ExxonMobil announces second-quarter 2023 results

SPRING, Texas – July 28, 2023 – Exxon Mobil Corporation today announced second-quarter 2023 earnings of $7.9 billion, or $1.94 per share assuming dilution. Capital and exploration expenditures were $6.2 billion in the second quarter and $12.5 billion for the first half of 2023, in line with the company's full-year guidance of $23 billion to $25 billion.
  • Structural earnings improvements contributed to strong second-quarter earnings of $7.9 billion
  • Achieved record quarterly production in the Permian and Guyana, demonstrating excellent operational performance
  • Highest second-quarter global refinery throughput in the last 15 years1
  • Expanded leadership in carbon capture and storage by agreeing to acquire Denbury and reaching 5 million metric tons per year of CO2 offtake contracts with industrial customers2

Results Summary

2Q23

1Q23

Change vs 1Q23

2Q22

Change vs 2Q22

Dollars in millions (except per share data)

YTD 2023

YTD 2022

Change vs YTD 2022

7,880 11,430 -3,550 17,850 -9,970 Earnings (U.S. GAAP) 19,310 23,330 -4,020
7,874 11,618 -3,744 17,551 -9,677 Earnings Excluding Identified Items (non-GAAP) 19,492 26,384 -6,892
1.94 2.79 -0.85 4.21 -2.27

Earnings Per Common Share3

4.73 5.49 -0.76
1.94 2.83 -0.89 4.14 -2.20

Earnings Excl. Identified Items Per Common Share3

4.77 6.21 -1.44
6,166 6,380 -214 4,609 +1,557 Capital and Exploration Expenditures 12,546 9,513 +3,033

“The work we've been doing to improve our underlying profitability is reflected in our second-quarter results, which doubled from what we earned in a comparable industry commodity price environmentjust five years ago,” said Darren Woods, chairman and chief executive officer.

“Earnings totaled more than $19 billion during the first half of the year, and we are on track to structurally reduce costs by $9 billion at year end compared to 2019. Production is up 20% year-over-year in Guyana and the Permian, and we are playing a leading role in the industry's energy transition with an agreement to acquire Denbury and with three world-scale CO2 offtake agreements. This reflects the significant opportunity to profitably grow our Low Carbon Solutions business by creating a compelling customer decarbonization proposition with the potential to reduce Gulf Coast industrial emissions by 100 million metric tons per year5.”

1Highest second-quarter global refinery throughput in the last 15 years (2009-2023) based on current refinery circuit.
2Based on contracts to move 5 MTA starting in 2025 subject to additional investment by ExxonMobil and permitting for carbon capture and storage projects.
3Assuming dilution.
4Based on ExxonMobil's assessment of historical industry commodity prices and margins referencing Intercontinental Exchange (ICE), S&P Global Platts, IHS Markit as well as company estimates and analysis, the second-quarter 2023 industry commodity price environment is comparable to the second-quarter of 2018. General industry commodity price environment comparisons may not be a complete match for individual segments.
5Subject to additional investment by ExxonMobil and permitting for carbon capture and storage projects. 

Second-Quarter 2023 Financial Highlights

  • Earnings were $7.9 billion compared with first-quarter earnings of $11.4 billion. Excluding the identified item associated with additional European taxes on the energy sector, earnings were $7.9 billion compared with $11.6 billion in the prior quarter.
  • Lower natural gas realizations and industry refining margins adversely impacted earnings. Results benefited from the absence of prior quarter unfavorable derivative mark-to-market impacts.
  • The company remains on track to deliver $9 billion of structural cost savings by the end of 2023 relative to 2019, having achieved cumulative structural cost savings of $8.3 billion to date.
  • Cash flow from operations totaled $9.4 billion and free cash flow was $5.0 billion, which includes a net working capital impact of $3.6 billion primarily driven by higher seasonal cash tax payments. Cash flow from operations excluding working capital was $13.0 billion. The company's debt-to-capital ratio remained at 17% and net-debt- to-capital ratio was 5%, reflecting a period-end cash balance of $29.6 billion.
  • The three new central organizations formed this past quarter, Global Business Solutions, ExxonMobil Supply Chain, and Global Trading, are off to a good start, further leveraging the company's scale and integrated business model to lower cost and improve performance. 

Shareholder Distributions

  • Second-quarter shareholder distributions of $8.0 billion included $4.3 billion of share repurchases and $3.7 billion of dividends.
  • The Corporation declared a third-quarter dividend of $0.91 per share, payable on Sept. 11, 2023, to shareholders of record of Common Stock at the close of business on Aug. 16, 2023.

ADVANCING CLIMATE SOLUTIONS

Carbon Capture and Storage1

  • Already a global leader in carbon capture and storage (CCS), ExxonMobil expanded its position further by entering into a definitive agreement to acquire Denbury Inc. The planned acquisition provides ExxonMobil with one of the largest owned and operated carbon dioxide (CO2) pipeline networks in the United States at 1,300 miles, most of which is located along the U.S. Gulf Coast, one of the largest U.S. markets for CO2 emissions. The planned acquisition includes 10 strategically located onshore sequestration sites as well as Denbury's 20- plus years of expertise in transporting and storing CO2. An established, cost-efficient transportation and storage system accelerates CCS deployment for ExxonMobil and third-party customers and underpins multiple low- carbon value chains including CCS, hydrogen, ammonia, biofuels, and direct air capture.
  • ExxonMobil and Nucor Corporation, one of North America’s largest steel producers, have entered into a long- term commercial agreement in which ExxonMobil, subject to government permitting, will capture, transport, and store up to 800,000 metric tons of CO2 per year from Nucor’s steel manufacturing site in Convent, Louisiana. The project, expected to start up in 2026, will tie into the same COinfrastructure that will be used by the company’s project with CF Industries.

    The agreement with Nucor is the third CCS agreement announced in the past twelve months and brings the total contracted CO2 to transport and store for third-party customers to 5 million metric tons per year. That is equivalent to replacing approximately 2 million gasoline-powered cars with electric vehicles2, which is roughly equal to the number of electric vehicles on U.S. roads today.

1 The emission reduction outcome of these projects is subject to the timing and regulatory approval of necessary permits, acquisition of rights of way, changes in regulatory policy, supply chain disruptions, and other market conditions.

2 ExxonMobil analysis based on assumptions for U.S. in 2022, including average distance traveled, fuel efficiency, average power grid carbon intensity, electric vehicle charging efficiency and other factors. Gas-powered cars include light-duty vehicles (cars, light trucks and SUVs).

Earnings and volume summary by segment: Upstream

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

Earnings/(Loss) (U.S. GAAP)

920 1,632 3,749 United States 2,552 6,125
3,657 4,825 7,622 Non-U.S. 8,482 9,734

4,577

6,457

11,371

   Worldwide

11,034

15,859

Earnings/(Loss) Excluding Identified Items (non-GAAP)

920 1,632 3,450 United States 2,552 5,826
3,669 4,983 7,622 Non-U.S. 8,652 12,989

4,589

6,615

11,072

  Worldwide

11,204

18,815

3,608 3,831 3,732 Production (koebd) 3,719 3,704
  • Upstream second-quarter earnings were $4.6 billion, a decrease of $1.9 billion from the first quarter. The main factors were lower natural gas prices, which declined 40%, and seasonally higher scheduled maintenance. Identified items unfavorably impacted earnings by $12 million this quarter, down from $158 million in the previous quarter. Earnings excluding identified items decreased from $6.6 billion in the first quarter to $4.6 billion in the second quarter.
  • Compared to the same quarter last year, earnings decreased $6.8 billion. Excluding identified items, earnings declined $6.5 billion, driven by lower crude and natural gas realizations. Production in Guyana and the Permian grew by a combined 20% compared to the prior-year quarter. The increase was offset by impacts from divestments, the Sakhalin-1 expropriation, and government-mandated curtailments.
  • Year-to-date earnings were $11.0 billion, a decrease of $4.8 billion versus the first half of 2022. The prior-year period was negatively impacted by an identified item associated with the Sakhalin-1 expropriation. Excluding identified items, earnings declined $7.6 billion year-over-year. Higher production from advantaged projects in Guyana and the Permian provided a partial offset to lower crude and natural gas realizations. Year-to-date production was 3.7 million oil-equivalent barrels per day. Excluding divestments, entitlements, government mandates, and the Sakhalin-1 expropriation, net production grew by more than 160,000 oil-equivalent barrels per day driven by Guyana and the Permian.

Earnings and volume summary by segment: Energy Products

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

Earnings/(Loss) (U.S. GAAP)

1,528 1,910 2,655 United States 3,438 3,144
782 2,273 2,617 Non-U.S. 3,055 1,933
2,310 4,183 5,273

  Worldwide

6,493 5,077

Earnings/(Loss) Excluding Identified Items (non-GAAP)

1,528 1,910 2,655 United States 3,438 3,144
764 2,303 2,617 Non-U.S. 3,067 1,933
2,292 4,213 5,273

   Worldwide

6,505 5,077
5,658 5,277 5,310 Energy Products Sales (kbd) 5,469 5,211
  • Energy Products second-quarter earnings totaled $2.3 billion, down $1.9 billion from the first quarter. Industry margins declined sequentially from a strong first quarter on weaker diesel margins as Russian supply concerns eased. Lower margins were partially offset by higher volumes from the first full quarter of the Beaumont refinery expansion, lower scheduled maintenance, and continued strong reliability.
  • Compared to the same quarter last year, earnings decreased $3.0 billion from lower industry refining margins, partly offset by increased marketing and trading contributions.
  • Year-to-date earnings were $6.5 billion, an increase of $1.4 billion versus the first half of 2022. Margins improved as higher marketing and trading contributions more than offset declining industry refining margins. In addition, the impact from higher volumes, mainly from the start-up of the Beaumont refinery expansion and improved reliability, was partly offset by higher planned maintenance expense.

Earnings and volume summary by segment: Chemical Products

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

Earnings/(Loss) (U.S. GAAP)
486 324 625 United States 810 1,395
342 47 450 Non-U.S. 389 1,086

828

371

1,076

Worldwide

1,199

2,481




Earnings/(Loss) Excluding Identified Items (non-GAAP)



486 324 625 United States 810 1,395
342 47 450 Non-U.S. 389 1,086

828

371

1,076

Worldwide

1,199

2,481

4,849 4,649 4,811 Chemical Products Sales (kt) 9,498 9,829
  • Chemical Products second-quarter earnings were $828 million, up from $371 million in the first quarter, mainly on improved margins from lower feed costs. Earnings also benefited from lower planned maintenance expense and increased sales volumes.
  • Compared to the same quarter last year, earnings decreased $248 million on weaker industry margins and unfavorable volume/mix effects.
  • Year-to-date earnings were $1.2 billion, a decrease of $1.3 billion versus the first half of 2022, driven by weaker industry margins, lower sales volumes reflecting softer market fundamentals in the first quarter, and higher planned maintenance.
  • The Baytown chemical expansion project, which will add 750  kta of performance chemicals production, achieved mechanical completion in the second quarter, with a phased start-up expected in the third quarter this year.

Earnings and volume summary by segment: Specialty Products

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022




Earnings/(Loss) (U.S. GAAP)



373 451 232 United States 824 478
298 323 185 Non-U.S. 621 415

671

774

417

   Worldwide

1,445

893

Earnings/(Loss) Excluding Identified Items (non-GAAP)

373 451 232 United States 824 478
298 323 185 Non-U.S. 621 415
671 774 417

   Worldwide

1,445 893
1,905 1,940 2,100 Specialty Products Sales (kt) 3,845 4,107
  • Specialty Products earnings were $671 million, down $103 million from the first quarter. Lower basestock margins and higher scheduled maintenance expense were partly offset by favorable tax items.
  • Compared to the same quarter last year, earnings increased by $254 million. Stronger finished lubes and basestock margins were partially offset by lower sales volumes.
  • Year-to-date earnings were $1.4 billion, an increase of $552 million versus the first half of 2022. Both basestock and finished lubes margins improved from lower feed costs, partially offset by lower sales volumes.
  • During the second quarter, ExxonMobil announced it is planning to build a lubricants manufacturing plant in Raigad, India. The new plant is expected to produce 159,000 kiloliters of finished lubricants per year to help meet demand growth in India, with start-up expected by year-end 2025.

Earnings and volume summary by segment: Corporate and Financing

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

(506)

(355)

(286)

Earnings/(Loss) (U.S. GAAP)

(861)

(980)

(506)

(355)

(286)

Earnings/(Loss) Excluding Identified Items (non-GAAP)

(861)

(882)

  • Corporate and Financing reported net charges of $506 million. This was an increase of $151 million versus the first quarter driven by unfavorable foreign exchange impacts and tax items.
  • Compared to the same quarter last year, net charges increased $220 million. Unfavorable tax items and foreign exchange impacts were partly offset by lower financing costs.
  • Year-to-date charges were $861 million, a decrease of $119 million compared to the first half of 2022. Excluding the identified item associated with the Sakhalin-1 expropriation, net charges decreased $21 million.

Cash flow from operations and asset sales excluding working capital

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

8,153 11,843 18,574 Net income/(loss) including noncontrolling interests 19,996 24,324
4,242 4,244 4,451 Depreciation and depletion (includes impairments) 8,486 13,334
(3,583) (302) (2,747) Changes in operational working capital, excluding cash and debt (3,885) (1,661)
571 556 (315) Other 1,127 (1,246)

9,383

16,341

19,963

Cash Flow from Operating Activities (U.S. GAAP)

25,724

34,751

1,287 854 939 Proceeds from asset sales and returns of investments 2,141 1,232

10,670

17,195

20,902

Cash Flow from Operations and Asset Sales (non-GAAP)

27,865

35,983

3,583 302 2,747 Exclude changes in operational working capital, excluding cash and debt 3,885 1,661

14,253

17,497

23,649

Cash Flow from Operations and Asset Sales excluding Working Capital (non-GAAP)

31,750

37,644

(1,287) (854) (939) Exclude proceeds from asset sales and returns of investments (2,141) (1,232)

12,966

16,643

22,710

Cash Flow from Operations excluding Working Capital (non-GAAP)

29,609

36,412

Free cash flow

2Q23

1Q23

2Q22

Dollars in millions (unless otherwise noted)

YTD 2023

YTD 2022

9,383

16,341

19,963

Cash Flow from Operating Activities (U.S. GAAP)

25,724

34,751

(5,359) (5,412) (3,837) Additions to property, plant and equipment (10,771) (7,748)
(389) (445) (226) Additional investments and advances (834) (643)
105 78 60 Other investing activities including collection of advances 183 150
1,287 854 939 Proceeds from asset sales and returns of investments 2,141 1,232

5,027

11,416

16,899

Free Cash Flow (non-GAAP)

16,443

27,742

Calculation of structural cost savings

Dollars in billions (unless otherwise noted)

Twelve Months

Ended December 31,

Six Months

Ended June 30,

2019 2022 2022 2023

Components of Operating Costs






From ExxonMobil's Consolidated Statement of Income (U.S. GAAP)






Production and manufacturing expenses 36.8 42.6 20.9 18.3
Selling, general and administrative expenses 11.4 10.1 4.9 4.8
Depreciation and depletion (includes impairments) 19.0 24.0 13.3 8.5
Exploration expenses, including dry holes 1.3 1.0 0.5 0.3
Non-service pension and postretirement benefit expense 1.2 0.5 0.2 0.3

Subtotal

69.7

78.2

39.9

32.2


ExxonMobil's share of equity company expenses (non-GAAP)

9.1 13.0 5.8 5.0

Total Adjusted Operating Costs (non-GAAP)

78.8

91.2

45.7

37.2


Total Adjusted Operating Costs (non-GAAP)

78.8

91.2

45.7

37.2


Less:
Depreciation and depletion (includes impairments) 19.0 24.0 13.3 8.5
Non-service pension and postretirement benefit expense 1.2 0.5 0.2 0.3
Other adjustments (includes equity company depreciation and depletion) 3.6 3.5 1.8 1.5
Total Cash Operating Expenses (Cash Opex) (non-GAAP) 55.0 63.2 30.4 26.9
Energy and production taxes (non-GAAP) 11.0 23.8 11.0 7.5

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

44.0

39.4

19.4

19.4




Change vs 2019


Change vs 2022

Estimated Cumulative vs 2019

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


-4.6


+0.0


Market +2.7 +0.4
Activity/Other +0.1 +0.5

Structural Savings


-7.4


-0.9

-8.3

This press release also references structural cost savings. Structural cost savings describe decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, and other cost-saving measures that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative structural cost savings totaled

$8.3 billion, which included an additional $0.9 billion in the first six months of 2023. The total change between periods in expenses above 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. 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. For example, in 2Q23 we recognized an additional $0.5 billion of prior period reductions that we now view as structurally sustainable. 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.

ExxonMobil will discuss financial and operating results and other matters during a webcast at 7:30 a.m. Central Time on July 28, 2023. To listen to the event or access an archived replay, please visit www.exxonmobil.com.

Important Information about the Transaction and Where to Find It
In connection with the proposed transaction between Exxon Mobil Corporation (“ExxonMobil”) and Denbury Inc. (“Denbury”),

ExxonMobil and Denbury will file relevant materials with the Securities and Exchange Commission (the “SEC”), including a registration statement on Form S-4 filed by ExxonMobil that will include a proxy statement of Denbury that also constitutes a prospectus of ExxonMobil. A definitive proxy statement/prospectus will be mailed to stockholders of Denbury. This communication is not a substitute for the registration statement, proxy statement or prospectus or any other document that ExxonMobil or Denbury (as applicable) may file with the SEC in connection with the proposed transaction. BEFORE MAKING ANY VOTING OR INVESTMENT DECISION, INVESTORS AND SECURITY HOLDERS OF EXXONMOBIL AND DENBURY ARE URGED TO READ THE REGISTRATION STATEMENT, THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER RELEVANT DOCUMENTS THAT ARE FILED OR WILL BE FILED WITH THE SEC, AS WELL AS ANY AMENDMENTS OR SUPPLEMENTS TO THESE DOCUMENTS, CAREFULLY AND IN THEIR ENTIRETY WHEN THEY BECOME AVAILABLE BECAUSE THEY CONTAIN OR WILL CONTAIN IMPORTANT INFORMATION ABOUT THE PROPOSED TRANSACTION

AND RELATED MATTERS.  Investors and security holders may obtain free copies of the registration statement and the proxy statement/prospectus (when they become available), as well as other filings containing important information about ExxonMobil or Denbury, without charge at the SEC’s Internet website (http://www.sec.gov). Copies of the documents filed with the SEC by ExxonMobil will be available free of charge on ExxonMobil’s internet website at www.exxonmobil.com under the tab “investors” and then under the tab “SEC Filings” or by contacting ExxonMobil’s Investor Relations Department at investor.relations@exxonmobil.com. Copies of the documents filed with the SEC by Denbury will be available free of charge on Denbury’s internet website at https://investors.denbury.com/investors/financial-information/sec-filings/ or by directing a request to Denbury Inc., ATTN: Investor Relations, 5851 Legacy Circle, Suite 1200, Plano, TX 75024, Tel. No. (972) 673-2000. The information included on, or accessible through, ExxonMobil’s or Denbury’s website is not incorporated by reference into this communication.

Participants in the Solicitation
ExxonMobil,  Denbury, their  respective  directors  and  certain of their respective executive officers may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information about the directors and executive officers of Denbury is set forth in its proxy statement for its 2023 annual meeting of stockholders, which was filed with the SEC on April 18, 2023, and in its Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 23, 2023.  Information about the directors and executive officers of ExxonMobil is set forth in its proxy statement for its 2023 annual meeting of stockholders, which was filed with the SEC on April 13, 2023, and in its Form 10-K for the year ended December 31, 2022, which was filed with the SEC on February 22, 2023.   Additional information regarding the participants in the proxy solicitations and a description of their direct or indirect interests, by security holdings or otherwise, will be contained in the proxy statement/prospectus and other relevant materials filed with the SEC when they become available.

No Offer or Solicitation
This communication is for informational purposes and is not intended to, and shall not, constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any offer, solicitation or sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. No offering of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the U.S. Securities Act of 1933, as amended.

Cautionary Statement
Statements related to outlooks; projections; descriptions of strategic, operating, and financial plans and objectives; statements of  future  ambitions  and  plans;  and  other  statements  of  future  events  or  conditions  in  this  release,  are  forward-looking statements. Similarly, discussion of future carbon capture, transportation and storage, as well as biofuel, hydrogen and other plans to reduce emissions are dependent on future market factors, such as continued technological progress, policy support and timely rule-making and permitting, and represent forward-looking statements. Actual future results, including financial and operating performance; total capital expenditures and mix, including allocations of capital to low carbon solutions; structural earnings improvement and structural cost reductions and efficiency gains, including the ability to offset inflationary pressure; plans to reduce future emissions and emissions intensity; ambitions to reach Scope 1 and Scope 2 net zero from operated assets by 2050, plans to reach net zero Scope 1 and 2 emissions in Upstream Permian Basin unconventional operated assets by 2030, eliminating routine flaring in-line with World Bank Zero Routine Flaring, reaching near-zero methane emissions from its operations, meeting ExxonMobil’s emission reduction goals and plans, divestment and start-up plans, and associated project plans as well as technology efforts; timing and outcome of projects related to the capture, transportation and storage of CO2, and produced biofuels, including completion of the Denbury acquisition; changes in law, taxes, or regulation including environmental and tax regulations, trade sanctions, and timely granting of governmental permits and certifications; timing and outcome of hydrogen projects; cash flow, dividends and shareholder returns, including the timing and amounts of share repurchases; future debt levels and credit ratings; business and project plans, timing, costs, capacities and returns; and resource recoveries and production rates, could differ materially due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market factors, economic conditions and seasonal fluctuations that impact prices and differentials for our products; government policies supporting lower carbon  investment opportunities  such  as  the  U.S.  Inflation Reduction Act or policies limiting the attractiveness of future investment such as the additional European taxes on the energy sector; variable impacts of trading activities on our margins and results each quarter; actions of competitors and commercial counterparties; the outcome of commercial negotiations, including final agreed terms and conditions; the ability to access debt markets; the ultimate impacts of COVID-19 or other public health crises, including the effects of government responses on people and economies; reservoir performance, including variability and timing factors applicable to unconventional resources; the level and outcome of exploration projects and decisions to invest in future reserves; timely completion of development and other construction projects; final management approval of future projects and any changes in the scope, terms, or costs of such projects as approved; government policies and support and market demand for low carbon technologies; war, civil unrest, attacks against the company or industry and other political or security disturbances;  expropriations,  seizure,  or  capacity,  insurance  or  shipping  limitations  by  foreign  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; unforeseen technical or operating difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; 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 2022 Form 10-K.

Forward-looking and other statements regarding our environmental, social and other sustainability efforts and aspirations are not an indication that these statements are necessarily material to investors or requiring disclosure in our filing with the SEC. In addition, historical, current, and forward-looking environmental, social and 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.

 

Frequently Used Terms and Non-GAAP Measures
This press release includes cash flow from operations and asset sales (non-GAAP). Because of the regular nature of our asset management and divestment program, the company believes it is useful for investors to consider proceeds associated with the sales of subsidiaries, property, plant and equipment, and sales and returns of investments together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities. A reconciliation to net cash provided by operating activities for the 2022 and 2023 periods is shown on page 7.

This  press  release  also  includes  cash  flow  from  operations  excluding  working  capital  (non-GAAP),  and  cash  flow  from operations and asset sales excluding working capital (non-GAAP). The company believes it is useful for investors to consider these numbers in comparing the underlying performance of the company's business across periods when there are significant period-to-period differences in the amount of changes in working capital. A reconciliation to net cash provided by operating activities for the 2022 and 2023 periods is shown on page 7.

This press release also includes earnings/(loss) excluding identified items (non-GAAP), which are earnings/(loss) excluding individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings/(loss) impact of an identified item for an individual segment may be less than $250 million when the item impacts several periods or several segments. Earnings/(loss) excluding identified items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for identified items. When the effect of these events is significant in aggregate, it is indicated in analysis of period results as part of quarterly earnings press release and teleconference materials. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends and provides investors with a view of the business as seen through the eyes of management. Earnings excluding identified items is not meant to be viewed in isolation or as a substitute for net income/(loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP. A reconciliation to earnings is shown for 2023 and 2022 periods in Attachments II-a and II-b. Corresponding per share amounts are shown on page 1 and in Attachment II-a, including a reconciliation to earnings/(loss) per common share – assuming dilution (U.S. GAAP).

This press release also includes total taxes including sales-based taxes. This is a broader indicator of the total tax burden on the Corporation’s products and earnings, including certain sales and value-added taxes imposed on and concurrent with revenue- producing transactions with customers and collected on behalf of governmental authorities (“sales-based taxes”). It combines “Income taxes” and “Total other taxes and duties” with sales-based taxes, which are reported net in the income statement. The company believes it is useful for the Corporation and its investors to understand the total tax burden imposed on the Corporation’s products and earnings. A reconciliation to total taxes is shown in Attachment I-a.

This press release also references free cash flow (non-GAAP). Free cash flow is the sum of net cash provided by operating activities and net cash flow used in investing activities. This measure is useful when evaluating cash available for financing activities, including shareholder distributions, after investment in the business. Free cash flow is not meant to be viewed in isolation or as a substitute for net cash provided by operating activities. A reconciliation to net cash provided by operating activities for the 2022 and 2023 periods is shown on page 7.

References to resources or resource base may include quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved reserves, but that are expected to be ultimately recoverable. The term “resource base” or similar terms are not intended to correspond to SEC definitions such as “probable” or “possible” reserves. A reconciliation of production excluding divestments, entitlements, and government mandates to actual production is contained in the Supplement to this release included as Exhibit 99.2 to the Form 8-K filed the same day as this news release.

The term “project” as used in this news release can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports. Projects or plans may not reflect investment decisions made by the company. Individual opportunities may advance based on a number of factors, including availability of supportive policy, technology for cost-effective abatement, and alignment with our partners and other stakeholders. The company may refer to these opportunities as projects in external disclosures at various stages throughout their progression.

Government mandates are changes to ExxonMobil’s sustainable production levels as a result of production limits or sanctions imposed by governments.

This press release also references structural cost savings, for more details see page 8.

Reference to Earnings
References to corporate earnings mean net income attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings, Upstream, Energy Products, Chemical Products, Specialty Products and Corporate and Financing segment earnings, and earnings per share are ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.

Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes used as abbreviated references to specific affiliates or affiliate groups. Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate business and other relationships involving common activities and interests, and those words may not indicate precise legal relationships. ExxonMobil's ambitions, plans and goals do not guarantee any action or future performance by its affiliates or Exxon Mobil Corporation's responsibility for those affiliates' actions and future performance, each affiliate of which manages its own affairs.

Throughout this press release, both Exhibit 99.1 as well as Exhibit 99.2, due to rounding, numbers presented may not add up precisely to the totals indicated.


Condensed consolidated statement of income (Preliminary)

Attachment I-a


Three Months Ended

June 30,

Six Months Ended

June 30,

Dollars in millions (unless otherwise noted)

2023 2022 2023 2022

Revenues and other income





Sales and other operating revenue 80,795 111,265 164,439 198,999
Income from equity affiliates 1,382 3,688 3,763 6,226
Other income 737 728 1,276 956
Total revenues and other income 82,914 115,681 169,478 206,181

Costs and other deductions





Crude oil and product purchases 47,598 65,613 93,601 118,001
Production and manufacturing expenses 8,860 10,686 18,296 20,927
Selling, general and administrative expenses 2,449 2,530 4,839 4,939
Depreciation and depletion (includes impairments) 4,242 4,451 8,486 13,334
Exploration expenses, including dry holes 133 286 274 459
Non-service pension and postretirement benefit expense 164 120 331 228
Interest expense 249 194 408 382
Other taxes and duties 7,563 6,868 14,784 14,422

Total costs and other deductions

71,258

90,748

141,019

172,692

Income/(Loss) before income taxes

11,656

24,933

28,459

33,489

Income tax expense/(benefit) 3,503 6,359 8,463 9,165

Net income/(loss) including noncontrolling interests

8,153

18,574

19,996

24,324

Net income/(loss) attributable to noncontrolling interests 273 724 686 994

Net income/(loss) attributable to ExxonMobil

7,880

17,850

19,310

23,330

Other financial data

Attachment I-a

Dollars in millions (unless otherwise noted)

Three Months Ended

June 30,

Six Months Ended

June 30,

2023 2022 2023 2022

Earnings per common share (U.S. dollars)

1.94

4.21

4.73

5.49

Earnings per common share - assuming dilution (U.S. dollars)

1.94

4.21

4.73

5.49

Dividends on common stock





Total 3,701 3,727 7,439 7,487
Per common share (U.S. dollars) 0.91 0.88 1.82 1.76

Millions of common shares outstanding





Average - assuming dilution 4,066 4,233 4,084 4,248

Taxes





Income taxes 3,503 6,359 8,463 9,165
Total other taxes and duties 8,328 7,779 16,423 16,228

Total taxes

11,831

14,138

24,886

25,393

Sales-based taxes 6,281 6,857 12,313 12,957

Total taxes including sales-based taxes

18,112

20,995

37,199

38,350

ExxonMobil share of income taxes of equity companies 498 2,133 1,733 3,180

Condensed consolidated balance sheet (Preliminary)

Attachment I-b

Dollars in millions (unless otherwise noted)

June 30, 2023 December 31, 2022

ASSETS

Current assets

Cash and cash equivalents 29,528 29,640

Cash and cash equivalents – restricted

29 25

Notes and accounts receivable – net

35,915 41,749
Inventories
Crude oil, products and merchandise 20,006 20,434
Materials and supplies 4,243 4,001
Other current assets 2,039 1,782

Total current assets

91,760

97,631

Investments, advances and long-term receivables 47,273 49,793

Property, plant and equipment – net

206,736 204,692

Other assets, including intangibles – net

17,479 16,951

Total Assets

363,248

369,067

LIABILITIES



Current liabilities



Notes and loans payable 3,929 634
Accounts payable and accrued liabilities 54,404 63,197
Income taxes payable 3,482 5,214

Total current liabilities

61,815

69,045

Long-term debt 37,567 40,559
Postretirement benefits reserves 10,278 10,045
Deferred income tax liabilities 23,460 22,874
Long-term obligations to equity companies 2,036 2,338
Other long-term obligations 21,095 21,733

Total Liabilities

156,251

166,594

EQUITY



Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued) 16,029 15,752
Earnings reinvested 444,731 432,860
Accumulated other comprehensive income (12,657) (13,270)
Common stock held in treasury
(4,016 million shares at June 30, 2023, and 3,937 million shares at December 31, 2022) (249,057) (240,293)

ExxonMobil share of equity

199,046

195,049

Noncontrolling interests 7,951 7,424

Total Equity

206,997

202,473

Total Liabilities and Equity

363,248

369,067

Condensed consolidated statement of cash flows (Preliminary)

Attachment I-c

Dollars in millions (unless otherwise noted)

Six Months Ended

June 30,

2023 2022

CASH FLOWS FROM OPERATING ACTIVITIES



Net income/(loss) including noncontrolling interests 19,996 24,324
Depreciation and depletion (includes impairments) 8,486 13,334
Changes in operational working capital, excluding cash and debt (3,885) (1,661)

All other items – net

1,127 (1,246)

Net cash provided by operating activities

25,724

34,751

CASH FLOWS FROM INVESTING ACTIVITIES



Additions to property, plant and equipment (10,771) (7,748)
Proceeds from asset sales and returns of investments 2,141 1,232
Additional investments and advances (834) (643)
Other investing activities including collection of advances 183 150

Net cash used in investing activities

(9,281)

(7,009)

CASH FLOWS FROM FINANCING ACTIVITIES



Additions to long-term debt 136

Reductions in long-term debt (6)

Reductions in short-term debt (172) (2,336)
Additions/(Reductions) in debt with three months or less maturity (172) 1,303
Contingent consideration payments (68) (58)
Cash dividends to ExxonMobil shareholders (7,439) (7,487)
Cash dividends to noncontrolling interests (293) (123)
Changes in noncontrolling interests 11 (697)
Common stock acquired (8,680) (5,986)

Net cash provided by (used in) financing activities

(16,683)

(15,384)

Effects of exchange rate changes on cash 132 (299)

Increase/(Decrease) in cash and cash equivalents

(108)

12,059

Cash and cash equivalents at beginning of period 29,665 6,802

Cash and cash equivalents at end of period

29,557

18,861

Key figures: Identified items

Attachment II-a

2Q23 1Q23 2Q22 Dollars in Millions (unless otherwise noted) YTD 2023 YTD 2022
7,880 11,430 17,850 Earnings/(Loss) (U.S. GAAP) 19,310 23,330
Identified Items

Impairments

(2,975)

299 Gain/(Loss) on sale of assets

299
6 (188)

Tax-related items (182)

Other

(378)
6 (188) 299 Total Identified Items (182) (3,054)
7,874 11,618 17,551 Earnings/(Loss) Excluding Identified Items (non-GAAP) 19,492 26,384
2Q23 1Q23 2Q22 Dollars Per Common Share YTD 2023 YTD 2022
1.94 2.79 4.21

Earnings/(Loss) Per Common Share1 (U.S. GAAP)

4.73 5.49

Identified Items Per Common Share1

Impairments

(0.70)

0.07 Gain/(Loss) on sale of assets

0.07
0.00 (0.04)

Tax-related items (0.04)

Other

(0.09)
0.00 (0.04) 0.07

Total Identified Items Per Common Share1

(0.04) (0.72)
1.94 2.83 4.14

Earnings/(Loss) Excl. Identified Items Per Common Share1 (non-GAAP)

4.77 6.21
1Assuming dilution

Key figures: Identified items by segment

Attachment II-b

Second Quarter 2023

Upstream


Energy Products


Chemical Products


Specialty Products


Corporate & Financing

Total

Dollars in millions (unless otherwise noted)

U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.

Earnings/(Loss) (U.S. GAAP)

920

3,657

1,528

782

486

342

373

298

(506)

7,880

Identified Items
Tax-related items

—   

(12)

18

6
Total Identified Items

(12)

18

6

Earnings/(Loss) Excl. Identified Items (non-GAAP)

920

3,669

1,528

764

486

342

373

298

(506)

7,874

First Quarter 2023

Upstream


Energy Products


Chemical Products


Specialty Products


Corporate & Financing

Total

Dollars in millions (unless otherwise noted)

U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.

Earnings/(Loss) (U.S. GAAP)

1,632

4,825

1,910

2,273

324

47

451

323

(355)

11,430

Identified Items
Tax-related items

(158)

(30)

(188)
Total Identified Items

(158)

(30)

(188)

Earnings/(Loss) Excl. Identified Items (non-GAAP)

1,632

4,983

1,910

2,303

324

47

451

323

(355)

11,618

Second Quarter 2022

Upstream


Energy Products


Chemical Products


Specialty Products


Corporate & Financing

Total

Dollars in millions (unless otherwise noted)

U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.

Earnings/(Loss) (U.S. GAAP)

3,749

7,622

2,655

2,617

625

450

232

185

(286)

17,850

Identified Items
Gain/(Loss) on sale of assets 299

299
Total Identified Items 299

299

Earnings/(Loss) Excl. Identified Items (non-GAAP)

3,450

7,622

2,655

2,617

625

450

232

185

(286)

17,551

YTD 2023

Upstream


Energy Products


Chemical Products


Specialty Products


Corporate & Financing

Total

Dollars in millions (unless otherwise noted)

U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Earnings/(Loss) (U.S. GAAP) 2,552 8,482 3,438 3,055 810 389 824 621 (861) 19,310
Identified Items
Tax-related items

(170)

(12)

(182)
Total Identified Items

(170)

(12)

(182)
Earnings/(Loss) Excl. Identified Items (non-GAAP) 2,552 8,652 3,438 3,067 810 389 824 621 (861) 19,492

YTD 2022

Upstream


Energy Products


Chemical Products


Specialty Products


Corporate & Financing

Total

Dollars in millions (unless otherwise noted)

U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S. U.S. Non-U.S.
Earnings/(Loss) (U.S. GAAP) 6,125 9,734 3,144 1,933 1,395 1,086 478 415 (980) 23,330
Identified Items
Impairments

(2,877)

(98) (2,975)
Gain/(Loss) on sale of assets 299

299
Other

(378)

(378)

Total Identified Items

299

(3,255)

(98)

(3,054)

Earnings/(Loss) Excl. Identified Items (non-GAAP)

5,826

12,989

3,144

1,933

1,395

1,086

478

415

(882)

26,384

Key figures: Upstream volumes

Attachment III

2Q23 1Q23 2Q22 Net production of crude oil, natural gas liquids, bitumen and synthetic oil, thousand barrels per day (kbd)

YTD 2023

YTD 2022

785 820 777 United States 802 765
618 670 556 Canada/Other Americas 645 516
4 4 4 Europe 4 4
206 220 224 Africa 213 240
702 749 691 Asia 725 714
38 32 46 Australia/Oceania 35 43

2,353

2,495

2,298

Worldwide

2,424

2,282

2Q23 1Q23 2Q22 Net natural gas production available for sale, million cubic feet per day (mcfd) YTD 2023

YTD 2022

2,346 2,367 2,699 United States 2,357 2,738
97 94 180 Canada/Other Americas 94 180
375 548 825 Europe 461 798
86 134 67 Africa 110 63
3,350 3,597 3,320 Asia 3,473 3,330
1,275 1,276 1,515 Australia/Oceania 1,276 1,421

7,529

8,016

8,606

Worldwide

7,771

8,530

3,608 3,831 3,732

Oil-equivalent production (koebd)1

3,719 3,704
1Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

Key figures: Manufacturing throughput and sales

Attachment IV
2Q23 1Q23 2Q22

Refinery throughput, thousand barrels per day (kbd)

YTD 2023 YTD 2022
1,944 1,643 1,686 United States 1,794 1,686
388 417 413 Canada 403 406
1,209 1,189 1,164 Europe 1,199 1,179
463 565 532 Asia Pacific 514 534
169 184 193 Other 176 180

4,173

3,998

3,988

Worldwide

4,086

3,985

2Q23 1Q23 2Q22

Energy Products sales, thousand barrels per day (kbd)

YTD 2023 YTD 2022
2,743 2,459 2,452 United States 2,601 2,358
2,916 2,818 2,858 Non-U.S. 2,867 2,853

5,658

5,277

5,310

Worldwide

5,469

5,211

2,401 2,177 2,208 Gasolines, naphthas 2,290 2,161
1,842 1,770 1,755 Heating oils, kerosene, diesel 1,806 1,739
344 312 350 Aviation fuels 328 319
228 215 228 Heavy fuels 221 238
844 803 769 Other energy products 823 753

5,658

5,277

5,310

Worldwide

5,469

5,211

2Q23 1Q23 2Q22

Chemical Products sales, thousand metric tons (kt)

YTD 2023 YTD 2022
1,725 1,561 1,998 United States 3,286 4,030
3,124 3,088 2,812 Non-U.S. 6,212 5,798

4,849

4,649

4,811

Worldwide

9,498

9,829

2Q23 1Q23 2Q22

Specialty Products sales, thousand metric tons (kt)

YTD 2023 YTD 2022
514 476 590 United States 991 1,111
1,391 1,464 1,511 Non-U.S. 2,855 2,995

1,905

1,940

2,100

Worldwide

3,845

4,107

Key figures: Capital and exploration expenditures

Attachment V

2Q23 1Q23 2Q22

Dollars in millions (unless otherwise noted)

YTD 2023 YTD 2022

Upstream

2,206 2,108 1,644 United States 4,314 3,013
2,403 2,473 1,983 Non-U.S. 4,876 4,493

4,609

4,581

3,627

Total

9,190

7,506

Energy Products

349

358

300

United States

707

692

382 327 206 Non-U.S. 709 380

731

685

506

Total

1,416

1,072

Chemical Products

152 285 250 United States 437 481
507 546 169 Non-U.S. 1,053 374

659

831

419

Total

1,490

855

Specialty Products

14 11 14 United States 25 19
89 80 42 Non-U.S. 169 60

103

91

56

Total

194

79

Other

64 192 1 Other 256 1

6,166

6,380

4,609

Worldwide

12,546

9,513

2Q23 1Q23 2Q22

Dollars in millions (unless otherwise noted)

YTD 2023 YTD 2022
5,359 5,412 3,837 Additions to property, plant and equipment 10,771 7,748
284 367 166 Net investments and advances 651 493
5,643 5,779 4,003 Total Cash Capital Expenditures 11,422 8,241

Key figures: Year-to-date earnings/(loss)

Attachment VI

2Q23

1Q23 Change vs 1Q23 2Q22 Change vs 2Q22

Dollars in millions (except per share data)

YTD 2023 YTD 2022 Change vs YTD 2022
7,880 11,430 -3,550 17,850 -9,970 Earnings (U.S. GAAP) 19,310 23,330 -4,020
7,874 11,618 -3,744 17,551 -9,677 Earnings Excluding Identified Items (non-GAAP) 19,492 26,384 -6,892
1.94 2.79 -0.85 4.21 -2.27

Earnings Per Common Share1

4.73 5.49 -0.76
1.94 2.83 -0.89 4.14 -2.20

Earnings Excl. Identified Items Per Common Share1

4.77 6.21 -1.44
6,166 6,380 -214 4,609 +1,557 Capital and Exploration Expenditures 12,546 9,513 +3,033
1Assuming dilution

Key figures: Earnings/(loss) by quarter

Attachment VII

Dollars in millions (unless otherwise noted)

2023 2022 2021 2020 2019
First Quarter 11,430 5,480 2,730 (610) 2,350
Second Quarter 7,880 17,850 4,690 (1,080) 3,130
Third Quarter

19,660 6,750 (680) 3,170
Fourth Quarter

12,750 8,870 (20,070) 5,690

Full Year

55,740

23,040

(22,440)

14,340

Dollars per common share1

2023 2022 2021 2020 2019
First Quarter 2.79 1.28 0.64 (0.14) 0.55
Second Quarter 1.94 4.21 1.10 (0.26) 0.73
Third Quarter

4.68 1.57 (0.15) 0.75
Fourth Quarter

3.09 2.08 (4.70) 1.33

Full Year

13.26

5.39

(5.25)

3.36

1Computed using the average number of shares outstanding during each period; assuming dilution