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XOM Exxon Mobil

Participants
Neil A. Hansen Exxon Mobil Corp.
Jack P. Williams Exxon Mobil Corp.
Neil Mehta Goldman Sachs & Co. LLC
Sam Margolin Wolfe Research LLC
Philip M. Gresh JPMorgan Securities LLC
Doug Leggate Bank of America Merrill Lynch
Thomas Klein RBC Dominion Securities, Inc.
Jason Gammel Jefferies International Ltd.
Paul Y. Cheng Barclays Capital, Inc.
Alastair R. Syme Citigroup Global Markets Ltd.
Roger D. Read Wells Fargo Securities LLC
Rob West Redburn (Europe) Ltd.
Jason Gabelman Cowen & Co. LLC
Call transcript
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Operator

Good day, everyone. Welcome to this Exxon Mobil Corporation Third Quarter 2018 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to the Vice President of Investor Relations and Secretary, Mr. Neil Hansen. sir. ahead, go Please

Neil A. Hansen

everyone. your our in participation Hansen, Investor is Morning, call. ExxonMobil. quarter We Neil Relations. of President appreciate and Vice Welcome you. third to earnings This Thank continued interest

today call President lines. Vice for the on responsibility me is Williams. a with Chemical Jack and Downstream Jack the Senior is business Joining

significant production, discuss we'll performance today, highlighted the considerable quarter. third call strong in model. our a by very integrated quarter liquids are As we the growth operating from value performance, It and on our pleased in was business with

result, As cash activities delivered a from XXXX. we of the highest since flow level operating

financial completed we results your on I operating will prepared Jack accretive addition, following areas. and an on for perspectives performance, investments and will several strategic investments take In update quarterly made value and significant I remarks. progress key and advantaged his projects After third our to on Jack questions long-term and happy generate shareholders. give several provide that focus our the will review be quarter

comments slide information of influenced the presentation. to on third number cautionary of I'll on now our that Investors section X, your the and would slides website. end quarter to the reference this I morning the our attention also developments slide to which statement available at like Our the performance. supplemental of X will draw a move the summarizes

to primarily the net that one-time activities were This to As tax. quarter Corporate to of it's favorable I $XXX for the XXXX. to mentioned range of we was was $XXX in items the highest quarter charges four outside million experience. previously, operating from million, absolute dating due million third related flow been typically years, back cash $XXX the

$XXX up and the to the be by it's $X.XX. Now second quarter. $XXX WTI with to Brent Permian increased tight the charges million end relative we the increased normal quarter $X.XX oil to fourth high range to Crude slightly at during million. oil quarter, production of note that corporate expect prices of important up XX%

activities also third Permian, had delivered performance and while We to of and of the where the XXX,XXX in in stronger manufacturing production ramp from up drilling Canada, integrated continue operating quarterly record value in midstream downtime operations. quarter We lower our the per levels maximizing barrels net day. Kearl

impacted stronger midstream Europe, quarter. also differentials Upstream the to sales remain costs, higher up quarterly U.S. growth portfolio in We Improved than Downstream feedstock realizations business. the facility logistics stronger demand long-term fundamentals in of coker A Guyana We Permian delayed tighter higher-value Antwerp our proprietary moving and minimizing in milestones in North discuss significant a experienced started contributed to contributed IMO long-term Brazil. Improved our Canada distillates and crude results. call. a remove Downstream, utilization in will that to the successfully ultra-low resulted hydrofiner the our by of from increase and by better catalyst our manufacturing improved by increase the per we to marine ahead maintenance of Jack and strong will at our further number XXXX. offset wider were scheduled achieved In while reliability production primarily weaker a from barrels quarter. margins facility loss. Texas, We a products, fuels a during to later significant margins of crudes Chemical strengthening also Singapore bit supply capture line on with while advantaged our facilities. significant Western this ethane. in coker using in will gas scheduled Beaumont, refinery. In our XX,XXX at more turnaround octane day, The sulfur, Antwerp supply of The at will hydrofiner value margins successfully fuels and lower plans the strategy new leveraged capacity The sulfur earnings delayed oil, America. grow also

We This start-up ethane million and per Texas, X.X cracker the Chemical Coast. U.S. our chemical at included to on complex. ton metric Gulf the of expand continue Baytown, year manufacturing refining

Now moving which third an provides overview results. to of slide quarter X, financial

quarter Third in operations $XX.X quarter. billion earnings $X.X up $X.X billion including sales or flow $X.XX the proceeds was share, asset per from sales. Cash billion, from asset a were prior-year XX% from and

billion. quarter CapEx Third was $X.X

to the investment of billion. and acquisition increased including progress in to first $XX.X plans, continue three through growth of the activity the the long-term Brazil. year acreage CapEx support was Permian We additional quarters our in

debt as reached at the This the we've proceeds of from had in the of to of lowest if second Cash retail our $XX which the the approximately was full-year billion. investments billion about on of $XX billion $X.X the the XXXX. $X.X quarter exclude increase, And above that more was than to which after operating flow Free enough pace $X.X decrease timing closed ended fourth of to a normal billion, we've Debt remain primarily a compared we billion, Now $X.X end $X meet the billion due increased result, acquisition the guidance cash cover at level of of the quarter. end quarter. quarter. you in Germany divestment, incremental acreage Brazil the to since levels, dividends. billion, to

reconciliation So before performance. with operating proceeds Permian contributed we impact look increased billion, and October more but start increase. prices again, growth earnings impacted cash. Upstream Upstream earnings a $X.X the those this billion the relative in the quarter of I'll Crude Liquids X%. day by on flat, were X the closed ended, and the differentials. don't our Gas quarter to receive quarter. results of realizations did We quarter, the detailed second of Western wider financial review to Upstream the $X.X at received by essentially provides a Canadian and Slide have results we X. a transaction third

estimated and benefit million. million. impacts in items increase one-time million we from the the absence $XXX earnings. we of absolute Downstream. earthquake but have given included and at to scheduled million, An takeaway $XXX $XXX $XXX that the logistics Upstream of unfavorable integrated and to Upstream capacity more exceeds quarter tax position, of lower on – production Lower us third allowed value our in in the to that that net realize and the of to Upstream the Downstream. our this captured estimated addition approximately $XXX saw impact by impacts Other downtime, downtime favorable Having we our PNG million the a corresponding from wider manufacturing – volume recovery allows in increased was – us earnings was differentials look However contributed those production,

a including driven and the Permian continued production Gorgon. X% production to third improved LNG and Kearl. per of day. the downtime lower of production of to divestments, with increased X.X quarter moving the by a Exclude the volumes up million day, a the PNG, an Now gas on growth X impact slide Qatar, across highest Natural entitlements growing quarter Liquids X%, in per and at operations as and result was year. on comparison Oil-equivalent second oil-equivalent this quarter was in the X%, barrels improved increase of value. were continued of portfolio up focus volumes barrels Upstream and XXX,XXX performance

lower $XX or by the to quarter third improvement we last increase relative and carry earnings $XX volume year. largely on $XXX Downtime barrel give to $X.X total value online. was update, unfavorable This prices outage. our the year. the by and year, to from in Moving captured results, comparison of from we production by Upstream Canadian were Hebron, Again, X chain by impact volumes. comparison third realizations per earnings period in a the driven second driven Western impact relative last though gas quarter in partly last from million. compared increased a Downstream approximately Syncrude of same to of a Other cokers by growth, quarter estimate by by impacts X and to third in that And third increased million. Oil-equivalent all day. XXXX. billion, us decreased U.S. earnings per of just largely declined an Liquids volumes over our crude the quarter The $XXX back slide as Slide a of at barrels benefit million. and Syncrude natural of unconventional XX,XXX you quarter was with $XXX to offset million as the XX% XX% mid-September Higher wider Upstream differentials entitlement the be prices. approximately was Permian earnings fully-integrated by estimated provides driven

U.S. came of from Increased downtime and at second increase decline growth of year prices, and This carryover up to you in volumes. more X%, if liquids fields. in Improved resulting this portfolio. production performance the operated the was exclude efforts gas by assets Gas entitlements the of driven on value divestments XX,XXX, Rockies was focus the outage in the number including quarter of Permian. a assets. growth opportunities. again, Liquids in Norway XX% did in our prioritization Syncrude. and quarter unplanned the at the volumes significant volumes, and is ramp-up reduced However, Kearl with in liquids over also the by continued as entitlements, production And with impacts by our and led U.S. the mature our increase continued important, from contributed was mostly higher unconventional growth our year decline offset at high-grade Lower Permian increased of unconventional, than impact aligned divestments, than and more Hebron. Bakken again near-term from largest to

Downstream margin with integrated Stronger I'll $X.X $XXX wider starting a capture now crude to billion supply. operations Downstream and financial Moving our quarter. proved by $XXX and operating of review and business America increased second from differentials with first of million significant contributed in to slide earnings. value in third earnings quarter strengthened by Europe supported Refining results, North comparison million, the to margins X. model. tighter the

levels earnings. of facilities reliability previously logistics absence you, by favorable $XXX quarter. estimate to to $XXX exchange the let Permian benefit scheduled absolute versus quarter's foreign But in As And and the to a and enabled positive connect we The wider allowed approximately mentioned, third in earnings integrated contribution tell immaterial. Canada Western earnings unfavorable improved previous manufacturing last increased Downstream us was to barrels impacts from from million differentials. quarter network me the $XXX significant our the capture on Lower to of to impact million that exchange impact million. the us foreign our maintenance resulted be

included was And items then mix about million sales asset a gains. and help. finally, it right. fact, In other improved refining All yield $XX minor and

fuels XX up impact earnings slide Margins had and that lubricants million. for than million. Asia Hurricane negative in $XXX of comparison margins of the was mostly of quarter earnings $XXX a relative more driven relative lower Harvey the supply Downstream slightly impacted year. this were third our resulted moving prior absence also Now the of current year the tightness and The Europe And from earnings and to to Downstream quarter by quarter margins. Pacific. last on

before in than the we've across $XXX Downtime basis, in successfully benefit offset wider the year-to-date you for $XXX And base of benefits capture last earnings. absence from were of With items fundamentals mix. let sales costs maintenance ability if impacts $XX third and downward our additional million our yield Now gains, the a a in some at chain differentials. to then perspective improved year. minor Canadian earnings negative by lower offset to compared look last more on, I refining give This and impact that me you Higher again from impact from and quarter-over-quarter approximately was million lubricants and activities by Other impacts and experienced higher Permian lubricants U.S. million margins value partly on margins. approximately feedstock pressure it from the lubricants expense million market resulted margins. resulted softer quarter Western move stocks, asset negative on maintenance year. Harvey Hurricane of was volume the rate, reflect and tax $XXX from on

quarter. slide Chemical starting XX, of operating the on to now with quarter comparison financial with third the results the first second Moving and

$XXX prices decrease. $XXX Singapore by in offset aromatics polyethylene margins. were maintenance, driven million, in impacted This Margins planned U.S. and by planned was by negatively polyethylene earnings $XXX Chemical million, impacted by as though million, partly by higher earnings by $XX decreased a This by from with quarter of higher-value new Third was ethane million maintenance contribution stronger higher mainly mostly increased assets products. sales offset million Downtime volumes increased Sales demand in our activities the and driven $XX Singapore. turnaround and margins. mainly earnings growth

some included unfavorable see there impacts. you foreign items other exchange The

review It cash. driven we turnaround. operating Chemical assets was of last new a in quarter margins and our $XXX now resulted year. absence as a for unfavorable current from projects, to Other slide to last accretive by Singapore of feed decrease turning Now an sources third and relative of the quarter product sales XX and earnings. continue million, portfolio position stronger items long-term And was costs Downtime the also an partly Hurricane Slide million; by outpacing review again and growth. in XX the higher earnings Chemical on Lower new by maintenance earnings had increase this of a supported realizations. by of $XX expenses a upcoming energy $XX for to negative year's offset Higher impact uses included of Harvey. improved from impact provides ForEx impacts the of assets. and sales million, had and

capital, depreciation operating flow $XX.X quarter earnings, for adjusted in and in billion changes activities. cash Third working yielded expense from

in quarter further contributed fund the again capital investments sales to quarter. cash year-to-date billion sales also third reduce line industry-leading previously retail debt levels, shareholder distributions Cash with shareholder $X.X In flow divestment, proceeds to been operations our investments billion in the $X.X funded with financial strengthening respectively. quarter, closed mentioned and distributions. fully and the including flexibility. in $X.X asset and Germany allocation from and used our We've Asset billion able fourth which the were strategy,

it this by I'd over balance Our like prior additional made and timing sales the quarter. again Jack. quarter discuss Meeting. turn the asset perspectives third performance billion time, progress outlined was at strategy growth on of will this driven He from was some XXXX provide proceeds. ending of on At billion primarily cash Analyst to we've to long-term And the $X.X up we the $X.X the

Jack P. Williams

today to folks like their today. ExxonMobil. you, the interest And on for thank all Well, Neil. I'd line I'm be thank glad here in to the

more Let third quarter I'll the go me with then that's into of updates a quarter. strategic make very pleased And the progress. We're some comments couple progress business in about the the on results. reflected

we're reflects has one you line with in both we reliability. significantly and course, is ex Downstream, of year-ago And earlier, as divestments, that expectations the October crude both that look level key continued strong growth positive if really the the value of this in And Downstream, of into very we're improved This very areas First, the versus well, and pleased from March, more Edmonton well. well, we volumes five at that Upstream it and And value benefits Upstream, integration the bodes quarters that you and and that's growth Coast net performance the we if contribution by much sequential our just entitlements of the logistics and back refineries. Gulf low-cost the mentioned Midwest I'd that's in and the feedstock course have. also it's add and chain. about the Neil Hebron ramp-up of well. our contributed seeing going the enabled the talked for as across we're in the purchased capturing quantified as as Permian. ongoing also Midland and with from In position

Now industry own, Chemicals of benefit the turnaround supply activity does of seasonally activity. continue should business. line growth, in the the the recent change near-term business, which maintenance this our to view not of did strong. levels. from quarter refinery we are attractiveness fundamentals some seeing impacts Downstream second fourth including remain see And In The our with long-term scheduled quarter more lower in you

steam the new remain plans of by And Baytown start-up recent that's cracker. track. the on growth Our evidenced

a So in all, good quarter. all

the shift we highlight key I'll to catalyst And for Downstream deployment our and products. was yield me of that's higher-value driver talked growth through largely earnings some a in Downstream making businesses. we're with Downstream. progress Chemical our So slides few the process and in about the technology. grow is this to the start reconnect cover of proprietary a And let now what

advanced this the other hydrofiner, now term, for Rotterdam are the the up and which year-end. through three are Beaumont are Now hydrofiner coker, six And crude just Three in expansion, start is the primarily and Antwerp Singapore Fawley of of online, the near projects. which then the hydrocracker, advantaged shift project. these upgrade accomplished and is completeness, should light around Beaumont both refining the yield

And couple both, comments from generate these So advantaged, of cash just that mid-XXs is benefits hundred discounted optimization collectively integration needle as When also a of on projects are or when a I few there's to big are other But that. say impact those really well. mid-teens projects, application that to primarily in what there having those primarily, either to I that mean due I returns. technology flow projects a say movers projects six regard. in or smaller proprietary terms

barrels our the fact, Downstream work you scope And area of XXX,XXX integration Rouge. to a a performance working Baytown think intermediate barrel have progressing conversion small pipe-still that plant unique some we're replacing And at hydrotreating logistics of turnarounds, gas Beaumont. great We're already just we this value Coast XX% purchased matter chains. really and just teams at projects. and feeds advantaged for example continually are on existing a value in an very and we're improve a includes assets. think logistics atmospheric the in a As more on adding second. day really reminder I utility other a a of XXXX XXXX main quick Beaumont, attractive is as further additional talk about pipe-still optimization are and And facilities. I'll And on position day a capacity. over products over that utilizing our today. Baton project. in the a our it's And Gulf the to position We're But we're expansion how of those, XXX,XXX On integrated building the capacity. the generating these capture the of about strategic us across the that that's Permian,

So this project highly is attractive.

You're of essentially large-scale unit for project. cost a the debottleneck getting addition capacity a

complex attractive the Beaumont very significantly profile. very, So And earnings project. improves it

– Okay moving advantages underpinned about, spoke access. on to these are that products, Chemicals In these now Chemical that proprietary the of in early steam projects were we we XX and facilities, in manufacturing XX%. early Chemicals. March to quarter. our Baytown integration, performance progressing all third market started increase are Seven by technology, new talking with cracker product manufacturing capacity the by global up competitive We're XX operational, and the actively at of

So liquids China. you to our on with we if but want year. expand forward, that new announced Beaumont slide, I cracker We're we've should in growth that just progressing a have the I expansion the up ethane a polyethylene later to a I'll middle cracker point of look on pursue a And new in track leave Corpus Christi. we're in with start next plan plan. Chemicals these recently

based at on Antwerp, now Start now at barrel come clear provided make this it process in but we well. our And is the day for as was spec we I attractive want see XXXX, circuit couple words, here a entire coker. But change the going of center project And in to that located it the FID resids just project the a to knew other potential This not back when the of centrally spec we're trendline So can that you map so margins. manufacturing Antwerp is the to stress to effect. of coker northwest here change fuel that third-party was can operational. is from Europe, located At XX,XXX that delayed this the it's want showing resids I point bumper the was with it's coker. industry updates. on And business a process In IMO regional planning upside. European on coker. into we're time

upside. to of it operations opportunities to we typically the XX% achieve Of we're And upside, time. debottleneck likely the capacity achieve able timing more another in over stable Once we'll coker, get course, looking for going on today, about further we're that be looking at the start-up that looks throughput additional XX% increase or very unit. to

coker also spec of XXXX with as Europe to for we're customers. of going and our the the fuel product in well, the a oil the to rest us we'll onshore And And who global marine ship this low to high-sulfur most IOCs. positions coking continue of But So the option owners invested fuel for any gas capacity well offer shape a world a we're course, offer in sulfur of oil in IMO change. the good in oil scrubbers.

Permian. the to on Moving

We well in the the both chain. positive across starts where value acreage. the in the It the with the Upstream are northern continue and position, of Permian Delaware resource on we positioned to size quality full see indicators Basin the

left You in growth can that chart making progress see we're good on potential back versus the the the March. communicated on

coming quarters. committee the Still XTO excess XXX,XXX with too. a board new growing was XXX,XXX capacity their is the day grow Today of refining days, there that Permian And Currently, with team, We more go operation. to that was the to from They're going good vector efficient a transportation clear management to in today circuit. Coast up barrels but of in to in team about ago. It day And our the went excited starting we Neil ample the And even ability really they're the our hit see Downstream, is see light has incentive – production equity have it there. there. the very day out really And XXX,XXX And to to a energized. again, further and crude is barrels barrels capacity. committed the a to refineries acreage. secure fact, the run on developments. out that's team looking in the early Gulf the we the there provided this likely And have was Permian. this out vector of well let stride. there very was results us. out Permian about seeing entire Our in up clearly I is month

about expansion, processing And Permian our working add addition Singapore XX,XXX light we're to addition capacity crude projects facilities, sites other Coast day. crude Coast a to outside in smaller the on debottleneck our Beaumont barrels to crude XX barrels Gulf some we XXX,XXX In including then to another cracker. three at Gulf ultimately our other run the to take integrated over U.S.,

left the Year the billion a is and the showing value Mark value XXXX made from seeing, the chain. chart environment based prices current this the environment, $X.X approach we're with of integrated chart from lower in On of earnings the (XX:XX) well to date margins. Permian. highlighting over across the actual our on we've it's And it's clear

So say partners last X JV have large to progressing plans that's the provide on and to anchor an will day crude and be and also going here, the both XXXX. owner given other is both thing And like growth I'd a a system million line. we're Downstream refineries pipeline our to for the transportation plan plus we Coast with Upstream to barrel is efficient we an planned long-term outlets. shipper start-up Gulf the in FID our next year, in

Canada Western by on including also owned full that that operating crude, West of Western of Western fully a And partially a position across And are Oil Limited]. even position a Upstream Canada when valuable ensure on assets facilitate value and midstream or is I crude to to somewhat the full chain our slide, with to Downstream the clarify positions in I'm the here, really capture IOL IOL, Canada Moving value All and the up our Canada. differential. say when [Imperial development we Permian, we strong large there. logistics everything there's just they're course of this and WTI/WCS similar

Kearl. interest is comprised our the and and integrated And Canada; large Cold position in Our with Lake, in Midwest refineries three and processed processing capabilities. then Gulf all at is Billings all our of production heavy facilities. Strathcona Sarnia oil of these U.S. And Coast Syncrude, Upstream of this and primarily refineries; Joliet

capacity During growth and XXX,XXX Edmonton. Canadian invest days day allow Coast U.S. the to out-ramped of that's in a we early transportation made capacity. a to efficient the stream, case on bringing Gulf in decision production pipeline rail to terminal rail Midwest in unit barrel the And Kearl

As refineries, increasing down to of terminal and in option another is this pipeline Midwest in Coast rapidly the you constrained our we're a XXX,XXX of committed environment, a to That grow first running which Today, utilization quarter addition by terminal. day barrels this transportation next imagine, XXX,XXX can provides Gulf about the the current year. barrels day should to pipeline this capacity. through about

positions this are Our in like and Downstream added quarter. logistics chain Permian, unique, the significant this in contribution earnings a value

Moving on over position it number shows where shown the the one And here number in in back was March. to of chart or Chemicals. market we're The left either of market. the Chemical XX% our product sales, two

of on the have where market have manufacturing facilities they're on added the seven new products focused five of stars Our now position. online we already as MTA many are about that red additional a capacity. And shown leading chart, the in

that of we're And commodity the plan growing Corpus MTA progress and project site overall Texas. steam X.X to completion superior have performance achieve, about new a having. Chemical of glycol to derivative cracker continue We price environmental two with along on that all rate Christi, products. double ethane facilities to polyethylene a capability a with near They're units currently the growing of ethylene pending September, is Chemical sales is direct at proportion announced liquid significant we these cracker our steam performance produce characteristics, sales. of about an a crude performance start-up China's XXXX. they than In of And The due commodity a the in products polyolefin about new average permitting at is for complex pursue the XX% agreement domestic higher Chinese Guangdong Singapore operation. a similar cracking a market. which unit products, are will to process. XX% we're our of And to in expected current province Construction

bringing more a So bid which to up the fourth offshore two-thirds other – now precisely In fifth of XX,XXX our than end In to year the round, date, were let we're milestones on XX made few blocks, Guyana, and quarter. up about build to Titã we well. about the with me to offshore discovery pre-salt successful highlights that Guyana offshore the – business not sharing – the block, in our bidder ninth of Brazil's Basin. operator. Hammerhead-X the acres well and potential the our second wrap adding acreage the reinforces discovery we net since of This

last highlighted Neil think I we've as added rig. exploration second a So month,

development, up In the fast-tracking And rig Pluma Guyana. also the Liza that in fact, well. exploration now X can so verify has spudded certainly Phase I looking is the we're vector

liquids XX% production up growth and Midland July, XX reach second the rigs to running quarter XXXX up first And XXX,XXX XXXX. It's started the is in Angola, Delaware on continued. expected FPSO in Kaombo barrels And in basins. FPSO a planned late successfully In Permian to day. quarter production with a Our start currently tight mid-XXXX. up we're versus

Moving to the Downstream.

proceeding with stations now retail expertise think Our October in be completed complementing sites Karyatama] is rate progressing positioned (sic) X. to [PT competitor motorcycle been track. three market. Federal fuels in we've per Recently, Mexico, of we're lubricants we a on Transition in And acquisition well well. strong offer. (XX:XX) Federal The is Indonesia growing lubricants at mobile a is Germany, lubricants new our our the well. divestment And was retail entry is week. market streaming the new

model and Terminals So completion year wholesale at we're divestment end. there. Refinery track for Augusta the is moving on to branded our And

elastomer Mont Wales, And the expect next in sale for the year. with factor line the $XXX not planned the expansion billion cracker of Start-up Newport, now and line our a for in earnings the well, And million from the service remainder our combined commenced both the the new about the second the being could one mentioned the Augusta $X fourth going polyethylene that the benefit has mid-XXXX. with in Santoprene that Belvieu. movements first forex Germany we if expansion plant start-up I start-up will planned progressing final at Chemical. to and and project, So that's production of And take Downstream divestments specialty Augusta Beaumont moving quarter, Baytown ethylene that's earlier is earnings. to does in to impact from close

Neil you the with with for And of wrap let and a of the and growth Antwerp to Guyana track important the coker Permian. by a that we're to milestones We've our upside some plans. back cracker in in Baytown hit it start-ups. hand steam we've I before bit Q&A, – me So just seen on telling couple the up start

are feel good about underlying businesses our I where So the and positioned we're on. today path

us. We I are organization of very can it. is hard you on the the opportunities front And working all in excited about assure

Neil. hand that, with it So to I'll back

Neil A. Hansen

was and do Thank go Great. appreciate for you wonderful. trip. that on the Permian letting you It comments, Jack, I me

Jack P. Williams

problem. No problem. No

Neil A. Hansen

We'll more All to questions that take happy be you right. have. any now than

Operator

one and possible. Thank question-and-answer with many up, Mr. The you initial electronically. to as that questions as Hansen. be you, for moment so everyone Williams pause questions to And a one Mr. request follow chance we'll session will we limit to the take your conducted We signal. may just that provide

will line go Mehta of Sachs. the to We first Neil Goldman with

Neil Mehta

here. quarter and Good a congrats morning, on guys, good

Neil A. Hansen

morning, Neil. you. Thank And good

Jack P. Williams

Morning.

Neil Mehta

you the maybe LNG talking of Neil, about cadence start could and off by projects. So, Jack just

we so And there, different are in that likely upside we think about how what I Golden that just options whether got and investor out And wondering the the growth? the projects, as some PNG, of to that how most sanction? You've Qatar. many terms potential you with you're should would priorities stand So of is key cadence you'd an of out of community think helpful. be the Pass, if frame are it about Mozambique, thinking When? where

Jack P. Williams

Thank, Neil.

if chime you can Neil, Let me like. and off, you start in

Neil A. Hansen

Yeah.

Jack P. Williams

Field some expertise are New happy resource. area resource look And new bringing there expansions as a think real the us, big unique in with PNG in from Papua at the base. foundation expectations. above of on U.S., any the we very building Qatar have that market. success then to we continuing for very course And well. We in of opportunities performance both in portfolio have project Mozambique, continuing here on large that's Guinea, that with Golden to in we're bear the North obviously, At to interested QP. achieve We Pass with to LNG bring we're the and

So forward. see LNG all PNG and projects Qatar, behind little trains, of the new that the cost in allow go obviously Naturally, may that it given little quicker. the – that we they're as onshore little a make term I to possible. the Mozambique demand those bit as would pursue attractive. supply would to opportunities, in with But longer offshore may say of well. trains, But would a bit coil all We a soon like these certainly be a as terms all the that low is growing of

I'd excited all proud And find capital parties our those. what very tell Neil. to all in front opportunities efficient terms where But of about we're deliberate have pursuing We wanting So of all we is there's in the of the you other all of are way. them and typical we in in pursue us. them, involved attractive. We're that them of cadence,

Neil Mehta

The up increase I follow we've some seen great. is That's unconventional had M&A. in

of your as lower a last the then the the over peers well deal doing the One And in some independents here course week. XX. of of

on Or XX, thoughts to through do decently couple it over months? market, pursuing looks some the the with last bid/ask to especially having growth of the in transactions? the it And latest shale lower here organically? pullback do your wanted whether like a Just just in players the what

Jack P. Williams

Yeah, thanks, Neil. yeah,

it your earlier in mentioned You question.

organic very barrels, about an from that, billion of that estimating X plan. standpoint, basin. now earlier. a Delaware total growth we reinforce billion just we're exciting lot X me We talked Basin, the that room. over that Let northern We acquisition, A had in running big have

might ourselves certainly to to maintain financial all play present we there. after that. think We continue for a to be strength we to And So strengths. environment go we in the to that our Having on scan opportunities that, an attractive opportunity. said lot that market able unconventional find the does do any capitalize

I think continuing thinking about bring certainly say we strengths. really development we're So about we're look. can as of our that to would we where those kinds opportunities,

But a us that – And undeveloped that's many lot and increased something large noticed, we our plan. the give is there. counts to would like going rig growth. our We like have in may to Permian have you feel up aspect it. the do growth So organic a vector is substantial as years of

got – our a but lot plate now, we we to look. lot to continue a And on so right

Neil Mehta

Neil. Thanks, Jack. Thanks,

Neil A. Hansen

Thank Neil. you,

Operator

next Research. comes Wolfe the Margolin Your question Sam from of with line

Sam Margolin

Hey. Good morning. Thanks for on me. calling

Neil A. Hansen

Sam. morning, Good

Jack P. Williams

Yeah.

Sam Margolin

commodity I've aren't And question, I'm the people with. internationally encountering first especially But challenging, I've momentum up terms question been been are occasionally gets And in that maybe brought around answer are able Renewals renewals fiscal sort up afraid fears sort to of that come there's relay limit you're strategy? scattered if U.S. you at kind just the as how a you unconventional high of lot the first in my U.S. If investment can with that about it's functions tightening. rotate community. that And to it. guess your unconventional going are going business Can that there's function business are a that to than one of I And to offset a cycle into besides prices. have contracts headwinds? to better you be an talk is the at of that a And of are as risk. international short attractive. sort if world just to can of a margin? of business, true, all? – those just your of where kind the growth not, if you unconventional But refute seeing volume that's whether generally, can capital simply there's a that, strategic

Jack P. Williams

plays chime that unconventional. I more let first, around and But mean last Sam, on of part Okay. in. kind strength place large strategically, just with of it Neil go the do with see the that we the start whole want organization me question may to our short invest. to that unconventional than the We view cycle have. and unconventional it really to do we

and unconventional strength of characterize the as certainly our So strategic corporation. I a as U.S. would

to with question back What is XX, say terms would earlier And around that your so of operations. getting XX, PSC – to extensions we and up, we terms, part and obviously extent would at recognizes a resources extensions PSC expectation, had negotiation. we the owner time by typically resource come the forth. hope we the certainly progress extend, of our the Now XX required, are the able those that I and in we that would years time. point to And bring the are fulsome hope extend strengths that that

terms of play to the So we've I of would wouldn't a a of and position comes certainly pre value about when. go out start think those to of out And going decisions. But want we types start to of terms where that in position, terms things those the in into with typically strength are I – from talk resource. in what delivered

brought is and this talked time. thing around think overall other we made and environment were fiscal of when in is the about The comment talked terms to five out forth, tighten you like when point growth those I'd to acquired so portfolio these in the about that we March, about and areas our into starting back at

so where of the had some the getting So was forth. conditions. hard we where in and tested reasonable were bottom-of-cycle – we those at at all terms reasonable basically environment kind of of terms brought the bottom in And those cycle, of all

it the are all add? Neil, So things those tightening projects think anything makes the those you attractive. to more resources now, that and extent to

Neil A. Hansen

points, execution. of reiterate we history only maybe a and the thing, those Jack, of just other Yeah, long some to have

We have I'd a Permian is tend a owners. resource choice. other be to that extensions give being our successfully flexibility, an renegotiated past. of The does good that. the relationship We certainly of thing with portfolio example only us diverse that portfolio we've The in partner multiple across mentioned the say Jack

pending don't So any on I concerns there's think near-term fiscals.

of And going on might we're certainly mitigates think making that good fiscals. we have to focus from risk the we to deliver, say any that deliver I continue you what we sure relationships. deteriorating establish those we

Sam Margolin

that. for highlighted you And have of plans you refining. for investment with the you integration, maybe in period. But follow about and takeaway the on it besides Western up focus tight too, just just think of crude color. intermediate of how of is lot Chemicals and Canada sort thanks all But the from summary full obviously maybe your There's theme Permian that some a very those been Gulf stages too. quicker, integration. just if suite has of But Coast. the from my of Well, And this takeaway frac on

Jack P. Williams

Well, there. I comment a can make

disconnects the Canada. get think that with through we'll way thing takeaway for the capacities chain corporation. really are there doesn't true going it all those accrue value that the full the to accrue at is chain On through And the terms these thing the or broader value Permian, higher and we'll of our or midstream the those Western being about that value same to the wellhead, the in But not crude we'll customer. value across value either – accrue of instance nice question We'll whether I of Downstream. disconnects, the the in and value in matter price is we molecules really the

it's Now transitory methane quite What stream on fractionation capacity the And a now. ethane getting the NGL that right see frankly, ethane a that into out issue being NGL capacity. there. constructed And tell built, going issue. of you We certainly that's away. that and the there's more right fractionation rejected is plenty We I'd see lot of on now. supply

But that's I'd in transitory more I So of say a And matter a of get span the it's of over sort Neil? think get that's going to resolved going issue. to resolved. XXXX.

Neil A. Hansen

Yeah, look X% reiterate. for term very Long demand above remain Chemical growing I'll business the at We fundamentals over time strong. still just at GDP.

investments these We pressures. on to we see time You'll we investments when you'll see don't term based cyclical online, those the fundamentals. long these to where try – bring times attempt make

Sam Margolin

so much. Thanks

Neil A. Hansen

Thank you.

Operator

Phil from Your comes with next question Gresh JPMorgan.

Philip M. Gresh

Hey. Good morning.

Jack. business. First from seen much And year big we, for in hit you Chemicals on investment there to the area business, of headwinds we there just the area have maintenance were a the I pressure But I profile of guys. the in earnings third quarter. wanted for some on it's know was If the some

a just in could bit the And just your on margin more outlook here? maybe the various elaborate of businesses? you thoughts So terms for

Jack P. Williams

growing of do increases, depressed look see with And now. ethane we much we it term feedstock polyethylene aromatics part and mentioned, those a year, demand, margins. had fundamentals of the the the the a just better U.S. issues kind And of now longer Neil business the In still have hurts margins. early ethylene shifted good. The look Sure. bit. the

those change of doesn't cost few for We a of those term things still there's supply. analysis of So terms fundamental on. in all think growing our investments But kind big are advantaged market. investments. the going supporting a see near We it

are these we that to them unique as have products that also online. enhance performance bring projects We us our

and So made as like we that a fundamentals, that at business making. we the look we lot have like investments the really are still and

Philip M. Gresh

Okay.

Downstream lost Second the question, assets two mentioned and had be, What the you is just numeric one earnings asset sales expect in a impact quick earnings to the that would impact you see. figure And out on basis? a for part I those asset of of sales. that's sometimes. harder lot that's a both from go-forward think have Because the guys – us to you

Neil A. Hansen

sees that do. Boy, we the value I'm look not we sure else for than divesting Obviously, what someone we at forward. when the asset lost when going assets, do is value more

were we we when number we you keep is those to these keep what assumption on getting what more we're we individual what out on But have can assets giving to assure we're would were divestments, than than them. two the a we that again so if specific don't we're get would worth I them today I getting if them. of value is But sell And more up.

Jack P. Williams

Yeah. Yeah, I would on agree that.

Philip M. Gresh

last Okay. If one then. I could one just ask

Neil A. Hansen

Sure.

Philip M. Gresh

a elaborate had Thanks. some could affiliates had you stand first to big flows, cash little in you on where at from point. you on the expected from a Maybe bit deferred the headwind that. you a we On had would taxes. just think I reverse And that quarter, headwind

Neil A. Hansen

did that we non-cash favorable the see one-time quarter, for items tax those the impacts from mentioned. In an I adjustment right. you're Yeah,

full some If see in when come of and happen. we when terms you tough to will predict timing earnings will It's always equity the year, look that in. on dividends companies

was that in first in the dividends we have from I come mentioned the companies. seen think we quarter that case. And equity

these is consider accretive investments may over companies prioritize to also thing important dividends. another think equity I

impact is seeing of the probably I think so biggest one basis TCO. the year-to-date things And you're a on and

that investment. the So Tengiz holds our is TCO equity company

project. And that dividends they're so over in investing prioritizing obviously,

always some cash companies the of tough with supportive some There provide will So we're shareholders. come again, in. to will But timing continuing those value that seen predict certainly we've to dividends exactly in. But when impacts. the be investments come

Philip M. Gresh

Thank Okay. you.

Neil A. Hansen

Good. Thank you.

Operator

to with go Doug Bank we'll next And Leggate Merrill America of Lynch.

Doug Leggate

Well, everybody. hi. Good morning,

Neil A. Hansen

Doug. Hey,

Jack P. Williams

Morning.

Doug Leggate

I comments Liza about Jack, up, Jack one and fast-tracking wonder Neil, X. if pick could I your of on

think a be I X. understanding Guyana Liza from – potentially generally. my just addition originally Hammerhead, broader question fast-tracked actually could in on to partners, also your

rapid out you strategy see where fairly for have I'm Guyana update, progress the if your you what address months. in appears So laid you versus last wondering to the at to been that six can guidance

Jack P. Williams

on Hammerhead, dynamic we the some We in drilling did rig forth. just moved and there. some – addition Yeah, did the flow well, off to testing so

bit little to early provide that a one. on EUR So estimates any too

now We're and of early XXXX behind Liza So to XXXX in government think start to to that. billion right Hope this FPSOs, and at one over up talking day, with Liza X permit. us barrels, peaking in I out estimate X that up X behind oil-equivalent barrels XXX,XXX coming leaves or development at right targeting the our there now that about that. plan environmental X a that's

time So the industry and continuing tick start-up, impressive between we're at of look along. the timelines the when of what Liza in like. it's X this to But terms discovery projection very you typically look on

Doug Leggate

Sorry, Jack.

Just to clear. be

Liza You date did so XXXX X? say for fast-track, has changed March the

Jack P. Williams

said said we I We ever early No, and just (XX:XX) March. XXXX. don't think

Jack P. Williams

view gets online, as very from as that in that go you I fast to mean when good is I as discovery fast That's from it industry. Doug, track. movement. about years five

why was that took I fast track. So on

Doug Leggate

is an I'm question. My also – follow Upstream it's I may if Jack, afraid, guys, up, also

QX Permian, cadence. us the completion the the rigs, QX to XX you gave going sorry, Just or –

me rig You QX? Can I'll you've Thank And said you was light on how your looked – still important completion that up activity? tell cadence brought QX. XX now completion it in wells caught with it you. you pretty there. pace. the leave what obviously, in online – whether Because the And the what

Jack P. Williams

it We And don't the on We your talking that Yeah, expand and I seeing and no in and third brought the rigs in on is then answer in Basin – the need all. I, in the are you'll notice to and Midland Basin, me had two mind wells a apologize. XX I eight directly, lot enjoy Upstream, the talking longer. the Permian. quarter. about let at bit. equal question I'll don't you're Midland mind infrastructure. more a talking what there rigs Permian Delaware fact, between the in And Basin, there's only the basins. Yeah,

to Basin. And the the so wells time, have just some just over some timing Delaware Delaware lot out where more it's we but than the to going Over a coming to of less switch of online over is there mature. to going worked that's – that Basin, growth switch

three that it Neil It's coming Chapman think a it issue I've said think points doing I out times basically mean I and are lumpy said to well. be that things. I on. couple going as the we fairly

teams the Permian Our things simultaneously. three out in are doing

increased major a infrastructure building We're this day Basin. resource. of that barrels I now, everybody on very build-out. promising. in on upward delineating to We this acreage X construction position looks time facilities billion new it billion that. is further well of processing facilities. said, two right pad XXX,XXX vector barrels. already under the and Delaware First, big that And infrastructure lot a addition tailwinds We're further energy have, out upward from on we're about that There's there's we to says, and in X spending like There central

had – out There we on there. not was lot So XXX,XXX a canvas essentially blank acres. of but this facilities a

going this scratch. And respect our other us bring that that in corporation, an expertise, other development going else project for us the anything from ever this. on some efficient we're that be up an in to unlike major us, allows seen. to allow and or I've matter advantage very a it building to all Delaware or wind really unconventional So with Midland infrastructure Basin operation. long we're that's there the It's competitively for advantaged is term because in capital Which Basin to to any parts bear have of very

production. but in also to we're – growing things, those addition So two

we having rigs there's going pretty we just dedicated at also things mature like we it those we're benches. we have of to production. know developing and just And feel they're once. all growing some But on where well, the know So

And... So this pretty We but going nice – it's pretty draw as quarter. there go going smooth it's lumpy. by as we to but a be line, to lumpy be up evidenced

Doug Leggate

a got of a some Jack, But may clarification quick. more to I a ask on of here. know real I've of commentary. point jump for did Neil off your promise bit I look-forward little

some idea like [wells] in If XX can as that's QX, in look current to give in you're QX in XX what QX, you going plan? your to

Jack P. Williams

to at a forth, I time rig don't online. tell out rig think mean drill frac I really just activity I production and months. will and months and four, you now of can't. between in five, seven, facilities eight, you come all a that having lot about picking the have thing. when up up No, A I last we those back you been so say pads all the six picked three, there And five know. it's considerations have the rigs these wells, one multi-well four, wells can and have I those – then nine

can't what The a we you We're give for I So activity it's number But is quarter. see. fourth coming. there. liking

Doug Leggate

you. Thank guys. answers, the Appreciate

Neil A. Hansen

Thanks, Doug.

Operator

And next we'll Royal the Canada. go Bank to Thomas of Kline with

Thomas Klein

a of Thank you need environment, peers. you to good prompt And or on else to With of rhetoric price I'm this you. just strong in the in what cash terms guys would taking my see, light quantity, and from for Thank buybacks? wondering question. share especially generation, recent quarter

Neil A. Hansen

we cash Thomas. generation it. did really quarter what perspective. very Great. excellent We're Yeah, with Thank an you, pleased was from have a

us for very in those. of projects. position to investing accretive portfolio a we're And I impressive going a our attractive changed in fortunate strategy. we're in nothing's have to really terms think of capital prioritize allocation And

that the Downstream fact talked going XX% to a return to return Upstream, and think the Chemical. about a in and I XX% we they're how in XX% generate

to a certainly growing reliable, pay to a We dividend. want that's So priority. continue

to dividend. to we've XX continue are we And invest that tied for paid pay We a things growing think can continue I we years accretive in recognize two to dividend now. growing need those so together. a projects, reliable,

beyond those we investment it important back to of this certainly cash, bit there's that can To capability, regardless little Now to opportunities, It's we will the strategy. financial – strength distribute excess allocation shareholders. the ensure the price year we meet the of extent cycle. cash seen of objectives, our want that, capital and advantage an to that – have a that need of we financial and take we you've part

I to probably are we of, we merger. ensure that taking as is attractive a shareholders. And the more anything portfolio Exxon distributed trying what do we've And that. certainly that's term the that's long to than more company way trying merger, maybe our $XXX Mobil picture, if billion think we've bigger factor the think at to seen again, and than since I a so advantage mean you to do the we're if is it's objective. to think best of since key we're I and that not opportunities it for attractive sustainable the position Mobil Exxon in look distribution

what over term that, sustainable buybacks to because on So add is not Anything we're long going prioritize that? we're to doing really distributions. focused to

Jack P. Williams

that just program think investment we would the very is I impressive. be we have accretion to is say – this going shareholder from

That echo a have point. investment So front us. I'd exciting that we very just of in portfolio

Thomas Klein

Understood. Thanks you. you. Thank

Neil A. Hansen

Hey, thank you.

Operator

Okay.

the Jefferies. question next from Your line Jason comes with of Gammel

Jason Gammel

gentlemen. the I Rotterdam much, similar the be appreciate able was hoping comments make I conversation very coker you Thank might to about the you around hydrocracker. at Antwerp.

VGO able you sulfur high to whether whether just and the unit. handle third-party potential third-party your And there have be First also the system that actually processing the size to you capacity of be would unit? of all, through finally, hydrotreating VGO? European And

Jack P. Williams

see. Let's

lubes-based advanced this Rotterdam. of And in from But Again, from kind also the but impact the we our to technology, of of refinery primarily this this on the the think to clean Rotterdam some substantial there we're me And what a refinery sense. a handling lubes you shift in proprietary Rotterdam, to on due II give high-quality and to well. generating stocks Group have think is real about profitability. I machine, technology. only it's let products going is already kbd just going feeds a we hydrocracker advanced had XX generate as ground kind not

the clearly, base of long term stocks Now talked in market. some Neil coming we a near term that's be and going which II to in bunch about, adding advantaged. Group is And talked weakness about, because capacity, very we're

are So doubles the to – going today. early don't we into know investment, we're first advantaged But at fundamentally one It of think when returns unit And from what have. at this the it's refinery we XXXX. Rotterdam. feeds of the think again, it's earnings be primarily looking very I best come most on the think on I I focused in a

Jason Gammel

three you that. And group Downstream. you're the in that might Thank be at Just the process second expansion where process? hoping that the to in in for projects Okay. where they all in able construction? they of Are Have just I us are give you reached for FID? was at they

Jack P. Williams

a That and lot get little Beaumont, project. that project see and extremely is a little clean a at first Singapore. start-up you more shift looking project. We're quarter XXXX as very bit been into a we turn very opportunities on take that Singapore, of more is – possible, about very, very, year. resids as products, Very and as that attractive. going one later. an Singapore. on bit the Beaumont, working that's because to so kbd It's of that next looking one unit that. we're Beaumont we've one. try like for the FID a timing be probably fundamental like The in to on whole looking It's XX same bigger all behind But that of when or Fawley Yeah, a to lubes as Singapore to soon FID fundamentally large large is midyear, probably a accelerate

Jason Gammel

much. very Thanks

Operator

next comes Paul your question with And of from the Cheng Barclays. line

Paul Y. Cheng

Hey, morning. guys. Good

Neil A. Hansen

Morning, Paul.

Paul Y. Cheng

that how share replacing bit feed. cool terms Beaumont per just the the barrels XXX,XXX you a day XXX,XXX on Jack, of barrels detail little unit, you're – the more of in per talking day. about Can maybe

about? like is come when look So change? how's going be at that the what stream? we of that the kind on may How to And CapEx And to end? is to talking is going supposed output

Jack P. Williams

new XXXX, looking Beaumont. middle that we're come looking Yeah, at some day to is terms treat Still stream. at coming a looking barrels pipe atmospheric take perhaps XXXX. the out fuels We'll of in diesel of it's pretty of and tower, at there when still. coming it in. we're maybe going on XXX,XXX What a on-site, hydro get that hard doing

refinery. of increase today. products will again Rouge, net going to Beaumont Baton diesel intermediate be are products to top they're then the Baytown replacing bottom of So and And and to out the that the coming the buying tower

of net XX% of product less just And I increase not than those, lower a the advantages, because these of all advantage, lot existing infrastructure cost. given in excess XX% a out and the in about, So industry of new well return again, talked utilizing of cost, project. coming

Paul Y. Cheng

per Jack, based XX,XXX assume to you increase should on we XX,XXX distillate day, is in Beaumont barrel that somewhere diesel in what the described? or the

Jack P. Williams

Probably higher.

Paul Y. Cheng

Higher that? than

Jack P. Williams

XX,XXX. like more probably yeah, Yeah,

Paul Y. Cheng

Okay. XX,XXX?

Jack P. Williams

that. me, but I mean, in something I like front of ballpark. don't have the number

Paul Y. Cheng

And or it that where a in would combination? ULSD, – be sure. all Would be that

Jack P. Williams

It'll all and be out, be ultra-low sulfur coming clearly, diesel yeah. that'll

Paul Y. Cheng

terms timeline say, see. kind day opportunity, expansion, about? we in what may per of I the XXX,XXX be And talking barrel debottleneck that other, of

Jack P. Williams

that? project Which is

Neil A. Hansen

you're facilities. the the talking I at Paul, debottlenecks assume about other

Paul Y. Cheng

That's correct.

Sorry.

Neil A. Hansen

Yeah. Rouge. Baton Baytown, So

Jack P. Williams

it Yeah, was just it Paul, was XX,XXX. not XXX,XXX,

Paul Y. Cheng

is it Oh, XX,XXX.

Jack P. Williams

another XX,XXX I'm total. top have would be debottleneck the today; Beaumont we attractive over and barrels numbers capacity a here, And So then day that; but Beaumont these XXX,XXX of XXX,XXX on over another XXX,XXX; rounding after other projects. and XXX,XXX

Paul Y. Cheng

recently. one. in you I think if earlier that say track spent we billion Okay. on Neil, exclude you be that $X Brazil CapEx the the billion $XX A to final short you will

So to $XX year? be for is billion say, we're the that going that means roughly,

Neil A. Hansen

Brazil. quarter. And acreage in full for year Paul, happens the is roughly some is outlook and fortunately, what acquire to we throughout the that's $XX to subject $X – fourth above what get. additional thought our billion year, opportunities were to in seen though the we've again, What we going incremental Yeah, as about is our But billion. current –

happens And get the so in dependent that's to you billion. the on what quarter. $XX where fourth heavily that's Again,

Paul Y. Cheng

Thank Sure. you.

Neil A. Hansen

you. Thank Paul. welcome, You're

Operator

Next we'll with Citi. go Alastair to Syme

Alastair R. Syme

these, there XXXX out sort Jack, how the Chemicals. of with of sort of much And aware this you shots both they the and numbers is and your also my sort macro put in questions. Analyst for XXXX. much and is both Downstream Chemicals. term, Thanks us the I performance long XXXX for run this taking just XXXX and of rating earnings expectation Downstream Day, both Can In And downtime? expected know help well for were and you unplanned but were on behind how the I'm of

Jack P. Williams

We assumed so let very than Chemicals Chemicals we actually And Al, Well, conditions. this. is The had. XXXX different flat in Yeah, just what me business very the environment say market margin we very Downstream projects on talked on different why both that up. I of and these about the these environment. was those projections activity That's is track. different. starting But milestones underlying saying

that's there. earnings driving that in that all about these are the projections, – earnings these So activity projections talked we results earnings underlying we're March potential

upside. I a of a bit fact As seeing think we're again, of matter

know you the terms give of themselves, don't numbers you in in So going can't any activity is can terms but earnings well. of – definite tell I

Alastair R. Syme

more So see macro you then? it a as would

Jack P. Williams

Yeah.

Alastair R. Syme

blends, Asian And you of particular, if see In follow-up, IMO? you around talk in an for compliant on particularly just scope the region? emergence can my

Jack P. Williams

be And thing know bunch tell We it's X.X% that able I of with think adapt. I of question industry answer the different to we're going down in But be the can supportive that to can We don't think specifically. you be we're a sulfur ready. if we're I going just And terms ready the that to to will right of do timing. options. X.X%. from going to

have HSFO, sulfur some we'll a well. a we'll have that the LNG, still we'll mentioned, out have churning that will as – I – distillate extent of LNG. we'll distillate. and have convert we as churning also And churning fuel well, marine that resid as that we'll and have have gas a then to capacity To low destroying ships out oil, some lot high-quality coking and that be destroying some So

And we're So we're I forward looking going ready. to to be that think environment.

what you specific tell doing or anything are I doing. about can't what the markets are others So really

much know Obviously, Going the how going long. know for don't be clean/dirty what to be to are is how that spread impacts going the to don't how overall. and on that grow. to hard – see we And

to So with going industry I think fine. is it the deal just

Alastair R. Syme

you. Thank

Operator

Fargo. Next to Wells we'll go Roger Read with

Roger D. Read

Good morning. you. Yeah, thank

Neil A. Hansen

Roger. Hey,

Jack P. Williams

Morning.

Roger D. Read

everything earlier I in in I through And guess potential to the where from the clearly detailed has whatever. quarter the about you the transition the of greater the are market side, starts component makes you a years? forward that of fourth on things sales an buying asked it to see in asset question the oil decision on a couple you particularly Upstream XX, Do focused for recovered, as side. lower Downstream but any sales? over capital. was wondering, dispositions coming compete was And if move the acceleration asset or to have investment next easier some on prices with

Jack P. Williams

Yeah, let and me just in it dialogue. certainly talked and March back little a about this in hinted – we kind at bit of

our else heading. to these where given as are active our is to of to high-quality we looking assets. to the and need and new looking all it terms – be we of saying more somebody bring on more other might at portfolio we we've we've be – you that worth been invest than in having as assets think portfolio these at going mentioned, end we I bring volumes Upstream in as And on all clearly accretive what seeing is the be us, been

to as of be terms had in are – how seller. we we to ramp as active. you gas, been what need if to up. active in when in area. I happen. active year Obviously, those more and now that continue of with already is and and Norway What So have to that to is then announced you continue we year transactions the divestment think have well And specifics going may But Rockies Scarborough more active terms date timing, and the activity we'll buyer we've a last an we the was have some any about that right that give those transactions, can't

Roger D. Read

the to and you that, really of projects for But me be appreciate give to a going Thanks greater didn't I that expect Exxon Jack, is list disclosure were giving. I unloading you here.

follow-up As oh, sorry. – a

debt, you I asked. lowest debt XXXX, about wondering since Just was I But top curious. debt where mentioned net debt-to-cap, declined we was question share a drivers road? the $XX as a there number, billion, Is to down that of follow-up, was just repos quick of debt the should debt goal, credit of since terms in had Any think kind recapturing that the total rating? about goes

Neil A. Hansen

But maintain we target so any know, we we we strength advantage And again, aiming don't the leading sheet. specific very cycle. don't debt the do or Yeah. target so putting specific This level. of the take think But rating. have maintain or we a as rating. credit or ensure that a is a price goal credit then there, can of we Again, but to don't that target I'll we balance – opportunities, advantage investment typically don't opportunities strength, I one. We take we Neil, industry Roger. debt act aim is on take We that target countercyclically. out level to specific specific already financial have that. of financial can a want regardless capacity, you We the can that,

Roger D. Read

you. Thank Okay.

Neil A. Hansen

we sheet And of use I mean we Roger. accretive opportunities. you balance it a see it gives competitive us a lot to that when imagine view as can advantage, capacity

Roger D. Read

All right. Thanks.

Neil A. Hansen

Yeah, thank Roger. you,

Operator

from comes West Rob Redburn. question with next Our of the line

Rob West

made is surprised the And is, earlier you of Thank the hi. you Oh, my first around are Downstream your about one ask peers capacity think their either you how to be, or why comments it refining taking investments. complexity you comments your that a make just I'd the like for little some are at are trend you question. that question new could if investing And you might about some seeing? base? in

Jack P. Williams

think Yeah, proprietary interested on and/or ask about though, say in kind had. something an standard I investments, would One we technology I just is not industry footprint say, mildly, them. those as all kind I you'd capacity, to yes, standard we I We're refining we're have mean unit, projects bringing really that's thing at conversion plain don't refining I to But thing. surprised. of advantages really vanilla that know why. like would industry think that of

And all what excess on think potential probably in of us. others investments. well are might they So differentiates I see their that refining

coming In out differentiated products that, as we some look you to well. the of addition at have

be a think why. reason that I So may

Rob West

you. Thank Okay.

points I've new company. of of seen digital one would the other And is, that signed second last day big with peers point space? having XX Or new of on a one the your in is, talk the And to your digital. really something is number highlight there? Is context one be active seen data the about less in I've at what in a a peers question Just asking million say space months? for Gulf peers that just And it's you agreement platform. Mexico a your than would machine-learning there one you'd XX

Jack P. Williams

– comment. want to in let Well, are you one but very me can let make a in this I this weigh too, me just Neil we active might space. assure on

We level in a management digital. of have the we're the doing at all around committee things lot had discussions

we us do We me-too are analytic not in project capabilities. rushing out give in underlying digital. putting the type a are But to infrastructure advanced to

like things more make where pervasive doing Wi-Fi in are much our facilities can We we to productive. operators our

all of improving data real-time have major pieces that's reliability. from our feeding We in equipment

we don't right. So you're we are – –

strategy. have the that's big of IT very looking All with much overall them, our organization are some we that but all of We haven't at about talked central in And at space. aspects a looking as organizations our as opportunity. it competitors, business the active coordinated that's in digital

bottom-line and active, for benefits are very some we seeing So sure.

Neil A. Hansen

maybe one I example And can give.

you we're collected as how company. doing over what You we've much the And imagine seismic at data can on subsurface. a look time

us to business. And happening But example. again, we're That's of one looking again, areas the big the one think idea across resources. using help that. intelligence and data so at look with the it's And digitizing continue is of I for to specific artificial

Rob West

perspectives. you Thank for Thank those you.

Neil A. Hansen

you, Rob. Thank Good.

question. for have more I think one we time

Operator

take our Jason last We'll Cowen. Okay. question from Gabelman with

Jason Gabelman

the Hey, of end thanks in for the at and call. squeezing guys, me

Neil A. Hansen

Yeah, good Jason. morning,

Jason Gabelman

on – yeah, Firstly, morning. just

us, development. footprint on to many date? $X has really spent year secondly expanding you Brazil And updates haven't of remind on you first been that there billion, Just about your much here. this project? that, coming Carcara you're you that project coming how Can or Or how been along, any have? the on acreage Can thinking not partners given give the updates us from in much that you

Jack P. Williams

Yeah.

in me they're more than the and We've oil. see handle we on again, billion the working question, that, Let the a barrels high-quality could that as operating that discovery year. maybe of numerics And as of part that that on-block this Neil chime another On last development. of had we're on the investments could Equinor on X Carcara, increase resource further. with recoverable

continuing very still plan to we and But So the development talking, on continuing progress. it's looking see that. to optimum attractive. it good, We're talk timing about as what's

in been mention probably I'd both Everything kind a year we very prospective. think the thing acquiring when We're start-up, We're that blocks new went out blocks all March XX very else seismic, the that a spend number now. XXXX one it's about to included it on there. in one like we get additional Carcara. to a only in going I attractive and are that see those very, the they're The about year, as rest after Brazil. prospective. attractive. we excited But Maybe And complete look program earning from to outlook permits about factors we the that's I saw wanted this in before projection being upside we XD we we outlook opportunities on of absolutely And as the we features outlook we exploration at wells. we we're But back of there. very do interpreting very about had had. of is to our see excited talked there XXXX-type drilling harder. depending is just next Brazil on very see is agree And we're going that. the because we Brazil lot seismic talked thing in And some these XXXX,

Neil A. Hansen

year Maybe to you a little on can Right. date. I give perspective

to the roughly acres, of XX,XXX X.X acquisition million the with Titã up again, net. block, which now was So we're

what I year XX we're the blocks be $X be billion, And numbers again which approximate year-to-date about above around $X will in mentioned will think in. we plan. Jack think full – is that I billion had

that's thing other attractive most are the think is under of I well. approximately concession those then them XX% And operate of as blocks. we contracts

position. So a attractive very

Jason Gabelman

Thanks a lot. Great. right. All

Neil A. Hansen

Jason, our quarter continued supported your rest morning. questions allowing participate of We time significant interest, by and for that and your Woods, full thoughtful you, to third highlight growth. liquids earnings a your appreciate Thank will Thank appreciate us I'd Great. thank Darren strong year performance, and also opportunity this flow and operations day. and you you you the that cash the and included in like quarter to earnings fourth you you. We CEO, and enjoy Chairman remind hope review. our improved

Operator

We conference. today's participation. their thank conclude does for again everyone that And