash Capex (Non-GAAP) 6,787 6,603 12,974 12,539 Upstream 5,852 5,669 10,664 10,662 Energy Products 527 432 1,525 810 Chemical Products 307 279 489 570 Specialty Products 11 97 66 207 Other 90 126 230 290 Total Cash Capex (Non-GAAP) 6,787 6,603 12,974 12,539 23 Table of Contents 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 $16.3 billion , which included an additional $1.2 billion in the first six months of 2026 . 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. Structural Cost Savings are stewarded internally to support management's oversight of spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management. Dollars in billions (unless otherwise noted) Twelve Months Ended December 31, Six Months Ended June 30, 2019 2025 2025 2026 Components of Operating Costs From ExxonMobil’s Consolidated Statement of Income (U.S. GAAP) Production and manufacturing expenses 36.8 42.4 20.2 22.9 Selling, general and administrative expenses 11.4 11.1 5.1 5.2 Depreciation and depletion (includes impairments) 19.0 26.0 11.8 15.5 Exploration expenses, including dry holes 1.3 1.0 0.3 0.3 Non-service pension and postretirement benefit expense 1.2 0.4 0.2 0.1 Subtotal 69.7 81.0 37.6 43.9 ExxonMobil’s share of equity company expenses (Non-GAAP) 9.1 10.6 5.2 4.3 Total Adjusted Operating Costs (Non-GAAP) 78.8 91.6 42.8 48.2 Total Adjusted Operating Costs (Non-GAAP) 78.8 91.6 42.8 48.2 Less: Depreciation and depletion (includes impairments) 19.0 26.0 11.8 15.5 Non-service pension and postretirement benefit expense 1.2 0.4 0.2 0.1 Other adjustments (includes equity company depreciation and depletion) 3.6 6.2 2.4 4.2 Total Cash Operating Expenses (Cash Opex) (Non-GAAP) 55.0 59.0 28.4 28.5 Energy and production taxes (Non-GAAP) 11.0 14.9 7.6 6.6 Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP) 44.0 44.1 20.8 21.9 Change vs 2019 Change vs 2025 Estimated Cumulative vs 2019 Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP) +0.1 +1.1 Market +4.9 +0.9 Activity / Other +10.3 +1.4 Structural Cost Savings -15.1 -1.2 -16.3 24 Table of Contents REVIEW OF SECOND QUARTER 2026 RESULTS ExxonMobil’s second quarter 2026 earnings were $14.5 billion , compared to $7.1 billion a year earlier. Markets were supportive, but our performance reflected the strength of the portfolio and operating model. The increase in earnings was driven by higher prices and margins, advantaged investments across Upstream and Energy Products , and structural cost savings. This increase was partly offset by h igher expenses related to depreciation, lower volumes from scheduled maintenance and Middle East disruptions, and identified items, primarily impairments and financial reserves . Cash c apital expenditure s were $6.8 billion , up $0.2 billion from second quarter 2025 . Earnings for the first six months of 2026 were $18.7 billion , compared to $14.8 billion a year earlier . Cash capital expenditures were $13.0 billion , up $0.4 billion from the first six months of 2025 . The Corporation distributed $8.6 billion in dividends to shareholders and repurchased $10.0 billion of common stock. UPSTREAM Upstream Financial Results Three Months Ended June 30, Six Months Ended June 30, (millions of dollars) 2026 2025 2026 2025 Earnings (loss) (U.S. GAAP) United States 1,920 1,212 3,494 3,082 Non-U.S. 6,007 4,190 10,170 9,076 Total 7,927 5,402 13,664 12,158 Upstream Second Quarter Earnings Driver Analysis (millions of dollars) Volume / Mix Price – Increased earnings by $4,650 million , on higher crude realizations, partly offset by lower gas realizations. Advantaged Volume Growth – Increased earnings by $1,140 million , mainly driven by Guyana and Permian growth . Base Volume – Decreased earnings by $130 million . Middle East Volume - Decreased earnings by $1,060 million due to Middle East disruption impacts. Structural Cost Savings – Increased earnings by $170 million . Expenses – Decreased earnings by $690 million due to higher depreciation. Other – Decreased earnings by $170 million mainly due to one-time tax impacts and absence of divestments. Estimated Timing Effects – Decreased earnings by $180 million , mainly from unfavorable derivatives mark-to-market impacts. Identified Items – 2Q26 $(1,199) million loss from financial reserves . 25 Table of Contents Upstream Year-to-Date Earnings Driver Analysis (millions of dollars) Volume / Mix Price – Increased earnings by $4,200 million , on higher crude realizations, partly offset by lower gas realizations . Advantaged Volume Growth – Increased earnings by $1,940 million , mainly driven by Guyana and Permian growth. Base Volume – Decreased earnings by $590 million from divestments and Kazakhstan downtime. Middle East Volume - Decreased earnings by $1,280 million due to Middle East disruption impacts. Structural Cost Savings – Increased earnings by $340 million . Expenses – Decreased earnings by $1,510 million mainly due to higher depreciation . Other – Increased earnings by $470 million , mainly from net favorable tax items. Estimated Timing Effects – Decreased earnings by $870 million , mainly from unfavorable derivatives mark-to-market impacts. Identified Items – 2026 $(1,199) million loss from financial reserves. Upstream Operational Results Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net production of crude oil, natural gas liquids, bitumen and synthetic oil (thousands of barrels daily) United States 1,653 1,494 1,620 1,456 Canada/Other Americas 922 797 929 779 Europe 3 3 3 4 Africa 121 139 130 138 Asia 647 801 629 799 Australia/Oceania 26 25 24 25 Worldwide 3,373 3,259 3,335 3,201 Net natural gas production available for sale (millions of cubic feet daily) United States 3,840 3,313 3,715 3,290 Canada/Other Americas 25 24 26 33 Europe 274 312 293 321 Africa 117 106 116 112 Asia 1,274 3,206 1,883 3,331 Australia/Oceania 1,319 1,258 1,278 1,257 Worldwide 6,849 8,219 7,311 8,344 Oil-equivalent production (1) 4,514 4,630 4,554 4,591 (thousands of oil-equivalent barrels daily) (1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. 26 Table of Contents Upstream Additional Information (thousands of barrels daily) Three Months Ended June 30, Six Months Ended June 30, Volumes reconciliation (Oil-equivalent production) (1) 2025 4,630 4,591 Entitlements - Net Interest (5) (16) Entitlements - Price / Spend / Other (20) 7 Government Mandates — (2) Divestments (34) (52) Growth / Other (57) 26 2026 4,514 4,554 (1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels. 2Q 2026 versus 2Q 2025 2Q 2026 production of 4.5 million oil-equivalent barrels per day decreased 116 thousand oil- equivalent barrels per day from 2Q 2025 , driven by Middle East disruption impacts, mostly offset by Permian and Guyana growth. YTD 2026 versus YTD 2025 4.6 million oil-equivalent barrels per day in 2026 decreased 37 thousand oil-equivalent barrels per day from 2025 , driven by Middle East disruption impacts, mostly offset by Permian and Guyana growth. 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 / 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. For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs. These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas. 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 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. 27 Table of Contents ENERGY PRODUCTS Energy Products Financial Results Three Months Ended June 30, Six Months Ended June 30, (millions of dollars) 2026 2025 2026 2025 Earnings (loss) (U.S. GAAP) United States 2,987 825 3,648 1,122 Non-U.S. 2,478 541 555 1,071 Total 5,465 1,366 4,203 2,193 Energy Products Second Quarter Earnings Driver Analysis (millions of dollars) Volume / Mix Margin – Increased earnings by $3,180 million from stronger refining margins . Advantaged Volume Growth – Consistent focus on growing advantaged capacity and optimizing assets and products increased earnings by $270 million . Base Volume – Decreased earnings by $280 million , mainly driven scheduled maintenance . Middle East Volume - Decreased earnings by $310 million due to Middle East supply disruptions impacting global operations. Structural Cost Savings – Increased earnings by $110 million . Expenses – Decreased earnings by $170 million , driven by growth projects and scheduled maintenance. Other – Decreased earnings by $80 million , driven by unfavorable foreign exchange rate effects. Estimated Timing Effects – Increased earnings by $2,560 million , on fa vorable derivative mark-to-market impacts. Identified Items – 2Q26 $(1,180) million loss m ainly from impairments. 28 Table of Contents Energy Products Year-to-Date Earnings Driver Analysis (millions of dollars) Volume / Mix Margins – Increased earnings by $5,530 million from stronger refining margins and improved trading and optimization. Advantaged Volume Growth – Consistent focus on growing advantaged capacity and optimizing assets and products increased earnings by $410 million . Base Volume – Decreased earnings by $330 million , mainly driven by scheduled maintenance. Middle East Volume - Decreased earnings by $460 million due to Middle East supply disruptions impacting global operations. Structural Cost Savings – Increased earnings by $380 million . Expenses – Decreased earnings by $600 million , primarily driven by higher scheduled maintenance and growth projects . O ther – Decreased earnings by $260 million , mainly driven by unfavorable foreign exchange rate effects. Estimated Timing Effects – Decreased earnings by $770 million , primarily from rising crude prices. Identified Items – 2026 $(1,886) million loss due to impairments and supply disruptions in the Middle East preventing physical shipments associated with hedges. Energy Products Operational Results Three Months Ended June 30, Six Months Ended June 30, (thousands of barrels daily) 2026 2025 2026 2025 Refinery throughput United States 1,908 1,969 1,852 1,880 Canada 331 376 358 387 Europe 814 969 774 977 Asia Pacific 317 442 351 444 Other 192 180 194 185 Worldwide 3,562 3,936 3,528 3,873 Energy Products sales (1) United States 3,036 2,906 3,124 2,817 Non-U.S. 2,662 2,682 2,539 2,619 Worldwide 5,698 5,588 5,664 5,436 Gasoline, naphthas 2,166 2,294 2,190 2,229 Heating oils, kerosene, diesel 1,722 1,808 1,697 1,766 Aviation fuels 431 387 415 376 Heavy fuels 169 247 178 203 Other energy products 1,210 852 1,184 862 Worldwide 5,698 5,588 5,664 5,436 (1) Data reported net of purchases/sales contracts with the same counterparty. 29 Table of Contents CHEMICAL PRODUCTS Chemical Products Financial Results Three Months Ended June 30, Six Months Ended June 30, (millions of dollars) 2026 2025 2026 2025 Earnings (loss) (U.S. GAAP) United States 599 255 918 510 Non-U.S. 532 38 323 56 Total 1,131 293 1,241 566 Chemical Products Second Quarter Earnings Driver Analysis (millions of dollars) Volume / Mix Margin – Increased earnings by $980 million from increased North America ethane feed advantage and performance chemical margins . Advantaged Volume Growth – Decreased earnings by $130 million from weak Asia Pacific market dyna mics. Base Volume – Increased earnings by $70 million . Structural Cost Savings – Increased earnings by $20 million . Expenses – Increased earnings by $40 million . Other – Decreased earnings by $60 million . Identified Items – 2Q26 $(83) million loss . 30 Table of Contents Chemical Products Year-to-Date Earnings Driver Analysis (millions of dollars) Volume / Mix Margins – Increased earnings by $570 million , mainly from increased North America ethane feed advantage and performance chemical margins. Advantaged Volume Growth – Increased earnings by $10 million . Base Volume – Increased earnings by $170 million from regional product mix . Structural Cost Savings – Increased earnings by $150 million . Expenses – Decreased earnings by $50 million . Other – Decreased earnings by $90 million . Identified Items – 2026 $(83) million loss . Chemical Products Operational Results Three Months Ended June 30, Six Months Ended June 30, (thousands of metric tons) 2026 2025 2026 2025 Chemical Products sales (1) United States 1,682 1,771 3,586 3,477 Non-U.S. 2,788 3,493 6,243 6,563 Worldwide 4,471 5,264 9,829 10,040 (1) Data reported net of purchases/sales contracts with the same counterparty. 31 Table of Contents SPECIALTY PRODUCTS Specialty Products Financial Results Three Months Ended June 30, Six Months Ended June 30, (millions of dollars) 2026 2025 2026 2025 Earnings (loss) (U.S. GAAP) United States 287 291 561 613 Non-U.S. 669 489 1,046 822 Total 956 780 1,607 1,435 Specialty Products Second Quarter Earnings Driver Analysis (millions of dollars) Volume / Mix Margin – Increased earnings by $270 million on higher basestock margins . Advantaged Volume – Increased earnings by $10 million . Base Volume – Decreased earnings by $30 million . Middle East Volume - Decreased earnings by $110 million due to supply disruptions. Structural Cost Savings – Increased earnings by $30 million . Expenses – Decreased earnings by $20 million . Other – Increased earnings by $40 million . Identified Items – 2Q26 $(13) million loss . 32 Table of Contents Specialty Products Year-to-Date Earnings Driver Analysis (millions of dollars) Volume / Mix Margins – Increased earnings by $120 million on higher basestock margins on supply disruptions . Advantaged Volume Growth – Increased earnings by $10 million . Base Volume – Decreased earnings by $30 million . Middle East Volume - Decreased earnings by $50 million . Structural Cost Savings – Increased earnings by $80 million . Expenses – Decreased earnings by $10 million . Other – Increased earnings by $60 million . Identified Items – 2026 $(13) million loss . Specialty Products Operational Results Three Months Ended June 30, Six Months Ended June 30, (thousands of metric tons) 2026 2025 2026 2025 Specialty Products sales (1) United States 367 504 903 977 Non-U.S. 1,418 1,500 2,857 2,963 Worldwide 1,784 2,004 3,760 3,940 (1) Data reported net of purchases/sales contracts with the same counterparty. CORPORATE AND FINANCING Corporate and Financing Financial Results Three Months Ended June 30, Six Months Ended June 30, (millions of dollars) 2026 2025 2026 2025 Earnings (loss) (U.S. GAAP) (954) (759) (2,007) (1,557) Corporate and Financing expenses were $954 million for the second quarter of 2026 , $195 million higher than the second quarter of 2025 , due to lower interest income and unfavorable tax impacts. Corporate and Financing expenses were $2,007 million for the first six months of 2026 , $450 million higher than 2025 , due to lower interest income and the absence of favorable tax items. (1) Net debt is total debt of $42.4 billion less $10.6 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 $266.1 billion . Total debt is the sum of notes and loans payable and long-term debt, as reported in the Consolidated Balance Sheet. 33 Table of Contents LIQUIDITY AND CAPITAL RESOURCES (millions of dollars) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net cash provided by/(used in) Operating activities 32,260 24,503 Investing activities (12,325) (10,315) Financing activities (19,865) (22,264) Effect of exchange rate changes (163) 600 Increase/(decrease) in cash and cash equivalents (93) (7,476) Cash and cash equivalents (at end of period) 10,588 15,711 Cash flow from operations and asset sales Net cash provided by operating activities (U.S. GAAP) 23,555 11,550 32,260 24,503 Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments 430 176 649 1,999 Cash flow from operations and asset sales (Non-GAAP) 23,985 11,726 32,909 26,502 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 2026 was $24.0 billion , an increase of $12.3 billion from the comparable 2025 period. Cash provided by operating activities totaled $32.3 billion for the first six months of 2026 , $7.8 billion higher than 2025 . Net income including noncontrolling interests was $19.4 billion , an increase of $4.0 billion from the prior year period. The adjustment for the noncash provision of $15.5 billion for depreciation and depletion was up $3.7 billion from 2025 . Changes in operational working capital were a reduction of $3.9 billion during the period. All other items net increased cash flows by $1.3 billion in 2026 versus an increase of $2.2 billion in 2025 . See the Condensed Consolidated Statement of Cash Flows for additional details. Investing activities for the first six months of 2026 used net cash of $12.3 billion , an increase of $2.0 billion compared to the prior year. Spending for additions to property, plant and equipment of $13.0 billion was $0.8 billion higher than 2025 . Proceeds from asset sales were $0.6 billion , a decrease of $1.4 billion compared to the prior year. Net investments and advances decreased $0.2 billion from $0.1 billion in 2025 . Net cash used in financing activities was $19.9 billion in the first six months of 2026 , including $10.0 billion for the purchase of 66.7 million shares of ExxonMobil stock, as part of the previously announced buyback program. This compares to net cash used in financing activities of $22.3 billion in the prior year. Total debt at the end of the second quarter of 2026 was $42.4 billion compared to $43.5 billion at year-end 2025 . The Corporation's debt to total capital ratio was 13.7 percent at the end of the second quarter of 2026 compared to 14.0 percent at year-end 2025 . The net debt to capital ratio (1) was 10.7 percent at the end of the second quarter, a decrease of 0.3 percentage points from year-end 2025 . 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 2026 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. 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 $7.4 billion and undrawn long-term committed lines of credit of $0.3 billion as of the end of second quarter 2026 . The Corporation’s financial strength enables it to make large, long-term capital expenditures. Cash capex in the second quarter of 2026 was $6.8 billion , up $0.2 billion from the second quarter of 2025 . The Corporation plans to invest in the range of $27 billion to $29 billion in 2026 . Actual spending could vary depending on the progress of individual projects. 34 Table of Contents The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating acquisitions include strategic fit, cost synergies, potential for future growth, low cost of supply, and attractive valuations. Acquisitions may be made with cash, shares of the Corporation’s common stock, or both. We also opportunistically may use our cash and available liquidity to repurchase or retire our debt. Litigation and other contingencies are discussed in Note 7 to the unaudited Condensed Consolidated Financial Statements. TAXES (millions of dollars) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Income taxes 4,543 3,351 7,038 6,918 Effective income tax rate 24% 34% 29% 34% Total other taxes and duties (1) 6,112 7,204 12,887 14,270 Total 10,655 10,555 19,925 21,188 (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 $10.7 billion for the second quarter of 2026 , an increase of $0.1 billion from 2025 . Income tax expense was $4.5 billion compared to $3.4 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 24 percent , 10 percent lower than 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 $1.1 billion to $6.1 billion . Total taxes were $19.9 billion for the first six months of 2026 , a decrease of $1.3 billion from 2025 . Income tax expense increased by $0.1 billion to $7.0 billion . The effective income tax rate of 29 percent was 5 percent down compared to the prior year period due primarily to portfolio mix effects. Total other taxes and duties decreased by $1.4 billion to $12.9 billion . ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK Information about market risks for the six months ended June 30, 2026 , does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2025 .