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XOM Exxon Mobil

Participants
Stephen Littleton Vice President, Investor Relations and Secretary
Darren Woods Chairman & Chief Executive Officer
Sam Margolin Wolfe Research
Jon Rigby UBS
Neil Mehta Goldman Sachs
Roger Read Wells Fargo
Doug Leggate Bank of America
Doug Terreson Evercore ISI
Jeanine Wai Barclays
Jason Gammel Jefferies
Phil Gresh JPMorgan
Call transcript
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Operator

Good day, everyone, and welcome to this Exxon Mobil Corporation First Quarter 2020 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. Stephen Littleton. Please go ahead sir.

Stephen Littleton

you. Thank everyone. morning, Good first call. our quarter to earnings Welcome We Mobil. participation and in Exxon continued interest appreciate your

quick my Investor a role XX. As introduction, of assumed Littleton. Vice the I President of Relations March name on is Stephen

me Darren CEO Joining Chairman Woods. the is call our on and today

of the and coronavirus. our all as taking governments unprecedented deals steps fight I disease. the the the are adapts coronavirus hope results, your challenging to times and discussing to work have pandemic. like to appropriate listening Before our with and Global families These contain and as express slowed world would that you are safe the significantly down to economies

in quarterly, his perspectives our results, to the into for environment these how challenges share provide context the well today, financial Darren the ensure we're After will the remain and respond on performed and you to first cover positioned I and steps will During taking we quarter. call operating recovery. the put market broader results with reflecting business we and our both

specifics Darren's address be to and broader to major projects, including your on I the quarterly Darren on will be views happy fundamentals. strategic take question to results, COVID, available actions market corporation's progress remarks, related the themes, will reported on Following priorities while growth on

on the statement website. of Our presentation. also comments cautionary this the morning X like attention will end available information on I at would our to this draw reference Investors section and the the of slides to supplemental your Slide

of and put that COVID-XX statement, Day from the light in note reduced in the of plans, our statements pandemic cautionary changed. Investor referenced spending As forward-looking have we've in place many take the please

longer-term and during a perspective next perspective provide year. provide a will updates this we head into as We call on will

significantly global significantly coronavirus the impacts on reducing through quarter the approximately the liquids the In Upstream, since next economy realizations rippled highlight as from now the the slide. through developments fell quarter, I'll fourth XX%, demand.

liquids standpoint XXXX, leading operational a from we Permian, the increase by XX%. total the fourth XX% an production If from production since production liquids increased from X% the has by quarterly including increased Permian. liquids at look quarter From highest the to it in

first of in Kearl crushing reduce the unit achieved to and quarter, results being which the Offshore reflecting discovered Uirapuru activities. analyzed exploration investment the will inform additional capacity, exploration benefit hydrocarbons in production costs. ore Brazil, now the are record further well further

similar utilization demand In maintenance the XX-year the remain levels demand. largely was to by Refinery near reduced the Downstream, with refining XXXX prior flat in margins lows March. with essentially reducing offset quarter quarter significantly impact fell and than lower first as COVID levels

in benefiting business the lower prices. liquids Margins Chemical feedstock improved from

way employees we details provide significant products, aid maximizing of have how coronavirus. stepped fight the key Darren technical to the support production healthcare Our on a responders to expertise efforts. first additional and others the up will in against shareholder response redirecting and contributions workers, COVID-XX ongoing our in are lending

results overview to The the relative provides of to first left view results. move for quarter on quarter table X a an first Slide Let's fourth XXXX. of quarter

For identified included of divestment. $X.X of notably the items results of through Starting billion, context, fourth me Norway the XXXX. The the you impact items. walk with billion the let $X.X quarter identified

the $X.X Excluding million business results, these items, were identified from the challenging excluding fourth $XXX Despite fourth underlying billion, quarter up environment, quarter. $X.X were billion. results this items

a LIFO middle impacts liquids absence of was of lower As this partial while year-end shown growth expenses section the and offset. earnings, increased in operating the table,

earnings two U.S. a identified GAAP first the quarter negative $XXX separate non-cash million of of include impacts items.

valuation. inventory to adjustment an was first The

GAAP. inventory value the lower U.S. accordance reflect the quarter, adjusted in market the in to drop significant our of in values book the was Given first with prices downward commodity

billion. $X.X cost first quarter lower we adjustment changes the potentially This of of a see going important unwinding adjustments impact forward. commodity of market to on or the in may an during note that year It depending charge further is in resulted prices

item upstream of Market for with in and both some which again in assets. assigned an impairment reductions noncash evaluation markets values quarter commodity first related resulted million. This recognize about and required consistent prices values conditions to second $XXX impairments of significant included $XXX reduced GAAP. U.S. goodwill charges to million approximately of the market was The equity in to company an carrying assessment equity

to realizations look Upstream decreased by down items Upstream. $X.X billion excluding billion, at we'll which gas items liquid the identified XX% earnings earnings in by with driven slide versus detail each identified realizations approximately down five, XX% of $X prices our by fourth more and reduced excluding quarter. starting just Turning the largely now I with businesses discussed lower than

to This primarily and favorable also Permian Lower the earnings. strong was partly exchange offset foreign by Guyana. and and higher impacts help in growth volumes, favorable tax were from items a expenses

volumes. On more volumes grew oil on the equivalent compared will per XXXX. of provide XXX,XXX Liquids the approximately I slides, details quarter barrels to next day by first

liquids XXX,XXX in Dhabi. per non-operated day underpinned by was the volumes barrels equivalent oil per the Permian oil Kearl and Hebron Abu Divestments, and equivalent Upper X by Zakum day. Guyana at barrels business reduced XXXXX the ramp-up and primarily Norway project Phase Growth of

oil by equivalent gas oil the versus equivalent oil prior an prior increase of day barrels the in as the XX,XXX driven quarter, as per more were barrels and XX% barrels Bay Mobile volumes was XXX,XXX or per year XXX,XXX day. versus down production per equivalent demand. Norway well quarter Permian divestments than day Natural lower

earnings more the identified quarter of year-end to The XXXX. unfavorable absence items slide, relative reduced of next fourth and LIFO Moving inventory adjustments foreign by exchange than impacts to Downstream on increased by excluding $XXX million. the million $XXX nearly earnings

positive refining partly earnings demand margin increase trading lower quarter million. March. by by increased benefits in which in by the as Favorable $XXX were mark-to-market impacts more The was offset margins driven declined than particularly

but $XXX earnings was COVID-XX, demand to also more with than expenses increased lower no by this We million. saw by offset related that impact

discuss margins costs benefit fee slide, will Chemical more significant across next $XXX the of items the I integration. million value by excluding lower earnings improvement a reflecting than from the chain, Chemical with increased results. to Moving identified in

Additionally, contributed lower earnings improvement. the of XX% approximately expenses

Let's turn cash a page to quarter look at first profile. for next the

First in when operating quarter items, and impacts changes in working earnings capital, activities. from identified depreciation yielded non-cash expense, flow other for adjusted $X.X billion cash

were billion from and $X.X and $X.X asset operations distributions. flow Cash quarter sales distributions billion. Shareholder was with leaving billion fourth consistent after $X.X

investments $X.X First and to net PP&E quarter additions billion. were advances and

the As release, billion CapEx in $X.X quarter. was noted the in press

the the As reductions amounts CapEx of the remaining course will trim down over year. are implemented,

increase we environment. market increased the to took $XX Gross current in liquidity billion approximately in quarter debt the as steps

we $XX.X of with result, quarter the cash. a As ended billion

Turning to items for with regards for will to I XX, slide cover outlook second few quarter. our the a consideration

be production conditions to shut-ins lower quarter and in the market economic challenging second curtailments. market-related due the Given will

production per approximately At equivalent the with XXX,XXX gas this second time, Also Upstream, day. XXX,XXX is the barrels natural barrels day. per be due estimated in impact demand to oil quarter oil seasonal lower equivalent will impact of expected an

the impact from demand we with Downstream, are margins. In continued reduced seeing refining pressure on

of with is be quarter. For capacity. the first approximately second from sparing line levels quarter, Scheduled we maintenance XX% of the in anticipated to refining our anticipate

bottom feedstock pricing In continued our of from lower near products. cycle noting while for realizations anticipate remain Chemical, we support many liquids overall that margin

be will be strong, Demand the packaging for Similar to product to $XXX while expected maintenance financing for demand is are expected previous the expenses to durables scheduled remain to about demand Corporate and line quarter and quarter. Sentiment be mixed to hygiene automotive continue Downstream Chemical is second in bearing segments. expected challenged. is and across with million.

Finally, we progress reductions to with will line in recent continue announcement. spending our

call over the Darren. that to turn With I'll

Darren Woods

Thank you, morning, certainly today. Stephen taking I everybody. and safe and hope to you join time are healthy. We your all of good you families us and appreciate

been these pandemic with know, all personally health workers the I the that I times. for agree are can first front on thoughts speak who when I who our challenging I affected those by this responders care are think are lines. say very with and we many that And have

current we preserving near-term and will are to and through market I shareholder morning, and safe how people managing the are discuss approaching we long-term the working downturn communities keep circumstances value. our This how

health price in As downturn you two we know, to a acute economic today a commodity global resulting global public and threat well a collapse. face challenges: significant

was started by in made unprecedented the down more shut virus. energy economy to oversupply situation extreme drop a demand stop with the of sudden and as an What spread the

certainly business, capital-intensive we price downs commodity of the weathered ups many cycles. As a and

However, I is have to world what today. say we've never seen the anything like experiencing

for position keeping provide the employees aggressively eventual modern to our spend operations response the that we Our life while and response recovery. in to the energy and in on depressed ensure the is value markets, communities, and three products areas: reducing are primarily efforts and today's running of focused safety protecting best health COVID support preserving critical and our the

see on holds, I to business clear our that and not that The different changed. but I lot business know the uncertainty how drive a future volatility, of remains are underpin current views we strong. fundamentals long-term have our the it. want fundamentals the there Despite be what that on

people We that? that Billions more the by class X and energy. coming know will the seek require enter once in billion up that of and will say than X I populations today. do over will from middle billion to XXXX Economies products Why again. decades expand people grow just lifestyles

economic followed but are historically by of the be are likely to growth. short-term, some bumps periods the course, there in significant Of road of over periods contraction

nations of result will increased natural through met demand populations downturn will economic growing of growing energy consumption XX% of that the increase. gas. by prosperity a and in growth energy developing consumption projections energy with than Finally oil Even Most show as current half will the expansion, by be be and more and XXXX.

we all focuses company the you on long know, that As are term. a

we to conditions time This as face based sight exactly business losing what doing. value. At we the to unprecedented short-term of the we're long-term horizons strategy we is today back address while Our why on is market same go time, not in have is which fundamentals. the challenges long always such

to advantage while cash remain taking sheet. in balance spend strong allocation the the that and investing deep our progressing growing industry-advantaged provide a We structurally strong of We're improve sheet company. reliable reprioritizing portfolio and dividend grow that capital priorities to support flow projects projects balance cash, options conserve a committed and

while Obviously safe to keeping it's flexible do that an all to remain across and and strike society the delivering we these in course, environment this this of and developments market balance eventual protecting And products our rely recovery. priorities the communities to the people environment, right on. including critical

began largely been sites. successful facilities. we've distancing additional the let limiting put our that to discuss to pandemic, point, our emergency me response implemented the to few our continuity and take business a minutes plans. People response pandemic. place Early teams in protective To-date, and who into Further from personal at activated our we working were cleaning, home, exposure equipment our protocols and while could infections at

and our ingredient To increased society's isopropyl Baton in alcohol, Rouge of and specialty to medical-grade that, New and masks reconfigured York, sanitizer sanitizer. Ohio, Mexico, gowns. produce, top to this New package and broader people Louisiana, polypropylene operations and support a in providers response product distribute medical in we key We're first of Pennsylvania Jersey, production responders blend, our On hospital care in health New hand donating both Texas. used

supporting for face efforts with and masks and design, masks first with donations helping the around meals also to We're produce distribute And banks, help shields and and support schools, care medical and reusable to the for our responders. we're food workers communities shortages. to world health fuel, new

and response efforts next, taking the on the supporting of of what their starting their around impact employees. jobs, to with doing proud care which turn want They're our to extremely themselves I'm world, is pandemic's families, the I market. and

perspective of This range shows demand chart area provides represent third-party dotted IEA's lines shaded The demand of and supply forecast blue projections. the the projections. a

range. As a pretty you see, can it's broad

Our XX% views jet in IEA's. are demand and pretty reflecting consistent May April significant the of and use with XX%, to gasoline the reductions down fuel.

fourth quarter, last due will we lost below economic be the demand to reach activity. expect we As year

on we it Of of it and lot course, takes uncertainty time slow happens We're as recovery. businesses timing to than to consumers' think. a restart a Hopefully, confidence the of one there's the grow. for for faster planning

range million a X barrels day. per from For year, the loss full XX million to estimates of

expect the We on it the be higher end to of range.

balance XX growing see from and the per significant demand. inventories, low and market supply line, loss demand We're the can the insufficient announced short are on seeing cuts you this the half As about the red sometime OPEC+ of while barrels in shut-ins. totaling in to OPEC+ third-party Based and of global announced day and million of the demand into go prices year. the second number reductions, projections come increasing then in offset

challenging projected, number again does market see expect down. be worked happen of to of a are faster back this a growing demand. factor the inventories here, market to the pretty the on the move than we it it's as going in depending half a industry with When the in very sloppy into could When Bottom you line shut-insurance, we until response, year. happen summer don't recovery

adjusted price We've environment through and a margin our year-end. plans low to

Our we end China. Once price particularly our low ongoing have the of projections out which tend third-party to with given hope experience be we're again, at I recovery, a ruled in quick surprised not estimates.

or the it's While some days key businesses early it back responses economies with up even line above reflects if year. and are period demand cautiously too the around as China It's still this be given be early activity of other to the economy, are April optimistic last range or three if in in to of in of to world rebound policies. initial and sales if with there our sustained, pick relevant reasons government broader slightly the beginning is it tell, economic to same and will signs

Nonetheless, true I medium in supports encouraging the will it find be will long Economies it what term. recover. to I somewhat know and

OpEx to lower which we effort XXXX. deeper springboard why to is demand We this and for short cash significant as the compensate announced we a in revenue, served reduction CapEx cost, and the term, XX% reduction effort. in loss need much which the quarter in and in has XX% an initiated However a fourth drive broader efficiencies a to and for in

prioritizing environment. items. the on are activities the people integrity efficiencies critical additional the focusing safety and Spending and prices, our spend of the less deferring operations, to that and of our maintained on quick of market We're be lower capturing protection payout will critical

see chart, the these can already you As yielding efforts are in results.

to further achieve As reductions target. we our see progresses, the year announced to expect

want ensure remain maintain eventual to be the we particular, capacity sensitive unknown. the upswing. are we quickly market We working to this we to respond well doing to positioned the to While In to hard changes. capture

to capital. took a similar We Turning approach.

capital You to we our may make our recall market said our contractors intensified venture spend Shortly and thereafter, Day with spend and resource that if then required. Investor reductions time. would we based of of we optimize work partners, in in that the continue further growing to at impacts on the the monitor during reductions market light owners pandemic. the I discussed conditions

by returns. market without with the savings We set compromising an aggressive objective, Through have CapEx had I'm very project inefficiencies we've reduce reduce to spend efficiencies. or the with preserving identified be and or the returns project extensive other done to collaboration, offset advantages Any $XX date. pleased opportunities to work we billion down to than costs, advantages. XX% more and deferral our offset

during first As we work is our of concluded in March, this of very much little spend. quarter it reflected

capital development reducing out I at clear projects our through will the target. the progress downstream reductions meet am the savings, readily sight Mozambique the specifically the up. line With Basin of we'll very we of our small sites our some that reduction where As and We're the will to unconventional pushing of more we year, be and largest see LNG. pace a ramp of confident of the investments in short-cycle share adjusted. business, the The projects chemical are growing most Permian

Let on me this. a perspective provide

scale, maintaining maximizing developments. reduce Permian the cube March, indicating we these As in potential in discussed showed the to through while our preserving with range in reductions associated the spend recovery resource of and efficiency charts have flexibility CapEx. production we capital Neil

of diamond indicated at are by bottom the Our end range. the revised the red plans

XX% by at ending approximately in we expect the ramp the Permian the rigs. Over rigs year, course XX down about year to the of

one focused where utilization Delaware on will be Central This scale Basin the Cowboy activity we and maintaining the productivity seeing development Lake include are and Poker Line high remaining Point. the recently a of wells Our advantage. will at Delivery completed

primarily will per reduced we estimates. Since of equivalent per affect XXXX's barrels XXXX equivalent at previous already to of locked from oil spend will barrels impact is In lower our where CapEx will be XXXX, in with XXX,XXX production XX,XXX about day the in completed, most be day. the down work oil volumes much capital the expect XXX,XXX reduction

be production will larger much associated A impact shut-ins. with

the very production shut sense in during wells of With two wells years rates environments. the economic to these it of makes low first high in operation, price

For shut XXX,XXX price this we roughly per The on in to will expect day. shut-ins reason, these obviously of equivalent oil depend evolving environment. barrels duration the

long-term part Guyana. integral growth our and next an me Let Guyana on such move plans as of high update to is an priority. a remains

full managed Production second Liza start-up. largely reach a X pandemic. XXXX the also X Our on the in project been by progressing Liza impact Phase Phase have quarter. should capacity is schedule operations on this ramp-up keeping and unaffected the for We've

election ongoing process the development of approvals uncertainty Unfortunately, plan. Payara has the the next slowed government administration and around

COVID-XX the campaign. challenge due rotating our the of to In drilling addition, has crews of impact slowed temporarily

our As per than objective delay a XXXX. a of XX production of developments into our result, six roughly pushing barrels we day months to XXX,XXX expect more future in

about few Finally, like say has let this. me words been a times for financial built capacity our which

to As allocation itself trying demand strong sheet a balance during price part proven maintain competitive you across structurally has business a cycles. This advance and despite is of us these low times allowing the to us margins. approach advantage know, strategy an selectively our core improve allowing and capital priorities our to our critical integral investments very

to capital the to debt $X.X to XX% than increasing issued balances raising billion. in and billion more $XX cash first quarter, We of our debt

also With gives very increased a $XX cash, markets. facilities and uncertain We us our solid these in volatile this backstop to our revolving billion. credit

window $X.X to market capital and billion. issue about a In in a taking anticipation our April provides This XX% took another of strong recovery, to manage cash to of challenges debt foundation $XX we to economic debt increasing the remaining billion in XXXX. a advantage estimated of slow to

eye as course, to need keep accordingly. and Of always developments we'll on an respond

fundamentals remain want to underpin unchanged. In the our closing, that business I that reemphasize

Our create growing allocation investing value, and strong capital the priorities same, balance a a maintaining to also reliable dividend rewarding shareholders remain with sheet.

in opportunities. term, portfolio we our optionality long-term the a we near leveraging on While to advantages provided conserve the work cash of focused competitive deep by and enhancing remain value,

and We ensure safety to do society to support communities people response the working and all this, pandemic. to our of doing our part while

company Our remains strong.

face find only to the to people experience, but than in challenges skills, have ever. stronger them Our not fortitude and the emerging opportunity

Stephen to taking it we questions. With back your to look that, forward I'll and turn

Stephen Littleton

We'll for than to take you Thank your have. any comments, Darren. more be now you happy questions might

Operator

Thank Mr. Mr. We'll Woods. and Littleton with Margolin Instructions] go Research. [Operator you, Wolfe to first Sam

Sam Margolin

morning. Hope all safe. you're is Good well and

steadfast on energy pace growth it's been your you capital of you've a demand So, lot human view a to. secular something deploy cyclical with and of

just or agency not talking anything. You're off forecasts

I moving is So in the of crisis. here how days that around wonder this early

might XXXX, jet there's maybe example, huge of on fuel, growth but anything of on that changed. to within For forecasts cycle, in out you demand a on the demand on capital the kind crisis deploy structurally your inform structural of your component side range or changing other If the are of the of basis side prior the how period that long-term plan. five-year

Darren Woods

to Sam. is out seeing with what we're Frankly, hasn't horizon of fully today at played looked thanks family. and today we've when that. in real and Well, your the impacts factor what difficult well you Yes, Hope all a we're seeing longer-term yet. plan it's

of my thing. caveat this we're the just the in fact with comments I so middle And that

in there see it I are kind plays we'll out the rest year, showed that through if sticks And the comments. it how forecasts out my of the what prepared of and with so,

time look continued have can you you But you world a past. a from recovery. example, slope then and start and that's and has And consistent point, the the see what if X/XX you time you these experienced back while see a dips growth lower a very in an with take you over as in

developing growing don't I don't drive to improve like it populations, desires. the their nature some world. events to economic in think support manage particularly don't the of changes people's growth think the that's people's and wants prosperity. basic changes living I their human required think or -- I this it change

get is challenge, going of same as to want better about, always you talked this because out short-term back people look think as and themselves past energy as a a it. So with as the will to human that basic the many very standards we're And I've grows, standard be family. grow further for and I fundamentals we've living shown their times, grow for dynamic. economies of demand That people's before living

Sam Margolin

theme of rate returns just class that un-Exxon model, to with pre-FID. just number a then lot identified that very a asset as always exit pursuing prior were which plan, like that structural had LNG capital it, kind were class as spending of seems And that a The projects utility Thanks. the a relative five-year follow-up of that compressed there the a regard. of Exxon parties it challenge were asset sort of seemed of profile like in to

think you out As still range restoring to list? high have your that years capital outer projects the priority category or about you XXXX, five-year spending LNG, structural number to your slowdown on very those the closer in some are a to think is prior might

Darren Woods

go demand So, and product Sam, LNG if the forecast to and fast-growing continues gas think, the back LNG be for for grow. to demand a fuel, to and growth longer-term continues I you

continue going to that's So I to play role. a think

look have down. of sanctioned moving and if you the those at -- the that think I forward, capital were projects slowed many

been have canceled. Some

what I as frame the So the course, then, there's will this get changing gas grow. going and things move sanctioned of and to time continue projects are. back forward we'll up be to year, pick we projects of think see through some which go those around, demand And

LNG. additional is, fundamentals suspicion see going again, to some So schedules. shifting my in around the But, are the require we'll

that large would to expect a portfolio. be to represented extent to fairly our in And so continue I see

on it the on What return, say would specifics project. really I the of the type utilities depends

I as class. asset can't think at those look you one

different there the projects our And specific is sure associated LNG around As criteria. returns are you look and of to risks that world the do we the meet with different projects. make move dynamics to and what challenges

think of sure how got standards I high at at to you that's one you, as each corporation. returns we Sam. kind We've we look maintain pretty it so, it. separate we the a to need individually and that that and look got Thank And to make

Sam Margolin

safe. Thank you Be Great. so much.

Darren Woods

too. You

Operator

to UBS. with We'll Rigby go next Jon

Jon Rigby

that identify how just you terms of Thank about pre-COVID spending to quickly process preserve from back And running how people you. how some Can you as that's up of could of sort again I give a color go my possible. activity. the that just move and at value bit cadence through speed which sort commentary period? of on around you of Can and -- indication through first That's assets slowdown to identifying you if sort were mothball slow you down or that, you follow-on things the mobilize a two give more the little about you sort of lower up internally question. the then in spending of

Darren Woods

about and challenges the needed process The grassroots process what what terms we after we revise characterize around the and as a up, figure revise of start and together that the a Investor talking step going we to the how thanks relevant Well, of as best engaging basically do after issued and -- OpEx capital project our made the significantly a and recall COVID Day out and targets would then announced I back this letting year. the you statement said then with were in through impact we businesses organization were. as mid-March our Russia those month make and John. their -- process to bringing our went and our is going reductions Yes Saudis the later to then to stakeholders when change. businesses company that if shortly We're about for picking to and Okay. a the announcements started

And have And and looking recognizing fact associated will the to experiencing we work stopping and We ought point this do find was it. I ought motivations and challenges projects ways this need was to that. remarks do people to provide do that made principle at some inefficiencies how this in to some with the costs to efficiencies. a in was market offset get that those in everybody that similar together and these my prepared find fundamental progress

one taking returns to And we biggest therefore were so, key projects. that make not of sure those of out that advantage the was criteria and did compromise where opportunities figuring the

And others. understanding part so had ones flexibility which criteria was more of the than

reductions unconventional, a the some large in short-cycle we that investments more space. had -- lot in opportunity Hence the

a there. we was driver. reduction large saw a So That key

The other about those benefit then was of think projects. the of we opportunity, the with standpoint, to want just projects the through looking associated the slowing profit rewards thinking payout economic and those a them from how at cost of what's some those

And was so another factor. that big

owners And working was on with alignment our resource partners third then and get the that. to

leverage I big, organization. in look help. dividends April, our the the company's time tell was our across project our our contractors it involved. in one into Last projects paid you fairly So first place. a efforts been -- that huge, ability huge a was to during process in big put of the this would robust a And year with process to has have portfolio all has number a with that history of relationship people We we entire organization fortunate were

you last of your are a part again to quickly your think comments we respect around, question With respond in heard how anticipating can you recovery. my I

and and attractive I these fact, pursue we'll projects will remain want know In to one that happen those.

and the will to turn And these want when back is will when big recovery that we so, on. when happen, question

how taking you sight gave of steps again. we restart make ramp challenges and reductions, these line is keep are to a on the up while we'll the the organization of one and future clear back of things make an eye So, sure have we

projects. I and project but But place, ramp-down working is striking again how that in balance put we we between quickly by that up. by plans back feel value. short-term the organization will And taking all so that plan, And but a this circumstances also really only good a of vary course within we're those the confident could ramp action, not preserving have long-term

Jon Rigby

do Chem? improvement. operationally on been falling couple I that of primarily a some to to And then hope obviously XQ the follow-up can end or But me either that or internally quarter to of as there's seems Good. little the Right. get the to is referenced It signs the cycle. things with was last starting this just quarters, towards temporary still there it are Is from just the a comment get as better macro? you bottom you the there liquids some price, of

Darren Woods

chemical cycle you Well we're the classic is short what a the what capacity term. -- the about past, where talked in commodity think of in we industry lot we've had a if seeing is, on in I'd call brought what

growth capacity those While down overwhelm growth year. excess we're end of is in at what year good has that term products therefore really the margins through changed. That short not last and the driven or that seeing last in back remains to

in a products in products off. markets of make saw mix you dropping continue basically those has significantly. with point and of the products length happen oversupply we quarter to those is And for prices look the that in that a if types at and in the We make, We grown some some those to we to chemical see specialty benefits To response and products. feedstock pretty of COVID that to really supply first demand other be just, we're is seeing position what required demand around there. feedstock the within the

add got down, impacts challenging to can organization levels. should what that I we in remains the boost as to demand marketplace. standard wind a start revert would be obviously tell see seen we've on Steve the anything a And very focused some to to back that. So you those? you of COVID

Stephen Littleton

bar a mean is in our there, the really the -- I thing we see earnings us Chemical put OpEx, was out the notice that Yeah. Jon, the in significant other if the which you improvement we quarter I'd benefit did business. chart for in add this

Darren Woods

That's Okay. good a point.

Jon Rigby

Okay. you. Steve, thank

Operator

next Mehta to Goldman Neil go Sachs. We'll with

Neil Mehta

dividend of Thank guess and the dividend taking We question. macro is capital team. one of morning, environment. their Good around question for in the you. first sustainability. your light peers Darren, I the allocation Thanks saw reduce

think about that prioritization think get and on about right in growth around to wanted allocation? of Just how terms dividend your the distribution, of you you level how views capital

Darren Woods

Neil. morning, Good Sure.

of back in remarks scheme And got I and of a some the what with we're prepared allocation here has depleting assets. repeated not that release, comes to in priorities again it large said the think we've seeing as press short-term. changed capital in I've the business kind have our that in I my

got in and strong to support industry-advantaged sheet. forward, foundation to a You've the reliable growing to and accretive support business going continue to a invest sustain successful if balance business going strong dividend to projects to a a maintain you're

the business. foundation So the long-term to are project's investments the of health critical

investors income. look And XX% their our you are them shareholder in an look for of source then see if dividend retail base or that as about important obviously stability long-term and that of at our

commitment have so to And a we strong that.

cycle we're of the see And sheet have balance the think demonstrating finally, in a the to deep pretty big here, and this in frame. volatility. that handling sheet time a outside I then price making which manage -- ups volatility Obviously that normal is through we is we're the that sure of that we But downs price balance the dip cycles. pretty

the remains that priority same. So

and think short-term. you those talked I how then in in this I across about the do Day the priorities question the is And Investor balance

face we and And a sure to we're to headwinds, these see the -- market maintaining very the with that so recovery. projects we as we'll short-term making expectation that are that continuing challenging dividend today advance

rise, Our in projects. cash come in, more revenues to those continue us which will allow invest will will to

but a And tell in that we'll just go base. on based investment one you as we on strike not would I short-term the long-term so to forward. balance that the that of to making continue trade-off medium our needs we're the And

been place, those projects putting A the you in come to the our what my capital recognizing see than need online if conservative years lot in step further we've pretty the been If have even we've have spending there. we'll make look that don't here is, and not if to a going changes we recovery to of investments, start providing and we we've foundation slower adjustments view anticipated evolves you're in over that's are the we this those outlook, contributing see any couple back of that last to market and to support dividend. But cash. projects have been

the begin dividend. the to contribute investments of and here the we're see to the or support so, benefits associated So going lot I the a think that been cash next in will and making basis the have with to provide year to we

Neil Mehta

around And is the Darren. then just balance sheet. Then the follow-up -- follow-up thank you, the structure the and capital

as accelerated As been at last here and you debt take a the want And and Is a to the lower there leverage ratios we about governor your that indicated weighing balance to at in any the over -- quite sheet and your say slides, different you you've than just strength you taking importance have years. of on about set. priorities? peer couple talk we on you got have think those look your more you a debt? don't good the pace are balance But sheet of

Darren Woods

maybe done business balance restructuring that I first structural as the to as into sheet. to that of the mind investments draw the had Sure. with I the just capacity I context And bringing the a the would start the base profitable of or we've keep we've think call company. would strengthen on in what high-margin in is

building successful in And next so we reason the is priority sure be important the an to the make to why over the assets us and and that that investment increased that's the expect capital the in for markets decade. be been we're to base we've here

growing make there high-performance products yield that's to society cost, key to that profile refining meet integrated And assets that got the high-margin, of the chemicals have. demand so sure low and configuration barrels, with consistent and demands oil we've

those And improve has the idea through and business pretty So and the structurally a strategic so was foundation. those are to that priority. investments pretty investments

make wanted manage sure capacity. swings. the we that you we As that, today, as that capacity have to we And maintain see to we the did

continue So and we've view our bear have it the and managed debt access the competitive that attractive that to is something to and continued, to met look level, that us longer-term, sustainable be has what's to objective. as the And then, right allow business we markets.

And so see us its making people and and a money sure to to that basis we us keep sound that in to continue as a be important. allows investment going range for a access good loaning that

keep that pretty through to leveraged process. We that that good dips we're this debt of recognizing to right to up going what to balanced, need available resources kind we've think the there feel short-term that manage We all in have at us. year. we for around, try are now we where we and be So where got we've

Neil Mehta

All right. Thanks, Darren.

Darren Woods

Sure.

Operator

to next go Roger Wells We'll Fargo. with Read

Roger Read

good you morning. Thank Yeah. and

Darren Woods

Good morning, Roger.

Roger Read

is -- that the doing, of the to I'd OPEC+ the I is, CapEx given what driven. in depletion guess this part guess called you're a price do of industry side the ones like of what's whether rates? I ask other doing shut-ins terms the selective What or think it's you

is the from the Exxon was at decline after the comment out I clear haven't asked the, we it side this event X% very discussion is it. side And breakfast investor annual on reason from us X% that investor And of a there. was the those analyst follow-up to seen

So this you that how portfolio? see the do Exxon's And is brings something to within X%? that more that

Darren Woods

question, the for Roger. Thanks Yeah.

see haven't don't that think, that seen change. we're to you're that -- going -- you managing say I you I physically our year. think, every experience it When

what the that with gas in are pretty associated we've and we're of And confident oil production physics the got. resources so

lot hard that those. so lot it's maybe offset obscures and to to activity. they're of discrete that a work often often a programs view of What maintain often But not model is are -- to doesn't is so speak the there which doing decline companies projects

that In And natural we takes resources offset that that work. decline investment do spend. capital that, and fact ourselves takes to

So programs the mitigate some to support what if going activity that find, reduce of aren't But that you this and is I work there your where heading. to not strip revenues as which you're question because was to out think, I'm it. sure to those decline,

see industry. manifest that I explicitly across the decline more itself think you'll rate

would view and won't better change question. stepping just a my that. It It'll just So around visibility that the to happens underlying you'll per aren't decline more that be what get se be your rate broadly masking maybe a naturally necessarily offsets probably back be production. into through then,

that's company was going for to needed the demand continue the at Investor and to whole the we think has industry I as be investing as that been under believe Day a future. the in a I

the Obviously, exaggerate in a capital pull that seen as what's is going which drop -- you've prices to the you've more the happened out is of issue. industry already here as coronavirus to with and seen going lot

than we're So gets already this anticipating. were I that of to we think thing on find market end the going back shorter eventually lot a a

Roger Read

close -- Thanks that. I been that. Yeah. It's direction. the just that's That's to think, right for

Darren Woods

Roger. Welcome

Stephen Littleton

Thank you, Roger.

Roger Read

the that or Downstream I were the improved that We'll you've I'd next to go to sustains. China. in on mentioned had guess question, like improving if things obviously see

we've kind seen some of was trends. just off. American Within had signs the curious, Europe, lockdowns or of and North of the the responses more if U.S. I demand And European come immediate in any of first terms you

Darren Woods

Yeah. in of March. And demand No see. on that's significantly eye we the saw tell April is, something we're was keeping what signs terms close what we month in lower what a than really are

saw of kind coronavirus And that, so the I as depth of impact. the

-- how -- response using into and of that for world of retail around of to what forward to a is terms forward view primarily and looking that looking see of If demand we're at look in going May -- road using around our trying kind the of assets kind out people you transportation. get what sales

We've that we all Asia, or the Asia And volumes up in didn't we that in are markets. U.S. although, seeing across seen We May U.S. trending and the as in see far nearly in improvements three drop really Europe as Europe. happening also see

are in transportation there so signs the transportation. sector early say encouraging And road particularly some. I'd

that's take to aviation a little on think bit going longer. probably I

that in yet. haven't space We uptick seen any

Roger Read

you. Thank

Darren Woods

care. Take welcome. You're

Operator

with Leggate We'll Bank go of Doug to next America.

Doug Leggate

making everyone. this morning, to we're doing obviously, is over Good adjusted we right appreciate Darren. been about business situation there. now. well how you've I you. And Thank comments hope have in morning, adapt guys all to everybody Good you the your

What I asked if guess Neil, be circumstances, to to think what I pretty want bit a have two They're little follow-ups direct the are clear. you've I been Darren, more I but really may. I questions.

dividend? where Mobil Exxon would would the underlined that are cut obviously issue the you You've its ever what circumstances dividend. envisage of the But

Darren Woods

value shareholders. would hope an of looking the base that our particularly important It given think circumstances -- asking. on that you And everyone's the is circumstances those and very fine is true you're so I part to know we would dividend Doug morning, of the good we in a proposition are you for is answer. the thank here how prolonged exist. depend our explicit to same the see Look, think provide going Well, we and the we it's all shareholders for tell -- you market you. with I I know

plays we're I have see you I wait market the So, to tell and to out. going mean, how itself would just

structural ourselves we'd rethink is that with seeing the to sustained a period, much says and not to deficit that over going have have longer trouble time But back some business find today. we that. frankly, we're If step

look at in some you I think, into we see encouragement early some May. If -- the of signs, going

And have to think so play by we're ear. I to going kind of that

the an at that that on at metrics the We've every it's are -- leading quarter telltales The we is -- very our got looking can out we're which the of around some things see dividend and going. considers environment direction of Board eye organization to of obviously, that We beauty what the flexible. hard looking kind keep some are working there. are macro

forward and has so that the to dividends into continuing to that products And and are to and the provide foundation business out going we're is as go we to strong continue that this need. a long-term, good look world at for to decisions future ensure the make going

Doug Leggate

it's guess reset. you tough given I on one you see is to go - to have. if industry follow-up wholesale -- extent to Well is cover understand, has -- some Shell for I my wanted given offer out a rather explicitly. just perspective. answering you perception answer the there I sure. cover a of appreciate But just the could I kind you the

Darren Woods

we're frankly. to made what look and really that to don't that. a on I we've them. Well, to -- Doug, just base let our commitment investment is decide doing of me policy Shell our the It's dividend not say, function

Doug Leggate

set sure. obviously, of a related. notch. is for down agencies kind opportunity The credit the took took, follow-up And you My

shared the again presumably tender sheet and that them be with go? added is obviously Where a as it's comfortable allowing -- to balance guess. related well you dividend there doing. were you You've I And limit that would what you

flexible where the And to I'll is Where level leave not you're dividend Your capital sacrosanct. comfortable? balance is if Thanks. sheet a get there. it the does

Darren Woods

in Well, I to balance maintain would specific that again you sheet we real had like the I numbers. But know of lot us just is this managing that principles just we a sure here one base because market's in tell you to foundation allows a to the quarter have capacity of make volatility seen as or we've need got it. therefore, a accommodate the And that we volatility. that

we to access to the -- And need have access competitive market.

us sure we allows need and competitively range we're to not that we've that buffer sure run going when business. make the this manage debt a downs are and the to So make competitively to us that stay commodity-based continue that got going ups access markets and we to continue in in a to that away them -- allows to

balance of what morning, the We I it this seeing. sheet marketplace. taken it we we see -- a something about forward. it's again in used looking our we've -- dividends balance to the got we're So position mean, out as on We I've earlier talking ongoing believe to priorities conversation balance. continue and the balance go used at. and today laid kind the happening spent of what Day Board it we're in I the that going that an and adjust I kind term I the and time that Investor And the around in we to investment based

quarter way frankly. tell than see that's very don't the things It's structurally anticipate, moves on play we the something now rebalancing out to different just what look we'll at or if we As difficult think that. we right

Doug Leggate

Darren. Thanks, Good luck.

Darren Woods

Good. Thank you, Take care. Doug.

Operator

to We'll go with Evercore Terreson Doug ISI. next

Doug Terreson

Good morning, everybody.

Darren Woods

morning, Good Doug.

Stephen Littleton

Good morning, Doug.

Doug Terreson

to versus guys priorities business and would change, while you would through probably your have kind reiterated capital for your up that So the drive investment advantaged of And guys this pace which point you had you going on end management investments. you indicated excelling your for would. peers that aren't prosperity global that Darren, a plan also but

approach. given distress you that need is you question be also the to the the there into describe be use that so that balance it markets Exxon you think already medium-term? in of the today? energy is we'd you program think -- just the capital to how to the play think are does or might this maybe know And that we and balance broad my if Mobil word And we're going meaning industry's So what different seeing do better changes that Do consolidation management more balance? does all over

Darren Woods

well with Yes. Hope Thanks Doug. is you. all

balance sheet, is terms balancing, their balance their it On to where I with their with very of company-specific respect to stands a call think scale, point sector maybe their in the integration. that going I'll capacity, be everyone

I think of will be the I our some balance today industry different. manifest will and And view needed balance segments think So my in that better itself.

through able I and downturns do think to got your these there -- you to company be position to that. survive

So there. needed there's I that's do think a balance

think growth of will in the plays economic there, because demand it that be I people's the also lives. fundamental in role

a swings have of to around, more back much that less And that the talking to if will and less lot is the a incentivize and and marketplace, about. going the going the so forward capital respond in of balance industry coming in, demand ultimately the we'll frankly, short-term lead will to balance into what the then conservatism lot up kind flows open you're comes for industry in, things supply/demand And that may products come the back short-term demand. as terms in as to

really it's periods short-term positioned is think -- consolidation. opportunity weather which some and are a probably like of point capacity I that particularly I second And exists the than think you that companies do leads about of capability function And I to in better this through kind again that. others, of So to companies to your period. think

stressed in low look If get back not industries. in to happen other time companies you you when in and see industry, tend get prices our that only but

itself out just we'll though how will industry. have think and within So that's theme, certainly wait think to Exactly plays the see. a I that I which resonate

Doug Terreson

Yes.

combination -- other Mobil guys Let else there was it bought that. you always the about obviously something and lots when merit have as well. that mean, to period me always be but that strategic to I during combinations transactions you ability there seems financial of to ask work,

think we're or a for do that different in you around? your So in especially there company environment enough -- especially an think is combinations, time where you it's this do size, merits, strategic

Darren Woods

of that to back levers we the value lot over mean, Exxon saw think those have a Mobil come I levers I with really the changed value I time. don't merger.

what of subset see question those saw can of a probably are really it's opportunities there value with the a of that that. so some where levers out you we And

no course, not always to space if of been acquisitions really continue find opportunities -- as been calls at asked this the criteria we've And there's for look And is I've out has of we do find the look opportunities and is that about And said deal. to these opportunity. we value then extracting at times acquisitions. some I as change. underlying you going in value think And we've deal. of And and looked I've lot we to of creating what some as look we that can't that's the justify or that way and can acquisition at had a to have unique levers a acquisitions unique

things. continue for look to if find And them… those we We

Doug Terreson

Thank you. Yes.

Darren Woods

you, you Doug. Hey, bet. Thank

Stephen Littleton

Doug. Thanks,

Doug Terreson

Thanks. Yeah.

Operator

We'll to Jeanine Barclays. go next Wai with

Jeanine Wai

everyone. question… Good Hi. first morning My

Darren Woods

Jeanine. morning, Good

Jeanine Wai

the maybe have the quick my My for including infrastructure you've that on gears question. partners your Thanks indicated pipeline not here morning. question Permian taking spending. in invested first Good Wink-Webster Permian. has been skipping delayed. on And real is the meaningful And capital

first corporate perspective? the think that to of resume fair would from higher on it be returns a of Permian level when eventually is CapEx some kind So that the does capital Exxon call overall growth

was is complete. any the I know facility And that X Permian the you you there in prior Line to Cowboy you address given back infrastructure the the of to need reduced that mentioned growth your year CapEx before get this trajectory? build-out

Darren Woods

Yes. Jeanine. Thanks

are at our talked make -- that So we this range we was And had. Day at early I of got of and looked putting one the have tried place even investment down the we making opportunities we and as to in points think those fully we in investments flexibility that investments. did the we was Neil to unconventional on as about that in March Investor still looked within that and spend there we a sure in ramp Neil that our utilize and infrastructure space return the

maintain And to frankly, do was in and cost. pretty scale and that critical advantage it the scale

really more about we're broadly unit a in We think we've what critical. and supply you mind the trying the cost of down. through got -- the it's that's with way the to in long If think Permian to is way cost Permian, this scale that in market do the to that find absolutely we're technology. And production approaching get

investment view you well tell in Permian we're so, our market I way And on that is an very the oversupplied the which make competitive to would in towards.

the us the that And facility. continue the -- maximizing development, with sure allows to and it It utilizes date developments to make seen cube continue us efficiency. recovery, capital to allow do we've our preserve the so, above-surface cuts to to we're

quarter at in we're Permian. in now you today. Stephen that that's economic saw looking second are and -- where And I the the So outlook with we gave we're shut-ins think presentation taking the

these lives pricing. high you're rates. a think a really wells better are those of And off their high into not that's that in just early deferring maximizing of a period you if rate get that -- function lot from better the up that's -- about production economic a production which very NPV with started of an And -- wells, you

a are shut-ins of rates with that's rates. lot the production that a high bringing that to of the more we're we're kind associated so market in conducive into making play value a doing sure And production around high those upstream

how got to wells what market of depending unconventional and back bring the the in we're up lot of flexibility those on forward, And course, evolves, on quickly we've space. doing a the looking ramp

That talked have you gives lot about about So a of that. we're leveraging it. and -- there investment is too. lot We've all certainly There's it flexibility short-cycle value of a talked us it.

the today you, to good that it ability The a continue competitively I low-price the to online feel really us, we into very got we've environment. once that to is of resource when investment for and about compete about feel get in would get it what's we good challenge but that's tell get we position we're an kind making we oversupplied in market. inhibiting operating in

Jeanine Wai

cash since still is you other the long-term intact. too have very of there's flow maybe are slowing comprehensive the you follow-up point And the question think for but projects. of My being continue what invest need call, some to end sustain cost you detrimental following earlier in environment, up on these the to to price the Thank but answer. dividend? that to a a up some projects, at you an that some in we is on pre-FID And prolonged the level, at that you some different grow questions, point at stay in to Darren, business for CapEx current attractive economic if fundamentals capital mentioned the to the there down business way. in is oil long-term invested it already

Darren Woods

Yeah.

energy that I watch I people's critical a we'll how coming the probably mean in and be basic energy I drivers repetitive evolves. mean growth lives changed that needed. guys what economies that today. with like fact keep and will the energy know of and such statement, think have everyday back feel demand see of plays The but the Jeanine, we're world have seeing to -- demand I not drivers the role you it's to a

of question recovery. a and really timing the it's So

early I going industry. impact we're April to of out. our the of depth that that's -- looking true. kind way think, from have we're I probably again, is let Certainly, the to it's quarter in But signs. this the And hope play

to I think how will the is got flexibility have better quarter, shaping additional the year the rest to challenging second a but We've around quarter view it. be up some plans and a adjust see we'll that continue we'll to we'll if frankly want structural of the we again. right to. if based if now, use see but we conclude hard that we which And adjust on start it's to change,

Jeanine Wai

for you Thank Great. the answer.

Darren Woods

welcome. You’re

Operator

go Jefferies. We'll with Gammel Jason next to

Jason Gammel

the And this little based Thanks going the the course very much, quarter. to bit could a direction or host you elaborate of is if that some they primarily see, the I further of economics gentlemen. governments? be over at plays, I you're just wanted curtailments of to of sources to on get undertaking are the the production upon the individual of

Darren Woods

economic this XXX environment with koebd category in the challenged really the it's we're in Permian, around that preserving and competitive of more think of I or those. half of price I would of Yeah. Kearl that deferring that quarter low a basis. the be is And in get that other we put which half would from taking about some steps a think in supply higher Permian second I in about economic value. the we cost No. value by you then and look way ahead. the roughly is would tell two-thirds about say, Stephen's that to Kearl,

about And the us associated -- of space third about the and out so, around on a by the in with third a restrictions third then world. about put unconventional a Kearl, governments

Jason Gammel

useful. Yeah. That's very

that which question, follow-up going my was been strong. pre-empted actually performance operational somewhat to Kearl has note actually at quite the You

economic constrain maybe back bit that you to more talking -- that could about logistical potential near Kearl any in could the So, term? about issues the shut-ins elaborate little coming you're a

Darren Woods

done written to you, there's XXXX. in about with made lot chain April that. XXXX. tell again change I change would benefit Upstream. We have We made our reorganizations the this a in really Sure. the another in been beginning that we've value the the Downstream, the know Upstream has been of along great I our of

the end industry to this, end into if we in terms all better anything as I wellhead the from to And best see today, was to the ability so you customers, the ability along. nobody had our headed that see frankly. way look to down Certainly, think of in

not clear constraints. line and that process were into making And we we early how had sure so we that sight logistics very move a of do physicals the find we would of that

on in Of capacity the rail in and takeaway investing capacity Canada both in Kearl type. and logistics been with of invested And takeaway course, the Permian we've we've know and there out you there.

And think and where sight really to position good move are a barrels. line happen going respect the the so the to logistics of to we've got of with I bottlenecks secure

And the them on a lift that eye the resource keep we've of team that warrant line been is that making the world, -- those economics keeping we of barrel everywhere got around has plays, we've sight that. extent but out our two not basically flowing sure that applied we just an of how to clear

have because the fact take get the appropriate of see organization the kind of we logistics caught steps So we some and those was that the them. constraints of able others make with talked to sure about, that not just coming seen of have to any didn't

Jason Gammel

dealing with appreciate Very Upstream.

Darren Woods

we Operator, one call. have probably time for more

Operator

Okay. JPMorgan. with next Gresh Phil We'll to go

Phil Gresh

morning, good Thanks Darren. Hey, taking for question. the

Darren Woods

Good morning, Phil.

Phil Gresh

for And So was of asset -- a of plan. this asset one the, sales. I'm wondering obviously the guess I multiyear guidance just is environment your tougher bridges sale

lever So you -- I on balance a assume the terms term that get with in interim. from shorter the balance in need the the pushed the And back next impact to guess, one lean is need of the that sheet it sheet bit? you might of kind lower is to fair two that that more years -- prices to to then in

So guess, of all the just those curious that back flexibility something the two question toggling Is to look Thanks. sale there, that to how the kind between about dividend And can isn't does asked. dividend items. you it if you think I bridge it help? do come asset is being --

Darren Woods

said to program a deal we what than divestment have, so work changed, space be that in hasn't what finding the the that's list respect execute the I so that and value is see Good remain buyers find put really getting the really of question and Phil. to you're Sure portfolio restructuring the all in are them assets who with that higher with you. -- will drivers marketplace we morning and still to that we those that a have motivation place. we transact. of on have that activity a along the focus value a the would absolutely high-grading It's function our we The a ability assets, and divestments Yes. there. around say, we portfolio and

valid think I to is a I And in people cash. that where environment of your like point, is to are which this one an correct do going be and strapped absolutely harder think

expect that of with just and we the business the availability how So respect not business. ongoing dynamics to buyers. because the think fund see slowed I divestment to and that we're buyer, would the to we're market on program And the how seller counting -- of about going

to we're that sales. from benefit assumed We asset have not going

have. plans on we the of essentially that based managing with our All are portfolio

Phil Gresh

Okay great.

guess, for The I gave obviously impacts the Steve. your one items this the quarter around around you one also In just impacts side business. second these X-K, you the guidance derivative Downstream on gave the guidance is and around of inventory the

think I the that of impacts. a I bridge? into baked clarify benefit little with the there's magnitude bar think that could was specifically But just the margin you confusion in those Downstream derivative on

Stephen Littleton

if Phil, They obviously, about was minus. margin of Downstream the $XXX-plus it weaker back that million to a refining And was so you about offset brought or at the Yes. $X.X then business. in margins. look by or factor benefit plus of billion benefit to the financial included down that derivatives

Phil Gresh

you. Thank Great. Okay.

Stephen Littleton

Phil. you, Thank Operator?

Operator

At back this time, to I'll for call closing turn the the speakers remarks.

Stephen Littleton

your and steps you for for us but Thank you position appreciate you time We you be of safe. not and questions highlight growth your these this manage challenging Thank Okay. to to long-term appreciate hope through recovery. we're in your to only first times, We eventual and rest morning. thoughtful results taking and ourselves the day. the the enjoy please allowing opportunity quarter interest the

Operator

thank participation. does you today's your This conference. conclude We for