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 March 31, ~~2021~~2022

☐ 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 March 31, ~~2021~~2022
Common stock, without par value						~~4,233,538,917~~4,212,543,236

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED MARCH 31, ~~2021~~2022

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Income Three months ended March 31, ~~2021~~2022 and ~~2020~~2021			3

Condensed Consolidated Statement of Comprehensive Income Three months ended March 31, ~~2021~~2022 and ~~2020~~2021			4

Condensed Consolidated Balance Sheet As of March 31, ~~2021~~2022 and December 31, ~~2020~~2021			5

Condensed Consolidated Statement of Cash Flows Three months ended March 31, ~~2021~~2022 and ~~2020~~2021			6

Condensed Consolidated Statement of Changes in Equity Three months ended March 31, ~~2021~~2022 and ~~2020~~2021			7





Notes to Condensed Consolidated Financial Statements			8

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1716

Item 3. Quantitative and Qualitative Disclosures About Market Risk			2426

Item 4. Controls and Procedures			2426


PART II. OTHER INFORMATION

Item 1. Legal Proceedings			2527



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2527

Item 6. Exhibits			2527

Index to Exhibits			2628

Signature			2729

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 March 31,				Three Months Ended March 31,
		2021	2020				2022	2021
Revenues and other income	Revenues and other income				Revenues and other income
Sales and other operating revenue	Sales and other operating revenue	57,552	55,134		Sales and other operating revenue		87,734	57,552
Income from equity affiliates	Income from equity affiliates	1,473	775		Income from equity affiliates		2,538	1,473
Other income	Other income	122	249		Other income		228	122
Total revenues and other income	Total revenues and other income	59,147	56,158		Total revenues and other income		90,500	59,147
Costs and other deductions	Costs and other deductions				Costs and other deductions
Crude oil and product purchases	Crude oil and product purchases	32,601	32,083		Crude oil and product purchases		52,388	32,601
Production and manufacturing expenses	Production and manufacturing expenses	8,062	8,297		Production and manufacturing expenses		10,241	8,062
Selling, general and administrative expenses	Selling, general and administrative expenses	2,428	2,579		Selling, general and administrative expenses		2,409	2,428
Depreciation and depletion		5,004	5,819
Depreciation and depletion (including impairments)					Depreciation and depletion (including impairments)		8,883	5,004
Exploration expenses, including dry holes	Exploration expenses, including dry holes	164	288		Exploration expenses, including dry holes		173	164
Non-service pension and postretirement benefit expense	Non-service pension and postretirement benefit expense	378	269		Non-service pension and postretirement benefit expense		108	378
Interest expense	Interest expense	258	249		Interest expense		188	258
Other taxes and duties	Other taxes and duties	6,660	6,832		Other taxes and duties		7,554	6,660
Total costs and other deductions	Total costs and other deductions	55,555	56,416		Total costs and other deductions		81,944	55,555
Income (Loss) before income taxes		3,592	(258)
Income (loss) before income taxes					Income (loss) before income taxes		8,556	3,592
Income taxes	Income taxes	796	512		Income taxes		2,806	796
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	2,796	(770)		Net income (loss) including noncontrolling interests		5,750	2,796
Net income (loss) attributable to noncontrolling interests	Net income (loss) attributable to noncontrolling interests	66	(160)		Net income (loss) attributable to noncontrolling interests		270	66
Net income (loss) attributable to ExxonMobil	Net income (loss) attributable to ExxonMobil	2,730	(610)		Net income (loss) attributable to ExxonMobil		5,480	2,730

Earnings (Loss) per common share (dollars)		0.64	(0.14)
Earnings (loss) per common share (dollars)					Earnings (loss) per common share (dollars)		1.28	0.64

Earnings (Loss) per common share - assuming dilution (dollars)		0.64	(0.14)
Earnings (loss) per common share - assuming dilution (dollars)					Earnings (loss) per common share - assuming dilution (dollars)		1.28	0.64

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 March 31,				Three Months Ended March 31,
		2021	2020				2022	2021
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	2,796	(770)		Net income (loss) including noncontrolling interests		5,750	2,796
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	149	(5,649)		Foreign exchange translation adjustment		741	149

Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	168	87		Postretirement benefits reserves adjustment (excluding amortization)		105	168
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	378	204		Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs		93	378
Total other comprehensive income (loss)	Total other comprehensive income (loss)	695	(5,358)		Total other comprehensive income (loss)		939	695
Comprehensive income (loss) including noncontrolling interests	Comprehensive income (loss) including noncontrolling interests	3,491	(6,128)		Comprehensive income (loss) including noncontrolling interests		6,689	3,491
Comprehensive income (loss) attributable to noncontrolling interests	Comprehensive income (loss) attributable to noncontrolling interests	146	(672)		Comprehensive income (loss) attributable to noncontrolling interests		359	146
Comprehensive income (loss) attributable to ExxonMobil	Comprehensive income (loss) attributable to ExxonMobil	3,345	(5,456)		Comprehensive income (loss) attributable to ExxonMobil		6,330	3,345

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)
		March 31, 2021	December 31, 2020		March 31, 2022	December 31, 2021
Assets	Assets			Assets
Current assets	Current assets			Current assets
Cash and cash equivalents	Cash and cash equivalents	3,515	4,364	Cash and cash equivalents	11,074	6,802
Notes and accounts receivable – net	Notes and accounts receivable – net	24,755	20,581	Notes and accounts receivable – net	42,142	32,383
Inventories	Inventories			Inventories
Crude oil, products and merchandise	Crude oil, products and merchandise	13,740	14,169	Crude oil, products and merchandise	18,074	14,519
Materials and supplies	Materials and supplies	4,617	4,681	Materials and supplies	4,103	4,261
Other current assets	Other current assets	1,568	1,098	Other current assets	1,862	1,189
Total current assets	Total current assets	48,195	44,893	Total current assets	77,255	59,154
Investments, advances and long-term receivables	Investments, advances and long-term receivables	44,181	43,515	Investments, advances and long-term receivables	46,329	45,195
Property, plant and equipment – net	Property, plant and equipment – net	224,641	227,553	Property, plant and equipment – net	212,773	216,552
Other assets, including intangibles – net	Other assets, including intangibles – net	16,753	16,789	Other assets, including intangibles – net	18,414	18,022
Total assets		333,770	332,750
Total Assets				Total Assets	354,771	338,923

Liabilities	Liabilities			Liabilities
Current liabilities	Current liabilities			Current liabilities
Notes and loans payable	Notes and loans payable	18,185	20,458	Notes and loans payable	4,886	4,276
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	41,017	35,221	Accounts payable and accrued liabilities	63,501	50,766
Income taxes payable	Income taxes payable	948	684	Income taxes payable	3,672	1,601
Total current liabilities	Total current liabilities	60,150	56,363	Total current liabilities	72,059	56,643
Long-term debt	Long-term debt	45,137	47,182	Long-term debt	42,651	43,428
Postretirement benefits reserves	Postretirement benefits reserves	21,835	22,415	Postretirement benefits reserves	18,255	18,430
Deferred income tax liabilities	Deferred income tax liabilities	18,113	18,165	Deferred income tax liabilities	19,533	20,165
Long-term obligations to equity companies	Long-term obligations to equity companies	3,279	3,253	Long-term obligations to equity companies	2,875	2,857
Other long-term obligations	Other long-term obligations	21,155	21,242	Other long-term obligations	22,872	21,717
Total liabilities		169,669	168,620
Total Liabilities				Total Liabilities	178,245	163,240

Commitments and contingencies (Note 3)	Commitments and contingencies (Note 3)	0	0	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)	15,884	15,688	(9,000 million shares authorized, 8,019 million shares issued)	15,879	15,746
Earnings reinvested	Earnings reinvested	382,953	383,943	Earnings reinvested	393,779	392,059
Accumulated other comprehensive income	Accumulated other comprehensive income	(16,090)	(16,705)	Accumulated other comprehensive income	(12,914)	(13,764)
Common stock held in treasury	Common stock held in treasury			Common stock held in treasury
(3,785 million shares at March 31, 2021 and 3,786 million shares at December 31, 2020)		(225,773)	(225,776)
(3,806 million shares at March 31, 2022 and 3,780 million shares at December 31, 2021)				(3,806 million shares at March 31, 2022 and 3,780 million shares at December 31, 2021)	(227,529)	(225,464)
ExxonMobil share of equity	ExxonMobil share of equity	156,974	157,150	ExxonMobil share of equity	169,215	168,577
Noncontrolling interests	Noncontrolling interests	7,127	6,980	Noncontrolling interests	7,311	7,106
Total equity		164,101	164,130
Total liabilities and equity		333,770	332,750
Total Equity				Total Equity	176,526	175,683
Total Liabilities and Equity				Total Liabilities and Equity	354,771	338,923

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

EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
Three Months Ended
March 31,
2021 2020
Cash flows from operating activities
Net income (loss) including noncontrolling interests 2,796 (770)
Depreciation and depletion 5,004 5,819
Noncash inventory adjustment - lower of cost or market 0 2,245
Changes in operational working capital, excluding cash and debt 1,953 (942)
All other items – net (489) (78)
Net cash provided by operating activities 9,264 6,274
Cash flows from investing activities
Additions to property, plant and equipment (2,400) (5,945)
Proceeds from asset sales and returns of investments 307 86
Additional investments and advances (349) (728)
Other investing activities including collection of advances 87 220
Net cash used in investing activities (2,355) (6,367)
Cash flows from financing activities
Additions to long-term debt 0 8,466
Reductions in long-term debt 0 (2)
Additions to short-term debt (1)
5,781 13,128
Reductions in short-term debt (1)
(10,849) (6,500)
Additions/(reductions) in commercial paper and debt with three
months or less maturity
1,003 (2,332)
Cash dividends to ExxonMobil shareholders (3,720) (3,719)
Cash dividends to noncontrolling interests (52) (45)
Changes in noncontrolling interests 53 94
Common stock acquired (1) (305)
Net cash used in financing activities (7,785) 8,785
Effects of exchange rate changes on cash 27 (369)
Increase/(decrease) in cash and cash equivalents (849) 8,323
Cash and cash equivalents at beginning of period 4,364 3,089
Cash and cash equivalents at end of period 3,515 11,412
Supplemental Disclosures
Income taxes paid 855 1,372
Cash interest paid
Included in cash flows from operating activities 405 313
Capitalized, included in cash flows from investing activities 151 155
Total cash interest paid 556 468

~~(1)Includes commercial paper with a maturity greater than three months.~~


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)
	Three Months Ended March 31,
	2022	2021
Cash flows from operating activities
Net income (loss) including noncontrolling interests	5,750	2,796
Depreciation and depletion (including impairments)	8,883	5,004

Changes in operational working capital, excluding cash and debt	1,086	1,953
All other items – net	(931)	(489)
Net cash provided by operating activities	14,788	9,264

Cash flows from investing activities
Additions to property, plant and equipment	(3,911)	(2,400)
Proceeds from asset sales and returns of investments	293	307
Additional investments and advances	(417)	(349)
Other investing activities including collection of advances	90	87
Net cash used in investing activities	(3,945)	(2,355)

Cash flows from financing activities


Additions to short-term debt	—	5,781
Reductions in short-term debt	(2,098)	(10,849)
Additions/(reductions) in debt with three months or less maturity	1,366	1,003

Cash dividends to ExxonMobil shareholders	(3,760)	(3,720)
Cash dividends to noncontrolling interests	(60)	(52)
Changes in noncontrolling interests	(94)	53
Common stock acquired	(2,067)	(1)
Net cash used in financing activities	(6,713)	(7,785)
Effects of exchange rate changes on cash	142	27
Increase/(decrease) in cash and cash equivalents	4,272	(849)
Cash and cash equivalents at beginning of period	6,802	4,364
Cash and cash equivalents at end of period	11,074	3,515

Supplemental Disclosures
Income taxes paid	1,798	855
Cash interest paid
Included in cash flows from operating activities	319	405
Capitalized, included in cash flows from investing activities	187	151
Total cash interest paid	506	556

Noncash right of use assets recorded in exchange for lease liabilities
Operating leases	240	265
Finance leases	656	—

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, 2019		15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938
Amortization of stock-based awards		181	—	—	—	181	—	181
Other		(182)	—	—	—	(182)	157	(25)
Net income (loss) for the period		—	(610)	—	—	(610)	(160)	(770)
Dividends - common shares		—	(3,719)	—	—	(3,719)	(45)	(3,764)
Cumulative effect of accounting change		—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)		—	—	(4,846)	—	(4,846)	(512)	(5,358)
Acquisitions, at cost		—	—	—	(305)	(305)	(63)	(368)
Dispositions		—	—	—	3	3	—	3
Balance as of March 31, 2020		15,636	416,919	(24,339)	(226,137)	182,079	6,664	188,743
										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, 2020	Balance as of December 31, 2020	15,688	383,943	(16,705)	(225,776)	157,150	6,980	164,130	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	202	—	—	—	202	—	202	Amortization of stock-based awards	202	—	—	—	202	—	202
Other	Other	(6)	—	—	—	(6)	53	47	Other	(6)	—	—	—	(6)	53	47
Net income (loss) for the period	Net income (loss) for the period	—	2,730	—	—	2,730	66	2,796	Net income (loss) for the period	—	2,730	—	—	2,730	66	2,796
Dividends - common shares	Dividends - common shares	—	(3,720)	—	—	(3,720)	(52)	(3,772)	Dividends - common shares	—	(3,720)	—	—	(3,720)	(52)	(3,772)

Other comprehensive income (loss)	Other comprehensive income (loss)	—	—	615	—	615	80	695	Other comprehensive income (loss)	—	—	615	—	615	80	695
Acquisitions, at cost	Acquisitions, at cost	—	—	—	(1)	(1)	0	(1)	Acquisitions, at cost	—	—	—	(1)	(1)	—	(1)
Dispositions	Dispositions	—	—	—	4	4	—	4	Dispositions	—	—	—	4	4	—	4
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	Balance as of March 31, 2021	15,884	382,953	(16,090)	(225,773)	156,974	7,127	164,101

Balance as of December 31, 2021									Balance as of December 31, 2021	15,746	392,059	(13,764)	(225,464)	168,577	7,106	175,683
Amortization of stock-based awards									Amortization of stock-based awards	138	—	—	—	138	—	138
Other									Other	(5)	—	—	—	(5)	14	9
Net income (loss) for the period									Net income (loss) for the period	—	5,480	—	—	5,480	270	5,750
Dividends - common shares									Dividends - common shares	—	(3,760)	—	—	(3,760)	(60)	(3,820)

Other comprehensive income (loss)									Other comprehensive income (loss)	—	—	850	—	850	89	939
Acquisitions, at cost									Acquisitions, at cost	—	—	—	(2,067)	(2,067)	(108)	(2,175)
Dispositions									Dispositions	—	—	—	2	2	—	2
Balance as of March 31, 2022									Balance as of March 31, 2022	15,879	393,779	(12,914)	(227,529)	169,215	7,311	176,526


		Three Months Ended March 31, 2021			Three Months Ended March 31, 2020				Three Months Ended March 31, 2022			Three Months Ended March 31, 2021
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	(3,786)	4,233	8,019	(3,785)	4,234	Balance as of December 31	8,019	(3,780)	4,239	8,019	(3,786)	4,233
Acquisitions	Acquisitions	—	—	—	—	(6)	(6)	Acquisitions	—	(26)	(26)	—	—	—
Dispositions	Dispositions	—	1	1	—	—	—	Dispositions	—	—	—	—	1	1
Balance as of March 31	Balance as of March 31	8,019	(3,785)	4,234	8,019	(3,791)	4,228	Balance as of March 31	8,019	(3,806)	4,213	8,019	(3,785)	4,234

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

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's ~~2020~~2021 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~~Russia

~~Crude oil, products~~In early March, in response to Russia’s military action in Ukraine, the Corporation announced that it plans to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and ~~merchandise inventories are carried at~~develop steps to exit the ~~lower~~venture. In light of ~~current market~~this, and given the considerable uncertainties surrounding the ongoing operation and future cash-flow generating capability of Sakhalin, an impairment assessment was required, and management determined that the carrying value ~~or cost, generally determined under~~of the ~~last-in first-out method (LIFO).~~asset group was not recoverable. As a result, the Corporation’s first quarter earnings include after-tax charges of $3.4 billion largely representing the impairment of its operations related to Sakhalin. On a before-tax basis, the charges amounted to $4.6 billion, substantially all of which is reflected in the line captioned “Depreciation and depletion (including impairments)” on the Condensed Consolidated Statement of Income. The Corporation's ~~results~~exit from the project would result in quantities estimated at 150 million oil-equivalent barrels no longer qualifying as proved reserves, which represented less than 1 percent of the Corporation's 18.5 billion oil-equivalent barrels of proved reserves at year-end 2021.

The assessment of fair value required the use of Level 3 inputs and assumptions that are based on the views of a likely market participant. As of March 31, the pool of market participants for Russia-based upstream assets was assessed as extremely limited. In arriving at a fair value for its interest in Sakhalin, the Corporation considered, among other things, the current state of sanctions, the regulatory environment within Russia, the statements and actions of potential market participants, and the range and risks of future cash flows that a market participant might consider. Given these significant uncertainties, the likelihood of a third-party market participant agreeing to engage in a transaction for the ~~first quarter~~Corporation’s interest in Sakhalin, as of ~~2020 included a before-tax charge of $2,777 million, included in "Crude oil and product purchases" on the Statement of Income, from writing down the book value of inventories~~March 31, was judged to their market value at the end of the period. This adjustment, together with a market adjustment to inventory for equity companies included in "Income from equity affiliates," resulted in a $2,096 million after-tax charge to earnings (excluding noncontrolling interests) in the first quarter of 2020. These charges were adjusted throughout 2020 to reflect the current market price of the inventory at the end of each reporting period.be remote.

In the first quarter of 2020, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter, before-tax goodwill impairment charges of $611 million and other impairment charges of $299 million were recognized. The charges related to goodwill impairment were included in “Depreciation and depletion” on the Statement of Income while the charges related to 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 March 31, ~~2021,~~2022, 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 March 31, 2021

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


		March 31, 2022
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	1,152	145	1,297
	Other	830	6,379	7,209
	Total	1,982	6,524	8,506

(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.

109

4. Other Comprehensive Income Information


ExxonMobil Share of Accumulated Other Comprehensive Income	ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Postretirement 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, 2019		(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income(1)		(5,113)	72	(5,041)
Amounts reclassified from accumulated other comprehensive income		0	195	195
Total change in accumulated other comprehensive income		(5,113)	267	(4,846)
Balance as of March 31, 2020		(17,559)	(6,780)	(24,339)

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

Balance as of December 31, 2021					Balance as of December 31, 2021	(11,499)	(2,265)	(13,764)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)					Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	661	102	763
Amounts reclassified from accumulated other comprehensive income					Amounts reclassified from accumulated other comprehensive income	—	87	87
Total change in accumulated other comprehensive income					Total change in accumulated other comprehensive income	661	189	850
Balance as of March 31, 2022					Balance as of March 31, 2022	(10,838)	(2,076)	(12,914)

(1)Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $79 million and $191 million ~~net of taxes.~~in 2022 and 2021, respectively.

Three Months Ended
March 31,

Amounts Reclassified Out of Accumulated Other

Comprehensive Income - Before-tax Income/(Expense)

Amounts Reclassified Out of Accumulated Other

Comprehensive Income - Before-tax Income/(Expense)

Three Months Ended
March 31,

Amounts Reclassified Out of Accumulated Other

Comprehensive Income - Before-tax Income/(Expense)

2021

2020

2022

2021

(millions of dollars)

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)

(484)

(262)

(Statement of Income line: Non-service pension and postretirement benefit expense)

(120)

(484)


		Three Months Ended March 31,
Income Tax (Expense)/Credit For Components of Other Comprehensive Income				Income Tax (Expense)/Credit For Components of Other Comprehensive Income		Three Months Ended March 31,
	Income Tax (Expense)/Credit For Components of Other Comprehensive Income	2021	2020				2022	2021
		(millions of dollars)			(millions of dollars)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	(53)	7	Foreign exchange translation adjustment			(22)	(53)
Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	(58)	(62)	Postretirement benefits reserves adjustment (excluding amortization)			(40)	(58)
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	(106)	(58)	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs			(27)	(106)
Total	Total	(217)	(113)	Total			(89)	(217)

1110

5. Earnings Per Share


		Three Months Ended March 31,			Three Months Ended March 31,
		2021	2020			2022	2021
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)	2,730	(610)	Net income (loss) attributable to ExxonMobil (millions of dollars)		5,480	2,730
Weighted average number of common shares outstanding (millions of shares)	Weighted average number of common shares outstanding (millions of shares)	4,272	4,270	Weighted average number of common shares outstanding (millions of shares)		4,266	4,272
Earnings (Loss) per common share (dollars) (1)		0.64	(0.14)
Earnings (loss) per common share (dollars) (1)				Earnings (loss) per common share (dollars) (1)		1.28	0.64
Dividends paid per common share (dollars)	Dividends paid per common share (dollars)	0.87	0.87	Dividends paid per common share (dollars)		0.88	0.87

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

6. Pension and Other Postretirement Benefits


		Three Months Ended March 31,			Three Months Ended March 31,
		2021	2020			2022	2021
		(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	225	235	Service cost		179	225
Interest cost	Interest cost	139	177	Interest cost		129	139
Expected return on plan assets	Expected return on plan assets	(180)	(175)	Expected return on plan assets		(140)	(180)
Amortization of actuarial loss/(gain) and prior service cost		55	79
Amortization of actuarial loss/(gain)				Amortization of actuarial loss/(gain)		39	61
Amortization of prior service cost				Amortization of prior service cost		(7)	(6)
Net pension enhancement and curtailment/settlement cost	Net pension enhancement and curtailment/settlement cost	298	52	Net pension enhancement and curtailment/settlement cost		37	298
Net benefit cost	Net benefit cost	537	368	Net benefit cost		237	537

Pension Benefits - Non-U.S.	Pension Benefits - Non-U.S.			Pension Benefits - Non-U.S.
Service cost	Service cost	195	175	Service cost		150	195
Interest cost	Interest cost	130	161	Interest cost		160	130
Expected return on plan assets	Expected return on plan assets	(258)	(222)	Expected return on plan assets		(213)	(258)
Amortization of actuarial loss/(gain) and prior service cost		123	119
Amortization of actuarial loss/(gain)				Amortization of actuarial loss/(gain)		47	108
Amortization of prior service cost				Amortization of prior service cost		12	15
Net pension enhancement and curtailment/settlement cost	Net pension enhancement and curtailment/settlement cost	12	0	Net pension enhancement and curtailment/settlement cost		—	12
Net benefit cost	Net benefit cost	202	233	Net benefit cost		156	202

Other Postretirement Benefits	Other Postretirement Benefits			Other Postretirement Benefits
Service cost	Service cost	49	45	Service cost		40	49
Interest cost	Interest cost	56	70	Interest cost		55	56
Expected return on plan assets	Expected return on plan assets	(5)	(4)	Expected return on plan assets		(3)	(5)
Amortization of actuarial loss/(gain) and prior service cost		8	12
Amortization of actuarial loss/(gain)				Amortization of actuarial loss/(gain)		3	19
Amortization of prior service cost				Amortization of prior service cost		(11)	(11)
Net benefit cost	Net benefit cost	108	123	Net benefit cost		84	108

1211

7. Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at March 31, ~~2021,~~2022 and December 31, ~~2020,~~2021, and the related hierarchy level for the fair value measurement iswas as follows:


			At March 31, 2021										March 31, 2022
			(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)	1,338	264	—	1,602	(1,332)	(62)	—	208		Derivative assets (1)	6,886	2,890	—	9,776	(7,888)	(60)	—	1,828
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(6)	—	3,115	6,083	9,198	—	—	(233)	8,965		from equity companies (2)(6)	—	2,631	5,491	8,122	—	—	435	8,557
		Other long-term										Other long-term
		financial assets (3)	1,157	—	1,046	2,203	—	—	120	2,323		financial assets (3)	1,152	—	1,049	2,201	—	—	165	2,366
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	1,389	329	—	1,718	(1,332)	(113)	—	273		Derivative liabilities (4)	7,459	3,940	—	11,399	(7,888)	(632)	—	2,879
		Long-term debt (5)	45,594	111	4	45,709	—	—	(2,236)	43,473		Long-term debt (5)	40,367	76	2	40,445	—	—	(140)	40,305
		Long-term obligations										Long-term obligations
		to equity companies (6)	—	—	3,567	3,567	—	—	(288)	3,279		to equity companies (6)	—	—	2,969	2,969	—	—	(94)	2,875
		Other long-term										Other long-term
		financial liabilities (7)	—	—	979	979	—	—	55	1,034		financial liabilities (7)	—	—	886	886	—	—	53	939


			At December 31, 2020										December 31, 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)	1,247	194	—	1,441	(1,282)	(6)	—	153		Derivative assets (1)	1,422	1,523	—	2,945	(1,930)	(28)	—	987
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812		from equity companies (2)(6)	—	3,076	5,373	8,449	—	—	(123)	8,326
		Other long-term										Other long-term
		financial assets (3)	1,235	—	944	2,179	—	—	125	2,304		financial assets (3)	1,134	—	1,058	2,192	—	—	181	2,373
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213		Derivative liabilities (4)	1,701	2,594	—	4,295	(1,930)	(306)	—	2,059
		Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502		Long-term debt (5)	44,454	88	3	44,545	—	—	(2,878)	41,667
		Long-term obligations										Long-term obligations
		to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253		to equity companies (6)	—	—	3,084	3,084	—	—	(227)	2,857
		Other long-term										Other long-term
		financial liabilities (7)	—	—	964	964	—	—	44	1,008		financial liabilities (7)	—	—	902	902	—	—	58	960

(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)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 March 31, ~~2021,~~2022 and December 31, ~~2020,~~2021, respectively, the Corporation had ~~$447~~$1,347 million and ~~$504~~$641 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

1312

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 March 31, ~~2021,~~2022, the Corporation has designated ~~$5.3~~$5.0 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 $10.7 billion and undrawn long-term committed lines of credit of $0.6 billion as of first quarter 2022.

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.~~to generate returns from trading. 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 March 31, ~~2021,~~2022 and December 31, ~~2020,~~2021, or results of operations for the periods ended March 31, ~~2021,~~2022 and ~~2020.~~2021.

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 March 31, ~~2021,~~2022 and December 31, ~~2020,~~2021, was as follows:


		March 31,	December 31,		March 31,	December 31,
		2021	2020		2022	2021
		(millions)			(millions)
Crude oil (barrels)	Crude oil (barrels)	71	40	Crude oil (barrels)	91	82
Petroleum products (barrels)	Petroleum products (barrels)	(53)	(46)	Petroleum products (barrels)	(37)	(48)
Natural Gas (MMBTUs)		(532)	(500)
Natural gas (MMBTUs)				Natural gas (MMBTUs)	(101)	(115)

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 March 31,			Three Months Ended March 31,
		2021	2020			2022	2021
		(millions of dollars)			(millions of dollars)
Sales and other operating revenue	Sales and other operating revenue	(512)	1,236	Sales and other operating revenue		(2,535)	(512)
Crude oil and product purchases	Crude oil and product purchases	1	(352)	Crude oil and product purchases		(26)	1
Total	Total	(511)	884	Total		(2,561)	(511)

1413

8. Disclosures about Segments and Related Information


		Three Months Ended March 31,			Three Months Ended March 31,
		2021	2020				2022	2021
Earnings (Loss) After Income Tax	Earnings (Loss) After Income Tax	(millions of dollars)		Earnings (Loss) After Income Tax	(millions of dollars)
Upstream	Upstream					Upstream
United States	United States	363	(704)			United States	2,376	363
Non-U.S.		2,191	1,240
Non-U.S. (1)						Non-U.S. (1)	2,112	2,191
Downstream	Downstream					Downstream
United States	United States	(113)	(101)			United States	685	(113)
Non-U.S.	Non-U.S.	(277)	(510)			Non-U.S.	(353)	(277)
Chemical	Chemical					Chemical
United States	United States	715	288			United States	819	715
Non-U.S.	Non-U.S.	700	(144)			Non-U.S.	535	700
Corporate and financing		(849)	(679)
Corporate and Financing (1)						Corporate and Financing (1)	(694)	(849)
Corporate total	Corporate total	2,730	(610)			Corporate total	5,480	2,730

(1) Results for 2022 include charges of $3.3 billion in non-U.S. Upstream and $0.1 billion in Corporate and Financing associated with the Corporation's interest in Sakhalin-1. (See Note 2 to Condensed Consolidated Financial Statements)						(1) Results for 2022 include charges of $3.3 billion in non-U.S. Upstream and $0.1 billion in Corporate and Financing associated with the Corporation's interest in Sakhalin-1. (See Note 2 to Condensed Consolidated Financial Statements)

Sales and Other Operating Revenue	Sales and Other Operating Revenue								Sales and Other Operating Revenue
Upstream	Upstream					Upstream
United States	United States	1,885	1,777			United States	2,656	1,885
Non-U.S.	Non-U.S.	3,094	2,567			Non-U.S.	6,343	3,094
Downstream	Downstream					Downstream
United States	United States	16,078	15,384			United States	25,356	16,078
Non-U.S.	Non-U.S.	28,613	29,304			Non-U.S.	43,609	28,613
Chemical	Chemical					Chemical
United States	United States	3,091	2,296			United States	3,982	3,091
Non-U.S.	Non-U.S.	4,887	3,800			Non-U.S.	5,781	4,887
Corporate and financing		(96)	6
Corporate and Financing						Corporate and Financing	7	(96)
Corporate total	Corporate total	57,552	55,134			Corporate total	87,734	57,552

Intersegment Revenue	Intersegment Revenue					Intersegment Revenue
Upstream	Upstream					Upstream
United States	United States	3,323	2,273			United States	6,191	3,323
Non-U.S.	Non-U.S.	6,817	6,387			Non-U.S.	10,835	6,817
Downstream	Downstream					Downstream
United States	United States	3,953	3,952			United States	8,261	3,953
Non-U.S.	Non-U.S.	5,381	5,124			Non-U.S.	9,503	5,381
Chemical	Chemical					Chemical
United States	United States	1,950	1,766			United States	2,863	1,950
Non-U.S.	Non-U.S.	1,231	1,263			Non-U.S.	2,213	1,231
Corporate and financing		57	55
Corporate and Financing						Corporate and Financing	57	57

1514


Geographic	Geographic			Geographic
		Three Months Ended March 31,			Three Months Ended March 31,
Sales and Other Operating Revenue	Sales and Other Operating Revenue	2021	2020	Sales and Other Operating Revenue		2022	2021
		(millions of dollars)			(millions of dollars)
United States	United States	21,054	19,457	United States		31,994	21,054
Non-U.S.	Non-U.S.	36,498	35,677	Non-U.S.		55,740	36,498
Total	Total	57,552	55,134	Total		87,734	57,552

Significant Non-U.S. revenue sources include: (1)	Significant Non-U.S. revenue sources include: (1)			Significant Non-U.S. revenue sources include: (1)
United Kingdom				United Kingdom		7,548	2,943
Canada	Canada	4,258	3,823	Canada		6,995	4,258
France				France		4,356	2,782
Singapore	Singapore	3,435	2,616	Singapore		4,322	3,435
United Kingdom		2,943	3,691
France		2,782	2,589
Belgium	Belgium	1,989	1,889	Belgium		2,836	1,989
Italy	Italy	1,865	1,958	Italy		2,836	1,865
Australia		1,729	1,654

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

9. ~~Sale of United Kingdom Assets~~Divestment Activities

~~ExxonMobil~~In February 2022, the Corporation signed an agreement with ~~HitecVision, through its wholly-owned portfolio company NEO~~Seplat Energy Offshore Limited for the sale of ~~most of its non-operated upstream assets in~~Mobil Producing Nigeria Unlimited. The agreement is subject to certain conditions precedent and government approvals. If these are attained, the ~~United Kingdom central and northern North Sea for more than $1 billion. The~~ transaction iswould be expected to close ~~near~~no earlier than mid-year ~~2021, subject to standard conditions precedent, including regulatory and third-party approvals.~~2022. 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 for further adjustments based on commodity prices and production levels. Assuming a mid-2022 closing date and based on currently available information, the Corporation expects to recognize a loss of approximately ~~$0.3 billion in contingent payments, based on production level~~$500 million when and ~~commodity prices. Estimated total cash flow from~~if the potential divestment ~~will range from $0.7 billion~~ultimately meets held-for-sale criteria under ASC 360, following the resolution of certain conditions precedent noted above.

Following the end of the first quarter, the Corporation executed an agreement for the sale of ExxonMobil Exploration and Production Romania, consisting of certain unproved Upstream assets, to ~~$1.2 billion, of which $0.7 billion~~Romgaz S.A. The transaction is anticipated to ~~$0.8 billion is expected in 2021~~close mid-year 2022, and the ~~remainder in future years. The~~ Corporation expects to recognize a gain ~~at closing. Estimated gain and net cash flow could change due to market factors and timing~~on the sale of ~~close~~.approximately $300 million.

~~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 first quarter of 2021, the Corporation recorded before-tax charges of $39 million, consisting primarily of employee separation costs, from workforce reductions in Singapore and Europe associated with the global review of staffing levels. These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.

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

The following table summarizes the reserves and charges related to the workforce reduction programs associated with the global review of staffing levels, which are recorded in “Accounts payable and accrued liabilities.”


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

1615

EXXON MOBIL CORPORATION

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

~~In early 2020,~~During the ~~balance of~~COVID-19 pandemic, industry investment to maintain and increase production capacity was restrained to preserve capital, resulting in underinvestment and supply ~~and~~tightness as demand for petroleum and petrochemical products ~~experienced two significant disruptive effects. On~~recovered. Across late 2021 and early 2022, this dynamic, along with supply chain constraints, and a continuation of demand recovery led to a steady increase in oil and natural gas prices. In the ~~demand side,~~first quarter of 2022, tightness in the ~~COVID-19 pandemic spread rapidly through most areas~~oil and natural gas markets was further exacerbated by Russia’s invasion of Ukraine and subsequent sanctions imposed upon business and other activities in Russia. The price of Brent crude oil and certain regional natural gas indicators increased to levels not seen for several years. Additionally, by the end of the ~~world resulting~~first quarter, refining margins improved to levels above the 10-year range, and the tight supply and demand balance is expected to persist.

In early March, in ~~substantial reductions~~response to Russia’s military action in ~~consumer~~Ukraine, the Corporation announced that it plans to discontinue operations on the Sakhalin-1 project (“Sakhalin”) and ~~business activity~~develop steps to exit the venture. The Corporation remains focused on protecting the safety of employees, operations, and ~~significantly reduced demand~~the environment. The Corporation is complying with all applicable laws and sanctions and is currently engaged in transitioning Sakhalin-1 operating activities to another party.

The Corporation’s first quarter results include after-tax charges of $3.4 billion largely representing the impairment of its operations related to Sakhalin (see Note 2 to Condensed Consolidated Financial Statements). Efforts to transition operatorship to a third party and exit the venture is expected to result in limited hydrocarbon sales and cash flows for ~~crude~~the Corporation’s account during the second quarter of 2022, and none following that period. For reference, excluding the impact of impairments and other charges, after-tax earnings related to the Corporation’s interest in Sakhalin in the first quarter were approximately $0.2 billion, and combined oil ~~natural~~and gas ~~and petroleum products. This reduction~~production was approximately 65 thousand oil-equivalent barrels per day. The Corporation's exit from the project would result in ~~demand coincided with announcements of increased production in certain key oil-producing countries~~quantities estimated at 150 million oil-equivalent barrels no longer qualifying as proved reserves, which ~~led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.~~

~~While demand for petroleum and petrochemical products has rebounded, the lingering effects~~represented less than one percent of the ~~weak 2020 business environment continued to have a negative impact on financial results in 2021 when compared to periods prior to the pandemic. Signs~~Corporation's 18.5 billion oil-equivalent barrels of improvement are emerging with stronger prices and margins across all businesses when compared to the fourth quarter 2020. However, Downstream margins remain lower when compared to historical levels over the last decade.

proved reserves at year-end 2021.

FUNCTIONAL EARNINGS SUMMARY

First Three Months
Earnings (Loss) (U.S. GAAP) 2021 2020
(millions of dollars)
Upstream
United States 363 (704)
Non-U.S. 2,191 1,240
Downstream
United States (113) (101)
Non-U.S. (277) (510)
Chemical
United States 715 288
Non-U.S. 700 (144)
Corporate and financing (849) (679)
Net income (loss) attributable to ExxonMobil (U.S. GAAP) 2,730 (610)
Earnings (Loss) per common share (dollars)
0.64 (0.14)
Earnings (Loss) per common share - assuming dilution (dollars)
0.64 (0.14)
Earnings (loss) excluding Identified Items, are earnings (loss) excluding individually significant non-operational events with an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings (loss) impact of an Identified Item for an individual segment in a given quarter may be less than $250 million when the item impacts several segments or several periods. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Earnings (loss) excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income (loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP.


Three Months Ended March 31, 2022	Upstream		Downstream		Chemical		Corporate and Financing	Total
	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.
	(millions of dollars)
Earnings (loss) (U.S. GAAP)	2,376	2,112	685	(353)	819	535	(694)	5,480
Identified Items
Impairments	—	(2,877)	—	—	—	—	(98)	(2,975)
Other - Russia impacts	—	(378)	—	—	—	—	—	(378)
Earnings (loss) excluding Identified Items	2,376	5,367	685	(353)	819	535	(596)	8,833


Three Months Ended March 31, 2021	Upstream		Downstream		Chemical		Corporate and Financing	Total
	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.
	(millions of dollars)
Earnings (loss) (U.S. GAAP)	363	2,191	(113)	(277)	715	700	(849)	2,730
Identified Items
Severance charges	—	—	—	—	—	—	(31)	(31)
Earnings (loss) excluding Identified Items	363	2,191	(113)	(277)	715	700	(818)	2,761

References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S. GAAP) from the ~~consolidated income statement.~~Consolidated Statement of Income. Unless otherwise indicated, references to earnings (loss), Upstream, Downstream,

Chemical and Corporate and ~~financing~~Financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

REVIEW OF FIRST QUARTER ~~2021~~2022 RESULTS

ExxonMobil’s first quarter ~~2021~~2022 earnings were ~~$2.7~~$5.5 billion, or ~~$0.64~~$1.28 per diluted share, compared with ~~a loss~~earnings of ~~$0.6~~$2.7 billion a year earlier. The increase in earnings was ~~primarily the result of the absence of prior year unfavorable non-operational impacts, including an inventory write-down and impairments;~~driven by higher Upstream realizations and ~~Chemical margins; and lower expenses. These impacts were~~Downstream margins partly offset by ~~lower Downstream margins, winter storm impacts, unfavorable foreign exchange impacts, and lower Upstream volumes.~~charges related to the company's Russia Sakhalin-1 operation.

Oil-equivalent production was ~~3.8~~3.7 million barrels per day, down 63 percent from the prior year. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production was down 2 percent from the prior year.

The Corporation distributed ~~$3.7~~$3.8 billion in dividends to ~~shareholders.~~

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

shareholders and bought back $2.1 billion of common stock.

UPSTREAM

Upstream ~~earnings were $2,554 million in the first quarter of 2021, compared with earnings of $536 million in the first quarter of 2020.~~Financial Results


	Three Months Ended March 31,
	2022	2021
Earnings (loss) (U.S. GAAP)	(millions of dollars)
United States	2,376	363
Non-U.S.	2,112	2,191
Total	4,488	2,554
Identified Items (1)
United States	—	—
Non-U.S.	(3,255)	—
Total	(3,255)	—
Earnings (loss) excluding Identified Items (1)
United States	2,376	363
Non-U.S.	5,367	2,191
Total	7,743	2,554

•

Upstream Earnings Factor Analysis

(millions of dollars)

Price~~Realizations~~– Higher realizations increased earnings by ~~$1,310~~$5,930 million ~~driven by higher liquids~~as average realizations ~~of $1,390 million.~~for crude oil increased 68%, while natural gas realizations increased 137%.

•Volume – Unfavorable volume and mix effects ~~reduced~~decreased earnings by ~~$370~~$810 million reflecting impacts from the reduced Groningen production limit, higher downtime including the effects of weather, and lower entitlements due to ~~lower liquids sales volumes of $390 million~~prices, partly offset by ~~gas volume mix~~growth in the Permian Basin and ~~timing of $20 million.~~Guyana.

•Other – All other items increased earnings by ~~$1,080~~$70 million.

Identified Items (1) –1Q 2022 $(3,255) million loss as a result of the absence of prior year unfavorable non-operational impacts associated with impairments of $360 million and an inventory write down of $260 million, and lower expenses of $700 million were partly offset by unfavorable foreign exchange impacts of $220 million.company's decision to discontinue operations at the Russia Sakhalin-1 project.

•(1)~~The unfavorable impact~~ Refer to Functional Earnings Summary for definition of ~~the winter storm on Upstream~~Identified Items and earnings ~~included in the factors above, was $240 million.~~(loss) excluding Identified Items.

•
~~U.S.~~

Upstream ~~earnings were $363 million, up $1,067 million from the prior year quarter.~~Operational Results

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


	Three Months Ended March 31,
	2022	2021
Production of crude oil, natural gas liquids, bitumen and synthetic oil
Net production	(thousands of barrels daily)
United States	753	665
Canada/Other Americas	474	575
Europe	4	35
Africa	257	253
Asia	738	691
Australia/Oceania	40	39
Worldwide	2,266	2,258

Natural gas production available for sale
Net production	(millions of cubic feet daily)
United States	2,777	2,767
Canada/Other Americas	182	216
Europe	770	1,403
Africa	58	24
Asia	3,340	3,599
Australia/Oceania	1,325	1,164
Worldwide	8,452	9,173

	(thousands of oil-equivalent barrels daily)
Oil-equivalent production (1)	3,675	3,787

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

•~~On an oil-equivalent basis, production decreased 6 percent from the first quarter of 2020.~~1Q 2022 versus 1Q 2021

•Liquids production ~~totaled~~– 2.3 million barrels per day ~~down 222,000~~increased 8 thousand barrels per day from 2021, reflecting easing government mandated curtailments, growth in the ~~impacts~~Permian Basin and Guyana, partly offset by higher downtime including the effects of ~~government mandates,~~weather, lower entitlements due to higher prices, and ~~the winter storm.~~divestment impacts.

•Natural gas production ~~was 9.2~~available for sale – 8.5 billion cubic feet per day ~~down 223~~decreased 721 million cubic feet per day from 2021, reflecting impacts from the ~~impacts of decline, higher downtime, the winter storm, and the~~reduced Groningen production limit, ~~partly offset by higher demand~~divestments, and ~~project growth.~~entitlements.

First Quarter
Upstream additional information (thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)

2020 4,046
Entitlements - Net Interest (3)
Entitlements - Price / Spend / Other (51)
Government Mandates (124)
Divestments (15)
Growth / Other (66)
2021 3,787
Upstream Additional Information


												Three Months Ended March 31
												(thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)
2021												3,787
Entitlements - Net Interest												(30)
Entitlements - Price / Spend / Other												(44)
Government Mandates												113
Divestments												(62)
Other												(89)
2022												3,675

(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.

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

DOWNSTREAM

Downstream ~~results were a loss~~Financial Results


	Three Months Ended March 31,
	2022	2021
Earnings (loss) (U.S. GAAP)	(millions of dollars)
United States	685	(113)
Non-U.S.	(353)	(277)
Total	332	(390)




Earnings (loss) excluding Identified Items (1)
United States	685	(113)
Non-U.S.	(353)	(277)
Total	332	(390)

(1) Refer to Functional Earnings Summary for definition of ~~$390 million in the first quarter of 2021, a $221 million improvement from the first quarter of 2020.~~

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

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

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

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

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

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

•~~Petroleum product sales of 4.9 million barrels per day were 406,000 barrels per day lower than the prior year quarter.~~(loss) excluding Identified Items.

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

(millions of dollars)

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

•Margins– Higher margins increased earnings by ~~$620~~$310 million. Improved refining margins were partially offset by unfavorable unsettled derivative impacts.

•Volume – Favorable volume and mix effects increased earnings by ~~$30 million.~~

•~~All other items increased earnings by $620~~$180 million, ~~mainly~~primarily due to the absence of prior year ~~unfavorable non-operational~~reliability impacts ~~associated with an inventory write-down of~~from winter storm Uri.

Other – All other items increased earnings by $230 million, ~~and impairments~~driven by the absence of ~~$90 million, lower expenses of $240 million, and favorable foreign exchange~~terminal conversion impacts ~~of $60 million.~~

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

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

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

•

Downstream Operational Results


	Three Months Ended March 31,
	2022	2021
Refinery throughput	(thousands of barrels daily)
United States	1,685	1,532
Canada	399	364
Europe	1,193	1,153
Asia Pacific	537	545
Other	169	157
Worldwide	3,983	3,751

Petroleum product sales (1)
United States	2,256	2,077
Canada	442	409
Europe	1,345	1,272
Asia Pacific	644	665
Other	471	458
Worldwide	5,158	4,881
Gasoline, naphthas	2,114	1,996
Heating oils, kerosene, diesel oils	1,722	1,692
Aviation fuels	289	183
Heavy fuels	249	257
Specialty petroleum products	784	753
Worldwide	5,158	4,881

(1) Data reported net of purchases/sales contracts with the same counterparty.

CHEMICAL

Chemical Financial Results


	Three Months Ended March 31,
	2022	2021
Earnings (loss) (U.S. GAAP)	(millions of dollars)
United States	819	715
Non-U.S.	535	700
Total	1,354	1,415




Earnings (loss) excluding Identified Items (2)
United States	819	715
Non-U.S.	535	700
Total	1,354	1,415

~~First quarter prime product sales~~(2) Refer to Functional Earnings Summary for definition of ~~6.4 million metric tons were 209,000 metric tons higher than the prior year quarter.~~Identified Items and earnings (loss) excluding Identified Items.

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

Chemical Earnings Factor Analysis

(millions of dollars)

Margins– Lower margins decreased earnings by $20 million.

Volume – Favorable volume and mix effects increased earnings by $70 million, primarily due to higher U.S. sales.

Other – All other items decreased earnings by $110 million, primarily driven by increased project and planned maintenance spend.

Chemical Operational Results


	Three Months Ended March 31,
	2022	2021
Chemical prime product sales (1)	(thousands of metric tons)
United States	2,704	2,190
Non-U.S.	4,033	4,256
Worldwide	6,737	6,446

(1) Data reported net of purchases/sales contracts with the same counterparty.

CORPORATE AND FINANCING

Corporate and Financing Financial Results


	Three Months Ended March 31,
	2022	2021
	(millions of dollars)
Earnings (loss) (U.S. GAAP)	(694)	(849)
Identified Items (1)	(98)	(31)
Earnings (loss) excluding Identified Items (1)	(596)	(818)

Corporate and ~~financing~~Financing expenses were ~~$849~~$694 million for the first quarter of ~~2021, up $170~~2022, down $155 million from the first quarter of ~~2020,~~2021, reflecting ~~higher retirement-related expenses.~~lower pension-related corporate costs and the absence of prior year severance charges, partly offset by Russia Sakhalin impacts.

(1) Refer to Functional Earnings Summary for definition of Identified Items and earnings (loss) excluding Identified Items.

2022

LIQUIDITY AND CAPITAL RESOURCES


		First Three Months				Three Months Ended March 31,
			2021	2020			2022	2021
		(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		9,264	6,274	Operating activities		14,788	9,264
Investing activities	Investing activities		(2,355)	(6,367)	Investing activities		(3,945)	(2,355)
Financing activities	Financing activities		(7,785)	8,785	Financing activities		(6,713)	(7,785)
Effect of exchange rate changes	Effect of exchange rate changes		27	(369)	Effect of exchange rate changes		142	27
Increase/(decrease) in cash and cash equivalents	Increase/(decrease) in cash and cash equivalents		(849)	8,323	Increase/(decrease) in cash and cash equivalents		4,272	(849)

Cash and cash equivalents (at end of period)	Cash and cash equivalents (at end of period)		3,515	11,412	Cash and cash equivalents (at end of period)		11,074	3,515

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)		9,264	6,274	Net cash provided by operating activities (U.S. GAAP)		14,788	9,264
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		307	86	Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments		293	307
Cash flow from operations and asset sales	Cash flow from operations and asset sales		9,571	6,360	Cash flow from operations and asset sales		15,081	9,571

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 first quarter of ~~2021~~2022 was ~~$9.6~~$15.1 billion, an increase of ~~$3.2~~$5.5 billion from the comparable ~~2020~~2021 period primarily reflecting higher earnings.

Cash provided by operating activities totaled ~~$9.3~~$14.8 billion for the first three months of ~~2021, $3.0~~2022, $5.5 billion higher than ~~2020.~~2021. Net income including noncontrolling interests was ~~$2.8~~$5.8 billion, an increase of ~~$3.6~~$3.0 billion from the prior year period. The ~~adjustments~~adjustment for the noncash provision of ~~$5.0~~$8.9 billion for depreciation and depletion was ~~down $0.8~~up $3.9 billion from ~~2020.~~2021. Changes in operational working capital were a contribution of ~~$2.0~~$1.1 billion, compared to a ~~reduction~~contribution of ~~$0.9~~$2.0 billion in the prior year period. All other items net decreased cash flows by ~~$0.5~~$0.9 billion in ~~2021~~2022 versus a reduction of ~~$0.1~~$0.5 billion in ~~2020.~~2021. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first three months of ~~2021~~2022 used net cash of ~~$2.4~~$3.9 billion, ~~a decrease~~an increase of ~~$4.0~~$1.6 billion compared to the prior year. Spending for additions to property, plant and equipment of ~~$2.4~~$3.9 billion was ~~$3.5~~$1.5 billion ~~lower~~higher than ~~2020.~~2021. Proceeds from asset sales of $0.3 billion were ~~$0.2 billion higher than~~essentially flat with the prior year. Net investments and advances ~~decreased $0.2~~increased $0.1 billion to $0.3 billion.

Net cash used byin financing activities was ~~$7.8~~$6.7 billion in the first three months of ~~2021,~~2022, including ~~$4.1~~$2.1 billion for the purchase of ~~debt repayments.~~26.2 million shares of ExxonMobil stock, as the Corporation initiated its previously announced buyback program in the quarter. This compares to net cash ~~provided by~~used in financing activities of ~~$8.8~~$7.8 billion in the prior year, ~~due~~reflecting long-term debt repayments of $4.1 billion during the first three months of 2021. On April 29, 2022, the company announced that it is increasing its share repurchase program from up to $10 billion to a ~~long-term debt issuance~~total of up to $30 billion through 2023. The stock repurchase program does not obligate the company to acquire any particular amount of common stock, and it may be discontinued or resumed at any time. The timing and amount of shares actually repurchased in the ~~first quarter of 2020.~~future will depend on market, business, and other factors.

Total debt at the end of the first quarter of ~~2021~~2022 was ~~$63.3~~$47.5 billion compared to ~~$67.6~~$47.7 billion at year-end ~~2020.~~2021. The Corporation's debt to total capital ratio was ~~27.8~~21.2 percent at the end of the first quarter of ~~2021~~2022 compared to ~~29.2~~21.4 percent at year-end ~~2020.~~2021. The net debt to capital ratio was 17.1 percent at the end of the first quarter, a decrease of 1.8 percentage points from year-end 2021. The Corporation's capital allocation priorities continue to be investing in advantaged projects, strengthening the balance sheet and paying a reliable dividend.

The Corporation has access to significant capacity of long-term and short-term liquidity. ~~Commercial~~In addition to cash balances, commercial paper continues to provide short-term liquidity, and is reflected in "Notes and loans payable" on the Consolidated Balance Sheet. Cash and cash equivalents was ~~$3.5~~$11.1 billion at the end of the first quarter of ~~2021.~~2022. The Corporation had undrawn short-term committed lines of credit of ~~$11.2~~$10.7 billion and undrawn long-term committed lines of credit of $0.6 billion as of first quarter ~~2021.~~2022.

The Corporation distributed a total of ~~$3.7~~$3.8 billion to shareholders in the first three months of ~~2021~~2022 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

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


	Three Months Ended March 31,
		2022		2021
	(millions of dollars)
Income taxes		2,806		796
Effective income tax rate		40	%	33	%
Total other taxes and duties (1)		8,449		7,283
Total		11,255		8,079

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

Total taxes were ~~$8.1~~$11.3 billion for the first quarter of ~~2021,~~2022, an increase of ~~$0.1~~$3.2 billion from ~~2020.~~2021. Income tax expense was ~~$0.8~~$2.8 billion compared to ~~$0.5~~$0.8 billion in the prior year reflecting higher commodity prices. The effective income tax rate of 3340 percent compared to ~~481~~33 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax ~~rates and the absence of prior year inventory valuation and impairment impacts.~~rates. Total other taxes and duties ~~decreased~~increased by ~~$0.2~~$1.2 billion to ~~$7.3~~$8.4 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. 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~~and the government have appealed the District Court's rulings to the U.S. Court of ~~appeal regarding the substantive issues to~~Appeals for the Fifth Circuit ~~Court of Appeals on April 9, 2021. The government~~(Fifth Circuit). Proceedings in the Fifth Circuit are continuing.

On March 4, 2022, the Corporation also filed a ~~notice of appeal regarding the penalty issue~~refund suit for tax years 2010-2011 in District Court with respect to the ~~same court on April 19, 2021.~~positions at issue for those years. The Corporation has not recognized asserted penalties for 2010-2011 as an expense because the Corporation does not expect the penalties to be sustained under applicable law. Unfavorable resolution of all positions at issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.

~~RESTRUCTURING ACTIVITIES~~

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

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

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

2224

CAPITAL AND EXPLORATION EXPENDITURES


		First Three Months				Three Months Ended March 31,
			2021	2020			2022	2021
		(millions of dollars)				(millions of dollars)
Upstream (including exploration expenses)	Upstream (including exploration expenses)		2,357	5,126	Upstream (including exploration expenses)		3,879	2,357
Downstream	Downstream		470	1,234	Downstream		577	470
Chemical	Chemical		306	782	Chemical		448	306
Other	Other		—	1	Other		—	—
Total	Total		3,133	7,143	Total		4,904	3,133

Capital and exploration expenditures in the first quarter of ~~2021~~2022 were ~~$3.1~~$4.9 billion, ~~down 56~~up 57 percent from the first quarter of ~~2020.~~2021. The Corporation ~~expects 2021 capital spending~~plans to beinvest in the range of ~~$16~~$21 billion to ~~$19 billion.~~$24 billion in 2022. 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,~~outlooks; projections; descriptions of strategic, operating, and financial plans and ~~objectives,~~objectives; statements of future ambitions and plans; and other statements of future events or conditions, are forward-looking statements. Actual future results, including financial and operating performance; ~~planned~~total capital expenditures and ~~cash operating expense~~mix, including allocations of capital to low carbon solutions; cost reductions and efficiency gains, including the ability to meet or exceed announced cost and expense reduction objectives; ~~plans to reduce future emissions intensity and the expected resulting absolute emission reductions; progressing carbon capture projects and results; total capital expenditures and mix;~~ cash flow, ~~dividend~~dividends and shareholder ~~returns;~~returns, including the timing and amounts of share repurchases; future debt levels and credit ratings; business and project plans, timing, costs, capacities and ~~capacities;~~returns; and resource recoveries and production ~~rates; and accounting and financial reporting effects resulting from market developments and ExxonMobil’s responsive actions,~~rates could differ materially due to a number of factors. These include ~~the continuity of our board of directors and their strategic oversight;~~ global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and ~~differentials; the impact~~differentials for our products; variable impacts of ~~company actions to protect the health~~trading activities on our margins and ~~safety of employees, vendors, customers, and communities;~~results each quarter; actions of competitors and commercial counterparties; the outcome of commercial negotiations, including final agreed terms and conditions; the ability to access ~~short- and long-term~~ debt ~~markets on a timely and affordable basis;~~markets; the ~~severity, length and~~ ultimate ~~impact~~impacts of COVID-19, including the extent and nature of further outbreaks and the effects of government responses on people and economies; reservoir ~~performance;~~performance, including variability and timing factors applicable to unconventional resources; the outcome of exploration ~~projects and~~projects; timely completion of development and other construction projects; final management approval of future projects and any changes in the scope, terms, or costs of such projects as approved; changes in law, taxes, or regulation including environmental regulations, trade sanctions, and timely granting of governmental ~~permits;~~permits and certifications; government policies and support and market demand for low carbon ~~technologies like carbon capture;~~technologies; war, ~~trade agreements and patterns, shipping blockades or harassment,~~ and other political or security disturbances; opportunities for ~~and regulatory approval of~~ potential investments or ~~divestments; the actions~~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;~~efficiencies; 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; ~~general economic conditions including the occurrence and duration of economic recessions;~~ and other factors discussed under Item 1A. Risk Factors of ExxonMobil’s ~~2020~~2021 Form 10-K. ~~We assume no duty to update these statements as of any future date.~~

The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as in any government payment transparency reports.

2325

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the three months ended March 31, ~~2021,~~2022, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for ~~2020.~~2021.

Item 4. Controls and Procedures

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, ~~Principal~~Chief Financial Officer and Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of March 31, ~~2021.~~2022. 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.

2426

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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

On ~~April 13, 2021,~~February 22, 2022, the United States filed a proposed Fourth Consent Decree Amendment (the “Proposed Amendment”) with the United States District Court for the Northern District of Illinois. The Proposed Amendment reflects an agreed settlement with the United States Environmental Protection Agency (“EPA”) and the State of Illinois to resolve alleged violations at ExxonMobil Oil Corporation’s Joliet Refinery in Illinois of (i) certain New Source Performance Standards and other requirements for refineries as further described in a 2013 Notice of Violation/Finding of Violation and (ii) certain requirements in the original Consent Decree entered into with the EPA in December 2005 (in each case, as previously reported on the Corporation’s Form 10-Q for the third quarter of 2013 and, with respect to the original 2005 Consent Decree, for the third quarter of 2005). Under the Proposed Amendment, ExxonMobil Oil Corporation has agreed to pay approximately $1.5 million in penalties, including $1,086,640 to the United States Treasury and $428,823 to the State of Illinois, and to implement various measures to reduce emissions at the Joliet Refinery including completion of approximately $10 million in capital improvements. The Proposed Amendment will also replace, supersede, and terminate the original 2005 Consent Decree as it pertains to ExxonMobil Oil Corporation’s Joliet Refinery. Once the Proposed Amendment is published in the Federal Register, it will be open to public comment for 30 days before the U.S. District Court may approve it.

~~As reported in the Corporation’s Form 10-Q for the third quarter of 2020, ExxonMobil appealed to the U.S. Court of Appeals for the Fifth Circuit a judgment~~Conservation Division of the ~~United States District Court for the Southern District~~New Mexico Department 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~~Energy, Minerals and Natural Resources (the “Department”) announced that it issued notices of violation and cumulative associated administrative civil penalties ~~payable~~of $2,247,100 to XTO Permian Operating, LLC (“XTO”) alleging XTO failed to comply with certain operational and reporting requirements relating to four salt water disposal wells. A hearing is scheduled for May 18, 2022, but may be delayed by the ~~United States Treasury. In the suit filed~~Department 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 continueorder to violate, its air operating permits, the Texas State Implementation Plan and the Clean Air Act by emitting air pollutants into the atmosphere from the Baytown complex in excess of applicable emission limitations or otherwise without authorization at the Baytown, Texas, refinery, chemical plant and olefins plant. On July 29, 2020, the Fifth Circuit vacated the U.S. District Court’s penalty award and remanded the case back to the District Court for further proceedings. On March 2, 2021, the U.S. District Court awarded $14.25 million in civil penalties, payable to the United States Treasury. ExxonMobil filed its appeal of the judgment in the U.S. Court of Appeals for the Fifth Circuit on April 12, 2021.

negotiate a potential resolution
.

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

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

~~Issuer Purchase of Equity Securities for Quarter Ended March 31, 2021~~

~~Period~~

Total Number
of Shares
Purchased

Average
Price Paid
per Share

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

Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans
or Programs

~~January 2021~~

—

~~February 2021~~

—

~~March 2021~~

—

~~Total~~

—

~~(See Note 1)~~


Issuer Purchase of Equity Securities for Quarter Ended March 31, 2022
Period	Total Number of Shares Purchased(1)	Average Price Paid per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Approximate Dollar Value of Shares that May Yet Be Purchased Under the Program (Billions of dollars)
January 2022	5,764,362	$70.75	5,639,871	$29.6
February 2022	8,320,607	$78.69	8,320,607	$28.9
March 2022	12,197,886	$82.32	12,197,886	$27.9
Total	26,282,855	$78.63	26,158,364

During the first quarter, the Corporation did not ~~purchase any shares of its common stock for the treasury, and did not~~ issue or sell any unregistered equity ~~securitie~~securitiess..

(1) Includes shares withheld from participants in the company's incentive program for personal income taxes.

~~Note 1 -~~(2) In its earnings release dated ~~February 2, 2021,~~April 29, 2022, the Corporation stated that ~~it had suspended~~the company has increased its ~~first quarter 2021 anti-dilutive~~ share repurchase program ~~due~~from up to ~~market uncertainty and intends~~$10 billion to ~~resume this program~~a total of up to $30 billion through 2023. Purchases in the ~~future as market conditions improve~~.first quarter of 2022 were made under terms intended to qualify for exemption under Rules 10b-18 and 10b5-1.

Item 6. Exhibits

See Index to Exhibits of this report.

2527

INDEX TO EXHIBITS


Exhibit						Description



~~10(iii)(c.1)~~						~~ExxonMobil Supplemental Savings Plan.~~
~~10(iii)(c.2)~~						~~ExxonMobil Supplemental Pension Plan.~~
~~10(iii)(c.3)~~						~~ExxonMobil Additional Payments Plan.~~
31.1						Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.
31.2						Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by ~~Principal~~Chief 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~~Chief 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).

2628

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: May ~~5, 2021~~4, 2022	By:	/s/ LEN M. FOX
		Len M. Fox
		Vice President, Controller and
		Principal Accounting Officer

2729


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


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