Docoh
Loading...

XOM Exxon Mobil

Participants
Jeffrey J. Woodbury Exxon Mobil Corp.
Doug Leggate Bank of America Merrill Lynch
Doug Terreson Evercore Group LLC
Evan Calio Morgan Stanley & Co. LLC
Phil M. Gresh JPMorgan Securities LLC
Roger D. Read Wells Fargo Securities LLC
Sam Margolin Cowen & Co. LLC
Paul Sankey Wolfe Research LLC
Ryan Todd Deutsche Bank Securities, Inc.
Alastair R. Syme Citigroup Global Markets Ltd.
Paul Cheng Barclays Capital, Inc.
Blake Fernandez Scotia Capital (NYSE:USA), Inc.
Jason Gammel Jefferies International Ltd.
Biraj Borkhataria RBC Capital Markets
Theepan Jothilingam Exane BNP Paribas
Brendan Warn BMO Capital Markets Ltd.
Anish Kapadia Tudor, Pickering, Holt & Co. International LLP
Neil Mehta Goldman Sachs & Co. LLC
Pavel S. Molchanov Raymond James & Associates, Inc.
Rob West Redburn (Europe) Ltd.
John P. Herrlin Société Générale
Call transcript
Due to licensing restrictions, you must log in to view earnings call transcripts.
Operator

Good day, everyone, and welcome to this Exxon Mobil Corporation third quarter 2017 earnings call. Today's call is being recorded. At this time, I would like to turn the call over to the Vice President of Investor Relations & Secretary, Mr. Jeff Woodbury. Please go ahead, sir.

Jeffrey J. Woodbury

you. Thank good to gentlemen, earnings third and call. morning, and ExxonMobil's welcome quarter Ladies morning the refer available comments will My this to Investors of through section slides our website. the are that

your further, like shown go slide X. our we Before on to draw cautionary attention I'd statement to

bring our generating to segments were in of as the Gulf delivered billion. year-to-date results the to quarter now quarter, key back operations solid let Harvey. and flow the Coast results, slide Earnings begin investments earned and consecutive dividends business fourth cash achieved three exceeded improved All $XX.X from as prices sales effects period, X, bringing commodity manufacturing and by for Turning performance. our the rose net of the following ExxonMobil asset Hurricane summarizing safely online that me the These operations devastating strengthened. headlines third company quarter. from billion to prior-year XX% $X worked earnings performance business

In exploration acreage, attractive addition, later. high-potential capacity investments, more expanding to highlight items from logistics in in opportunities value chemical chain these we detail across markets. to securing I'll the continued growing capturing

count economic driven higher costs. which some America. improved Moving demand negatively were in Eurozone energy results. prices chemical provide to global but we overview environment the with remained commodity while was hurricanes. experienced North natural in slower was and compared price oil slightly, Refining margins expansion an gas The driven prices by Japan rig China, our steady to with Global stronger and feed slide factors U.S., external impacted the was softened, flat along by increased, in affecting commodity Overall, margins distillate of mixed, the increases growth crude X, as global activity down. economic to quarter. increased The global the of modest quarter. expansion In previous economic by

X. financial on the results to now slide Turning

earnings to quarter share. the activity third Aromatics $X.XX dividends As were $X quarter, indicated, $X shareholders. of the and distributed billion, Jurong increased In the our was per ExxonMobil's the in or plant acquisition. corporation CapEx billion completion billion $X.X reflecting

this than $X.X billion indicated, billion, existing end provides meet Singapore, operations Cash $X.X to billion well totaled higher flow in of $X.X petrochemical are which was was growing our integration world-class and to quarter, facilities debt last asset Cash with more quarter. prior placed and $X quarter. the at the regional previously As the billion billion, value facility the demand. $XX.X than added from sales down from

slide additional cash. and detail sources of on Next provides uses

So working Earnings, outstanding over from did and management on billion not making cash don't investments dilution decreased of benefit program reduce to in related $X.X the and to we included quarter. billion. quarter, sales. of operations build includes asset currently business share ExxonMobil to third offset the cash to and in shares billion $X.X reduction In by financing make and programs, related net and Debt billion. items distributions plan $X.X additional of quarter, plans other the any repurchases fourth purchases our the to expense, our billion. capital billion shareholder yielded cash of of Harvey. approximately $X capital changes depreciation for Hurricane cash in our and ongoing balances items this and a increased Note, billion other Uses working from flow asset $X.X adjusted $X.X $X

corporate and quarter of billion ExxonMobil's and for tax segment our increased Moving stronger driven quarter, third favorable earnings results a from from lower results. slide on items. Downstream by a review to charges X Upstream $X.X year-ago

reflecting ago, our XX%, was effective note for our the a million one-time charges up that expect high to be Although tax rate quarter corporate $XXX $XXX toward year charges been fourth mix the the in to and and of segment recent quarter our in I'll we from financing changes corporate items. end tax earnings below million other range have guidance corporate trending quarters, guidance. XX%

to operating the now Upstream Turning financial and slide X. results on starting

Third million the rose by Crude for versus driven driven while earnings operating per lower impact offset of foreign of impacts. other nearly was quarter, $XXX non-controlling by quarter $X.XX Volume earnings million. unit unfavorable the per partly excluding increased volumes. All effects from were increased feet. billion, mix higher the per $XX realizations $X.XX realizations. barrel $X.X which Upstream by were increased nearly by prior-year year-ago items an expenses, $XX Upstream cubic profitability increase exchange the barrel thousand gas about the $X.XX quarter, prices earnings and interest quarter million,

in as to offset field Moving to Favorable decline, were production feet increase and barrels production offset day, partly Natural decline XXXX. and compared of XX,XXX decreased than per demand of project the regulatory the by volume more were barrels from program was work quarter day. by impacts nearly third X.X million was quarter an production X% reduced and cubic Netherlands. slide the downtime projects, volumes per per X, oil lower and Liquids XX million fuel up lower entitlements. work gas equivalent in programs day, impacts

the sale reflecting in items million partly earnings as quarter of $XXX by favorable earnings of million, quarter retail $X related mix distillate expenses operations. Stronger due effects volume million reduced XXXX, gains the All for Hurricane refining $XXX third Harvey, XXXX. now by to of Downstream operating management XX. financial Downstream earnings Canadian to Unfavorable offset increased margins, as results to asset to well up Moving and earnings and the third throughput to $XXX improved lower compared the million, hurricane. quarter slide $X.X by primarily $XXX billion. from were the decreased mainly assets absence other the of and related billion, of on gasoline, the by

to slide moving financial on and Now, Chemical results XX. operating

$XXX decreased Third earnings Weaker increased sales, costs, million units new and Arabia earnings increased energy items by exchange other included to Singapore, compared by commodity billion, from part product Harvey $XX margins, offset the by prior-year operations, demand, feed million. million. in were earnings $X.X associated Saudi increased by foreign All costs Hurricane Higher quarter with in $XXX quarter effects. capacity in new Chemical by improved and the driven favorable down and expenses driven and quarter. production

update well permitted live and our safe employees, people Moving for slide Harvey efforts, the for hurricane recovery Belvieu, operations fashion. in back we operations infrastructure and sites the now our chemical are Refining communities operations chemical operations of to refining a Mont to preparation, and our shutdown and had XX at Beaumont. able and on Baytown, of highly positioned an integrity to we and contractors, resume of normal. of timely were our Hurricane protect now devastating Nonetheless, manufacturing planning plants, in impacts systems a which dedicated and effective we're and in advanced operate. to many Because these our

maximize with reliable emergency other and our products acted and the the customers jet gasoline, our fuel diesel, in U.S. to bring the consumers we partners and closely to customers. sell supply Following storm, supplies responders. regions We from ensuring and return of production, our who branded supplement fuel to worked our abroad quickly to in to

hands-on shut unfavorable million debit proud impacts, the Our by continue resources to of Upstream per in. experienced $XXX with ExxonMobil in limited an them $X.XX of share. of a to and quarter the impact efforts. with third operations estimated Hurricane offshore Overall, had dedicate who are provided temporarily flood employees and their platforms some and their we communities employees we Harvey support support our earnings assistance fortunately impacted time storm, to and continue relief, on

on good strengthening making to further high-potential slide with America South progress XX, we're Moving portfolio in our opportunities.

discovery the offshore the Liza feet the announced First, X successful of oil-bearing Phase of fifth the and encountered is in located Guyana, to miles project. The is we XX well Evaluation Turbot approximately southeast of sandstone underway. well. with our discovery reservoirs, high-quality XX

We new position, play plays the blocks these new winning round September blocks. Importantly, Turbot to have helps to farmed on with attractive a outer this blocks holds which test the Block. this discovery. Campos XX% partner moving under in awarded XX Sergipe-Alagoas contract. plan is to an ExxonMobil in in co-venture to an Ranger The we with jointly in two then in the interest. the Brazil, ExxonMobil the is and In delineate concession the offshore additional Northern is a were multiple the two on well awarded Basin, Each Stabroek QGEP. year secured Each derisk acreage blocks are additional prospect, another bid success to as group, operator. also held the farm-in interest, two Petrobras In pleased recently We and proves prospective an completing In bid pre-salt, rig Murphy was Campos of new and on a in this now by we help drill blocks additional area. basin. XXX% with Basin same working the with jointly highly blocks working Petrobras. awarded additional blocks with the was ExxonMobil two play six

For all blocks discoveries hold are blocks multiple of XX% extension The deepwater the operate have offer blocks, four pre-salt made. been will play XX a Campos these combined Basin ExxonMobil potential. interest. where working an exploration The and promising of world-class

these to progress working activities in acquisition our We then look high-quality drilling our XXXX forward have with exploration blocks in seismic partners on identified anticipate seismic and XD data exploration with We prospects government own to over multibillion-barrel the existing and commencing and plans. XXXX.

for on update our to further attractive slide resources Permian to to in business XX now our Basin growing Coast Turning our enhance integration an the efforts manufacturing hubs. Gulf for

ideal acreage strategic our acres another $XX,XXX acquisition to five core know, value and to capital-efficient than Permian resources. Energy of operated equivalent acre. has of joint This oil the low-cost an formation adding contiguous first using with expand long ExxonMobil to we cost to premium and we making wellhead Partners you combined of venture products. XX,XXX fuels is adds year, in continue also Partners. acreage the this Since position transactions, in pipeline chemical about for logistics acreage the XXX this flexibility As implied and We're completed our from Express acquisitions. trades a executed the total of it quarter year, barrels per of Delaware for access more development lateral and Permian using Transfer Earlier the capture wells, million positions, expanding

key logistics this July, per from barrels condensate create with Energy. Basin Texas of gas day the recently interconnected export pipeline throughput, and terminal ability Connector our marine facility The to gathering is company's system terminals. servicing processing refineries logistical strategically establishing Wink, our producers with by Crude transport Summit truck, Midstream first natural full acquisition capabilities Downstream The for to Permian the and terminal rail, oil and Earlier This acreage. of increase crude a we Alpha terminal expand. The for the a crude agreement the a outbound our further acreage. Basin. anchored XXX,XXX to in of Permian inbound in investments higher-value Partners Delaware support to and the concluded including acquired and and crude provides access, handle system, Genesis be Chemical Plains with ExxonMobil's new permitted Coast growing acquisition options, ExxonMobil and is to in to a Gulf ongoing from Permian to marks in is in flexibility production rapidly positioned range investments addition, products the for enhanced midstream terminal provider These businesses. manufacturing processing oil In we an pipeline month, and capacity logistics feed as with

across in the refining and from positions capacity, equity production through value to Gulf Our development for Coast the us chemical leading chain. Permian, world-class presence

the XX, to our we the to graph in forecast Analyst the date Moving March. slide right at Day to liquids compared our volumes provided unconventional on progress shows

Our Bakken total Delaware, from XXX,XXX and is oil over now the unconventional barrels Midland, equivalent day. per basins production

in rigs Permian XX ramp to continue will XXXX. the XX rigs operating currently are approximately operated up and year-end to We by

year contiguous We the are costs. industry-leading above in the our feet, industry about The development drill well to wells, this XX,XXX wells long-lateral lateral average acreage leveraging unit average. drilled targeting position Midland

us year XX%. our turn which investments. before best-in-class annual innovation production. we at lateral compounded about continue fractured We XXXX, team was well ExxonMobil's in with where continue drilling We'll dedicated recently expertise our learnings completions, through to X-mile you learnings enables to just allows liquids as operated grow our quarter improve value we lateral technology growth incorporate Permian the at unit first the X-mile a on and rate underpinned more costs enhance we growth efficient the through Permian by laterals, lower By first and work start XX,XXX-foot first the Bakken, told in will leveraging operational the end. well Delaware, in several to in near-term our about our our last annual drilling to to and for XX% this in of We brought drilling efficiency. our unconventional

cash year-to-date to and company business XX, slide its uses solid to shareholders. of which Turning highlights our segments, summary now meet to sources performance the of our the the of the enables corporation's commitments

shown, business, and and asset As XXXX flow from $XX.X a the in investments cash billion sales in debt. shareholder distributions, year-to-date funded operations of net reduction

we continue to flow and free in the capital discipline. maintaining selectively addition, In investing cash while generate business

quarter our in since fourth oil exceeded shareholders where the free significant flow distributions consecutive marks has drop to quarter prices. This the cash

Moving now put, focused to we presentation final growth. today's year-to-date our performance. summary slide, conclude on value a the long-term with Simply remain continue I'll to of

over the an of integrated sales business first asset Our cash XX% months flow XXXX. grown $XX billion, to nine of from has operations to compared and increase over

volumes first an last production equivalent within day. our X over nine the billion, increase have guidance billion business to range million Our oil $XX over per segments barrels compared Upstream of months $X are year. collectively at earned

investing value year-to-date in continue opportunities execution. delivering high-quality across $XX.X but billion. capturing This of total remain and chain, best-in-class allocation in capital We new while in capital has expenditures the resulted disciplined

Finally, covered up your reliable for concludes than we'll distributions more our our value well integrated year-to-date free confident remain In delivering that $XX.X continue my long-term to of is short, we prepared our flow shareholder billion. growing $X.X and business it to questions. remarks, That shareholders. billion positioned now open our of cash and

Operator

of you, to we go Woodbury. will America. And first Thank Leggate Doug from Mr. Bank

Doug Leggate

Good everyone. morning, Thanks. Good morning, Jeff.

Jeffrey J. Woodbury

Good Doug. morning,

Doug Leggate

relative continues to capital guidance. Jeff, right And, year-to-date look to quite your expenditure the

guess wonder the seems you the gave you and could billion mind you maybe I the than guidance the that just flexibility Permian better at think my a it portfolio I very speak if CapEx to catch-up your is of lot to is. back-end also $XX of really whether the back And what's perhaps So decline low-cost us if year whatever expect is the for a at you indication suggests? to a is your XXXX. offset

Jeffrey J. Woodbury

Doug, at guidance year-to-date have still you but is lower at our said, we as on expenditures trending CapEx point, this $XX billion. our

we just the recall have view close leads and about And that activity year acreage and us X was all up the Mozambique Brazil to is guidance objective course, same the and the still for may our business. we've You the billion. of got in before $X.X time, ahead that's Area our end, transaction plan, go At that also the transactions that unconventional we really the ramped that some And, appropriate. consummated. of that is to

Doug Leggate

I honest, on, I'm go – To be didn't go on, sorry.

Jeffrey J. Woodbury

is and before And is XXXX still ahead But I our into is plan showed timeframe. forward Looking wouldn't and provide update we over assume course, our of we'll linear I an that and there. – CapEx about next that gets go minus. think thereafter, XXXX like XXXX here in $XX we'll billion provide update to it going or the go ballpark to early But year. over XXXX. I ahead of to and general billion But billion plus said, $XX an be $XX

Doug Leggate

be mean first I didn't that it also number didn't closed, But yet Mozambique acquisitions? all, you, Jeff. to $XX explains had next of the But billion I to so include just clear, interrupt that not year perhaps. realize So

Jeffrey J. Woodbury

where it. a Well, certain, tend would include Doug, in opportunities to that But if that going and to not – we we we fairly do point give come it's is budget you we believe not. to we'll flexibility a it's there's close we little the typically up. at something pursue typically close, But leave if believe

Doug Leggate

result. wouldn't too discovery. is on on that rig you. One predictable – disclosed I comments Okay, is not weeks to location you after Turbot. on understanding My follow-up you my but to I'm do Guyana, expect be a the is several stayed small thank the going guess your here,

it update you. So wondered what thinking you if leave the of Turbot there. in an area. I'll on timing And to could I speak how Liza, phases greater thinking scale of you're the Thank coincident about you're in And terms multiple Payara? maybe

Jeffrey J. Woodbury

expect the a discovery. in drill as and we with plan Yeah, sure. Turbot indicated that Well, going well pleased you We back are follow-up – do I plan again, a have XXXX. do may as would we very previously,

The done. follow-up important work to a to it on still in to depositional Turbot and go message assess of different and and there and environment, be a ahead it, were early days It's area but assess. that plays did a play, this new number order in confirm there's is lot us that allows define of ahead better go potentially

would will Turbot, previously had at we for about to certainly, that. certainly But subsequent the And progress. barrels the Obviously, ships. we puts what subsequent of more for refine date to obviously, is X forward, given in X, end the As define exploration least would results, that Turbot X.X two had about that range. resource. those recoverable will results better I our success a us given of we higher of active are We Guyana. second we also the resource you planning I your have we're towards Phase to Phase the considering phases, we million processing as considering Guyana. range for given developments, significant encouraged say you are capacity phases higher go very and and X.X by you And development tell million we results question the

that course, of certainly may and our positive things as of we forward. our change. Now, component development be going efforts, program, portfolio integrated parallel very progress very will But continue our a exploration planning and important into

Doug Leggate

some if subsequent expect as I'll you But the leave really And I'll you us there. leave there. wondered to it when it would I phases. FID just Okay, to Jeff, would idea give

extended the for Sorry question.

Jeffrey J. Woodbury

certainly X progress appreciate we best-in-class on can made, was One Many appreciate development, at pace discovery looking I from five Build that all a I don't concept, at the this startup, interest, keep have the that fairly if the, but will, you given the can extent continue mean, to you a Phase various I – with timeline forward. really year we the We're options, Design have going a the really I and point. don't to capture to want and we good Doug,

Okay?

Doug Leggate

Jeff. Thanks,

Operator

go Terreson And we'll Evercore from ISI. to now Doug

Doug Terreson

Good Jeff. morning,

Jeffrey J. Woodbury

Doug. morning, Good

Doug Terreson

Around and governance changes shareholder has companies correlations and returns strong flow on to in capital obviously very And have growth free a reassess metrics environments. point, ago ExxonMobil of this and pay often Simultaneously, the emphasized in historically flat which is and these versus total especially incentives distributions, versus to on this strategy stock decade and corporate competitive some the of time relation metrics. cash good year, energy is employed thing, mixed. return, a to performance shareholder and ExxonMobil's reflect peers relative is

And a shareholders, might so question a incentives S&P be challenging that begs a mix whether of has beneficial include might weightings the group, too. peer done, the or in more needed to or which XXX, whether change peer is as

the the So Jeff, things? grand given is can how you internally in scheme stock about the decade? important And the performance comment, over company topic on this issues of of past how these thinks the

Jeffrey J. Woodbury

we've to reinforce same compensation that is I'll large a shareholders compensation our the it is to component structure to just experience. will very the broader the group of that for Doug, talked fundamental principle as executive the past, in And the our important. tie performance

by one the ultimate compensation the -again, whole ultimately will not have that driven do. of, the stock vesting. – if longest, the how programs incentive in terms is we of And So

that on of long hold As executives a And returns times period the to because magnitude long want they the our sure of make the business cycle over we to investment. has we know, of very a you time. that made decisions that we are in

tied performance. part the directly is that we So the very of compensation performance-based, have that large to share's is a

employed are on parameters that board As key the and performance return you other there are of considers, two and said, seven criteria. the safety capital

Jeffrey J. Woodbury

right Yeah. also I But Jeff. what question, the No, reset I definitely one wonder seem weightings you you. – have anyway, be to metric, have could if other just be using so so the or

Can in announced $X.XX number a this meaningful correctly. about published guys talk I you share the You affected the sale, quarter? it per if pretty of read how asset earnings

Jeffrey J. Woodbury

– the overall mean The proceeds you asset of...

Doug Terreson

losses and we gains any about that were meaningful? know there Was should Yes. Yes.

Jeffrey J. Woodbury

Yeah.

So, quarter-on-quarter was earnings from an overall, a actually impact, it decrease.

Doug Terreson

Okay.

Jeffrey J. Woodbury

on decrease just – XXX quarter-to-quarter A by $XXX earnings about over million.

Doug Terreson

Okay.

Jeffrey J. Woodbury

a receivable $XXX was that On proceeds, the Guinea. in the And in the due associated million. with release, of that we in was it the really about lot had Papua third quarter overall New

Doug Terreson

Okay, absolutely.

Jeffrey J. Woodbury

Okay?

Doug Terreson

lot. a Okay, Jeff. Thanks

Jeffrey J. Woodbury

All Doug. Thank you, right.

Doug Terreson

welcome. You're

Operator

Our next Calio Stanley. from comes Morgan from question Evan

Evan Calio

Jeff. morning, Good

Jeffrey J. Woodbury

morning. Good

Evan Calio

Maybe Peak on challenge. expect has start. driven penetration another demand it know macro oil strategic (XX:XX) question you longer-term attention, work that increasingly and to a represent see captivated to does way, portfolio? to your by investor medium Downstream given Has in risk peak any demand how in demand that gating your the projects, is oil considered decades and or both of in your growth yet. process especially depth for for I the Upstream altered

Jeffrey J. Woodbury

three a quickly probably of sufficient components: primarily sources driven And outlook. growth by requirements. is not and take that to can demand update summarize the two: is and heavy-duty insights alternative heavy-duty for consumption consumption, petrochemicals and is it energy starts the and fundamental our describe. with really around really petrochemicals. our very us, Right of the are very lot to energy That there's driving now, the latter business this intensity a strategy a that Evan, because consumption. those vehicle time replace our annual oil light-duty what's that energy important of I But question us investment one planning. If providing to

by assumes by gasoline of of and demand driven light-duty into our on greater reach vehicles EV engines, things. Now in ICE, energy that and efficiency peak penetration two down, internal well that's a It's come as combustion the we outlook as driven will and marketplace. hybrid

look you our all this by do that we is, result have X% at is fleet right about the peak at we or bottom XXXX the in now, look penetration. And variations is the So the in EV forecast of if EV.

that by impact barrels would have about demand a per increase X.X to day. that were of you If liquids XX%, million

the area close a strategy. barrels that per doing key when XXX activities, it, you higher-value substantial we at look as about making as day And you've think us and what we building to today not gasoline molecules So are certainly, this of then into but and we have like keep products, over is at in a heard very distillates development order point, about upgrade overall how lubricants. element million our investments we think and as in research something of well oil is, that been strategic about those talk demand

Evan Calio

Appreciate Great. the color.

Second relates offset since the Permian, are on XX are to as quality your it guess, equipment completion is the you plan some in here, onshore one mitigate U.S. global given in of deterioration fastest one XX the mid-year, crew operators? accelerators you've seeing just highlighted you particularly fully growth that your is from sourcing by pressures and to add or to bases. and Exxon or the smaller being another I those gone by some XX advantage? Permian rigs of four is here to able any And XXXX.

Jeffrey J. Woodbury

and sure is in onshore and we been a want at the have equipment cycle, full point. we active Yeah. learning fairly come just we even very want through, and be cycle that a crew to rig we that you of advantage the like to U.S., low time very taking maintained capability. curve maintain question program a mindful that But are benefit we've No, Evan, that that's of off qualifications that the to in low good because that you because any the remember, market make

fleet very strong a service So providers. we've therefore, got as of we up, ramp

you've minimum got stage, at a avoid is to as quality I – are the point associated But service add to shortfalls that want our what because rigs, material where standards understand with phase, activity. we go very rework that not carefully partnership that watch especially with ramp-up have providers, of areas they nothing clearly, we you shortfalls in into that it's additional to quality but lot As what a something all the is performance. would – in this there got execution, in we've you there's

Evan Calio

Thank sense. Makes Great. you.

Operator

go JPMorgan. we'll And to Phil Gresh now from

Phil M. Gresh

morning, Yeah. Hi, good Jeff.

comment in sale to on gains the just question, Just earnings. asset first clarify I the want

You mentioned the last absolute but what us absolute from we but you was Downstream could the know that number? quarter-over-quarter, give have the gain? I didn't – gains Upstream quarter,

Jeffrey J. Woodbury

quarter you're in for the asking And or quarter-on-quarter?

Phil M. Gresh

the quarter absolute on basis. an In

Jeffrey J. Woodbury

almost gain the was that of in Upstream. $XX the million was in absolute and The quarter, most

Phil M. Gresh

Thank Got you. Okay. it.

towards Second was before on CapEx asked is that looking longer the question about the term.

billion and think last that kind you linear about it'd ramping or that I You or path minus more suggest you will out lower a a billion minus? when then maybe seem were more asked quarter, in in of think or be talking about to about of it, be a in did given plus $XX still I plus the bit year. And years. $XX Is how XXXX this

Jeffrey J. Woodbury

assets to Yeah. know, Phil, number get be after probably of of phase going in I mean, communication plans. to the going needs a we integrated our into we very I next get where that be we're to forward are until plans. to the ballpark. And think it's right it's best picked wait our new – attractive investment you that to as But around around away. up investment we in to that XXXX forward

Phil M. Gresh

offset be you buybacks Okay. made to then you that not dilution. a Got it. comment And doing will

in that on appears, think to do and tends – quarter decision I mean, the that. just comment be if maybe third can I lumpy it not it to the you

Jeffrey J. Woodbury

Yeah.

there's So first and usually programs, happens benefits is the I two purchase to shares for That our components. One dilution lumpy. in believe that timeframe. is quarter offset and of plans the

as sources funds, point program. that of we'll component decision the think first reserves, will of being factors. cash down. a previously Phil, But And shares. of maturing, current it's look does have is the in to best buy pay corporation debt both debt I'll outlook, go given our capital see decision if quarterly requirements, that dividend maybe at term from for we basis, number we that way And that on on our funded function some at talked some things whether the I One and large of of what the next a financial And back made left And a that on not second ahead is in it's the cash what that is. our any as a there's decision a of we are the we've we'll position thing well if but it our hold say, ultimately that buyback our allocation, we and about are that in we the CapEx being The want corporation, the make as point business near as investment that said, program. quarterly is dividends and basis. terms

Phil M. Gresh

Okay. I will leave it there. Thanks.

Jeffrey J. Woodbury

Thank you.

Operator

Read Fargo. from we'll to Wells And go Roger now

Roger D. Read

morning. Good Thanks.

Jeffrey J. Woodbury

Roger. morning, Good

Roger D. Read

that's right wells go come the comment of you If to an because of XX,XXX, to do XX,XXX or to you performance you the more and at about laterals you've to, can an going and Permian, what wrong, us done give acreage, idea just XX,XXX-foot the that of have idea idea to the relative things laterals, then can pilot-wise maybe you're as you longer direction back gives average longer point seeing go this confidence we or could of XX,XXX out the XX,XXX now go since those the maybe less? say,

Jeffrey J. Woodbury

chain a clearer that honing of with It's we've to I'll strategy. probably We've put our element in us in capability. position for on contiguous Permian. to key technology a strategy it's good what question, up and becoming a start much leverage large place you're the allows overall the the value built group really the strength of acreage really that very our

chain, the and technological we how performance. Clearly, It's about the I'll ahead value the go full to about do be through leverage just do unit capability best-in-class execute. us, to trying barrels we ultimately lowest we're what It's clear. the full then the from our is all and customer. to highest how capturing extend achieve For value cost not real

several what X-mile on Bakken So we have drilled in have we the done Okay? recently wells is laterals.

right one want Delaware ultimate the now. long well to We has the lateral first drill looking The that a get hardware, XX,XXX we've first we the full lateral step really sure are in These been here. all coming in and is in focused at that a well. completed the And at Permian on drilled getting very We wells. ready length. research just a and to X-mile this the change well make And got we from we're feet, inflow as make on performance effort now. way across we're the good development reservoir the how do very to

Roger D. Read

XX, you. else QX. other the that we comments in end the Permian QX And Okay, for you than implies we your Is of to question big that on – that any just the CapEx, as – it the drilling CapEx Lower front into the we just if think in have as about should overall follow-up, the let's part go back Mozambique a assume XXXX? up to there the the adjustment fairly to of higher stable great. QX, QX was Thanks. steps then about the change anything other make was And first earlier acreage year then

Jeffrey J. Woodbury

Let correct me just you.

the the third primarily quarter, by driven acquisition On increase the closing Aromatics. in for that was Jurong

Okay?

Roger D. Read

Upstream sorry. was CapEx only. talking I I'm

Jeffrey J. Woodbury

Oh.

Okay.

Roger D. Read

way to in be of just as our things significant XX was Obviously, moving got on walk part So you've the latter $X.X even $X.X then that's understand. trying we the the the plenty the Lower fairly billion, I of wondering was If Mozambique, just still out was we Permian. went has if in to case, than around, step-up, to then I an other adjust increase going is year. but roughly else billion this into what and that that works XXXX for activity? And math

Jeffrey J. Woodbury

underway couple primarily them in unconventional, piece projects I'll ramp-up the that so biggest remind startup a is program close we also drilling, on in increase predominantly just the of the it's Upstream. it's Lower our to base in the work project then are stage, Probably major the spending, have and a XX getting unconventional. you, the four

Roger D. Read

you. thank Okay,

Operator

Sam go Margolin & And from Cowen to now Company. we'll

Sam Margolin

Hey, good morning.

Jeffrey J. Woodbury

Sam. morning, Good

Sam Margolin

FID going has to the activity now, past assessment XXXX, new get right a some did you really of new of LNG reports year-plus. of it to of a your of like into the capital the the I'd ramp of over considering market not those buyers that over quiet The assets. really the looking market back mention or is acquisitions of made you lot been all couple ties And course commitments. timing little longer due pick think gas of as And how up wall big half now last between or that on those quiet And year assets next of XXXX? that's you much the that your the that new you to bit accelerate might and global a second supply if wonder period around might can emerges, to this of how have? some affect if and I coming of is

Jeffrey J. Woodbury

Sam, growing is again, XXXX business, component about year. LNG timeframe. our energy and with about times sizable where over I'd outlook, to XXXX pretty that our start we've per probably gas that's X.X X.X% got And from growing a at

on projects, the all LNG pace its in them consistent to project final decision. a of is have moving a insufficient we're will of we'll into a any where there's investment maturation all we recognize like side will objective we The pace. oversupply curve. here potentially that's Others commodity, large, up. key think oversupply supply we're with of timeline. likely that But say, got mid-XXXXs. they're provide at be that be where the at have well up, we've of type is, is to all everybody's where just very and could the far ramping be and we I to Now, go aware have to periods there And forward of move of supply. very think And the on have about are portfolio starting them projects the message that the as come periods same going important diverse the of But the here, left period be very to, that number not cost going to

be attract was that that We I to order market have in cost about. the talking growth got demand competitive to in most there out the

Sam Margolin

follow-up be Are market timeframe at out apparent, of so then, into year might post-XXXX commitments will out the Okay. up to or opportunities customers buyers that Do your these before a The is near-term the you of move? the look can way. market in hasn't and there And if guess, that the tightness over been has the commitments more scale seeing balanced oversupplied? – project, that I from you they to at that evidence progressed you need because time you or think guess by they get the some see they do even need when future, FID more the past I sign so. is to this market for from

Jeffrey J. Woodbury

both. I think of it's a mix

buyers their far that just positioned everybody are supply. continues past they capture looking They to I out. know supply. project decisions the remind evolve, think would have adding need need from we they the firm our to long-term are standpoint that Obviously, make I well sure And that all with market more commercial that LNG underpinned to in shorter that contracts. flexibility on funding we durations. terms competitively

hybrid based to large certainty So contracts. these our it's projects funding were while underpin the commercial more long-term secure a in sales, in interest diminish our although doesn't firm that near likely that to remains decisions, on objective future in of locking

Sam Margolin

All right, thank you much. so

Jeffrey J. Woodbury

Thanks, Sam.

Operator

from And we'll Paul Wolfe now to go Research. Sankey

Paul Sankey

Hi, Jeff. that's disclosure that barrels. little I data the acres, There's million look given XX,XXX bit added Permian XXX being more at operated a When here, than referenced. equivalent more you've oil you

even that acre, be that the was about in pretty barrel? mistaken that I you quarter in is mistaken the much if about oil spent more based be an equivalent I that I you $XXX assuming $XX,XXX million said about would on And that an or would statement So $X paid inferenced?

Jeffrey J. Woodbury

That's is transactions implied Paul, trades. talking that, I were And both say the the reason an five we're and because about cost. cash

in of a trades well. were there that there So non-cash number were as

Paul Sankey

you're And drilling longer about fine. you've a Bakken. then That's the just feet. to much you're actually be in then Permian, the And interesting going X-mile saying right. laterals, all lateral the these Okay, in you're that that talking it's XX,XXX one completed but

what I correct? that's think I heard,

Jeffrey J. Woodbury

actually one. we've I first drilled Bakken, it's think We completed right. four the – the That's in and

Paul Sankey

going and forecast have the obviously or achieve identify of... at provide you acreage that less is aggressive you. XX, is is the that the you're of need you thank Great, And growth as to the much very growth you or sort inference, have impressive acreage a that. slide volume that look too all to you Again, fair then this more that the the implication is very that slide, that's for if I insofar going

Jeffrey J. Woodbury

existing is acreage a clarification. good No, we on we volume slide have. really based Paul, XX that that that's have The on

we're Now, as we I transactions our on – doing in to comments, acreage one existing lot build in my the a things bolt of on said prepared of they have. is a that that

So share acreage. continue to the of grow strategies can is that directionally, I to one that contiguous

Paul Sankey

it. Got

sale. be And lot. Thanks helpful. the reported press was that's a Jurong then Okay, in to $X.X billion a

I'm the underlying to clean Is about public that's think to CapEx. the information. that I number? trying obviously get

Jeffrey J. Woodbury

by bound with a we're agreement on unfortunately, the sellers. Paul, confidentiality that

Paul Sankey

question trending bounce me was that Understood, you for lower what will thanks. other I the you, Jeff. that mention And wondered in of arcane bit and about. been you've It's a just QX. last there did then corporate one an but but was in be that for expenses,

Jeffrey J. Woodbury

will the a have But favorable As would the of you know, we're some it, probably corporate of this costs of finance variables them. seeing items that quarter. absence largest Paul, I in part in lot the be of say that

Paul Sankey

Fair thank you. enough,

Jeffrey J. Woodbury

Paul. you, Thank

Operator

Ryan from Todd from Bank. next question comes Our Deutsche

Ryan Todd

Thanks. earlier Jeff, this the XXXX. the was the same from you as implied there, to pace planned XX rigs maybe just Permian have by the talk Is Day the XX growth a couple Analyst of you quick assumed XXXX in about ones. that year-end increase disclosure Permian year? In what activity

Jeffrey J. Woodbury

the up everybody is Analyst. bit. out what you we you But our I – – for originally clarify it's to I I rig but mean, The operated that make comparable are the that's volumes picking for I itself planned would include And production. what and participated the – detailed these basis total tell net that we with just not will a rigs. rigs the acquisition, does we March to that in shared counts we just the non-operated sure want in. when This had it's

Ryan Todd

creation. and plan mean, value about much how as efficiency And long-term downside risk executing forward, period, think in you on going to of if commodity that upside inflation? or commodity based inflation think and things figure like price which are potential cost plan, gains how much at do But versus – the tend that does the you you I over you I of you kind does multi-year is how to – you think look into that? know figure when

Jeffrey J. Woodbury

the mindful but it working of sides of the both it's do working but We're not we're may as And think an it basis down. that realization also earlier economics, equation. only we and on capital Certainly in the overall in factor, on a a invested the being on provided we're costs – recall working that we you was snapshot operating Analyst I driving cost call, and least them Meeting, at lower rate actually a of reasonable And – X,XXX of the third wells than had generated end a that them XX% better existing at Bakken And economic the a in a which return. portfolio. the XX% the a return. here, resiliency about generated part let's say snapshot a Permian rate of rail, $XX of of we is of flat over large

that barrel, I good economic So is on are we don't quarter sharing work down $X further that you continue cost all barrel. that as remember, because of but trying dropping to to resiliency, being while cost. to you with our that was equivalent last push we very think per as oil per far – average development as static unit And $X down

Ryan Todd

in on That's you maybe a years thoughts over you've today into your upcoming Brazil. seismic great. to involved your going blocks, Brazil. on then I are of the more few point exploration in you how talk disclosure would bit view about pre-salt requirements drilling possibly which broadly appreciate one And that just Can your from and what acquired, think is think have potentially acreages little next the compare it maybe the on in? the Thanks. it and global fits round, and a portfolio? And maybe I you're I which on slides the how then

Jeffrey J. Woodbury

prepared from that we have. probably acreage position about my excited the up very you pick we're As comments,

the the won it's going announced on that's well. round high been right guess Carcara as I that ExxonMobil on In now, now North bid bid fact,

been time. a this for So at has allowed to that get looking we've some prolific really us into basin very

aware of is very much endowment, been this strong and inventory, needed our pleased we're was the to a it very sure resource with that that it's us, for it on all very competitive mindful all terms about we You're while and got very with making we've do value that existing that.

some go it's bringing exploration through portfolio resources divestment our how So, obviously, my acquisitions program, And about and bottom. portfolio, the the then we top and in be right prepared – good right Well, strong XXXX the that comments the acreage, after get very full with. Brazil drilling. out we're we've in think out partners our at our already high-grade program, the comments, that prepared we've have said working intent, get got to shortly when sense in through we I really the to I we'll some to there the got to some of thereafter, all XD seismic in seismic as going resources our then about of as that very what's and you said monetizing

bring So that very another pleased with to. deepwater got where expertise yet high-quality we've and we are. our that resource we'll potential The

Ryan Todd

you. Thank Perfect.

Operator

comes question from next Alastair Syme Our Citi. from

Alastair R. Syme

regulatory Brazil really on award Jeff. of focus the of or guess topic Do geological you of South deepwater or to in America. from the the mentioned, the years shifted I'm side the a combination morning, to margin both? Exxon Atlantic has lot It's you is that based just been going that Good West a a Africa other recent focus announced. think

Jeffrey J. Woodbury

is leverage the to that good two broad where areas. we primarily have how structured it's a resources where very you in a existing about there potential think brief have high-quality timeframe. fiscal competitive – those production the we exploration And being new really program, Well, play-opening. mean, I second basis And on in fiscal when evolved then keep of strong is terms. basins. has area quickly focused get we the discoveries exploration program various that's In very and high-value high-value big, on focusing fiscal our One potential geology, we a government Brazil, very in can the it's got fast operations

So that's on – are on where program. – the focusing exploration it how we

Alastair R. Syme

are the pretty you offshore have awarded you some getting low. that about is a viability the And deflation, that we of seeing to rig contracts ExxonMobil of getting My about do on the lot of follow-up, what concerned Are if is financial supply at stage see? it? yet chain so, recently the been we're and Jeff, the trying

Jeffrey J. Woodbury

an do – keep and you think same you allow period, to the win-win that getting got achieve structure get cost has their attractive those continue and sector to sector this earlier, issue service I to have an find to the over healthy. producer deal the find solutions service return, the to industry that starts we low cycles. I at into with as Well, down address When had referenced the time

long terms in of a investment of – think concepts that of to for we to sector. with most we innovative supplier develop capability the the value They resources. And we some provide have can challenging amount And of amount that and that ExxonMobil a of I that the understand effective our of the they very us they more have tremendous new mutual think the of brought service have a providing as One collaborate activity I objective fully relationships here, I solutions they understand that contributes decisions. think with and the is, function sectors is add well. areas

Alastair R. Syme

Okay, thank you very much.

Jeffrey J. Woodbury

Thanks, Alastair.

Operator

Barclays. next from Our Paul comes from question Cheng

Paul Cheng

morning. Good Jeff. Hey,

Jeffrey J. Woodbury

Good morning, Paul.

Paul Cheng

of growth based Permian that is Simple year or presentation – up based year next incremental continuing XX the say, XXX,XXX rig steady, XXXX, at day really on in by program? expected then per were in a growth, that's the the quick looking Earlier at whether you and rig when production to end your program on XXX,XXX-barrel by clarification. the

Jeffrey J. Woodbury

rig really see growth would some in It's We latter. program. the further the

Paul Cheng

for point, mind? this is you rate in that is at have to growth on early that may of the the comment And what you rigs too

Jeffrey J. Woodbury

equivalent if in because I right they're development we the rig rigs at in than have an as today the interesting as XX%, much, XX, because efficient. they expect see it's not much historically. back I this No, more peak productive periods. will than efficiency while productive these progress much much, down I much counts the greater more these much reduction we rigs and Lower we – that mean, to timeframe mean, overall and are this you look now how wells that's remember, would getting more question an we getting much over are continue really activity these are were more drill

Paul Cheng

Sure.

you press also year Second release impact in question, and the is $XXX mentioned million. that half the

Just want include is to only or the for clarify, associated repair is the lost that this represent also cost opportunity costs? the

Jeffrey J. Woodbury

lost well as It two the components. includes Yeah. the as It expenses includes volume.

as talked about press about $X.XX the million share equates we release previously I $XXX a hit. in that So and to had as per

Paul Cheng

are you And is area where drill to the a going going Turbot, to are mix or year, Turbot you on or the itself, – just test Turbot discovery that place to other next (XX:XX:XX) the on good structures?

Jeffrey J. Woodbury

existing will resource, there's a large It that's stratigraphic you is generally accumulations. that that will it. about drill area remember a with traps traps. of in existing these the anytime it multiple gone it's making we've be – we small delineation these through – some test on this are sure the These – very wellbore a resource, And seen

that prospects given have forward. now other rig to to into the our general there proven So of need as there forward go those and it's we Turbot going have the then, in now several learnings area, objectives play, integrate go we course, several are And we schedule. ahead

Paul Cheng

so one. XX,XXX that that's you $XX,XXX, five you did, roughly million. about $XXX Okay. And the The there's mentioned final transaction about net acre,

it in from $XXX CapEx the you assume to CapEx So second this well, actually because – slightly we quarter that I mean related S. in million, that actually it all – means sequentially? increase if U.S. should the out third in the back to down is U.

Jeffrey J. Woodbury

I cash as earlier, Paul, Sankey is the made. responded as to No, trades a combination as actually because well both Paul that's that case, not we of that

Paul Cheng

I see, okay.

Jeffrey J. Woodbury

there. transactions non-cash some were there Because

Paul Cheng

is But transaction, the of XX,XXX, you is increase XX,XXX that increase? net net final still the a have or not a which right,

Jeffrey J. Woodbury

the increase Permian. in a of That's net XX,XXX

Paul Cheng

Right.

So the trade, but still that's Thank that off-line. it net – fine. you now no, is can you you. We get even you're have a increase

Jeffrey J. Woodbury

assets. Don't Yeah. just – involved think is that Permian the trade is

Paul Cheng

Understand, thank you.

Jeffrey J. Woodbury

Okay.

Operator

a modeling Weil. bit Fernandez question. quarter it came gas, just off keep typically help gears we'll forward. like European last so? Capital wanted from remained next know year uptick you XQ, it's just (USA), our it kind at but know Blake pretty I if looks And potentially that hour, into I in shift morning. Jeff. Blake have late going or think thoughts - us depressed. now and point to Fernandez to Hey, Inc. some would to an that one to don't any ways seasonally you so about that of the could Howard I move Good It's Scotia on I'll Scotia just returning to dramatically to

Jeffrey J. Woodbury

going changing the on out that day, that of just well quarter. that which or view the Yeah, in just already potentially start the the would as associated there Capital And seasonal out, on think, should turnaround a there was it are the second, components volume much is - cap the we pretty I'm million the in really two Obviously, regulatory (USA), future? fourth on Netherlands, demand downtime feet to about as turn was mix the quarter a I'm – so I XX impacts million Scotia Blake any there cubic day fourth some it UK. the Inc. outlook gas. Fernandez And into XX Blake, you on clear then pointed impact thinking in Or European with a was around forward? as about

Jeffrey J. Woodbury

Well, that active government. NAM in are can't on (USA), over – itself time. will in Understood. Blake - Scotia Capital you. I Inc. is play the how we really Fernandez Thank or speculate discussion out with

Jeffrey J. Woodbury

Okay.

Operator

Gammel from And we'll Jason Jefferies. now to go

Jason Gammel

to terminal at and position making are consider Obviously, strategic assets? big you Gulf talk to building of the you're midstream the value appetite and back what obviously of wanted just low would to context Permian already I owning point about a to out? you want contract enhancing in on for come with the I that And willing have acquisition capital, been your Coast. position Upstream guess that Wink. Can chain. would to Downstream thanks. you you've own What put cost you the the Well, about across the integrated them

Jeffrey J. Woodbury

is value heard it's would we do, of Permian value to in we comments, for assets and one and continue look add be as things And it where what key products that chain, chemical the value a the and play the molecules value that's is, in the across that my incremental refined full relates It's we're chain. as customers, that from we prepared how highlighting because that? that wanted play, not really leakage that thanks way Permian. resource just the you along capture at it do we into products. or our all will we if whether Jason, to our pure value convey to strategy to that's message And the to looking chain

facilities. the very manufacturing On Permian, got we've strong Coast Gulf a

We got have the terminal. pick we've that Permian up capture. we a It a through in oil position, pipeline strong logistic flexibility this transactions control resource system made. and now very gives value us these We've

at do our the – there. of by can We all we you majority in how we'll of proposition that or value capturing assets, the chain like further way, our continue look continue strengthen we will a that to value shareholders are

someone missing just piece chain else we're line that value better our you and okay and the value we what add management. in don't we're be of doing with value get sight of it. along Now, of chain think may that that a I to, providing some there value value But terms things chain for getting in

Jason Gammel

Okay, thanks a lot, could, And Jeff. second the I just if one, please.

got that your you with can you but margin, from get synergistic combine existing that Singapore us the of business? the Jurong give think that idea the transaction when you profitability the incremental about times and how completed, PX just I that know some volume the we've Now of talk you some we has take transaction to from it Chemical assets? And benefits been can about can

Jeffrey J. Woodbury

still what aromatics remember, contributions and about fuel value that but it. not are from there's a also of course, is it's the Jurong the I is from you of additional us proposition for was we of not think there but externally day we have market the of got facility get picking barrels XX,XXX guidance And – the from for from site our about of added for put will But, it, as integrated the quantification Probably a value because said that me up probably coming bring big we to the the we've of think just well. biggest only best in the part between capability the facilities. the Singapore the that site, currently numbers leveraging what synergies out we logistics values logistics, full that unique Aromatics site on from asset the we manufacturing that. terms

Jason Gammel

guess guesses I Thanks, I'll just Okay. some then. Jeff. make

Operator

has from RBC next Borkhataria Markets Capital our question. Biraj

Biraj Borkhataria

my taking had two. for thanks Hi, question. I

there that some just highlight. risk release, from significant I just the one price you. the to In wondering Carcara XXXX? related into close the that to now you detail First whether peers, just slipping on just one payments. press it oil now. you could or is of was you acquisition you can on and were announced if just Thank that any these contingent year-end, closing was from are your talk through else if anything And could and the need any until steps one is the by to Mozambique, there's things second

Jeffrey J. Woodbury

Okay.

a first that waiting approvals On in need simple those to Mozambique, it's I still one, for and mean, really of we get on are we number the approvals.

objective going always this Carcara, to. Biraj, not not there's I'm referring sure to one and you're you're have On into this a what go But this, sure to punt really on As it's spilling to year. because I'm now, know ahead possibility I'm conclude to possibility. is that to. referring our right XXXX, what the I

Biraj Borkhataria

the says million press from get Just they'll of $XXX from payment release then Statoil you a contingent $XXX and guys million.

I on. So $XXX what contingent that million wondering was was

Jeffrey J. Woodbury

I really Okay. bound we're Yeah. the the I terms. under don't can't Biraj, – about confidentiality commercial talk agreement.

Biraj Borkhataria

you No much. very Okay. Thank worries.

Operator

from Jothilingam question. BNP our has next Exane Theepan

Theepan Jothilingam

just of Jeff, a morning, couple Good questions.

by wondering disposal Brazil. in was market been the prices there? some of firming in a see active how just have on actually. you more question, of first Firstly, active being you and you. Thank given some Mozambique asset my I side, the very offset potential particularly bit That's the

Jeffrey J. Woodbury

others the to that our the above I go asset element is assets incremental capture importantly management and continuing key program, a the expect of of value can operation. monetize what said bottom we we Theepan, where as earlier, that is on see ahead from those portfolio,

whether transaction. of that considering we always ahead type and are go complete We can a

instance, So asset proceeds $XX look were for at, the sales from if you billion. over five total our last years,

the we've $X it a pursue historically getting So But as billion of is element most our get value of to value and is ongoing on sure anywhere lines. from we're making one management go focused But we went proposition, I've and billion asset year, a that before, very ahead right sold. assets. we'll from said each $X it. various the ahead And business key the if it our to

Theepan Jothilingam

moves you've a that both in and to and recent prepared less that asset more in outside I of having Mozambique U.S. certain control you and about question the to second the positions? a in interested Permian. talk trend was terms had the very that – you're I control. onshore got to Brazil come transactions, degree then where more we back I'm And the of can Great. take Is much expect non-operated

Jeffrey J. Woodbury

what certainly and to exclusive and we to our I is is try we structure But in co-venture feel very and criterion. of operate, the proposition an is and is If much would the a the qualifications think go we've the that set value like we outcomes value say proposition influence can value those to ahead operators to that greatest allow operatorship, the go key fundamentally, the make capture good bring. But if contribute proposition and that's to going co-venture to to we extent, make us that the – got maximum sure willing proposition. of the up. here and doesn't the ahead value we're incorporated the all that there ability that can

Theepan Jothilingam

right. all Okay, Jeff. Thanks,

Jeffrey J. Woodbury

Thanks, Theepan.

Operator

go BMO Capital from we'll to Brendan Markets. Warn And

Brendan Warn

the one timing. keep Jeff. I'll considering question Thanks, this to

delays, had and just if slower to Harvey. there just reiterated But because and haven't be steam terms the impacts? development to production a of to of there XXXX and you the ramp-up are us you can obviously you've Baytown, cracker just impacts, update on in on an carryover XXXX, in project of Just give too much any going there's terms impacts

Jeffrey J. Woodbury

cracker currently, two tons polyethylene So Baytown included trains. million Belvieu in at for derivative And invested XXX,XXX-ton metallocene Mont just steam units per to new the recap, project annum. the for X.X then a whole we've

is latter and first up up the the starting second train the started has train On now. part,

project. we stream revenue a that So for started have generating

shut steam hurricane, and the activities of the temporarily the then On the middle part assessments the we our now, production completed. that next cracker, to And the was year. all plan get the completion of site right down were the early year of would construction resumed due by is to in mechanical once but

Brendan Warn

the update. Okay, I appreciate

Jeffrey J. Woodbury

bet. You

Operator

next Anish our TPH Kapadia from has question.

Anish Kapadia

Jeff. Hi,

The first question was on Golden Pass.

to your Pass? increase does Qatar in just rather So by ahead with the significantly how and suppose capacity than in wondering partners' strategy. And Qatar its I focus focus going own LNG fit shifted was Golden into decision has your your that I U.S. expanding integration production

Jeffrey J. Woodbury

it's a Anish, question. good

got As And LNG which we of invest progressing said capture demand all can I opportunities them earlier, we've number a concurrently. that in order to in we're growth.

Now, we Golden North largest We're America gas, so Pass key of chain to gas. the the continue producer North American another the there. progress aspect obviously of opportunity value is within

period know, important year. a which the of Department April milestone year, of was that to you happened of As Energy's of fairly an time, this after for in countries, LNG non-FTA received extensive export authorization we earlier this

remaining of investment for project, details well Now many is the finalizing bringing we're technical the being of decision. that the it that we're opportunities focused one commercial the definition But as on progressing. together elements as final a

Anish Kapadia

thank to sorry CapEx and get to I then to I once back wanted again, another I wanted to back to that. just you. just Okay, And had the question. go clarify.

I acquisitions, to it's an seems way out if billion, basis. strip the this the understand $XX on up CapEx like think going the basis, So year on you $XX approximately for year, next billion I an organic it organic

So and I is. bridge to that try what just wanted gap

acquisition does come Statoil from also the incremental XXXX included And the in announced the billion, from? $X you. approximately So is where that spend? was today billion Thank $X.X of that

Jeffrey J. Woodbury

maintaining And be it means. capital with our remember, decide of on there slow budget, focused we'll that investment discipline. that, up do trying replace down A that We're flexibility. an opportunity a And and selective fundamentally, couple what set One we when live may fair within being our in in. some our things comes program, very to is a is points. bit we're there's to

in fixed we planning I I'll a And example, not that we budget be all before. necessarily it's XXX% came are going it of staying allocations sharing our that give So almost to for Aromatics budget it's good ago with the process. executed for all. with you issued and and not with believe year whatever in think the budget that specific Jurong appropriate said I've specifically XXXX. was still our you a guidance we is up still

there there projection. And as will going – a in a So on things forward that result, dynamic are move change-out or some in level change-out and out. that of is

forward the look, If timeframe, this back that best key to presentation point. that in with you XXXX analyst those the guidance you that's XXXX you shared driving expenditures capital and at the we components were probably go the I've over got for and

Anish Kapadia

Okay, thank you.

Jeffrey J. Woodbury

welcome. You're

Operator

We'll now from Sachs. Goldman Mehta go Neil to

Neil Mehta

Jeff. Good morning,

Jeffrey J. Woodbury

Good morning, Neil.

Neil Mehta

from the said little InterOil, can out price close to that guys bid/ask valued at asset or Has example, are the or the deals E&P you talked you there. we've to was attractive right appropriately able that M&A you've Now done whether underperformed your a identify for sector not Jurong, weren't the that sector, bit a acres, Mozambique. talk about that corporate opportunities here, that have historically market? corporate you as perspective? has But lot Bass, other U.S. the deals it's started about XX,XXX Jeff,

Jeffrey J. Woodbury

we're any I'd you, that our opportunity would I way; Neil, potential tell not limiting respond this of base.

to what you're So we'll – an are to that up, things trying opportunities above there you ideally both. be where anything get here. benefits is, two achieve us at either be keep a trying acquisition, to to you want or in acquisition there market pick to it'd for being Remember, value material whether attractive asset values open One pursue. able you're or corporate add may asset to synergy both, or the

very there see on may the asset is a where look, past, we you've aperture we the But wide on in the acquisitions. as keep very full recent opportunities. value So we primarily be greatest where keep seen here

what some it had, so has and the assets were up most of ended being asset they single those same. acquisitions. Now, and by now, what's held company, these one right been to a that's But us attractive

Neil Mehta

a position years comment Canadian of Imperial then been terms the sands where bit there, is in just great. a that sanctioning just the latest it. ramp this? on is of anticipated little that, few follow-up, also That's longer ago, has taken at And do on Kearl your to on oil potential and Jeff, you a than business. the recognizing stand Got The

Jeffrey J. Woodbury

And that very this benefits organization chain has reducing have a Kearl focused not making not for to I'll some made, Clearly, I value grow job lot is continue right a up. capability But ramped remember, long-lived asset, we're the is of get credit full hard that the very I to are organization see and this. on they're Kearl. just we in the on we it. is value about just well. – worked bear the the the This give the as bringing on but And to that long-term said, And would really I in reliability have very full number and the good improving I now we the has as reliability. them asset, Imperial But as and upfront, say It we the thinking confidence have going progress. of up progress mean, value organization cost to progress I is making. utmost one great expected. really the structure think

of focused very going cycle, me down in say get And very really be it but we're in shy not to a that there. attractive work are be optimistic cost are oil way are to the to environment. heading. some supply before this we And about to and little – done a And able also further in is characterize get investments very forward. are but as we environmental and, increase the in the business will progress got generating thing progress, we the of tell great reduce are as we footprint. I very That we've a capability. SA-SAGD. building means this durable – Neil, well important got that terms the low-price at that but are think the get price future got heard go. it's in and you, we got we've it I acreage I overall return. reduce us particularly bit to for we've technology regardless to that this by where right, we I'd in we've point Around the that's point it. that we we're Not And we that cost, a a that return, about to where where important we the that on sands, is in But of So large the would say only you've it, are And we made encouraged technology position, as still substantially go very this organization situ

Neil Mehta

Jeff. Thanks,

Jeffrey J. Woodbury

You bet.

Operator

We'll to Raymond from James. go Molchanov Pavel

Pavel S. Molchanov

talk question, for for guys. acquisition on that $XX Yeah, year? are thanks to your cash XXXX, number, activity you you breakdown taking CapEx between for what's acquisitions? words, billion When credit of the for baking In about in other next and the guiding the organic outlays and

Jeffrey J. Woodbury

Good morning, Pavel.

plans be probably talked Analyst earlier, right segmented give XXXX in now back can going XXXX we I between I would at mean, best look we've guidance As how investment to the and Meeting. you the our

our our Mozambique going agreement, it are to here than those remember the transaction them ahead quickly. ahead that opportunities reaching typically up But our it's when going capability earlier, We're that, plans, financial come year. to a is going we're go say, to keep believe they to opportunities I within when pursue there they come we're CapEx quickly in some said to can We're budget. if proposition. keep of means, fairly investment appropriately. do we to other live up we come we cycle, going our particularly not a forego we like very flexibility our a unique And but of a I about go include will corporation, financial was is me manage and when, flexibility, in is, to all close very we trying what As for value think forward-looking up. come is go this that And And and We've opportunities. attribute in down this lot and that significant respond ahead got up. is and let

respond, and to You go we've lot and the of to able things. financial to have a and on be ahead got got the capability value expertise accrete these

Pavel S. Molchanov

right. it me. All Thanks, for That's guys.

Jeffrey J. Woodbury

Pavel. Thanks,

Operator

West And from our next question comes from Rob Redburn.

Rob West

thanks ones, me resource fiscal what's how Mozambique Hi, the something make are And behind you for you about invest? around to with is, call. new talked terms. at look fiscal Permian? opportunities fiscal terms you having ask or In to to terms is, the really Brazil, to or wanted the Brazil do on it question the be like compete as fiscal now in other terms much world, I with competitive those have the Permian what want the you competitive the And

Jeffrey J. Woodbury

they Rob, key that is, understand only I dollars. think resource of couple of but is the Yeah. ways. are a that terms quality aspect resource predictable, endowment, what's stable set international is how investment how globally think And seen attractive the are program. about investment mean, transparent That's And climate. terms for for One not the the most fiscal also fiscal very is owners competitive they competing it investment that have globally of an and fundamentally? and they to generally tied investment to are Are I a those you competitive, they are. going where significant have supported

Now, for we've it do a us, else. something or got either do Permian the got we've to or not kind of Rob, to is that

a said we've I moment got sufficient As ago, flexibility. financial

it the the package, full For perspective and terms and to us, our from a resource ability capture quality, market to ahead value get the is chain fiscal value. and go

always that it's So value proposition.

making proposition sure meeting accretive to fundamental we make our growing and value trade-offs we with are that is value full investments. that shareholder here, mission the the So are on

is that's once again there Now, geographically an is tie into of are to corporation that we've these And aspects very political the investment some diverse, I attribute got our very unique. portfolio decisions. and think that

Rob West

Okay.

on on you you part that I'm can't first missed terms in just Permian. fiscal that not the go was in it. or with question terms wanted of whether comment competitive the to I if back. are Brazil sure fiscal one just So

Jeffrey J. Woodbury

asset fiscal comparing don't share No, have terms. on I and anything really specific to contrasting

Rob West

well can your long case comes Let that XXXX, it have me in you Permian, it's has where procurement, constraining I was share pumping, of think point have then. I area one purchases pressure did with been made us? when known activity? wondering. Does avoid ask bottleneck of XQ scale long-term any you another is one pretty completion that you before in been wondering. that And better that well made to and the the it scale there procurement you've And and gives help some bottlenecks been that term-ism your that In the I'm was in

Jeffrey J. Woodbury

of when And quick with that in upon, application. cost something It the technology in those are our pressures, value you go-forward we developing see cost kind we how significant be all to respond standards, might of do more building react that, Permian, similar I in proposition make plans the increases potential unique in very and that's relationships a are and offset standards to we the earlier, is we long-term we've seen and as sure okay, alternatives. how in operating very very these in that broader me to. terms to where adhere really quality critical same we we're the Let perspective supplier Rob, to what is page it's the said

But has our some there's example. there pressures we that cost – of So by largely been XXXX, that in able we by have been seeing with reductions example, way way program in offset to been these drilling in some unconventional the inflationary are of business.

Rob West

Patricio Belvieu that one start cracker Okay. like sense accelerate you it us follows wanted timing just that? something looking The or quickly I a – to could think you're is going San term? Mont that on really a to finishes, longer Mont final Belvieu, of And you is the ask I really on give as when that

Jeffrey J. Woodbury

Yeah.

a independent of is again, chain. a – is So is. the – cracker This value it's this part Baytown of the where

jointly now, and per a X.X units would million facility in and derivative And For cracker, monoethylene we've – then plant beginning the this the Patricio selected – site out, begin partner planning is petrochemical working annum broader have with work. group glycol ton joint pointed on – a right and design to as ethylene for we've that be the phone, a engineering proposed we owned polyethylene a San our And you we're front-end County. been steam plant.

So very laid make we'd we'll Ford. once well with we on funding. good is point we primarily the ducks phase. moved the positioned we've we've coming to plan, the full Permian to get the from Once But think of in in it that feedstock the a row, take be where a whether we move then on would Gulf the Coast advantage the got Eagle forward a get decision all out and permitting

Rob West

taking for questions. thanks Okay, my great. That's

Jeffrey J. Woodbury

Okay, you. Rob. Thank

Operator

from Société We'll now go Générale. to John Herrlin

John P. Herrlin

Hi. Yeah.

quick ones. two Just

system? like Regarding it's years every but just where X, be Guyana you mean, know and two and roll I days, Phases X curious. I'm out this Jeff, early Angola will lot FPSO another I still a

Jeffrey J. Woodbury

want Yeah. manufacturing that my comments, think John, No mean, mode to quickly. similar. very I about get good you you if morning. Very into – really

If the our program, you've to – continue resource exploration we're obviously, to going the continue hopefully got resource. grow

get continue cost. want help because into will and manufacturing process You to to overall that curve progress that reduce learning that your

Block Angola on that keep it program on we I did So thinking like about the XX.

John P. Herrlin

discoveries the And Brazil. that's assuming zones by going Since great. question that then one Petrobras further to from clastics? it the getting a little away be me. pay for Okay, that, And are carbonates initial and you're are all you on or

Jeffrey J. Woodbury

have carbonate different we've pre-salt. are our with and that Basin, it's to are days, seismic primarily early we got going said, acreage picked like outer to the really Campos I is the some analyzing, and that do we own But – up. we of This it's wherever be we've in

John P. Herrlin

was got lot of the I can Okay, certainly help. Petrobras use in just a experience curious. Thanks. that, you've

Jeffrey J. Woodbury

you, Thank right. John. All

Operator

there additional remarks. And back Woodbury, will for you, questions, or Mr. to over turn closing any are no it further I

Jeffrey J. Woodbury

our ExxonMobil. I thoughts do your your Well, really in lot interest – And, appreciate our ongoing behind put appreciate you've time we those morning. we of and forward of and much good communications your look course, questions that this to communications, very questions. do

you. thank So,

Operator

concludes Thank presentation. This today's your participation. you for