2017 Shareholder meeting Morton H. Meyerson Symphony Center May - - PowerPoint PPT Presentation

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2017 Shareholder meeting Morton H. Meyerson Symphony Center May - - PowerPoint PPT Presentation

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2017 Shareholder meeting Morton H. Meyerson Symphony Center May 31, 2017 Robust strategy in a dynamic market Brent Todays market long on supply $/Barrel 150 Growing demand Dynamic markets, expect continued volatility

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2017

Morton H. Meyerson Symphony Center May 31, 2017

Shareholder meeting

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50 100 150 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17

Brent

Source: Platt’s

$/Barrel

Robust strategy in a dynamic market

ExxonMobil 2017 shareholder meeting

  • Today’s market long on supply
  • Growing demand
  • Dynamic markets, expect continued

volatility

  • Plans robust for any price environment
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3

World-class workforce delivering enduring value proposition

ExxonMobil 2017 shareholder meeting

Financial strength

Balance sheet provides financial flexibility across the cycle

Efficient cost structure

Relentless focus

  • n costs and

capital efficiency

Portfolio of

  • pportunities

High-quality assets; large inventory of accretive investments

Technology leadership

Enhancing long- term value through innovation and discovery

Operational excellence

Superior reliability and execution through disciplined approach and effective risk management

Value chain integration

Optionality allows capture of the highest value for each molecule

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4

Long-term focus on rigorous capital allocation yields highest returns in the industry

ExxonMobil 2017 shareholder meeting

1 Competitor data estimated on a consistent basis with ExxonMobil and based on public information. RDS 2008-2012 capital employed restated in 2013. 2016 Chemical sales not included: ExxonMobil 24.9 MT; Shell 17.3 MT; BP 14.2 MT

Downstream & Chemical ROCE and Petroleum Product Sales1

ROCE '07 to '16 Average Percent 2016 Petroleum Product Sales (MBD) 5 10 15 20 25 30 2.0 3.0 4.0 5.0 6.0 7.0

Total Chevron Shell BP Upstream ROCE and Volumes1

ROCE '07 to '16 Average Percent 2016 Volumes (MOEBD) 5 10 15 20 25 30 2.0 2.5 3.0 3.5 4.0 4.5

Total Chevron Shell BP

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Addressing growing global demand

  • Delivering benefits to society
  • Addressing the dual challenge:

− Providing affordable and reliable energy − Mitigating climate risk

  • Creating shareholder value

ExxonMobil 2017 shareholder meeting

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Affordable energy solutions are required to advance global prosperity

0.00 0.25 0.50 0.75 1.00 10 100 1000 10000 U.N. Human Development Index

2014 Index

Source: United Nations, ExxonMobil estimates

2014 Energy use per capita (thousand BTU/person/day)

United States Norway Nigeria Bangladesh India China ExxonMobil 2017 shareholder meeting OECD Non-OECD Oman

Living standards People Energy needs

X =

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200 400 600 800 1,000 1,200 2000 2020 2040

Middle class to reach more than 5 billion people

ExxonMobil 2017 shareholder meeting

Demand without efficiency

Energy efficiency Energy demand

Quadrillion BTUs

OECD Non-OECD Non-OECD 40 80 120 160

China India Other AP Africa Mid East Americas

Demand growth 2015-2040

Quadrillion BTUs

Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040
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250 500 750

All forms of energy are required to meet global needs

ExxonMobil 2017 shareholder meeting Quadrillion BTUs

Global mix of fuels 1850 1950 2000 1900

Biomass Coal Oil Gas Hydro Nuclear Solar, Wind, and Biofuels

2040

Forecast

Source: Smil, Energy Transitions (1800-1960), ExxonMobil 2017 The Outlook for Energy: A View to 2040
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Global energy-related emissions are likely to peak and gradually decline

ExxonMobil 2017 shareholder meeting

  • Reducing direct emissions
  • Helping consumers reduce emissions
  • Committed research to progress technology

breakthroughs

  • Effective policy to reduce risks at minimal societal cost

10 20 30 40 2000 2020 2040

Billion tonnes

Rest of non-OECD OECD China India Energy-related CO2 emissions

Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040; UNFCCC COP21 Synthesis Report 2015; ExxonMobil analysis

Estimate of Paris submissions

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Committed to research and contributing to solutions

ExxonMobil 2017 shareholder meeting

  • Research objectives:

− Fundamental science − Proprietary long-range technology − Inform policy decisions

  • Collaborate with researchers at universities

and national labs

  • Participate in IPCC, National Research Council
  • Active policy engagement, e.g. Climate

Leadership Council

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Innovation enhances supply options and enables efficiency savings

ExxonMobil 2017 shareholder meeting

0.0 0.2 0.4 0.6 0.8 1.0 1.2 1.4 1970 1980 1990 2000 2010 2020 2030 2040 Global average intensity

Index 2015

Energy / GDP CO2 / Energy CO2 / GDP

  • Technology unlocks new solutions
  • …and reduces CO2 and energy intensity

− Natural gas reduces emissions − Lightweight packaging − Lower-emission, higher-efficiency fuels and lubricants

  • Pursuing reliable, scalable, affordable, and

sustainable alternatives

Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040
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20 40 60 80 100 2015 2040 2040 Additional supplies needed

Meeting IEA scenarios requires more than $11 trillion of investment

ExxonMobil 2017 shareholder meeting

Liquids supply/demand1

Moebd

Existing Supplies Natural decline in absence of further investment Existing Supplies

+87

Moebd Reflects Paris submissions

(IEA New Policies Scenario)

~2ºC pathway

(IEA 450 Scenario)

+57

Moebd

1 Based on IEA sources, excludes biofuels and includes NGLs
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Leveraging technology to bring benefits to shareholders and society

ExxonMobil 2017 shareholder meeting

  • Responsibly meeting needs for affordable and reliable energy
  • Addressing environmental sustainability
  • Investing in communities
  • Highgrading asset and investment portfolio
  • Pursuing next-generation technologies
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4 8 12 S&P XOM CVX RDS TOT BP

  • Annual dividend up 8.8% per year over the

last 10 years

  • Announced 2Q17 dividend of $0.77 per

share, up 2.7% from previous quarter

  • Flexible share purchase program
  • More than $370B returned to shareholders

since the merger of Exxon and Mobil1 35 consecutive years of per-share dividend growth

ExxonMobil 2017 shareholder meeting

Annual dividend growth rate

Percent

1 Includes dividends and share purchases to reduce shares outstanding 2 TOT’s growth rates based on dividends in Euros; 2015 Dividend adjusted for timing impacts from implementation of scrip dividend program

'07 to '16 '12 to '16 2016

2 Source: Bloomberg
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Risk management maintains license to operate and creates value

ExxonMobil 2017 shareholder meeting

  • Ensuring personnel and process safety

− Best-ever safety performance in 2016

  • Maintaining excellence in operations and project

execution

  • Effectively managing security and geopolitical risks
  • Minimizing environmental impact
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Understanding and addressing the needs of communities

ExxonMobil 2017 shareholder meeting

  • Actively engage with stakeholders
  • Focus on human rights, community relations,

and indigenous peoples

  • Local hiring, training, and supplier development
  • Strategic community investments in long-term

social programs

Malaria initiative Investing in women Education

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More than 100

projects in development

Strategic choices across all business lines

Heavy Oil LNG Conventional

30% reduction

near-term Upstream project costs

Note: ExxonMobil is supporting the State of Alaska as it progresses Alaska LNG Upgrading molecule value Increasing higher-value products Increasing feedstock and logistics flexibility

ExxonMobil 2017 shareholder meeting

30% uplift

cash generation from Downstream & Chemical projects1

1 Incremental 2020 cash flow from operations of 17 projects with 2016-2019 start-up (estimate based on corporate plan price assumption and trendline estimates), versus 2016 cash flow from operations (base business)
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Growing opportunity base in the United States

ExxonMobil 2017 shareholder meeting

Bakken Uinta / Piceance San Juan Permian1 Ardmore/ Marietta Fayetteville Utica/ Marcellus Haynesville Eagle Ford Freestone Barnett Montney/ Duvernay Liquids-prone Gas-prone 1 Includes unconventional and conventional production / acreage operated by XTO 1 M net acres Raton
  • Evolving portfolio since XTO acquisition,

about 700 KOEBD production1

  • Growth in liquids-rich resources
  • Advantaged Permian position
  • Large, price-resilient inventory of drilling
  • pportunities
  • Capturing significant efficiency gains and

applying technology

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Significant opportunities from wellhead to customer

ExxonMobil 2017 shareholder meeting

  • Growing U.S. unconventional production
  • Investing in advantaged logistics and

manufacturing

  • Advantaged feedstock, high-value sales
  • Optionality to maximize value
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Meeting global demand with leading Downstream and Chemical portfolios

ExxonMobil 2017 shareholder meeting

  • Expanding capacity on the U.S. Gulf Coast
  • Growing advantaged crude and gas processing
  • Manufacturing new, high-value products
  • Improving logistics capabilities
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Accelerated value capture

ExxonMobil 2017 shareholder meeting

  • High-potential exploration program

− Supported by proprietary seismic imaging technology

  • More than 1.5 BOEB recoverable resource

discovered

  • Progressing multi-phase development scope

Sea floor view

Liza Phase 1 Liza Phase 2

KBD gross

300 150

Future potential

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Significant advantages; attractive growth opportunities

ExxonMobil 2017 shareholder meeting

  • World-class LNG project
  • Potential capital-efficient, multi-train

expansion

  • Active exploration program
  • Extensive social and environmental

programs

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Access to world-class gas resources

ExxonMobil 2017 shareholder meeting

  • Acquiring 25% interest in Area 4 with 85 TCF in place

− ExxonMobil to operate >40 MTA onshore LNG facilities − Leveraging ExxonMobil’s industry-leading project and operational capabilities

  • Ongoing evaluation of 3 high-potential exploration blocks

Area 4

XOM awards 100 200 Km 100 200Kilometers Area 4 acquisition Awarded to others Gas Fields

Tanzania Mozambique Malawi

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Innovation is critical to meeting the dual challenge

ExxonMobil 2017 shareholder meeting

  • Committed to fundamental science
  • Technology development focused on scalable applications to create value
  • Approximately $1 billion invested in research annually
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Pioneering scientific research to improve existing supply and manage carbon intensity

ExxonMobil 2017 shareholder meeting

  • Improving profitability:

− High-performance computing − Advanced motor oils, performance plastics − Extended-reach drilling and hydraulic fracturing

  • Pursuing innovations to reduce emissions and

carbon intensity :

− Carbon capture and storage − Process intensification − Second-generation biofuels

  • Proven technology leadership
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Operating safely and responsibly to improve the world’s access to energy

ExxonMobil 2017 shareholder meeting

  • Technology is the foundation of our business:

− Improving efficiency and unlocking new opportunities − Meeting the dual challenge

  • Portfolio of attractive opportunities
  • Disciplined investing for financial leadership
  • Positioned to excel in any price environment
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  • Dr. Vijay Swarup, Vice President, ExxonMobil Research and Engineering

Spotlight

Technology

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28 ExxonMobil 2017 shareholder meeting

1960 1940 1970 1980 1950 1990

Advanced metallurgy Plastic Tire rubber Ultra-deepwater development

2000

Synthetic catalyst 3D seismic Digital simulator Low-sulfur gasoline High-

  • ctane

gasoline

2010

Mobil 1 synthetic lubricant Lithium batteries

Today

Specialty plastics Ultra-low sulfur diesel Mobil 1 Annual protection Extended- reach drilling

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Developing breakthrough technologies

ExxonMobil 2017 shareholder meeting

Increase supply Improve efficiency Good science for sound policy Expand energy access Mitigate emissions

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  • Today’s approach:

High temperature, high pressure, and complex

  • Our research:

Novel processes and materials, less energy

+ +

Oil Membrane Low-energy reactor

ExxonMobil 2017 shareholder meeting

Fuels Chemicals

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Natural gas

Exhaust (CO2) CO2 to storage

Power generation Carbon capture

Electricity Electricity

  • Today’s approach:

Power consuming, complex

  • Our research:

Natural gas power generation without CO2 emissions

ExxonMobil 2017 shareholder meeting

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Sunlight + CO2 + H2O + Photosynthesis Biofuels

  • Today’s approach:

Small scale, competes with food and water

  • Our research:

Large scale, global solutions, non-competitive with food and water

ExxonMobil 2017 shareholder meeting

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33 ExxonMobil 2017 shareholder meeting

  • Committed to R&D
  • Growing low-emissions portfolio
  • Many external R&D partnerships
  • Highly skilled workforce
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Meeting world’s growing energy needs while mitigating impacts

ExxonMobil 2017 shareholder meeting

  • Bringing benefits to shareholders

and society

  • Unwavering commitment to

technology

  • Well positioned to create value
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2017

Morton H. Meyerson Symphony Center May 31, 2017

Shareholder meeting