UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~March 31,~~June 30, 2021

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF

THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from __________to__________

Commission File Number 1-2256

Exxon Mobil Corporation

(Exact name of registrant as specified in its charter)


New Jersey						13-5409005
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification Number)

5959 Las Colinas Boulevard, Irving, Texas 75039-2298

(Address of principal executive offices) (Zip Code)

(972) 940-6000

(Registrant's telephone number, including area code)

_______________________

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of Each Exchange
on Which Registered

Common Stock, without par value

XOM

New York Stock Exchange

0.142% Notes due 2024

XOM24B

New York Stock Exchange

0.524% Notes due 2028

XOM28

New York Stock Exchange

0.835% Notes due 2032

XOM32

New York Stock Exchange

1.408% Notes due 2039

XOM39A

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☑ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files). Yes ☑ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and “emerging growth company” in Rule 12b-2 of the Exchange Act.


Large accelerated filer	☑	Accelerated filer	☐

Non-accelerated filer	☐	Smaller reporting company	☐

		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☑

Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date.


Class						Outstanding as of ~~March 31,~~June 30, 2021
Common stock, without par value						~~4,233,538,917~~4,233,562,917

EXXON MOBIL CORPORATION

FORM 10-Q

FOR THE QUARTERLY PERIOD ENDED ~~MARCH 31,~~JUNE 30, 2021

TABLE OF CONTENTS


PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

Condensed Consolidated Statement of Income Three and six months ended ~~March 31,~~June 30, 2021 and 2020			3

Condensed Consolidated Statement of Comprehensive Income Three and six months ended ~~March 31,~~June 30, 2021 and 2020			4

Condensed Consolidated Balance Sheet As of ~~March 31,~~June 30, 2021 and December 31, 2020			5

Condensed Consolidated Statement of Cash Flows ~~Three~~Six months ended ~~March 31,~~June 30, 2021 and 2020			6

Condensed Consolidated Statement of Changes in Equity Three months ended ~~March 31,~~June 30, 2021 and 2020			7



Condensed Consolidated Statement of Changes in Equity Six months ended June 30, 2021 and 2020			8

Notes to Condensed Consolidated Financial Statements			89

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations			1719

Item 3. Quantitative and Qualitative Disclosures About Market Risk			2428

Item 4. Controls and Procedures			2428


PART II. OTHER INFORMATION

Item 1. Legal Proceedings			2529



Item 2. Unregistered Sales of Equity Securities and Use of Proceeds			2529

Item 6. Exhibits			2529

Index to Exhibits			2630

Signature			2731

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF INCOME	CONDENSED CONSOLIDATED STATEMENT OF INCOME			CONDENSED CONSOLIDATED STATEMENT OF INCOME
(millions of dollars)	(millions of dollars)			(millions of dollars)
		Three Months Ended March 31,			Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020				2021	2020	2021	2020
Revenues and other income	Revenues and other income					Revenues and other income
Sales and other operating revenue	Sales and other operating revenue	57,552	55,134			Sales and other operating revenue	65,943	32,277	123,495	87,411
Income from equity affiliates	Income from equity affiliates	1,473	775			Income from equity affiliates	1,436	103	2,909	878
Other income	Other income	122	249			Other income	363	225	485	474
Total revenues and other income	Total revenues and other income	59,147	56,158			Total revenues and other income	67,742	32,605	126,889	88,763
Costs and other deductions	Costs and other deductions					Costs and other deductions
Crude oil and product purchases	Crude oil and product purchases	32,601	32,083			Crude oil and product purchases	37,329	14,069	69,930	46,152
Production and manufacturing expenses	Production and manufacturing expenses	8,062	8,297			Production and manufacturing expenses	8,471	6,895	16,533	15,192
Selling, general and administrative expenses	Selling, general and administrative expenses	2,428	2,579			Selling, general and administrative expenses	2,345	2,409	4,773	4,988
Depreciation and depletion	Depreciation and depletion	5,004	5,819			Depreciation and depletion	4,952	4,916	9,956	10,735
Exploration expenses, including dry holes	Exploration expenses, including dry holes	164	288			Exploration expenses, including dry holes	176	214	340	502
Non-service pension and postretirement benefit expense	Non-service pension and postretirement benefit expense	378	269			Non-service pension and postretirement benefit expense	162	271	540	540
Interest expense	Interest expense	258	249			Interest expense	254	317	512	566
Other taxes and duties	Other taxes and duties	6,660	6,832			Other taxes and duties	7,746	5,154	14,406	11,986
Total costs and other deductions	Total costs and other deductions	55,555	56,416			Total costs and other deductions	61,435	34,245	116,990	90,661
Income (Loss) before income taxes	Income (Loss) before income taxes	3,592	(258)			Income (Loss) before income taxes	6,307	(1,640)	9,899	(1,898)
Income taxes	Income taxes	796	512			Income taxes	1,526	(471)	2,322	41
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	2,796	(770)			Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Net income (loss) attributable to noncontrolling interests	Net income (loss) attributable to noncontrolling interests	66	(160)			Net income (loss) attributable to noncontrolling interests	91	(89)	157	(249)
Net income (loss) attributable to ExxonMobil	Net income (loss) attributable to ExxonMobil	2,730	(610)			Net income (loss) attributable to ExxonMobil	4,690	(1,080)	7,420	(1,690)

Earnings (Loss) per common share (dollars)	Earnings (Loss) per common share (dollars)	0.64	(0.14)			Earnings (Loss) per common share (dollars)	1.10	(0.26)	1.74	(0.40)

Earnings (Loss) per common share - assuming dilution (dollars)	Earnings (Loss) per common share - assuming dilution (dollars)	0.64	(0.14)			Earnings (Loss) per common share - assuming dilution (dollars)	1.10	(0.26)	1.74	(0.40)

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME	CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME			CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
(millions of dollars)	(millions of dollars)			(millions of dollars)

		Three Months Ended March 31,			Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020				2021	2020	2021	2020
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	2,796	(770)			Net income (loss) including noncontrolling interests	4,781	(1,169)	7,577	(1,939)
Other comprehensive income (loss) (net of income taxes)	Other comprehensive income (loss) (net of income taxes)					Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	149	(5,649)			Foreign exchange translation adjustment	423	2,875	572	(2,774)

Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	168	87			Postretirement benefits reserves adjustment (excluding amortization)	(47)	(136)	121	(49)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	378	204			Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	215	203	593	407
Total other comprehensive income (loss)	Total other comprehensive income (loss)	695	(5,358)			Total other comprehensive income (loss)	591	2,942	1,286	(2,416)
Comprehensive income (loss) including noncontrolling interests	Comprehensive income (loss) including noncontrolling interests	3,491	(6,128)			Comprehensive income (loss) including noncontrolling interests	5,372	1,773	8,863	(4,355)
Comprehensive income (loss) attributable to noncontrolling interests	Comprehensive income (loss) attributable to noncontrolling interests	146	(672)			Comprehensive income (loss) attributable to noncontrolling interests	178	131	324	(541)
Comprehensive income (loss) attributable to ExxonMobil	Comprehensive income (loss) attributable to ExxonMobil	3,345	(5,456)			Comprehensive income (loss) attributable to ExxonMobil	5,194	1,642	8,539	(3,814)

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEET	CONDENSED CONSOLIDATED BALANCE SHEET			CONDENSED CONSOLIDATED BALANCE SHEET
(millions of dollars)	(millions of dollars)			(millions of dollars)
		March 31, 2021	December 31, 2020		June 30, 2021	December 31, 2020
Assets	Assets			Assets
Current assets	Current assets			Current assets
Cash and cash equivalents	Cash and cash equivalents	3,515	4,364	Cash and cash equivalents	3,465	4,364
Notes and accounts receivable – net	Notes and accounts receivable – net	24,755	20,581	Notes and accounts receivable – net	28,540	20,581
Inventories	Inventories			Inventories
Crude oil, products and merchandise	Crude oil, products and merchandise	13,740	14,169	Crude oil, products and merchandise	14,711	14,169
Materials and supplies	Materials and supplies	4,617	4,681	Materials and supplies	4,564	4,681
Other current assets	Other current assets	1,568	1,098	Other current assets	1,562	1,098
Total current assets	Total current assets	48,195	44,893	Total current assets	52,842	44,893
Investments, advances and long-term receivables	Investments, advances and long-term receivables	44,181	43,515	Investments, advances and long-term receivables	44,774	43,515
Property, plant and equipment – net	Property, plant and equipment – net	224,641	227,553	Property, plant and equipment – net	223,012	227,553
Other assets, including intangibles – net	Other assets, including intangibles – net	16,753	16,789	Other assets, including intangibles – net	16,661	16,789
Total assets	Total assets	333,770	332,750	Total assets	337,289	332,750

Liabilities	Liabilities			Liabilities
Current liabilities	Current liabilities			Current liabilities
Notes and loans payable	Notes and loans payable	18,185	20,458	Notes and loans payable	15,293	20,458
Accounts payable and accrued liabilities	Accounts payable and accrued liabilities	41,017	35,221	Accounts payable and accrued liabilities	45,780	35,221
Income taxes payable	Income taxes payable	948	684	Income taxes payable	1,165	684
Total current liabilities	Total current liabilities	60,150	56,363	Total current liabilities	62,238	56,363
Long-term debt	Long-term debt	45,137	47,182	Long-term debt	45,319	47,182
Postretirement benefits reserves	Postretirement benefits reserves	21,835	22,415	Postretirement benefits reserves	22,082	22,415
Deferred income tax liabilities	Deferred income tax liabilities	18,113	18,165	Deferred income tax liabilities	18,511	18,165
Long-term obligations to equity companies	Long-term obligations to equity companies	3,279	3,253	Long-term obligations to equity companies	3,038	3,253
Other long-term obligations	Other long-term obligations	21,155	21,242	Other long-term obligations	20,545	21,242
Total liabilities	Total liabilities	169,669	168,620	Total liabilities	171,733	168,620

Commitments and contingencies (Note 3)	Commitments and contingencies (Note 3)	0	0	Commitments and contingencies (Note 3)	0	0

Equity	Equity			Equity
Common stock without par value	Common stock without par value			Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)	(9,000 million shares authorized, 8,019 million shares issued)	15,884	15,688	(9,000 million shares authorized, 8,019 million shares issued)	16,006	15,688
Earnings reinvested	Earnings reinvested	382,953	383,943	Earnings reinvested	383,922	383,943
Accumulated other comprehensive income	Accumulated other comprehensive income	(16,090)	(16,705)	Accumulated other comprehensive income	(15,586)	(16,705)
Common stock held in treasury	Common stock held in treasury			Common stock held in treasury
(3,785 million shares at March 31, 2021 and 3,786 million shares at December 31, 2020)		(225,773)	(225,776)
(3,785 million shares at June 30, 2021 and 3,786 million shares at December 31, 2020)				(3,785 million shares at June 30, 2021 and 3,786 million shares at December 31, 2020)	(225,771)	(225,776)
ExxonMobil share of equity	ExxonMobil share of equity	156,974	157,150	ExxonMobil share of equity	158,571	157,150
Noncontrolling interests	Noncontrolling interests	7,127	6,980	Noncontrolling interests	6,985	6,980
Total equity	Total equity	164,101	164,130	Total equity	165,556	164,130
Total liabilities and equity	Total liabilities and equity	333,770	332,750	Total liabilities and equity	337,289	332,750

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION			EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS	CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS			CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(millions of dollars)	(millions of dollars)			(millions of dollars)
		Three Months Ended March 31,			Six Months Ended June 30,
		2021	2020		2021	2020
Cash flows from operating activities	Cash flows from operating activities			Cash flows from operating activities
Net income (loss) including noncontrolling interests	Net income (loss) including noncontrolling interests	2,796	(770)	Net income (loss) including noncontrolling interests	7,577	(1,939)
Depreciation and depletion	Depreciation and depletion	5,004	5,819	Depreciation and depletion	9,956	10,735
Noncash inventory adjustment - lower of cost or market		0	2,245

Changes in operational working capital, excluding cash and debt	Changes in operational working capital, excluding cash and debt	1,953	(942)	Changes in operational working capital, excluding cash and debt	1,573	(2,247)
All other items – net	All other items – net	(489)	(78)	All other items – net	(192)	(275)
Net cash provided by operating activities	Net cash provided by operating activities	9,264	6,274	Net cash provided by operating activities	18,914	6,274

Cash flows from investing activities	Cash flows from investing activities			Cash flows from investing activities
Additions to property, plant and equipment	Additions to property, plant and equipment	(2,400)	(5,945)	Additions to property, plant and equipment	(5,147)	(10,362)
Proceeds from asset sales and returns of investments	Proceeds from asset sales and returns of investments	307	86	Proceeds from asset sales and returns of investments	557	129
Additional investments and advances	Additional investments and advances	(349)	(728)	Additional investments and advances	(613)	(1,524)
Other investing activities including collection of advances	Other investing activities including collection of advances	87	220	Other investing activities including collection of advances	132	309
Net cash used in investing activities	Net cash used in investing activities	(2,355)	(6,367)	Net cash used in investing activities	(5,071)	(11,448)

Cash flows from financing activities	Cash flows from financing activities			Cash flows from financing activities
Additions to long-term debt	Additions to long-term debt	0	8,466	Additions to long-term debt	0	23,186
Reductions in long-term debt	Reductions in long-term debt	0	(2)	Reductions in long-term debt	0	(3)
Additions to short-term debt (1)	Additions to short-term debt (1)	5,781	13,128	Additions to short-term debt (1)	9,662	20,491
Reductions in short-term debt (1)	Reductions in short-term debt (1)	(10,849)	(6,500)	Reductions in short-term debt (1)	(18,000)	(15,078)
Additions/(reductions) in commercial paper and debt with three months or less maturity		1,003	(2,332)

Additions/(reductions) in debt with three months or less maturity				Additions/(reductions) in debt with three months or less maturity	1,320	(5,998)
Contingent consideration payments				Contingent consideration payments	(28)	(21)
Cash dividends to ExxonMobil shareholders	Cash dividends to ExxonMobil shareholders	(3,720)	(3,719)	Cash dividends to ExxonMobil shareholders	(7,441)	(7,434)
Cash dividends to noncontrolling interests	Cash dividends to noncontrolling interests	(52)	(45)	Cash dividends to noncontrolling interests	(112)	(93)
Changes in noncontrolling interests	Changes in noncontrolling interests	53	94	Changes in noncontrolling interests	(207)	317
Common stock acquired	Common stock acquired	(1)	(305)	Common stock acquired	(1)	(305)
Net cash used in financing activities	Net cash used in financing activities	(7,785)	8,785	Net cash used in financing activities	(14,807)	15,062
Effects of exchange rate changes on cash	Effects of exchange rate changes on cash	27	(369)	Effects of exchange rate changes on cash	65	(401)
Increase/(decrease) in cash and cash equivalents	Increase/(decrease) in cash and cash equivalents	(849)	8,323	Increase/(decrease) in cash and cash equivalents	(899)	9,487
Cash and cash equivalents at beginning of period	Cash and cash equivalents at beginning of period	4,364	3,089	Cash and cash equivalents at beginning of period	4,364	3,089
Cash and cash equivalents at end of period	Cash and cash equivalents at end of period	3,515	11,412	Cash and cash equivalents at end of period	3,465	12,576

Supplemental Disclosures	Supplemental Disclosures			Supplemental Disclosures
Income taxes paid	Income taxes paid	855	1,372	Income taxes paid	2,079	1,768
Cash interest paid	Cash interest paid			Cash interest paid
Included in cash flows from operating activities	Included in cash flows from operating activities	405	313	Included in cash flows from operating activities	466	290
Capitalized, included in cash flows from investing activities	Capitalized, included in cash flows from investing activities	151	155	Capitalized, included in cash flows from investing activities	313	335
Total cash interest paid	Total cash interest paid	556	468	Total cash interest paid	779	625

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

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


EXXON MOBIL CORPORATION	EXXON MOBIL CORPORATION								EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY	CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY								CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)	(millions of dollars)								(millions of dollars)
		ExxonMobil Share of Equity								ExxonMobil Share of Equity
		Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity		Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of December 31, 2019		15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938
Balance as of March 31, 2020									Balance as of March 31, 2020	15,636	416,919	(24,339)	(226,137)	182,079	6,664	188,743
Amortization of stock-based awards	Amortization of stock-based awards	181	—	—	—	181	—	181	Amortization of stock-based awards	177	—	—	—	177	—	177
Other	Other	(182)	—	—	—	(182)	157	(25)	Other	(1)	—	—	—	(1)	223	222
Net income (loss) for the period	Net income (loss) for the period	—	(610)	—	—	(610)	(160)	(770)	Net income (loss) for the period	—	(1,080)	—	—	(1,080)	(89)	(1,169)
Dividends - common shares	Dividends - common shares	—	(3,719)	—	—	(3,719)	(45)	(3,764)	Dividends - common shares	—	(3,715)	—	—	(3,715)	(48)	(3,763)
Cumulative effect of accounting change		—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)	Other comprehensive income (loss)	—	—	(4,846)	—	(4,846)	(512)	(5,358)	Other comprehensive income (loss)	—	—	2,722	—	2,722	220	2,942
Acquisitions, at cost		—	—	—	(305)	(305)	(63)	(368)

Dispositions	Dispositions	—	—	—	3	3	—	3	Dispositions	—	—	—	1	1	—	1
Balance as of March 31, 2020		15,636	416,919	(24,339)	(226,137)	182,079	6,664	188,743
Balance as of June 30, 2020									Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153

Balance as of December 31, 2020		15,688	383,943	(16,705)	(225,776)	157,150	6,980	164,130
Balance as of March 31, 2021									Balance as of March 31, 2021	15,884	382,953	(16,090)	(225,773)	156,974	7,127	164,101
Amortization of stock-based awards	Amortization of stock-based awards	202	—	—	—	202	—	202	Amortization of stock-based awards	126	—	—	—	126	—	126
Other	Other	(6)	—	—	—	(6)	53	47	Other	(4)	—	—	—	(4)	33	29
Net income (loss) for the period	Net income (loss) for the period	—	2,730	—	—	2,730	66	2,796	Net income (loss) for the period	—	4,690	—	—	4,690	91	4,781
Dividends - common shares	Dividends - common shares	—	(3,720)	—	—	(3,720)	(52)	(3,772)	Dividends - common shares	—	(3,721)	—	—	(3,721)	(60)	(3,781)

Other comprehensive income (loss)	Other comprehensive income (loss)	—	—	615	—	615	80	695	Other comprehensive income (loss)	—	—	504	—	504	87	591
Acquisitions, at cost	Acquisitions, at cost	—	—	—	(1)	(1)	0	(1)	Acquisitions, at cost	—	—	—	—	—	(293)	(293)
Dispositions	Dispositions	—	—	—	4	4	—	4	Dispositions	—	—	—	2	2	—	2
Balance as of March 31, 2021		15,884	382,953	(16,090)	(225,773)	156,974	7,127	164,101
Balance as of June 30, 2021									Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556


		Three Months Ended March 31, 2021			Three Months Ended March 31, 2020				Three Months Ended June 30, 2021			Three Months Ended June 30, 2020
Common Stock Share Activity	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding	Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
		(millions of shares)			(millions of shares)				(millions of shares)			(millions of shares)
Balance as of December 31		8,019	(3,786)	4,233	8,019	(3,785)	4,234
Balance as of March 31								Balance as of March 31	8,019	(3,785)	4,234	8,019	(3,791)	4,228
Acquisitions	Acquisitions	—	—	—	—	(6)	(6)	Acquisitions	—	—	—	—	—	—
Dispositions	Dispositions	—	1	1	—	—	—	Dispositions	—	—	—	—	—	—
Balance as of March 31		8,019	(3,785)	4,234	8,019	(3,791)	4,228
Balance as of June 30								Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

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


EXXON MOBIL CORPORATION
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
(millions of dollars)
	ExxonMobil Share of Equity
	Common Stock	Earnings Reinvested	Accumulated Other Comprehensive Income	Common Stock Held in Treasury	ExxonMobil Share of Equity	Non-controlling Interests	Total Equity
Balance as of December 31, 2019	15,637	421,341	(19,493)	(225,835)	191,650	7,288	198,938
Amortization of stock-based awards	358	—	—	—	358	—	358
Other	(183)	—	—	—	(183)	380	197
Net income (loss) for the period	—	(1,690)	—	—	(1,690)	(249)	(1,939)
Dividends - common shares	—	(7,434)	—	—	(7,434)	(93)	(7,527)
Cumulative effect of accounting change	—	(93)	—	—	(93)	(1)	(94)
Other comprehensive income (loss)	—	—	(2,124)	—	(2,124)	(292)	(2,416)
Acquisitions, at cost	—	—	—	(305)	(305)	(63)	(368)
Dispositions	—	—	—	4	4	—	4
Balance as of June 30, 2020	15,812	412,124	(21,617)	(226,136)	180,183	6,970	187,153

Balance as of December 31, 2020	15,688	383,943	(16,705)	(225,776)	157,150	6,980	164,130
Amortization of stock-based awards	328	—	—	—	328	—	328
Other	(10)	—	—	—	(10)	86	76
Net income (loss) for the period	—	7,420	—	—	7,420	157	7,577
Dividends - common shares	—	(7,441)	—	—	(7,441)	(112)	(7,553)

Other comprehensive income (loss)	—	—	1,119	—	1,119	167	1,286
Acquisitions, at cost	—	—	—	(1)	(1)	(293)	(294)
Dispositions	—	—	—	6	6	—	6
Balance as of June 30, 2021	16,006	383,922	(15,586)	(225,771)	158,571	6,985	165,556


	Six Months Ended June 30, 2021			Six Months Ended June 30, 2020
Common Stock Share Activity	Issued	Held in Treasury	Outstanding	Issued	Held in Treasury	Outstanding
	(millions of shares)			(millions of shares)
Balance as of December 31	8,019	(3,786)	4,233	8,019	(3,785)	4,234
Acquisitions	—	—	—	—	(6)	(6)
Dispositions	—	1	1	—	—	—
Balance as of June 30	8,019	(3,785)	4,234	8,019	(3,791)	4,228

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

EXXON MOBIL CORPORATION

NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1. Basis of Financial Statement Preparation

These unaudited condensed consolidated financial statements should be read in the context of the consolidated financial statements and notes thereto filed with the Securities and Exchange Commission in the Corporation's 2020 Annual Report on Form 10-K. In the opinion of the Corporation, the information furnished herein reflects all known accruals and adjustments necessary for a fair statement of the results for the periods reported herein. All such adjustments are of a normal recurring nature. Prior data has been reclassified in certain cases to conform to the current presentation basis.

The Corporation's exploration and production activities are accounted for under the "successful efforts" method.

2. Miscellaneous Financial Information

Crude oil, products and merchandise inventories are carried at the lower of current market value or cost, generally determined under the last-in first-out method (LIFO). The Corporation's results for the ~~first~~second quarter of 2020 included a before-tax credit of $2,624 million, as rising prices reduced the charge against the book value of inventories from $2,777 million in the first quarter 2020 to $153 million for the first half of 2020. This adjustment, which is included in "Crude oil and product purchases" ~~on the Statement of Income, from writing down the book value of inventories to their market value at the end of the period. This adjustment,~~, together with a market adjustment to inventory for equity companies included in "Income from equity ~~affiliates,"~~affiliates", resulted in a ~~$2,096~~$1,922 million after-tax ~~charge~~credit to earnings (excluding noncontrolling interests) in the ~~first~~second quarter of 2020. ~~These charges were adjusted throughout 2020 to reflect the current market price of the inventory at the end of each reporting period.~~

In the first ~~quarter~~half of 2020, mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in the Corporation's market capitalization at the end of the first quarter, before-tax goodwill impairment charges of $611 million and other impairment charges of ~~$299~~$363 million were recognized. The charges related to goodwill ~~impairment~~impairments were included in “Depreciation and depletion” on the Statement of Income while the charges related to other impairments were largely included in “Income from equity affiliates.”

3. Litigation and Other Contingencies

Litigation. A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and, where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters, as well as other matters which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation's operations, financial condition, or financial statements taken as a whole.

Other Contingencies. The Corporation and certain of its consolidated subsidiaries were contingently liable at ~~March 31,~~June 30, 2021, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or expenses, results of operations, liquidity, capital expenditures or capital resources.

As of March 31, 2021

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


		As of June 30, 2021
		Equity Company Obligations (1)	Other Third-Party Obligations	Total
		(millions of dollars)
Guarantees
	Debt-related	1,026	131	1,157
	Other	865	4,933	5,798
	Total	1,891	5,064	6,955

(1)ExxonMobil share

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.

The operations and earnings of the Corporation and its affiliates throughout the world have been, and may in the future be, affected from time to time in varying degree by political developments and laws and regulations, such as forced divestiture of assets; restrictions on production, imports and exports; price controls; tax increases and retroactive tax claims; expropriation of property; cancellation of contract rights and environmental regulations. Both the likelihood of such occurrences and their overall effect upon the Corporation vary greatly from country to country and are not predictable.

In accordance with a Venezuelan nationalization decree issued in February 2007, a subsidiary of the Venezuelan National Oil Company (PdVSA) assumed the operatorship of the Cerro Negro Heavy Oil Project. The decree also required conversion of the Cerro Negro Project into a “mixed enterprise” and an increase in PdVSA’s or one of its affiliate’s ownership interest in the Project. ExxonMobil refused to accede to the terms proffered by the government, and on June 27, 2007, the government expropriated ExxonMobil’s 41.67 percent interest in the Cerro Negro Project.

ExxonMobil collected awards of $908 million in an arbitration against PdVSA under the rules of the International Chamber of Commerce in respect of an indemnity related to the Cerro Negro Project and $260 million in an arbitration for compensation due for the La Ceiba Project and for export curtailments at the Cerro Negro Project under rules of International Centre for Settlement of Investment Disputes (ICSID). An ICSID arbitration award relating to the Cerro Negro Project’s expropriation ($1.4 billion) was annulled based on a determination that a prior Tribunal failed to adequately explain why the cap on damages in the indemnity owed by PdVSA did not affect or limit the amount owed for the expropriation of the Cerro Negro Project. ExxonMobil filed a new claim seeking to restore the original award of damages for the Cerro Negro Project with ICSID on September 26, 2018.

The net impact of this matter on the Corporation’s consolidated financial results cannot be reasonably estimated. Regardless, the Corporation does not expect the resolution to have a material effect upon the Corporation’s operations or financial condition.

910

An affiliate of ExxonMobil is one of the Contractors under a Production Sharing Contract (PSC) with the Nigerian National Petroleum Corporation (NNPC) covering the Erha block located in the offshore waters of Nigeria. ExxonMobil's affiliate is the operator of the block and owns a 56.25 percent interest under the PSC. The Contractors are in dispute with NNPC regarding NNPC's lifting of crude oil in excess of its entitlement under the terms of the PSC. In accordance with the terms of the PSC, the Contractors initiated arbitration in Abuja, Nigeria, under the Nigerian Arbitration and Conciliation Act. On October 24, 2011, a three-member arbitral Tribunal issued an award upholding the Contractors' position in all material respects and awarding damages to the Contractors jointly in an amount of approximately $1.8 billion plus $234 million in accrued interest. The Contractors petitioned a Nigerian federal court for enforcement of the award, and NNPC petitioned the same court to have the award set aside. On May 22, 2012, the court set aside the award. The Contractors appealed that judgment to the Court of Appeal, Abuja Judicial Division. On July 22, 2016, the Court of Appeal upheld the decision of the lower court setting aside the award. On October 21, 2016, the Contractors appealed the decision to the Supreme Court of Nigeria. In June 2013, the Contractors filed a lawsuit against NNPC in the Nigerian federal high court in order to preserve their ability to seek enforcement of the PSC in the courts if necessary. Following dismissal by this court, the Contractors appealed to the Nigerian Court of Appeal in June 2016. In October 2014, the Contractors filed suit in the United States District Court for the Southern District of New York (SDNY) to enforce, if necessary, the arbitration award against NNPC assets residing within that jurisdiction. NNPC moved to dismiss the lawsuit. On September 4, 2019, the SDNY dismissed the Contractors’ petition to recognize and enforce the Erha arbitration award. The Contractors filed a notice of appeal in the Second Circuit on October 2, 2019. At this time, the net impact of this matter on the Corporation's consolidated financial results cannot be reasonably estimated. However, regardless of the outcome of enforcement proceedings, the Corporation does not expect the proceedings to have a material effect upon the Corporation's operations or financial condition.

1011

4. Other Comprehensive Income Information


ExxonMobil Share of Accumulated Other Comprehensive Income	ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Postretirement Benefits Reserves Adjustment	Total	ExxonMobil Share of Accumulated Other Comprehensive Income	Cumulative Foreign Exchange Translation Adjustment	Postretirement Benefits Reserves Adjustment	Total
		(millions of dollars)				(millions of dollars)

Balance as of December 31, 2019	Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)	Balance as of December 31, 2019	(12,446)	(7,047)	(19,493)
Current period change excluding amounts reclassified from accumulated other comprehensive income(1)	Current period change excluding amounts reclassified from accumulated other comprehensive income(1)	(5,113)	72	(5,041)	Current period change excluding amounts reclassified from accumulated other comprehensive income(1)	(2,469)	(45)	(2,514)
Amounts reclassified from accumulated other comprehensive income	Amounts reclassified from accumulated other comprehensive income	0	195	195	Amounts reclassified from accumulated other comprehensive income	0	390	390
Total change in accumulated other comprehensive income	Total change in accumulated other comprehensive income	(5,113)	267	(4,846)	Total change in accumulated other comprehensive income	(2,469)	345	(2,124)
Balance as of March 31, 2020		(17,559)	(6,780)	(24,339)
Balance as of June 30, 2020					Balance as of June 30, 2020	(14,915)	(6,702)	(21,617)

Balance as of December 31, 2020	Balance as of December 31, 2020	(10,614)	(6,091)	(16,705)	Balance as of December 31, 2020	(10,614)	(6,091)	(16,705)
Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	88	158	246	Current period change excluding amounts reclassified from accumulated other comprehensive income (1)	425	119	544
Amounts reclassified from accumulated other comprehensive income	Amounts reclassified from accumulated other comprehensive income	0	369	369	Amounts reclassified from accumulated other comprehensive income	0	575	575
Total change in accumulated other comprehensive income	Total change in accumulated other comprehensive income	88	527	615	Total change in accumulated other comprehensive income	425	694	1,119
Balance as of March 31, 2021		(10,526)	(5,564)	(16,090)
Balance as of June 30, 2021					Balance as of June 30, 2021	(10,189)	(5,397)	(15,586)

(1)Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) ~~of $191 million,~~ net of ~~taxes.~~taxes of $135 million and $5 million in 2021 and 2020, respectively.


		Three Months Ended March 31,
Amounts Reclassified Out of Accumulated Other Comprehensive Income - Before-tax Income/(Expense)		2021	2020
Amounts Reclassified Out of Accumulated Other					Amounts Reclassified Out of Accumulated Other	Three Months Ended June 30,		Six Months Ended June 30,
Comprehensive Income - Before-tax Income/(Expense)					Comprehensive Income - Before-tax Income/(Expense)	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)

Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs				Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit expense)	(Statement of Income line: Non-service pension and postretirement benefit expense)	(484)	(262)		(Statement of Income line: Non-service pension and postretirement benefit expense)	(280)	(260)	(764)	(522)


		Three Months Ended March 31,
Income Tax (Expense)/Credit For Components of Other Comprehensive Income		2021	2020
Income Tax (Expense)/Credit For					Income Tax (Expense)/Credit For	Three Months Ended June 30,		Six Months Ended June 30,
Components of Other Comprehensive Income					Components of Other Comprehensive Income	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
Foreign exchange translation adjustment	Foreign exchange translation adjustment	(53)	7		Foreign exchange translation adjustment	19	8	(34)	15
Postretirement benefits reserves adjustment (excluding amortization)	Postretirement benefits reserves adjustment (excluding amortization)	(58)	(62)		Postretirement benefits reserves adjustment (excluding amortization)	25	52	(33)	(10)
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(106)	(58)		Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs	(65)	(57)	(171)	(115)
Total	Total	(217)	(113)		Total	(21)	3	(238)	(110)

1112

5. Earnings Per Share


		Three Months Ended March 31,		Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020			2021	2020	2021	2020
Earnings per common share	Earnings per common share				Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)	Net income (loss) attributable to ExxonMobil (millions of dollars)	2,730	(610)		Net income (loss) attributable to ExxonMobil (millions of dollars)	4,690	(1,080)	7,420	(1,690)
Weighted average number of common shares outstanding (millions of shares)	Weighted average number of common shares outstanding (millions of shares)	4,272	4,270		Weighted average number of common shares outstanding (millions of shares)	4,276	4,271	4,274	4,270
Earnings (Loss) per common share (dollars) (1)	Earnings (Loss) per common share (dollars) (1)	0.64	(0.14)		Earnings (Loss) per common share (dollars) (1)	1.10	(0.26)	1.74	(0.40)
Dividends paid per common share (dollars)	Dividends paid per common share (dollars)	0.87	0.87		Dividends paid per common share (dollars)	0.87	0.87	1.74	1.74

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

6. Pension and Other Postretirement Benefits


		Three Months Ended March 31,		Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020			2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
Components of net benefit cost	Components of net benefit cost				Components of net benefit cost
Pension Benefits - U.S.	Pension Benefits - U.S.				Pension Benefits - U.S.
Service cost	Service cost	225	235		Service cost	208	232	433	467
Interest cost	Interest cost	139	177		Interest cost	140	177	279	354
Expected return on plan assets	Expected return on plan assets	(180)	(175)		Expected return on plan assets	(181)	(175)	(361)	(350)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	55	79		Amortization of actuarial loss/(gain) and prior service cost	55	79	110	158
Net pension enhancement and curtailment/settlement cost	Net pension enhancement and curtailment/settlement cost	298	52		Net pension enhancement and curtailment/settlement cost	95	52	393	104
Net benefit cost	Net benefit cost	537	368		Net benefit cost	317	365	854	733

Pension Benefits - Non-U.S.	Pension Benefits - Non-U.S.				Pension Benefits - Non-U.S.
Service cost	Service cost	195	175		Service cost	198	171	393	346
Interest cost	Interest cost	130	161		Interest cost	135	162	265	323
Expected return on plan assets	Expected return on plan assets	(258)	(222)		Expected return on plan assets	(263)	(216)	(521)	(438)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	123	119		Amortization of actuarial loss/(gain) and prior service cost	121	115	244	234
Net pension enhancement and curtailment/settlement cost	Net pension enhancement and curtailment/settlement cost	12	0		Net pension enhancement and curtailment/settlement cost	0	0	12	0
Net benefit cost	Net benefit cost	202	233		Net benefit cost	191	232	393	465

Other Postretirement Benefits	Other Postretirement Benefits				Other Postretirement Benefits
Service cost	Service cost	49	45		Service cost	46	44	95	89
Interest cost	Interest cost	56	70		Interest cost	55	68	111	138
Expected return on plan assets	Expected return on plan assets	(5)	(4)		Expected return on plan assets	(4)	(5)	(9)	(9)
Amortization of actuarial loss/(gain) and prior service cost	Amortization of actuarial loss/(gain) and prior service cost	8	12		Amortization of actuarial loss/(gain) and prior service cost	9	14	17	26
Net benefit cost	Net benefit cost	108	123		Net benefit cost	106	121	214	244

1213

7. Financial Instruments and Derivatives

Financial Instruments. The estimated fair value of financial instruments at ~~March 31,~~June 30, 2021, and December 31, 2020, and the related hierarchy level for the fair value measurement iswas as follows:


			At March 31, 2021										At June 30, 2021
			(millions of dollars)										(millions of dollars)
			Fair Value										Fair Value
			Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value			Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets	Assets										Assets
		Derivative assets (1)	1,338	264	—	1,602	(1,332)	(62)	—	208		Derivative assets (1)	2,156	594	—	2,750	(2,357)	0	—	393
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(6)	—	3,115	6,083	9,198	—	—	(233)	8,965		from equity companies (2)(6)	—	3,167	5,727	8,894	—	—	(291)	8,603
		Other long-term										Other long-term
		financial assets (3)	1,157	—	1,046	2,203	—	—	120	2,323		financial assets (3)	1,104	—	1,303	2,407	—	—	190	2,597
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	1,389	329	—	1,718	(1,332)	(113)	—	273		Derivative liabilities (4)	2,806	759	—	3,565	(2,357)	(650)	—	558
		Long-term debt (5)	45,594	111	4	45,709	—	—	(2,236)	43,473		Long-term debt (5)	46,787	100	4	46,891	—	—	(3,376)	43,515
		Long-term obligations										Long-term obligations
		to equity companies (6)	—	—	3,567	3,567	—	—	(288)	3,279		to equity companies (6)	—	—	3,337	3,337	—	—	(299)	3,038
		Other long-term										Other long-term
		financial liabilities (7)	—	—	979	979	—	—	55	1,034		financial liabilities (7)	—	—	972	972	—	—	57	1,029


			At December 31, 2020										At December 31, 2020
			(millions of dollars)										(millions of dollars)
			Fair Value										Fair Value
			Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value			Level 1	Level 2	Level 3	Total Gross Assets & Liabilities	Effect of Counterparty Netting	Effect of Collateral Netting	Difference in Carrying Value and Fair Value	Net Carrying Value
Assets	Assets										Assets
		Derivative assets (1)	1,247	194	—	1,441	(1,282)	(6)	—	153		Derivative assets (1)	1,247	194	—	1,441	(1,282)	(6)	—	153
		Advances to/receivables										Advances to/receivables
		from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812		from equity companies (2)(6)	—	3,275	5,904	9,179	—	—	(367)	8,812
		Other long-term										Other long-term
		financial assets (3)	1,235	—	944	2,179	—	—	125	2,304		financial assets (3)	1,235	—	944	2,179	—	—	125	2,304
Liabilities	Liabilities										Liabilities
		Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213		Derivative liabilities (4)	1,443	254	—	1,697	(1,282)	(202)	—	213
		Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502		Long-term debt (5)	50,263	125	4	50,392	—	—	(4,890)	45,502
		Long-term obligations										Long-term obligations
		to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253		to equity companies (6)	—	—	3,530	3,530	—	—	(277)	3,253
		Other long-term										Other long-term
		financial liabilities (7)	—	—	964	964	—	—	44	1,008		financial liabilities (7)	—	—	964	964	—	—	44	1,008

(1)Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net

(2)Included in the Balance Sheet line: Investments, advances and long-term receivables

(3)Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net

(4)Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations

(5)Excluding finance lease obligations

(6)Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.

(7)Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

At ~~March 31,~~June 30, 2021, and December 31, 2020, respectively, the Corporation had ~~$447~~$495 million and $504 million of collateral under master netting arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.

1314

The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to foreign exchange fluctuations is reported in accumulated other comprehensive income. As of ~~March 31,~~June 30, 2021, the Corporation has designated $5.3 billion of its Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $10.7 billion and undrawn long-term committed lines of credit of $0.6 billion as of second quarter 2021.

Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue.” The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of ~~March 31,~~June 30, 2021, and December 31, 2020, or results of operations for the periods ended ~~March 31,~~June 30, 2021, and 2020.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting and monitoring of derivative activity.

The net notional long/(short) position of derivative instruments at ~~March 31,~~June 30, 2021, and December 31, 2020, was as follows:


		March 31,	December 31,		June 30,	December 31,
		2021	2020		2021	2020
		(millions)			(millions)
Crude oil (barrels)	Crude oil (barrels)	71	40	Crude oil (barrels)	30	40
Petroleum products (barrels)	Petroleum products (barrels)	(53)	(46)	Petroleum products (barrels)	(69)	(46)
Natural Gas (MMBTUs)		(532)	(500)
Natural gas (MMBTUs)				Natural gas (MMBTUs)	(461)	(500)

Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are included in the following lines on a before-tax basis:


		Three Months Ended March 31,		Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020			2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
Sales and other operating revenue	Sales and other operating revenue	(512)	1,236		Sales and other operating revenue	(1,088)	(251)	(1,600)	985
Crude oil and product purchases	Crude oil and product purchases	1	(352)		Crude oil and product purchases	(20)	(178)	(19)	(530)
Total	Total	(511)	884		Total	(1,108)	(429)	(1,619)	455

1415

8. Disclosures about Segments and Related Information


		Three Months Ended March 31,			Three Months Ended June 30,			Six Months Ended June 30,
		2021	2020				2021	2020	2021	2020
Earnings (Loss) After Income Tax	Earnings (Loss) After Income Tax	(millions of dollars)		Earnings (Loss) After Income Tax	(millions of dollars)			(millions of dollars)
Upstream	Upstream					Upstream
United States	United States	363	(704)			United States	663	(1,197)	1,026	(1,901)
Non-U.S.	Non-U.S.	2,191	1,240			Non-U.S.	2,522	(454)	4,713	786
Downstream	Downstream					Downstream
United States	United States	(113)	(101)			United States	(149)	(101)	(262)	(202)
Non-U.S.	Non-U.S.	(277)	(510)			Non-U.S.	(78)	1,077	(355)	567
Chemical	Chemical					Chemical
United States	United States	715	288			United States	1,282	171	1,997	459
Non-U.S.	Non-U.S.	700	(144)			Non-U.S.	1,038	296	1,738	152
Corporate and financing	Corporate and financing	(849)	(679)			Corporate and financing	(588)	(872)	(1,437)	(1,551)
Corporate total	Corporate total	2,730	(610)			Corporate total	4,690	(1,080)	7,420	(1,690)

Sales and Other Operating Revenue	Sales and Other Operating Revenue					Sales and Other Operating Revenue
Upstream	Upstream					Upstream
United States	United States	1,885	1,777			United States	1,726	1,081	3,611	2,858
Non-U.S.	Non-U.S.	3,094	2,567			Non-U.S.	3,792	2,022	6,886	4,589
Downstream	Downstream					Downstream
United States	United States	16,078	15,384			United States	19,040	8,203	35,118	23,587
Non-U.S.	Non-U.S.	28,613	29,304			Non-U.S.	31,899	16,302	60,512	45,606
Chemical	Chemical					Chemical
United States	United States	3,091	2,296			United States	4,007	1,570	7,098	3,866
Non-U.S.	Non-U.S.	4,887	3,800			Non-U.S.	5,474	3,090	10,361	6,890
Corporate and financing	Corporate and financing	(96)	6			Corporate and financing	5	9	(91)	15
Corporate total	Corporate total	57,552	55,134			Corporate total	65,943	32,277	123,495	87,411

Intersegment Revenue	Intersegment Revenue					Intersegment Revenue
Upstream	Upstream					Upstream
United States	United States	3,323	2,273			United States	3,827	1,378	7,150	3,651
Non-U.S.	Non-U.S.	6,817	6,387			Non-U.S.	7,747	2,852	14,564	9,239
Downstream	Downstream					Downstream
United States	United States	3,953	3,952			United States	5,438	2,056	9,391	6,008
Non-U.S.	Non-U.S.	5,381	5,124			Non-U.S.	5,505	2,752	10,886	7,876
Chemical	Chemical					Chemical
United States	United States	1,950	1,766			United States	2,488	1,220	4,438	2,986
Non-U.S.	Non-U.S.	1,231	1,263			Non-U.S.	1,342	708	2,573	1,971
Corporate and financing	Corporate and financing	57	55			Corporate and financing	52	56	109	111

1516


Geographic	Geographic				Geographic
		Three Months Ended March 31,		Three Months Ended June 30,			Six Months Ended June 30,
Sales and Other Operating Revenue	Sales and Other Operating Revenue	2021	2020		Sales and Other Operating Revenue	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
United States	United States	21,054	19,457		United States	24,773	10,854	45,827	30,311
Non-U.S.	Non-U.S.	36,498	35,677		Non-U.S.	41,170	21,423	77,668	57,100
Total	Total	57,552	55,134		Total	65,943	32,277	123,495	87,411

Significant Non-U.S. revenue sources include: (1)	Significant Non-U.S. revenue sources include: (1)				Significant Non-U.S. revenue sources include: (1)
Canada	Canada	4,258	3,823		Canada	5,282	2,148	9,541	5,971
United Kingdom					United Kingdom	3,815	1,906	6,758	5,597
Singapore	Singapore	3,435	2,616		Singapore	3,515	1,867	6,950	4,483
United Kingdom		2,943	3,691
France	France	2,782	2,589		France	3,247	1,583	6,029	4,172
Italy					Italy	2,466	1,228	4,331	3,186
Belgium	Belgium	1,989	1,889		Belgium	2,192	1,247	4,181	3,136
Italy		1,865	1,958
Australia	Australia	1,729	1,654		Australia	2,019	1,372	3,748	3,025

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

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

ExxonMobil signed an agreement in the first quarter of 2021 with HitecVision, through its wholly-owned portfolio company NEO Energy, for the sale of most of its non-operated upstream assets in the United Kingdom central and northern North Sea for more than $1 billion. The transaction is expected to close ~~near mid-year~~by year-end 2021, subject to standard conditions precedent, including regulatory and third-party approvals. The agreed sales price is subject to interim period adjustments from the effective date of January 1, 2021, to the closing date, and has an additional upside potential of approximately $0.3 billion in contingent payments, based on production ~~level~~levels and commodity prices. Estimated total cash flow from the divestment will range from $0.7 billion to $1.2 billion, of which $0.7 billion to $0.8 billion is expected in 2021 and the remainder in future years.

In the second quarter of 2021, ExxonMobil signed an agreement with Celanese for the sale of its global Santoprene business for $1.15 billion, subject to working capital and other adjustments. The sale includes 2 thermoplastic elastomers manufacturing sites in Pensacola, Florida and Newport, Wales along with associated assets. The transaction is expected to close in the fourth quarter of 2021, subject to standard conditions precedent including regulatory approvals. Estimated total cash flow from the divestment is approximately $0.9 billion.

The Corporation expects to recognize a gain at ~~closing.~~closing for each of these transactions. Estimated gain and net cash flow could change due to market factors, working capital adjustments, tax impacts, and ~~timing of close~~.

closing dates.

10. Restructuring Activities

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

During the ~~first~~second quarter of 2021, the Corporation recorded before-tax charges of ~~$39~~$10 million, consisting primarily of employee separation costs, from workforce reductions in Singapore and Europe associated with the global review of staffing levels. These costs are captured in “Selling, general and administrative expenses” on the Statement of Income.

For the first six months of the year, the recorded before-tax charges associated with the global review of staffing levels were $49 million.

For the full year, the Corporation estimates charges of ~~up to $200~~less than $100 million related to planned workforce reduction programs associated with the global review of staffing levels. This does not include charges related to employee reductions associated with any portfolio changes or other projects.

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


	Three Months Ended June 30,	Six Months Ended June 30,
	2021	2021
	(millions of dollars)	(millions of dollars)
Beginning Balance	312	403
Additions/adjustments	10	49
Payments made	(94)	(224)
Ending Balance	228	228


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

1618

EXXON MOBIL CORPORATION

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

In early 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.

~~While demand~~Demand for petroleum and petrochemical products has ~~rebounded, the lingering effects of the weak 2020 business environment~~ continued to ~~have a negative impact on~~recover through 2021 with the Corporation's second quarter 2021 financial results ~~in 2021 when compared to periods prior to the pandemic. Signs of improvement are emerging with~~benefiting from stronger prices and margins ~~across all businesses~~ when compared to the ~~fourth~~first quarter ~~2020. However,~~of 2021. The rate and pace of recovery, however, has varied across geographies and business lines, with Downstream margins ~~remain lower when~~remaining low compared to historical levels over the last decade. The Corporation continues to closely monitor industry and economic conditions amid the uneven global recovery from the COVID-19 pandemic.

FUNCTIONAL EARNINGS SUMMARY


		First Three Months		Second Quarter			First Six Months
Earnings (Loss) (U.S. GAAP)	Earnings (Loss) (U.S. GAAP)	2021	2020		Earnings (Loss) (U.S. GAAP)	2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
Upstream	Upstream				Upstream
United States	United States	363	(704)		United States	663	(1,197)	1,026	(1,901)
Non-U.S.	Non-U.S.	2,191	1,240		Non-U.S.	2,522	(454)	4,713	786
Downstream	Downstream				Downstream
United States	United States	(113)	(101)		United States	(149)	(101)	(262)	(202)
Non-U.S.	Non-U.S.	(277)	(510)		Non-U.S.	(78)	1,077	(355)	567
Chemical	Chemical				Chemical
United States	United States	715	288		United States	1,282	171	1,997	459
Non-U.S.	Non-U.S.	700	(144)		Non-U.S.	1,038	296	1,738	152
Corporate and financing	Corporate and financing	(849)	(679)		Corporate and financing	(588)	(872)	(1,437)	(1,551)
Net income (loss) attributable to ExxonMobil (U.S. GAAP)	Net income (loss) attributable to ExxonMobil (U.S. GAAP)	2,730	(610)		Net income (loss) attributable to ExxonMobil (U.S. GAAP)	4,690	(1,080)	7,420	(1,690)

Earnings (Loss) per common share (dollars)	Earnings (Loss) per common share (dollars)	0.64	(0.14)		Earnings (Loss) per common share (dollars)	1.10	(0.26)	1.74	(0.40)

Earnings (Loss) per common share - assuming dilution (dollars)	Earnings (Loss) per common share - assuming dilution (dollars)	0.64	(0.14)		Earnings (Loss) per common share - assuming dilution (dollars)	1.10	(0.26)	1.74	(0.40)

References in this discussion to Corporate earnings (loss) mean net income (loss) attributable to ExxonMobil (U.S. GAAP) from the consolidated income statement. Unless otherwise indicated, references to earnings (loss), Upstream, Downstream, Chemical and Corporate and financing segment earnings (loss), and earnings (loss) per share are ExxonMobil's share after excluding amounts attributable to noncontrolling interests.

REVIEW OF ~~FIRST~~SECOND QUARTER 2021 RESULTS

ExxonMobil’s ~~first~~second quarter 2021 earnings were ~~$2.7~~$4.7 billion, or ~~$0.64~~$1.10 per diluted share, compared with a loss of ~~$0.6~~$1.1 billion a year earlier. The increase in earnings was ~~primarily the result of the absence of prior year unfavorable non-operational impacts, including an inventory write-down and impairments;~~driven by higher Upstream ~~realizations~~realizations; higher Chemical and ~~Chemical~~Downstream margins; higher volumes; and lower expenses. These impacts were partly offset by ~~lower Downstream margins, winter storm impacts, unfavorable foreign exchange impacts,~~the absence of prior year favorable non-operational inventory adjustments and ~~lower Upstream volumes.~~higher scheduled maintenance activity.

Earnings for the first six months of 2021 were $7.4 billion, or $1.74 per diluted share, compared with a loss of $1.7 billion a year earlier.

Capital and exploration expenditures were $6.9 billion, down $5.5 billion from 2020.

Oil-equivalent production was ~~3.8~~3.7 million barrels per day, down 64 percent from the prior year. Excluding entitlement effects, divestments, and government mandates, oil-equivalent production was ~~down 2~~up 1 percent from the prior year.

The Corporation distributed ~~$3.7~~$7.4 billion in dividends to shareholders.

1720


		First Three Months		Second Quarter			First Six Months
		2021	2020			2021	2020	2021	2020
		(millions of dollars)		(millions of dollars)			(millions of dollars)
Upstream results	Upstream results				Upstream results
United States	United States	363	(704)		United States	663	(1,197)	1,026	(1,901)
Non-U.S.	Non-U.S.	2,191	1,240		Non-U.S.	2,522	(454)	4,713	786
Total	Total	2,554	536		Total	3,185	(1,651)	5,739	(1,115)

Upstream earnings were ~~$2,554~~$3,185 million in the ~~first~~second quarter of 2021, compared with ~~earnings~~a loss of ~~$536~~$1,651 million in the ~~first~~second quarter of 2020.

•Realizations increased earnings by ~~$1,310~~$4,320 million, driven by higher liquids realizations of ~~$1,390~~$4,060 million and higher gas realizations of $260 million.

•Volume and mix effects ~~reduced~~increased earnings by ~~$370~~$40 million due to ~~lower~~favorable liquids sales mix of $30 million and higher gas sales volumes of ~~$390 million partly offset by gas volume mix and timing of $20~~$10 million.

•All other items increased earnings by ~~$1,080~~$470 million, as ~~the absence of prior year unfavorable non-operational impacts associated with impairments of $360 million and an inventory write down of $260 million, and~~ lower expenses of ~~$700~~$280 million and favorable other earnings impacts of $270 million were partly offset by unfavorable foreign exchange impacts of ~~$220 million.~~

•~~The unfavorable impact of the winter storm on Upstream earnings, included in the factors above, was $240~~$80 million.

•U.S. Upstream earnings were ~~$363~~$663 million, up ~~$1,067~~$1,860 million from the prior year quarter.

•Non-U.S. Upstream earnings were ~~$2,191~~$2,522 million, up ~~$951~~$2,976 million from the prior year quarter.

•On an oil-equivalent basis, production decreased 62 percent from the ~~first~~second quarter of 2020.

•Liquids production totaled ~~2.3~~2.2 million barrels per day, down ~~222,000~~106,000 barrels per day, ~~reflecting the impacts of government mandates,~~as higher demand was more than offset by lower entitlements and ~~the winter storm.~~increased maintenance activity.

•Natural gas production was ~~9.2~~8.3 billion cubic feet per day, ~~down 223~~up 304 million cubic feet per day, reflecting the impacts of higher demand partly offset by increased maintenance activity and divestments.

Upstream earnings were $5,739 million in the first six months of 2021, compared with a loss of $1,115 million in the first six months of 2020.

•Realizations increased earnings by $5,610 million, with higher liquids realizations of $5,450 million and higher gas realizations of $160 million.

•Volume and mix effects reduced earnings by $320 million, reflecting lower liquid sales volumes of $370 million partly offset by higher gas volumes of $50 million.

•All other items increased earnings by $1,560 million, as lower expenses of $990 million and the absence of prior year unfavorable non-operational impacts of $410 million and other favorable earnings impacts of $460 million were partly offset by unfavorable foreign exchange effects of $300 million.

•U.S. Upstream earnings were $1,026 million, compared with a loss of $1,901 million in the prior year.

•Non-U.S. Upstream earnings were $4,713 million, up $3,927 million from the prior year.

•On an oil-equivalent basis, production decreased 4 percent from the first six months of 2020.

•Liquids production totaled 2.2 million barrels per day, down 164,000 barrels per day, with higher demand and project growth more than offset by lower entitlements, government mandates, decline and increased maintenance activity.

•Natural gas production was 8.7 billion cubic feet per day, up 38 million cubic feet per day, as higher ~~downtime, the winter storm, and~~demand was largely offset by increased maintenance activity, the Groningen production limit, ~~partly offset by higher demand~~ and ~~project growth.~~divestments.

1821


		First Quarter		Second Quarter	First Six Months
Upstream additional information	Upstream additional information	(thousands of barrels daily)	Upstream additional information	(thousands of barrels daily)	(thousands of barrels daily)
Volumes reconciliation (Oil-equivalent production) (1)	Volumes reconciliation (Oil-equivalent production) (1)		Volumes reconciliation (Oil-equivalent production) (1)
2020	2020	4,046	2020	3,638	3,842
Entitlements - Net Interest	Entitlements - Net Interest	(3)	Entitlements - Net Interest	4	(1)
Entitlements - Price / Spend / Other	Entitlements - Price / Spend / Other	(51)	Entitlements - Price / Spend / Other	(147)	(94)
Government Mandates	Government Mandates	(124)	Government Mandates	(6)	(65)
Divestments	Divestments	(15)	Divestments	(23)	(20)
Growth / Other	Growth / Other	(66)	Growth / Other	116	22
2021	2021	3,787	2021	3,582	3,684

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

Listed below are descriptions of ExxonMobil’s volumes reconciliation factors which are provided to facilitate understanding of the terms.

Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining factors. These factors consist of net interest changes specified in Production Sharing Contracts (PSCs) which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession. Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.

Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining factors. These factors include changes in oil and gas prices or spending levels from one period to another. According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil. For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs. These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas. Such factors can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

Government Mandates are changes to ExxonMobil's sustainable production levels due to temporary non-operational production limits imposed by governments, generally upon a sector, type or method of production.

Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a field or asset in exchange for financial or other economic consideration.

Growth and Other factors comprise all other operational and non-operational factors not covered by the above definitions that may affect volumes attributable to ExxonMobil. Such factors include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.

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


	Second Quarter		First Six Months
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Downstream results
United States	(149)	(101)	(262)	(202)
Non-U.S.	(78)	1,077	(355)	567
Total	(227)	976	(617)	365

Downstream results were a loss of ~~$390~~$227 million in the ~~first~~second quarter of 2021, ~~a $221~~down $1,203 million ~~improvement~~ from the ~~first~~second quarter of 2020.

•Margins ~~decreased~~increased earnings by ~~$1,880~~$430 million, ~~including the net unfavorable mark to market impact on unsettled derivatives and weaker~~reflecting stronger industry refining conditions.

•Volume and mix effects ~~decreased~~increased earnings by ~~$80~~$220 million.

•All other items ~~increased~~decreased earnings by ~~$2,180~~$1,860 million, asreflecting the absence of a prior year ~~unfavorable non-operational impacts associated with an~~favorable inventory ~~write-down~~adjustment of ~~$1,600~~$1,590 million, ~~and impairments of $340 million, and lower expenses of $410 million, were partly offset by~~ unfavorable foreign exchange impacts of ~~$100~~$90 million, higher expenses of $60 million, and other unfavorable earnings impacts of ~~$70 million.~~

•~~The unfavorable impact of the winter storm on Downstream earnings, included in the factors above, was $130~~$120 million.

•U.S. Downstream results were a loss of ~~$113~~$149 million, compared with a loss of $101 million in the prior year quarter.

•Non-U.S. Downstream results were a loss of ~~$277~~$78 million, ~~a $233~~down $1,155 million ~~improvement~~ from the prior year quarter.

•Petroleum product sales of ~~4.9~~5.0 million barrels per day were ~~406,000~~604,000 barrels per day ~~lower~~higher than the prior year quarter.

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

~~Chemical earnings~~Downstream results were ~~$1,415~~a loss of $617 million in the first ~~quarter~~six months of 2021, ~~up $1,271~~down $982 million from the first ~~quarter~~six months of 2020.

•~~Higher margins increased~~Margins decreased earnings by ~~$620 million.~~$1,340 million, driven by lower realized fuels margins.

•Volume and mix effects increased earnings by $30 million.

•All other items increased earnings by ~~$620~~$330 million, as lower expenses of $350 million and the absence of prior year unfavorable non-operational impacts of $350 million were partly offset by unfavorable foreign exchange and other earnings impacts of $370 million.

•U.S. Downstream results were a loss of $262 million, compared with a loss of $202 million in the prior year.

•Non-U.S. Downstream results were a loss of $355 million, down $922 million from the prior year.

•Petroleum product sales of 5.0 million barrels per day were 99,000 barrels per day higher than the prior year.


	Second Quarter		First Six Months
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Chemical results
United States	1,282	171	1,997	459
Non-U.S.	1,038	296	1,738	152
Total	2,320	467	3,735	611

Chemical earnings were $2,320 million in the second quarter of 2021, up $1,853 million from the second quarter of 2020.

•Higher margins increased earnings by $1,680 million.

•Volume and mix effects increased earnings by $210 million.

•All other items decreased earnings by $40 million, mainly due to the absence of prior year ~~unfavorable~~favorable non-operational impacts ~~associated with an inventory write-down~~ of ~~$230~~$120 million, ~~and impairments of $90 million, lower expenses of $240 million, and~~partly offset by favorable foreign exchange impacts of ~~$60 million.~~

•~~The unfavorable impact of the winter storm on Chemical~~$70 million and other favorable earnings ~~included in the factors above, was $230 million.~~impacts.

•U.S. Chemical earnings were ~~$715~~$1,282 million, up ~~$427~~$1,111 million from the prior year quarter.

•Non-U.S. Chemical earnings were ~~$700~~$1,038 million, up ~~$844~~$742 million from the prior year quarter.

•~~First~~Second quarter prime product sales of ~~6.4~~6.5 million metric tons were ~~209,000~~568,000 metric tons higher than the prior year quarter.

First Three Months
2021 2020
(millions of dollars)
Corporate and financing results (849) (679)
Chemical earnings were $3,735 million in the first six months of 2021, up $3,124 million from the first six months of 2020.

•Higher margins increased earnings by $2,300 million.

•Volume and mix effects increased earnings by $240 million.

•All other items increased earnings by $580 million, driven by lower expenses of $220 million, the absence of prior year unfavorable non-operational impacts of $210 million, favorable foreign exchange impacts of $120 million and other favorable earnings impacts of $30 million.

•U.S. Chemical earnings were $1,997 million, up $1,538 million from the prior year.

•Non-U.S. Chemical earnings were $1,738 million, up $1,586 million from the prior year.

•First six months prime product sales of 13.0 million metric tons were 777,000 metric tons higher than the prior year.


	Second Quarter		First Six Months
	2021	2020	2021	2020
	(millions of dollars)		(millions of dollars)
Corporate and financing results	(588)	(872)	(1,437)	(1,551)

Corporate and financing expenses were ~~$849~~$588 million for the second quarter of 2021, down $284 million from the second quarter of 2020, reflecting lower financing costs and net favorable tax impacts.

Corporate and financing expenses were $1,437 million for the first ~~quarter~~six months of 2021, ~~up $170~~down $114 million from ~~the first quarter of~~ 2020, reflecting lower financing costs and net favorable tax impacts, partly offset by higher ~~retirement-related~~retirement related expenses.

2024

LIQUIDITY AND CAPITAL RESOURCES


		First Three Months			Second Quarter			First Six Months
			2021	2020			2021	2020	2021	2020
		(millions of dollars)			(millions of dollars)			(millions of dollars)
Net cash provided by/(used in)	Net cash provided by/(used in)					Net cash provided by/(used in)
Operating activities	Operating activities		9,264	6,274		Operating activities			18,914	6,274
Investing activities	Investing activities		(2,355)	(6,367)		Investing activities			(5,071)	(11,448)
Financing activities	Financing activities		(7,785)	8,785		Financing activities			(14,807)	15,062
Effect of exchange rate changes	Effect of exchange rate changes		27	(369)		Effect of exchange rate changes			65	(401)
Increase/(decrease) in cash and cash equivalents	Increase/(decrease) in cash and cash equivalents		(849)	8,323		Increase/(decrease) in cash and cash equivalents			(899)	9,487

Cash and cash equivalents (at end of period)	Cash and cash equivalents (at end of period)		3,515	11,412		Cash and cash equivalents (at end of period)			3,465	12,576

Cash flow from operations and asset sales	Cash flow from operations and asset sales					Cash flow from operations and asset sales
Net cash provided by operating activities (U.S. GAAP)	Net cash provided by operating activities (U.S. GAAP)		9,264	6,274		Net cash provided by operating activities (U.S. GAAP)	9,650	—	18,914	6,274
Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments		307	86		Proceeds associated with sales of subsidiaries, property, plant & equipment, and sales and returns of investments	250	43	557	129
Cash flow from operations and asset sales	Cash flow from operations and asset sales		9,571	6,360		Cash flow from operations and asset sales	9,900	43	19,471	6,403

Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales in the ~~first~~second quarter of 2021 was ~~$9.6~~$9.9 billion,an increase of ~~$3.2~~$9.9 billion from the comparable 2020 period primarily reflecting higher ~~earnings.~~earnings and more favorable working capital impacts.

Cash provided by operating activities totaled ~~$9.3~~$18.9 billion for the first ~~three~~six months of 2021, ~~$3.0~~$12.6 billion higher than 2020. Net income including noncontrolling interests was ~~$2.8~~$7.6 billion, an increase of ~~$3.6~~$9.5 billion from the prior year period. The adjustments for the noncash provision of ~~$5.0~~$10.0 billion for depreciation and depletion was down $0.8 billion from 2020. Changes in operational working capital were a contribution of ~~$2.0~~$1.6 billion, compared to a reduction of ~~$0.9~~$2.2 billion in the prior year period. All other items net decreased cash flows by ~~$0.5~~$0.2 billion in 2021 versus a reduction of ~~$0.1~~$0.3 billion in 2020. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first ~~three~~six months of 2021 used net cash of ~~$2.4~~$5.1 billion, a decrease of ~~$4.0~~$6.4 billion compared to the prior year. Spending for additions to property, plant and equipment of ~~$2.4~~$5.1 billion was ~~$3.5~~$5.2 billion lower than 2020. Proceeds from asset sales of ~~$0.3~~$0.6 billion were ~~$0.2~~$0.4 billion higher than the prior year. Net investments and advances decreased ~~$0.2~~$0.7 billion to ~~$0.3~~$0.5 billion.

Net cash used by financing activities was ~~$7.8~~$14.8 billion in the first ~~three~~six months of 2021, including ~~$4.1~~$7.0 billion of debt repayments. This compares to net cash provided by financing activities of ~~$8.8~~$15.1 billion in the prior year, due to a long-term debt ~~issuance~~issuances in the first ~~quarter~~six months of 2020.

Total debt at the end of the ~~first~~second quarter of 2021 was ~~$63.3~~$60.6 billion compared to $67.6 billion at year-end 2020. The Corporation's debt to total capital ratio was ~~27.8~~26.8 percent at the end of the ~~first~~second quarter of 2021 compared to 29.2 percent at year-end 2020. The Corporation's capital allocation priorities continue to be investing in advantaged projects, strengthening the balance sheet and paying a reliable dividend.

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

The Corporation distributed a total of ~~$3.7~~$7.4 billion to shareholders in the first ~~three~~six months of 2021 through dividends.

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating acquisitions include potential for future growth and attractive current valuations. Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.

The termination of certain transportation service agreements in the first quarter reduced commitments previously reported at year-end in Form 10-K under “Take-or-pay and unconditional purchase obligations” by approximately $2.3 billion. The majority of those commitments related to the years 2026 and beyond.

Litigation and other contingencies are discussed in Note 3 to the unaudited condensed consolidated financial statements.

TAXES


		First Three Months				Second Quarter				First Six Months
			2021		2020			2021		2020		2021		2020
		(millions of dollars)				(millions of dollars)				(millions of dollars)
Income taxes	Income taxes		796		512		Income taxes	1,526		(471)		2,322		41
Effective income tax rate	Effective income tax rate		33	%	481	%	Effective income tax rate	30	%	29	%	31	%	-33	%
Total other taxes and duties (1)	Total other taxes and duties (1)		7,283		7,497		Total other taxes and duties (1)	8,441		5,683		15,724		13,180
Total	Total		8,079		8,009		Total	9,967		5,212		18,046		13,221

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

Total taxes were ~~$8.1~~$10.0 billion for the ~~first~~second quarter of 2021, an increase of ~~$0.1~~$4.8 billion from 2020. Income tax expense was ~~$0.8~~$1.5 billion compared to a $0.5 billion income tax credit in the prior year reflecting higher commodity prices. The effective income tax rate of 3330 percent compared to ~~481~~29 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax ~~rates and the absence of prior year inventory valuation and impairment impacts.~~rates. Total other taxes and duties ~~decreased~~increased by ~~$0.2~~$2.8 billion to ~~$7.3~~$8.4 billion.

Total taxes were $18.0 billion for the first six months of 2021, an increase of $4.8 billion from 2020. Income tax expense increased by $2.3 billion to $2.3 billion reflecting higher commodity prices. The effective income tax rate of 31 percent compared to -33 percent in the prior year period primarily due to a change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties increased by $2.5 billion to $15.7 billion.

In the United States, the Corporation has various ongoing U.S. federal income tax positions at issue with the Internal Revenue Service (IRS) for tax years beginning in 2006. The Corporation filed a refund suit for tax years 2006-2009 in U.S. federal district court (District Court) with respect to the positions at issue for those years. On February 24, 2020, the Corporation received an adverse ruling on this suit. The IRS has asserted penalties associated with several of those positions. The Corporation has not recognized the penalties as an expense because the Corporation does not expect the penalties to be sustained under applicable law. On January 13, 2021, the District Court ruled that no penalties apply to the Corporation's positions in this suit. The Corporation filed a notice of appeal regarding the substantive issues to the Fifth Circuit Court of Appeals on April 9, 2021. The government filed a notice of appeal regarding the penalty issue to the same court on April 19, 2021. Proceedings in the Fifth Circuit Court of Appeals are continuing. Unfavorable resolution of all positions at issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.

RESTRUCTURING ACTIVITIES

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

In the first ~~quarter~~half of 2021, the Corporation recorded ~~before-tax~~after-tax charges of ~~$39~~$43 million, ~~($31 million after tax),~~ consisting primarily of employee separation costs, from workforce reduction programs in Singapore and Europe associated with the global review of staffing levels. ~~These costs are captured in “Selling, general and administrative expenses” on the Statement of Income. Before-tax~~The cash outflows in the first ~~quarter~~half of 2021 associated with these activities were ~~$130~~$224 million.

The Corporation estimates total charges of ~~up to $200~~less than $100 million in 2021 related to planned workforce reduction programs with cash outflows ranging between $400 million and ~~$600~~$500 million. This does not include charges related to employee reductions associated with any portfolio changes or other projects. Before-tax ~~workforce~~workforce reduction savings, including employees and contractors, are estimated to range between $1 billion and $2 billion per year after program completion when compared to 2019 levels.

2226

CAPITAL AND EXPLORATION EXPENDITURES


		First Three Months			Second Quarter			First Six Months
			2021	2020			2021	2020	2021	2020
		(millions of dollars)			(millions of dollars)			(millions of dollars)
Upstream (including exploration expenses)	Upstream (including exploration expenses)		2,357	5,126		Upstream (including exploration expenses)	2,817	3,577	5,174	8,703
Downstream	Downstream		470	1,234		Downstream	455	1,053	925	2,287
Chemical	Chemical		306	782		Chemical	530	695	836	1,477
Other	Other		—	1		Other	1	2	1	3
Total	Total		3,133	7,143		Total	3,803	5,327	6,936	12,470

Capital and exploration expenditures in the ~~first~~second quarter of 2021 were ~~$3.1~~$3.8 billion, down 5629 percent from the second quarter of 2020.

Capital and exploration expenditures in the first six months of 2021 were $6.9 billion, down 44 percent from the first ~~quarter~~six months of 2020. The Corporation expects 2021 capital spending to be intoward the lower end of the guidance range of $16 billion to $19 billion. Actual spending could vary depending on the progress of individual projects and property acquisitions. If market conditions continue above the Corporation's planning basis, additional cash will not be used to increase capital investment above this range, but will instead be used to accelerate deleveraging.

FORWARD-LOOKING STATEMENTS

Statements related to outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions are forward-looking statements. Actual future results, including financial and operating performance; planned capital and cash operating expense reductions and ability to meet or exceed announced reduction objectives; plans to reduce future emissions intensity and the expected resulting absolute emission reductions; progressing carbon capture projects and results; total capital expenditures and mix; cost and expense reductions; emissions intensity and absolute emission reductions; cash flow, ~~dividend~~dividends, debt levels, and shareholder returns; business and project plans, timing, costs, capacities, and ~~capacities; resource recoveries~~returns; asset management activities; results from settlement of outstanding derivatives; workforce reductions; the outcome of litigation, tax, and ~~production rates;~~other contingencies; and future accounting and financial reporting effects ~~resulting from market developments and ExxonMobil’s responsive actions,~~of the foregoing could differ materially due to a number of factors. These include ~~the continuity of our board of directors and their strategic oversight;~~ global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and feedstocks and other market conditions that impact prices and differentials; ~~the impact of company actions to protect the health and safety of employees, vendors, customers, and communities;~~ actions of competitors and commercial counterparties; the ability to access short- and long-term debt markets on a timely and affordable basis; the ~~severity, length and~~ ultimate ~~impact~~impacts of COVID-19, including the extent and nature of further outbreaks and the effects of government responses on people and economies; reservoir performance; the outcome of exploration ~~projects and~~projects; timely completion of development and other construction projects; changes in law, taxes, or regulation including environmental regulations, trade sanctions, and timely granting of governmental permits; government policies and support and market demand for low carbon technologies like carbon capture; war, ~~trade agreements and patterns, shipping blockades or harassment,~~ and other political or security disturbances; opportunities for ~~and regulatory approval of~~ potential investments or ~~divestments; the actions~~divestments and satisfaction of ~~competitors;~~applicable conditions to closing, including regulatory approvals; the capture of efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while maintaining future competitive positioning; unforeseen technical or operating ~~difficulties;~~difficulties and unplanned maintenance; the development and competitiveness of alternative energy and emission reduction technologies; the results of research ~~programs;~~programs and the ability to bring new technologies to commercial scale on a cost-competitive basis; ~~general economic conditions including the occurrence and duration of economic recessions;~~ and other factors discussed in this report and under Item 1A. Risk Factors of ExxonMobil’s 2020 Form 10-K. We assume no duty to update these statements as of any future date.

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

2327

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Information about market risks for the ~~three~~six months ended ~~March 31,~~June 30, 2021, does not differ materially from that discussed under Item 7A of the registrant's Annual Report on Form 10-K for 2020.

Item 4. Controls and Procedures

As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, Principal Financial Officer and Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of ~~March 31,~~June 30, 2021. Based on that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of 1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms. There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

2428

PART II. OTHER INFORMATION

Item 1. Legal Proceedings

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

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

As reported in the Corporation’s Form 10-Q for the third quarter of 2020, ExxonMobil appealed to the U.S. Court of Appeals for the Fifth Circuit a judgment of the United States District Court for the Southern District of Texas entered on April 26, 2017, in a citizen suit captioned Environment Texas Citizen Lobby, Inc. et al. v. Exxon Mobil Corporation. The U.S. District Court had awarded approximately $20 million in civil penalties, payable to the United States Treasury. In the suit filed in December 2010, Environment Texas Citizen Lobby, Inc. and the Sierra Club, Lone Star Chapter, sought declaratory and injunctive relief, penalties, attorney fees and litigation costs associated with alleged violations of Title V of the Clean Air Act. Plaintiffs alleged that ExxonMobil repeatedly violated, and will continue to violate, its air operating permits, the Texas State Implementation Plan and the Clean Air Act by emitting air pollutants into the atmosphere from the Baytown complex in excess of applicable emission limitations or otherwise without authorization at the Baytown, Texas, refinery, chemical plant and olefins plant. On July 29, 2020, the Fifth Circuit vacated the U.S. District Court’s penalty award and remanded the case back to the District Court for further proceedings. On March 2, 2021, the U.S. District Court awarded $14.25 million in civil penalties, payable to the United States Treasury. ExxonMobil filed its appeal of the judgment in the U.S. Court of Appeals for the Fifth Circuit on April 12, 2021.

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

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

Issuer Purchase of Equity Securities for Quarter Ended ~~March 31,~~June 30, 2021

Period

Total Number
of Shares
Purchased

Average
Price Paid
per Share

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

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

~~January~~April 2021

—

~~February~~May 2021

—

~~March~~June 2021

—

Total

—

(See Note 1)

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

Note 1 - In its earnings release dated February 2, 2021, the Corporation stated that it had suspended its first quarter 2021 anti-dilutive share repurchase program due to market uncertainty and intends to resume this program in the future as market conditions improve.

Item 6. Exhibits

See Index to Exhibits of this report.

2529

INDEX TO EXHIBITS


Exhibit						Description



10(iii)(c.1)						ExxonMobil Supplemental Savings Plan. (incorporated by reference to Exhibit 10(iii)(c.1) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2021).
10(iii)(c.2)						ExxonMobil Supplemental Pension Plan. (incorporated by reference to Exhibit 10(iii)(c.2) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2021).
10(iii)(c.3)						ExxonMobil Additional Payments Plan. (incorporated by reference to Exhibit 10(iii)(c.3) to the Registrant's report on Form 10-Q for the quarter ended March 31, 2021).
31.1						Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Chief Executive Officer.
31.2						Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Financial Officer.
31.3						Certification (pursuant to Securities Exchange Act Rule 13a-14(a)) by Principal Accounting Officer.
32.1						Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Chief Executive Officer.
32.2						Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Financial Officer.
32.3						Section 1350 Certification (pursuant to Sarbanes-Oxley Section 906) by Principal Accounting Officer.
101						Interactive Data Files (formatted as Inline XBRL).
104						Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101).

2630

EXXON MOBIL CORPORATION

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	EXXON MOBIL CORPORATION
Date: ~~May 5,~~August 4, 2021	By:	/s/ LEN M. FOX
		Len M. Fox
		Vice President, Controller and
		Principal Accounting Officer

2731


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