2013 Analyst Meeting New York Stock Exchange March 6, 2013 Exhibit 99.2 |
Cautionary Statement Forward-Looking Statements. Outlooks, projections, estimates, targets, business plans, and other statements of future events or conditions in this presentation or the subsequent discussion period are forward-looking statements. Actual future results, including financial and operating performance; demand growth and mix; ExxonMobil’s production growth and mix; the amount and mix of capital expenditures; future distributions; resource additions and recoveries; finding and development costs; project plans, timing, costs, and capacities; efficiency gains; cost efficiencies; integration benefits; product sales and mix; and the impact of technology could differ materially due to a number of factors. These include changes in oil or gas prices or other market conditions affecting the oil, gas, and petrochemical industries; reservoir performance; timely completion of development projects; war and other political or security disturbances; changes in law or government regulation; the outcome of commercial negotiations; the actions of competitors and customers; unexpected technological developments; the occurrence and duration of economic recessions; unforeseen technical difficulties; and other factors discussed here and under the heading "Factors Affecting Future Results" in the Investors section of our Web site at exxonmobil.com. See also Item 1A of ExxonMobil’s 2012 Form 10-K. Forward-looking statements are based on management’s knowledge and reasonable expectations on the date hereof, and we assume no duty to update these statements as of any future date. Frequently Used Terms. References to resources, resource base, recoverable resources, and similar terms include quantities of oil and gas that are not yet classified as proved reserves but that we believe will likely be moved into the proved reserves category and produced in the future. “Proved reserves" in this presentation are presented using the SEC pricing basis in effect for the year presented, except for the calculation of 19 straight years of at least 100-percent replacement; oil sands and equity company reserves are included for all periods. For definitions of, and information regarding, reserves, return on average capital employed, cash flow from operations and asset sales, free cash flow, and other terms used in this presentation, including information required by SEC Regulation G, see the "Frequently Used Terms" posted on the Investors section of our Web site. The Financial and Operating Review on our Web site also shows ExxonMobil's net interest in specific projects. The term “project” as used in this presentation does not necessarily have the same meaning as under SEC Rule 13q-1 relating to government payment reporting. For example, a single project for purposes of the rule may encompass numerous properties, agreements, investments, developments, phases, work efforts, activities and components, each of which we may also informally describe herein as a “project.” 2 |
Agenda 9 AM Welcome Corporate Overview Business Overview Strategic Overview Upstream Downstream and Chemical Break Summary 11 AM Q&A 12 PM Meeting Concludes Rex Tillerson, Chairman and CEO Mike Dolan, Senior Vice President David Rosenthal, Vice President, Investor Relations Rex Tillerson, Chairman and CEO 3 |
Chairman and CEO Rex Tillerson Corporate Overview 4 |
Key Messages Risk management is fundamental to our business Continued strong financial and operating results Major project start-ups drive volume growth for 2013 – 2017 Portfolio of opportunities for long-term profitable growth ExxonMobil strategy delivers superior returns over the long term 5 |
2012 Results Strong industry safety performance Rigorous environmental management Superior financial / operating results Disciplined capex $39.8B Unmatched shareholder distributions* $30.1B Reserves replacement** 115% Strong results across key financial and non-financial parameters * Includes dividends and share purchases to reduce shares outstanding. ** Includes asset sales. 6 Earnings $44.9B ROCE 25.4% Cash flow from operations and assets sales $63.8B |
Risk Management Management accountability High standards Employee and contractor training Operations Integrity Management Systems (OIMS) Risk management is fundamental to our business 7 Well-developed and clearly- defined policies and procedures Rigorously applied systems |
Safety Our vision: Nobody Gets Hurt Emphasis on personnel and process safety risk Committed to continuously improving safety performance Lost Time Incident Rate Incidents per 200K hours Safety performance improved versus 2011 * 2012 industry data not available. ** XTO included beginning in 2011. 8 |
Environmental Performance Strong environmental management Improving energy efficiency Reducing flaring, emissions, releases Protect Tomorrow. Today. Hydrocarbon Flaring from Upstream Oil & Gas Production Million metric tons Committed to reducing environmental impact * XTO included beginning in 2011. 9 |
Earnings Earnings of $44.9B in 2012, an increase of 9% over 2011 Strong performance across all business lines Leveraging integration advantages Maximizing value of asset base 10 |
Upstream Earnings per Barrel Managing the Upstream portfolio to improve earnings per barrel Current asset mix impacting results in the short term Plans in place to maximize value Disciplined and consistent approach over the long term Ongoing portfolio management Earnings per OEB* * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 11 |
Return on Capital Employed ROCE of 25.4% in 2012 Investments position long-term performance Disciplined investment through the business cycle Strength of integrated portfolio, project management, and technology application Return on Average Capital Employed* Proven business model continues to deliver ROCE leadership * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 12 |
Free Cash Flow Funded attractive investment opportunities Generated free cash flow of $138B since beginning of 2008 Provides capacity for unmatched shareholder distributions Total Free Cash Flow* $B, cumulative ‘08 – ‘12 Superior cash flow provides investment and distribution flexibility * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 13 |
Total shareholder distributions of $145 billion Higher than competitors combined 4.5 billion shares outstanding Reduced from 7.0 billion post Exxon-Mobil merger and 5.1 billion post XTO acquisition Dividends per share increased 59% since beginning of 2008 21% per-share increase in 2Q ‘12 30 years of consecutive per-share dividend increases Unmatched Shareholder Distributions Industry-leading shareholder distributions * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. ** Includes share repurchases related to Scrip Dividend Programme. 14 |
Distribution Yield Industry-leading shareholder distributions Total distribution yield of 29% since beginning of 2008 Nearest competitor at 23% Average annual distribution yield of 7.2% Competitor average of 4.7% Maintained strong financial position Distribution Yield* Percent, dividends and share repurchases, ‘08 – ‘12 * Yield based on 2007 year-end market capitalization. ** RDS, BP, and CVX. Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 15 |
Production Growth per Share* Indexed growth, ‘08 – ‘12 Each share has an interest in 21% more production volumes Annualized production growth per share of 5% Nearest competitor at about 2% Reflects benefit of share purchases Increasing Ownership Enhanced per-share interest in ExxonMobil production * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 16 |
Financial results and stock market returns best viewed over long term Reflects strong financial and operating performance Competitive advantages maximize shareholder value Shareholder Returns $K, value of $1,000 invested (as of YE 2012) Share Performance Long-term performance exceeds competitor average and S&P 500 * RDS, BP, and CVX. Competitor data estimated on a consistent basis with ExxonMobil and based on public information. 17 |
Chairman and CEO Rex Tillerson Business Overview 18 |
Business Environment Global environment offers a broad mix of challenges and opportunities Near-term economic growth remains sluggish with risks persisting in the OECD Developing economies show signs of stabilizing after slowdown in 2012 Significant regulatory initiatives continue while climate policies remain uncertain Long-term outlook for energy and petrochemical demand remains robust 19 |
Energy Demand to 2040 Source: ExxonMobil 2013 Outlook for Energy * Other includes hydro, geothermal, biomass, wind, solar, and biofuels. Mix gradually shifts with oil and natural gas remaining prominent Higher oil demand driven by expanding transportation needs Strong growth in natural gas led by power generation needs Pace of demand growth moderated by efficiency gains across the world Global energy demand expected to grow about 35% by 2040 20 |
Developing Economies Lead Growth Source: ExxonMobil 2013 Outlook for Energy * OECD: Organization for Economic Co-operation and Development Asia Pacific demand accounts for close to 60% of global increase 21 Non-OECD Countries* Quadrillion BTUs Biomass Other Oil Nuclear OECD Countries Coal Gas Quadrillion BTUs |
Liquids and Gas Supplies Expand and Diversify Source: ExxonMobil 2013 Outlook for Energy Advances in technology enable growth from unconventional resources 22 |
Transportation Product Demand Transportation product mix will shift as demand rises more than 40% Demand for diesel driven by expanding commercial activity Gasoline demand will be relatively flat, reflecting fuel economy gains Diesel will surpass gasoline as the number one transportation fuel MOEBD Global Demand Source: ExxonMobil 2013 Outlook for Energy 23 |
Global Chemical Demand Demand growth above GDP’s as standards of living improve Two-thirds of growth in Asia Pacific Chemicals provide cost and material attribute advantages Sources: IHS Chemical and ExxonMobil estimates * Chemical demand shown is polyethylene, polypropylene, and paraxylene. Global Chemical Demand* Million metric tons Chemical demand growth driven by Asia Pacific 24 |
The Energy Challenge Meeting the world’s growing energy needs safely and responsibly Requires an abundance of diverse, reliable, and affordable supplies Demands a commitment to innovation and technology Requires access to high-quality resources Calls for unprecedented levels of investment and expanding trade Requires sound, stable government policies Demands effective risk management and operational excellence 25 |
Strategic Overview Chairman and CEO Rex Tillerson 26 |
Key Elements of ExxonMobil Strategy Best-in-class Upstream, Downstream, and Chemical businesses Effective risk management, safety, and operational excellence Integrated business model Disciplined processes World-class assets across all business lines Focus on profitability and returns Long-term approach 27 |
Upstream Chairman and CEO Rex Tillerson 28 |
Leading Upstream Business Consistent execution of strategy delivers long-term value Industry-leading capabilities Successful track record of developing best-in-class resources Positioned for sustained growth Intense focus on profitability and differentiation from competition 29 |
Leading Deepwater Capability Identified and captured high-quality acreage Cost-effective hub and satellite development Operations practices delivering industry leading reliability Developing and applying high-impact technologies Transformed frontier acreage to large-scale production 30 Angola-operated gross cumulative production Major exploration discoveries Design one, build multiple 1995 2000 2005 2010 |
New Developments - Gulf of Mexico Leading Deepwater Capability Lucius and Hadrian South projects progressing toward 2014 start-up Hadrian North appraisal drilling Julia project long-lead items on order; engineering underway Exploration drilling and seismic activity ongoing Marine Well Containment System delivery in 2013 Applying expertise to 1.7 million acres in the Gulf of Mexico Maui Maui 31 |
1995 2000 2005 2010 Leading LNG Capability Qatar joint ventures gross cumulative production Developing and applying high-impact technologies Developing emerging LNG markets Extending LNG operating experience and project execution capabilities globally 1st LNG cargo Ras Laffan JV established Train 1 Ras Gas Commercialized world’s largest gas field via LNG with Qatar Petroleum > 5 BOEB produced Train 4 Qatargas II 32 Multiple industry “firsts” Economies of scale across value chain |
New Developments - Papua New Guinea Leading LNG Capability High-quality 9 TCF resource Two-train 6.9 MTA LNG plant On schedule for start-up in 2014 Adding resource for a potential third train Applying global LNG experience and project execution capabilities 33 |
1980 1985 1990 1995 2000 2005 2010 Leading Oil Sands / Heavy Oil Capability Premier portfolio of long-plateau volumes Enabling technologies improve recoveries and reduce environmental impact Developing projects with strong earnings Cold Lake gross cumulative production High-quality resources and enabling technologies deliver long-term value > 1 BOEB produced Commercial development 34 |
Facility start-up 1Q 2013 Proprietary technology Long-term plateau production Expansion project execution in progress ~30% complete New Developments - Kearl Leading Oil Sands Capability Long-life resource begins production 35 |
Leading Arctic Capability ExxonMobil interest & field program experience Arctic-like conditions Over 90 years of technology innovation in the Arctic 1920 1970s 2002 2012 1969 1997 2005 36 1984 |
New Developments - Sakhalin and Hebron Leading Arctic Capability Sakhalin Arkutun-Dagi Chayvo Onshore Expansion start-up Hebron Project sanctioned Develops 700 MBO Execution under way Applying proven arctic capabilities to progress additional developments 37 Gravity-based structure complete Topsides fabrication in progress On schedule for 2014 start-up |
Leading Unconventional Capability Unmatched position in unconventional plays in North America Shale gas Tight oil Tight gas CBM Tight gas / CBM Heavy oil / Oil sands Shale oil (incl. liquids rich) Fayetteville 505K Woodford 385K Bakken 585K San Juan / Raton 445K Uinta 260K Piceance 320K Barnett 230K Haynesville / Bossier 240K Horn River 340K Marcellus / Utica 625K Cardium 235K San Joaquin Valley 150K Utica 90K Permian 400K Eagle Ford 90K Freestone 320K Athabasca 720K Summit Creek 445K Smackover 215K Montney / Duvernay 650K 38 |
Woodford Ardmore Bakken Permian Expanding Liquids-Rich Position Leading Unconventional Capability Leading position in major plays drives significant liquids growth 39 > 1.5 BOEB resource potential Most active unconventional play Infrastructure build-out progressing Growing core liquids position 0.9 BOEB resource Strategic bolt-on acquisition Leading producer and acreage holder |
0 500 1,000 1,500 2,000 0 500 1,000 1,500 Consistent increase in wells per rig year yields reduction in drilling costs Continuing to extract value even with increasing well complexity Optimized completions yield higher recoveries Approach applied to global portfolio Operational Excellence Leading Unconventional Capability Driving down costs and increasing recovery Completion Optimization - Haynesville Rate, MCF per 1,000 feet Time (days on production) Optimized Traditional 40 |
2013 – 2017 Production growth Major project start-ups deliver significant volume growth Continued development of resource base Adding 1 MOEBD net by 2017 Significant growth in liquids and liquids-linked gas 41 |
Resource Base 87 BOEB – delivering today, positioning for tomorrow Large, diverse, and well-balanced portfolio of assets 25 BOEB proved reserves – current operations and projects in construction 27 BOEB – in design and development stages 35 BOEB – future development 2013 – 2017 Production Growth Resource Base 42 |
Reserves Replacement & Resource Additions Proved Reserves Replacement* Annual Resource Additions** Consistently replacing reserves and adding quality resources 2013 – 2017 Production Growth * Reserves replacement based on SEC pricing bases and including asset sales, except as noted in the Cautionary Statement. ** Excludes XTO acquisition and the proved portion of discovered undeveloped additions. 43 |
Projects Delivering Volume Growth 2013 – 2017 Production Growth Oil Sands Kearl Conventional Nigeria Satellites Arctic Arkutun-Dagi Deepwater Angola Satellites LNG Papua New Guinea Conventional Banyu Urip LNG Gorgon Jansz 31 major project start-ups between 2012 and 2017 Conventional Telok 44 |
Major Project Production Outlook 2013 – 2017 Production Growth Major Project Production Outlook* Over 1 MOEBD net added by 2017 Portfolio supports long-term growth MOEBD Major projects deliver liquids and liquids-linked volume growth * Excludes impact of future divestments and OPEC quota effects. Projections based on 2012 average prices ($112/B Brent) 45 > 90% liquids + liquids-linked volumes Two-thirds long-plateau volumes |
Total Production Outlook* Upstream Production Outlook Liquids outlook Gas outlook Liquids + liquids-linked outlook: up 3 – 4% per year Total production outlook 2013 – 2017 Production Growth 2 – 3% growth per year through 2017 – strong contribution from liquids * Excludes impact of future divestments and OPEC quota effects. Projections based on 2012 average prices ($112/B Brent) 46 2013: up ~2% 2013 – 2017: up ~4% per year 2013: down ~5% 2013 – 2017: up ~1% per year 2013: down ~1% 2013 – 2017: up 2 – 3% per year |
Long-Term Growth Opportunities Well positioned for sustained long-term growth Successful exploration results Deep and robust inventory Adding quality acreage in proven and emerging plays 47 |
New Opportunity Growth Growth Opportunities Vietnam Beaufort Faroe Islands Madagascar Guyana Ireland New play tests Play Type Kara Sea Russian Black Sea Ukraine Growing global portfolio of high-quality resource opportunities South Africa Chukchi Sea Laptev Sea 48 |
New Opportunity Growth Growth Opportunities Vietnam Norway Abu Dhabi Beaufort Romania Iraq Tanzania Nigeria PNG Gulf of Mexico Australia Angola Faroe Islands Madagascar Guyana Ireland New play tests Play Type Proven conventional plays Kara Sea Russian Black Sea Ukraine Growing global portfolio of high-quality resource opportunities South Africa Chukchi Sea Laptev Sea 49 |
Vietnam Indonesia Norway Abu Dhabi Horn River Alberta tight oil Athabasca Beaufort Summit Creek Romania Iraq Tanzania Nigeria PNG Gulf of Mexico Australia Angola Faroe Islands Madagascar Guyana Ireland Permian Basin Woodford Utica Argentina Colombia New play tests Unconventional Play Type Proven conventional plays Marcellus Germany New Opportunity Growth Kara Sea West Siberia Russian Black Sea Bakken China Ukraine Growth Opportunities Growing global portfolio of high-quality resource opportunities South Africa Chukchi Sea Laptev Sea 50 |
Kara Sea Growth Opportunities 31 million acres in Kara Sea Completed large field program Completed definitive agreements Expect to start drilling in 2014 Significant new exploration position in prospective Arctic 51 |
Russian Arctic Growth Opportunities Expanding strong partnership between ExxonMobil and Rosneft SCA licenses Expanded SCA licenses Expansion of Strategic Cooperation Agreement Additional 150 million acres Blocks among most promising offshore areas globally Leverages strengths of ExxonMobil and Rosneft 52 |
Black Sea Growth Opportunities Established strong position in emerging new hydrocarbon province 53 |
Zafarani-1 Lavani-1 Lavani-2 Zafarani-2 Tanzania ExxonMobil interest Tanzania Growth Opportunities Drilled three successful wells in 2012 Appraising Zafarani and Lavani Continuing exploration activities Discovered fields in initial development planning Bringing industry-leading capability to a new frontier basin 54 Seismic acquisition Prospect maturation and drilling |
Upstream Summary Successful track record of developing best-in-class resources and projects Near-term project start-ups deliver significant volume growth Continuing to expand differentiating capabilities Strong portfolio of opportunities Intense focus on profitability and differentiation from competition Upstream business is well positioned for sustained growth 55 |
Senior Vice President Mike Dolan Downstream and Chemical 56 |
Premier Downstream and Chemical Businesses 57 |
Premier Downstream and Chemical Businesses 58 |
Premier Downstream and Chemical Businesses Operational excellence Industry-leading portfolio Superior financial performance 59 Best-in-class operations Operating flexibility and optimization tools Technology-enabled, high-value product growth Balanced suite of pacesetter sites Disciplined portfolio management and highgrading Robust pipeline of quality investments Best-in-class returns Strong cash generation |
Operational Excellence Strong reliability Advantaged cost position Technology leadership Operational metrics favorable versus competitors 60 Steam cracker utilizations 1 – 2% above average Refining unit costs 10% lower than average Aromatics unit energy consumption 20% lower than average |
A leader in mid-continent refining capacity ExxonMobil mid-continent refineries processing ~100% advantaged crudes North America Mid-Continent Advantage Maximizing value via integrated and flexible refining circuit Mid-Continent* Equity Refining Capacity Source: PIRA data, 3Q12 * United States and Canada 61 Benefiting from North America unconventional crude growth Seven-fold earnings increase since 2010 |
U.S. Gulf Coast Refining Optimization Flexible integrated circuit capturing heavy and light crude opportunities Increasing advantaged crude runs Well positioned to benefit from industry logistics enhancements Advantaged Crude Processing Maximizing value via integrated and flexible refining circuit 62 |
Chemical Optimization – Ethane 17-fold increase in earnings contribution since 2007 Unmatched capacity to feed U.S. ethane Robust capability over wide range of feed price environments Feedstock flexibility capitalizes on changing price environment ExxonMobil U.S. Ethane Earnings Contribution Earnings, indexed 63 Proprietary technology Integration |
Industry leader in basestocks and synthetic lubricants Pioneered synthetic lubricant technology with premier Mobil 1 Doubled high-value synthetic lubes sales in the last decade High-Value Product Growth Continual pursuit of high-value growth Mobil 1 Sales Volume, indexed 64 Faster than industry growth rate |
Premium Chemical Products Maximizing high-value specialties Differentiating commodities through technology Tripled earnings over the last decade High-value product portfolio drives earnings Premium Product Earnings 3-year moving average, indexed 65 Premium margins Faster growth than industry |
Poised to Capture Growth 66 |
Strengthening the Portfolio 67 |
Investing for Growth Finland Lube Blending Downstream Manufacturing Singapore Hydrotreater 68 |
Investing for Growth Finland Lube Blending Downstream Manufacturing Singapore Parallel Train Saudi Elastomers Baytown Cracker Chemical Manufacturing Singapore Hydrotreater 69 |
Industry-Leading Returns Downstream and Chemical businesses outperform across the cycle Industry-leading financial performance Operational excellence Capital discipline Downstream and Chemical Combined ROCE * Competitor data estimated on a consistent basis with ExxonMobil and based on public information. Competitors include BP, RDS, and CVX. Percent 70 Best-in-class operations Flexibility, optimization High-value product growth World-class assets Continual portfolio highgrading |
Break 2013 Analyst Meeting 71 |
Chairman and CEO Rex Tillerson Summary 72 |
Investment Plan Capex by Business Line Expect to spend average of about $38 billion per year from 2013 to 2017 Plan to invest approximately $41 billion in 2013 Committed to investing through the business cycle 73 Includes $3.1 billion for Celtic acquisition |
ExxonMobil Strengths Relentless focus on maximizing long-term shareholder value Strong financial and operating performance Balanced portfolio Disciplined investing High-impact technologies Operational excellence Global integration 74 |
Key Messages Risk management is fundamental to our business Continued strong financial and operating results Major project start-ups drive volume growth for 2013 – 2017 Portfolio of opportunities for long-term profitable growth ExxonMobil strategy delivers superior returns over the long term 75 |
Q&A 2013 Analyst Meeting 76 |