UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~September~~June 30, ~~2020~~2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File Number 1-2256

Exxon Mobil Corporation

(Exact name of registrant as specified in its charter)


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

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

_______________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange
on Which Registered

Common Stock, without par value

XOM

New York Stock Exchange

0.142% Notes due 2024

XOM24B

New York Stock Exchange

0.524% Notes due 2028

XOM28

New York Stock Exchange

0.835% Notes due 2032

XOM32

New York Stock Exchange

1.408% Notes due 2039

XOM39A

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding as of ~~September~~June 30, ~~2020~~2021
Common stock, without par value						~~4,228,234,114~~4,233,562,917

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED ~~SEPTEMBER~~JUNE 30, ~~2020~~2021

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

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

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

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

Condensed Consolidated Statement of Cash Flows ~~Nine~~Six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020			6

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



Condensed Consolidated Statement of Changes in Equity ~~Nine~~Six months ended ~~September~~June 30, ~~2020~~2021 and ~~2019~~2020			8

Notes to Condensed Consolidated Financial Statements			9

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			2019

Item 3. Quantitative and Qualitative Disclosures About Market Risk			3028

Item 4. Controls and Procedures			3028


PART II. OTHER INFORMATION

Item 1. Legal Proceedings			3129

~~Item 1A. Risk Factors~~			31

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			3229

Item 6. Exhibits			3229

Index to Exhibits			3330

Signature			3431

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION				EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME	CONDENSED CONSOLIDATED STATEMENT OF INCOME				CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)	(millions of dollars)				(millions of dollars)
		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
Revenues and other income	Revenues and other income					Revenues and other income
Sales and other operating revenue	Sales and other operating revenue	45,425	63,422	132,836	192,559	Sales and other operating revenue	65,943	32,277	123,495	87,411
Income from equity affiliates	Income from equity affiliates	517	1,196	1,395	4,264	Income from equity affiliates	1,436	103	2,909	878
Other income	Other income	257	431	731	942	Other income	363	225	485	474
Total revenues and other income	Total revenues and other income	46,199	65,049	134,962	197,765	Total revenues and other income	67,742	32,605	126,889	88,763
Costs and other deductions	Costs and other deductions					Costs and other deductions
Crude oil and product purchases	Crude oil and product purchases	23,950	35,290	70,102	109,033	Crude oil and product purchases	37,329	14,069	69,930	46,152
Production and manufacturing expenses	Production and manufacturing expenses	7,103	8,848	22,295	27,340	Production and manufacturing expenses	8,471	6,895	16,533	15,192
Selling, general and administrative expenses	Selling, general and administrative expenses	2,444	2,753	7,432	8,350	Selling, general and administrative expenses	2,345	2,409	4,773	4,988
Depreciation and depletion	Depreciation and depletion	4,983	4,873	15,718	14,075	Depreciation and depletion	4,952	4,916	9,956	10,735
Exploration expenses, including dry holes	Exploration expenses, including dry holes	188	299	690	912	Exploration expenses, including dry holes	176	214	340	502
Non-service pension and postretirement benefit expense	Non-service pension and postretirement benefit expense	272	357	812	1,028	Non-service pension and postretirement benefit expense	162	271	540	540
Interest expense	Interest expense	279	232	845	629	Interest expense	254	317	512	566
Other taxes and duties	Other taxes and duties	7,352	7,676	19,338	22,756	Other taxes and duties	7,746	5,154	14,406	11,986
Total costs and other deductions	Total costs and other deductions	46,571	60,328	137,232	184,123	Total costs and other deductions	61,435	34,245	116,990	90,661
Income (Loss) before income taxes	Income (Loss) before income taxes	(372)	4,721	(2,270)	13,642	Income (Loss) before income taxes	6,307	(1,640)	9,899	(1,898)
Income taxes	Income taxes	337	1,474	378	4,598	Income taxes	1,526	(471)	2,322	41
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	(709)	3,247	(2,648)	9,044	Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Net income (loss) attributable to noncontrolling interests	Net income (loss) attributable to noncontrolling interests	(29)	77	(278)	394	Net income (loss) attributable to noncontrolling interests	91	(89)	157	(249)
Net income (loss) attributable to ExxonMobil	Net income (loss) attributable to ExxonMobil	(680)	3,170	(2,370)	8,650	Net income (loss) attributable to ExxonMobil	4,690	(1,080)	7,420	(1,690)

Earnings (Loss) per common share (dollars)	Earnings (Loss) per common share (dollars)	(0.15)	0.75	(0.55)	2.03	Earnings (Loss) per common share (dollars)	1.10	(0.26)	1.74	(0.40)

Earnings (Loss) per common share - assuming dilution (dollars)	Earnings (Loss) per common share - assuming dilution (dollars)	(0.15)	0.75	(0.55)	2.03	Earnings (Loss) per common share - assuming dilution (dollars)	1.10	(0.26)	1.74	(0.40)

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


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

		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	(709)	3,247	(2,648)	9,044	Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Other comprehensive income (loss) (net of income taxes)	Other comprehensive income (loss) (net of income taxes)					Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	1,469	(1,424)	(1,305)	(75)	Foreign exchange translation adjustment	423	2,875	572	(2,774)
Adjustment for foreign exchange translation (gain)/loss included in net income		14	0	14	0

Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	(140)	103	(189)	43	Postretirement benefits reserves adjustment (excluding amortization)	(47)	(136)	121	(49)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	206	186	613	512	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	215	203	593	407
Total other comprehensive income (loss)	Total other comprehensive income (loss)	1,549	(1,135)	(867)	480	Total other comprehensive income (loss)	591	2,942	1,286	(2,416)
Comprehensive income (loss) including noncontrolling interests	Comprehensive income (loss) including noncontrolling interests	840	2,112	(3,515)	9,524	Comprehensive income (loss) including noncontrolling interests	5,372	1,773	8,863	(4,355)
Comprehensive income (loss) attributable to noncontrolling interests	Comprehensive income (loss) attributable to noncontrolling interests	92	14	(449)	587	Comprehensive income (loss) attributable to noncontrolling interests	178	131	324	(541)
Comprehensive income (loss) attributable to ExxonMobil	Comprehensive income (loss) attributable to ExxonMobil	748	2,098	(3,066)	8,937	Comprehensive income (loss) attributable to ExxonMobil	5,194	1,642	8,539	(3,814)

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET	CONDENSED CONSOLIDATED BALANCE SHEET			CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)	(millions of dollars)			(millions of dollars)
		September 30, 2020	December 31, 2019		June 30, 2021	December 31, 2020
Assets	Assets			Assets
Current assets	Current assets			Current assets
Cash and cash equivalents	Cash and cash equivalents	8,832	3,089	Cash and cash equivalents	3,465	4,364
Notes and accounts receivable – net	Notes and accounts receivable – net	19,974	26,966	Notes and accounts receivable – net	28,540	20,581
Inventories	Inventories			Inventories
Crude oil, products and merchandise	Crude oil, products and merchandise	13,162	14,010	Crude oil, products and merchandise	14,711	14,169
Materials and supplies	Materials and supplies	4,723	4,518	Materials and supplies	4,564	4,681
Other current assets	Other current assets	2,002	1,469	Other current assets	1,562	1,098
Total current assets	Total current assets	48,693	50,052	Total current assets	52,842	44,893
Investments, advances and long-term receivables	Investments, advances and long-term receivables	43,609	43,164	Investments, advances and long-term receivables	44,774	43,515
Property, plant and equipment – net	Property, plant and equipment – net	250,496	253,018	Property, plant and equipment – net	223,012	227,553
Other assets, including intangibles – net	Other assets, including intangibles – net	15,245	16,363	Other assets, including intangibles – net	16,661	16,789
Total assets	Total assets	358,043	362,597	Total assets	337,289	332,750

Liabilities	Liabilities			Liabilities
Current liabilities	Current liabilities			Current liabilities
Notes and loans payable	Notes and loans payable	21,911	20,578	Notes and loans payable	15,293	20,458
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	33,340	41,831	Accounts payable and accrued liabilities	45,780	35,221
Income taxes payable	Income taxes payable	1,217	1,580	Income taxes payable	1,165	684
Total current liabilities	Total current liabilities	56,468	63,989	Total current liabilities	62,238	56,363
Long-term debt	Long-term debt	46,888	26,342	Long-term debt	45,319	47,182
Postretirement benefits reserves	Postretirement benefits reserves	22,097	22,304	Postretirement benefits reserves	22,082	22,415
Deferred income tax liabilities	Deferred income tax liabilities	24,467	25,620	Deferred income tax liabilities	18,511	18,165
Long-term obligations to equity companies	Long-term obligations to equity companies	3,486	3,988	Long-term obligations to equity companies	3,038	3,253
Other long-term obligations	Other long-term obligations	20,025	21,416	Other long-term obligations	20,545	21,242
Total liabilities	Total liabilities	173,431	163,659	Total liabilities	171,733	168,620

Commitments and contingencies (Note 3)	Commitments and contingencies (Note 3)			Commitments and contingencies (Note 3)	0	0

Equity	Equity			Equity
Common stock without par value	Common stock without par value			Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	(9,000 million shares authorized, 8,019 million shares issued)	15,997	15,637	(9,000 million shares authorized, 8,019 million shares issued)	16,006	15,688
Earnings reinvested	Earnings reinvested	407,728	421,341	Earnings reinvested	383,922	383,943
Accumulated other comprehensive income	Accumulated other comprehensive income	(20,189)	(19,493)	Accumulated other comprehensive income	(15,586)	(16,705)
Common stock held in treasury	Common stock held in treasury			Common stock held in treasury
(3,791 million shares at September 30, 2020 and 3,785 million shares at December 31, 2019)		(226,136)	(225,835)
(3,785 million shares at June 30, 2021 and 3,786 million shares at December 31, 2020)				(3,785 million shares at June 30, 2021 and 3,786 million shares at December 31, 2020)	(225,771)	(225,776)
ExxonMobil share of equity	ExxonMobil share of equity	177,400	191,650	ExxonMobil share of equity	158,571	157,150
Noncontrolling interests	Noncontrolling interests	7,212	7,288	Noncontrolling interests	6,985	6,980
Total equity	Total equity	184,612	198,938	Total equity	165,556	164,130
Total liabilities and equity	Total liabilities and equity	358,043	362,597	Total liabilities and equity	337,289	332,750

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS			CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)	(millions of dollars)			(millions of dollars)
		Nine Months Ended September 30,			Six Months Ended June 30,
		2020	2019		2021	2020
Cash flows from operating activities	Cash flows from operating activities			Cash flows from operating activities
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	(2,648)	9,044	Net income (loss) including noncontrolling interests	7,577	(1,939)
Depreciation and depletion	Depreciation and depletion	15,718	14,075	Depreciation and depletion	9,956	10,735
Noncash inventory adjustment - lower of cost or market		61	0

Changes in operational working capital, excluding cash and debt	Changes in operational working capital, excluding cash and debt	(1,539)	2,564	Changes in operational working capital, excluding cash and debt	1,573	(2,247)
All other items – net	All other items – net	(929)	(2,319)	All other items – net	(192)	(275)
Net cash provided by operating activities	Net cash provided by operating activities	10,663	23,364	Net cash provided by operating activities	18,914	6,274

Cash flows from investing activities	Cash flows from investing activities			Cash flows from investing activities
Additions to property, plant and equipment	Additions to property, plant and equipment	(13,653)	(17,657)	Additions to property, plant and equipment	(5,147)	(10,362)
Proceeds associated with sales of subsidiaries, property, plant and
equipment, and sales and returns of investments		229	600
Proceeds from asset sales and returns of investments				Proceeds from asset sales and returns of investments	557	129
Additional investments and advances	Additional investments and advances	(3,443)	(2,532)	Additional investments and advances	(613)	(1,524)
Other investing activities including collection of advances	Other investing activities including collection of advances	1,710	769	Other investing activities including collection of advances	132	309
Net cash used in investing activities	Net cash used in investing activities	(15,157)	(18,820)	Net cash used in investing activities	(5,071)	(11,448)

Cash flows from financing activities	Cash flows from financing activities			Cash flows from financing activities
Additions to long-term debt	Additions to long-term debt	23,186	7,019	Additions to long-term debt	0	23,186
Reductions in long-term debt	Reductions in long-term debt	(4)	0	Reductions in long-term debt	0	(3)
Additions to short-term debt (1)				Additions to short-term debt (1)	9,662	20,491
Reductions in short-term debt(1)	Reductions in short-term debt(1)	(1,651)	(3,836)	Reductions in short-term debt(1)	(18,000)	(15,078)
Additions/(reductions) in commercial paper, and debt with three months or less maturity (1)		139	6,139
Additions/(reductions) in debt with three months or less maturity				Additions/(reductions) in debt with three months or less maturity	1,320	(5,998)
Contingent consideration payments	Contingent consideration payments	(21)	0	Contingent consideration payments	(28)	(21)
Cash dividends to ExxonMobil shareholders	Cash dividends to ExxonMobil shareholders	(11,150)	(10,936)	Cash dividends to ExxonMobil shareholders	(7,441)	(7,434)
Cash dividends to noncontrolling interests	Cash dividends to noncontrolling interests	(137)	(157)	Cash dividends to noncontrolling interests	(112)	(93)
Changes in noncontrolling interests	Changes in noncontrolling interests	511	30	Changes in noncontrolling interests	(207)	317
Common stock acquired	Common stock acquired	(305)	(421)	Common stock acquired	(1)	(305)
Net cash used in financing activities	Net cash used in financing activities	10,568	(2,162)	Net cash used in financing activities	(14,807)	15,062
Effects of exchange rate changes on cash	Effects of exchange rate changes on cash	(331)	(73)	Effects of exchange rate changes on cash	65	(401)
Increase/(decrease) in cash and cash equivalents	Increase/(decrease) in cash and cash equivalents	5,743	2,309	Increase/(decrease) in cash and cash equivalents	(899)	9,487
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	3,089	3,042	Cash and cash equivalents at beginning of period	4,364	3,089
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	8,832	5,351	Cash and cash equivalents at end of period	3,465	12,576

Supplemental Disclosures	Supplemental Disclosures			Supplemental Disclosures
Income taxes paid	Income taxes paid	2,341	5,259	Income taxes paid	2,079	1,768
Cash interest paid	Cash interest paid			Cash interest paid
Included in cash flows from operating activities	Included in cash flows from operating activities	726	515	Included in cash flows from operating activities	466	290
Capitalized, included in cash flows from investing activities	Capitalized, included in cash flows from investing activities	516	540	Capitalized, included in cash flows from investing activities	313	335
Total cash interest paid	Total cash interest paid	1,242	1,055	Total cash interest paid	779	625

(1) Includes ~~a net addition of~~ commercial paper with a maturity ~~of over~~greater than three months of $6.4 billion in 2020 and $3.1 billion in 2019. The gross amount of commercial paper with a maturity of over three months issued was $28.8 billion in 2020 and $13.4 billion in 2019, while the gross amount repaid was $22.4 billion in 2020 and $10.3 billion in 2019.months.

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION								EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY								CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)	(millions of dollars)								(millions of dollars)
		ExxonMobil Share of Equity								ExxonMobil Share of Equity
		Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity		Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
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									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									Amortization of stock-based awards	177	—	—	—	177	—	177
Other									Other	(1)	—	—	—	(1)	223	222
Net income (loss) for the period									Net income (loss) for the period	—	(1,080)	—	—	(1,080)	(89)	(1,169)
Dividends - common shares									Dividends - common shares	—	(3,715)	—	—	(3,715)	(48)	(3,763)
Other comprehensive income (loss)									Other comprehensive income (loss)	—	—	2,722	—	2,722	220	2,942

Dispositions									Dispositions	—	—	—	1	1	—	1
Balance as of June 30, 2020									Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153

Balance as of March 31, 2021									Balance as of March 31, 2021	15,884	382,953	(16,090)	(225,773)	156,974	7,127	164,101
Amortization of stock-based awards	Amortization of stock-based awards	156	—	—	—	156	—	156	Amortization of stock-based awards	126	—	—	—	126	—	126
Other	Other	—	—	—	—	—	228	228	Other	(4)	—	—	—	(4)	33	29
Net income (loss) for the period	Net income (loss) for the period	—	3,170	—	—	3,170	77	3,247	Net income (loss) for the period	—	4,690	—	—	4,690	91	4,781
Dividends - common shares	Dividends - common shares	—	(3,716)	—	—	(3,716)	(57)	(3,773)	Dividends - common shares	—	(3,721)	—	—	(3,721)	(60)	(3,781)
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—	(1,072)	—	(1,072)	(63)	(1,135)	Other comprehensive income (loss)	—	—	504	—	504	87	591
Acquisitions, at cost	Acquisitions, at cost	—	—	—	—	—	(79)	(79)	Acquisitions, at cost	—	—	—	—	—	(293)	(293)
Dispositions	Dispositions	—	—	—	—	—	—	—	Dispositions	—	—	—	2	2	—	2
Balance as of September 30, 2019		15,795	419,367	(19,277)	(225,970)	189,915	7,194	197,109

Balance as of June 30, 2020		15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153
Amortization of stock-based awards		187	—	—	—	187	—	187
Other		(2)	—	—	—	(2)	194	192
Net income (loss) for the period		—	(680)	—	—	(680)	(29)	(709)
Dividends - common shares		—	(3,716)	—	—	(3,716)	(44)	(3,760)
Other comprehensive income (loss)		—	—	1,428	—	1,428	121	1,549
Acquisitions, at cost		—	—	—	—	—	—	—
Dispositions		—	—	—	—	—	—	—
Balance as of September 30, 2020		15,997	407,728	(20,189)	(226,136)	177,400	7,212	184,612
Balance as of June 30, 2021									Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556


		Three Months Ended September 30, 2020			Three Months Ended September 30, 2019				Three Months Ended June 30, 2021			Three Months Ended June 30, 2020
Common Stock Share Activity	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
		(millions of shares)			(millions of shares)				(millions of shares)			(millions of shares)
Balance as of June 30		8,019	(3,791)	4,228	8,019	(3,788)	4,231
Balance as of March 31								Balance as of March 31	8,019	(3,785)	4,234	8,019	(3,791)	4,228
Acquisitions	Acquisitions	—	—	—	—	—	—	Acquisitions	—	—	—	—	—	—
Dispositions	Dispositions	—	—	—	—	—	—	Dispositions	—	—	—	—	—	—
Balance as of September 30		8,019	(3,791)	4,228	8,019	(3,788)	4,231
Balance as of June 30								Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION								EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY								CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)	(millions of dollars)								(millions of dollars)
		ExxonMobil Share of Equity								ExxonMobil Share of Equity
		Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total 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		545	—	—	—	545	—	545
Other		(8)	—	—	—	(8)	275	267
Net income (loss) for the period		—	8,650	—	—	8,650	394	9,044
Dividends - common shares		—	(10,936)	—	—	(10,936)	(157)	(11,093)
Other comprehensive income (loss)		—	—	287	—	287	193	480
Acquisitions, at cost		—	—	—	(421)	(421)	(245)	(666)
Dispositions		—	—	—	4	4	—	4
Balance as of September 30, 2019		15,795	419,367	(19,277)	(225,970)	189,915	7,194	197,109
										Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of December 31, 2019	Balance as of December 31, 2019	15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938	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	Amortization of stock-based awards	545	—	—	—	545	—	545	Amortization of stock-based awards	358	—	—	—	358	—	358
Other	Other	(185)	—	—	—	(185)	574	389	Other	(183)	—	—	—	(183)	380	197
Net income (loss) for the period	Net income (loss) for the period	—	(2,370)	—	—	(2,370)	(278)	(2,648)	Net income (loss) for the period	—	(1,690)	—	—	(1,690)	(249)	(1,939)
Dividends - common shares	Dividends - common shares	—	(11,150)	—	—	(11,150)	(137)	(11,287)	Dividends - common shares	—	(7,434)	—	—	(7,434)	(93)	(7,527)
Cumulative effect of accounting change	Cumulative effect of accounting change	—	(93)	—	—	(93)	(1)	(94)	Cumulative effect of accounting change	—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—	(696)	—	(696)	(171)	(867)	Other comprehensive income (loss)	—	—	(2,124)	—	(2,124)	(292)	(2,416)
Acquisitions, at cost	Acquisitions, at cost	—	—	—	(305)	(305)	(63)	(368)	Acquisitions, at cost	—	—	—	(305)	(305)	(63)	(368)
Dispositions	Dispositions	—	—	—	4	4	—	4	Dispositions	—	—	—	4	4	—	4
Balance as of September 30, 2020		15,997	407,728	(20,189)	(226,136)	177,400	7,212	184,612
Balance as of June 30, 2020									Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153

Balance as of December 31, 2020									Balance as of December 31, 2020	15,688	383,943	(16,705)	(225,776)	157,150	6,980	164,130
Amortization of stock-based awards									Amortization of stock-based awards	328	—	—	—	328	—	328
Other									Other	(10)	—	—	—	(10)	86	76
Net income (loss) for the period									Net income (loss) for the period	—	7,420	—	—	7,420	157	7,577
Dividends - common shares									Dividends - common shares	—	(7,441)	—	—	(7,441)	(112)	(7,553)

Other comprehensive income (loss)									Other comprehensive income (loss)	—	—	1,119	—	1,119	167	1,286
Acquisitions, at cost									Acquisitions, at cost	—	—	—	(1)	(1)	(293)	(294)
Dispositions									Dispositions	—	—	—	6	6	—	6
Balance as of June 30, 2021									Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556


		Nine Months Ended September 30, 2020			Nine Months Ended September 30, 2019				Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
Common Stock Share Activity	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
		(millions of shares)			(millions of shares)				(millions of shares)			(millions of shares)
Balance as of December 31	Balance as of December 31	8,019	(3,785)	4,234	8,019	(3,782)	4,237	Balance as of December 31	8,019	(3,786)	4,233	8,019	(3,785)	4,234
Acquisitions	Acquisitions	—	(6)	(6)	—	(6)	(6)	Acquisitions	—	—	—	—	(6)	(6)
Dispositions	Dispositions	—	—	—	—	—	—	Dispositions	—	1	1	—	—	—
Balance as of September 30		8,019	(3,791)	4,228	8,019	(3,788)	4,231
Balance as of June 30								Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

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 increases in inventory levels and sharp declines in prices for crude oil and petrochemical products. During the second and third quarters, the effects of COVID-19 continued to have a negative impact on the world’s major economies and demand for our products. Market conditions continue to reflect considerable uncertainty as consumer and business activity has exhibited some degree of recovery, but remains lower when compared to prior periods as a result of the pandemic.

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation's results for the ~~third~~second quarter of 2020 included a before-tax credit of ~~$153~~$2,624 million, ~~included in "Crude oil and product purchases" on the Statement of Income,~~ as rising ~~commodity~~ prices ~~resulted in the reversal of~~reduced the charge against the book value of inventories asfrom $2,777 million in the first quarter 2020 to $153 million for the first half of ~~the second quarter.~~2020. This adjustment, which is included in "Crude oil and product purchases", together with a market adjustment to inventory for equity companies included in "Income from equity ~~affiliates,"~~affiliates", resulted in a ~~$113~~$1,922 million after-tax credit to earnings (excluding noncontrolling interests) in the ~~third quarter. At year-end, any required adjustment to write down~~second quarter of 2020.

In the ~~book value~~first half of ~~inventories to their market value is considered permanent and is incorporated into the LIFO carrying value of the inventory.~~

~~Primarily~~2020, mainly as a result of declines in prices for crude oil, natural gas and ~~other petrochemical~~petroleum products ~~in 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 ~~$884~~$611 million ~~in the nine months ended September 30, 2020. These charges included goodwill impairments of $562 million in Upstream, Downstream, and Chemical reporting units~~ and other impairment charges of ~~$322~~$363 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~~were recognized. The charges mainly related to the Corporation’s investment in an Upstream equity company, reflect a write down to estimated fair value based on third party price outlooks, internal estimates of future volumes and costs, and estimates of discount rates for similar properties. Charges related to goodwill ~~and asset~~ impairments ~~are~~were included in “Depreciation and depletion” on the Statement of Income ~~and~~while the charges related to ~~equity method investments are~~other impairments were largely included in “Income from equity affiliates.”

3. Litigation and Other Contingencies

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. The Corporation and certain of its consolidated subsidiaries were contingently liable at ~~September~~June 30, ~~2020,~~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 September 30, 2020

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


		As of June 30, 2021
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	1,026	131	1,157
	Other	865	4,933	5,798
	Total	1,891	5,064	6,955

(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


ExxonMobil Share of Accumulated Other Comprehensive Income	ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Post-retirement Benefits Reserves Adjustment	Total	ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Postretirement Benefits Reserves Adjustment	Total
		(millions of dollars)				(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)		(252)	48	(204)
Amounts reclassified from accumulated other comprehensive income		0	491	491
Total change in accumulated other comprehensive income		(252)	539	287
Balance as of September 30, 2019		(14,133)	(5,144)	(19,277)

Balance as of December 31, 2019	Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)	Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	(1,125)	(172)	(1,297)	Current period change excluding amounts reclassified from accumulated other comprehensive income(1)	(2,469)	(45)	(2,514)
Amounts reclassified from accumulated other comprehensive income	Amounts reclassified from accumulated other comprehensive income	14	587	601	Amounts reclassified from accumulated other comprehensive income	0	390	390
Total change in accumulated other comprehensive income	Total change in accumulated other comprehensive income	(1,111)	415	(696)	Total change in accumulated other comprehensive income	(2,469)	345	(2,124)
Balance as of September 30, 2020		(13,557)	(6,632)	(20,189)
Balance as of June 30, 2020					Balance as of June 30, 2020	(14,915)	(6,702)	(21,617)

Balance as of December 31, 2020					Balance as of December 31, 2020	(10,614)	(6,091)	(16,705)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)					Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	425	119	544
Amounts reclassified from accumulated other comprehensive income					Amounts reclassified from accumulated other comprehensive income	0	575	575
Total change in accumulated other comprehensive income					Total change in accumulated other comprehensive income	425	694	1,119
Balance as of June 30, 2021					Balance as of June 30, 2021	(10,189)	(5,397)	(15,586)

(1)Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) ~~of $(159) million,~~ net of ~~taxes.~~taxes of $135 million and $5 million in 2021 and 2020, respectively.


Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense)		Three Months Ended September 30,		Nine Months Ended September 30,
Amounts Reclassified Out of Accumulated Other						Amounts Reclassified Out of Accumulated Other	Three Months Ended June 30,		Six Months Ended June 30,
Comprehensive Income - Before-tax Income/(Expense)						Comprehensive Income - Before-tax Income/(Expense)	2021	2020	2021	2020
		2020	2019	2020	2019		(millions of dollars)		(millions of dollars)
		(millions of dollars)		(millions of dollars)
Foreign exchange translation gain/(loss) included in net income (Statement of Income line: Other income)		(14)	0	(14)	0
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs					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)	(Statement of Income line: Non-service pension and postretirement benefit expense)	(268)	(236)	(790)	(664)	(Statement of Income line: Non-service pension and postretirement benefit expense)	(280)	(260)	(764)	(522)


Income Tax (Expense)/Credit For Components of Other Comprehensive Income		Three Months Ended September 30,		Nine Months Ended September 30,
		2020	2019	2020	2019
Income Tax (Expense)/Credit For						Income Tax (Expense)/Credit For	Three Months Ended June 30,		Six Months Ended June 30,
Components of Other Comprehensive Income						Components of Other Comprehensive Income	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	57	1	72	1	Foreign exchange translation adjustment	19	8	(34)	15
Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	74	(56)	64	(36)	Postretirement benefits reserves adjustment (excluding amortization)	25	52	(33)	(10)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(62)	(50)	(177)	(152)	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(65)	(57)	(171)	(115)
Total	Total	69	(105)	(41)	(187)	Total	(21)	3	(238)	(110)

5. Earnings Per Share


		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
Earnings per common share	Earnings per common share					Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	Net income (loss) attributable to ExxonMobil (millions of dollars)	(680)	3,170	(2,370)	8,650	Net income (loss) attributable to ExxonMobil (millions of dollars)	4,690	(1,080)	7,420	(1,690)
Weighted average number of common shares outstanding (millions of shares)	Weighted average number of common shares outstanding (millions of shares)	4,271	4,271	4,270	4,270	Weighted average number of common shares outstanding (millions of shares)	4,276	4,271	4,274	4,270
Earnings (Loss) per common share (dollars) (1)	Earnings (Loss) per common share (dollars) (1)	(0.15)	0.75	(0.55)	2.03	Earnings (Loss) per common share (dollars) (1)	1.10	(0.26)	1.74	(0.40)
Dividends paid per common share (dollars)	Dividends paid per common share (dollars)	0.87	0.87	2.61	2.56	Dividends paid per common share (dollars)	0.87	0.87	1.74	1.74

(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 September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Components of net benefit cost	Components of net benefit cost					Components of net benefit cost
Pension Benefits - U.S.	Pension Benefits - U.S.					Pension Benefits - U.S.
Service cost	Service cost	245	208	712	563	Service cost	208	232	433	467
Interest cost	Interest cost	177	192	531	574	Interest cost	140	177	279	354
Expected return on plan assets	Expected return on plan assets	(178)	(143)	(528)	(427)	Expected return on plan assets	(181)	(175)	(361)	(350)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	79	77	237	233	Amortization of actuarial loss/(gain) and prior service cost	55	79	110	158
Net pension enhancement and curtailment/settlement cost	Net pension enhancement and curtailment/settlement cost	52	54	156	161	Net pension enhancement and curtailment/settlement cost	95	52	393	104
Net benefit cost	Net benefit cost	375	388	1,108	1,104	Net benefit cost	317	365	854	733

Pension Benefits - Non-U.S.	Pension Benefits - Non-U.S.					Pension Benefits - Non-U.S.
Service cost	Service cost	178	136	524	413	Service cost	198	171	393	346
Interest cost	Interest cost	165	189	488	573	Interest cost	135	162	265	323
Expected return on plan assets	Expected return on plan assets	(226)	(192)	(664)	(581)	Expected return on plan assets	(263)	(216)	(521)	(438)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	124	102	358	260	Amortization of actuarial loss/(gain) and prior service cost	121	115	244	234
Net pension enhancement and curtailment/settlement cost						Net pension enhancement and curtailment/settlement cost	0	0	12	0
Net benefit cost	Net benefit cost	241	235	706	665	Net benefit cost	191	232	393	465

Other Postretirement Benefits	Other Postretirement Benefits					Other Postretirement Benefits
Service cost	Service cost	45	38	134	104	Service cost	46	44	95	89
Interest cost	Interest cost	70	79	208	237	Interest cost	55	68	111	138
Expected return on plan assets	Expected return on plan assets	(4)	(4)	(13)	(12)	Expected return on plan assets	(4)	(5)	(9)	(9)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	13	3	39	10	Amortization of actuarial loss/(gain) and prior service cost	9	14	17	26
Net benefit cost	Net benefit cost	124	116	368	339	Net benefit cost	106	121	214	244

7. Financial Instruments and Derivatives

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


			At September 30, 2020										At June 30, 2021
			(millions of dollars)										(millions of dollars)
			Fair Value										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			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	Assets										Assets
		Derivative assets (1)	637	121	—	758	(571)	(80)	—	107		Derivative assets (1)	2,156	594	—	2,750	(2,357)	0	—	393
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(7)	—	3,152	6,081	9,233	—	—	(193)	9,040		from equity companies (2)(6)	—	3,167	5,727	8,894	—	—	(291)	8,603
		Other long-term										Other long-term
		financial assets (3)	1,197	—	915	2,112	—	—	130	2,242		financial assets (3)	1,104	—	1,303	2,407	—	—	190	2,597
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	817	91	—	908	(571)	(259)	—	78		Derivative liabilities (4)	2,806	759	—	3,565	(2,357)	(650)	—	558
		Long-term debt (5)	49,153	149	4	49,306	—	—	(4,031)	45,275		Long-term debt (5)	46,787	100	4	46,891	—	—	(3,376)	43,515
		Long-term obligations										Long-term obligations
		to equity companies (7)	—	—	3,685	3,685	—	—	(199)	3,486		to equity companies (6)	—	—	3,337	3,337	—	—	(299)	3,038
		Other long-term										Other long-term
		financial liabilities (6)	—	—	1,073	1,073	—	—	11	1,084		financial liabilities (7)	—	—	972	972	—	—	57	1,029


			At December 31, 2019										At December 31, 2020
			(millions of dollars)										(millions of dollars)
			Fair Value										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			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	Assets										Assets
		Derivative assets (1)	533	102	—	635	(463)	(70)	—	102		Derivative assets (1)	1,247	194	—	1,441	(1,282)	(6)	—	153
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(7)	—	1,941	6,729	8,670	—	—	(128)	8,542		from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812
		Other long-term										Other long-term
		financial assets (3)	1,145	—	974	2,119	—	—	44	2,163		financial assets (3)	1,235	—	944	2,179	—	—	125	2,304
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	568	70	—	638	(463)	(105)	—	70		Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213
		Long-term debt (5)	25,652	134	3	25,789	—	—	(1,117)	24,672		Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502
		Long-term obligations										Long-term obligations
		to equity companies (7)	—	—	4,245	4,245	—	—	(257)	3,988		to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253
		Other long-term										Other long-term
		financial liabilities (6)	—	—	1,042	1,042	—	—	16	1,058		financial liabilities (7)	—	—	964	964	—	—	44	1,008

(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.

(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 ~~September~~June 30, 2021, and December 31, 2020, respectively, the Corporation had ~~$462~~$495 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 September 30, 2020, is below:


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

	~~Total~~	~~23,421~~

~~(1) Includes premiums of $152 million.~~

~~(2) Euro-denominated.~~

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of ~~September~~June 30, ~~2020,~~2021, the Corporation has designated $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 ~~$11.0~~$10.7 billion and an undrawn long-term committed ~~line~~lines of credit of ~~$0.2~~$0.6 billion as of ~~third~~second quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10.0 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of 2020.2021.

Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of ~~September~~June 30, ~~2020,~~2021, and December 31, ~~2019,~~2020, or results of operations for the periods ended ~~September~~June 30, ~~2020,~~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 ~~September~~June 30, ~~2020,~~2021, and December 31, ~~2019,~~2020, was as follows:


		September 30,	December 31,		June 30,	December 31,
		2020	2019		2021	2020
		(millions)			(millions)
Crude oil (barrels)	Crude oil (barrels)	50	57	Crude oil (barrels)	30	40
Petroleum products (barrels)	Petroleum products (barrels)	(50)	(38)	Petroleum products (barrels)	(69)	(46)
Natural Gas (MMBTUs)		(438)	(165)
Natural gas (MMBTUs)				Natural gas (MMBTUs)	(461)	(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 September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Sales and other operating revenue	Sales and other operating revenue	(297)	144	688	(98)	Sales and other operating revenue	(1,088)	(251)	(1,600)	985
Crude oil and product purchases	Crude oil and product purchases	134	60	(396)	75	Crude oil and product purchases	(20)	(178)	(19)	(530)
Total	Total	(163)	204	292	(23)	Total	(1,108)	(429)	(1,619)	455

1615

8. Disclosures about Segments and Related Information


		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
		2020	2019	2020	2019		2021	2020	2021	2020
Earnings (Loss) After Income Tax	Earnings (Loss) After Income Tax	(millions of dollars)		(millions of dollars)		Earnings (Loss) After Income Tax	(millions of dollars)		(millions of dollars)
Upstream	Upstream					Upstream
United States	United States	(681)	37	(2,582)	468	United States	663	(1,197)	1,026	(1,901)
Non-U.S.	Non-U.S.	298	2,131	1,084	7,837	Non-U.S.	2,522	(454)	4,713	786
Downstream	Downstream					Downstream
United States	United States	(136)	673	(338)	822	United States	(149)	(101)	(262)	(202)
Non-U.S.	Non-U.S.	(95)	557	472	603	Non-U.S.	(78)	1,077	(355)	567
Chemical	Chemical					Chemical
United States	United States	357	53	816	208	United States	1,282	171	1,997	459
Non-U.S.	Non-U.S.	304	188	456	739	Non-U.S.	1,038	296	1,738	152
Corporate and financing	Corporate and financing	(727)	(469)	(2,278)	(2,027)	Corporate and financing	(588)	(872)	(1,437)	(1,551)
Corporate total	Corporate total	(680)	3,170	(2,370)	8,650	Corporate total	4,690	(1,080)	7,420	(1,690)

Sales and Other Operating Revenue	Sales and Other Operating Revenue					Sales and Other Operating Revenue
Upstream	Upstream					Upstream
United States	United States	1,422	1,941	4,280	7,228	United States	1,726	1,081	3,611	2,858
Non-U.S.	Non-U.S.	2,015	3,069	6,604	10,582	Non-U.S.	3,792	2,022	6,886	4,589
Downstream	Downstream					Downstream
United States	United States	12,267	18,358	35,854	52,721	United States	19,040	8,203	35,118	23,587
Non-U.S.	Non-U.S.	23,862	33,391	69,468	100,994	Non-U.S.	31,899	16,302	60,512	45,606
Chemical	Chemical					Chemical
United States	United States	2,162	2,412	6,028	7,421	United States	4,007	1,570	7,098	3,866
Non-U.S.	Non-U.S.	3,684	4,241	10,574	13,583	Non-U.S.	5,474	3,090	10,361	6,890
Corporate and financing	Corporate and financing	13	10	28	30	Corporate and financing	5	9	(91)	15
Corporate total	Corporate total	45,425	63,422	132,836	192,559	Corporate total	65,943	32,277	123,495	87,411

Intersegment Revenue	Intersegment Revenue					Intersegment Revenue
Upstream	Upstream					Upstream
United States	United States	2,348	2,876	5,999	7,828	United States	3,827	1,378	7,150	3,651
Non-U.S.	Non-U.S.	5,132	7,383	14,371	22,888	Non-U.S.	7,747	2,852	14,564	9,239
Downstream	Downstream					Downstream
United States	United States	2,812	5,439	8,820	16,942	United States	5,438	2,056	9,391	6,008
Non-U.S.	Non-U.S.	3,334	5,826	11,210	18,563	Non-U.S.	5,505	2,752	10,886	7,876
Chemical	Chemical					Chemical
United States	United States	1,480	1,489	4,466	5,947	United States	2,488	1,220	4,438	2,986
Non-U.S.	Non-U.S.	895	1,413	2,866	4,543	Non-U.S.	1,342	708	2,573	1,971
Corporate and financing	Corporate and financing	55	60	166	168	Corporate and financing	52	56	109	111

1716


Geographic	Geographic					Geographic
		Three Months Ended September 30,		Nine Months Ended September 30,			Three Months Ended June 30,		Six Months Ended June 30,
Sales and Other Operating Revenue	Sales and Other Operating Revenue	2020	2019	2020	2019	Sales and Other Operating Revenue	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
United States	United States	15,851	22,711	46,162	67,370	United States	24,773	10,854	45,827	30,311
Non-U.S.	Non-U.S.	29,574	40,711	86,674	125,189	Non-U.S.	41,170	21,423	77,668	57,100
Total	Total	45,425	63,422	132,836	192,559	Total	65,943	32,277	123,495	87,411

Significant Non-U.S. revenue sources include: (1)	Significant Non-U.S. revenue sources include: (1)					Significant Non-U.S. revenue sources include: (1)
Canada	Canada	3,566	4,945	9,537	15,141	Canada	5,282	2,148	9,541	5,971
United Kingdom	United Kingdom	2,827	4,042	8,424	13,244	United Kingdom	3,815	1,906	6,758	5,597
Singapore	Singapore	2,400	2,942	6,883	9,197	Singapore	3,515	1,867	6,950	4,483
France	France	2,273	3,266	6,446	9,597	France	3,247	1,583	6,029	4,172
Italy	Italy	2,055	2,691	5,241	7,830	Italy	2,466	1,228	4,331	3,186
Belgium	Belgium	1,504	2,598	4,639	9,371	Belgium	2,192	1,247	4,181	3,136
Australia						Australia	2,019	1,372	3,748	3,025

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

9. ~~Leases~~Divestment Activities

~~A previously recorded operating lease was renegotiated~~ExxonMobil signed an agreement in the first quarter of ~~2020~~2021 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 by year-end 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 levels 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 ~~new~~remainder in future years.

In the second quarter of 2021, ExxonMobil signed an agreement ~~no longer meets~~with Celanese for the ~~definition~~sale of ~~a lease. At year-end 2019, this agreement had been reported as a right of use asset of $1.3~~its global Santoprene business for $1.15 billion, subject to working capital and ~~a lease liability of $1.3 billion~~other adjustments. The sale includes 2 thermoplastic elastomers manufacturing sites in Pensacola, Florida and Newport, Wales along with associated assets. The transaction is expected to close in the ~~“Other” operating lease category.~~ fourth quarter of 2021, subject to standard conditions precedent including regulatory approvals. Estimated total cash flow from the divestment is approximately $0.9 billion.

The ~~new agreement will be reported as~~Corporation expects to recognize a ~~take-or-pay obligation.~~gain at closing for each of these transactions. Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts, and closing dates.

~~10. Allowance for Current Expected Credit Loss (CECL)~~

~~Effective January 1,~~10.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 completed by the end of 2021, include both voluntary and involuntary employee separations and reductions in contractors.

During the second quarter of 2021, the Corporation ~~adopted~~recorded before-tax charges of $10 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 first six months of the year, the recorded before-tax charges associated with the global review of staffing levels were $49 million.

For the full year, the Corporation estimates charges of less than $100 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 tables summarize 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 nine months 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 September 30, 2020, the Corporation’s evaluation of financial assets under~~ ~~Financial Instruments – Credit Losses (Topic 326)~~, as amended, included $16,450 million of notes and accounts receivable, net of allowances of $148 million, and $9,668 million of loans and long-term receivables, net of allowances of $436 million, and certain other financial assets where there is immaterial risk of loss.accrued liabilities.”

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


	Three Months Ended June 30,	Six Months Ended June 30,
	2021	2021
	(millions of dollars)	(millions of dollars)
Beginning Balance	312	403
Additions/adjustments	10	49
Payments made	(94)	(224)
Ending Balance	228	228

EXXON MOBIL CORPORATION

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

~~FUNCTIONAL EARNINGS SUMMARY~~

Third Quarter First Nine Months
Earnings (Loss) (U.S. GAAP) 2020 2019 2020 2019
(millions of dollars) (millions of dollars)
Upstream
United States (681) 37 (2,582) 468
Non-U.S. 298 2,131 1,084 7,837
Downstream
United States (136) 673 (338) 822
Non-U.S. (95) 557 472 603
Chemical
United States 357 53 816 208
Non-U.S. 304 188 456 739
Corporate and financing (727) (469) (2,278) (2,027)
Net income (loss) attributable to ExxonMobil (U.S. GAAP) (680) 3,170 (2,370) 8,650
Earnings (Loss) per common share (dollars)
(0.15) 0.75 (0.55) 2.03
Earnings (Loss) per common share - assuming dilution (dollars)
(0.15) 0.75 (0.55) 2.03

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

~~CURRENT ECONOMIC CONDITIONS~~

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

Demand for petroleum and petrochemical ~~products. During the second and third quarters, the effects of COVID-19~~products has continued to ~~have a negative impact on~~recover through 2021 with the ~~world’s major economies~~Corporation's second quarter 2021 financial results benefiting from stronger prices and ~~demand for our products.~~

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

The Corporation has taken several actions in response to these conditions. In April 2020 the Corporation announced significant reductions in 2020 capital spending and operating expenses. Capital and exploration expenditures for 2020 are expected to be no more than $23 billion, down from the previously announced $33 billion. The Corporation took steps to strengthen its liquidity including issuing $8.5 billion of long-term U.S. debt securities in the first quarter of ~~2020~~2021. The rate and ~~issuing a further $9.5 billion~~pace of ~~long-term U.S. debt securities~~recovery, however, has varied across geographies and ~~$5.0 billion of long-term Euro-denominated debt securities in~~business lines, with Downstream margins remaining low compared to historical levels over the second quarter of 2020. The Corporation is developing plans consistent with near-term demand uncertainties and does not plan on increasing gross debt above second quarter levels. The Corporation had undrawn short-term committed lines of credit of $11.0 billion and an undrawn long-term committed line of credit of $0.2 billion as of third quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of 2020.

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

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

The Corporation has reviewed its near-term spending reductions and resulting near-term production impacts to determine whether they put its long-lived assets at risk for impairment. In large part due to expectations for lower prices in the near term, the Corporation has recorded impairments thus far in 2020 for certain assets that were, in aggregate, insignificant. Despite the challenging near-term environment, the Corporation’s view of long-term supply and demand fundamentals has not changed significantly. However, the Corporation continues to assess its strategic plans and longer-term price views, taking into account current and developingclosely monitor industry and economic conditions amid the uneven global recovery from the COVID-19 pandemic.

FUNCTIONAL EARNINGS SUMMARY


	Second Quarter		First Six Months
Earnings (Loss) (U.S. GAAP)	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Upstream
United States	663	(1,197)	1,026	(1,901)
Non-U.S.	2,522	(454)	4,713	786
Downstream
United States	(149)	(101)	(262)	(202)
Non-U.S.	(78)	1,077	(355)	567
Chemical
United States	1,282	171	1,997	459
Non-U.S.	1,038	296	1,738	152
Corporate and financing	(588)	(872)	(1,437)	(1,551)
Net income (loss) attributable to ExxonMobil (U.S. GAAP)	4,690	(1,080)	7,420	(1,690)

Earnings (Loss) per common share (dollars)	1.10	(0.26)	1.74	(0.40)

Earnings (Loss) per common share - assuming dilution (dollars)	1.10	(0.26)	1.74	(0.40)

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 ~~continued market uncertainty, as part of its annual planning process.~~Corporate and financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

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

2119

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

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

REVIEW OF ~~THIRD~~SECOND QUARTER ~~2020~~2021 RESULTS

ExxonMobil’s ~~third~~second quarter ~~2020 results~~2021 earnings were ~~a loss of $0.7~~$4.7 billion, or ~~$0.15~~$1.10 per diluted share, compared with ~~earnings~~a loss of ~~$3.2~~$1.1 billion a year earlier. The ~~decrease~~increase in earnings was ~~primarily the result of~~driven by higher Upstream realizations; higher Chemical and Downstream margins; higher volumes; and lower ~~Upstream realizations, reduced Downstream margins, and unfavorable non-operational impacts, including less favorable one-time tax items.~~expenses. These impacts were partly offset by ~~lower expenses across all business segments~~the absence of prior year favorable non-operational inventory adjustments and higher ~~Downstream volume and mix effects.~~scheduled maintenance activity.

~~Results~~Earnings for the first ~~nine~~six months of ~~2020~~2021 were ~~a loss of $2.4~~$7.4 billion, or ~~$0.55~~$1.74 per diluted share, compared with ~~earnings~~a loss of ~~$8.7~~$1.7 billion a year earlier.

Capital and exploration expenditures were ~~$16.6~~$6.9 billion, down ~~$6.1~~$5.5 billion from ~~2019.~~2020.

Oil-equivalent production was ~~3.8~~3.7 million barrels per day, down 4 percent from the prior year. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production was ~~essentially flat with~~up 1 percent from the prior year.

The Corporation distributed ~~$11.2~~$7.4 billion in dividends to shareholders.

2220


		Third Quarter		First Nine Months			Second Quarter		First Six Months
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Upstream results	Upstream results					Upstream results
United States	United States	(681)	37	(2,582)	468	United States	663	(1,197)	1,026	(1,901)
Non-U.S.	Non-U.S.	298	2,131	1,084	7,837	Non-U.S.	2,522	(454)	4,713	786
Total	Total	(383)	2,168	(1,498)	8,305	Total	3,185	(1,651)	5,739	(1,115)

Upstream ~~results~~earnings were $3,185 million in the second quarter of 2021, compared with a loss of ~~$383~~$1,651 million in the ~~third~~second quarter of ~~2020, compared with earnings of $2,168 million in the third quarter of 2019.~~2020.

•Realizations ~~reduced~~increased earnings by ~~$2,630~~$4,320 million, ~~with lower~~driven by higher liquids realizations of ~~$1,830~~$4,060 million and ~~lower~~higher gas realizations of ~~$800~~$260 million.

•Volume and mix effects ~~reduced~~increased earnings by ~~$60~~$40 million due to ~~lower~~favorable liquids sales mix of $30 million and higher gas ~~volumes of $90 million partly offset by higher liquids~~ sales volumes of ~~$30~~$10 million.

•All other items increased earnings by ~~$140~~$470 million, ~~including~~as lower expenses of ~~$500~~$280 million and favorable other earnings impacts of $270 million were partly offset by unfavorable ~~non-operational~~foreign exchange impacts of ~~$310 million, mainly from current and prior year tax items, and other unfavorable earnings impacts of $50~~$80 million.

•U.S. Upstream ~~results~~earnings were ~~a loss of $681~~$663 million, ~~down $718~~up $1,860 million from the prior year quarter.

•Non-U.S. Upstream earnings were ~~$298~~$2,522 million, ~~down $1,833~~up $2,976 million from the prior year quarter.

•On an oil-equivalent basis, production decreased 62 percent from the ~~third~~second quarter of ~~2019.~~2020.

•Liquids production totaled ~~2.3~~2.2 million barrels per day, down 106,000 barrels per day, ~~with~~as higher ~~entitlements, lower downtime and growth~~demand was more than offset by ~~government mandates, divestments,~~lower entitlements and ~~lower demand.~~increased maintenance activity.

•Natural gas production was 8.3 billion cubic feet per day, ~~down 729~~up 304 million cubic feet per day, asreflecting the impacts of higher ~~entitlements were more than~~demand partly offset by ~~divestments, higher downtime,~~increased maintenance activity and ~~decline.~~divestments.

Upstream ~~results~~earnings were ~~a loss of $1,498~~$5,739 million in the first ~~nine~~six months of ~~2020,~~2021, compared with ~~earnings~~a loss of ~~$8,305~~$1,115 million in the first ~~nine~~six months of ~~2019.~~2020.

•Realizations ~~reduced~~increased earnings by ~~$9,050~~$5,610 million, with ~~lower~~higher liquids realizations of ~~$6,990~~$5,450 million and ~~lower~~higher gas realizations of ~~$2,060~~$160 million.

•Volume and mix effects reduced earnings by $320 million, ~~including $100~~reflecting lower liquid sales volumes of $370 million ~~for liquids and $220 million for gas.~~partly offset by higher gas volumes of $50 million.

•All other items ~~decreased~~increased earnings by ~~$430~~$1,560 million, as lower expenses of $990 million and the absence of prior year unfavorable non-operational impacts of ~~$1,080 million, reflecting impairments of~~ $410~~million and a prior year non-U.S. tax item of $490~~ million and other ~~unfavorable~~favorable earnings impacts of ~~$140~~$460 million were partly offset by ~~lower expenses of $630 million and favorable~~unfavorable foreign exchange effects of ~~$160~~$300 million.

•U.S. Upstream ~~results~~earnings were $1,026 million, compared with a loss of ~~$2,582 million, compared with earnings of $468~~$1,901 million in the prior year.

•Non-U.S. Upstream earnings were ~~$1,084~~$4,713 million, ~~down $6,753~~up $3,927 million from the prior year.

•On an oil-equivalent basis, production decreased 4 percent from the first ~~nine~~six months of ~~2019.~~2020.

•Liquids production totaled ~~2.4~~2.2 million barrels per day, down ~~12,000~~164,000 barrels per day, with ~~growth,~~ higher ~~entitlements,~~demand and ~~lower downtime~~project growth more than offset by ~~divestments,~~lower entitlements, government mandates, decline and ~~lower demand.~~increased maintenance activity.

•Natural gas production was ~~8.6~~8.7 billion cubic feet per day, ~~down 794~~up 38 million cubic feet per day, as higher ~~entitlements and growth were more than~~demand was largely offset by ~~divestments~~increased maintenance activity, the Groningen production limit, and ~~lower demand.~~divestments.

2321


		Third Quarter	First Nine Months		Second Quarter	First Six Months
Upstream additional information	Upstream additional information	(thousands of barrels daily)	(thousands of barrels daily)	Upstream additional information	(thousands of barrels daily)	(thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)	Volumes reconciliation (Oil-equivalent production) (1)			Volumes reconciliation (Oil-equivalent production) (1)
2019		3,899	3,929
2020				2020	3,638	3,842
Entitlements - Net Interest	Entitlements - Net Interest	(9)	(8)	Entitlements - Net Interest	4	(1)
Entitlements - Price / Spend / Other	Entitlements - Price / Spend / Other	159	108	Entitlements - Price / Spend / Other	(147)	(94)
Government Mandates	Government Mandates	(139)	(82)	Government Mandates	(6)	(65)
Divestments	Divestments	(154)	(163)	Divestments	(23)	(20)
Growth / Other	Growth / Other	(84)	1	Growth / Other	116	22
2020		3,672	3,785
2021				2021	3,582	3,684

(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 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.


		Third Quarter		First Nine Months			Second Quarter		First Six Months
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Downstream results	Downstream results					Downstream results
United States	United States	(136)	673	(338)	822	United States	(149)	(101)	(262)	(202)
Non-U.S.	Non-U.S.	(95)	557	472	603	Non-U.S.	(78)	1,077	(355)	567
Total	Total	(231)	1,230	134	1,425	Total	(227)	976	(617)	365

Downstream results were a loss of ~~$231~~$227 million in the ~~third~~second quarter of ~~2020,~~2021, down ~~$1,461~~$1,203 million from the ~~third~~second quarter of ~~2019.~~2020.

•Margins ~~decreased~~increased earnings by ~~$1,880~~$430 million, ~~mainly~~ reflecting ~~lower~~stronger industry refining ~~margins.~~conditions.

•Volume and mix effects increased earnings by ~~$120~~$220 million.

•All other items ~~increased~~decreased earnings by ~~$300~~$1,860 million, ~~mainly due to lower~~reflecting the absence of a prior year favorable inventory adjustment of $1,590 million, unfavorable foreign exchange impacts of $90 million, higher expenses of ~~$360~~$60 million, ~~partly offset by~~and other unfavorable ~~non-operational~~earnings impacts of ~~$90~~$120 million.

•U.S. Downstream results were a loss of ~~$136~~$149 million, compared with ~~earnings~~a loss of ~~$673~~$101 million in the prior year quarter.

•Non-U.S. Downstream results were a loss of ~~$95~~$78 million, down ~~$652~~$1,155 million from the prior year quarter.

•Petroleum product sales of 5.0 million barrels per day were ~~481,000~~604,000 barrels per day ~~lower~~higher than the prior year quarter.

Downstream results were ~~$134~~a loss of $617 million in the first ~~nine~~six months of ~~2020,~~2021, down ~~$1,291~~$982 million from the first ~~nine~~six months of ~~2019.~~2020.

•Margins decreased earnings by ~~$2,260~~$1,340 million, ~~as weaker industry refining margins were partly offset~~driven by ~~favorable mark-to-market derivatives.~~

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

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

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

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

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

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

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

•~~Higher margins increased earnings by $70 million.~~realized fuels margins.

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

•All other items increased earnings by ~~$320~~$330 million, as lower expenses of $350 million and the absence of prior year unfavorable non-operational impacts of $350 million were partly offset by unfavorable foreign exchange and other earnings impacts of $370 million.

•U.S. Downstream results were a loss of $262 million, compared with a loss of $202 million in the prior year.

•Non-U.S. Downstream results were a loss of $355 million, down $922 million from the prior year.

•Petroleum product sales of 5.0 million barrels per day were 99,000 barrels per day higher than the prior year.


	Second Quarter		First Six Months
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Chemical results
United States	1,282	171	1,997	459
Non-U.S.	1,038	296	1,738	152
Total	2,320	467	3,735	611

Chemical earnings were $2,320 million in the second quarter of 2021, up $1,853 million from the second quarter of 2020.

•Higher margins increased earnings by $1,680 million.

•Volume and mix effects increased earnings by $210 million.

•All other items decreased earnings by $40 million, mainly due to ~~lower expenses~~the absence of ~~$170 million and~~prior year favorable non-operational impacts ~~associated with an inventory adjustment~~ of $120 ~~million.~~million, partly offset by favorable foreign exchange impacts of $70 million and other favorable earnings impacts.

•U.S. Chemical earnings were ~~$357~~$1,282 million, up ~~$304~~$1,111 million ~~compared with earnings of $53 million in~~from the prior year quarter.

•Non-U.S. Chemical ~~results~~earnings were ~~$304~~$1,038 million, up ~~$116~~$742 million from the prior year quarter.

•~~Third~~Second quarter prime product sales of ~~6.6~~6.5 million metric tons were ~~148,000~~568,000 metric tons higher than the prior year quarter.

Chemical earnings were ~~$1,272~~$3,735 million in the first ~~nine~~six months of ~~2020,~~2021, up ~~$325~~$3,124 million from the first ~~nine~~six months of ~~2019.~~2020.

•Higher margins increased earnings by ~~$190~~$2,300 million.

•Volume and mix effects ~~decreased~~increased earnings by ~~$220~~$240 million.

•All other items increased earnings by ~~$350~~$580 million, asdriven by lower expenses of ~~$380~~$220 million, the absence of prior year unfavorable non-operational impacts of $210 million, favorable foreign exchange impacts of $120 million and other favorable earnings impacts of $30 ~~million were partly offset by unfavorable non-operational impacts, including impairments of $130~~ million.

•U.S. Chemical earnings were ~~$816~~$1,997 million, up ~~$608~~$1,538 million from the prior year.

•Non-U.S. Chemical earnings were ~~$456~~$1,738 million, ~~down $283~~up $1,586 million from the prior year.

•First ~~nine~~six months prime product sales of ~~18.8~~13.0 million metric tons were ~~1.1 million~~777,000 metric tons ~~lower~~higher than the prior year.

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


	Second Quarter		First Six Months
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Corporate and financing results	(588)	(872)	(1,437)	(1,551)

Corporate and financing expenses were ~~$727~~$588 million for the ~~third~~second quarter of 2021, down $284 million from the second quarter of 2020, ~~up $258 million from the third quarter of 2019,~~ reflecting ~~the absence of a prior year~~lower financing costs and net favorable ~~one-time~~ tax ~~item.~~

impacts.

Corporate and financing expenses were ~~$2,278~~$1,437 million for the first ~~nine~~six months of ~~2020, up $251~~2021, down $114 million from ~~2019,~~2020, reflecting ~~the absence of prior year~~lower financing costs and net favorable ~~one-time~~ tax ~~items and higher financing costs~~impacts, partly offset by ~~lower corporate costs.~~higher retirement related expenses.

2624

LIQUIDITY AND CAPITAL RESOURCES


		Third Quarter		First Nine Months			Second Quarter		First Six Months
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Net cash provided by/(used in)	Net cash provided by/(used in)					Net cash provided by/(used in)
Operating activities	Operating activities			10,663	23,364	Operating activities			18,914	6,274
Investing activities	Investing activities			(15,157)	(18,820)	Investing activities			(5,071)	(11,448)
Financing activities	Financing activities			10,568	(2,162)	Financing activities			(14,807)	15,062
Effect of exchange rate changes	Effect of exchange rate changes			(331)	(73)	Effect of exchange rate changes			65	(401)
Increase/(decrease) in cash and cash equivalents	Increase/(decrease) in cash and cash equivalents			5,743	2,309	Increase/(decrease) in cash and cash equivalents			(899)	9,487

Cash and cash equivalents (at end of period)	Cash and cash equivalents (at end of period)			8,832	5,351	Cash and cash equivalents (at end of period)			3,465	12,576

Cash flow from operations and asset sales	Cash flow from operations and asset sales					Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)	Net cash provided by operating activities (U.S. GAAP)	4,389	9,079	10,663	23,364	Net cash provided by operating activities (U.S. GAAP)	9,650	—	18,914	6,274
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	100	460	229	600	Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	250	43	557	129
Cash flow from operations and asset sales	Cash flow from operations and asset sales	4,489	9,539	10,892	23,964	Cash flow from operations and asset sales	9,900	43	19,471	6,403

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

Cash flow from operations and asset sales in the ~~third~~second quarter of ~~2020~~2021 was ~~$4.5~~$9.9 billion, ~~a decrease~~an increase of ~~$5.1~~$9.9 billion from the comparable ~~2019~~2020 period primarily reflecting ~~lower~~higher earnings and ~~unfavorable~~more favorable working capital impacts. ~~Current market conditions and the ability of counterparties to secure financing may negatively affect the pace of asset sales in 2020.~~

Cash provided by operating activities totaled ~~$10.7~~$18.9 billion for the first ~~nine~~six months of ~~2020, $12.7~~2021, $12.6 billion ~~lower~~higher than ~~2019.~~2020. Net income including noncontrolling interests was ~~a loss~~$7.6 billion, an increase of ~~$2.6 billion, a decrease of $11.7~~$9.5 billion from the prior year period. The adjustments for the noncash ~~provisions were $15.7~~provision of $10.0 billion for depreciation and depletion ~~and $0.1~~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 ~~$1.5~~$1.6 billion, compared to a ~~contribution~~reduction of ~~$2.6~~$2.2 billion in the prior year period. All other items net decreased cash flows by ~~$0.9~~$0.2 billion in ~~2020~~2021 versus a reduction of ~~$2.3~~$0.3 billion in ~~2019.~~2020. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first ~~nine~~six months of ~~2020~~2021 used net cash of ~~$15.2~~$5.1 billion, a decrease of ~~$3.7~~$6.4 billion compared to the prior year. Spending for additions to property, plant and equipment of ~~$13.7~~$5.1 billion was ~~$4.0~~$5.2 billion lower than ~~2019.~~2020. Proceeds from asset sales of ~~$0.2~~$0.6 billion were $0.4 billion ~~lower~~higher than the prior year. Net investments and advances ~~were comparable~~decreased $0.7 billion to ~~the prior year at $1.7~~$0.5 billion.

~~During~~Net cash used by financing activities was $14.8 billion in the first ~~nine~~six months of ~~2020, the Corporation issued $23.2~~2021, including $7.0 billion of ~~long-term debt. Net~~debt repayments.This compares to net cash provided by financing activities ~~was $10.6~~of $15.1 billion in the prior year, due to long-term debt issuances in the first ~~nine~~six months of ~~2020, $12.7 billion higher than 2019 reflecting the 2020 debt issuances.~~

2020.

Total debt at the end of the ~~third~~second quarter of ~~2020~~2021 was ~~$68.8~~$60.6 billion compared to ~~$46.9~~$67.6 billion at year-end ~~2019.~~2020. The Corporation's debt to total capital ratio was ~~27.1~~26.8 percent at the end of the ~~third~~second quarter of ~~2020~~2021 compared to ~~19.1~~29.2 percent at year-end ~~2019.~~

~~During~~2020. The Corporation's capital allocation priorities continue to be investing in advantaged projects, strengthening the ~~first nine months of 2020, Exxon Mobil Corporation purchased 6 million shares of its common stock for the treasury at~~balance sheet and paying 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 third 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.

reliable dividend.

The Corporation has access to significant capacity of long-term and short-term 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 $18.8 billion as of September 30, 2020.~~Consolidated Balance Sheet. Cash and cash equivalents was ~~$8.8~~$3.5 billion at the end of the ~~third~~second quarter of ~~2020.~~2021. The Corporation had undrawn short-term committed lines of credit of ~~$11.0~~$10.7 billion and an undrawn long-term committed ~~line~~lines of credit of ~~$0.2~~$0.6 billion as of third quarter 2020. In the third quarter, the Corporation increased its 364-day facility from $7.5 billion to $10.0 billion and terminated the supplemental $7.0 billion facility that was established in the first quarter of 2020.

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

2021.

The Corporation distributed a total of ~~$11.2~~$7.4 billion to shareholders in the first ~~nine~~six 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


		Third Quarter				First Nine Months					Second Quarter				First Six Months
		2020		2019		2020		2019			2021		2020		2021		2020
		(millions of dollars)				(millions of dollars)					(millions of dollars)				(millions of dollars)
Income taxes	Income taxes	337		1,474		378		4,598		Income taxes	1,526		(471)		2,322		41
Effective income tax rate	Effective income tax rate	-198	%	37	%	-56	%	41	%	Effective income tax rate	30	%	29	%	31	%	-33	%
Total other taxes and duties (1)	Total other taxes and duties (1)	7,901		8,317		21,081		24,770		Total other taxes and duties (1)	8,441		5,683		15,724		13,180
Total	Total	8,238		9,791		21,459		29,368		Total	9,967		5,212		18,046		13,221

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

Total taxes were ~~$8.2~~$10.0 billion for the ~~third~~second quarter of ~~2020, a decrease~~2021, an increase of ~~$1.6~~$4.8 billion from ~~2019.~~2020. Income tax expense was ~~$0.3~~$1.5 billion compared to ~~$1.5~~a $0.5 billion income tax credit in the prior year reflecting ~~operating losses driven by lower~~higher commodity prices. The effective income tax rate of ~~-198~~30 percent compared to 3729 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~~increased by ~~$0.4~~$2.8 billion to ~~$7.9~~$8.4 billion.

Total taxes were ~~$21.5~~$18.0 billion for the first ~~nine~~six months of ~~2020, a decrease~~2021, an increase of ~~$7.9~~$4.8 billion from ~~2019.~~2020. Income tax expense ~~decreased~~increased by ~~$4.2~~$2.3 billion to ~~$0.4~~$2.3 billion reflecting ~~lower pre-tax income.~~higher commodity prices. The effective income tax rate of ~~-56~~31 percent compared to 41-33 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~~increased by ~~$3.7~~$2.5 billion to ~~$21.1~~$15.7 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. Proceedings in the Fifth Circuit Court of Appeals are continuing. 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 half of 2021, the Corporation recorded after-tax charges of $43 million, consisting primarily of employee separation costs, from workforce reduction programs in Singapore and Europe associated with the global review of staffing levels. The cash outflows in the first half of 2021 associated with these activities were $224 million.

The Corporation estimates total charges of less than $100 million in 2021 related to planned workforce reduction programs with cash outflows ranging between $400 million and $500 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.

2826

CAPITAL AND EXPLORATION EXPENDITURES


		Third Quarter		First Nine Months			Second Quarter		First Six Months
		2020	2019	2020	2019		2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)		(millions of dollars)
Upstream (including exploration expenses)	Upstream (including exploration expenses)	2,794	5,791	11,497	17,394	Upstream (including exploration expenses)	2,817	3,577	5,174	8,703
Downstream	Downstream	772	1,069	3,059	3,011	Downstream	455	1,053	925	2,287
Chemical	Chemical	564	852	2,041	2,266	Chemical	530	695	836	1,477
Other	Other	3	7	6	17	Other	1	2	1	3
Total	Total	4,133	7,719	16,603	22,688	Total	3,803	5,327	6,936	12,470

Capital and exploration expenditures in the ~~third~~second quarter of ~~2020~~2021 were ~~$4.1~~$3.8 billion, down 4629 percent from the ~~third~~second quarter of ~~2019.~~2020.

~~Capital~~Capital and exploration expenditures in the first ~~nine~~six months of ~~2020~~2021 were ~~$16.6~~$6.9 billion, down 2744 percent from the first ~~nine~~six months of ~~2019 in response to market conditions.~~2020. The Corporation ~~anticipates an investment level~~expects 2021 capital spending to be toward the lower end of ~~no more than $23~~the guidance range of $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;~~ total capital expenditures and mix; ~~earnings;~~cost and expense reductions; emissions intensity and absolute emission reductions; cash ~~flow; capital allocation and~~flow, dividends, debt ~~levels; dividend~~levels, and shareholder returns; business and project plans, timing, costs, capacities, and ~~capacities; resource recoveries~~returns; asset management activities; results from settlement of outstanding derivatives; workforce reductions; the outcome of litigation, tax, and ~~production rates;~~other contingencies; and future accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions, including potential impairment charges resulting from any significant changes in current development plan strategy or divestment plans;of 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,~~foregoing could differ materially due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market 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~~ultimate impacts of COVID-19, including the extent and ~~ultimate impact~~nature of ~~COVID-19~~further outbreaks and the effects of 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~~projects; timely completion of development and other construction projects; changes in law, taxes, or regulation including environmental regulations, trade sanctions, and timely granting of governmental permits; ~~war, trade agreements~~government policies and ~~patterns, shipping blockades or harassment,~~support and market demand for low carbon technologies like carbon capture; war, and other political or security disturbances; opportunities for ~~and regulatory approval of~~ potential investments or ~~divestments; the actions~~divestments and satisfaction of ~~competitors;~~applicable conditions to closing, including regulatory approvals; 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;~~difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; the results of research ~~programs;~~programs and the ability to bring new technologies to commercial scale on a cost-competitive ~~basis, including emission reduction technologies and large-scale hydraulic fracturing projects; general economic conditions including the occurrence and duration of economic recessions;~~basis; and other factors discussed in this report and 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 subsequent Forms 10-Q for the quarters ended March 31, 2020, June 30, 2020, and September 30, 2020. Statements regarding plans or potential outcomes for the fourth quarter 2020 and 2021 also remain subject to completion of ExxonMobil’s annual corporate planning process and approval of the resulting company plan by the Board of Directors, expected in November 2020.10-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~~any government payment transparency ~~reports.~~reports.

2927

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the ~~nine~~six months ended ~~September~~June 30, ~~2020,~~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 ~~September~~June 30, ~~2020.~~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.

3028

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

~~As reported in the Corporation’s Form 10-Q~~ExxonMobil has elected to use a $1 million threshold for the third quarter of 2017, ExxonMobil appealed to the U.S. Court of Appeals for the Fifth Circuit a judgment of the United States District Court for the Southern District of Texas entered on April 26, 2017, in a citizen suit captioned Environment Texas Citizen Lobby, Inc. et al. v. Exxon Mobil Corporation. The U.S. District Court had awarded approximately $20 million in civil penalties, payable to the United States Treasury. In the suit filed in December 2010, Environment Texas Citizen Lobby, Inc. and 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 District Court’s penalty award and remanded the case back to the District Court for furtherdisclosing environmental proceedings. ~~A revised decision in the District Court could occur as early as the fourth quarter of 2020.~~

The State of Texas filed a lawsuit against ExxonMobil Oil Corporation (EMOC) on August 19, 2020, seeking penalties and injunctive relief for 13 alleged unauthorized emissions events at EMOC’s Beaumont Refinery in Texas from 2017 to 2020. The State alleged violations under the Texas Clean Air Act, including the alleged failure of EMOC to timely notify the Texas Commission on Environmental Quality of reportable emissions events and alleged failure to submit a proper certification in its October 26, 2018 permit compliance certification. The lawsuit, captioned State of Texas v. ExxonMobil Oil Corporation, was filed in the 98th Judicial District Court of Travis County, Texas. The State has not quantified the amount of the penalty sought.

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

~~Item 1A. Risk Factors~~

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

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

Issuer Purchase of Equity Securities for Quarter Ended ~~September~~June 30, ~~2020~~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
of Shares that May
Yet Be Purchased
Under the Plans
or Programs

~~July 2020~~April 2021

—

~~August 2020~~May 2021

—

~~September 2020~~June 2021

—

Total

—

(See Note 1)

~~Note 1 - On August 1, 2000,~~During the second 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.

3229

INDEX TO EXHIBITS


Exhibit						Description



~~3(ii)~~10(iii)(c.1)						~~By-Laws, as amended effective March 1, 2020~~ExxonMobil Supplemental Savings Plan. (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)~~(c.1) to the Registrant's report on Form 10-Q for the quarter ended March 31, ~~2020)~~2021).
10(iii)(c.2)						ExxonMobil Supplemental Pension Plan. (incorporated by reference to Exhibit 10(iii)(c.2) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2021).
10(iii)(c.3)						ExxonMobil Additional Payments Plan. (incorporated by reference to Exhibit 10(iii)(c.3) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2021).
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).

3330

EXXON MOBIL CORPORATION

SIGNATURE

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


	EXXON MOBIL CORPORATION
Date: ~~November~~August 4, ~~2020~~2021	By:	/s/ ~~DAVID S. ROSENTHAL~~LEN M. FOX
		~~David S. Rosenthal~~Len M. Fox
		Vice President, Controller and
		Principal Accounting Officer

3431


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


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