EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET

(millions of dollars)

June 30,

Dec. 31,

2020

2019

Assets

Current assets

Cash and cash equivalents

12,576

3,089

Notes and accounts receivable – net

19,036

26,966

Inventories

Crude oil, products and merchandise

15,028

14,010

Materials and supplies

4,629

4,518

Other current assets

1,747

1,469

Total current assets

53,016

50,052

Investments, advances and long-term receivables

43,192

43,164

Property, plant and equipment – net

250,524

253,018

Other assets, including intangibles – net

14,763

16,363

Total assets

361,495

362,597

Liabilities

Current liabilities

Notes and loans payable

22,952

20,578

Accounts payable and accrued liabilities

33,216

41,831

Income taxes payable

1,102

1,580

Total current liabilities

57,270

63,989

Long-term debt

46,563

26,342

Postretirement benefits reserves

22,341

22,304

Deferred income tax liabilities

24,725

25,620

Long-term obligations to equity companies

3,831

3,988

Other long-term obligations

19,612

21,416

Total liabilities

174,342

163,659

Commitments and contingencies (Note 3)

-

-

Equity

Common stock without par value

(9,000 million shares authorized, 8,019 million shares issued)

15,812

15,637

Earnings reinvested

412,124

421,341

Accumulated other comprehensive income

(21,617)

(19,493)

Common stock held in treasury

(3,791 million shares at June 30, 2020 and

3,785 million shares at December 31, 2019)

(226,136)

(225,835)

ExxonMobil share of equity

180,183

191,650

Noncontrolling interests

6,970

7,288

Total equity

187,153

198,938

Total liabilities and equity

361,495

362,597

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

EXXON MOBIL CORPORATION

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS

(millions of dollars)

Six Months Ended

June 30,

2020

2019

Cash flows from operating activities

Net income (loss) including noncontrolling interests

(1,939)

5,797

Depreciation and depletion

10,735

9,202

Noncash inventory adjustment - lower of cost or market

176

-

Changes in operational working capital, excluding cash and debt

(2,402)

1,014

All other items – net

(296)

(1,728)

Net cash provided by operating activities

6,274

14,285

Cash flows from investing activities

Additions to property, plant and equipment

(10,362)

(11,372)

Proceeds associated with sales of subsidiaries, property, plant and

equipment, and sales and returns of investments

129

140

Additional investments and advances

(1,524)

(1,730)

Other investing activities including collection of advances

309

292

Net cash used in investing activities

(11,448)

(12,670)

Cash flows from financing activities

Additions to long-term debt

23,186

43

Reductions in long-term debt

(3)

-

Reductions in short-term debt

(1,618)

(3,805)

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

months or less maturity (1)

1,033

11,126

Contingent consideration payments

(21)

-

Cash dividends to ExxonMobil shareholders

(7,434)

(7,220)

Cash dividends to noncontrolling interests

(93)

(100)

Changes in noncontrolling interests

317

(119)

Common stock acquired

(305)

(421)

Net cash used in financing activities

15,062

(496)

Effects of exchange rate changes on cash

(401)

52

Increase/(decrease) in cash and cash equivalents

9,487

1,171

Cash and cash equivalents at beginning of period

3,089

3,042

Cash and cash equivalents at end of period

12,576

4,213

Supplemental Disclosures

Income taxes paid

1,768

3,884

Cash interest paid

Included in cash flows from operating activities

290

277

Capitalized, included in cash flows from investing activities

335

355

Total cash interest paid

625

632

(1) Includes a net addition of commercial paper with a maturity of over three months of $7.0 billion in 2020 and $6.5 billion in 2019. The gross amount of commercial paper with a maturity of over three months issued was $20.5 billion in 2020 and $12.3 billion in 2019, while the gross amount repaid was $13.5 billion in 2020 and $5.8 billion in 2019.

~~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 March 31, 2019

15,476

420,498

(18,782)

(225,970)

191,222

6,799

198,021

Amortization of stock-based awards

166

-

-

-

166

-

166

Other

(3)

-

-

-

(3)

38

35

Net income (loss) for the period

-

3,130

-

-

3,130

261

3,391

Dividends - common shares

-

(3,715)

-

-

(3,715)

(57)

(3,772)

Other comprehensive income (loss)

-

-

577

-

577

130

707

Acquisitions, at cost

-

-

-

-

-

(83)

(83)
Balance as of June 30, 2019

15,639

419,913

(18,205)

(225,970)

191,377

7,088

198,465

Balance as of March 31, 2020

15,636

416,919

(24,339)

(226,137)

182,079

6,664

188,743

Amortization of stock-based awards

177

-

-

-

177

-

177

Other

(1)

-

-

-

(1)

223

222

Net income (loss) for the period

-

(1,080)

-

-

(1,080)

(89)

(1,169)

Dividends - common shares

-

(3,715)

-

-

(3,715)

(48)

(3,763)

Other comprehensive income (loss)

-

-

2,722

-

2,722

220

2,942

Dispositions

-

-

-

1

1

-

1
Balance as of June 30, 2020

15,812

412,124

(21,617)

(226,136)

180,183

6,970

187,153

Three Months Ended June 30, 2020

Three Months Ended June 30, 2019

Held in

Held in

Common Stock Share Activity

Issued

Treasury

Outstanding

Issued

Treasury

Outstanding

(millions of shares)

(millions of shares)

Balance as of March 31

8,019

(3,791)

4,228

8,019

(3,788)

4,231

Acquisitions

-

-

-

-

-

-

Dispositions

-

-

-

-

-

-

Balance as of June 30

8,019

(3,791)

4,228

8,019

(3,788)

4,231

~~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, 2018

15,258

421,653

(19,564)

(225,553)

191,794

6,734

198,528

Amortization of stock-based awards

389

-

-

-

389

-

389

Other

(8)

-

-

-

(8)

47

39

Net income (loss) for the period

-

5,480

-

-

5,480

317

5,797

Dividends - common shares

-

(7,220)

-

-

(7,220)

(100)

(7,320)

Other comprehensive income (loss)

-

-

1,359

-

1,359

256

1,615

Acquisitions, at cost

-

-

-

(421)

(421)

(166)

(587)

Dispositions

-

-

-

4

4

-

4
Balance as of June 30, 2019

15,639

419,913

(18,205)

(225,970)

191,377

7,088

198,465

Balance as of December 31, 2019

15,637

421,341

(19,493)

(225,835)

191,650

7,288

198,938

Amortization of stock-based awards

358

-

-

-

358

-

358

Other

(183)

-

-

-

(183)

380

197

Net income (loss) for the period

-

(1,690)

-

-

(1,690)

(249)

(1,939)

Dividends - common shares

-

(7,434)

-

-

(7,434)

(93)

(7,527)

Cumulative effect of accounting

change

-

(93)

-

-

(93)

(1)

(94)

Other comprehensive income (loss)

-

-

(2,124)

-

(2,124)

(292)

(2,416)

Acquisitions, at cost

-

-

-

(305)

(305)

(63)

(368)

Dispositions

-

-

-

4

4

-

4
Balance as of June 30, 2020

15,812

412,124

(21,617)

(226,136)

180,183

6,970

187,153

Six Months Ended June 30, 2020

Six Months Ended June 30, 2019

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

(3,785)

4,234

8,019

(3,782)

4,237

Acquisitions

-

(6)

(6)

-

(6)

(6)

Dispositions

-

-

-

-

-

-

Balance as of June 30

8,019

(3,791)

4,228

8,019

(3,788)

4,231

~~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 ~~2019~~2020 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.Miscellaneous Financial Information

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 sharp declines in prices for crude oil and other petrochemical products, and considerable volatility in financial markets during the first half of 2020.

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~~Corporation's results for the ~~second~~first quarter of 2020 included a before-tax ~~credit~~charge of ~~$2,624~~$2,777 million, included in ~~“Crude~~"Crude oil and product ~~purchases”~~purchases" on the Statement of Income, ~~as rising commodity prices reduced the charge against~~from writing down the book value of inventories ~~from $2,777 million in~~to their market value at the ~~first quarter to $153 million in~~end of the ~~second quarter.~~period. This adjustment, together with a ~~similar~~market adjustment to inventory for equity companies included in ~~“Income~~"Income from equity affiliates,”" resulted in a ~~$1,922~~$2,096 million after-tax ~~credit~~charge to earnings (excluding noncontrolling interests) in the ~~second~~first quarter ~~and will be re-evaluated~~of 2020. These charges were adjusted throughout 2020 to reflect the current market price of the inventory at the end of each reporting period.

In the first quarter ~~in 2020. The earnings impact may be adjusted upward or downward this year based on prevailing market prices at the time~~ of ~~future evaluations. At year-end, any required adjustment is considered permanent and is incorporated into the LIFO carrying value of the inventory.~~

As2020, mainly as a result of ~~sharp~~ declines in prices for crude oil, natural gas and ~~other petrochemical~~petroleum products ~~in the first half of 2020~~ and a significant decline in ~~its~~the Corporation's market capitalization at the end of the first quarter, ~~the Corporation recognized after-tax~~before-tax goodwill impairment charges of ~~$836~~$611 million ~~in the first half of 2020. These charges included goodwill impairments of $562 million in Upstream, Downstream, and Chemical reporting units~~ and other impairment charges of ~~$274~~$299 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 the Corporation’s investment in an Upstream equity company, were ~~written down to estimated fair value based on recent third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties.~~recognized. The charges related to goodwill impairment ~~are~~were included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments ~~are~~were largely included in “Income from 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 ~~June 30, 2020,~~March 31, 2021, 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 June 30, 2020

Equity

Other

Company

Third Party

Obligations (1)

Obligations

Total

(millions of dollars)

Guarantees

Debt-related

904

113

1,017

Other

692

4,663

5,355

Total

1,596

4,776

6,372

(1)
ExxonMobil share


		As of March 31, 2021
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	1,014	126	1,140
	Other	837	4,912	5,749
	Total	1,851	5,038	6,889

(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, 2018

(13,881)

(5,683)

(19,564)

Current period change excluding amounts reclassified

from accumulated other comprehensive income

1,096

(49)

1,047

Amounts reclassified from accumulated other

comprehensive income

-

312

312

Total change in accumulated other comprehensive income

1,096

263

1,359

Balance as of June 30, 2019

(12,785)

(5,420)

(18,205)

Balance as of December 31, 2019

(12,446)

(7,047)

(19,493)

Current period change excluding amounts reclassified

from accumulated other comprehensive income (1)

(2,469)

(45)

(2,514)

Amounts reclassified from accumulated other

comprehensive income

-

390

390

Total change in accumulated other comprehensive income

(2,469)

345

(2,124)

Balance as of June 30, 2020

(14,915)

(6,702)

(21,617)


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

Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income	(5,113)	72	(5,041)
Amounts reclassified from accumulated other comprehensive income	0	195	195
Total change in accumulated other comprehensive income	(5,113)	267	(4,846)
Balance as of March 31, 2020	(17,559)	(6,780)	(24,339)

Balance as of December 31, 2020	(10,614)	(6,091)	(16,705)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	88	158	246
Amounts reclassified from accumulated other comprehensive income	0	369	369
Total change in accumulated other comprehensive income	88	527	615
Balance as of March 31, 2021	(10,526)	(5,564)	(16,090)

(1)Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) of $5$191 million, net of taxes.

Three Months Ended

Six Months Ended

Amounts Reclassified Out of Accumulated Other

June 30,

June 30,

Comprehensive Income - Before-tax Income/(Expense)

2020

2019

2020

2019

(millions of dollars)

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)
(260)

(191)

(522)

(428)

Three Months Ended

Six Months Ended

Income Tax (Expense)/Credit For

June 30,

June 30,

Components of Other Comprehensive Income

2020

2019

2020

2019

(millions of dollars)

Foreign exchange translation adjustment

8

-

15

-

Postretirement benefits reserves adjustment

(excluding amortization)

52

10

(10)

20

Amortization and settlement of postretirement benefits reserves

adjustment included in net periodic benefit costs

(57)

(50)

(115)

(102)

Total

3

(40)

(110)

(82)


	Three Months Ended March 31,
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense)	2021	2020
	(millions of dollars)

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)	(484)	(262)


	Three Months Ended March 31,
Income Tax (Expense)/Credit For Components of Other Comprehensive Income	2021	2020
	(millions of dollars)
Foreign exchange translation adjustment	(53)	7
Postretirement benefits reserves adjustment (excluding amortization)	(58)	(62)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(106)	(58)
Total	(217)	(113)

5.Earnings Per Share

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Earnings per common share

Net income (loss) attributable to ExxonMobil (millions of dollars)

(1,080)

3,130

(1,690)

5,480

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)

(0.26)

0.73

(0.40)

1.28

Dividends paid per common share (dollars)

0.87

0.87

1.74

1.69


	Three Months Ended March 31,
	2021	2020
Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	2,730	(610)
Weighted average number of common shares outstanding (millions of shares)	4,272	4,270
Earnings (Loss) per common share (dollars) (1)	0.64	(0.14)
Dividends paid per common share (dollars)	0.87	0.87

(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

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

(millions of dollars)

Components of net benefit cost

Pension Benefits - U.S.

Service cost

232

180

467

355

Interest cost

177

189

354

382

Expected return on plan assets

(175)

(142)

(350)

(284)

Amortization of actuarial loss/(gain) and prior

service cost

79

79

158

156

Net pension enhancement and

curtailment/settlement cost

52

53

104

107

Net benefit cost

365

359

733

716

Pension Benefits - Non-U.S.

Service cost

171

138

346

277

Interest cost

162

192

323

384

Expected return on plan assets

(216)

(192)

(438)

(389)

Amortization of actuarial loss/(gain) and prior

service cost

115

55

234

158

Net benefit cost

232

193

465

430

Other Postretirement Benefits

Service cost

44

33

89

66

Interest cost

68

79

138

158

Expected return on plan assets

(5)

(4)

(9)

(8)

Amortization of actuarial loss/(gain) and prior

service cost

14

4

26

7

Net benefit cost

121

112

244

223

Three Months Ended
March 31,
2021 2020
(millions of dollars)
Components of net benefit cost
Pension Benefits - U.S.
Service cost 225 235
Interest cost 139 177
Expected return on plan assets (180) (175)
Amortization of actuarial loss/(gain) and prior service cost 55 79
Net pension enhancement and curtailment/settlement cost 298 52
Net benefit cost 537 368
Pension Benefits - Non-U.S.
Service cost 195 175
Interest cost 130 161
Expected return on plan assets (258) (222)
Amortization of actuarial loss/(gain) and prior service cost 123 119
Net pension enhancement and curtailment/settlement cost 12 0
Net benefit cost 202 233
Other Postretirement Benefits
Service cost 49 45
Interest cost 56 70
Expected return on plan assets (5) (4)
Amortization of actuarial loss/(gain) and prior service cost 8 12
Net benefit cost 108 123

7.Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, and the related hierarchy level for the fair value measurement is as follows:


		At March 31, 2021
		(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)	1,338	264	—	1,602	(1,332)	(62)	—	208
	Advances to/receivables
	from equity companies (2)(6)	—	3,115	6,083	9,198	—	—	(233)	8,965
	Other long-term
	financial assets (3)	1,157	—	1,046	2,203	—	—	120	2,323
Liabilities
	Derivative liabilities (4)	1,389	329	—	1,718	(1,332)	(113)	—	273
	Long-term debt (5)	45,594	111	4	45,709	—	—	(2,236)	43,473
	Long-term obligations
	to equity companies (6)	—	—	3,567	3,567	—	—	(288)	3,279
	Other long-term
	financial liabilities (7)	—	—	979	979	—	—	55	1,034


		At December 31, 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)	1,247	194	—	1,441	(1,282)	(6)	—	153
	Advances to/receivables
	from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812
	Other long-term
	financial assets (3)	1,235	—	944	2,179	—	—	125	2,304
Liabilities
	Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213
	Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502
	Long-term obligations
	to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253
	Other long-term
	financial liabilities (7)	—	—	964	964	—	—	44	1,008

(1)

At June 30, 2020

(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)

1,488

165

-

1,653

(1,423)

(65)

-

165

Advances to/receivables

from equity companies (2)(7)

-

1,916

6,795

8,711

-

-

48

8,759

Other long-term

financial assets (3)

1,157

-

889

2,046

-

-

137

2,183

Liabilities

Derivative liabilities (4)

1,748

88

-

1,836

(1,423)

(325)

-

88

Long-term debt (5)

49,106

166

4

49,276

-

-

(3,962)

45,314

Long-term obligations

to equity companies (7)

-

-

3,766

3,766

-

-

65

3,831

Other long-term

financial liabilities (6)

-

-

1,066

1,066

-

-

6

1,072

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

At December 31, 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)

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.

(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)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.

(7)Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At ~~June 30,~~March 31, 2021, and December 31, 2020, respectively, the Corporation had ~~$496~~$447 million and $504 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 issuance of new debt securities during 2020. The carrying value of these debt securities as of June 30, 2020, is below:

		~~Carrying~~
~~Issuance Date~~	~~Description of Notes~~	~~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)~~	~~1,314~~
	~~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~~	~~1,680~~
	~~0.524% notes due 2028~~	~~1,120~~
	~~0.835% notes due 2032~~	~~1,120~~
	~~1.408% notes due 2039~~	~~1,120~~

	~~Total~~	~~23,196~~

~~(1) Includes premiums of $156 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 ~~June 30, 2020,~~March 31, 2021, the Corporation has designated ~~$1.9~~$5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.

~~The Corporation had undrawn short-term committed lines of credit of $15.4 billion and an undrawn long-term committed line of credit of $0.2 billion as of second quarter 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 ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, or results of operations for the periods ended ~~June 30, 2020,~~March 31, 2021, and ~~2019.~~2020.

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

The net notional long/(short) position of derivative instruments at ~~June 30, 2020,~~March 31, 2021, and December 31, ~~2019,~~2020, was as follows:

June 30,

Dec. 31,

2020

2019

Crude oil (millions of barrels)

(32)

57

Petroleum products (millions of barrels)

(53)

(38)

Natural Gas (MMBTUs)

(351)

(165)


	March 31,	December 31,
	2021	2020
	(millions)
Crude oil (barrels)	71	40
Petroleum products (barrels)	(53)	(46)
Natural Gas (MMBTUs)	(532)	(500)

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

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

(millions of dollars)

Sales and other operating revenue

(251)

33

985

(242)
Crude oil and product purchases

(178)

33

(530)

15

Total

(429)

66

455

(227)



	Three Months Ended March 31,
	2021	2020
	(millions of dollars)
Sales and other operating revenue	(512)	1,236
Crude oil and product purchases	1	(352)
Total	(511)	884

8.Disclosures about Segments and Related Information

Three Months Ended

Six Months Ended

June 30,

June 30,

2020

2019

2020

2019

Earnings (Loss) After Income Tax

(millions of dollars)

Upstream

United States

(1,197)

335

(1,901)

431

Non-U.S.

(454)

2,926

786

5,706

Downstream

United States

(101)

310

(202)

149

Non-U.S.

1,077

141

567

46

Chemical

United States

171

(6)

459

155

Non-U.S.

296

194

152

551

Corporate and financing

(872)

(770)

(1,551)

(1,558)

Corporate total

(1,080)

3,130

(1,690)

5,480

Sales and Other Operating Revenue

Upstream

United States

1,081

2,594

2,858

5,287

Non-U.S.

2,022

3,709

4,589

7,513

Downstream

United States

8,203

18,721

23,587

34,363

Non-U.S.

16,302

35,306

45,606

67,603

Chemical

United States

1,570

2,504

3,866

5,009

Non-U.S.

3,090

4,647

6,890

9,342

Corporate and financing

9

10

15

20

Corporate total

32,277

67,491

87,411

129,137

Intersegment Revenue

Upstream

United States

1,378

2,641

3,651

4,952

Non-U.S.

2,852

8,376

9,239

15,505

Downstream

United States

2,056

6,742

6,008

11,503

Non-U.S.

2,752

6,568

7,876

12,737

Chemical

United States

1,220

2,569

2,986

4,458

Non-U.S.

708

1,583

1,971

3,130

Corporate and financing

56

55

111

108

Three Months Ended
March 31,
2021 2020
Earnings (Loss) After Income Tax (millions of dollars)
Upstream
United States 363 (704)
Non-U.S. 2,191 1,240
Downstream
United States (113) (101)
Non-U.S. (277) (510)
Chemical
United States 715 288
Non-U.S. 700 (144)
Corporate and financing (849) (679)
Corporate total 2,730 (610)
Sales and Other Operating Revenue
Upstream
United States 1,885 1,777
Non-U.S. 3,094 2,567
Downstream
United States 16,078 15,384
Non-U.S. 28,613 29,304
Chemical
United States 3,091 2,296
Non-U.S. 4,887 3,800
Corporate and financing (96) 6
Corporate total 57,552 55,134
Intersegment Revenue
Upstream
United States 3,323 2,273
Non-U.S. 6,817 6,387
Downstream
United States 3,953 3,952
Non-U.S. 5,381 5,124
Chemical
United States 1,950 1,766
Non-U.S. 1,231 1,263
Corporate and financing 57 55

Geographic

Three Months Ended

Six Months Ended

June 30,

June 30,

Sales and Other Operating Revenue

2020

2019

2020

2019

(millions of dollars)

United States

10,854

23,819

30,311

44,659

Non-U.S.

21,423

43,672

57,100

84,478

Total

32,277

67,491

87,411

129,137

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

Canada

2,148

5,346

5,971

10,196

United Kingdom

1,906

4,781

5,597

9,202

Singapore

1,867

3,135

4,483

6,255

France

1,583

3,258

4,172

6,332

Italy

1,228

2,494

3,186

5,139

Belgium

1,247

3,245

3,136

6,773

Geographic
Three Months Ended
March 31,
Sales and Other Operating Revenue 2021 2020
(millions of dollars)
United States 21,054 19,457
Non-U.S. 36,498 35,677
Total 57,552 55,134
Significant Non-U.S. revenue sources include: (1)
Canada 4,258 3,823
Singapore 3,435 2,616
United Kingdom 2,943 3,691
France 2,782 2,589
Belgium 1,989 1,889
Italy 1,865 1,958
Australia 1,729 1,654

(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. Sale of United Kingdom Assets

ExxonMobil signed an agreement with HitecVision, through its wholly-owned portfolio company NEO Energy, for the sale of most of its non-operated upstream assets in the United Kingdom central and northern North Sea for more than $1 billion. The transaction is expected to close near mid-year 2021, subject to standard conditions precedent, including regulatory and third-party approvals. The agreed sales price is subject to interim period adjustments from the effective date of January 1, 2021, to the closing date, and has an additional upside potential of approximately $0.3 billion in contingent payments, based on production level and commodity prices. Estimated total cash flow from the divestment will range from $0.7 billion to $1.2 billion, of which $0.7 billion to $0.8 billion is expected in 2021 and the remainder in future years. The Corporation expects to recognize a gain at closing. Estimated gain and net cash flow could change due to market factors and timing of close.

10.

9.Restructuring Activities~~Leases~~

~~A previously recorded operating lease was renegotiated~~

During 2020, ExxonMobil conducted an extensive global review of staffing levels and subsequently commenced targeted workforce reductions within a number of countries to improve efficiency and reduce costs. The programs, which are expected to be substantially completed by the end of 2021, include both voluntary and involuntary employee separations and reductions in contractors.

During 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)~~

~~Effective January 1, 2020,~~2021, the Corporation ~~adopted~~recorded before-tax charges of $39 million, consisting primarily of employee separation costs, from workforce reductions in Singapore and Europe associated with the ~~Financial Accounting Standards Board’s update,~~ ~~Financial Instruments – Credit Losses (Topic 326), as amended.~~ global review of staffing levels. These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.

For the full year, the Corporation estimates charges of up to $200 million related to planned workforce reduction programs associated with the global review of staffing levels. This does not include charges related to employee reductions associated with any portfolio changes or other projects.

The ~~standard requires a valuation allowance for credit losses be recognized for certain financial assets that reflects~~following table summarizes the ~~current expected credit loss over the asset’s contractual life. The valuation allowance considers the risk of loss, even if remote,~~reserves 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 adjustmentcharges 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 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 counterparty’s established credit rating or the Corporation’s assessment of the counterparty’s credit worthiness, contract terms, country of operation, and 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 the risk of credit loss has occurred. Among the quantitative and qualitative factors considered are 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 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 off-balance sheet credit exposures as a liability on the balance sheet, separate from the allowance for credit losses related to recognized financial assets. Among these exposures are unfunded loans to equity companies and financial guarantees that cannot be cancelled unilaterally by the Corporation.

In the first half of 2020, the COVID-19 pandemic spread through most areas of the world resulting in economic uncertainty, global financial market volatility, and negative effects in the credit markets. The Corporation has considered these effects, alongworkforce reduction programs associated with the ~~significantly lower balances~~global review of ~~trade receivables at the end of the quarter,~~staffing levels, which are recorded in ~~its estimate of credit losses~~“Accounts payable and ~~concluded no material adjustment to credit allowances in the quarter was required. At June 30, 2020, the Corporation’s evaluation of financial assets under~~ ~~Financial Instruments – Credit Losses (Topic 326)~~, as amended, included $15,519 million of notes and accounts receivable, net of allowances of $153 million, and $9,434 million of loans and long-term receivables, net of allowances of $443 million, and certain other financial assets where there is immaterial risk of loss.

Reserve for
Liabilities for

Notes and Other
Off-Balance

Receivables and Loans
Sheet Assets

Trade
Other

Total

(millions of dollars)

Balance at December 31, 2019
34
469

-

503
Cumulative effect of accounting change
52
45

12

109
Current period provision
8
2

-

10
Write-offs charged against the allowance
(1)
(1)

-

(2)
Other
-
(12)

-

(12)
Balance at June 30, 2020
93
503

12

608

accrued liabilities.”

2021
(millions of dollars)
Balance at January 1 403
Additions/adjustments 39
Payments made (130)
Balance at March 31 312

EXXON MOBIL CORPORATION

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

FUNCTIONAL EARNINGS SUMMARY

Second Quarter

First Six Months
Earnings (Loss) (U.S. GAAP)

2020

2019

2020

2019

(millions of dollars)
Upstream

United States

(1,197)

335

(1,901)

431

Non-U.S.

(454)

2,926

786

5,706
Downstream

United States

(101)

310

(202)

149

Non-U.S.

1,077

141

567

46
Chemical

United States

171

(6)

459

155

Non-U.S.

296

194

152

551
Corporate and financing

(872)

(770)

(1,551)

(1,558)

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

(1,080)

3,130

(1,690)

5,480

Earnings (Loss) per common share (dollars)

(0.26)

0.73

(0.40)

1.28

Earnings (Loss) per common share - assuming dilution (dollars)

(0.26)

0.73

(0.40)

1.28

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~~

~~During the first quarter of~~

In early 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~~oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and ~~other~~petroleum products.

While demand for petroleum and petrochemical ~~products.During~~products has rebounded, the ~~second quarter, the~~lingering effects of ~~COVID-19~~the weak 2020 business environment continued to ~~affect the world’s major economies, and market conditions reflected considerable uncertainty. Consumer and business activity exhibited some early signs of recovery, but relative~~have a negative impact on financial results in 2021 when compared to periods prior ~~periods continues~~ to ~~be negatively affected by~~ the pandemic. ~~Key oil-producing countries have taken steps~~Signs of improvement are emerging with stronger prices and margins across all businesses when compared to ~~reduce oversupply, and credit markets appear~~the fourth quarter 2020. However, Downstream margins remain lower when compared to ~~have stabilized, providing sufficient liquidity~~historical levels over the last decade.

FUNCTIONAL EARNINGS SUMMARY


	First Three Months
Earnings (Loss) (U.S. GAAP)	2021	2020
	(millions of dollars)
Upstream
United States	363	(704)
Non-U.S.	2,191	1,240
Downstream
United States	(113)	(101)
Non-U.S.	(277)	(510)
Chemical
United States	715	288
Non-U.S.	700	(144)
Corporate and financing	(849)	(679)
Net income (loss) attributable to ExxonMobil (U.S. GAAP)	2,730	(610)

Earnings (Loss) per common share (dollars)	0.64	(0.14)

Earnings (Loss) per common share - assuming dilution (dollars)	0.64	(0.14)

References in this discussion to ~~credit-worthy companies.~~

~~In response~~Corporate earnings (loss) mean net income (loss) attributable to these conditions, the Corporation announced significant reductions in 2020 capital spending and operating expenses. Capital and exploration expenditures for 2020 are now expected to be $23 billion, downExxonMobil (U.S. GAAP) from the ~~previously announced $33 billion. The Corporation’s near-term reduction in capital expenditures resulted in a downward revision~~consolidated income statement. Unless otherwise indicated, references to ~~estimates of proved reserves reported in the 2019 Form 10-K of approximately 1 billion oil-equivalent barrels, mainly related~~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 ~~unconventional drilling in the United States. Consequently, unit-of-production depreciation and depletion rates for Upstream assets increased beginning in the first quarter.~~noncontrolling interests.

~~The Corporation also took actions to strengthen its liquidity including issuing $8.5 billion of long-term U.S. debt securities in the~~

REVIEW OF FIRST QUARTER 2021 RESULTS

ExxonMobil’s 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 had undrawn short-term committed lines of credit of $15.4 billion and an undrawn long-term committed line of credit of $0.2 billion as of second quarter 2020. The Corporation plans to increase its 364-day facility from $7.5 billion to $10 billion in the third quarter and terminate the supplemental $7.0 billion facility that was established in the first quarter of 2020.

~~Unless industry conditions seen thus far in 2020 improve significantly in the latter half of the year, the Corporation expects lower realized prices for its products to result in substantially lower~~2021 earnings and operating cash flow than in 2019. Amid such conditions, project deferrals and idling of capacity may increase, and project cancellations could occur, resulting in lower volumes across one or more business segments. The capital spending reductions will result in lower near-term production volumes in the Upstream and delays in previously anticipated volume increases in future years.

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. During the first half of 2020, and in large part due to expectations for lower prices in the near term, the Corporation recorded impairments for certain assets that were in aggregate, insignificant. Despite the challenging 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, as part of its annual planning process. Depending on the outcome of that process, including in particular any significant future changes in the Corporation’s strategic plans or longer-term price views, a significant portion of the Corporation’s long-lived assets could be at risk for impairment. Due to interdependencies among the many elements critical to that planning process that are still unresolved or uncertain, it is not practicable to reasonably estimate the existence or range of any potential future impairment charges. 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.

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. 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. If average prices seen thus far in 2020 persist 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. Proved reserves estimates are affected by a number of factors including the level of capital spending, timing and completion of development projects, reservoir performance, market prices and differentials, costs, fiscal and commercial terms, government policies, regulatory approvals and partner considerations. 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 20 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 SECOND QUARTER 2020 RESULTS~~

~~ExxonMobil’s second quarter 2020 results were a loss of $1.1~~$2.7 billion, or ~~$0.26~~$0.64 per diluted share, compared with ~~earnings~~a loss of ~~$3.1~~$0.6 billion a year earlier. The ~~decrease~~increase in earnings was primarily the result of ~~lower~~the absence of prior year unfavorable non-operational impacts, including an inventory write-down and impairments; higher Upstream realizations ~~reduced Downstream margins,~~ and ~~decreased volumes across all business segments.~~Chemical margins; and lower expenses. These impacts were partly offset by ~~favorable non-operational~~lower Downstream margins, winter storm impacts, ~~reduced maintenance activity mainly in the Downstream and Chemical,~~unfavorable foreign exchange impacts, and lower expenses across all business segments. Non-operational impacts were mainly driven by an inventory adjustment, with further information provided in Note 2 to the unaudited condensed consolidated financial statements.Upstream volumes.

~~Results for the first six months of 2020 were a loss of $1.7 billion, or $0.40 per diluted share, compared with earnings of $5.5 billion a year earlier.~~

~~Capital and exploration expenditures were $12.5 billion, down $2.5 billion from 2019.~~

Oil-equivalent production was 3.8 million barrels per day, down 36 percent from the prior year. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production was ~~up 1 percent.~~down 2 percent from the prior year.

The Corporation distributed ~~$7.4~~$3.7 billion in dividends to shareholders.


	First Three Months
	2021	2020
	(millions of dollars)
Upstream results
United States	363	(704)
Non-U.S.	2,191	1,240
Total	2,554	536

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)
Upstream results

United States

(1,197)

335

(1,901)

431

Non-U.S.

(454)

2,926

786

5,706

Total

(1,651)

3,261

(1,115)

6,137

Upstream ~~results~~earnings were ~~a loss of $1,651~~$2,554 million in the ~~second~~first quarter of ~~2020,~~2021, compared with earnings of ~~$3,261 million in the second quarter of 2019.~~

·	~~Realizations reduced earnings by $4,520 million, with lower liquids realizations of $3,910 million and lower gas realizations of $610 million.~~
·	~~Volume and mix effects reduced earnings by $370 million due to lower liquids volumes of $320 million and lower gas volumes of $50 million.~~
·	All other items decreased earnings by $20 million, including unfavorable non-operational impacts of $270 million, mainly from a prior year non-U.S. tax item, and other unfavorable earnings impacts of $120 million, partly offset by lower expenses of $370 million.
·	~~U.S. Upstream results were a loss of $1,197 million, down $1,532 million from the prior year quarter.~~
·	~~Non-U.S. Upstream results were a loss of $454 million, down $3,380 million from the prior year quarter.~~
·	~~On an oil-equivalent basis, production decreased 7 percent from the second quarter of 2019.~~
·	Liquids production totaled 2.3 million barrels per day, down 83,000 barrels per day, with higher entitlements, growth, and lower downtime more than offset by lower demand, government mandates, and divestments.
·	~~Natural gas production was 8.0 billion cubic feet per day, down 1,130 million cubic feet per day, as growth was more than offset by divestments, lower demand, and reduced entitlements.~~

~~Upstream results were a loss of $1,115~~$536 million in the first ~~six months~~quarter of ~~2020, compared~~2020.

•Realizations increased earnings by $1,310 million, driven by higher liquids realizations of $1,390 million.

•Volume and mix effects reduced earnings by $370 million due to lower liquids sales volumes of $390 million partly offset by gas volume mix and timing of $20 million.

•All other items increased earnings by $1,080 million, as the absence of prior year unfavorable non-operational impacts associated with impairments of $360 million and an inventory write down of $260 million, and lower expenses of $700 million were partly offset by unfavorable foreign exchange impacts of $220 million.

•The unfavorable impact of the winter storm on Upstream earnings, ~~of $6,137 million~~included in the factors above, was $240 million.

•U.S. Upstream earnings were $363 million, up $1,067 million from the prior year quarter.

•Non-U.S. Upstream earnings were $2,191 million, up $951 million from the prior year quarter.

•On an oil-equivalent basis, production decreased 6 percent from the first ~~six months~~quarter of ~~2019.~~2020.

·	~~Realizations reduced earnings by $6,400 million, with lower liquids realizations of $5,140 million and lower gas realizations of $1,260 million.~~
·	~~Volume and mix effects reduced earnings by $280 million, including $160 million for liquids and $120 million for gas.~~
·	All other items decreased earnings by $570 million, as unfavorable non-operational impacts of $890 million, reflecting impairments of $360 million and a prior year non-U.S. tax item of $490 million, were partly offset by lower expenses of $140 million and favorable foreign exchange effects of $210 million.
·	~~U.S. Upstream results were a loss of $1,901 million, compared with earnings of $431 million in the prior year.~~
·	~~Non-U.S. Upstream earnings were $786 million, down $4,920 million from the prior year.~~
·	~~On an oil-equivalent basis, production decreased 3 percent from the first six months of 2019.~~
·	Liquids production totaled 2.4 million barrels per day, up 35,000 barrels per day, with growth, lower downtime, and higher entitlements partly offset by lower demand, divestments, and government mandates.
·	~~Natural gas production was 8.7 billion cubic feet per day, down 827 million cubic feet per day, as growth was more than offset by divestments and lower demand.~~

•Liquids production totaled 2.3 million barrels per day, down 222,000 barrels per day, reflecting the impacts of government mandates, lower entitlements, and the winter storm.

•Natural gas production was 9.2 billion cubic feet per day, down 223 million cubic feet per day, reflecting the impacts of decline, higher downtime, the winter storm, and the Groningen production limit, partly offset by higher demand and project growth.


						First Quarter
Upstream additional information						(thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)
2020						4,046
Entitlements - Net Interest						(3)
Entitlements - Price / Spend / Other						(51)
Government Mandates						(124)
Divestments						(15)
Growth / Other						(66)
2021						3,787

Second Quarter

First Six Months
Upstream additional information

(thousands of barrels daily)

Volumes reconciliation (Oil-equivalent production)(1)

2019

3,909

3,945

Entitlements - Net Interest

(10)

(10)

Entitlements - Price / Spend / Other

122

81

Government Mandates

(121)

(57)

Divestments

(158)

(168)

Growth / Other

(104)

51

2020

3,638

3,842

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

(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.

Government Mandates are changes to ~~ExxonMobil’s~~ExxonMobil's sustainable production levels due to temporary non-operational production limits imposed by governments, generally upon a sector, type or method of 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.


	First Three Months
	2021	2020
	(millions of dollars)
Downstream results
United States	(113)	(101)
Non-U.S.	(277)	(510)
Total	(390)	(611)

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)
Downstream results

United States

(101)

310

(202)

149

Non-U.S.

1,077

141

567

46

Total

976

451

365

195

Downstream results were ~~$976 million in the second quarter~~a loss of ~~2020, up $525 million from the second quarter of 2019.~~

·	~~Margins decreased earnings by $1,680 million, mainly reflecting lower industry refining margins.~~
·	~~Volume and mix effects reduced earnings by $10 million.~~
·	~~All other items increased earnings by $2,220 million, mainly due to favorable non-operational impacts associated with an inventory adjustment of $1,590 million and lower expenses of $470 million.~~
·	~~U.S. Downstream results were a loss of $101 million, compared with earnings of $310 million in the prior year quarter.~~
·	~~Non-U.S. Downstream results were $1,077 million, up $936 million from the prior year quarter.~~
·	~~Petroleum product sales of 4.4 million barrels per day were 971,000 barrels per day lower than the prior year quarter.~~

~~Downstream results were $365~~$390 million in the first ~~six months~~quarter of ~~2020,~~2021, a $221 million improvement from the first quarter of 2020.

•Margins decreased earnings by $1,880 million, including the net unfavorable mark to market impact on unsettled derivatives and weaker industry refining conditions.

•Volume and mix effects decreased earnings by $80 million.

•All other items increased earnings by $2,180 million, as the absence of prior year unfavorable non-operational impacts associated with an inventory write-down of $1,600 million and impairments of $340 million, and lower expenses of $410 million, were partly offset by unfavorable foreign exchange impacts of $100 million and other unfavorable earnings impacts of $70 million.

•The unfavorable impact of the winter storm on Downstream earnings, included in the factors above, was $130 million.

•U.S. Downstream results were a loss of $113 million, compared with a loss of $101 million in the prior year quarter.

•Non-U.S. Downstream results were a loss of $277 million, a $233 million improvement from the prior year quarter.

•Petroleum product sales of 4.9 million barrels per day were 406,000 barrels per day lower than the prior year quarter.


	First Three Months
	2021	2020
	(millions of dollars)
Chemical results
United States	715	288
Non-U.S.	700	(144)
Total	1,415	144

Chemical earnings were $1,415 million in the first quarter of 2021, up $1,271 million from the first quarter of 2020.

•Higher margins increased earnings by $620 million.

•Volume and mix effects increased earnings by $30 million.

•All other items increased earnings by $620 million, mainly due to the absence of prior year unfavorable non-operational impacts associated with an inventory write-down of $230 million and impairments of $90 million, lower expenses of $240 million, and favorable foreign exchange impacts of $60 million.

•The unfavorable impact of the winter storm on Chemical earnings, included in the factors above, was $230 million.

•U.S. Chemical earnings were $715 million, up $427 million from the prior year quarter.

•Non-U.S. Chemical earnings were $700 million, up $844 million from the prior year quarter.

•First quarter prime product sales of 6.4 million metric tons were 209,000 metric tons higher than the prior year quarter.


	First Three Months
	2021	2020
	(millions of dollars)
Corporate and financing results	(849)	(679)

Corporate and financing expenses were $849 million for the first quarter of 2021, up $170 million from the first ~~six months of 2019.~~

·	~~Margins decreased earnings by $360 million, as weaker industry refining margins were partly offset by favorable mark-to-market derivatives.~~
·	~~Volume and mix effects increased earnings by $300 million.~~
·	~~All other items increased earnings by $230 million, as lower expenses of $490 million were partly offset by unfavorable non-operational impacts associated with impairments of $340 million.~~
·	~~U.S. Downstream results were a loss of $202 million, compared with earnings of $149 million in the prior year.~~
·	~~Non-U.S. Downstream earnings were $567 million, up $521 million from the prior year.~~
·	~~Petroleum product sales of 4.9 million barrels per day were 550,000 barrels per day lower than the prior year.~~

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)
Chemical results

United States

171

(6)

459

155

Non-U.S.

296

194

152

551

Total

467

188

611

706

~~Chemical earnings were $467 million in the second~~ quarter of 2020, ~~up $279 million from the second quarter of 2019.~~

·	~~Higher margins increased earnings by $140 million.~~
·	~~Volume and mix effects decreased earnings by $180 million.~~
·	~~All other items increased earnings by $320 million, mainly due to lower expenses of $240 million and favorable non-operational impacts associated with an inventory adjustment of $110 million.~~
·	~~U.S. Chemical earnings were $171 million, compared with a loss of $6 million in the prior year quarter.~~
·	~~Non-U.S. Chemical results were $296 million, up $102 million from the prior year quarter.~~
·	~~Second quarter prime product sales of 5.9 million metric tons were 754,000 metric tons lower than the prior year quarter.~~

~~Chemical earnings were $611 million in the first six months of 2020, down $95 million from the first six months of 2019.~~

·	~~Higher margins increased earnings by $180 million.~~
·	~~Volume and mix effects decreased earnings by $280 million.~~
·	All other items were essentially flat, as lower expenses of $190 million were offset by unfavorable non-operational impacts associated with an inventory adjustment of $120 million and impairments of $90 million.
·	~~U.S. Chemical earnings were $459 million, up $304 million from the prior year.~~
·	~~Non-U.S. Chemical earnings were $152 million, down $399 million from the prior year.~~
·	~~First six months prime product sales of 12.2 million metric tons were 1.3 million metric tons lower than the prior year.~~

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)

Corporate and financing results

(872)

(770)

(1,551)

(1,558)

~~Corporate and financing expenses were $872 million for the second quarter of 2020, up $102 million from the second quarter of 2019 on~~reflecting higher ~~financing costs.~~

~~Corporate and financing expenses were $1,551 million for the first six months of 2020, essentially in line with 2019.~~

retirement-related expenses.

LIQUIDITY AND CAPITAL RESOURCES

Second Quarter

First Six Months

2020

2019

2020

2019

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

Operating activities

6,274

14,285

Investing activities

(11,448)

(12,670)

Financing activities

15,062

(496)
Effect of exchange rate changes

(401)

52
Increase/(decrease) in cash and cash equivalents

9,487

1,171

Cash and cash equivalents (at end of period)

12,576

4,213

Cash flow from operations and asset sales

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

-

5,947

6,274

14,285

Proceeds associated with sales of subsidiaries, property,

plant & equipment, and sales and returns of investments

43

33

129

140

Cash flow from operations and asset sales

43

5,980

6,403

14,425

LIQUIDITY AND CAPITAL RESOURCES


	First Three Months
		2021	2020
	(millions of dollars)
Net cash provided by/(used in)
Operating activities		9,264	6,274
Investing activities		(2,355)	(6,367)
Financing activities		(7,785)	8,785
Effect of exchange rate changes		27	(369)
Increase/(decrease) in cash and cash equivalents		(849)	8,323

Cash and cash equivalents (at end of period)		3,515	11,412

Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)		9,264	6,274
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments		307	86
Cash flow from operations and asset sales		9,571	6,360

Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales in the ~~second~~first quarter of ~~2020~~2021 was ~~$43 million, a decrease~~$9.6 billion,an increase of ~~$5.9~~$3.2 billion from the comparable ~~2019~~2020 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 sales in 2020.~~higher earnings.

Cash provided by operating activities totaled ~~$6.3~~$9.3 billion for the first ~~six~~three months of ~~2020, $8.0~~2021, $3.0 billion ~~lower~~higher than ~~2019.~~2020. Net income including noncontrolling interests was ~~a loss~~$2.8 billion, an increase of ~~$1.9 billion, a decrease of $7.7~~$3.6 billion from the prior year period. The adjustments for the noncash ~~provisions were $10.7~~provision of $5.0 billion for depreciation and depletion ~~and $0.2~~was down $0.8 billion ~~for the lower of cost or market inventory adjustment.~~from 2020. Changes in operational working capital were a ~~reduction~~contribution of ~~$2.4~~$2.0 billion, compared to a ~~contribution~~reduction of ~~$1.0~~$0.9 billion in the prior year period. All other items net decreased cash flows by ~~$0.3~~$0.5 billion in ~~2020~~2021 versus a reduction of ~~$1.7~~$0.1 billion in ~~2019.~~2020. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first ~~six~~three months of ~~2020~~2021 used net cash of ~~$11.4~~$2.4 billion, a decrease of ~~$1.2~~$4.0 billion compared to the prior year. Spending for additions to property, plant and equipment of ~~$10.4~~$2.4 billion was ~~$1.0~~$3.5 billion lower than ~~2019.~~2020. Proceeds from asset sales of ~~$0.1~~$0.3 billion were ~~comparable to~~$0.2 billion higher than the prior year. Net investments and advances decreased $0.2 billion to ~~$1.2~~$0.3 billion.

~~During~~Net cash used by financing activities was $7.8 billion in the first ~~six~~three months of ~~2020, the Corporation issued $23.2~~2021, including $4.1 billion of debt repayments. ~~billion of long-term debt. Net~~This compares to net cash provided by financing activities ~~was $15.1~~of $8.8 billion in the prior year, due to a long-term debt issuance in the first ~~six months~~quarter of ~~2020, $15.6 billion higher than 2019 reflecting 2020 debt issuances.~~2020.

Total debt at the end of the ~~second~~first quarter of ~~2020~~2021 was ~~$69.5~~$63.3 billion compared to ~~$46.9~~$67.6 billion at year-end ~~2019.~~2020. The Corporation's debt to total capital ratio was ~~27.1~~27.8 percent at the end of the ~~second~~first quarter of ~~2020~~2021 compared to ~~19.1~~29.2 percent at year-end ~~2019.~~

During the first six months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at a gross cost of $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 4,234 million at year-end to 4,228 million at the end of the second quarter of 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 ~~retained~~has access to significant capacity of long-term and short-term ~~liquidity during the period.~~liquidity. Commercial paper continues to provide short-term liquidity, and is reflected in "Notes and loans payable" on the ~~balance of commercial paper outstanding was $19.7billion as of June 30, 2020. To provide increased liquidity and flexibility, the Corporation increased cash~~Consolidated Balance Sheet. Cash and cash equivalents ~~by $1.1~~was $3.5 billion ~~to $12.6 billion during~~at the ~~second~~end of the first quarter of ~~2020.~~2021. The Corporation had undrawn short-term committed lines of credit of ~~$15.4 billion and an undrawn long-term committed line of credit of $0.2~~$11.2 billion as of second quarter 2020. The Corporation plans to increase its 364-day facility from $7.5 billion to $10 billion in the third quarter and terminate the supplemental $7.0 billion facility that was established in the first quarter ~~of 2020.~~

2021.

Internally generated funds are generally expected to cover financial requirements, supplemented by short-term and long-term debt as required. The Corporation has increased debt to a level management believes is appropriate to provide liquidity given market uncertainties and, based on current projections, does not plan to take on additional debt.

The Corporation distributed a total of ~~$7.4~~$3.7 billion to shareholders in the first ~~six~~three months of ~~2020~~2021 through dividends.

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.

The termination of certain transportation service agreements in the first quarter reduced commitments previously reported at year-end in Form 10-K under “Take-or-pay and unconditional purchase obligations” by approximately $2.3 billion. The majority of those commitments related to the years 2026 and beyond.

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

TAXES

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)

Income taxes

(471)

1,241

41

3,124

Effective income tax rate

29
%

34
%

-33
%

44
%
Total other taxes and duties (1)

5,683

8,366

13,180

16,453

Total

5,212

9,607

13,221

19,577

TAXES


	First Three Months
		2021		2020
	(millions of dollars)
Income taxes		796		512
Effective income tax rate		33	%	481	%
Total other taxes and duties (1)		7,283		7,497
Total		8,079		8,009

(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 ~~$5.2~~$8.1 billion for the ~~second~~first quarter of ~~2020, a decrease~~2021, an increase of ~~$4.4~~$0.1 billion from ~~2019.~~2020. Income ~~taxes were a credit of $0.5~~tax expense was $0.8 billion compared to ~~income tax expense of $1.2~~$0.5 billion in the prior year reflecting ~~operating losses driven by lower~~higher commodity prices. The effective income tax rate of 2933 percent compared to 34481 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax ~~rates.~~rates and the absence of prior year inventory valuation and impairment impacts. Total other taxes and duties decreased by ~~$2.7~~$0.2 billion to ~~$5.7~~$7.3 billion.

Total taxes were $13.2 billion for the first six months of 2020, a decrease of $6.4 billion from 2019. Income tax expense decreased by $3.1 billion to $41 million reflecting lower pre-tax income. The effective income tax rate of -33 percent compared to 44 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 $3.3 billion to $13.2 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.

On January 13, 2021, the District Court ruled that no penalties apply to the Corporation's positions in this suit. The Corporation filed a notice of appeal regarding the substantive issues to the Fifth Circuit Court of Appeals on April 9, 2021. The government filed a notice of appeal regarding the penalty issue to the same court on April 19, 2021. Unfavorable resolution of all positions at issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.

RESTRUCTURING ACTIVITIES

During 2020, ExxonMobil conducted an extensive global review of staffing levels and subsequently commenced targeted workforce reductions within a number of countries to improve efficiency and reduce costs. The programs, which are expected to be substantially complete by the end of 2021, include both voluntary and involuntary employee separations and reductions in contractors.

In the first quarter of 2021, the Corporation recorded before-tax charges of $39 million ($31 million after tax), consisting primarily of employee separation costs, from workforce reduction programs in Singapore and Europe associated with the global review of staffing levels. These costs are captured in “Selling, general and administrative expenses” on the Statement of Income. Before-tax cash outflows in first quarter of 2021 associated with these activities were $130 million.

The Corporation estimates total charges of up to $200 million in 2021 related to planned workforce reduction programs with cash outflows ranging between $400 million and $600 million. This does not include charges related to employee reductions associated with any portfolio changes or other projects. Before-tax workforce reduction savings, including employees and contractors, are estimated to range between $1 billion and $2 billion per year after program completion when compared to 2019 levels.

CAPITAL AND EXPLORATION EXPENDITURES

Second Quarter

First Six Months

2020

2019

2020

2019

(millions of dollars)

Upstream (including exploration expenses)

3,577

6,242

8,703

11,603

Downstream

1,053

1,113

2,287

1,942

Chemical

695

718

1,477

1,414

Other

2

6

3

10

Total

5,327

8,079

12,470

14,969

CAPITAL AND EXPLORATION EXPENDITURES


	First Three Months
		2021	2020
	(millions of dollars)
Upstream (including exploration expenses)		2,357	5,126
Downstream		470	1,234
Chemical		306	782
Other		—	1
Total		3,133	7,143

Capital and exploration expenditures in the ~~second~~first quarter of ~~2020~~2021 were ~~$5.3~~$3.1 billion, down ~~34 percent from the second quarter of 2019.~~

~~Capital~~ ~~and~~ ~~exploration expenditures in the first six months of 2020 were $12.5 billion, down 17~~56 percent from the first ~~six months~~quarter of ~~2019 in response to market conditions.~~2020. The Corporation ~~anticipates an investment level~~expects 2021 capital spending to be in the range of ~~$23~~$16 billion ~~in 2020, down from the previously announced $33~~to $19 billion. Actual spending could vary depending on the progress of individual projects and property acquisitions.

If market conditions continue above the Corporation's planning basis, additional cash will not be used to increase capital investment above this range, but will instead be used to accelerate deleveraging.

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; plans to reduce future emissions intensity and the expected resulting absolute emission reductions; progressing carbon capture projects and results; total capital expenditures and mix; ~~earnings;~~ cash ~~flow; capital allocation and debt levels;~~flow, dividend and shareholder returns; business and project plans, timing, costs and capacities; resource recoveries and production rates; and accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions, including potential future impairment charges and proved reserve reductions; 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 the continuity of our board of directors and their strategic oversight; global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and 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 and government responses 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;economies; reservoir performance; the outcome of exploration projects and timely completion of development and construction projects; changes in law, taxes, or regulation including environmental regulations, and timely granting of governmental permits; government policies and support for low carbon technologies like carbon capture; war, trade 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 and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating difficulties; 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;~~basis; general economic conditions including the occurrence and duration of economic recessions; and other factors discussed under ~~the heading~~Item 1A. Risk Factors ~~Affecting Future Results on the Investors page of our website at www.exxonmobil.com and in Item 1A~~ of ExxonMobil’s ~~2019~~2020 Form ~~10-K and Forms 10-Q for the quarters ended March 31, 2020, and June 30, 2020.~~10-K. 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 ~~six~~three months ended ~~June 30, 2020,~~March 31, 2021, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for ~~2019.~~

2020.

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 ~~June 30, 2020.~~March 31, 2021. 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

ExxonMobil has elected to use a $1 million threshold for disclosing environmental proceedings.

On April 13, 2021, the United States filed a proposed Fourth Consent Decree Amendment (the “Proposed Amendment”) with the United States District Court for the Northern District of Illinois. The Proposed Amendment reflects an agreed settlement with the United States Environmental Protection Agency (“EPA”) and the State of Illinois to resolve alleged violations at ExxonMobil Oil Corporation’s Joliet Refinery in Illinois of (i) certain New Source Performance Standards and other requirements for refineries as further described in a 2013 Notice of Violation/Finding of Violation and (ii) certain requirements in the original Consent Decree entered into with the EPA in December 2005 (in each case, as previously reported on the Corporation’s Form 10-Q for the third quarter of 2013 and, with respect to the original 2005 Consent Decree, for the third quarter of 2005). Under the Proposed Amendment, ExxonMobil Oil Corporation has agreed to pay approximately $1.5 million in penalties, including $1,086,640 to the United States Treasury and $428,823 to the State of Illinois, and to implement various measures to reduce emissions at the Joliet Refinery including completion of approximately $10 million in capital improvements. The Proposed Amendment will also replace, supersede, and terminate the original 2005 Consent Decree as it pertains to ExxonMobil Oil Corporation’s Joliet Refinery. Once the Proposed Amendment is published in the Federal Register, it will be open to public comment for 30 days before the U.S. District Court may approve it.

As reported in the Corporation’s Form 10-Q for the third quarter of 2020, 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 the Sierra Club, Lone Star Chapter, sought declaratory and injunctive relief, penalties, attorney fees and litigation costs associated with alleged violations of 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 U.S. District Court’s penalty award and remanded the case back to the District Court for further proceedings. On March 2, 2021, the U.S. District Court awarded $14.25 million in civil penalties, payable to the United States Treasury. ExxonMobil filed its appeal of the judgment in the U.S. Court of Appeals for the Fifth Circuit on April 12, 2021.

~~None.~~

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 ~~June 30, 2020~~

March 31, 2021

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~~January 2021

—

~~Purchased~~

~~per Share~~

~~or Programs~~

~~Programs~~

February 2021

—

~~April 2020~~March 2021

—

~~May 2020~~Total

—

~~June 2020~~

~~Total~~

(See Note 1)

~~Note 1 - On August 1, 2000,~~During the first quarter, the Corporation ~~announced its intention to resume purchases of~~did not purchase any 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~~issue or ~~expiration date. The Corporation has continued to purchase shares since this announcement and to report purchased volumes in its quarterly earnings releases.~~sell any unregistered equity securities.

Note 1 - In its earnings release dated February 2, ~~2016,~~2021, the Corporation stated that 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~~its first quarter ~~of 2016.~~2021 anti-dilutive share repurchase program due to market uncertainty and intends to resume this program in the future as market conditions improve

Item 6. Exhibits

See Index to Exhibits of this report.

INDEX TO EXHIBITS

~~Exhibit~~	~~Description~~
Exhibit			Description
~~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~~
10(iii)(c.1)			ExxonMobil Supplemental Savings Plan.
10(iii)(c.2)			ExxonMobil Supplemental Pension Plan.
10(iii)(c.3)			ExxonMobil Additional Payments Plan.
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: ~~August~~May 5, ~~2020~~ 2021	By:	/s/ ~~DAVID S. ROSENTHAL~~LEN M. FOX
		~~David S. Rosenthal~~Len M. Fox
		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 ~~June 30, 2020~~ March 31, 2021
Common stock, without par value						~~4,228,233,288~~4,233,538,917


PART I. FINANCIAL INFORMATION

Item 1.Financial Statements

Condensed Consolidated Statement of Income Three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~			3

Condensed Consolidated Statement of Comprehensive Income Three ~~and six~~ months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~			4

Condensed Consolidated Balance Sheet As of ~~June 30, 2020~~March 31, 2021 and December 31, ~~2019~~ 2020			5

Condensed Consolidated Statement of Cash Flows ~~Six~~ Three months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~			6

Condensed Consolidated Statement of Changes in Equity Three months ended ~~June 30,~~March 31, 2021 and 2020 ~~and 2019~~			7

~~Condensed Consolidated Statement of Changes in Equity~~ ~~Six months ended June 30, 2020 and 2019~~			8

Notes to Condensed Consolidated Financial Statements			98

Item 2.Management's Discussion and Analysis of Financial Condition and Results of Operations			2017

Item 3.Quantitative and Qualitative Disclosures About Market Risk			2924

Item 4.Controls and Procedures			2924


PART II. OTHER INFORMATION

Item 1.Legal Proceedings			3025

~~Item 1A.Risk Factors~~			30

Item 2.Unregistered Sales of Equity Securities and Use of Proceeds			3125

Item 6.Exhibits			3125

Index to Exhibits			3226

Signature			3327


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)
	March 31, 2021	December 31, 2020
Assets
Current assets
Cash and cash equivalents	3,515	4,364
Notes and accounts receivable – net	24,755	20,581
Inventories
Crude oil, products and merchandise	13,740	14,169
Materials and supplies	4,617	4,681
Other current assets	1,568	1,098
Total current assets	48,195	44,893
Investments, advances and long-term receivables	44,181	43,515
Property, plant and equipment – net	224,641	227,553
Other assets, including intangibles – net	16,753	16,789
Total assets	333,770	332,750

Liabilities
Current liabilities
Notes and loans payable	18,185	20,458
Accounts payable and accrued liabilities	41,017	35,221
Income taxes payable	948	684
Total current liabilities	60,150	56,363
Long-term debt	45,137	47,182
Postretirement benefits reserves	21,835	22,415
Deferred income tax liabilities	18,113	18,165
Long-term obligations to equity companies	3,279	3,253
Other long-term obligations	21,155	21,242
Total liabilities	169,669	168,620

Commitments and contingencies (Note 3)	0	0

Equity
Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	15,884	15,688
Earnings reinvested	382,953	383,943
Accumulated other comprehensive income	(16,090)	(16,705)
Common stock held in treasury
(3,785 million shares at March 31, 2021 and 3,786 million shares at December 31, 2020)	(225,773)	(225,776)
ExxonMobil share of equity	156,974	157,150
Noncontrolling interests	7,127	6,980
Total equity	164,101	164,130
Total liabilities and equity	333,770	332,750

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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

			Three Months Ended		Six Months Ended
			June 30,		June 30,
			2020	2019	2020	2019
Revenues and other income
	Sales and other operating revenue		32,277	67,491	87,411	129,137
	Income from equity affiliates		103	1,359	878	3,068
	Other income		225	241	474	511
		Total revenues and other income	32,605	69,091	88,763	132,716
Costs and other deductions
	Crude oil and product purchases		14,069	38,942	46,152	73,743
	Production and manufacturing expenses		6,895	9,522	15,192	18,492
	Selling, general and administrative expenses		2,409	2,827	4,988	5,597
	Depreciation and depletion		4,916	4,631	10,735	9,202
	Exploration expenses, including dry holes		214	333	502	613
	Non-service pension and postretirement benefit expense		271	313	540	671
	Interest expense		317	216	566	397
	Other taxes and duties		5,154	7,675	11,986	15,080
		Total costs and other deductions	34,245	64,459	90,661	123,795
Income (Loss) before income taxes			(1,640)	4,632	(1,898)	8,921
	Income taxes		(471)	1,241	41	3,124
Net income (loss) including noncontrolling interests			(1,169)	3,391	(1,939)	5,797
	Net income (loss) attributable to noncontrolling interests		(89)	261	(249)	317
Net income (loss) attributable to ExxonMobil			(1,080)	3,130	(1,690)	5,480


Earnings (Loss) per common share (dollars)			(0.26)	0.73	(0.40)	1.28

Earnings (Loss) per common share - assuming dilution (dollars)			(0.26)	0.73	(0.40)	1.28


	Three Months Ended March 31, 2021			Three Months Ended March 31, 2020
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	(3,786)	4,233	8,019	(3,785)	4,234
Acquisitions	—	—	—	—	(6)	(6)
Dispositions	—	1	1	—	—	—
Balance as of March 31	8,019	(3,785)	4,234	8,019	(3,791)	4,228

			As of June 30, 2020
			Equity	Other
			Company	Third Party
			Obligations (1)	Obligations	Total
			(millions of dollars)
Guarantees
	Debt-related		904	113	1,017
	Other		692	4,663	5,355
		Total	1,596	4,776	6,372
(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, 2018		(13,881)	(5,683)	(19,564)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income	1,096	(49)	1,047
Amounts reclassified from accumulated other
	comprehensive income	-	312	312
Total change in accumulated other comprehensive income		1,096	263	1,359
Balance as of June 30, 2019		(12,785)	(5,420)	(18,205)

Balance as of December 31, 2019		(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified
	from accumulated other comprehensive income (1)	(2,469)	(45)	(2,514)
Amounts reclassified from accumulated other
	comprehensive income	-	390	390
Total change in accumulated other comprehensive income		(2,469)	345	(2,124)
Balance as of June 30, 2020		(14,915)	(6,702)	(21,617)

			Three Months Ended		Six Months Ended
Income Tax (Expense)/Credit For			June 30,		June 30,
Components of Other Comprehensive Income			2020	2019	2020	2019
		(millions of dollars)

Foreign exchange translation adjustment			8	-	15	-
Postretirement benefits reserves adjustment
	(excluding amortization)		52	10	(10)	20
Amortization and settlement of postretirement benefits reserves
	adjustment included in net periodic benefit costs		(57)	(50)	(115)	(102)
Total			3	(40)	(110)	(82)

			At June 30, 2020
			(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)		1,488	165	-	1,653	(1,423)	(65)	-	165
	Advances to/receivables
		from equity companies (2)(7)	-	1,916	6,795	8,711	-	-	48	8,759
	Other long-term
		financial assets (3)	1,157	-	889	2,046	-	-	137	2,183

Liabilities
	Derivative liabilities (4)		1,748	88	-	1,836	(1,423)	(325)	-	88
	Long-term debt (5)		49,106	166	4	49,276	-	-	(3,962)	45,314
	Long-term obligations
		to equity companies (7)	-	-	3,766	3,766	-	-	65	3,831
	Other long-term
		financial liabilities (6)	-	-	1,066	1,066	-	-	6	1,072

			At December 31, 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)		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.

	June 30,	Dec. 31,
	2020	2019

Crude oil (millions of barrels)	(32)	57
Petroleum products (millions of barrels)	(53)	(38)
Natural Gas (MMBTUs)	(351)	(165)

Geographic
		Three Months Ended		Six Months Ended
		June 30,		June 30,
Sales and Other Operating Revenue		2020	2019	2020	2019
		(millions of dollars)

United States		10,854	23,819	30,311	44,659
Non-U.S.		21,423	43,672	57,100	84,478
	Total	32,277	67,491	87,411	129,137

Significant Non-U.S. revenue sources include: (1)
	Canada	2,148	5,346	5,971	10,196
	United Kingdom	1,906	4,781	5,597	9,202
	Singapore	1,867	3,135	4,483	6,255
	France	1,583	3,258	4,172	6,332
	Italy	1,228	2,494	3,186	5,139
	Belgium	1,247	3,245	3,136	6,773

	Reserve for		Liabilities for
	Notes and Other		Off-Balance
	Receivables and Loans		Sheet Assets
	Trade	Other			Total
	(millions of dollars)

Balance at December 31, 2019	34	469		-	503
Cumulative effect of accounting change	52	45		12	109
Current period provision	8	2		-	10
Write-offs charged against the allowance	(1)	(1)		-	(2)
Other	-	(12)		-	(12)
Balance at June 30, 2020	93	503		12	608


			2021
			(millions of dollars)
Balance at January 1			403
Additions/adjustments			39
Payments made			(130)
Balance at March 31			312

FUNCTIONAL EARNINGS SUMMARY

			Second Quarter		First Six Months
Earnings (Loss) (U.S. GAAP)			2020	2019	2020	2019
		(millions of dollars)
Upstream
	United States		(1,197)	335	(1,901)	431
	Non-U.S.		(454)	2,926	786	5,706
Downstream
	United States		(101)	310	(202)	149
	Non-U.S.		1,077	141	567	46
Chemical
	United States		171	(6)	459	155
	Non-U.S.		296	194	152	551
Corporate and financing			(872)	(770)	(1,551)	(1,558)
	Net income (Loss) attributable to ExxonMobil (U.S. GAAP)		(1,080)	3,130	(1,690)	5,480

Earnings (Loss) per common share (dollars)			(0.26)	0.73	(0.40)	1.28

Earnings (Loss) per common share - assuming dilution (dollars)			(0.26)	0.73	(0.40)	1.28