EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)

Nine Months Ended

September 30,

2019

2018

Cash flows from operating activities

Net income including noncontrolling interests

9,044

15,215

Depreciation and depletion

14,075

13,717

Changes in operational working capital, excluding cash and debt

2,564

(25)

All other items – net

(2,319)

(1,500)

Net cash provided by operating activities

23,364

27,407

Cash flows from investing activities

Additions to property, plant and equipment

(17,657)

(13,480)

Proceeds associated with sales of subsidiaries, property, plant and

equipment, and sales and returns of investments

600

3,239

Additional investments and advances

(2,532)

(1,113)

Other investing activities including collection of advances

769

492

Net cash used in investing activities

(18,820)

(10,862)

Cash flows from financing activities

Additions to long-term debt

7,019

-

Reductions in short-term debt

(3,836)

(4,279)

Additions/(reductions) in commercial paper, and debt with three

months or less maturity (1)

6,139

1,626

Cash dividends to ExxonMobil shareholders

(10,936)

(10,296)

Cash dividends to noncontrolling interests

(157)

(192)

Changes in noncontrolling interests

30

(374)

Common stock acquired

(421)

(430)

Net cash used in financing activities

(2,162)

(13,945)

Effects of exchange rate changes on cash

(73)

(108)

Increase/(decrease) in cash and cash equivalents

2,309

2,492

Cash and cash equivalents at beginning of period

3,042

3,177

Cash and cash equivalents at end of period

5,351

5,669

Supplemental Disclosures

Income taxes paid

5,259

6,740

Cash interest paid

Included in cash flows from operating activities

515

337

Capitalized, included in cash flows from investing activities

540

502

Total cash interest paid

1,055

839

(1) Includes a net addition of commercial paper with a maturity of over three months of $3.1 billion in 2019 and $0.3 billion in 2018. The gross amount of commercial paper with a maturity of over three months issued was $13.4 billion in 2019 and $3.1 billion in 2018, while the gross amount repaid was $10.3 billion in 2019 and $2.8 billion in 2018.

~~The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.~~

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(millions of dollars)

ExxonMobil Share of Equity

Accumulated

Other

Common

Compre-

Stock

ExxonMobil

Non-

Common

Earnings

hensive

Held in

Share of

controlling

Total

Stock

Reinvested

Income

Treasury

Equity

Interests

Equity

Balance as of June 30, 2018

15,086

416,418

(18,609)

(225,673)

187,222

6,311

193,533

Amortization of stock-based awards

169

-

-

-

169

-

169

Other

(1)

-

-

-

(1)

(1)

(2)

Net income for the period

-

6,240

-

-

6,240

206

6,446

Dividends - common shares

-

(3,503)

-

-

(3,503)

(57)

(3,560)

Other comprehensive income

-

-

239

-

239

105

344

Acquisitions, at cost

-

-

-

(1)

(1)

(98)

(99)
Balance as of September 30, 2018

15,254

419,155

(18,370)

(225,674)

190,365

6,466

196,831

Balance as of June 30, 2019

15,639

419,913

(18,205)

(225,970)

191,377

7,088

198,465

Amortization of stock-based awards

156

-

-

-

156

-

156

Other

-

-

-

-

-

275

275

Net income for the period

-

3,170

-

-

3,170

77

3,247

Dividends - common shares

-

(3,716)

-

-

(3,716)

(57)

(3,773)

Other comprehensive income

-

-

(1,072)

-

(1,072)

(63)

(1,135)

Acquisitions, at cost

-

-

-

-

-

(79)

(79)

Dispositions

-

-

-

-

-

(47)

(47)
Balance as of September 30, 2019

15,795

419,367

(19,277)

(225,970)

189,915

7,194

197,109

Three Months Ended September 30, 2019

Three Months Ended September 30, 2018

Held in

Held in

Common Stock Share Activity

Issued

Treasury

Outstanding

Issued

Treasury

Outstanding

(millions of shares)

(millions of shares)

Balance as of June 30

8,019

(3,788)

4,231

8,019

(3,785)

4,234

Acquisitions

-

-

-

-

-

-

Dispositions

-

-

-

-

-

-

Balance as of September 30

8,019

(3,788)

4,231

8,019

(3,785)

4,234

~~The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.~~

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

(millions of dollars)

ExxonMobil Share of Equity

Accumulated

Other

Common

Compre-

Stock

ExxonMobil

Non-

Common

Earnings

hensive

Held in

Share of

controlling

Total

Stock

Reinvested

Income

Treasury

Equity

Interests

Equity

Balance as of December 31, 2017

14,656

414,540

(16,262)

(225,246)

187,688

6,812

194,500

Amortization of stock-based awards

605

-

-

-

605

-

605

Other

(7)

-

-

-

(7)

(8)

(15)

Net income for the period

-

14,840

-

-

14,840

375

15,215

Dividends - common shares

-

(10,296)

-

-

(10,296)

(192)

(10,488)

Cumulative effect of accounting

change

-

71

(39)

-

32

15

47

Other comprehensive income

-

-

(2,069)

-

(2,069)

(170)

(2,239)

Acquisitions, at cost

-

-

-

(430)

(430)

(366)

(796)

Dispositions

-

-

-

2

2

-

2
Balance as of September 30, 2018

15,254

419,155

(18,370)

(225,674)

190,365

6,466

196,831

Balance as of December 31, 2018

15,258

421,653

(19,564)

(225,553)

191,794

6,734

198,528

Amortization of stock-based awards

545

-

-

-

545

-

545

Other

(8)

-

-

-

(8)

275

267

Net income for the period

-

8,650

-

-

8,650

394

9,044

Dividends - common shares

-

(10,936)

-

-

(10,936)

(157)

(11,093)

Other comprehensive income

-

-

287

-

287

193

480

Acquisitions, at cost

-

-

-

(421)

(421)

(245)

(666)

Dispositions

-

-

-

4

4

-

4
Balance as of September 30, 2019

15,795

419,367

(19,277)

(225,970)

189,915

7,194

197,109

Nine Months Ended September 30, 2019

Nine Months Ended September 30, 2018

Held in

Held in

Common Stock Share Activity

Issued

Treasury

Outstanding

Issued

Treasury

Outstanding

(millions of shares)

(millions of shares)

Balance as of December 31

8,019

(3,782)

4,237

8,019

(3,780)

4,239

Acquisitions

-

(6)

(6)

-

(5)

(5)

Dispositions

-

-

-

-

-

-

Balance as of September 30

8,019

(3,788)

4,231

8,019

(3,785)

4,234

~~The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.~~

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's ~~2018~~2019 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. Prior data has been reclassified in certain cases to conform to the current presentation basis.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

2.~~Accounting Changes~~Miscellaneous Financial Information

~~Effective January 1, 2019,~~

During the first quarter of 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil and petrochemical products. During the second and third quarters, the effects of COVID-19 continued to have a negative impact on the world’s major economies and demand for our products. Market conditions continue to reflect considerable uncertainty as consumer and business activity has exhibited some degree of recovery, but remains lower when compared to prior periods as a result of the pandemic.

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation's results for the third quarter of 2020 included a before-tax credit of $153 million, included in "Crude oil and product purchases" on the Statement of Income, as rising commodity prices resulted in the reversal of the charge against the book value of inventories as of the second quarter. This adjustment, together with a market adjustment to inventory for equity companies included in "Income from equity affiliates," resulted in a $113 million after-tax credit to earnings (excluding noncontrolling interests) in the third quarter. At year-end, any required adjustment to write down the book value of inventories to their market value is considered permanent and is incorporated into the LIFO carrying value of the inventory.

Primarily as a result of declines in prices for crude oil and other petrochemical products in 2020 and a significant decline in its market capitalization at the end of the first quarter, the Corporation ~~adopted~~recognized after-tax impairment charges of $884 million in the ~~Financial Accounting Standards Board’s Standard,~~ ~~Leases (Topic 842), as amended. The standard requires all leases~~nine months ended September 30, 2020. These charges included goodwill impairments of $562 million in Upstream, Downstream, and Chemical reporting units and other impairment charges of $322 million, mainly in the Upstream segment. Fair value of the goodwill reporting units primarily reflected market-based estimates of historical EBITDA multiples at the end of the first quarter. Other impairment charges, mainly related to ~~be recorded~~the Corporation’s investment in an Upstream equity company, reflect a write down to estimated fair value based on third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties. Charges related to goodwill and asset impairments are included in “Depreciation and depletion” on the ~~balance sheet as a right~~Statement of ~~use asset~~Income and ~~a lease liability. The Corporation used a transition~~charges related to equity method ~~that applies the new lease standard at January 1, 2019. The Corporation applied a policy election to exclude short-term leases~~investments are included in “Income from balance sheet recognition and also elected certain practical expedients at adoption. As permitted, the Corporation did not reassess whether existing contracts are or contain leases, the lease classification for any existing leases, initial direct costs for any existing lease and whether existing land easements and rights of way, which were not previously accounted for as leases, are or contain a lease. At adoption on January 1, 2019, an operating lease liability of $3.3 billion was recorded and the operating lease right of use asset was $4.3 billion, including $1.0 billion of previously recorded prepaid leases. There was no ~~cumulative earnings effect adjustment.~~

~~Effective January 1, 2020, ExxonMobil will adopt the Financial Accounting Standards Board’s update,~~ ~~Financial Instruments – Credit Losses (Topic 326)~~, as amended. The standard requires a valuation allowance for credit losses be recognized for certain financial assets that reflects the current expected credit loss over the asset’s contractual life. The valuation allowance considers the risk of loss, even if remote, and considers past events, current conditions and expectations of the future. The Corporation does not expect a material change in the credit allowance for trade receivables and continues to evaluate the impact on other financial assets in scope of the standard.

equity affiliates.”

3.Litigation and Other Contingencies

Litigation.

~~Litigation~~

A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

Other ~~Contingencies~~Contingencies.

The Corporation and certain of its consolidated subsidiaries were contingently liable at September 30, ~~2019,~~2020, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.


		As of September 30, 2020
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	968	120	1,088
	Other	690	4,806	5,496
	Total	1,658	4,926	6,584

As of September 30, 2019

Equity

Other

Company

Third Party

Obligations (1)

Obligations

Total

(millions of dollars)

Guarantees

Debt-related

737

93

830

Other

808

4,580

5,388

Total

1,545

4,673

6,218

(1)
ExxonMobil share

(1) ExxonMobil share

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

In accordance with a Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.

ExxonMobil collected awards of $908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID). An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project. ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.

4.Other Comprehensive Income Information

Cumulative

Post-

Foreign

retirement

Exchange

Benefits

ExxonMobil Share of Accumulated Other

Translation

Reserves

Comprehensive Income

Adjustment

Adjustment

Total

(millions of dollars)

Balance as of December 31, 2017

(9,482)

(6,780)

(16,262)

Current period change excluding amounts reclassified

from accumulated other comprehensive income

(2,551)

(406)

(2,957)

Amounts reclassified from accumulated other

comprehensive income

186

663

849

Total change in accumulated other comprehensive income

(2,365)

257

(2,108)

Balance as of September 30, 2018

(11,847)

(6,523)

(18,370)

Balance as of December 31, 2018

(13,881)

(5,683)

(19,564)

Current period change excluding amounts reclassified

from accumulated other comprehensive income

(252)

48

(204)

Amounts reclassified from accumulated other

comprehensive income

-

491

491

Total change in accumulated other comprehensive income

(252)

539

287

Balance as of September 30, 2019

(14,133)

(5,144)

(19,277)

Three Months Ended

Nine Months Ended

Amounts Reclassified Out of Accumulated Other

September 30,

September 30,

Comprehensive Income - Before-tax Income/(Expense)

2019

2018

2019

2018

(millions of dollars)

Foreign exchange translation gain/(loss) included in net income

(Statement of Income line: Other income)
-

-

-

(186)

Amortization and settlement of postretirement benefits reserves

adjustment included in net periodic benefit costs

(Statement of Income line: Non-service pension and

postretirement benefit expense)
(236)

(287)

(664)

(897)

Three Months Ended

Nine Months Ended

Income Tax (Expense)/Credit For

September 30,

September 30,

Components of Other Comprehensive Income

2019

2018

2019

2018

(millions of dollars)

Foreign exchange translation adjustment

1

8

1

13

Postretirement benefits reserves adjustment

(excluding amortization)

(56)

-

(36)

66

Amortization and settlement of postretirement benefits reserves

adjustment included in net periodic benefit costs

(50)

(64)

(152)

(208)

Total

(105)

(56)

(187)

(129)

ExxonMobil Share of Accumulated Other
Comprehensive Income
Cumulative Foreign Exchange Translation Adjustment Post-retirement Benefits Reserves Adjustment Total
(millions of dollars)
Balance as of December 31, 2018 (13,881) (5,683) (19,564)
Current period change excluding amounts reclassified
from accumulated other comprehensive income
(252) 48 (204)
Amounts reclassified from accumulated other
comprehensive income
0 491 491
Total change in accumulated other comprehensive income (252) 539 287
Balance as of September 30, 2019 (14,133) (5,144) (19,277)
Balance as of December 31, 2019 (12,446) (7,047) (19,493)
Current period change excluding amounts reclassified
from accumulated other comprehensive income (1)
(1,125) (172) (1,297)
Amounts reclassified from accumulated other
comprehensive income
14 587 601
Total change in accumulated other comprehensive income (1,111) 415 (696)
Balance as of September 30, 2020 (13,557) (6,632) (20,189)

(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) of $(159) million, net of taxes.


Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense)	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Foreign exchange translation gain/(loss) included in net income (Statement of Income line: Other income)	(14)	0	(14)	0
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit expense)	(268)	(236)	(790)	(664)


Income Tax (Expense)/Credit For Components of Other Comprehensive Income	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Foreign exchange translation adjustment	57	1	72	1
Postretirement benefits reserves adjustment (excluding amortization)	74	(56)	64	(36)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(62)	(50)	(177)	(152)
Total	69	(105)	(41)	(187)

5.Earnings Per Share

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

Earnings per common share

Net income attributable to ExxonMobil (millions of dollars)

3,170

6,240

8,650

14,840

Weighted average number of common shares

outstanding (millions of shares)

4,271

4,271

4,270

4,271

Earnings per common share (dollars) (1)

0.75

1.46

2.03

3.47

Dividends paid per common share (dollars)

0.87

0.82

2.56

2.41


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	(680)	3,170	(2,370)	8,650
Weighted average number of common shares outstanding (millions of shares)	4,271	4,271	4,270	4,270
Earnings (Loss) per common share (dollars) (1)	(0.15)	0.75	(0.55)	2.03
Dividends paid per common share (dollars)	0.87	0.87	2.61	2.56

(1)The calculation of earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

6.Pension and Other Postretirement Benefits

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

(millions of dollars)

Components of net benefit cost

Pension Benefits - U.S.

Service cost

208

203

563

616

Interest cost

192

179

574

540

Expected return on plan assets

(143)

(182)

(427)

(545)

Amortization of actuarial loss/(gain) and prior

service cost

77

93

233

276

Net pension enhancement and

curtailment/settlement cost

54

63

161

189

Net benefit cost

388

356

1,104

1,076

Pension Benefits - Non-U.S.

Service cost

136

149

413

461

Interest cost

189

185

573

571

Expected return on plan assets

(192)

(233)

(581)

(722)

Amortization of actuarial loss/(gain) and prior

service cost

102

113

260

344

Net pension enhancement and

curtailment/settlement cost

-

-

-

33

Net benefit cost

235

214

665

687

Other Postretirement Benefits

Service cost

38

40

104

111

Interest cost

79

75

237

226

Expected return on plan assets

(4)

(5)

(12)

(17)

Amortization of actuarial loss/(gain) and prior

service cost

3

19

10

57

Net benefit cost

116

129

339

377

Three Months Ended
September 30, Nine Months Ended
September 30,
2020 2019 2020 2019
(millions of dollars) (millions of dollars)
Components of net benefit cost
Pension Benefits - U.S.
Service cost 245 208 712 563
Interest cost 177 192 531 574
Expected return on plan assets (178) (143) (528) (427)
Amortization of actuarial loss/(gain) and prior service cost 79 77 237 233
Net pension enhancement and curtailment/settlement cost 52 54 156 161
Net benefit cost 375 388 1,108 1,104
Pension Benefits - Non-U.S.
Service cost 178 136 524 413
Interest cost 165 189 488 573
Expected return on plan assets (226) (192) (664) (581)
Amortization of actuarial loss/(gain) and prior service cost 124 102 358 260
Net benefit cost 241 235 706 665
Other Postretirement Benefits
Service cost 45 38 134 104
Interest cost 70 79 208 237
Expected return on plan assets (4) (4) (13) (12)
Amortization of actuarial loss/(gain) and prior service cost 13 3 39 10
Net benefit cost 124 116 368 339

7.Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at September 30, ~~2019~~2020, and December 31, ~~2018,~~2019, and the related hierarchy level for the fair value measurement is as follows:

At September 30, 2019

(millions of dollars)

Fair Value

Difference

Total Gross

Effect of

Effect of

in Carrying

Net

Assets

Counterparty

Collateral

Value and

Carrying

Level 1

Level 2

Level 3

& Liabilities

Netting

Netting

Fair Value

Value
Assets

Derivative assets (1)

483

80

-

563

(392)

(91)

-

80

Advances to/receivables

from equity companies (2)(7)

-

1,934

6,948

8,882

-

-

(149)

8,733

Other long-term

financial assets (3)

1,078

-

761

1,839

-

-

78

1,917

Liabilities

Derivative liabilities (4)

414

58

-

472

(392)

(22)

-

58

Long-term debt (5)

25,709

131

4

25,844

-

-

(1,175)

24,669

Long-term obligations

to equity companies (7)

-

-

4,466

4,466

-

-

(234)

4,232

Other long-term

financial liabilities (6)

-

-

1,054

1,054

-

-

(9)

1,045

At December 31, 2018

(millions of dollars)

Fair Value

Difference

Total Gross

Effect of

Effect of

in Carrying

Net

Assets

Counterparty

Collateral

Value and

Carrying

Level 1

Level 2

Level 3

& Liabilities

Netting

Netting

Fair Value

Value
Assets

Derivative assets (1)

297

-

-

297

(151)

(146)

-

-

Advances to/receivables

from equity companies (2)(7)

-

2,100

6,293

8,393

-

-

215

8,608

Other long-term

financial assets (3)

848

-

974

1,822

-

-

112

1,934

Liabilities

Derivative liabilities (4)

151

-

-

151

(151)

-

-

-

Long-term debt (5)

19,029

117

4

19,150

-

-

85

19,235

Long-term obligations

to equity companies (7)

-

-

4,330

4,330

-

-

52

4,382

Other long-term

financial liabilities (6)

-

-

1,046

1,046

-

-

(3)

1,043

(1)
Included in the Balance Sheet lines: Notes and accounts receivable, less estimated doubtful amounts and Other assets, including intangibles, net
(2)
Included in the Balance Sheet line: Investments, advances and long-term receivables
(3)
Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net
(4)
Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations
(5)
Excluding finance lease obligations
(6)
Included in the Balance Sheet line: Other long-term obligations
(7)
Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.


		At September 30, 2020
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	637	121	—	758	(571)	(80)	—	107
	Advances to/receivables
	from equity companies (2)(7)	—	3,152	6,081	9,233	—	—	(193)	9,040
	Other long-term
	financial assets (3)	1,197	—	915	2,112	—	—	130	2,242
Liabilities
	Derivative liabilities (4)	817	91	—	908	(571)	(259)	—	78
	Long-term debt (5)	49,153	149	4	49,306	—	—	(4,031)	45,275
	Long-term obligations
	to equity companies (7)	—	—	3,685	3,685	—	—	(199)	3,486
	Other long-term
	financial liabilities (6)	—	—	1,073	1,073	—	—	11	1,084


		At December 31, 2019
		(millions of dollars)
		Fair Value
		Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets
	Derivative assets (1)	533	102	—	635	(463)	(70)	—	102
	Advances to/receivables
	from equity companies (2)(7)	—	1,941	6,729	8,670	—	—	(128)	8,542
	Other long-term
	financial assets (3)	1,145	—	974	2,119	—	—	44	2,163
Liabilities
	Derivative liabilities (4)	568	70	—	638	(463)	(105)	—	70
	Long-term debt (5)	25,652	134	3	25,789	—	—	(1,117)	24,672
	Long-term obligations
	to equity companies (7)	—	—	4,245	4,245	—	—	(257)	3,988
	Other long-term
	financial liabilities (6)	—	—	1,042	1,042	—	—	16	1,058

(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles, net

(2) Included in the Balance Sheet line: Investments, advances and long-term receivables

(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net

(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5) Excluding finance lease obligations

(6) Included in the Balance Sheet line: Other long-term obligations

(7) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

At September 30, 2020, the Corporation had $462 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

Long-term debt.

The increase in the estimated fair value and book value of long-term debt reflects the ~~Corporation’s~~Corporation's issuance of ~~$7.0~~new debt securities during 2020. The carrying value of these debt securities as of September 30, 2020, is below:


Issuance Date	Description of Notes	Carrying Value
(millions of dollars)
March 2020
	2.992% Notes due 2025	1,500
	3.294% Notes due 2027	1,000
	3.482% Notes due 2030	2,000
	4.227% Notes due 2040	1,250
	4.327% Notes due 2050	2,750
April 2020
	1.571% Notes due 2023	2,750
	2.992% Notes due 2025 (1)	1,310
	2.610% Notes due 2030	2,000
	4.227% Notes due 2040 (1)	842
	3.452% Notes due 2051	2,750
June 2020 (2)
	0.142% Notes due 2024	1,756
	0.524% Notes due 2028	1,171
	0.835% Notes due 2032	1,171
	1.408% Notes due 2039	1,171

	Total	23,421

(1) Includes premiums of $152 million.

(2) Euro-denominated.

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of September 30, 2020, the Corporation has designated $5.3 billion of its Euro-denominated long-term debt ~~in the third quarter~~and related accrued interest as a net investment hedge of ~~2019.~~its European business. The ~~$7.0~~net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $11.0 billion ofand an undrawn long-term debt is comprised of $750 million of floating-rate notes due in 2022, $750 million of 1.902% notes due in 2022, $1,000 million of 2.019% notes due in 2024, $1,000 million of 2.275% notes due in 2026, $1,250 million of 2.440% notes due in 2029, $750 million of 2.995% notes due in 2039, and $1,500 million of 3.095% notes due in 2049. Additionally, the Corporation replaced a $5.0 billion short-term committed line of credit ~~with a $7.5~~of $0.2 billion ~~short-term committed line~~as of ~~credit in~~third quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10.0 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of ~~2019.~~

2020.

Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of September 30, ~~2019~~2020, and December 31, ~~2018,~~2019, or results of operations for the periods ended September 30, ~~2019~~2020, and ~~2018.~~2019.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

~~At September 30, 2019, the~~

The net notional long/(short) position of derivative instruments ~~was 12 million barrels for crude oil, (50) million barrels for products,~~at September 30, 2020, and ~~(146) million MMBtus of natural gas. At~~ December 31, ~~2018, the net notional long/(short) position of derivative instruments~~2019, was ~~(19) million barrels for crude oil and (9) million barrels for products.~~as follows:


	September 30,	December 31,
	2020	2019
	(millions)
Crude oil (barrels)	50	57
Petroleum products (barrels)	(50)	(38)
Natural Gas (MMBTUs)	(438)	(165)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

(millions of dollars)

Sales and other operating revenue

144

(68)

(98)

(72)
Crude oil and product purchases

60

(107)

75

(380)

Total

204

(175)

(23)

(452)



	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Sales and other operating revenue	(297)	144	688	(98)
Crude oil and product purchases	134	60	(396)	75
Total	(163)	204	292	(23)

8.Disclosures about Segments and Related Information


	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Earnings (Loss) After Income Tax	(millions of dollars)		(millions of dollars)
Upstream
United States	(681)	37	(2,582)	468
Non-U.S.	298	2,131	1,084	7,837
Downstream
United States	(136)	673	(338)	822
Non-U.S.	(95)	557	472	603
Chemical
United States	357	53	816	208
Non-U.S.	304	188	456	739
Corporate and financing	(727)	(469)	(2,278)	(2,027)
Corporate total	(680)	3,170	(2,370)	8,650

Sales and Other Operating Revenue
Upstream
United States	1,422	1,941	4,280	7,228
Non-U.S.	2,015	3,069	6,604	10,582
Downstream
United States	12,267	18,358	35,854	52,721
Non-U.S.	23,862	33,391	69,468	100,994
Chemical
United States	2,162	2,412	6,028	7,421
Non-U.S.	3,684	4,241	10,574	13,583
Corporate and financing	13	10	28	30
Corporate total	45,425	63,422	132,836	192,559

Intersegment Revenue
Upstream
United States	2,348	2,876	5,999	7,828
Non-U.S.	5,132	7,383	14,371	22,888
Downstream
United States	2,812	5,439	8,820	16,942
Non-U.S.	3,334	5,826	11,210	18,563
Chemical
United States	1,480	1,489	4,466	5,947
Non-U.S.	895	1,413	2,866	4,543
Corporate and financing	55	60	166	168


Geographic
	Three Months Ended September 30,		Nine Months Ended September 30,
Sales and Other Operating Revenue	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
United States	15,851	22,711	46,162	67,370
Non-U.S.	29,574	40,711	86,674	125,189
Total	45,425	63,422	132,836	192,559

Significant Non-U.S. revenue sources include: (1)
Canada	3,566	4,945	9,537	15,141
United Kingdom	2,827	4,042	8,424	13,244
Singapore	2,400	2,942	6,883	9,197
France	2,273	3,266	6,446	9,597
Italy	2,055	2,691	5,241	7,830
Belgium	1,504	2,598	4,639	9,371

(1)

Three Months Ended

Nine Months Ended

September 30,

September 30,

2019

2018

2019

2018

Earnings After Income Tax

(millions of dollars)

Upstream

United States

37

606

468

1,474

Non-U.S.

2,131

3,623

7,837

9,292

Downstream

United States

673

961

822

1,975

Non-U.S.

557

681

603

1,331

Chemical

United States

53

404

208

1,360

Non-U.S.

188

309

739

1,254

Corporate and financing

(469)

(344)

(2,027)

(1,846)

Corporate total

3,170

6,240

8,650

14,840

Sales and Other Operating Revenue

Upstream

United States

1,941

2,728

7,228

7,637

Non-U.S.

3,069

4,129

10,582

11,344

Downstream

United States

18,358

19,963

52,721

56,616

Non-U.S.

33,391

39,077

100,994

110,855

Chemical

United States

2,412

3,152

7,421

9,160

Non-U.S.

4,241

5,125

13,583

15,429

Corporate and financing

10

13

30

38

Corporate total

63,422

74,187

192,559

211,079

Intersegment Revenue

Upstream

United States

2,876

2,203

7,828

6,336

Non-U.S.

7,383

8,536

22,888

22,788

Downstream

United States

5,439

5,834

16,942

16,527

Non-U.S.

5,826

8,275

18,563

22,975

Chemical

United States

1,489

2,408

5,947

6,952

Non-U.S.

1,413

1,841

4,543

5,657

Corporate and financing

60

54

168

153

Geographic

Three Months Ended

Nine Months Ended

September 30,

September 30,

Sales and Other Operating Revenue

2019

2018

2019

2018

(millions of dollars)

United States

22,711

25,843

67,370

73,413

Non-U.S.

40,711

48,344

125,189

137,666

Total

63,422

74,187

192,559

211,079

Significant Non-U.S. revenue sources include: (1)

Canada

4,945

6,214

15,141

17,752

United Kingdom

4,042

4,797

13,244

14,240

France

3,266

3,588

9,597

10,405

Belgium

2,598

3,996

9,371

12,063

Singapore

2,942

3,502

9,197

10,387

Italy

2,691

3,316

7,830

9,684

Australia

2,100

2,348

5,948

6,464

Germany

1,964

2,518

5,879

7,184

~~(1)~~ Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in Non-U.S. operations where attribution to a specific country is not practicable.

9. Leases

A previously recorded operating lease was renegotiated in the first quarter of 2020 and the new agreement no longer meets the definition of a lease. At year-end 2019, this agreement had been reported as a right of use asset of $1.3 billion and a lease liability of $1.3 billion in the “Other” operating lease category. The new agreement will be reported as a take-or-pay obligation.

10. Allowance for Current Expected Credit Loss (CECL)

9.Effective January 1, 2020, the Corporation adopted the Financial Accounting Standards Board’s update, Financial Instruments – Credit Losses (Topic 326)~~Leases~~, as amended. The standard requires a valuation allowance for credit losses be recognized for certain financial assets that reflects the current expected credit loss over the asset’s contractual life. The valuation allowance considers the risk of loss, even if remote, and considers past events, current conditions and reasonable and supportable forecasts. The standard requires this expected loss methodology for trade receivables, certain other financial assets and off-balance sheet credit exposures. The cumulative effect adjustment related to the adoption of this standard reduced equity by $93 million.

The Corporation is exposed to credit losses primarily through sales of petroleum products, crude oil, NGLs and ~~its consolidated affiliates generally purchase~~natural gas, as well as loans to equity companies and joint venture receivables. A counterparty’s ability to pay is assessed through a credit review process that considers payment terms, the ~~property, plant~~counterparty’s established credit rating or the Corporation’s assessment of the counterparty’s credit worthiness, contract terms, country of operation, and ~~equipment used~~other risks. The Corporation can require prepayment or collateral to mitigate certain credit risks.

The Corporation groups financial assets into portfolios that share similar risk characteristics for purposes of determining the allowance for credit losses. Each reporting period, the Corporation assesses whether a significant change in ~~operations, but there~~the risk of credit loss has occurred. Among the quantitative and qualitative factors considered are ~~situations where~~historical financial data, current conditions, industry and country risk, current credit ratings and the quality of third-party guarantees secured from the counterparty. Financial assets are ~~leased, primarily~~written off in whole, or in part, when practical recovery efforts have been exhausted and no reasonable expectation of recovery exists. Subsequent recoveries of amounts previously written off are recognized in earnings. The Corporation manages receivable portfolios using past due balances as a key credit quality indicator.

The Corporation recognizes a credit allowance for ~~drilling equipment, tankers, office buildings, railcars, and other moveable equipment. Right of use assets and lease liabilities are established~~off-balance sheet credit exposures as a liability on the balance sheet, separate from the allowance for leases with an expected term greater than one year, by discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the probability of exercising any early termination and extension options. The portion of the fixed paymentcredit losses related to ~~service costs for drilling equipment~~recognized financial assets. Among these exposures are unfunded loans to equity companies and tankers is excluded from the calculation of right of use assets and lease liabilities. Generally assets are leased only for a portion of their useful lives, and are accounted for as operating leases. In limited situations assets are leased for nearly all of their useful lives, and are accounted for as finance leases.

~~Variable payments under these lease agreements are not significant. Residual value~~financial guarantees restrictions, or covenants related to leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.

At adoption of the lease accounting change (see Note 2), on January 1, 2019, an operating lease liability of $3.3 billion was recorded and the operating lease right of use asset was $4.3 billion, including $1.0 billion of previously recorded prepaid leases. There was no ~~cumulative earnings effect adjustment.~~

Operating Leases

Drilling Rigs

and Related

Finance

Equipment
Other

Total

Leases

(millions of dollars)

Lease Cost

Three Months Ended September 30, 2019
Operating lease cost

65

310

375

Short-term and other (net of sublease rental income)

259

216

475

Amortization of right of use assets

29
Interest on lease liabilities

35

Total

324

526

850

64

Lease Cost

Nine Months Ended September 30, 2019
Operating lease cost

162

878

1,040

Short-term and other (net of sublease rental income)

712

846

1,558

Amortization of right of use assets

91
Interest on lease liabilities

102

Total

874

1,724

2,598

193

Operating Leases

Drilling Rigs

and Related

Finance

Equipment
Other

Total

Leases

(millions of dollars)

Balance Sheet

September 30, 2019
Right of use assets

Included in Other assets, including intangibles - net

634

5,919

6,553

Included in Property, plant and equipment - net

1,499

Total right of use assets

634

5,919

6,553

1,499

Lease liability due within one year

Included in Accounts payable and accrued liabilities

230

952

1,182

23

Included in Notes and loans payable

169
Long-term lease liability

Included in Other long-term obligations

383

4,014

4,397

Included in Long-term debt

1,281

Included in Long-term obligations to equity companies

139

Total lease liability

613

4,966

5,579

1,612

Maturity Analysis of Lease Liabilities

September 30, 2019
2019 remaining months

58

299

357

173
2020

234

1,026

1,260

205
2021

138

795

933

182
2022

79

557

636

174
2023

44

451

495

173
2024

29

406

435

172
2025 and beyond

71

2,390

2,461

2,427

Total lease payments

653

5,924

6,577

3,506
Discount to present value

(40)

(958)

(998)

(1,894)

Total lease liability

613

4,966

5,579

1,612

Weighted average remaining lease term - years

4

10

10

25
Weighted average discount rate - percent

3.0%

3.2%

3.2%

9.8%

In addition to the lease liabilities in the table immediately above, at September 30, 2019, undiscounted commitments for leases not yet commenced totaled $0.7 billion for operating leases and $3.4 billion for finance leases. The finance leases relate to floating production storage and offloading vessels and a long-term hydrogen purchase agreement. The underlying assets for these finance leases were primarily designed by, and are being constructedthat cannot be cancelled unilaterally by the ~~lessors.~~

Operating Leases

Drilling Rigs

and Related

Finance

Equipment
Other

Total

Leases

(millions of dollars)

Other Information

Nine Months Ended September 30, 2019
Cash paid for amounts included in the measurement of lease liabilities

Cash flows from operating activities

799

799

41

Cash flows from investing activities

192

192

Cash flows from financing activities

48

Noncash right of use assets recorded for lease liabilities

For January 1 adoption of Topic 842

445

2,818

3,263

In exchange for new lease liabilities during the period

341

2,872

3,213

Corporation.

At December 31, 2018, the Corporation and its consolidated subsidiaries held noncancelable operating leases and charters covering drilling equipment, tankers and other assets with minimum undiscounted lease commitments totaling $6,112 million as indicated in the table. Estimated related sublease rental income from noncancelable subleases totals $22 million.

Lease Payments

Under Minimum Commitments

As of December 31, 2018

Drilling Rigs

and Related

Equipment
Other

Total

(millions of dollars)

2019

222

934

1,156
2020

166

819

985
2021

107

658

765
2022

43

506

549
2023

32

422

454
2024 and beyond

53

2,150

2,203
Total

623

5,489

6,112

~~Net rental cost under both cancelable and noncancelable operating leases incurred during 2018, 2017 and 2016 were as follows:~~

For full year

2018

2017

2016

(millions of dollars)

Rental cost

Drilling rigs and related equipment

723

792

1,274

Other (net of sublease rental income)

1,992

1,826

1,817

Total

2,715

2,618

3,091

~~10.Accounting for Suspended Exploratory Well Costs~~

~~For the category of exploratory well costs at year-end 2018 that were suspended more than one year, a total of $18 million was expensed in~~In the first nine months of ~~2019.~~

~~11.~~ ~~Sale~~2020, the COVID-19 pandemic spread through most areas of ~~Norway Assets~~

~~ExxonMobil signed an agreement with Vår Energi AS (Vår) for~~ the ~~sale of its non-operated upstream assets~~world resulting in ~~Norway for $4.5 billion. The transaction is expected to close~~economic uncertainty, global financial market volatility, and negative effects in the fourth quarter of 2019, subject to standard conditions precedent, including customary approvals from regulatory authorities. The agreed sales price of $4.5 billion is subject to interim period adjustments from the effective date of January 1, 2019, to the closing date, and obligations for income taxes from the effective date will transfer to Vår. Estimated total cash flow from the divestment is around $3.5 billion after closing adjustments, with expected 2019 cash proceeds of around $2.6 billion and estimated cash flow in future periods associated with deferred consideration of $0.3 billion and an estimated refund of income tax payments of $0.6 billion.credit markets. The Corporation ~~expects~~has considered these effects, along with the significantly lower balances of trade receivables at the end of the quarter, in its estimate of credit losses and concluded no material adjustment to ~~recognize a gain~~credit allowances in the quarter was required. At September 30, 2020, the Corporation’s evaluation of ~~approximately $3.5 billion at closing. Estimated gain~~financial assets under Financial Instruments – Credit Losses (Topic 326), as amended, included $16,450 million of notes and accounts receivable, net ~~cash flow could change significantly due to market factors~~of allowances of $148 million, and ~~timing~~$9,668 million of ~~close.~~loans and long-term receivables, net of allowances of $436 million, and certain other financial assets where there is immaterial risk of loss.


	Reserve for Notes and Other Receivables and Loans		Liabilities for Off- Balance Sheet Assets
	Trade	Other		Total
	(millions of dollars)
Balance at December 31, 2019	34	469	0	503
Cumulative effect of accounting change	52	45	12	109
Current period provision	0	(4)	(1)	(5)
Write-offs charged against the allowance	(1)	(1)	—	(2)
Other	0	(10)	0	(10)
Balance at September 30, 2020	85	499	11	595

EXXON MOBIL CORPORATION

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations

FUNCTIONAL EARNINGS SUMMARY

Third Quarter

First Nine Months
Earnings (U.S. GAAP)

2019

2018

2019

2018

(millions of dollars)
Upstream

United States

37

606

468

1,474

Non-U.S.

2,131

3,623

7,837

9,292
Downstream

United States

673

961

822

1,975

Non-U.S.

557

681

603

1,331
Chemical

United States

53

404

208

1,360

Non-U.S.

188

309

739

1,254
Corporate and financing

(469)

(344)

(2,027)

(1,846)

Net income attributable to ExxonMobil (U.S. GAAP)

3,170

6,240

8,650

14,840

Earnings per common share (dollars)

0.75

1.46

2.03

3.47

Earnings per common share - assuming dilution (dollars)

0.75

1.46

2.03

3.47

FUNCTIONAL EARNINGS SUMMARY


	Third Quarter		First Nine Months
Earnings (Loss) (U.S. GAAP)	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Upstream
United States	(681)	37	(2,582)	468
Non-U.S.	298	2,131	1,084	7,837
Downstream
United States	(136)	673	(338)	822
Non-U.S.	(95)	557	472	603
Chemical
United States	357	53	816	208
Non-U.S.	304	188	456	739
Corporate and financing	(727)	(469)	(2,278)	(2,027)
Net income (loss) attributable to ExxonMobil (U.S. GAAP)	(680)	3,170	(2,370)	8,650

Earnings (Loss) per common share (dollars)	(0.15)	0.75	(0.55)	2.03

Earnings (Loss) per common share - assuming dilution (dollars)	(0.15)	0.75	(0.55)	2.03

References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings (loss), Upstream, Downstream, Chemical and Corporate and financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

CURRENT ECONOMIC CONDITIONS

Industry conditions seen thus far in 2020 have led to lower realized prices for the Corporation’s products and have resulted in substantially lower earnings and operating cash flow throughout 2020 in comparison to 2019. Market conditions continue to reflect considerable uncertainty as consumer and business activity has exhibited some degree of recovery, but remains lower when compared to prior periods as a result of the pandemic. As long as such conditions persist, negative effects on earnings and cash flow will continue, and project deferrals and idling of capacity will result in lower volumes across one or more business segments relative to 2019 levels. Despite actions taken by key oil-producing countries to reduce oversupply in the near term, and improved credit market conditions providing sufficient liquidity to credit-worthy companies, the unfavorable economic impacts appear increasingly likely to persist to some extent well into 2021.

The Corporation has taken several actions in response to these conditions. In April 2020 the Corporation announced significant reductions in 2020 capital spending and operating expenses. Capital and exploration expenditures for 2020 are expected to be no more than $23 billion, down from the previously announced $33 billion. The Corporation took steps to strengthen its liquidity including issuing $8.5 billion of long-term U.S. debt securities in the first quarter of 2020 and issuing a further $9.5 billion of long-term U.S. debt securities and $5.0 billion of long-term Euro-denominated debt securities in the second quarter of 2020. The Corporation is developing plans consistent with near-term demand uncertainties and does not plan on increasing gross debt above second quarter levels. The Corporation had undrawn short-term committed lines of credit of $11.0 billion and an undrawn long-term committed line of credit of $0.2 billion as of third quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of 2020.

The Corporation continues to manage through this period of unprecedented challenge while preserving opportunities with upside potential when recovery occurs. It is prioritizing opportunities to hold 2021 capital spending in a range of $16 billion to $19 billion and achieve operating expense savings through enhancing organizational focus, eliminating work, reducing discretionary activities and driving efficiencies. Current or future capital spending reductions will result in lower near-term production volumes in the Upstream and delays in previously anticipated volume increases in future years.

In addition, in light of the current low commodity price environment, and depending on the extent and pace of recovery, the Corporation’s planned divestment program could be adversely affected by fewer financially suitable buyers. This could result in a slowing of the pace of divestments, certain assets being sold at a price below current book value, or impairment charges if the likelihood of divesting certain assets increases.

The Corporation has reviewed its near-term spending reductions and resulting near-term production impacts to determine whether they put its long-lived assets at risk for impairment. In large part due to expectations for lower prices in the near term, the Corporation has recorded impairments thus far in 2020 for certain assets that were, in aggregate, insignificant. Despite the challenging near-term environment, the Corporation’s view of long-term supply and demand fundamentals has not changed significantly. However, the Corporation continues to assess its strategic plans and longer-term price views, taking into account current and developing industry and economic conditions and continued market uncertainty, as part of its annual planning process.

As part of this process, the Corporation is assessing its full portfolio to prioritize assets with the highest future value potential within its broad range of available opportunities in order to optimize resources within current levels of debt and operating cash flow while identifying potential asset divestment candidates. This effort includes an ongoing re-assessment of North American dry gas assets currently included in the Corporation’s development plan, as well as assessments of its long-term price views and project execution plans. Depending on the outcome of the planning process, including in particular any significant future changes to the Corporation’s current development plans for its dry gas portfolio, long-lived assets with carrying values of approximately $25 billion to $30 billion could be at risk for significant impairment. However, the Corporation’s planning process may result in development plans for these assets that are reasonably similar to previous years, in which case it is unlikely these assets will be subject to material impairment. This planning process is expected to be completed with required review by the Board of Directors in the fourth quarter. If needed, assessments on an asset-level basis will be completed following this Board review.

As disclosed in ExxonMobil’s 2019 Form 10-K, low crude oil and natural gas prices can impact the Corporation’s estimates of proved reserves as reported under Securities and Exchange Commission (SEC) rules. Among other factors, proved reserves estimates are affected by the level of capital spending, timing, completion, and optimization of development projects, reservoir performance, market prices and differentials, costs, fiscal and commercial terms, government policies, regulatory approvals and partner considerations. The Corporation’s near-term reduction in capital expenditures resulted in a downward revision to estimates of proved reserves reported in the 2019 Form 10-K of approximately 1 billion oil-equivalent barrels, mainly related to unconventional drilling in the United States. Consequently, unit-of-production depreciation and depletion rates for Upstream assets increased beginning in the first quarter, which continued through the third quarter. Average year-to-date crude oil and natural gas prices have been significantly affected by the low prices experienced since the end of the first quarter. Should prices remain near current levels for the remainder of the year, under the SEC definition of proved reserves, certain quantities of crude oil, bitumen and natural gas will not qualify as proved reserves at year-end 2020. Based on available price information for 2020 and the effects of expected reductions in capital spending mentioned above, it is possible that reductions to proved reserves could amount to approximately 25 percent of the Corporation’s 22.4 billion oil-equivalent barrels reported at year-end 2019.

The Corporation has taken steps, in line with government guidelines and restrictions, to limit the spread of COVID-19 among employees, contractors and the broader community, while also maintaining operations to ensure reliable supply of products to customers. The Corporation maintains robust business continuity plans, but should these efforts not be successful the Corporation could experience declines in workforce productivity that exacerbate some of the adverse operating and financial effects noted above.

REVIEW OF THIRD QUARTER ~~2019~~2020 RESULTS

ExxonMobil’s third quarter ~~2019 earnings~~2020 results were ~~$3.2~~a loss of $0.7 billion, or ~~$0.75~~$0.15 per diluted share, compared with ~~$6.2~~earnings of $3.2 billion a year earlier. The decrease in earnings was primarily the result of lower Upstream realizations, ~~weaker~~reduced Downstream margins, and ~~Chemical margins, increased expenses,~~unfavorable non-operational impacts, including less favorable one-time tax ~~items, and higher scheduled maintenance activity.~~items. These impacts were partly offset by ~~Upstream~~lower expenses across all business segments and higher Downstream volume ~~growth.~~

and mix effects.

~~Earnings of $8.7 billion~~

Results for the first nine months of ~~2019~~2020 were ~~down 42 percent from $14.8~~a loss of $2.4 billion, ~~in 2018.~~

~~Earnings~~or $0.55 per diluted share, ~~assuming dilution were $2.03.~~compared with earnings of $8.7 billion a year earlier.

Capital and exploration expenditures were ~~$22.7~~$16.6 billion, ~~up 25 percent~~down $6.1 billion from ~~2018.~~2019.

Oil-equivalent production was ~~3.9~~3.8 million barrels per day, updown 4 percent from the prior year. Excluding entitlement effects, divestments, and ~~divestments,~~government mandates, oil-equivalent production was ~~also up 4 percent.~~essentially flat with the prior year.

The Corporation distributed ~~$10.9~~$11.2 billion in dividends to shareholders.


	Third Quarter		First Nine Months
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Upstream results
United States	(681)	37	(2,582)	468
Non-U.S.	298	2,131	1,084	7,837
Total	(383)	2,168	(1,498)	8,305

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)
Upstream earnings

United States

37

606

468

1,474

Non-U.S.

2,131

3,623

7,837

9,292

Total

2,168

4,229

8,305

10,766

Upstream results were a loss of $383 million in the third quarter of 2020, compared with earnings ~~were~~of $2,168 million in the third quarter of ~~2019,~~2019.

•Realizations reduced earnings by $2,630 million, with lower liquids realizations of $1,830 million and lower gas realizations of $800 million.

•Volume and mix effects reduced earnings by $60 million due to lower gas volumes of $90 million partly offset by higher liquids sales volumes of $30 million.

•All other items increased earnings by $140 million, including lower expenses of $500 million, partly offset by unfavorable non-operational impacts of $310 million, mainly from current and prior year tax items, and other unfavorable earnings impacts of $50 million.

•U.S. Upstream results were a loss of $681 million, down ~~$2,061~~$718 million from the prior year quarter.

•Non-U.S. Upstream earnings were $298 million, down $1,833 million from the prior year quarter.

•On an oil-equivalent basis, production decreased 6 percent from the third quarter of ~~2018.~~2019.

•Liquids production totaled 2.3 million barrels per day, down 106,000 barrels per day, with higher entitlements, lower downtime and growth more than offset by government mandates, divestments, and lower demand.

•Natural gas production was 8.3 billion cubic feet per day, down 729 million cubic feet per day, as higher entitlements were more than offset by divestments, higher downtime, and decline.

·	~~Realizations reduced earnings by $1,510 million, mainly due to lower liquids realizations.~~
·		~~Higher volume and mix effects increased earnings by $230 million due to higher liquids volumes of $190 million and increased gas volumes of $40 million.~~
·	~~All other items decreased earnings by $780 million, mainly due to higher expenses of $410 million and the absence of a favorable one-time tax item of $271 million in the prior year quarter.~~
·	~~U.S. Upstream earnings were $37 million, down $569 million from the prior year quarter.~~
·	~~Non-U.S. Upstream earnings were $2,131 million, down $1,492 million from the prior year quarter.~~
·	~~On an oil-equivalent basis, production increased 3 percent from the third quarter of 2018.~~
·	~~Liquids production totaled 2.4 million barrels per day, up 106,000 barrels per day mainly driven by growth.~~
·	~~Natural gas production was 9.0 billion cubic feet per day, up 44 million cubic feet per day driven by growth, partly offset by higher downtime and divestments.~~

Upstream results were a loss of $1,498 million in the first nine months of 2020, compared with earnings ~~were~~of $8,305 million in the first nine months of ~~2019,~~2019.

•Realizations reduced earnings by $9,050 million, with lower liquids realizations of $6,990 million and lower gas realizations of $2,060 million.

•Volume and mix effects reduced earnings by $320 million, including $100 million for liquids and $220 million for gas.

•All other items decreased earnings by $430 million, as unfavorable non-operational impacts of $1,080 million, reflecting impairments of $410million and a prior year non-U.S. tax item of $490 million, and other unfavorable earnings impacts of $140 million were partly offset by lower expenses of $630 million and favorable foreign exchange effects of $160 million.

•U.S. Upstream results were a loss of $2,582 million, compared with earnings of $468 million in the prior year.

•Non-U.S. Upstream earnings were $1,084 million, down ~~$2,461~~$6,753 million from the prior year.

•On an oil-equivalent basis, production decreased 4 percent from the first nine months of ~~2018.~~2019.

·	~~Realizations reduced earnings by $2,280 million, mainly due to lower liquids realizations.~~
·	~~Higher volume and mix effects increased earnings by $1,030 million due to higher liquids volumes.~~
·	All other items decreased earnings by $1,210 million, as higher expenses of $970 million, impairment charges, and the absence of asset management gains and a favorable one-time tax item in the prior year were partly offset by a favorable one-time tax item in the current year.
·	~~U.S. Upstream earnings were $468 million, down $1,006 million from the prior year.~~
·	~~Non-U.S. Upstream earnings were $7,837 million, down $1,455 million from the prior year.~~
·	~~On an oil-equivalent basis, production increased 4 percent from the first nine months of 2018.~~
·	~~Liquids production totaled 2.4 million barrels per day, up 131,000 barrels per day due to growth and lower downtime.~~
·	~~Natural gas production was 9.4 billion cubic feet per day, up 147 million cubic feet per day driven by growth and lower downtime.~~

•Liquids production totaled 2.4 million barrels per day, down 12,000 barrels per day, with growth, higher entitlements, and lower downtime more than offset by divestments, government mandates, and lower demand.

•Natural gas production was 8.6 billion cubic feet per day, down 794 million cubic feet per day, as higher entitlements and growth were more than offset by divestments and lower demand.


	Third Quarter	First Nine Months
Upstream additional information	(thousands of barrels daily)	(thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)
2019	3,899	3,929
Entitlements - Net Interest	(9)	(8)
Entitlements - Price / Spend / Other	159	108
Government Mandates	(139)	(82)
Divestments	(154)	(163)
Growth / Other	(84)	1
2020	3,672	3,785

(1)

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

Third Quarter

First Nine Months
Upstream additional information

(thousands of barrels daily)

Volumes reconciliation (Oil-equivalent production)(1)

2018

3,786

3,774

Entitlements - Net Interest

-

-

Entitlements - Price / Spend / Other

23

19

Quotas

-

-

Divestments

(12)

(16)

Growth / Other

102

152

2019

3,899

3,929

(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.

Listed below are descriptions of ExxonMobil’s volumes reconciliation factors 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 factors. These factors 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 and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining factors. These factors 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 factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

~~Quotas~~Government Mandates are changes ~~in ExxonMobil’s allowable~~to ExxonMobil's sustainable production ~~arising from~~levels due to temporary non-operational production ~~constraints~~limits imposed by ~~countries which are members~~governments, generally upon a sector, type or method of ~~the Organization of the Petroleum Exporting Countries (OPEC). Volumes reported in this category would have been readily producible in the absence of the quota.~~production.

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 factors comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil. Such factors 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.


	Third Quarter		First Nine Months
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Downstream results
United States	(136)	673	(338)	822
Non-U.S.	(95)	557	472	603
Total	(231)	1,230	134	1,425

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)
Downstream earnings

United States

673

961

822

1,975

Non-U.S.

557

681

603

1,331

Total

1,230

1,642

1,425

3,306

Downstream ~~earnings~~results were ~~$1,230~~a loss of $231 million in the third quarter of ~~2019,~~2020, down ~~$412~~$1,461 million from the third quarter of ~~2018.~~2019.

•

Margins decreased earnings by $1,880 million, mainly reflecting lower industry refining margins.

•Volume and mix effects increased earnings by $120 million.

•All other items increased earnings by $300 million, mainly due to lower expenses of $360 million partly offset by unfavorable non-operational impacts of $90 million.

•U.S. Downstream results were a loss of $136 million, compared with earnings of $673 million in the prior year quarter.

•Non-U.S. Downstream results were a loss of $95 million, down $652 million from the prior year quarter.

•Petroleum product sales of 5.0 million barrels per day were 481,000 barrels per day lower than the prior year quarter.

·	~~Margins reduced earnings by $340 million, mainly due to lower U.S. margins.~~
·		~~Lower volume and mix effects decreased earnings by $20 million.~~
·	~~All other items reduced earnings by $50 million as higher expenses were partly offset by favorable foreign exchange and tax effects.~~
·	~~U.S. Downstream earnings were $673 million, down $288 million from the prior year quarter.~~
·	~~Non-U.S. Downstream earnings were $557 million, down $124 million from the prior year quarter.~~
·	~~Petroleum product sales of 5.5 million barrels per day were 112,000 barrels per day lower than the prior year quarter.~~

Downstream ~~earnings~~results were ~~$1,425~~$134 million in the first nine months of ~~2019,~~2020, down ~~$1,881~~$1,291 million from the first nine months of ~~2018.~~

·	~~Margins reduced earnings by $1,430 million, reflecting lower U.S. and Non-U.S. margins.~~
·	~~Lower volume and mix effects decreased earnings by $80 million.~~
·	~~All other items reduced earnings by $370 million as higher expenses were partly offset by favorable foreign exchange effects.~~
·	~~U.S. Downstream earnings were $822 million, down $1,153 million from the prior year.~~
·	~~Non-U.S. Downstream earnings were $603 million, down $728 million from the prior year.~~
·	~~Petroleum product sales of 5.4 million barrels per day were 74,000 barrels per day lower than the prior year.~~

2019.

•Margins decreased earnings by $2,260 million, as weaker industry refining margins were partly offset by favorable mark-to-market derivatives.

•Volume and mix effects increased earnings by $400 million.

•All other items increased earnings by $560 million, as lower expenses of $860 million were partly offset by unfavorable non-operational impacts associated with impairments of $350 million.

•U.S. Downstream results were a loss of $338 million, compared with earnings of $822 million in the prior year.

•Non-U.S. Downstream results were $472 million, down $131 million from the prior year.

•Petroleum product sales of 4.9 million barrels per day were 527,000 barrels per day lower than the prior year.

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)
Chemical earnings

United States

53

404

208

1,360

Non-U.S.

188

309

739

1,254

Total

241

713

947

2,614

Third Quarter First Nine Months
2020 2019 2020 2019
(millions of dollars) (millions of dollars)
Chemical results
United States 357 53 816 208
Non-U.S. 304 188 456 739
Total 661 241 1,272 947

Chemical earnings were ~~$241~~$661 million in the third quarter of ~~2019, down $472~~2020, up $420 million from the third quarter of ~~2018.~~2019.

•

·Higher margins increased earnings by $70 million. •Volume and mix effects increased earnings by $30 million. •All other items increased earnings by $320 million, mainly due to lower expenses of $170 million and favorable non-operational impacts associated with an inventory adjustment of $120 million. •	~~Weaker margins reduced earnings by $350 million.~~
·	~~Volume and mix effects decreased earnings by $60 million.~~
·	~~All other items decreased earnings by $60 million, including the impact of higher expenses.~~
·	U.S. ~~Chemical earnings were $53 million, down $351 million from the prior year quarter.~~
·	~~Non-U.S. Chemical earnings were $188 million, down $121 million from the prior year quarter.~~
·	~~Third quarter prime product sales of 6.5 million metric tons were 201,000 metric tons lower than the prior year quarter.~~

Chemical earnings were ~~$947~~$357 million, up $304 million, compared with earnings of $53 million in the prior year quarter.

•Non-U.S. Chemical results were $304 million, up $116 million from the prior year quarter.

•Third quarter prime product sales of 6.6 million metric tons were 148,000 metric tons higher than the prior year quarter.

Chemical earnings were $1,272 million in the first nine months of ~~2019, down $1,667~~2020, up $325 million from the first nine months of ~~2018.~~2019.

•

·	~~Weaker margins reduced earnings by $1,140 million.~~
·	~~Volume and mix effects were essentially flat.~~
·	~~All other items decreased earnings by $530 million due to higher expenses and unfavorable foreign exchange effects.~~
·	~~U.S. Chemical earnings were $208 million, down $1,152 million from the prior year.~~
·	~~Non-U.S. Chemical earnings were $739 million, down $515 million from the prior year.~~
·	~~Prime product sales of 19.9 million metric tons in the first nine months of 2019 were 250,000 metric tons lower than the first nine months of the prior year.~~

Higher margins increased earnings by $190 million.

•

Volume and mix effects decreased earnings by $220 million.

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)

Corporate and financing earnings

(469)

(344)

(2,027)

(1,846)

•

All other items increased earnings by $350 million, as lower expenses of $380 million and other favorable earnings impacts of $30 million were partly offset by unfavorable non-operational impacts, including impairments of $130 million.

•U.S. Chemical earnings were $816 million, up $608 million from the prior year.

•Non-U.S. Chemical earnings were $456 million, down $283 million from the prior year.

•First nine months prime product sales of 18.8 million metric tons were 1.1 million metric tons lower than the prior year.


	Third Quarter		First Nine Months
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Corporate and financing results	(727)	(469)	(2,278)	(2,027)

Corporate and financing expenses were ~~$469~~$727 million for the third quarter of ~~2019,~~2020, up ~~$125~~$258 million from the third quarter of ~~2018.~~2019, reflecting the absence of a prior year favorable one-time tax item.

Corporate and financing expenses were ~~$2,027~~$2,278 million for the first nine months of ~~2019,~~2020, up ~~$181~~$251 million from 2019, reflecting the ~~first nine months~~absence of ~~2018.~~

prior year favorable one-time tax items and higher financing costs partly offset by lower corporate costs.

LIQUIDITY AND CAPITAL RESOURCES

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)
Net cash provided by/(used in)

Operating activities

23,364

27,407

Investing activities

(18,820)

(10,862)

Financing activities

(2,162)

(13,945)
Effect of exchange rate changes

(73)

(108)
Increase/(decrease) in cash and cash equivalents

2,309

2,492

Cash and cash equivalents (at end of period)

5,351

5,669

Cash flow from operations and asset sales

Net cash provided by operating activities (U.S. GAAP)

9,079

11,108

23,364

27,407

Proceeds associated with sales of subsidiaries, property,

plant & equipment, and sales and returns of investments

460

1,491

600

3,239

Cash flow from operations and asset sales

9,539

12,599

23,964

30,646

LIQUIDITY AND CAPITAL RESOURCES


	Third Quarter		First Nine Months
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Net cash provided by/(used in)
Operating activities			10,663	23,364
Investing activities			(15,157)	(18,820)
Financing activities			10,568	(2,162)
Effect of exchange rate changes			(331)	(73)
Increase/(decrease) in cash and cash equivalents			5,743	2,309

Cash and cash equivalents (at end of period)			8,832	5,351

Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)	4,389	9,079	10,663	23,364
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	100	460	229	600
Cash flow from operations and asset sales	4,489	9,539	10,892	23,964

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 third quarter of ~~2019~~2020 was ~~$9.5 billion, including asset sales of $0.5~~$4.5 billion, a decrease of ~~$3.1~~$5.1 billion from the comparable ~~2018~~2019 period primarily reflecting lower earnings and unfavorable working capital impacts. Current market conditions and the ability of counterparties to secure financing may negatively affect the pace of asset ~~sale proceeds.~~

sales in 2020.

Cash provided by operating activities totaled ~~$23.4~~$10.7 billion for the first nine months of ~~2019, $4.0~~2020, $12.7 billion lower than ~~2018. The major source of funds was net~~2019. Net income including noncontrolling interests was a loss of ~~$9.0~~$2.6 billion, a decrease of ~~$6.2~~$11.7 billion from the prior year period. The ~~adjustment~~adjustments for the noncash ~~provision of $14.1~~provisions were $15.7 billion for depreciation and depletion ~~was up $0.4~~and $0.1 billion ~~from 2018.~~for the lower of cost or market inventory adjustment. Changes in operational working capital ~~contributed $2.6~~were a reduction of $1.5 billion, compared to a ~~decrease~~contribution of ~~$25 million~~$2.6 billion in the prior year period. All other items net decreased cash flows by ~~$2.3~~$0.9 billion in ~~2019~~2020 versus a reduction of ~~$1.5~~$2.3 billion in ~~2018.~~2019. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first nine months of ~~2019~~2020 used net cash of ~~$18.8~~$15.2 billion, ~~an increase~~a decrease of ~~$8.0~~$3.7 billion compared to the prior year. Spending for additions to property, plant and equipment of ~~$17.7~~$13.7 billion was ~~$4.2~~$4.0 billion ~~higher~~lower than ~~2018.~~2019. Proceeds from asset sales of ~~$0.6~~$0.2 billion ~~decreased $2.6 billion. Investments~~were $0.4 billion lower than the prior year. Net investments and advances ~~increased $1.4 billion~~were comparable to ~~$2.5~~the prior year at $1.7 billion.

~~Cash flow from operations and asset sales in~~

During the first nine months of ~~2019 was $24.0 billion, including asset sales of $0.6 billion, a decrease of $6.7 billion from the comparable 2018 period primarily reflecting lower earnings and asset sale proceeds.~~

~~During the third quarter of 2019,~~2020, the Corporation issued ~~$7.0~~$23.2 billion of long-term ~~debt and used part of the proceeds to reduce short-term~~ debt. Net cash ~~used~~provided by financing activities was ~~$2.2~~$10.6 billion in the first nine months of ~~2019, $11.8~~2020, $12.7 billion ~~lower~~higher than ~~2018~~2019 reflecting the ~~2019~~2020 debt ~~issuance.~~

issuances.

Total debt at the end of the third quarter of ~~2019~~2020 was ~~$47.1~~$68.8 billion compared to ~~$37.8~~$46.9 billion at year-end ~~2018.~~2019. The Corporation's debt to total capital ratio was ~~19.3~~27.1 percent at the end of the third quarter of ~~2019~~2020 compared to ~~16.0~~19.1 percent at year-end ~~2018.~~

The Corporation has access to significant capacity of long-term and short-term liquidity. Internally generated funds are generally expected to cover financial requirements, supplemented by short-term and long-term debt as required. The Corporation replaced a $5.0 billion short-term committed line of credit with a $7.5 billion short-term committed line of credit in the third quarter of 2019.

During the first nine months of ~~2019,~~2020, Exxon Mobil Corporation purchased 56 million shares of its common stock for the treasury at a gross cost of ~~$0.4~~$0.3 billion. These purchases were made to offset shares or units settled in shares issued in conjunction with the company’s benefit plans and programs. Shares outstanding decreased from ~~4,237~~4,234 million at year-end ~~2018~~ to ~~4,231~~4,228 million at the end of the third quarter of ~~2019.~~2020. Purchases may be made both in the open market and through negotiated transactions, and may be increased, decreased or discontinued at any time without prior notice.

The Corporation has access to significant capacity of long-term and short-term liquidity. Commercial paper continues to provide short-term liquidity and the balance of commercial paper outstanding was $18.8 billion as of September 30, 2020. Cash and cash equivalents was $8.8 billion at the end of the third quarter of 2020. The Corporation had undrawn short-term committed lines of credit of $11.0 billion and an undrawn long-term committed line of credit of $0.2 billion as of third quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10.0 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of 2020.

Internally generated funds and available cash are generally expected to cover financial requirements, supplemented by short-term and long-term debt as required. The Corporation is developing plans consistent with near-term demand uncertainties and does not plan on increasing gross debt above second quarter levels.

The Corporation distributed a total of ~~$10.9~~$11.2 billion to shareholders in the first nine months of ~~2019~~2020 through dividends.

~~Total cash and cash equivalents of $5.4 billion at the end of the third quarter of 2019 compared to $3.0 billion at year-end 2018.~~

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 potential for future growth and attractive current valuations. Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.

Litigation and other contingencies are discussed in Note 3 to the unaudited condensed consolidated financial statements.

TAXES

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)

Income taxes

1,474

2,634

4,598

7,617

Effective income tax rate

37
%

34
%

41
%

39
%
Total other taxes and duties (1)

8,317

8,939

24,770

26,757

Total

9,791

11,573

29,368

34,374

TAXES


	Third Quarter				First Nine Months
	2020		2019		2020		2019
	(millions of dollars)				(millions of dollars)
Income taxes	337		1,474		378		4,598
Effective income tax rate	-198	%	37	%	-56	%	41	%
Total other taxes and duties (1)	7,901		8,317		21,081		24,770
Total	8,238		9,791		21,459		29,368

(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selling, general and administrative expenses.”

Total taxes were ~~$9.8~~$8.2 billion for the third quarter of ~~2019,~~2020, a decrease of ~~$1.8~~$1.6 billion from ~~2018.~~2019. Income tax expense was $0.3 billion compared to $1.5 billion in the prior year reflecting operating losses driven by lower commodity prices. The effective income tax rate of -198 percent compared to 37 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties decreased by $0.4 billion to $7.9 billion.

Total taxes were $21.5 billion for the first nine months of 2020, a decrease of $7.9 billion from 2019. Income tax expense decreased by ~~$1.2~~$4.2 billion to ~~$1.5~~$0.4 billion reflecting lower pre-tax income. The effective income tax rate ~~was 37~~of -56 percent compared to 3441 percent in the prior year period primarily due to a ~~higher share~~change in mix of ~~earnings~~results in ~~higher~~jurisdictions with varying tax ~~jurisdictions.~~rates. Total other taxes and duties decreased by ~~$0.6~~$3.7 billion to ~~$8.3~~$21.1 billion.

Total taxes were $29.4 billion for the first nine months of 2019, a decrease of $5.0 billion from 2018. Income tax expense decreased by $3.0 billion to $4.6 billion reflecting lower pre-tax income. The effective income tax rate was 41 percent compared to 39 percent in the prior year period due to a higher share of earnings in higher tax jurisdictions. Total other taxes and duties decreased by $2.0 billion to $24.8 billion.

In the United States, the Corporation has various ongoing U.S. federal income tax positions at issue with the Internal Revenue Service (IRS) for tax years beginning in 2006. The Corporation filed a refund suit for tax years 2006-2009 in U.S. federal district court (District Court) with respect to the positions at issue for those years. On February 24, 2020, the Corporation received an adverse ruling on this suit. Proceedings in the District Court are continuing. Unfavorable resolution of all positions at issue with the IRS would not have a materially adverse effect on the Corporation’s net income or liquidity. The IRS has asserted penalties associated with several of those positions. The Corporation has not recognized the penalties as an expense because the Corporation does not expect the penalties to be sustained under applicable law. The Corporation has filed a refund suit for tax years 2006-2009 in a U.S. federal district court with respect to the positions at issue for those years. The trial for those tax issues was completed at the end of June 2019 and the Corporation is awaiting a decision, which may be appealed by either side. Unfavorable resolution of all positions at issue with the IRS would not have a materially adverse effect on the Corporation’s net income or liquidity.

CAPITAL AND EXPLORATION EXPENDITURES

Third Quarter

First Nine Months

2019

2018

2019

2018

(millions of dollars)

Upstream (including exploration expenses)

5,791

5,330

17,394

13,944

Downstream

1,069

719

3,011

2,563

Chemical

852

526

2,266

1,524

Other

7

11

17

49

Total

7,719

6,586

22,688

18,080

CAPITAL AND EXPLORATION EXPENDITURES


	Third Quarter		First Nine Months
	2020	2019	2020	2019
	(millions of dollars)		(millions of dollars)
Upstream (including exploration expenses)	2,794	5,791	11,497	17,394
Downstream	772	1,069	3,059	3,011
Chemical	564	852	2,041	2,266
Other	3	7	6	17
Total	4,133	7,719	16,603	22,688

Capital and exploration expenditures in the third quarter of ~~2019~~2020 were ~~$7.7~~$4.1 billion, ~~up 17~~down 46 percent from the third quarter of ~~2018.~~

2019.

Capital and exploration expenditures in the first nine months of ~~2019~~2020 were ~~$22.7~~$16.6 billion, ~~up 25~~down 27 percent from the first nine months of ~~2018 due primarily~~2019 in response to ~~growth in the U.S. Permian Basin.~~market conditions. The Corporation anticipates an investment level of ~~approximately $30~~no more than $23 billion in ~~2019.~~2020, down from the previously announced $33 billion. Actual spending could vary depending on the progress of individual projects and property acquisitions.

~~RECENTLY ISSUED ACCOUNTING STANDARDS~~

FORWARD-LOOKING STATEMENTS

Statements related to outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions are forward-looking statements. Actual future results, including financial and operating performance; the impact of the COVID-19 pandemic on results; planned capital and cash operating expense reductions and ability to meet or exceed announced reduction objectives; total capital expenditures and mix; earnings; cash flow; capital allocation and debt levels; dividend and shareholder returns; business and project plans, ~~capacities,~~timing, costs and ~~timing;~~capacities; resource recoveries and production rates; accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions, including potential impairment charges resulting from any significant changes in current development plan strategy or divestment plans; the pace and outcome of divestments; and the impact of new technologies, including to increase capital efficiency and production and to reduce greenhouse gas emissions and intensity, 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 ~~petrochemicals~~feedstocks and other market conditions that impact prices and differentials; the outcome of government policies and actions, including actions taken to address COVID-19 and to maintain the functioning of national and global economies and markets; the impact of company actions to protect the health and safety of employees, vendors, customers, and communities; actions of competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the severity, length and ultimate impact of COVID-19 on people and economies, including the nature and pace of economic recovery as well as the ability of ExxonMobil and its vendors and contractors to maintain operations while taking appropriate health protective measures for employees and others; reservoir performance; the outcome of exploration projects and timely completion of development and construction projects; ~~the impact of fiscal and commercial terms and the outcome of commercial negotiations or acquisitions;~~ changes in law, taxes, or regulation including environmental regulations, and timely granting of governmental permits; war, trade ~~relations,~~agreements and patterns, shipping blockades or harassment, and other political or security disturbances; opportunities for and regulatory approval of potential investments or divestments; the actions of competitors; the capture of efficiencies within and between business ~~lines;~~lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating difficulties; ~~unexpected technological developments;~~the development and competitiveness of alternative energy and emission reduction technologies; the results of research programs; the ability to bring new technologies to commercial scale on a cost-competitive basis, including emission reduction technologies and large-scale hydraulic fracturing projects; general economic conditions including the occurrence and duration of economic recessions; ~~the results of research programs;~~ and other factors discussed under the heading Factors Affecting Future Results on the Investors page of our website at www.exxonmobil.com and in Item 1A of ExxonMobil’s ~~2018~~2019 Form ~~10-K.~~10-K and subsequent Forms 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020. Statements regarding plans or potential outcomes for the fourth quarter 2020 and 2021 also remain subject to completion of ExxonMobil’s annual corporate planning process and approval of the resulting company plan by the Board of Directors, expected in November 2020. We assume no duty to update these statements as of any future date.

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.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the nine months ended September 30, ~~2019,~~2020, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for ~~2018.~~

2019.

Item 4. Controls and Procedures

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, Principal Financial Officer and Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of September 30, ~~2019.~~2020. Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

On August 5, 2019, the State of Texas, acting by and through its Attorney General, on behalf of the Texas Commission on Environmental Quality (State), filed a lawsuit against the Corporation due to an alleged fire that occurred on July 31, 2019, at the Baytown Olefins Plant in Texas. The State alleges that ExxonMobil violated, and continues to violate, the Texas Water Code, the Texas Clean Air Act, ExxonMobil’s permits and promulgated regulations for alleged unauthorized air pollution, unauthorized outdoor burning, nuisance, unauthorized visible emissions, and unauthorized discharge of firefighting wastewater at the plant. The State is seeking civil penalties in an undisclosed amount but likely in excess of $100,000 and injunctive relief against ExxonMobil. The State is also seeking to recover its fees and costs of litigation.

As reported in the Corporation’s Form 10-Q for the ~~first~~third quarter of 2017, ExxonMobil appealed to the U.S. Court of Appeals for the Fifth Circuit a judgment of the United States District Court for the Southern District of Texas entered on April 26, 2017, in a citizen suit captioned Environment Texas Citizen Lobby, Inc. et al. v. Exxon Mobil Corporation. The U.S. District Court had awarded approximately $20 million in civil penalties, payable to the United States Treasury. In the suit filed in December 2010, Environment Texas Citizen Lobby, Inc. and ~~second quarters~~the Sierra Club, Lone Star Chapter, sought declaratory and injunctive relief, penalties, attorney fees and litigation costs associated with alleged violations of ~~2019, on March 20, 2019,~~Title V of the Clean Air Act. Plaintiffs alleged that ExxonMobil repeatedly violated, and will continue to violate, its air operating permits, the Texas State Implementation Plan and the Clean Air Act by emitting air pollutants into the atmosphere from the Baytown complex in excess of applicable emission limitations or otherwise without authorization at the Baytown, Texas, refinery, chemical plant and olefins plant. On July 29, 2020, the Fifth Circuit vacated the District Court’s penalty award and remanded the case back to the District Court for further proceedings. A revised decision in the District Court could occur as early as the fourth quarter of 2020.

The State of ~~California Air Resources Board (CARB) informed~~Texas filed a lawsuit against ExxonMobil Oil Corporation (EMOC) ~~of its intention to attempt to settle an enforcement matter involving the formerly owned Torrance~~on August 19, 2020, seeking penalties and injunctive relief for 13 alleged unauthorized emissions events at EMOC’s Beaumont Refinery in ~~California~~Texas from 2017 to 2020. The State alleged violations under the ~~California Health and Safety Code. Specifically, CARB contended that~~Texas Clean Air Act, including the ~~refinery failed~~alleged failure of EMOC to timely ~~calibrate~~notify the Texas Commission on Environmental Quality of reportable emissions events and ~~inspect~~alleged failure to submit a ~~greenhouse gas reporting meter as required by the applicable regulations and to accurately report greenhouse gas emissions from refinery operations~~proper certification in ~~2014 and 2015 in a manner consistent with applicable regulations.~~its October 26, 2018 permit compliance certification. The ~~alleged violations have been corrected. On or about June 7, 2019, CARB and EMOC agreed on a penalty~~lawsuit, captioned State of $493,500 to resolve the matter. The settlement agreement was fully executed by all parties on July 15, 2019, and the final settlement payment to CARB pursuant to the settlement agreement was paid on or about August 6, 2019.

As last reported in the Corporation’s Form 10-Q for the second quarter of 2019, on July 20, 2017, the United States Department of Treasury, Office of Foreign Assets Control (OFAC) assessed a civil penalty against Exxon Mobil Corporation, ExxonMobil Development Company andTexas v. ExxonMobil Oil Corporation, ~~for violating~~was filed in the ~~Ukraine-Related Sanctions Regulations, 31 C.F.R. part 589.~~98th Judicial District Court of Travis County, Texas. The ~~assessed civil penalty is in~~State has not quantified the amount of $2,000,000. ExxonMobil and its affiliates have been and continue to be in compliance with all sanctions and disagree that any violation has occurred. ExxonMobil and its affiliates filed a complaint on July 20, 2017, in the ~~United States Federal District Court, Northern District of Texas seeking judicial review of, and to enjoin, the civil~~ penalty under the Administrative Procedures Act and the United States Constitution, including on the basis that it represents an arbitrary and capricious action by OFAC and a violation of the Company’s due process rights.sought.

Refer to the relevant portions of Note 3 of this Quarterly Report on Form 10-Q for further information on legal proceedings.

Item 1A. Risk Factors

The risk factors that are discussed in Item 1A of the registrant’s Annual Report on Form 10-K for 2019, including those risk factors in respect of commodity supply and demand and public health, encompass, among other things, current market conditions of production oversupply as well as demand reduction due to the COVID-19 pandemic which has led to a significant decrease in commodity prices. Our future business results, including cash flows and financing needs, will be affected by the extent and duration of these conditions and the effectiveness of responsive actions that we and others take, including our actions to reduce capital and operating expenses and government actions to address the COVID-19 pandemic, as well as any resulting impact on national and global economies and markets. At this time, it is difficult to predict the timing of any resolution of the current supply imbalances and the ultimate impact of COVID-19, and we continue to monitor market developments and evaluate the impacts of decreased demand on our production levels, as well as impacts on project development and future production.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

~~Item 2. Unregistered Sales of Equity Securities and Use of Proceeds~~

Issuer Purchase of Equity Securities for Quarter Ended September 30, ~~2019~~

2020

Period

Total Number
of Shares
Purchased

Average
Price Paid
per Share

Total Number of
Shares Purchased
as Part of Publicly
Announced Plans
or Programs

Maximum Number

~~Shares Purchased~~

of Shares that May

~~Total Number~~

~~Average~~

~~as Part of Publicly~~

Yet Be Purchased

~~of Shares~~

~~Price Paid~~

~~Announced Plans~~

Under the Plans
or Programs

~~Period~~July 2020

—

~~Purchased~~

~~per Share~~

~~or Programs~~

~~Programs~~

August 2020

—

~~July 2019~~September 2020

—

~~August 2019~~Total

—

~~September 2019~~

~~Total~~

(See Note 1)

Note 1 - On August 1, 2000, the Corporation announced its intention to resume purchases of shares of its common stock for the treasury both to offset shares issued in conjunction with company benefit plans and programs and to gradually reduce the number of shares outstanding. The announcement did not specify an amount or expiration date. The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases. In its earnings release dated February 2, 2016, the Corporation stated it will continue to acquire shares to offset dilution in conjunction with benefit plans and programs, but had suspended making purchases to reduce shares outstanding effective beginning the first quarter of 2016.

Item 6. Exhibits

See Index to Exhibits of this report.

INDEX TO EXHIBITS

~~Exhibit~~	~~Description~~
Exhibit		Description
~~31.1~~
3(ii)		By-Laws, as amended effective March 1, 2020 (incorporated by reference to Exhibit 3(ii) to the Registrant’s Report on Form 8-K of March 3, 2020).
10(iii)(f.4)		Standing resolution for non-employee director cash fees dated March 1, 2020 (incorporated by reference to Exhibit 10(iii)(f.4) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2020).
31.1		Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.
31.2		Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.
31.3		Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.
32.1		Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.
32.2		Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.
32.3		Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.
101		Interactive Data Files (formatted as Inline XBRL).
104		Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

EXXON MOBIL CORPORATION

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	EXXON MOBIL CORPORATION
Date: November ~~6, 2019~~ 4, 2020	By:	/s/ DAVID S. ROSENTHAL
		David S. Rosenthal
		Vice President, Controller and
		Principal Accounting Officer


New Jersey		13-5409005
(State or other jurisdiction of	~~(I.R.S. Employer~~
incorporation or organization)	(I.R.S. Employer Identification Number)


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐


Class						Outstanding as of September 30, ~~2019~~ 2020
Common stock, without par value						~~4,231,106,066~~4,228,234,114


PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Condensed Consolidated Statement of Income Three and nine months ended September 30, ~~2019~~2020 and ~~2018~~ 2019			3

Condensed Consolidated Statement of Comprehensive Income Three and nine months ended September 30, ~~2019~~2020 and ~~2018~~ 2019			4

Condensed Consolidated Balance Sheet As of September 30, ~~2019~~2020 and December 31, ~~2018~~ 2019			5

Condensed Consolidated Statement of Cash Flows Nine months ended September 30, ~~2019~~2020 and ~~2018~~ 2019			6

Condensed Consolidated Statement of Changes in Equity Three months ended September 30, ~~2019~~2020 and ~~2018~~ 2019			7

Condensed Consolidated Statement of Changes in Equity Nine months ended September 30, ~~2019~~2020 and ~~2018~~ 2019			8

Notes to Condensed Consolidated Financial Statements			9

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations			20

Item 3.Quantitative and Qualitative Disclosures About Market Risk			2830

Item 4.Controls and Procedures			2830


PART II. OTHER INFORMATION

Item 1.Legal Proceedings			2931

Item 1A. Risk Factors			31

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds			3032

Item 6.Exhibits			3032

Index to Exhibits			3133

Signature			3234


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)

	Three Months Ended September 30,		Nine Months Ended September 30,
	2020	2019	2020	2019
Net income (loss) including noncontrolling interests	(709)	3,247	(2,648)	9,044
Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment	1,469	(1,424)	(1,305)	(75)
Adjustment for foreign exchange translation (gain)/loss included in net income	14	0	14	0
Postretirement benefits reserves adjustment (excluding amortization)	(140)	103	(189)	43
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	206	186	613	512
Total other comprehensive income (loss)	1,549	(1,135)	(867)	480
Comprehensive income (loss) including noncontrolling interests	840	2,112	(3,515)	9,524
Comprehensive income (loss) attributable to noncontrolling interests	92	14	(449)	587
Comprehensive income (loss) attributable to ExxonMobil	748	2,098	(3,066)	8,937


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
	September 30, 2020	December 31, 2019
Assets
Current assets
Cash and cash equivalents	8,832	3,089
Notes and accounts receivable – net	19,974	26,966
Inventories
Crude oil, products and merchandise	13,162	14,010
Materials and supplies	4,723	4,518
Other current assets	2,002	1,469
Total current assets	48,693	50,052
Investments, advances and long-term receivables	43,609	43,164
Property, plant and equipment – net	250,496	253,018
Other assets, including intangibles – net	15,245	16,363
Total assets	358,043	362,597

Liabilities
Current liabilities
Notes and loans payable	21,911	20,578
Accounts payable and accrued liabilities	33,340	41,831
Income taxes payable	1,217	1,580
Total current liabilities	56,468	63,989
Long-term debt	46,888	26,342
Postretirement benefits reserves	22,097	22,304
Deferred income tax liabilities	24,467	25,620
Long-term obligations to equity companies	3,486	3,988
Other long-term obligations	20,025	21,416
Total liabilities	173,431	163,659

Commitments and contingencies (Note 3)

Equity
Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	15,997	15,637
Earnings reinvested	407,728	421,341
Accumulated other comprehensive income	(20,189)	(19,493)
Common stock held in treasury
(3,791 million shares at September 30, 2020 and 3,785 million shares at December 31, 2019)	(226,136)	(225,835)
ExxonMobil share of equity	177,400	191,650
Noncontrolling interests	7,212	7,288
Total equity	184,612	198,938
Total liabilities and equity	358,043	362,597

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)

			Three Months Ended		Nine Months Ended
			September 30,		September 30,
			2019	2018	2019	2018
Revenues and other income
	Sales and other operating revenue		63,422	74,187	192,559	211,079
	Income from equity affiliates		1,196	1,960	4,264	5,599
	Other income		431	458	942	1,639
		Total revenues and other income	65,049	76,605	197,765	218,317
Costs and other deductions
	Crude oil and product purchases		35,290	41,776	109,033	119,391
	Production and manufacturing expenses		8,848	9,097	27,340	26,506
	Selling, general and administrative expenses		2,753	2,892	8,350	8,632
	Depreciation and depletion		4,873	4,658	14,075	13,717
	Exploration expenses, including dry holes		299	292	912	911
	Non-service pension and postretirement benefit expense		357	307	1,028	952
	Interest expense		232	200	629	551
	Other taxes and duties		7,676	8,303	22,756	24,825
		Total costs and other deductions	60,328	67,525	184,123	195,485
Income before income taxes			4,721	9,080	13,642	22,832
	Income taxes		1,474	2,634	4,598	7,617
Net income including noncontrolling interests			3,247	6,446	9,044	15,215
	Net income attributable to noncontrolling interests		77	206	394	375
Net income attributable to ExxonMobil			3,170	6,240	8,650	14,840


Earnings per common share (dollars)			0.75	1.46	2.03	3.47

Earnings per common share - assuming dilution (dollars)			0.75	1.46	2.03	3.47


	Three Months Ended September 30, 2020			Three Months Ended September 30, 2019
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of June 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231
Acquisitions	—	—	—	—	—	—
Dispositions	—	—	—	—	—	—
Balance as of September 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231


	Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of December 31	8,019	(3,785)	4,234	8,019	(3,782)	4,237
Acquisitions	—	(6)	(6)	—	(6)	(6)
Dispositions	—	—	—	—	—	—
Balance as of September 30	8,019	(3,791)	4,228	8,019	(3,788)	4,231

			As of September 30, 2019
			Equity	Other
			Company	Third Party
			Obligations (1)	Obligations	Total
			(millions of dollars)
Guarantees
	Debt-related		737	93	830
	Other		808	4,580	5,388
		Total	1,545	4,673	6,218

(1)	ExxonMobil share

		Cumulative	Post-
		Foreign	retirement
		Exchange	Benefits
ExxonMobil Share of Accumulated Other		Translation	Reserves
Comprehensive Income		Adjustment	Adjustment	Total
		(millions of dollars)

Balance as of December 31, 2017		(9,482)	(6,780)	(16,262)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income	(2,551)	(406)	(2,957)
Amounts reclassified from accumulated other
	comprehensive income	186	663	849
Total change in accumulated other comprehensive income		(2,365)	257	(2,108)
Balance as of September 30, 2018		(11,847)	(6,523)	(18,370)

Balance as of December 31, 2018		(13,881)	(5,683)	(19,564)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income	(252)	48	(204)
Amounts reclassified from accumulated other
	comprehensive income	-	491	491
Total change in accumulated other comprehensive income		(252)	539	287
Balance as of September 30, 2019		(14,133)	(5,144)	(19,277)

			Three Months Ended		Nine Months Ended
Income Tax (Expense)/Credit For			September 30,		September 30,
Components of Other Comprehensive Income			2019	2018	2019	2018
		(millions of dollars)

Foreign exchange translation adjustment			1	8	1	13
Postretirement benefits reserves adjustment
	(excluding amortization)		(56)	-	(36)	66
Amortization and settlement of postretirement benefits reserves
	adjustment included in net periodic benefit costs		(50)	(64)	(152)	(208)
Total			(105)	(56)	(187)	(129)


ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Post-retirement Benefits Reserves Adjustment	Total
	(millions of dollars)

Balance as of December 31, 2018	(13,881)	(5,683)	(19,564)
Current period change excluding amounts reclassified from accumulated other comprehensive income	(252)	48	(204)
Amounts reclassified from accumulated other comprehensive income	0	491	491
Total change in accumulated other comprehensive income	(252)	539	287
Balance as of September 30, 2019	(14,133)	(5,144)	(19,277)

Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	(1,125)	(172)	(1,297)
Amounts reclassified from accumulated other comprehensive income	14	587	601
Total change in accumulated other comprehensive income	(1,111)	415	(696)
Balance as of September 30, 2020	(13,557)	(6,632)	(20,189)

			At September 30, 2019
			(millions of dollars)

			Fair Value
									Difference
						Total Gross	Effect of	Effect of	in Carrying	Net
						Assets	Counterparty	Collateral	Value and	Carrying
			Level 1	Level 2	Level 3	& Liabilities	Netting	Netting	Fair Value	Value
Assets
	Derivative assets (1)		483	80	-	563	(392)	(91)	-	80
	Advances to/receivables
		from equity companies (2)(7)	-	1,934	6,948	8,882	-	-	(149)	8,733
	Other long-term
		financial assets (3)	1,078	-	761	1,839	-	-	78	1,917

Liabilities
	Derivative liabilities (4)		414	58	-	472	(392)	(22)	-	58
	Long-term debt (5)		25,709	131	4	25,844	-	-	(1,175)	24,669
	Long-term obligations
		to equity companies (7)	-	-	4,466	4,466	-	-	(234)	4,232
	Other long-term
		financial liabilities (6)	-	-	1,054	1,054	-	-	(9)	1,045

			At December 31, 2018
			(millions of dollars)

			Fair Value
									Difference
						Total Gross	Effect of	Effect of	in Carrying	Net
						Assets	Counterparty	Collateral	Value and	Carrying
			Level 1	Level 2	Level 3	& Liabilities	Netting	Netting	Fair Value	Value
Assets
	Derivative assets (1)		297	-	-	297	(151)	(146)	-	-
	Advances to/receivables
		from equity companies (2)(7)	-	2,100	6,293	8,393	-	-	215	8,608
	Other long-term
		financial assets (3)	848	-	974	1,822	-	-	112	1,934

Liabilities
	Derivative liabilities (4)		151	-	-	151	(151)	-	-	-
	Long-term debt (5)		19,029	117	4	19,150	-	-	85	19,235
	Long-term obligations
		to equity companies (7)	-	-	4,330	4,330	-	-	52	4,382
	Other long-term
		financial liabilities (6)	-	-	1,046	1,046	-	-	(3)	1,043

(1)	Included in the Balance Sheet lines: Notes and accounts receivable, less estimated doubtful amounts and Other assets, including intangibles, net
(2)	Included in the Balance Sheet line: Investments, advances and long-term receivables
(3)	Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles, net
(4)	Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations
(5)	Excluding finance lease obligations
(6)	Included in the Balance Sheet line: Other long-term obligations
(7)	Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.

		Operating Leases
			Drilling Rigs
			and Related			Finance
			Equipment	Other	Total	Leases
			(millions of dollars)

Lease Cost			Three Months Ended September 30, 2019
Operating lease cost			65	310	375
Short-term and other (net of sublease rental income)			259	216	475

Amortization of right of use assets						29
Interest on lease liabilities						35
	Total		324	526	850	64


Maturity Analysis of Lease Liabilities		September 30, 2019
2019 remaining months		58	299	357	173
2020		234	1,026	1,260	205
2021		138	795	933	182
2022		79	557	636	174
2023		44	451	495	173
2024		29	406	435	172
2025 and beyond		71	2,390	2,461	2,427
	Total lease payments	653	5,924	6,577	3,506
Discount to present value		(40)	(958)	(998)	(1,894)
	Total lease liability	613	4,966	5,579	1,612

Weighted average remaining lease term - years		4	10	10	25
Weighted average discount rate - percent		3.0%	3.2%	3.2%	9.8%

	Lease Payments
	Under Minimum Commitments
	As of December 31, 2018
		Drilling Rigs
		and Related
		Equipment	Other	Total
		(millions of dollars)

2019		222	934	1,156
2020		166	819	985
2021		107	658	765
2022		43	506	549
2023		32	422	454
2024 and beyond		53	2,150	2,203
Total		623	5,489	6,112

			For full year
			2018	2017	2016
			(millions of dollars)

Rental cost
	Drilling rigs and related equipment		723	792	1,274
	Other (net of sublease rental income)		1,992	1,826	1,817
		Total	2,715	2,618	3,091