XOM - Earnings call transcript Q4 2018 | Exxon Mobil Corporation

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Operator

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

Neil Hansen

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

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

from very continued was quarter of integrated we’ll our and and our As are full on value a performance growth our year production call the with discuss This quarter our with by highlighted in generation we results. additional liquids model, today, pleased the portfolio. business downstream fourth in highgrading successful

will addition, accretive his business our on progress value In review perspectives on XXXX long-term shareholders. reflecting year ahead. and our will Darren After I generate and significant provide made for financial the on investments we quarterly the that performance, operating

happy and your be Following this, will to Darren take I questions.

like section of to notice events the quarterly Web and listing comments which site. earnings. slides a available Slide end on information Our on the this quarter also starting non-operational draw presentation, includes reference of the X supplemental morning that at of our this significant cautionary statement to the Investors this impacted your will I’d you’ll the attention

down lower XX% Industry supported fourth fourth LNG of in success Guyana our now equivalent the seasonal Conversely, secured the to decreased the so project barrels. performance. agreements for now X In Pluma Guyana WTI quarter LNG XX% Crude Rovuma with the down gas globe significant This to XXth resource greater Western successfully that during crudes Exploration Brent In decision seasonal the was in offtake Hub inventories. across highlight third the toward by final oil continued on Permian Production also facilities. quarter up realizations higher strong which increased up margins was logistics to Permian from progress Stabroek the Henry capture is a quarter the than we up another North X, on year. weakened moving manufacturing Mozambique, partly Moving block. far with by $XX.XX. Slide and offshore investment influenced discovery, distillate estimate the in prices the I’ll advantaged demand. $X.XX. and $X.XX Canada refining to track. offset find prices last developments and relative were the fourth gasoline quarter margins. America, by as quarter and The with we capacity we value billion oil leveraged stronger demand our was our remains and from

premium at of II advantaged We to produce base also Group key Rotterdam ultra-low projects, investment started sulfur higher up including This fuels the advanced refinery and increases hydrocracker our our six products, third capacity our value stocks. refinery. lubricant

our portfolio terminals Italy of highgrade to our Germany divestment and refinery downstream with the in assets. continue our Augusta We and related retail

integration quarter. impact Jurong safely strong fundamentals long-term review quarter The a Fourth estimated our wider Slide in acquisition more Our unfavorable XX% turnaround was markers realizations. at of progressed facility Singapore completed the the capacity remained our recent a North pressured upstream during business, additions to margins relative negatively supply industry million. $XXX impacts The asset million. third to wider the American quarter of impairments absence during The length weakened We and chemical earnings from impacted with quarter billion, XXXX. a by earnings petrochemical of quarter $X.X upstream with through go Crude complex. detailed were and our earnings a on X. realizations first of starting by nearby now differentials upstream the results, decreased with fourth I’ll differentials. in third of quarter relative U.S. $XXX million on current decline those the and decrease quarter reform $XXX favorable the tax

However, quarter on $XXX and growth integration in of Favorable An increased the quarter realized and allowed the third in other to stronger that million Europe resulted relative in to positively the seasonal seasonal earnings the our contributed fourth downstream. LNG $XXX $XXX to than and each million takeaway benefit capacity realize Permian in earnings. the in realizations downstream. again us upstream quarter more demand. being approximately a exceeds and by XX% Gas items effects logistics exchange pricing foreign million. continued value driven gas with demand in Having impacted production production a manufacturing by volume fourth increase in that corresponding estimated gas

X upstream Production year. day, Slide quarter the per third per oil and barrels was an increase oil equivalent fourth quarter quarter Moving than more of a million production barrels in equivalent day. the this to XXX,XXX of fourth comparison to of X

event due the gas exclude growth demand and seasonal a seasonal gas from the increase the continued in quarter. year divestments, the in that production this was production you at earlier in XX% and resulted entitlements volume demand as of up of If and Permian up growth. were X% downtime Syncrude a primarily impact to volumes liquids gas The absence occurred in impacts result fourth in X% of the Natural Netherlands. liquids

earnings with Moving quarter fourth XXXX. of Slide and quarter X a the to fourth comparison of upstream

$XXX exchange increase $XXX expenses. tax $X.X of was Those effects earnings American million. We items of margin downstream other from approximately a by contributed estimate some million again by and realizations the and compared operating Slide increased offset increased other the non-U.S. of and corresponding to the favorable impact $XXX billion. unfavorable estimated we the million again from was exclude foreign by That higher exploration that period chain in included gas Liquids approximately comparison quarter the by on a of from impairments, natural absence U.S. resulted divestments. a of billion, fourth while earnings differentials reform Favorable impacts and fourth $X.X unfavorable the increased again additional the of North The earnings last growth, by driven by that million. primarily that and relative integrated Hebron. year. one-time items Permian Higher X%, and entitlements crude all captured provides production increased value last and fourth quarter same Hebron, Liquids offset wider included excluding Permian you growth partly prices year. XX% differentials. quarter volumes fully $XX realizations, and million. by our as year impact in year If benefit $XXX impacts the in to production upstream from $X last a volumes in driven X the partly be increased decline from earnings to increase wider those relative last to effects

was not we X.X per barrels at also page, volumes XXXX you on shown finished while per year equivalent the in the full XXX,XXX XXXX day, provided Day. the I levels Now exclude that line oil Investor And effect highlight the if approximately entitlements March year with barrels to million essentially the of and of wanted day. guidance divestments production and

our by $XXX of of of to we mix, margin to by weakened with Slide X, All the I’ll refining assets manufacturing hydrofiner significant connect Germany in impacts refining This Downstream a the review favorable fourth crude approximately and refinery the a $X related million. quarter billion portfolio downstream $XXX items. the and and $XX a impact the captured to retail million. our highgrading. contributed startups decreased from Improvements differentials quarter; North yield the Augusta capture scheduled $X.X Antwerp moving earnings and earnings starting other with with operating logistics of divestment items by contributed to the earnings. was to in Now downstream third favorable to and operations maintenance of billion allowed value partly than from increased the North first which to Beaumont and supported year. quarter the integrated offset terminals Proceeds included fuels American million offset this comparison million tax expenses, however, during this facilities financial from contributed had earnings. more by us margins sales higher $XXX We Downstream barrels in and integrated of coker inventory some network. and value quarter, American by our results the

and yield scheduled of of regions. exclude the quarter higher lubricants positive was refinery $XXX was occurred resulting as contributed by on value were $XXX in improvement America. reliability retail up wider earnings and quarter to the to margins the year. of and the retail Germany maintenance absence XXXX, by Augusta margins assets of partly in in partly earnings of which Slide a last fuels last million. if differentials in by a terminals, we Mexico, billion downstream quarter. contribution in with offset growing related of and partly mix, significant across a integrated year. benefit billion. downstream other chain value refinery approximately inventory of the quarter fact $XXX Norway positive some impairments, a offset divestment divestment relative that This Turning offset sales The relative by same contribution million resulted markets $X.X earnings the the partly now crude in retail expenses fourth current some reflect was lower refining effects the impact All and items in Significant you refining North impacts $X.X of offset a X Improvements and estimate favorable new startup lower And investments had downstream review and like million tax. in positive of to a the almost U.S. network and million. in And fourth a Margins reform tax $XXX with from

new from contribution had items assets chemical tax that and polyolefin negatively industry included to earnings Fourth million. this now lengthening Lower higher as $XXX additions. quarter declined new a the $XXX resulted Turning of earnings $XXX one-time by We impacted expenses margins earnings non-U.S. quarter third XX in of impact initiatives. to Slide of margins review positive growth current from as million supply were million. relative a capacity and quarter a chemical Other year.

fourth Turning review last of to now and quarter of to relative Slide earnings the quarter chemical current XX year. a

flow $XXX cash quarter for operating experienced and planned a gains and prior assets asset had turnaround of on same depreciation maintenance from impairments, a all impairment in margins in This adjusted The for decrease, contribution items note tax activities by of initiatives. capital earnings the fourth gains had quarter a of $X.X quarter, industry in with new trend quarter negative mentioned completed in to earnings working quarter from Slide than non-U.S. expenses uses $X impact depreciation a it’s $XXX resulted $X.X a earnings capital reform new in impact divestment basis. higher mostly fourth working $XXX million the in the yielded tax Fourth cash. that Scheduled An in Italy. million, the Other some in U.S. tax asset increase We assets billion million approximately effects in the previously normal of other negative and and of due was changes positive which from of provides quarter. Germany resulted polyolefin in billion sources seasonal approximately an the non-cash included new before contribution one-time sales of million. review growth Lower payments, $XX Singapore, tax was included in driven the and driven and Europe. expense, line positive activities. a build of to And current from impact $XXX while items on we for supply million. quarter. chemical XX again inventory by million higher Excluding decreased $XXX sales a the the downstream billion polyethylene in to lengthening year important capacity. adjustments

and our the Had although proceeds quarter, Permian PP&E $X.X asset fourth reminder, by cash sales the in quarter received actually the both and in Augusta those driven quarter, billion Basin. Germany investments the have been Germany primarily a third this divestments quarter. would from fully increased cash divestment activity proceeds additions received were and As Fourth from the covered the we operations in distributions. occurred

excluding reform financial up flow sales. the from were by quarter XX% tax $XX billion. move and prices, I’ll higher to full the results. from and now year billion sales debt operations asset a liquids was impacts earnings, which Cash impairments, XXXX We in billion, growth and U.S. including value from prior the asset $X XX, XXXX from also in American Slide summarizes billion, $XX integration. by $X.X year from proceeds driven North reduced

company acquisitions the during $XX Day, above Brazilian year’s asset billion Now have Free during that incremental $X.X at Investor by was the in Debt about average sales that we billion, $XX related acquired upstream a $X flow in lubricants asset last we than of at $XX XXXX. downstream. cover slightly more the $XX above billion notably year investments in largely driven the to sales that $X.X billion, to was the billion, XXXX compared of the billion cash the to billion. enough previous CapEx year after five-year in year. paid Indonesian $X billion the the decrease and provided dividends the guidance end acreage of was ended and

Now significantly quarter before observations and excess weaker margins the Darren. regarding first downstream, production. I seasonal fourth with volumes levels. consistent with let it me provide we should few be to a In over gasoline largely are refining lower industry seeing hand demand Upstream quarter the

start in in the curtailments Permian In on addition, to additional narrower to coming year. crude much line have capacity the differentials with led the Canada coupled logistics

opportunities expected with through supply remain they again value chain the experienced to maintenance year and in the capture continues across close positioned first quarter will Scheduled margins XXXX. the we them. advantage as XXXX from the level are recent fourth we these work are under be Chemical impact markets quarter, to we of integration results of capacity demonstrate in as length While what will of activity pressure similar the to along saw to fourth the what the market additions. like open in versus this quarter the changes

quarter. corporate hand $XXX any charges this like to $XXX million to over the Darren. be And expect it would We and do quarterly expect I asset time, somewhere we finally, sales financing in million. first and significant between to At

Darren Woods

Thank you, be morning, today. Neil, on call everyone. and to Great the good

start just my providing Let on past year. me by perspective the

wide you improve the to our year, improving and while as think plan the in returns an our I will last all investment environments. price know flow recall of and of potential laid earnings across March structurally we business, cash out range of

for with business in extremely identified Permian I again integrated the progress we The demonstrated Western significant our by XXXX Canada. was model. reflect which the price As delivered upside. unpredictable additional prices pleased made have I the on only in am constraints We our transportation commodity the on the plans. in commitments not saw on Basin those once of XXXX, we We environment in compounded value year, swings

barrels. year Mobil. our portfolio have competitive the reflects our integrated plans leverage impact position seen of our advantaged sure longstanding a and growing our that price XXth upstream our consecutive debt ongoing flow a we make of of advantages which were advantages priorities the model, the the we thus of test which allowed us year integrated of value dividend. the fairly the environment, of cost develop supply. is is of and X% rigorously $XX value merger our certainly paid translating to by Developments Our our one market Throughout XXXX. generated belief us backdrop and continued Essential to and increased breadth best deliberate cash into and the This over we increases. for lowest giving XXXX, directly met the investments volatile company’s Exxon some the marking enabled and advancement the a investment our and full strength reaffirmed logistics the in and to we of year the avoid increase capture investments. the industry’s to earnings dividend have of off past of of reduce portfolio, in project our margin us year XXXX. business In to since the Against fund and since investment turn level operations manufacturing dislocations This in in a strategy scale for highest to our consistent sales, from billion with expectations asset of program,

track our with fact, identified give advances plans of ability significant additional me oil during our at five start In back In worked success more in than producing overview the saw we five year, deliver FPSOs Guyana, XXX,XXX in the equivalent the out me least barrels. the of with opportunities in extremely Each accelerate We we area on through you to we potential X the success, exploration drillship our as resource the resulting which progress project made delivering discoveries for let our we plans, outlined of March day plans record by of of upside year. upstream. to than XXXX. for With milestones that more brings the the a we continued estimate March. of a in we billion significant exploration an per barrels growth in the confident the laid to over We year and updated drilling. to on see brief added another remain focus and our that I’ll now back pace XXXX critical five XXXX. appraisal

of science an of the give bring to scale fundamental lowest scale, capabilities Houston, work will and industry. over cost It’s technology, believe reasons of have development focus deepwater Day is quickly X.X increased last Brazil acres. expand built for net XTO and Permian, integrate our advantage activities. acreage industry position. the approach bring unconventional have to skills an significant integrated a large to to key well where rest We market accelerate into and to approach. Since of we here bring Another development development moved we bring believe full a and why Investor our one the It’s we supply efficient opportunity the ExxonMobil. us the continue acreage leading to ExxonMobil broader the to of million we bring resources, their to position and strength year, we unique deliver the we the In

more delineation, upside shared optimized at meet beyond our We’ll we well that have previously. in we see growth Day. the in trajectory March Investor drilling we additional our discuss further when this As detail development and we with

that in make for projects it’s term. progress North closely the America that capacity in QP, Permian to advance integrated for near to in in as logistics and fuels Gulf investment downstream, continue are portfolio. growth the grows LNG in in refining good here with In plans something the tandem forward with and our track our To and We to higher been the also manufacturing six production our reminder We’ve ensure the plans footprint in very production our working differentials been additional investments, remain looking value announcing a demand on Golden important final PNG keep for logistics widening growing crude good why very capacity our are a to on putting for the lubricants, Pass refining active in decision. investment Mozambique and our place our We’ve in Coast. to very progressing versus as expansions. major industry. all Permian advantage takeaway for meet well we with partner and securing

started delayed projects progressing six plans business, line, year. meet in In remaining These facilities namely for hydrofiner, remaining flow with and hydrocracker. past the position on changes The the facilities business downstream March. are are enhance coker advanced for Beaumont upcoming projects up, our the line three spec next new those Rotterdam and have shared and outlined us year, three of seven cash Over significantly we on that IMO the chemical schedule. been the of growing earnings the well brought demand; Antwerp capacity XX the in our to plans we

provide proprietary XX% support We progress that a technologies applications. this growth with products sales We by driven objective of these advantage and XXXX to sales expect made XXXX, growth excellent our in towards X%. in investments by

investments example world-scale supplements convert to to competitive production our a industry technology the and stock to more base customer our returns. hydrocracker intermediate our stocks, project a significant The streams plays effectively in critical II always into only Rotterdam. base some March, is first-in-the-world Europe our advantages As of With producer in investment, global heavy it A Group us we of Asia role. upgrade. last advanced Group great combination this process catalyst leading becomes base. in uses II II serve almost the allowing said our U.S. and Rotterdam project deliver a and of proprietary combination Technology leverage all Group

We Rotterdam one for expect earnings this in making of double to one competitive it refineries Europe. product alone the the site most

Starting the producing themes to today, Golden in including expect and projects, a the for is As we Pass. Payara our on-spec to key next as up with we Guyana, and XXXX phases We significant line in running X upstream, speak two now key sanction Liza and and year as expectations. hydrocracker shift some two product projects, LNG of number of the and well the ahead. Mozambique

Payara this making progress add the late here XXXX, on the of FPSO plans me Guyana plans middle of for again the beyond phase year. that too laid startup. we Let the FID advance XXXX that out mobilize in first an plan the last Later in we track XXXX year development development at we’re to to putting for we the just and reflecting the early us

announced With and the pace week advances investment production investments we Permian with will this decision our our we development Permian to made advantage. expect of Beaumont Consistent integrated expansion we in the the accelerate final to profile. increase for add which further refinery plans, this, a our our

transportation Wink of the be industry’s link We We the in efficient progress the will of year. Baytown Permian to formation and most on XXXX, to brought JV pipeline also give on refinery the In projects Permian. three to end focus the back will fully that haul announced our advantages. their long Webster last Beaumont both the important leveraging

new Indonesia Mexico like growth markets we we’re on addition, midyear capitalize our into In continue track chemical push Beaumont position startup our we’re for on brands. of to business, that going a our polyethylene in further fully the Gulf ensuring the our strengthening expansion Coast. In and

discussed, grow and that with Baytown of oils, packaging propylene specialty used high products. others high waxes linear olefins along other high value, sales projects, alpha produce at performance performance and These projects continue we’ve two Vistamaxx which to plastomer FID to a growth, will is chemicals. to high plan the also We allow will in us

opportunities sectors, the for our and have all value very to the by generate on of significant reflect remain three excited As our we I business potential shareholders. I step back across

to have As formation distinct new global the companies, yesterday, have reorganizing five is seven. businesses. announced project upstream you full end-to-end will The Each the will accountability organizations may to seen have the full business provide and the oil and to for the to The business. each resource help three upstream our to will facilitate solutions will to of from expertise results technology of production upstream opportunities. from from integrated delivery new company’s gas into resource, The bring life scale, experience our down of entire discovery company global investment we successful organizations. functional abandonment. company These over development marketing advantage upstream of the and

activities development, business and will continue divestments. upstream all including ensure asset This and to portfolio the strategy the optimization portfolio focus the through available acquisitions we on company, and receive that increase to upgrade explorations, aggressively will pursue Third upstream opportunities, value-added divestments.

capabilities… Difficulty] which We’re combining us projects global company leverage into will proven from chemical [Technical effectively more project the upstream, the allow organizations to project one and downstream also company’s

Operator

Please while reestablish and our we stand by speaker please stand line. Ladies gentlemen, by. audio

We’re stand line. about main speaker Please reconnect to by. the

Neil Hansen

the that. We for understand apologize dropped. webcast We

back So we’re finish and Q&A. and we’ll to let going to him Darren take turn then it

Darren Woods

position for a understand dropped Gulf perspectives in Coast. track which off expansion pick turning on saying strengthen the we which our our of that I’ll chemical in we’re polyethylene to up the was try I is business. to going to midyear startup Beaumont where was further I XXXX

value, Vistamaxx These discussed, to used that high some performance to packaging produce high is planning plastomer at projects linear projects, specialty products. in sales growth, high and propylene of oils, grow us will performance allow along waxes alpha will FID chemicals. other a also with continue We’re to the which two olefins others we’ve and high Baytown

step for our shareholders. by and the significant reflect all back very potential the generate I on three of our we across to have sectors, value As I’m opportunities business excited

to seen distinct have and will reorganizing bring You resource, the full end-to-end functional from to will technology delivery global and upstream global our from expertise into over project opportunities. advantage from business discovery have announced three and results the These life accountability is experience facilitate abandonment. upstream successful the have oil the we new The our marketing Each The investment to of each company solutions to formation businesses. provide company organizations. of production down business. gas of yesterday full may help resource upstream seven. that will new the integrated The companies, organizations five for to upstream will company’s of development scale, the to

The to third strategy that company, the we activities pursue available the upgrade the upstream through ensure business portfolio upstream divestments. increase opportunities, divestments. development, portfolio will asset focus and and optimization will oversee acquisitions on to explorations, aggressively This all and value-added including continue

also combining more and downstream the chemical to will which the investment projects the upstream, global organizations us We’re from company effectively company’s portfolio. project capabilities leverage allow one into proven project entire across our

year examples allow leverage opportunities. working what the and to way of our make cracker Permian in the of a many will the months all behind to new of about came the businesses Rewiring new development to us chemical XX are organization great two a concepts implemented Corpus ago, that. design already to of had from we easier sustain the Now and it across

In important with particularly given upstream it businesses. growth improve the integration of downstream our will addition, the This capturing. and opportunities is and chemical we value are

Permian With gave increase billion $X to expect an we from guidance the the of increased in in about $X upside, billion CapEx particularly March. and the in Guyana, XXXX, be we

out are laid ability me I forward We excited progress about meet is on driving our execute about The hand management XXXX year to that, force growing commitments. behind when back it Day. that to our we remain the closing the to thoughts. the additional we in plans commitment detail reaffirming month We the plans hand are and very That team to committed just with we’ve few made the our the fully I the Neil, shared a value. feel back let we last on additional remain shareholder upsides. let sharing Neil. and Investor plans it upside Before offer good growth looking and confident in and delivery me very to forward you. With our next We at

Neil Hansen

your again have. for Darren. questions you now over – you we’ll We’ll turn might Q&A Thank try any on it comments, for

Operator

The Thank Instructions]. electronically. Evercore Woods question will Terreson We’ll conducted you, and question-and-answer Mr. session Mr. ISI. be from with Hansen. [Operator our Doug take first

Doug Terreson

and and Good morning, your on results progress. congratulations your guys,

Neil Hansen

Thank you, morning. Doug. Good

Doug Terreson

And the your you advantage past strong, while activity I on super of fairly investment a you productive this portfolio decade while too, highlighted peers or had Darren, on as divestitures levels so during BP the pretty divestitures your the returns management have obviously that tool. event not. looks or of been areas including which that capital competitive whether use to an refocused think profile as had majors So, have guys be below point, you

a to And of tool whether the highlighted? so way termed in if divestitures peers I reason you portfolio want as about philosophical management minute future restructuring hasn’t might active portfolio the talked you you a I the will it, you guys why optimization been about or comments tool this a elaborate see and that given you ExxonMobil for some there’s as more as the prominent divestitures your just whether on think ago. is be

Darren Woods

time some Thanks about Doug. Sure. to that. talking spend for question. Thanks, the Happy

reference it think I made March. we last to

re-optimize some attractive into about prices pipeline and portfolio. we that the us the came the advantages of talked and to opportunity at as up value as with the of in has is of leaned have that look very total of investment projects, our we backend XXXX One and off the allowed markets we’ve today loaded

the there. upstream billion a go project regular worth is have time, of opportunities additional and in What can investment with investing program in $XX increase we pretty divestment had now back we’ve XXXX. we assets since focus you these If the this about

would see the got really driven upstream opportunities think think brings. to market going would activity That’s to the assets by expect of side I So We’ve portfolio. divestments a sense in in be of market. pipeline we the the make that that to more I

as to though, kind We’re a come the we and fruition. actively I is doing go we’ll value through year that of Doug, play. that add what opportunities would see this

associated it. some not trying hit schedule to We’re with

our in that of out assets portfolio. we trying really realize have sure We’re make to maximum that the can the value we

As is to the organization I that. new us help going mentioned, with

Doug Terreson

Thanks No, I’m a Darren. sure. lot,

Darren Woods

Doug. Thank you,

Neil Hansen

Thanks, Doug.

Operator

to Phil with Gresh Next, JPMorgan. we’ll go

Phil Gresh

today. thanks be accelerated you for about spending the capital some has Hi. talked in Permian where Good first the areas I Darren, what talked rig is your being higher would March. versus about question you count on moving guess and morning, call certainly and around

to with too further without So you’re you want least running at how far that talk you see ahead comfortable now at you maybe what do you’re Analyst the XXXX? Are level or the getting you thinking could at talk about about about opportunity? Day,

Darren Woods

lubricants at had real Neil acquisition as our supplement and look What say then opportunity a Hi, to Yes. Indonesia there we spent a areas additional the Brazilian couple I really and XXXX – CapEx you the was mentioned think if thanks. Phil, in business. of we in acreage I will couple a nice

the where And into so be I ex acquisitions to CapEx. with line expected were think the we built in that pretty we plan, weren’t much on

to is scale value ExxonMobil technology research we play what – understand the And really ExxonMobil full bring capability bring delineation reflect the We the technology with XX year we Permian. that one looking and same we’re we and a got, Guyana, billion at just sure the with that some talked As the and we’ve that making seen things ourselves to that resource we’ve and as well I Permian time there bit to that Permian. about the can challenged just spent little value, unconventional the we’ve at does I so development because into expect as the unique opportunities this the doing the going but progress of along think the scale and the into leveraging be upside play? additional seeing resources in of what around said, have XXXX

good So cost, March you’ll what play. development overview long-term how uniquely coming is hear I around resources a unconventional think in a low is to this make into ExxonMobil successful

Phil Gresh

earnings some in Okay. more XXXX, second you you chemicals. was question 'XX and guess think that would And just see area about on challenging. I growth expected would be That my I if to that be think bit was an

you’re macro seeing So whether a it’s macro well, or all situation? maybe but little kind could both factors more of factors maybe just just specific are about if there you talk there bit a any from what as company

Darren Woods

Yes.

to sure we’re going the we cycles to these that two, are for investments price a see the the aligned that across chemical at try businesses. them We robust frankly, to I think we analyst try the be. potential are long-term where and one make all but, things margins of advantages to is to for make are on and making of position we take these businesses business the in and points meeting in don’t one, with, the try our

and see in if at that business remained see chemical I very trends into that elements X% industry so that’s in the carry growth on. with remained in I growth, in Saw standpoint into XXXX comfortable macro we chemicals. XXXX GDP continue challenge above demand to demand going of XXXX, the look we think of So that we the the strong, growth what foundational saw The some is supply – a the come amount that very in see out from future. chemical, as demand will

on at the about came to think year keep and world-scale focus every I demand XXXX, need growth three for If minute, up look six four crackers In stream you crackers probably with on. demand. you steam to a

around the they’re every industry not place coming for margins low move we’ve – made is the the of new have I supply coming with on put see think But more We focused grow move got timing capture supply. think So the projects than going would to of growth. things projects be, timing supply timing – bit. we again, show I will growth And get we’re overly to in more of on current we’ll make around we when all industry the a that. our cost and concern Those what project that leveraged that in the We’ve sure a us. ourselves annual that out and of lot those environment That a on. long-term up. shift positioned on that We’ve and advantages will but sure projects XXXX. leveraged don’t

we’re the advantaged rest industry. in So at irrespective the of versus to going cycle, the we’re be where of

Phil Gresh

you. Okay. Thank

Neil Hansen

Phil. Thanks,

Operator

take next from Wolfe Margolin Research. We’ll question with Sam our

Sam Margolin

morning. Good

Darren Woods

morning. Good

Sam Margolin

bit, the Neil to quantified $X.X this Darren, context You I that hoping pipeline But perspective billion. integration to your section and U.S. with in and week. a the was the too touched on the it FIDs of elaborate refinery a of ask little benefit little this in you bit the in were announced

that so coming function the a you chain other of and of lot U.S. on place given your investment something necessarily to and existing about stream that and the balance footprint is not want supply really portfolio you products crude kind the of finished the where and of like trying got there’s for an chains go that a makes easiest there U.S. through or exporter do a is the to be commercially is value in of kind a lot where fact U.S. feel is you incremental to the U.S. these of crude. You’ve places place

in bit little want background you of internationally. a the molecules specifically Just the on versus to target U.S.

Neil Hansen

We’re happy and morning. Thank to that, you good Sam. do

the really of I we the structure as of a think is look in and value it those markets the you’re markets. and function integration, of that at that

fast in It’s in opportunity key out a and you give think big Permian. here It’s need growing got just to why – of you we an example that. there’s so area. very you’ve me move and key let the inland So of logistics a

as we’re with to production disconnect in production to and be as is try pipeline rapid growth. in there keep logistic growing the systems rapidly up rapidly going Permian, – production that the industry And growing Permian so periods the as of are the

don’t we along chain be value been ExxonMobil to one because whole that across the whole is we disconnects is view our to and value And see have chain. of advantages the that exposed those integrated chain. participate looking has Our so want we across can we

our Permian, developing we in we’re and we’re in that refinery sure plans logistic making that plans sure so physical our from it so stays The and between that same versus the crude we somewhat alone differential in the somewhat time at importing They that the production bringing investments in stands take accommodate system’s developing disconnected developing from is The transportation are And that opportunity the refineries making plans the West there just they’re make some molecules. our as the Permian advantage Texas of alone. our connected. from the of but locations. in our

and margins just that of play. expansion expect transportation with the what refinery So to those differential the in out combined our is make attractive. And really a get we advantages

specific really in with the at the look and crude a you lot when because nature those and Western is us us Canada hear markets. So of talking about of Permian integration, it

don’t kind itself That the And value close of dynamics. the in, we markets we some to as manifest other market same Tidewater, are doesn’t we’re of have explicitly.

Sam Margolin

up. just Okay. follow quick then Thanks much. And so a

acquisitions in a Day mentioned the up XXXX versus in was your CapEx you Brazil. function You had small specifically some of in step some Analyst guidance acquisitions, opportunistic

and no to try acquisitions at Going that adds balancing forward, are as cash of these you asset to of going sales opportunistic well? work here sort just returns like with a pair consideration there’s function or are

Darren Woods

we’re where Yes, a really trying tell have not value. balance you outs. comes to back formula don’t – I would maximizing It we we’re to and ins

to has attractive opportunities same as see recognize value, an say I’d we to load out our also bring to get we high we us assets. frontend think some and portfolio. in we if more of we the the the pursue is opportunity and out. opportunity we That value at some some time that pipeline potential an by existing highest going the accretive trade we’re prioritize opportunities, the there an gives So definition and And acquisition, into moved investment more that. bring will across

see opportunities projects the sooner don’t we do, chance than that. that pipeline a As and those on a gives higher back, have to Others have we’ll and to we opportunity move value assets trade we of us the trade. same those

ourselves to Chapman expect expect and are more to see on Neil ramp up balance to divestments going team But constrain very that. see don’t try out. I’d to know coming his I that would And I out I things So to we’re think and focused upstream. those

Sam Margolin

you so much. Thank Okay.

Darren Woods

welcome. You’re

Neil Hansen

Thanks, Sam.

Operator

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

Neil Mehta

and morning call Good on Darren thanks the today. for being

the talk of offset The you you either have balance happen intend see I from of portfolio when you or talk was base to to existing how you and how outside and declines business. the projects where just declines some Groningen those that first playing try some the cash think like of just about we and on can What question look the had larger out doing about capital major declines And about as assets flow? continue do legacy that here? to the to returns you seen to are mitigate maximize do allow you to you volume

Darren Woods

Sure. to you again. Neil. hear good Hi, It’s from

on maximizing real the together spend happy me make sure about and happy with to and leveraging we’re say our of them to the full call we’ve corporation. Let kind and and has capability how pleased that the of come too organization I’m just challenged talking be I’m business. some time the

the have value changes already One I driving the reorganization and their have is upstream for as that their of businesses accountability my the our organization. the to value been maximize mentioned assets and and chain. for pushed profitability the make out upstream to And comments, into philosophy, sure in that ownership

year. up really as bottom where and on we’ve upsides not short-term upsides that business. terms extract as operations opportunities I just the we’re base went And Those focused a additional we they to seeing could in were aggressiveness from so from value, number the of I projects is mentioned also find what new the through organization but for the looking value. you day-to-day identified of to grow real think

a they every terms making production feel know. back. return With Groningen, economic around to that different day-to-day and you of offsetting that for good what’s slightly will about I as getting So spend a in make that. sure dollar decline to that’s we we’re respect bring decisions And dynamic that good

we kind and in that fairly to the the government fiscals, back the sure in and mechanism entailed take with and expressed made responsible Netherlands. tremors way. Groningen concerns Some the by That concerns agreement with that worked with of a the the the community the of business resource the change a the for line there, the we we address closely gas reached fiscals government in legitimate a rest of those had concerns,

and very reduction the think than I what there. that our plans has more reflected doing we we’ve and that so And growth we’re any in offset that go-forward all comfortable been will of see that got

Neil Mehta

on question follow-up just I is appreciate it. And the Liza.

political like that how are number? XXX,XXX about Do then target. a ahead especially case curious X long-term talked uncertainty some you sounds base from that see given the Miami, day towards steam upside to you’re of And in we timing Guyana? perspective of a down in barrel you As about phase potential thinking it full guys the

Darren Woods

about we and Yes, still doing feel really there Liza. confident advancing what we’re

we’ve we’ve mentioned already opportunities as about the long announced, way, still a out as in think I talked we’re there. that discoveries we that resource additional there. with I the see Miami, And FPSOs from – fully exploring

that just to X, on to continue With we see schedule put find that we’ll we’re plays we’ve resource. the some And how exploration Liza me this respect things track the happening X, advance that government grow let as be to to And So that out. of we’ll the and made optimistic some there. continue opportunities it – and that phase in you around that will place. the continues additional address there comment that with

going that important there to for I we’re go mindset to go think we we when XX be in countries, XX in a to with a it’s into lifetime, keep mind years.

group. have or a stakeholder can’t You successful of only your subset talking section you’re development to if a narrow a

on we’re development the So doing we aligned people been making sitting engaged the and are opposition, the with the have that with that. understood and is communities government, sure with what

place. that opposition understands in the the have we contracts So

understand that bring I development to of think Guyana. value the people the Guyana they that will and

with how approach companies long-term we and it’s a countries. with very to engaging I think about consistent think So

Neil Mehta

the appreciate Darren. Thanks, transparency. We increased

Darren Woods

Sure.

Neil Hansen

Neil. Thanks,

Operator

Next, to we’ll Syme with Alastair Citi. go

Alastair Syme

taking you LNG at couple sanction questions. Thanks of next the of over for My years. the trying projects my you’re Hi. look question to as clearly market, a lot first just

to look observations the secure sought Is do you dynamics? most a market So before interesting the changing historically you that market ExxonMobil sanction. and [ph] have still the have way at offtake about the of

Darren Woods

Alastair. Thanks,

That right. been You’re historical the model. has

a we that reference we’ll evolving. those sure make the people and question in develops. evolve maximize your anticipate to of kind again, it’s market to sure in and more see value that development but as we’re we we’re going are as positioned change. investments future. that with would on you investments. along going activity to implicitly with mean is it, I’m as certainly LNG evolve may the how But think that that not those portfolio consistent the make that make I market I pace some market is in And of predicting as And that bring quickly

Alastair Syme

on you. A of point quick the clarification Thank follow-up a just Okay. CapEx. question

you had about XXXX a about of $X budget? you Is something that billion incorporate I budget XXXX your similar acquisition capital. the in think level? Does around how think around

Darren Woods

closing, something plans, plans. of something we No. Typically, to a sight reflect don’t those, If line we’ll then when we that won’t on any a if we’re the putting together got we’ve some it of high have has of got try of chance in our – that. show think up

sight tends it So line depending vary of we have opportunities. kind to on we’re on that at the where the and of

Alastair Syme

taking you for Thank Great. questions. my

Darren Woods

you. You’re welcome. Thank

Operator

Société John Next question comes with from Générale. Herrlin the line of

John Herrlin

to with to committee? upstream going they Darren, the are reorg, entities the report Neil groups to report or all or Hi, do respect still these to new

Darren Woods

companies one new Neil moving seven that down to big three there organization, Chapman. the So benefits the we upstream to will of from presidents streamlined companies Those three. have and is report

John Herrlin

internationally upstream? guess for and the address the you one is next Could were Neil. impairments a for U.S. Then in great. me Okay, I what

Neil Hansen

Yes.

about you I America. of Gulf million half after the other asset Mexico that in as So, XXXX, as the North to related activity U.S. about a detail $XXX and tax to in half in can supplemental of – the see John, mentioned, then impairments well. related information We were there had in and unconventional

John Herrlin

Okay, I missed Thank you. that.

Neil Hansen

welcome. You’re

Operator

RBC. move Biraj Borkhataria We’ll with next to

Biraj Borkhataria

for LNG and talk then if were And Hi. you potential you. there? other a participate how Pass to taking It the again. that of then you about some options question. particularly a my with the just bit competes was Golden have, the Thanks move rationale forward little project? Qatar Could with you on to Mozambique, Thank also expansion

Darren Woods

Biraj. Thanks, Sure.

our the or versus the I’ve portfolio. but opportunities if this what how competing whole just maybe of in start the we not industry, me portfolio. decisions the on before is here look our said our make investments, and compete strategy in will, to those just we at different of within audiences have have you Let way philosophy we investment with investments

because on that how on on we additional and going with will they That’s advantages the while end is high the projects be come our that lot the capacity in those other they’re in LNG, It be the do sure emphasis projects growth in we growth the curve So and have competitive a – will chemical projects very put important as that coordinated. about on they to big of of different bring projects with make so the needed won’t see very lower necessarily high of talked be that versus the business in chunks. opportunities industry’s any fit cost on. we a just that to capacity supply industry come

So we’ll I oversupply. suspect see periods of

to the make going advantages and we’re investments period, up, our that see tightens we market lower And growth prices. to when the that have see well. are continues And sure then market as we’ll as to so there robust

Golden lot in focus on is industry. Pass, are respect the sure I With strategic value. to of got landscape the think projects really the our competitive So a making it’s of

gas attractive market continue very about supply standpoint that If gas to U.S., the in crude the see with on of comes supply quantity we to a business you the gas the some a the development, the U.S. in of marketplace, associated the available from think gas

to North lot For supply for allows then to advantage. us the a look also an our here And supply terminal facilities us then global Atlantic in a markets. we’ve opportunity got we existing leverage point an the which it as in America gives optimization of basin us with

with we’ve existing QP think here unique I do optimization of so including and with facilities. a industry the advantages we and advantages global terms work the business We’ve with optimize in integrated And that And got got to that the whole across LNG we source portfolio, ability the that and in some U.S. supply with portfolio. then the got advantages

Biraj Borkhataria

maybe moving should Would a ask a just In to both and bit? little timing, you’ve and got – we or forward. do developments follow-up? XXXX one terms you Golden very be pushed of which I Mozambique, expect XXXX, then you’re Pass quick the back concurrently Can expect FID going to to

Darren Woods

the of kind how that lots a function tell LNG to and Yes, here. strong each chase out. market, you contract seeing of availability the that that be of is plays of growth we’re demand I’ll them going will itself with the supply in

sure make as occur the on the make – so these very that And developments said think effective I be I And we’re advantages to sure we’ll before efficient we into low are projects, that going a cost cost with supply. building way. it’ll to those

so bring others And on and making are we less sure manner. about those in worried what doing a cost effective that

Biraj Borkhataria

Great. That’s you. helpful. Thank

Darren Woods

You’re welcome.

Operator

Lynch. Next Doug Bank with Leggate of of from comes America question the line Merrill

Doug Leggate

folks, again, a issue your well, know back you. as sorry but had about don’t on end I was in I to Thank so dial there Apologies, if technical that.

little wonder the First you all, could a preempt Analyst I for But reiterate on also upcoming me bit get thanks today. call if my I let on you of Darren, getting the Day.

perhaps of of at disposals target to keep or about you growth targeted the additional notionally clearly kind the intend expectations XXXX? with multiple of a Guyana. high that overall end do year for the Is less in the intention count to the and at growth or would Permian rig least more you your would guided in last accelerate the what to XX% is your scale – or above increase through is Your potential year there level

Darren Woods

laid for and the Permian resource. together. I development was a for scales into going Yes. concept all advantages Thanks, Permian we full Doug. with early that us very what to to talked I trying but have resource. really the about And last In how XTO ExxonMobil the I’ll unique the led earlier comprehensive March only very out pulls you capacity tell what conversation this not to March about leverage developing for a we’re that the with of think the has to respect

that and out we’ll talk and And approaching we’re that that there. so – March, investments I think in lay we’re the about how making

of as can more continue kind that to what efficiencies Guyana discoveries be doing, there’s itself. a opportunities already find lot will we With we have we’re we to resources production story leverage and bring continuing that on. into and roll a of see as So onto

I we’re supply. very to But that. very the have on cost and continue we’ll with So that update in if of momentum, going bring low – advantage take attractive, we again to to on efficiencies think exploration, you success of build continue

comes of is more cash now kind expectation flex to we’ve in to time our of bring got And that more optimize we’d all the fruition, we’ll more opportunity portfolio As that same that and and bring the within see at and earnings returns. a it any to make as we’re We want the capability table. that sure in in organization. but and to in keeps the way cost do not leaving stays much NPV of possible on as forward value our control kind

constant kind that’s evaluation So we’re of a and testing that doing.

some effectively we’re going that place these in new more us of I investment think help organization opportunities. putting to the advance is

are layout going forward what roll March. that all implications kind of together we’ll the and So in

Doug Leggate

reorganization. scale as focus get you the little the of follow-up, given above even just the appreciate in the Thanks. it program a to think somehow your about this list your In a I’ll larger I realize is you be. we quick you’ve the guidance typically in there. My hopefully read bit I guidance reorganization you’d or the forward that. forward? that kind leave would Should to or disposals past one, words, anticipate year disposal on accelerate I run move expect brings more? what other

Darren Woods

Doug. Thanks,

the project��s of what really the I on pipeline, business as group – their of the not think is mentioned, frontend think additional space focus and development an well I’ll degree is optimizing that got we focus going the from which that an but is upstream to call acquisition portfolio from as exploration standpoint portfolio. as only That an divestment. bring I into we’ve as

So I standpoint accelerate. would the anticipate see will from we an pace of upstream divestments

the came time, you of and step If the at of you lot back back we’ve of in the divestments downstream. in corporation the a look context seen out go it and

change up then mix level maybe in or And And will done we slightly as what the consistent go the so forward. with the we’ve past.

Doug Leggate

I Thank you guys. appreciate my questions, taking you.

Darren Woods

You bet. Thank you, Doug.

Operator

from Roger comes line question Fargo. Wells with the of Read Next

Roger Read

Darren. else everyone to like and welcome the morning call, Good

Darren Woods

Roger. Thanks,

Roger Read

looking I and last debt XX could I to you’re some maybe guess the we just to CapEx And we the adjust a probably pay talk were billion we’d little year plan this prices then about be CapEx neutral strip, but the of in to crude XX think the off year, able back more billion, if if level take level, to we’d you 'XX. be a presumably borrow debt a add a bit but was a much back 'XX. need or billion, curious for pay how dividend then what you couple understanding shareholder to whether environment just thinking not this not point on of front? in or cash just the billion at could and within I the so overall that mean distributions increased of flow just couple CapEx about you’re

Darren Woods

Sure.

about the Let just how and that. me allocation we’re kind reemphasize of – capital approaching we’ve priorities that got remind maybe

built and opportunities to several have our last our projects one opportunities. First the to And low know here really has that long-term environment. with themselves the future got years reloading be up those irrespective and in. to making consistent depletion our a intention the on, has to projects environment. value particularly investment bring that that project around way of upstream the those is to tested plans, sure those you’ve of price to we healthy of for on reason at bring looking we And pipeline business, projects got team with And pipeline sure that value the challenging management and of that robust a they’re would make projects the been the over go that and been price I things is which the side corporation you’re if attractive a foremost,

lower find ourselves benefit So in if industry, an as think in away I would falls were prices projects cost the of – as low, we were actually activity to tend you to those get construction. environment terms where that in

lot with is balance So that way that why path. that that favor. not we allow But play have to the to the with you would and the down from might prevents and of we then inefficient we adjust keep taking cycles. a reasons one positive the happen come the sheet of in to and and consistent continue business a That our on cycle. do the And capital very It up down development. things down of for also from that advantage a makes a cycle

leverage cycle, And opportunity got at investment an that the do the powder to always that to advantage opportunity down to priority capital time an important of investments, our make make enough continue CapEx all to and we’ve itself, robust support remains and if our very our strategy competitive. shareholders. has of dividend, balance a dry cost the potentially to that our making so at with like got same that’s for of we sure we’ve growing an feel sheet, been take with fund presents continued reliable cycle through acquisition lot sure structure sure And

front, – to our we the line corporation we’ve we’ve the and of ability challenged and we equation. into So on kind tell to you get buybacks have bottom that’s and results. deliver investment as ourselves our challenged effectively organization Then I’ll advantages ourselves a that on the

optimistic ourselves challenging sure we we’re there. leveraging you’ve full advantage of and the think that we’re – capital want structure changes I around what the make got by backed very also seen And structure. that to I’m very strong optimum capital on of of corporation. capacity what’s and up going investments portfolio capability and are strong That’s a that we’ve that very the

Roger Read

back part reinvest think think we historical Okay. is latter that. that that? that the terms from you in to as it cash CapEx we about of thinking more move think the follow to the about flow is in as coming go to maybe upstream comes And Thanks the or or for maybe what getting as obviously but sector, from cash or you’re probably, as Is just the about upstream returns? should dispositions the QX that supporting about you do maybe flow balance forward, the more think in and into 'XX, nothing sheet shareholder the up, how of 'XX does of we

Darren Woods

say success that not that it value fund divestment CapEx. our is that put and we out attractive a for as buyers on there we’re a progress to would in program we have extent for that order the we to waiting think transaction, I finding

not cash is program for waiting investment Our a function of to come.

to move a additional things we’re the of balance point capital is some for, of making or look come looking sure came the see again cash whether striking So the the I independent a That strength out the as in translate which decision projects capital the in said addition to I taking that would optimal that says of and as whether that debt would divestments and not about we opportunities talked investment. then hard in we’re an would into related real see, I any just buyback. as progress, to down there. expect right I made it And around in pay we’re structure at we terms that

Operator

next comes Your from Gabelman question Jason the with of Cowen. line

Jason Gabelman

guys. Hi, Yes.

of a Just questions. couple

that money Firstly there you’ve bit, already are work this is addressed the the is put the pause slowdown who’s there? with pause two, on if is somewhere a and there; you if down in question a could but pace your I there appreciate developing to have Guyana, may of to in you government I potential what’s or that you, in government, If push there that deeper. where a little a concerned that on going kind asset? investments else would ramp one, that running

Darren Woods

we’ve of the given that recognition are happening a to don’t have that constituency the have very the We one country would it you’re the there naïve with this you’re that to Frankly, nature the about there, governments political had spectrum dynamics We we’ve world. political about discussions change Again, countries extremely basically plus expect Guyana, think understand I discussions wide that governments timeframe. constituency for there. advantages coming we years given advantages and brings to time. over development when got across think that by concerns the into that’s really any be around the really for going XX stakeholders coming Guyana since in the to the only of and a those the

we approach. again, broad-based a very take So

going that we’re Guyana. to bring the I here what the the country supports to that alignment have we’ve they all in value feedback it’s think because got, we doing the recognize

not don’t happy the real given the at we’ll how We And as point. And track. So of and track, about said, remains things there. this off value I strength on think we’re obviously that. see worried it But phase develop the that I see X about coming is on investment. particularly that

Jason Gabelman

That’s very Thanks. clear.

spend your and you you just gave XXXX guidance capital on view the the and beyond going like I is look to Analyst to Secondly, Do appreciate at relative XXXX have on guidance you that provided. last a Day?

Darren Woods

I with guidance Jason, we stick XXXX. for to the gave I’m think Yes, going

the with factoring how talk better longer-term the I that kind going seeing that we’re that layout provide we’ll time think the a to into and we��re again about a consistent the opportunities seeing we’re time. prospective month’s in XXXX upgrades at timeframe, we’re plan that the of plan. And and

Jason Gabelman

a Thanks lot. right. All

Darren Woods

welcome. You’re

Operator

Jefferies. with we’ll to Gammel Jason Next, go

Jason Gammel

you now? was location just unique wider that scale, for that Rotterdam deploy curious or whether pretty the really at seems Rotterdam. be a gentlemen. hydrocracker something about will restricts there technology. in you technology deployed significant I on Thank to you first have to this margins that question relative is of able is be much, something It relates the on My very uplift to to that the kind old a to it

Darren Woods

question. the for Thanks

and Rotterdam in or what we that have, project the catalysis So catalysis. leverages is in have the that development advantages that the technology we

but technology heavy, different very based residue And and a base involve our look we’re some at the application this would molecules. use catalysts value develop of residue low ability on understanding make looking diesel catalyst stocks. conversion Obviously heavy also exist talked project products, and from That value to this so of some we’ve proprietary where leverage to catalysts. to and higher upgrading that loose Opportunities low that’s that across portfolio. Singapore may about a it unique like our value-added unique our into

of it of nature trying ourselves. that’s to reasons challenged Obviously, on the application. we’ve that feel why broader you’re – is there molecules the one depends the But we So upgrade. and

in lot that. we a ourselves long this returns. returns. get find was put industry involved a I intimacy we kind investing to above of time, because the For a going the were say We a to to weren’t that it and get with standard because us time in technology – I downstream example to great at and allowed can weren’t in industry of Rotterdam is industry of bog going force technology

I And and find example we’ll some able share optimistic. think that. of as I’m forward to move another Singapore will examples applications. hopefully additional additional be we be great pretty

Jason Gammel

LNG so, you Qatar interested the to at LNG? Look other to the in portfolio My also that. Can currently? if were rank whether question opportunities discuss forward relates in how LNG to participating you would expansion second portfolio. you have relative the that three And in the that

Darren Woods

got we presence very and Qatar. partnership long-term a Yes, in

partnership. certainly working I think a with to I look we had continue lot value It’s extend good that. that. We’ve QP. a success would of to

and value each think opportunity we’re partnership. other’s we about and aligned I how think to business the the

to that interested advancing. had. absolutely element develop portfolio, partner respect continuing into yes we’ve to in to and is low gas, you’ve as the we’re a our important LNG very and opportunities about to that projects supply cost is an Qatar. talk heard I’d discussion how in come fit would me that which and the So It with back With resources

other portfolio on in the on to is decisions in not We have basis are industry going that basis the we’re not decisions basis of only but going compete based on to at to how opportunities can’t LNG what thing we’re that of that that company We these will we frankly its investment every And portfolio, that competitive want want an from think of to we looking hurdle an wide even industry. our in advantage won’t the have. on our it don’t be what We have If investment we standpoint. portfolio. applies in it we we and does that advance looks using. the that it’s rest and opportunities find an on but doing pursue we’re industry make the what make are industry the to based versus in if has to because it this good

Jason Gammel

Thank Darren. thoughts, your appreciate I you.

Darren Woods

welcome. You’re

Operator

go Barclays. Paul next with We’ll to Cheng

Paul Cheng

Good guys. morning. Hi,

Darren Woods

Hi, Paul.

Neil Hansen

Paul. morning, Good

Paul Cheng

Neil say quarter put to Hansen that the item in identified I’d appreciate we that. to large the First, – want you on page really thank to on earning impacting the just

For couple questions. Darren, of a

that at your side on And is on the effort. the comment also about if on point? expectation reasonable reorganization that about side? the Is bid-ask of it the wide impact? you still you the meaningful have environment this may apart to you a asset on going believe can you market sales there’s ledger environment actually or other talk acquisitions what any that your accelerate if with today too the How how in First, think

Darren Woods

Thanks, Okay. Paul.

the to both acquisitions. I you think tell the definitely is is divestments on it’s going I hard improve would – have to and what we that reorganization focus sides;

is expect would to really in bid-ask difficult to your I Whether which and opportunities acceleration sides results it So acquisition anything see side or of is focus to frankly the question tell, on on additional ledger the any spread. there. on comes second that thinking both because the

to to it value For pursue to have unique to some us got an shareholders. has our acquisition bring

to too do out We’re deal there. not a me going

which the think that’s And And so on in looking unique to brings business. for there something don’t and I have portfolio I a value fits think I look driver. anybody’s standalone to to what us more the to than discount something their we key allows leverage ExxonMobil going be that think is basis. to out

and goes where that are. think to got and some I a And expectations seeing really And doesn’t there. of so how what just sellers find It’s way it’s and their finding opportunities exist are willing market bring there value are the a function them to those otherwise.

say just that us. So see and I’d stay bring to what opportunities focused we’re on very going

Paul Cheng

with how is a we digitalization your little the to may even of word really talked at to too some bit haven’t business. expert sure that have up of Is something any Second guys that try that the you Exxon, that? may actually question how can technology that that impact that surprised that. that I were all amongst much be to on think best to that. the quantification seems about your are I’m given share your business. it the the and big guys mean looking that peers much you when then some coming you But potential you quantify saving And people

Darren Woods

right. Yes, do. We you’re

at is some – We’ve high our to that. of think bring very got have peers additional at looking talked opportunity area, about of potential value. I an it may organization lot a a dedicated

think downstream I across of synergies across across our production one that have, of looking we it and comes that a advantages chemicals, the platforms, the and are There organization and manufacturing upstream. our portfolio. digital is when operations entire lot to the

grow. participate all operations the our value given our leverage fact the And probably to data to given so continues we the would and say have the think ability we that size, we our then chain, that I that best along in capacity to data is mine improve industry. And

us that We’re structures across in is do globe taking sure way what data structures to that to make digital I that comprehensive it we’re and tools allow value. a say approach would the and to methodical and to thoughtful building a leverage to

a that numbers and sharing I start us would And so it. expect important on it’s not very area. putting to

be I advantage. it’s It’s It’s keep one think to us an advantage. in-house. for going a we’ll competitive

Paul Cheng

see. right, you. good. I Thank All very

Darren Woods

You’re welcome.

Neil Hansen

I think we have question. time for one more

Operator

Pavel from question Molchanov last our James. take We’ll Raymond with

Pavel Molchanov

squeezing for guys. me in, Thanks

question one me. Just for

total year down versus double-digit we to a issues the Groningen XX% alluded at well-known look gas be European at the You’ve regulatory field, if but your volumes there when Groningen close decline. we to would even ago, a exclude

the North explains Sea Groningen? outside your what So declines of in continual gas

Darren Woods

Norway going our divested and and impact that, as to to depending gas on business play and weather of and it then production have we into and a very top material is well. that’s year last temperatures seeing so Well, seasonal you’re that’s that’s there. probably demand on gas obviously going what And

Pavel Molchanov

Wasn’t kind of winter Europe? a though in Okay. this cold

Darren Woods

look you Not it’s look previous, no. to compared at not if – you if

Pavel Molchanov

Okay. Thank guys. you,

Darren Woods

Thank you, You’re Pavel. welcome.

Neil Hansen

liquids appreciate that your your and your the cash New supported opportunity you by day. Xth Great. year integrated appreciate at our Again, our hope forward full in rest March time Day to today questions allowing our from capture everyone value for strong and enjoy flow and included business seeing model. York. Thank We the look we fourth you thoughtful this you. performance earnings and highlight growth you us interest continued morning. quarter Investor and We on of to Thank

Operator

today’s conclude conference. again does for That thank participation. everyone We their

Exxon Mobil (XOM) 1 Feb 192018 Q4 Earnings call transcript