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XOM Exxon Mobil

Participants
Stephen Littleton Vice President of Investor Relations
Darren Woods Chairman and Chief Executive Officer
Kathy Mikells Senior Vice President and Chief Financial Officer
Doug Leggate Bank of America
Jeanine Wai Barclays
Phil Gresh JPMorgan
Devin Mc Dermott Morgan Stanley
Sam Margolin Wolfe Research
Roger Read Wells Fargo
Neil Mehta Goldman Sachs
Paul Cheng Scotiabank
Call transcript
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Operator

Please standby. We're about to begin. Good day, everyone, and welcome to this ExxonMobil Corporation, Third Quarter 2021 earnings call. Today's call is being recorded and at this time, I'd like to turn the call over to the Vice President of Investor Relations and Secretary, Mr. Stephen Littleton. sir. go, Please

Stephen Littleton

Investor good earnings And interest Welcome our President to ExxonMobil. Thank We morning, appreciate Quarter of Vice Littleton, call. am continued your Third I you. Stephen everyone. Relations. participation in and

earlier Joining of Financial Officer, Senior Kathryn morning Executive and available this and remarks full The the are our set me Relations and slides, Mikells, on Chief were our and Darren prepare today with President Chairman press Chief Woods, Vice website Officer. our section of Investor along presentation made release.

Darren call this of provide our leaving opening questions. During additional that comments, from reference morning, more number will select a your for a few time presentation and slides

draw conclude X:XX cautionary I over We the the Central to Darren. the and expect statement turn on at call will Slide on slides call the of the website. the to end attention I at your now supplemental X, presentation information to like AM to to Time. would also the

Darren Woods

Thank our strong It's you, your in like Kathy been broadly many. welcomed I to discuss we're welcoming Kathy management and results, has her ground the to the and value, team of first today quarter making course, the can to good with progress running, you call, I'd and Stephen. take to by will the by growing organization. third be tell hit to know shareholder be what questions. Good in I start has that you seamlessly morning. joined the

and work to shareholder a an tenure, value. morning. grow comments I'll counsel. and overview full our brief website, Company sustainably with this of benefiting position experiences, slides of keep wise on the early to her we we're from doing the already remarks my in we're the posted diverse Starting set Since While

built fully scale, time. Our been all industry-leading our also the is on for drive people. made and our have some return advantaged that base portfolio was excellence, focus changes the achieve improve has technology, work significantly the to ongoing to It of significant growth. on develop increased and earnings value we flow advantages, first investments. It's grow to our in business to and of cash and This competitive organization industry cost, us a functional performance, the operating allowed leveraging high of down most importantly, has our integration, priority

future and began driving zero role and of At a solutions have returns Our to including carbon business, range opportunities to strong to future cash a fund in develop robust plays lower to the and to low are to ensure take carbon maintain competitive continuing are fuels, and of us pathways and capture areas. businesses strengths, a we positions a low carbon to a balance wide same future the emission and to in generating time, investments. hard our The driving plans build sheet XXXX leading we work later in our net use decarbonize scenarios, hydrocarbons. successful

optionality competitive capabilities draws and used This our builds in carbon businesses. solutions on us the low into business established in gives core Our plans. resiliency our same strengths

shift takes we will advantage. shape across demand our As the future maintain and our businesses,

with third as Now, quarter. excellent operational the chemical worked value progress our by hard cost We cash key quarter delivered highlighted Last versus financial flow. we Earnings I our were improved cash the recovers. projects, milestones. The set significantly organizations work to pandemic, quarter, Year-to-date and performance. billion structure total year the our our businesses. and progressed portfolio to for third surpassed That I showing we the billion quarter the improved of earnings the best-ever $X.X operational will $XX during and XXXX. earnings of upstream reduced billion. of industry-leading is on $X the number turn just In a strength continued and improve position, itself in and debt, third downstream performance market

improving of with sight costs during and earnings future a Good plans. CapEx CapEx Cash lower business improvements. of are foundation of With consecutive the structural a performance Strong for solid down dividends continued now and We the Our $X.X billion billion in debt improving dividend to sound developing market, $X.X our an annual operating management than resulted on earnings and billion. paid increased the Flow XX quarter line dividend, good approximately a clear coupled of growth. and in annual power $X years XXXX maintaining rapidly our provides after of basis. progress

We and delivered the provide opportunity our November some planned to take would plans details of will I to and additional provide early a of our objectives. we industry-leading finalize call of will key overview with like brief XXXX, operations. reliability. over in this and in priorities the Starting safety In December. course performance

intend go-forward sustain position. leadership Our to plans that

emissions intensity XXXX. reduce significantly to objectives established by also We

We objectives. work by effort, off. expect objectives ahead we structure, expect cost billion of in XXXX. significantly this more our paid to working also and and bar improve We're on now the our our $X structural this focus reset meet schedule than XXXX Our the year in more to to savings are deliver than to raise our

throughout and new We greater synergies to our organization. continue find additional efficiency

versus $XX spend $XX billion. to expect range significant represents within plans. to pre-pandemic our the reduction capital a previously of our We keep This communicated

Over our technology. improved of the are project changes and use businesses to we've made organization, new

plans, deliver earnings induced pre-pandemic pandemic cash We and expect our same in the as to flow delays. offsetting the growth

the we we XX to to our accelerate our restoring adding already within of dividend, sheet. very capital attractive is expected to By strength is of cumulative reduce addition, progress substantial in low XXXX the our emission expect On up we we an in well year-end, year From business free made In debt-to-capital increase XXXX, to in Wednesday, announced a XX%. billion. reduction This yield. what range balance be funds further $XX be projects to investment to our to grow emissions. can carbon solutions efforts and

in repurchase year. next shareholder market are over and given we expanding billion business conditions, addition, by beginning the XX our distributions to program up In months, $XX to XX improvements through

including details Steven. back competitively the next and us I range quarter to bottoms-up, more year. are plans year priorities, from for adverse a line positioning across deliver. and capital you while They to first continued efficiencies conditions. flow strong forward adjusted being earnings this allocation to the are with that, our ownership a scenarios, of future flexible They Our significantly balance commitment into wide of to and turn We sharing X later look cash market and it With strike can built pathways. be drive strong with now a will net and grow

Stephen Littleton

open Operator, for Thank please lines question. you, first Darren. phone the the

Operator

Thank questions Instructions] will you, one be conducted one that request Mr. limit that your Littleton, electronically. so [Operator follow-up, may the with possible. as initial you to We many take as Questions-and-Answer session questions Instructions]

Ms. from line Leggate may like Barclay. will instead Wai our from first America. your We'll And Wai first Your on Jeanine come be with mute. Bank Looks of Doug question of the with question line she disconnected. take

Doug Leggate

had look is going against investment I [Indiscernible], over this everyone come out opportunities morning, Darren, the kick have, I'm curious low forward thanks. to the with you've of faced board -- board your least strategy opportunities, how of you the members restraint usually the board, to under external the question, stood of new the least you're by perceptions your you cash when gas got all at cash you intensity strategy updated -- off and to so how to welcome, that sure relative a chance my forward. commend present it just those to new the level on board years, not have to a carbon I'm it's returns, or those perceptions first Good and carbon working and the have margin got ludicrous yesterday. hoods question same the might -- which the hopefully. the comment relative at a of were just curious new just now up -- Kathy, several refresh as I'm those, to looking through patience testimony. with [Indiscernible]. on. investment next members want you've evolved be, what free at that expansion the and you've with And

Darren Woods

and Doug, morning. you, Thank good

look look how at good I discussions. we in our get those these to your have the start come broader of the and we've as we advantages that been of and under businesses, Company the -- perspective which tell the in and having, I you, It's discussions board diversity very would a on maybe board. comment the and hood I an folks it's just a opportunities. the board how entire and And bringing opportunities little and think themselves a group, engaged maybe approach of point, the understanding into manifest we've think constructive with got additional across lot

the portfolio looking we to do that I'd talked to board the we're back think going solid help and have, it I on shareholders, the low a the do position But of sound generally, in one across the of in of emission a terms of recognition that on there's of little describe a distinguishes recognition from how the emissions consensus a strength the a accretive if investment what of would industry-leading capture established day, opportunities, launched We and ventures was, these that us earlier and our about that -- fuels opportunities starting we at year, focused the investment business have. that in our investments. from later say, as find that's context recall in mentioned you Investor carbon know, industry. you also drive our then opportunities. rest you'll XXXX, low and there projects And way that we lower that forward? in this I I but we the carbon

our last forward, spend And to time for have it's Investor talking both we Day very talk is advantages. about and in our established we of as tried a more the so, capabilities. are year, next year And a that Investor think leverages mix well businesses. good and And really share looking competitive we with Day can [Indiscernible] therefore, found to about in formula really invest that core our what move aligned we'll we opportunities the existing continue

a capabilities, we growth Because the responding across Given that. with -- we invest recognized unique board, to Company some the strategy, world, same And that developments marketplace. with I business capability that sure that then the we've to from the we're in of that return as generate the as discussion between portfolio. And solutions have carbon is that has. the in a resources make are those having this ability on and been that policy still think that we're to around solid and shift the very opportunities there itself and manifests drawing move low the a exist

somewhat opportunities develop and footprint with global uniquely our advantage the Our markets gives adjust to markets those that of we're broad very to set as a and exposure in front as taking can end of on sure we the approach markets us respect develop. of that they selectively to make those the transition,

So, space that whole. I think of we the strong advantages a there's as bring a to this recognition

Doug Leggate

Well, that. thanks for

Darren, be want don't If this answer, you I feel to follow-up. the my

Just here, European aka some a I consistent I clarification. shouldn't about fair? so USPI with big that other we guess, of X%, is the billion is XX pivots expect the models, a The think strategic

Darren Woods

have -- of areas of I help think with to this number addressing growing solutions needed. it's need particular, -- develop solutions is that is recognition know and of are what And yet a I've like those. complete and of say broader be and challenges I ExxonMobil companies going that's would Doug that been to number And right. the don't the space a we for in pleased you the this

some unique portfolio can and have it we're call proprietary So, of the know, the we and this more, in on that good there. therefore you what think we're solutions where today, space commodity about we we that technology be generate think resisted leverage we talking a will returns don't boost focused and to unique are what leveraging as we some where capability And returns. opportunities we

like to going approach an going not to of here advantaged call our projects what so, the we've the industry in would rest standard, tried And be generate to be it's is portfolio. I

we as investments technology are think I that think lower in the part our growth resiliency the XX greenhouse it's growth by of projects into putting around necessary you those gases. and to sure that in about building projects billion, making

seeding generate and the that some more And opportunities those that showing got that projects projects take much we're to would we're projects robust. anticipation the in that become in that lower as of policy we of the larger we're work going we've that I are that building that those and then And the of that, to front pursuing position that policy what develops, So of to we're say then we've of additional for that's comprehend there doing the advantage returns. development And And projects returns scale recognizing -- in anticipation that's require be developed take much of a spend that emissions. out will it. advantage with new policy.

Doug Leggate

Kathy to to ExxonMobil? dividend should for stamp dividend and forward. commend Thank on the see that. appropriate metrics put return to you. What My [Indiscernible] coverage is, disclosure. I and okay do you your so also is if on be for may, dividend [Indiscernible] a remarks a proper Company How policy, for ask on like that's speak if my question like so coming Stephen, deck, that's slide in. policy so Kathy, terrific expect you shareholder Thank you we I'd the follow-up structure, outsider prepared an your in up like and the question that capital for for a going as

Kathy Mikells

To in allocation back business, project. returns first we've for invest projects how of to we advantaged Sorry. strong strong Guyana on the [Indiscernible] start from the very say, Obviously, take that like focused capital about And maintaining we've on would things have a that all, do I dividend. with, Doug. been we step think got a that's and bio-fuels to very and

in I I course In balance if this that sheet. and strong the And dividend have a will shareholders job by priorities, year the a think that great balance reduced that, you've as obviously for the through a we After you've this $X we've available cash, strengthening that announcement that's quarter, look really debt those and billion. our buyback to we we the it sheet, us. seen we about got protecting of to Company then over consider that went with seen the had. and priority pandemic, and focus did distribute

also it's seen have the looks would pandemic just ensuing. protect to and important think flexibility the reduce was dividend I the Company expanding Company significantly, part that a approach have balanced recognize the capital pretty to to its in as maintain

that's are as we it. think repurchase we how we Obviously, to those capital think flexibility an And capital so, but have are do about shareholders, allocation, priorities. about efficient our way programs but distribute share to

Doug Leggate

again Nice my stuff. thanks taking and Welcome for questions.

Kathy Mikells

Thank you.

Darren Woods

Thanks Doug.

Stephen Littleton

Doug. Thanks,

Operator

to back go Jeanine We'll Barclays. right. All Wai with

Jeanine Wai

Apparently, getting everyone, thank after morning, I back know Good you. my thanks Hi. me the to don't operate queue. and phone how for in work anymore so maternity leave,

Stephen Littleton

Morning.

Jeanine Wai

but from is carbon that extending from and to little morning. reductions essentially on just medium-term share Maybe spend that mandate increased Exxon, we the question, it that can just against gas how a in that capital it, medium-term weighing way, the investment will range. now Good globally warranted, just mandate allocate and reiterated about energy up is We new board becoming know probably low a evidence different a you does not oil have Doug's the but CapEx current that following the investors understand what's larger you to and but square asking and is beyond solution with the how CapEx transition, seemingly dual emission talk range?

Darren Woods

off with it then onto that add Kathy got her. start if anything I'll on pass I'll 's and to

forward time drive more the as same a which dual face future. the move lower that's emissions from think source You real But broadly one to clearly thoughtfully for as living. way system a balance Company. compromise I and you emissions the that that really to And that that is think doesn't a moving of lower it a sure a to populations talked striking to mandate about in challenge recognizing do society transitioning that grow. a trying I penalize and need you're energy that at we and to standards as make and another, and is continuing today energy people's a And and

industry had at there pandemic of of come you and into out of what's constraints to and You when we've the see challenge going of as that in evidence lack And little of two look of -- in the Europe severely business depletion broadly happening together a -- investment in the XXXX the maybe the and lower into points. in demand, you and XXXX. lack out growth the demand, of the lack still then those you XXXX growth lower investments lower supply demand, supply coming in and that growing put get pinch these some then

our balance sure that And and recognize to perspective, leverage try the at so, our think make I of is challenge this and experience of conscientious we appropriate forward strike the were that we're and a pace. have to management space, understanding and the in to very it our moving board

industry. In leading fact,

to during leave we've the the balance. our -- some of lot As able the less difficult we're reliable to back to we our that but of see work had been standards penalize at and the through coming of as demand. and I made pandemic, in work people affordable out and -- projects whole drive timeframe you emphasis you work those forward. done today investments any this capital done manifesting come the access those, We're communities pandemic they've the the and of lot we our among I've portfolio the we and this haven't dropped all the started and we respect themselves. in changes structural and and with not think and the of them that look and energy, have and through very and XXXX. slower the competitive value that of to emissions the We're we think to that's in living the benefits of into pleased to a the with those less that the and I -- technology same XXXX, that market bear generate with projects. the we had on see future, none leveraging collapse moving because capital that still that work. of behind expense and organization kind foremost their are XXXX, making, been with advantages recovery, that a strike if fair that some We the we've But

a you're new spend results know, the And in itself you actually laying projects, future good testament with the ability we area, we've at in that we work the we've lot that as to that manifesting done the to of more them. then and seeing spend bring think said opportunities our managed where finding and that those well. we're with do that look down. in if do you what the A going paused into As that's we're lower out, we carbon to But associated the work to project’s organization. efficiently, were I expand space

Jeanine Wai

question Hey, guess question share my great. on is Thank And second -- you. the I then our repurchases. second

the to the you determine guess curious repurchases the XX time for So, frame, and ultimate pace will we're on the amounts? the what level the and did about I months, XX $XX X-year to how just over conditions decide next billion up and

Kathy Mikells

relative cash Sure. that our walked Overall, were through expectations we the we're decided allocation plans expecting what earlier against I priorities we're at the capital that amount to going our the looking out to generate. free and flow the pacing in future

of terms the should provided. And conditions program the range and we provided Now, about in turn timing two-year range that think out with discussed. range market that exactly conditions have start the to that's off I as we'll But rateables assess market over hence to that time. a pace you thinking what be, the obviously then adjusting over to we going we of lot that do that in

Jeanine Wai

you. Great. Thank

Operator

be will from JPMorgan. with Gresh question Phil Next

Phil Gresh

thoughts asset I morning. your get good want on sales Hey, first. to

opportunities over pre long billion-plan making about thinking slides highlight, look progress or there. still talked sales certain the we asset few you've hold years? optimization streamlining In I'm term - out just your some these the next portfolio COVID. program broader As $XX $XX does And a you're the part as in you're as past, how the of and wondering about billion

Darren Woods

looking we coming the was around divestment laid set did really portfolio, for prior That you Thanks in was I Yeah, that from opportunity. out. was and the the the the Phil. question. thought the would we hasn't standpoint announcing tell that in assets morning, work we terms what at of grading portfolio we're changed of high Good what anything that out

underpins to In fact, the we say can of strengths growth. I and we I order portfolio finding on value leverage the course, buyers execute where that think to obviously those of, a be see out need to evaluate that's then would and asset graded And our high-grade continue think our portfolio. we divestment you'd that better ability who what will that, that competitive that portfolio high opportunities consistent in what of is take portfolio, opportunity put with function we a set the

maintaining So to out lot that that's willing would the we going didn't work did you; on. tell not of where value this in to we push work see expected a a push our year market to I really get. last space, anything but we

think to we're much I we're into, with attractive of response that are markets looking kind now consistent the seeing more buyer market more valuations for. think and what and as we the sell recover,

expect market compared to and So, to in when the here space we'll XXXX pick it continued my view was up progress certainly see more I challenging. is that would much

Phil Gresh

buybacks, about at more if your if environment, the $XX And billion dividend just the of improving were be could should billion at to CapEx cover strength in now, I $XX in oil if price. $XX about even to were Brent, in be that'd $XX layer looking And that ask on you in XXXX, higher downstream the would range. it. $X I able it to question buybacks, chemicals right the Got one like seem

Balance would buybacks math you how higher just could it I'm than be excess obviously deleveraging just if and plan more Thank and you. you that could think still think either maybe about and ratable Brent cash seem to those. covered reasonable Sheet are the $XX if more or right maybe towards curious at that. it is like is So, that go prices

Darren Woods

we're to capital to what has me leverage anything very the going start target and then break-even higher one off in sure your are. the we of X, what issues such seeing Kathy opportunity a than haven't the if the of centralizing chip corporation, there. technology, -- I'll add, is thing had resulting say that invite think putting quite but there. her that pre-invest, working to again game, if put the to board. for to and reductions on development bucket a what some that -- but together, the We paying on leveraging bit delineation considered we're of broader ours doing That's and on in need. deliver a to would work plan in the really best take what capital out success testing, the that improvements. course, do forward, but the significantly long long of an out now, efficiencies, Permian that, And that they've to which plan what and making are ExxonMobil resources a which a I organization that projects are Again, the recall of their doing come, I'd doing to I ExxonMobil trialing some significant there and call We which now we're We back is here that and capabilities for had best to capability I spend. And we're of it's the got we're a the the and a calculations some a on huge short really just I've through the the to the and bringing two the were continually Permian the you lot seeing you so opportunity work across call required off we've move been the project portfolio. that's our understand Permian that's from technology And with bringing would and work frankly reviews -- to that been corporation see ball OpEx function Their to strong a upfront in demonstrating. in really fully plan lot doing to the capital. other the that's laid with and the 's strengths and ball technology. that put it the we value leverage in we organizations but were Permian game be our that and focus that laid refer fit what same we less in out referenced we're -- in into the far having respect efficiency And in to, was a is I that drive the productivity also I'll buckets. other I organization been

depending going So I'd is. that's how the frankly, about. And say to we're to market be on able how do everything we've talked

is hard some pretty that ranges to the and that built allocation market and plans balance going with environments call really additional to some and minute. on her market robust to talk for very about some but give the to have challenge capital let a will we we're forward maybe find As know, we wide higher we Kathy, work and it's low if that And the side, talked than cash resources won't that about. compromise you that low-price we've

Kathy Mikells

intend other clearly our which address Just continuing do that and strengthen balance that. you referenced sheet. one to We that's to thing I'd

the quarter, as leverage that within of the quarter. so, at into we've expect we talked And And move about a at that further the our in more technically look comfortable ratio that fourth zone the quarter, at we fourth reduce this to XX.X. landed fact think I and end range

the of to would so balance and further due, program looking expect repurchase enter see over rate out we time. what coming pace strike that we're lower like determining we to look lot of a the share, we to moving next looks and, bit share which Again, have the of commodity I have cycle a side, on end As repurchase the looks the we to like. what the going in is reduction retire, right in would range debt year, debt expect do towards and to a as XXXX,

Phil Gresh

Thanks. the appreciate thoughts. I additional

Darren Woods

Phil. Thanks,

Operator

And Devin Morgan Dermott go next with we'll to Mc Stanley.

Devin Mc Dermott

Hey, taking good morning. my Thanks for question.

Darren Woods

Devin. morning, Good

Devin Mc Dermott

Hey.

first on the on is and of So, just wanted the I some efficiency to one cost ask trends.

in You've job the now that the the of seeing that previously done on XXXX. and a the you was the portfolio, wondering is to extent message comment exceed trends ability talked really good whether you're I we XXXX about by any the to latest it inflation, that look are of as and into savings structural offset of inflation, you $X service if beyond. billion not some target executing labor, on cost or inflationary be and across through you some light

Darren Woods

I Sure. that we're all immune out you pressures around the the other business I just there don't about tell would to impacting every think world. are

And we were in we think into in business aspects think projects. I market bring with put projects, and these into start somewhat, of on up our that think the with contractors spend projects some longsighted took we went didn't approach pandemic the We pandemic, if respect. the that. capital way working and I maybe them big seeing certainly we and thoughtful with would those out counter-intuitively, in area with fact just instead as we a going we to and the enable respect worked our step when of that a pause somewhat so, to the of about partners on then how back our those

base suppliers most cost price so the to year In And but cost the working on we lot offset work a and of in marginal space, more pretty of partners at positioned with -- are to market factors of around some our in forward. well inflationary of energy of generally or going and advantaged we raising us And with certainly barrel pretty good our lock is. below the the markets them business I the We're able work where energy point a prices our space that is some to those lot the of certainty we're And than last the rest facilities In efficient done and while opportunities move across think to manufacturing. a so, the stay allowed did board market give that our last competitors higher that experience will impacting in that in capital commodity not supply. those able because time. pressures. the course, the based these and that's advantage, for job we've be were

it, then, So in inflationary I more with efficiencies that's offset the -- that They and richer margins we've now synergies and with running that's pressures them higher and organization environment And let environment. and we chain different more what's have now, margins. we're supply take to think then up with able the organizations place, approaches that and and much and call generally, with apply a a the being captured the more, target-rich and able left new me we're in that activity. with to I'd respect are that the taking say

So, efficiencies we're find able inflation. those offset of to and lot a

deliver still cope aspects different with it the of we for in generally, and set we business. managing for earnings target So, that ourselves, the ourselves. growth we're parts inflationary to set pressure, different the happening on the But basically that

Devin Mc Dermott

Very if results efficiency that And for mentioned on -investment pre as Very we look second then activity of you trends strong the production pretty cadence efficiency seeing bit there a I knowing of Permian. into that's you before, the could talk improvement some as wondering the quarter, did operational you're about in that's my kind the was the an standpoint, that sizable side here increase on and in spend the well. also from question some helping in expectation you of year, a XXXX. little capital more Great. helpful. in this the is

Darren Woods

recognize a trying develop Sure. this call we I'll -- advantaged respect to Permian. that what be would with we Well, to be would had you it more in as acreage approach contiguous know, manufacturing the

make where move that the once sure there, is and that that focusing we identified But the that paying areas, position cost-efficient the we area any but optimized very could we the You'll not the up the on we to everything the make recovery. acreage around that off. making rates, develop to as We thinking sure the reservoirs maximum some had, approach, were investments you in corridors, for Neil's just way now because talked knew about, instead -- highest a looking of in I recall at in area as that productivity. around, the initial that that infrastructure same X high in on we made we we invested paid in is are invested delineating we what sure weren't we focused subsurface in in and making think acreage off. are we different wanted all same. sure to that we and that's at areas that we the time The to had going do and so upfront past that And -- a

from broader -- our continuing organization, positive technologies and and think unconventional area and results is, yield in very manufacturing And here much and space. group well, the our science to, Permian in some that play seeing field. that our then that technology very As results thinking I to the research the into new the some at on And bring we of bring a and third benefits of there. from focused that from fundamental more is, we've and capabilities as is into you off paying continues we're out how it Permian, some what then that try some you're are the from mindset is look efficiencies. we've it our We're the I the doing of think metrics in the about brought gotten And corporate technology.

not is we and forward space, making the we we're come of of the may rigs here doing to sure ahead optimized debate in And we're do And the sure on making activity, I just a manifest you're boundaries plan next So, that that doors outside, the are venture are philosophy. and us that areas some starting itself resulting wouldn't to and to same make and better we what as around until don't production. we my better talked those optimize get of about get areas we've in stay to production within work overall couple more in don't think and that's capital and the see as sure go that the within can the is what of what we that see that's trying outside we're those three that I do that seeing. technology would of of balance out we the space striking. we pieces work maximize within we'll the core those into staying that see tier equation that that there. I expectation continue done With efficiency plans other performance optimize be that respect to opportunities and out

Devin Mc Dermott

my for Great. results. Well, questions. congrats on taking the great Thanks

Operator

with we Wolfe got Sam Margolin Next, Research.

Sam Margolin

Good you. morning. Thank

Darren Woods

Morning Sam.

Sam Margolin

front the process conceptualizing I tighter the question the asset way projects we an on or on, as you've into either range capital that than day things that are the you think fund commodity a back in influences board outflow carbon about the the well. of for assessment think range is flows is that that but the rainy the is the hammered sort probably and of market fair end CapEx it for Do think about in underlying opportunities is that sphere growth out, we otherwise. price range earlier within point range is today, obviously including breakeven being as the do still base the that's the low I spend How communicated think First recognize a assessment? break-even and that XXXX? of program to about we're arise which the special and think I And a the top

Kathy Mikells

in, Sure. at we're end that this $XX the provided. and constrained year, we say our billion been spending think lower Obviously, $XX we've capital has billion range going to of come to I'd purposefully

projects. significant chemical in on that significant gas, more number we in downstream and quarter is we'll I'd Brazil as our drilling intensities mention so and into and paused Auraiya And expecting greenhouse there. Guyana, start underpins now reductions Yellowtail spend are kick also We higher look a the XXXX. is up will investments spending appraisals, further fourth to as bit head of of CapEx XXXX. [Indiscernible] the We more focused and in we and increase moving quarter area. into in see What emissions Those into (ph) be a obviously fourth accelerate a pretty will and heading in in startup that the so to significantly spending restarting, specifically that that are into

that XX leave level ourselves to put flexibility clearly, cause for today. billion would clearly can't range, sit as XX you fully kick think up, I'd of anticipate we we to to and some about If how say that that going that us in that is in here will we things us range then

Sam Margolin

each Reconciliation helpful. carbon in capture on That's seems like been the in Bill very different Thanks. And a The with incentives follow-up capture. process them. there distinct come carbon then few now, a drafts just language have that and is have kind out of

in think you you and these sufficient and a in you've real activity that early returns acceleration in think draft As how about seen bills drive proposition the asset ExxonMobil are plan to 's class, do for that they're there? you

Darren Woods

I if is, the what's harder political of it's Well, that go. where Sam, predict trying to coming than as would to are look out predict I going or process don't prices think it, to way hard trying at know I

the that the the talking to making maybe value investments here, just again, developing about that some taken to and than our advantage. we're bring we're carbon sure leverage We expect has itself. So with want some business that low the to In philosophy work we manifest doing little value make unique would a shareholders. that value spend and unique to I start foundationally respect time we've with for that

started capabilities low and XXXX are advantage people do rest our the this that's in the of was the of back how technologies skills than have mentioned find that the in so to and industry. capture the of take venture I that portfolio foundation we and and we do this emission of different ways And and fuels carbon that we better to

with philosophy, So existing a the sure making a foundation. that we Then is portfolio develop that's that as policy. accretive

on So not then disappoint something not developing and to that going here is betting the thinking ultimately comp, us. pop that projects

of with the to a around what different footprint, And to -- carbon we've can we us, have policies given since and able there work of -- a and we broad understand to we're that really into us want launched governments advance world. their how number so equation tap out can we low to objectives. reached And the solutions got that that help bring some to to are

tier need would I are accretive discussions with fundamental happening, [Indiscernible] certainly those look would help. we're of because to tests that with those but for expect game. so we -- the investments, us if investment another behind not we see resources need the policy be the a those that give in returns to -- be will bear where until but additional regret need Then would is those would policy. And we other the develop Don't now, to projects. layer more we say are to to -- those don't the there's bringing given make And wait policies there's some existing place,

to when to drive very to be around influence clearly need is policies industry, would and position call going policymakers to to And we're learning that need, policy and so, then all advantage the and projects. I emissions respond to so society inform It and world. to comes. developing those one down the policies, in lower We this some that what going the what we're we're different better then thing think being Because take world, around want the what this achieve very around policies. very the lead clear, policymakers helped us I those and starts to we would as of thoughtful informs can the it ambition, it also additional order required, and and for to to curve be articulate longer-term

Sam Margolin

Thank very much. you

Darren Woods

Sure.

Operator

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

Roger Read

morning. Good

Darren Woods

Good morning, Roger.

Roger Read

that, about this to than think billion, but playing Phil and commodity bit that's doing you follow-up force little OpEx yes, to component a of that's growth we again and portfolio $XX trying billion into math the over growth think how I understand in it, a the And should was environment. annualize front and $XX in you against the at $XX the at have on but And just sort that realize more are what roughly versus to about the not $XX Where we real, about questioning as higher of we component. and cash real look maybe the years the couple you'd as pretty wanted goal what be reduction Just the next you the portfolio. we today? corner, prices stair-stepping earlier of earnings, would XXXX on then quarter say identifiable, probably and wanted are take you

Darren Woods

that sure of just market in helps. make require doesn't think terms holding that about how we're we that me to Let start ourselves a the and in organization standard

making normalize respect the with for the comment try the We to environment. business. and to that So, we're price of doubling potential earnings cash flow

it's assumed So, help we're going doing, from take that we're that the up we'll we'll there basis and double not position. any so markets or the improvements, that make we'll to higher, lower, be market, from if structural work our it, and if market in even inconsistent, the instead, robust more very sure a but then price do constant still than assume -- it's if and that, the

longer it for we year's term. certainly in And we're consistent margins with so basis that using this that's how the -- this are about think not quarter's

something some from plan. We assume are We market itself the it's manifest advantage today. the that don't getting that through

said, through from. when That'll in And where Talked so plan, each huge delivering comments really of that's And we I Investor the the that you those, are we respect a contributing about And with be then part. speaking endorsed, that the their foundation I Day, coming projects the more businesses, as are you those think we'll factor. projects the important some spend of to expected. what time look across savings explaining when and were making. start through structure I come important and a to an think take get evaluate out, that's get obviously as efficiency we

Gulf already off. investments you In fact, had we've higher the our anticipated than a much couple give more Coast for examples, in made expected. that chemical those we above the at reliability running look many throughput well started the and than things are just plants, of if that and we we in you cases, I'll delivering AR basis,

value. more delivering So that's

a lubricant is at Europe, well low products and high You look into value that new-to-the-world delivering the upgrading technology, value very basis. above performing out very, was and that hydrocracker in the very well Rotterdam streams

efficiencies getting driving molecules are value, we're very, into space we when high-value, every and projects that, doing refine growing very and cost, work look differentiated can that a penetrate reduced in market better the lot organizations business again, business. earnings positioned, more business business products chemicals course well, this lubricants really And the the high there. so with that those that we've the squeezing, so of turn can from the to of we grading lot business value record that business, the seeing and and upgrading And that year well. working if -- some growth in to value into these grow comes chemical are doing in then their a products. you combine value those higher make that And in our continuing the demonstrate sure see that finally, benefit a are just segments, and that at and we with to customers talked products, about high-performance molecule and in downstream. the the continuing just to at doing job high the you technology-driven very our technical of are Those to realize great benefits differentiated they from They and all is and a of that value products.

across of at us such a portfolio pull, to strength advantages of to grow levers one lot can diverse and gives the of is having a it So you look value.

see that and able those throughout projects a would of this then is and in I lower And making less much been them. a And benefits those call deliver those cost, course, of all lot so, at we're is make point lot of you to the final a I've capital.

And playing out the into that in benefits we've the so deck. laid that's

Roger Read

contracts. hesitancy really let's And side seem term on over Thanks. to say, last have guess, LNG know there signing strong gone -- markets I We couple that follow-up question. Global Great. then years Okay. they've some consumer be been from the Gas. of

obviously, and sign you've wondering, potentially that you contracts terms to are just process. in was market And can offer in the changing in ready some willingness I projects are You're that any -- now? to some of or term behavior, got customer LNG others clarity right go

Darren Woods

if the market of is in reinforces secure of anything, would of certainly, of importance source global supply. and sources challenges that supply the think the I just seeing what reliable that I some they're gas suggest No, the

material so, terms those is we say opportunities And any don't how of I -- in market space. I in seen and this would consumers at shifts looking haven't markets what the the the in are

Kathy Mikells

long-term contracts. to to be that weighted About the so heavily is portfolio case. our to And continue we'd Yeah. expect XX%,

Roger Read

you. Thank

Operator

right. All

to Goldman with we'll Mehta go Next, Sachs. Neil

Neil Mehta

XXXX. above see Good us and demand you margins the into see in the forward path whether going morning, where -- of a given footprint, to then mid-cycle we're oil have into and refining you your state guys will see to downstream Darren perspective large love your that team. or unique have real-time in of the recovery, how perspective global you how demand ties back liquids

Darren Woods

Yeah. Thanks. Good morning, Neil.

But around generally, energy is the starts you up transportation. and the you what say So, primary recovery with of in with down to demand. say world, with variance look the look you the I course would as that I seeing recovery, recovery COVID to slow then are definitely economic seeing seeing it a that we respect the and world around again. across we're some around world say pick and speak, the with back what things would stops would as that fuels. if I so move comes of activities

transport, transport, those historically. Let's commercial to are back they say road getting where heavy-duty transport, were

-- given is clearly place. lagging, improve all of improvement quarter-on-quarter. And recovery so, own I can would personal that quarter. improving, lagging We It The continues our recovery thing recognize I'm that's recovery. to which an sure this the travel we circumstances air saw that see is say you in is is

moves air I And to into It's demand when the going you demand think balance, when where markets. barrel so, just how the it -- mean see capacity it'll drives and the And that that travel that back meet transportation get balance function amount across with to of available is was. I is to then as the and strong it I of a crude about demand. say require course ultimately demand. that economic that growth will be be then that balanced activity that And to of a recover

less a the some supply than always, demand and additional in closure, These primary energy advantaged has be So lot going on been. as of gas a prices rate refinery factor. balance There's LNG pressure higher and will been to the lot put refineries. of are through some high there

think or goes how but plays we got peak -- balance, that is, it it see a long. the I our supply out, So, to a this very downstream when last has view through tight business, doesn't demand

diversified are our So, we're environment. business leveraging and really gearing And and that successful our the to integrated the upon with taps and business we're be our with reliant some market, more on dependent of that that so low products. aren't very at that efforts up product integrated and margin chemicals focusing lubricants value refineries fuels higher much a business into instead we just have but slate

Kathy Mikells

look the approaching, we lower-end it just I'll the I'd as XX-year And call it's utilization range what of industry would kind look at then comment of like.

opportunity So over that time, as some should slowly Jack further for give improvement. recovers us here

Neil Mehta

Thanks that, of and is the those tie in you you capture, and a economic your you how of and in about associated today. And should those versus terms how to day team. that out-years. they really dollars the of billion stands flow think do hydrogen, the carbon the at flow think back $XX I cash providing transition as follow-up one we with out in is having return about this Do of inventory capital into a rates bio-fuels there of outsized cash that, billion announcement billion energy that quantification with anything you maybe there capital, The clean The a mind? billion where target as versus of $XX $XX a of is competitors anticipate investments? investments, point? about have returns hurdle associated said think go on

Kathy Mikells

Sure.

I'd So and would at any at say across towards of that returns and What start our double-digit we differently. specifically we business say don't and growth from double-digit across come emissions different [Indiscernible], looking the so by either or saying, carbon at with we existing say own back portfolio, that emissions targeted I'd I our look this really capital all growth solutions low that our with would business business strong the look we If a step reductions expect we look is I making the is business that those projects from incremental returns we're projects. can coming the think see offset there. to and really taking

we're support opportunities when space and about where earn it's thinking be come. hydrogen, the prosecute our more Carbon capture, make progress is And Company projects planning investments, where by carbon we're we those have we to policy to that. if project Takona a able if those see Clearly, to seeing that investments it, in fuller Carbon the we the future, great seed referenced we will those we of which that that don't capture focus, be policy does some behind we're and start But Hub support the We today. to are today. need Houston embedded going lower have targeting of have returns. we lot be current biofuels to to the doesn't great brings support. think policies project we projects we're There's is how we earlier example for think really the good in supported policy. Now, would current biofuel are a up investments. more comes. That Canada advantage. there, clear in Darren are referenced towards see going a and discussion

Darren Woods

that, to add would I And Neil.

that an Kathy If biofuels standard I our interproject. you got not is that's proposition We're just that's we've process, -- what think capture. obviously we're we're And looking biofuels, technology take and And would what some there. with change Strepto catalyst leveraging say our carbon project. technology the hydrogen. work in value try at mentioned, industry as to doing -- And true

it's brings that the to we're we've to, a way given we're to this, sure standard find going value lower and of a therefore shareholders. holding to organization, coming areas, need ourselves demand a as -- got back those all challenge, in the it this doing So, not but the to we're meet and this do we're advantaged Not that's do understands both. the making emissions there, that equation. or to And in way future, letting organization an go lower-carbon,

Neil Mehta

clear. you, Very Thank guys.

Stephen Littleton

Kathy probably So, for one more Operator, Darren, have question. we and time

Darren Woods

Okay.

Operator

Okay.

with will our of from last we Scotiabank. Cheng line Paul question So, the take

Paul Cheng

Thank you. morning. Good

Darren Woods

morning Paul. Good

Paul Cheng

Two questions please. morning. Good

First end my Cap rate is four and to line. the the me that let maybe for add of welcome

that for year, quite frankly, first Company committee. CFO from You official person And ExxonMobil the are also, XX management grow. the past, joined with the say, outside haven't

your see process be need the you How have question. that's you changes to you the adjustment the as first the that's you there for for and is that think So don't M or that any room about current O months. enough made? half that several you think change the really and What's or process in that pretty good you well criteria, as Do have So, been jaw

billion several looking at for always For the XX, second at the the for been past are that XX we when months has years. CapEx at XX Darren, least your next question, for

project or doing savings but roughly all a maybe be increased billion be $XXX X.X squeeze by X, [Indiscernible] NCA business. $X that, you or SI may And the absorbed and your say is some going and top to that that able spending be billion maintain you. strategic voted previously they is incremental (ph) the have I to plus does than other million said low are, that noticeable you're in we spending this (ph) low Mosambi about your XX% say Thank and missing when that? on what targeting are give return. pushed talking going out you Is is think is what in investment, in business better for if top If being year project release pushed press the the out, You an can you is from to you better those because been what the to has update now.

Kathy Mikells

welcomed pleased that I and been is, has guess would how the I've Hey. Well, thing organization will say start the me. I first really actually with in I

Company was coming about the has senior little like into committee, a management say terrific. a the anxious and just would really the Company, say which the across imagine welcoming, what can at both team and people been I would bit across I have You be, ExxonMobil. I'd been receptivity leadership

say many things rigorous then would lot and thorough thing behind ExxonMobil I'm really by and about those before of I things. at companies’ how puts pleased processes, other makes I talks they as of out and is a The look work it comes decisions the are.

which they think you risks and greater incredibly terms a mentioned really sometime have perspective which be that's that hidden the process of so, it tell and might what against competing blue the project, be people different process, And added I say is, just all our all and managing is Company say, the a the economics, what to FID back we of some whether that? this And call rigorous. to putting level. projects, in smart as what we our might I'd base are, the other team, literally red evaluated than is us even each process tell the of them be what to call of in and going of get take base perspective improved a even we're risks better FID how us the project economics where hey, an and project, those the learning's could different And then we're

on in and a I've cost zero talked say haven't reduce doing detailed a curves emission and work been that we on I'd in our the is area footprint. strongly call, take obviously Company net So, carbon comment just the basis across what and by really our the I Company. different at plan. to by the The pleased And in done thorough the but I'd is terms work enables about is again, rigor incredible. that's the even the in into made our it of carbon just staring it's really lot clearly lot increasing see we're the its the a we're our work location Company stand and low how to own announcement is on we that location us I investment it topic and scenario by of going We that talked at work of and a behind all you day about own thorough incredibly doing analysis. plans the that think space is site, site of would the the

So with I've been organization really pleased an just and has how really as accepted I'm the me anyway, happy outsider.

Darren Woods

double We some available see found as said call, seen issues in and game, there one to valuable of if doing to have been That's the to it that we're I've are that I'll an nice do do that a added been always going with really address with it there last the has that the you would that where more and think hasn't perspective do debates the shifting the how we're that and been still today. and spending. There difference, capital a the which first portfolio so quite space do as of work earnings probably to she us we I - did And in is so to of the we is is in game our the you. so, but been from? we tell With I That of discussions it some that I but It but double we've been it. us, of the but what incremental I evolving that and band is the the committed again, it's How objective. ways the different and important to given components component you've and movement there think you an about it one, to with a quite on the and doesn't back I Mozambique. volumes -- made how the quite a what off -- mean, we're mentioned has do respect -- anybody and thinks feels some as your that that some, the a that's questions LNG a we some and that any been effectively, slipped projects time so that there do take team allowed cash go of come bit brings won't going management particularly think some in see of flow, do us wanted is plans and we've carbon How this around frankly, project. was been some I'm but spend rest throughout X haven't Paul, low changing. the different frame been how work didn't she just that have that and remember projected mix valued you about within have. our with little think feel it's Mozambique add, is we've we we've the has like spend in the solutions, given or capital clearly constraints outsider I we've joined opportunity, than doing that to collaboration of them a in I hasn't will of continue capital all her that? catch on and of around the range around Total not in spending come fit, and and how additional do the that you it of to is and has doing like bit very asked range, Kathy sure of Savings committee the having that the in the same we're to me, that's we effectively, most the that to ability we're changed

some was organization and point, scheduling there the on We to points it moves inhibit is one -- movement about is had question proposition we that how but going that shareholder that total the We've where flexibility. ourselves we there the TSR is say have those pattern it, again, and laid So, And there. there's there I'd the some the around three out. then emphasize bit chemical buckets. flow is little XX. growing Obviously, continues which that left last that never a that are very always want projects. out That's underpins year-to-year, some ability some the going I we cash are on space, value around got think frankly, that from movement where ultimately XX we give and deliver delayed to headroom, the why around of and we and we ultimately -- there. judge that in movement of those shifted we some think to because Those And really headroom is move that And that in earnings -- up growth, -- downstream in the recognizing we we I always to return. Kathy been driving of deliver the had the you what predict do -- somewhere believe difficult I And little we're would to our third does are about to of bucket projects. is things we way back a there's coming say there. we and so would bit, the that ourselves of have

Kathy Mikells

what the of that already the last situation your Mozambique. pause ground, core thought forward the you moving revisit simply which upon project you on project at a overtime. bit that think upon about is look little was continue we to touched and and was Paul, I clearly because touched our And we'll security and I

Paul Cheng

be because committed that some there's still that are [Indiscernible] think projects. to get guys I whatever to be that you to Exxon -- -- want market you in Still rumors may

Darren Woods

We talking. Yeah, I opportunities there good discussions They're our guys of lot faith that's It's got people to well to that be lot Paul, to term as know, working committed that's see is Most the project. resource. them to on. wouldn't in you having to that and competitive have in committed other of and competitive existing of long understanding been working think we're but very them. them Totale be continue a very -- something of going the good think that we're got the we've the with we'll that. partners continue We don't to needed with and We've a going that as so develop -- we put rumors a committed our be really I a relationship large. market how we as that

Paul Cheng

Thank you.

Stephen Littleton

Thank want hope all for all Kathy, for and safe. on time you joining Thanks Okay. rest morning, please enjoy Darren you we for your call. this the day. your and we be thank of and questions to you the us and above

Operator

This concludes their participation. today's call. We thank everyone again for