XOM - Earnings call 3 2022 | Exxon Mobil Corporation

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good day, everyone, and welcome to this Exxon Mobil Corporation Third Quarter 2022 Earnings Call. Today's call is being recorded. At this time, I'd like to turn the call over to Vice President of Investor Relations, Ms. Jennifer Driscoll. Please go ahead, ma'am.

Jennifer Driscoll

everyone. morning, Good our new joining earnings today call Thanks of third X:XX our time a.m. at for quarter Central. I'm Jennifer Driscoll, Vice President, Investor Relations.

Joining Vice Financial Chairman Kathy me and Chief Executive Woods, are Officer; Mikells, President Officer. Senior Chief and Darren and

questions This more Shortly, are Relations on we release Time. the the before available few provide will presentation. our time brief live allows our and the prerecorded website. slides X:XX reference prerecorded a presentation, at of and a.m. news remarks section for Darren Investor us opening This conclude comments from Central

subject we'll risks to During forward-looking on the presentation, make cautionary our uncertainties. statements, Slide you which encourage are to We X. statement and read

and provided earnings slides. For the and Form to that our XX-Ks apply please supplemental end Please of most additional the these we note, information recent information XX-Qs. risks at also uncertainties refer on comments, to our

Now Slide to please turn to Darren. and I'll over it turn X,

Darren Woods

everyone. morning, Good Jennifer. Thanks,

highlights, and by Before begin covering to ExxonMobil. earnings of I women our want men the recognizing

company While helped this this by pulled the is commitment of demands of to position our work slowdown, and uncertainty long-term Where because moved each in and hard for few and success see retreating the quarter's in years. of and face fact market, and position invest past in the results others we're people businesses. a over forward, today of help favorable retrenching, a to we back were this our continuing the historic build meet the clearly company

our a we together thoughtful in today role this role commitment. its the do while we are our market energy work and and in the because deep heart proud energy And products needs the is how results I and the important know energy confident culture. report the way at meeting a of leading a and determined our been clearly world's it team, in it. world to We in mission part the is company that We play mentioned as the our providing incredibly understand of We reflect and has needs. transition. factor,

quarter Higher strong Overall, third improvement. cost margins our our drove earnings refining refinery I'm control and pleased and gas with natural rigorous financial throughput, realizations, operational robust results.

production and increase contributed flow stronger of balance growth, to needs and consumers, creation. continue which address to to the cash We sheet significant value earnings a

across Our reflected who operate teams results high work facilities rates. our our reliably the also of outstanding the utilization at world

progress. Let our me few highlight a examples of

which progress And quarter throughput responding first its Energy to continue Products. since make overall per day refinery we level quarterly First, We on highest XXX,XXX capacity market tight Beaumont to the refinery the boosted conditions. XXXX, in by to expansion, about XXXX. barrels increase of will

Permian We production the also from Guyana. our in and high-return increased assets

strong grew exceeding production per building the day per our X Phase We reached oil production both with Our nearly barrels design on Liza equivalent from Permian in year. during day, third to capacity. and Guyana our last in XXX,XXX the X, Basin growth XXX,XXX barrels quarter,

Coral South quarter. LNG this Mozambique's LNG contributing amid was We additional floating also exploration growing success demand in X had Earlier achieved globally. with supply month, for discoveries development, new first production LNG the from continued

We per barrels year. production equivalent the million continue expect for X.X to upstream of day oil total

meet $XX investments, generating our longer per Upstream XX% production our remain than to we low-cost with at Looking track term, barrel. grow more of on and plan, XX% over XXXX returns

up capture customer our announcing million consumers cost, per business contract its largest COX. to position, to of recent one increase by store and our generates improves of X signed Our its low demonstrated year and benefits meaningful metric releases, and fund that competitive of press reducing first solutions carbon while ability the production to tons our capital kind, to investments,

supporting we're It's attractive low-carbon important also developing emissions. developing about of in other companies in greenhouse We progress December our milestone look solutions their an business. in plan more to newest our forward our good reducing sharing discussions. marks in business This how as a corporate gas of example part

portfolio, the California manage sales and of Aera concentrate noncore our divestments actively we today's our the to operations on announcing higher-value for These Proceeds in value to in enable in price completed totaled production interest $X our oil sale our us Montana. in incremental Billings, higher year-to-date captured advantaged assets billion continue environment. as assets. We from refinery these

the operator. our month and role our this impairment In that and Sakhalin-X government stated interest Finally, time. have approximately operator at of as to intention terminated the a $X.X took you the billion we may to decrees, exit project Sakhalin-X March, the Russian unilaterally has Russian with an heard in earlier X transferred ExxonMobil's discontinue project and

affiliate due parties. exit impact While of to force engage benefit unprecedented Russian discussions global smooth the we and effect of attempt continue majeure with sanctions, all make our to in to in faith to the all Sakhalin-X was the partners a to good every government

been the protect has the along integrity environment all priority of and to facility. the at operations Our employees,

most recent material the it proud agreement While us government exit. interrupted production not by takeover. with anticipate of not costs exit do our established they new did led associated recent the the and decrees any significant the Russia prevent process safely since winding from challenge employees our We're of in our and our XXXX, achievements we We sharing operations. the many including down the rights violate were working,

levels higher experiencing This crude prices rose our in quarter, supply as most supply about build Russian the business. quarter, industry the illustrates the within is of In variability concerns of winter. slightly withdrawal in to the relevant the next well third the as range inventory ahead upper efforts exceeded of gas markets to the end Europe third reflecting record moved to back demand. prices Natural slide across the as XX-year

historical moderated, remain XX-year they recently prices gas above well natural While the range.

of due the to diesel. for and inventory gas from range by high XX-year inflated summer in refinery higher Higher concerns. about demand resulting driven Refining natural demand and above crack runs increased prices by well flat remained spreads, diesel for gasoline U.S., demand In the cooling margins XX%, chemical fell expensive and margins below parity In U.S. logistics pricing from with in America demand as the softened, declining regional global relaxed. range, and the moving second global refining weakening resulted bottom have the in reflecting Margins to closer the margins demand. constraints Europe global and North XX-year contrast, quarter.

Asia and Pacific remained suppress our strong as improved challenges, continue restrictions another business on delivered solid quarter COVID to cost demand in bottom-of-cycle China. mix, control. conditions these reliability good product Despite chemical in products

make point, shifted businesses. across the can you different X chart, value important this leaving I portfolio. quarters just how the want our has With shown, other Before the one to diversified of a very value see

has volatile various margins in portfolio businesses. the during us diversified prices served well Our and swings across the

of term, As system investments value in outperforming a horizon. advantaged longer near competition the an in very broad Solutions an businesses, our much the including Carbon will path, Low our the even more in play along in evolves portfolio and business time energy important capturing uncertain role across

takeaways quarter. Before I turn it over our to on Jennifer, recap the let key me

We bolstered more and drove continue and that than products additional efficiencies sustainable declines. offset our growth, progress resulted refining structural cost This strong higher solutions created and deliver earnings everyone control throughput has in by investments, which advantaged to needs. margin the energy

Guyana industry-leading our in strengthen continued and production assets the our We've and portfolio from Permian. high-return to increased

a this of store year metric up of business. growth solutions indication is tons in earlier largest-of-its-kind to low have and opportunity our addition, per month, capture carbon a X This COX. strong customer we this business to million signed new the In contract

and Upstream our We've sales affiliate continued portfolio, Upstream of also Aera actively Romanian the manage and closing Billings our the Canada. and XTO to announcing refinery divestments Energy

invest Our value-accretive of balance attractive in businesses to sheet shareholder projects robust foundation and drive diversified returns the portfolio through a advantaged strong cycle. and provide

earnings In short strengthen Longer Thank versus we're needs aggregate, a future. short, XXXX. our growing zero critical energy structural improvements advantages, reduce that greenhouse delivering leading is delivering work gas society's by and you. modern in today a emissions the and cash for our and In doing we very products, flow term, profitably are net meet industry XXXX toward market. double products

Jennifer Driscoll

you, Darren. Thank

our annual corporate Q&A Update by our Corporate X Thursday, I'll Please I to calendar a.m. Before plan. session, for important of share Plan all. your share scheduled to the Kathy at Mikells have for where we Time, Standard X mark be our with start details Central you X:XX announcements December joined

our Additionally, Solutions Climate keep an out XXXX Advancing report. please eye for

expect in to publish mid-December. online it We

you, Now begin our we'll with to session. that, Katie. Q&A back [Operator I'll turn it Instructions]

Operator

We will take Stanley. Morgan from our Instructions] first Devin [Operator McDermott with question

Devin McDermott

But business, you I mix about So was Downstream bit volume they there. if were in of more very strong here. drivers results and this detail quarter throughput, wondering you out a factors of the in some the as little talk could some the called and

Russian could of China crew, picture we demand, I more a lot next of as moving reopening, little was talk well. just EU in to embargo bit the if outlook and more refining the you there's a into then at name the a drives, year head for wondering SPR moment few. And broadly, just macro about your as pieces

Kathryn Mikells

Sure. the first you maybe I Why give take question macro. the and don't

if saw. led strong business, the really quarter. our That our it from a look So by was you we at energy was increases overall obviously, products perspective, really, volume

since on So throughput had across we had we best seen that had record North We in the globe, the American throughput. XXXX. results

the bridge kind that so quarter-to-quarter, at results as a of of worth if billion And products. in energy you improvement almost earnings terms in $X driver the look happened was what for big

the at XX-year quarter. look were at the the then still softer in is pressure margins, U.S. what's on they strong. margins, would in to They driven lower-than-usual to you specifically due those remain well If margins gasoline summer by downward average in Diesel in what continuing softened demand margins be demand, obviously, be. If we look above going really

saw favorable quarter. of offsets that on it. specifically, our open we it, really can crude that some impacts. pricing driven of of saw, kind runs. We was million mark-to-market pressure worth of in favorable at worth the That separate use to quarter. And impact then portfolio, derivative the so ensure offsets you if timing-driven see the was some We ratable by in separate on this, favorable margin. try you $XXX Other some that to positive million about about look was refinery we derivatives saw that to we timing price $XXX impacts we Part were impact that just had

addition if good quarter. the softening about saw offsets on to so delivered positive billion side, in job we to refining very strong price in benefits other you a those for benefits margins. timing of saw the We aromatics margins, And earnings management, put revenue there. the outside that did $X we So we in

business. I overall, that. in would and the That's embedded chain right, benefits on then really And say, logistics base both and trading optimization, through procurement supply top end-to-end, of

see over out if accrue But benefits And quarter. benefits every the ratable so business. look always They're clearly of you not those we to expect those areas. time, to

Darren Woods

couple of what Kathy on a maybe I'd Devin, And points top Yes. just add, just explained. of

that If gate from looking value using think in coming in chain being back, to XXXX, business you'll and value And much value we, recall you integral the robust Kathy our optimization an has make with to came step in to crude say all work that doing at in optimize the industry optimize has the up of chain part been we're what that doorstep. mentioned the concept really a way resulted delivered which organization step. that customers' the to would and continues that products chain value, Downstream I is. has the than trading, become I additional the average more

facilities that that refineries then we demand has sure finally be add evolving to our a work Downstream and of And lot in those our robust to making an landscape. would going been are positioning I into

think if sites we us and fast-growing lubricants a investing integrated are so industry. structural that have versus business. gives in clean for we it's that broader at fuels And chemicals, where you And look advantage refining,

always This has thin been and has margin business. a been

a this in last refining again quarter of you drop typically look advantage which you decline. long for shows over has of take capacity. quarter been time, that West, in scratch a that thin highs. time very thin if refining We result capacity And chart low certainly some showed And and the as business, the lasts so a margin then periods, the through that and actually on of the

some windfall are look the at margins. of that Europe, additional you on that's going talked to If being about taxes put within pressure refining

scenario in the side And build out capacity East, a we says gets time certainly the see to on refining, tight of see how markets Middle that depending is that we equation and continue for to we much the see there continue there some come. out under-investment to capacity built market. of coming So then could out the

hope very and Of for the then thin course, plan we for conditions best. don't that. plan We margins for and tough

Operator

Wai with Jeanine our question We next Barclays. will take from

Jeanine Wai

our For and here, returns. balance question cash sheet only question, it's on the habit bad and

target at now cited to believe, level range. $XX $XX So below to which Cash $XX I at is that the now over the top cap time. want billion billion, maintain that is end I the is debt billion you of, just to gross you before guess

I guess the the on buyback? are what So trajectory of implications the

viewing really being and the you bump buyback sooner rather a given mechanical just are morning increases, there how synergies was more trade-off the just potentially And dividend on nice between dividend. than the then dividend and to the aggressive of announced this later, accelerating

Kathryn Mikells

Sure.

you've execute first seen what's our And So executing for we're We got critical. to of been a consistency opportunities. well acquisition a It's business. capital good We've look I'd that. in investing market business divestitures recently area. to for consistent in that continue we're really number that to the pretty We're and is continue to all, disciplined that more make a say priorities us activity. looking allocation against pretty and of be accretive obviously sure in long-cycle

the We then we're right. and we've firepower that for next that to that operate need and on really focused balance focused flexibility And all through we're that be to cycles we trying with our on are us prepared also get balance got sharing really that really shareholders. We're success sheet downturn. the gives the ensuring ensuring fortress a

to You of share billion obviously the will $XX quarterly that our by referenced fourth be program $XX reflected -- the We're the we in billion up quarter coming process shortly. up through increased a $X.XX, dividend XXXX. repurchase dividend that here executing so fact in

billion We if billion across and repurchases. done the did to quarter. And of put $XX get year. program the that share dividends that track in of us are you in by billion year, We $XX billion the share repurchases on $XX.X $XX at the end would about about look third in through

cash a shareholders. both pretty think returning balanced terms I say us puts And to our in pretty of to ahead I'd excess peers So well return that of shareholders.

the of are balance now, cash what quarter we about our our cash is market mindful with we that is to So ended going a continuing the to our on bit there We $XX continue Board like. the share continues conversations It to about right will billion. just balance. program. up plan. little our at float environment look And we're execute repurchase depending from But possible

Operator

of We Leggate from next question will America. take Doug our Bank with

Douglas Leggate

ask picture on issue. I Darren, wonder a kind you opine if big just I to of could

only of You, not relating the well I -- and might results think, I of number morning mean be your met your peers think happy a recently with administration are probably to the things. presented not with morning? a administration. you the I Downstream folks the share of like you by of this number things export Can strong legislators bans how about given thoughts products, nature, on that had be any risks least some this was things around profitability your

Darren Woods

the the very and go U.S. with me, the peers respect think, Yes. the here in policy. governments of pass being of been mechanics different administrations I'm explicit, in I going would to Doug, around implications our along it considered. are I the We've where to to works going fundamentals predict and are how on with probably or trying the the some and of for what many industry policies industry to say

some will political it that Those a will what I they the out consequences. may problem, would of, about, that it's think, equation say windfall question in in versus would say significant balance I those tax. fundamentals. bans negative carry short profit it people And but talking carry are of I long-term how the just a political solve heard I've policies the particular, the term, And all export

policy the like the personally, I would whatever an company, position say feel because me, find, comes we're footprint, positioned. I the for a be competitively we well ourselves what that disadvantage to would of disadvantage, our of with diversification, within because down it think is ability industry. road. our Obviously, I would For But to

is And our are the considered. consequences what some of potential of focus policies people sure really understand so these making being

of which the is policies working needed, that's many sure root the energy. recall in products in around or the the Unfortunately, the the staying anticipated, function we basically making of past. here required, in in issue very that cause U.S. is people and under-investing. parallel I a sure that back when cause. today with here when the the some and were that and the high prices the that We And the narrative you'll around make in recognize we think we been focused And then where market affordable to world industry reliable of root floated point pain made on the all that that, XXXX, obviously, get is we're have

investments that lean spend to answer. into be industry, at rest would came, than continue we in We so a to higher of the call the when to the rate there

And investments quarter I focus with third both a reliability growing business Beaumont that. think the in then in on Downstream production the our Upstream real production, refining are our results are the in off. and We've you've expansion seen grown paying high in is and here exactly throughput. the and and Those

And that, us of our can within we longer what for to that's available term, constituents that good so we're business. and are the investments making keep today. boundaries And we good trying for the the to doing then administration's what's reiterate we

Operator

take We'll from Mehta Neil with question our next Goldman Sachs.

Neil Mehta

how perspective said carbon consolidation your around love the M&A into over you and chemicals be refining of business that size you've would as to but time see specifically, the want consolidation go-forward that and also the I upstream business. to grow low just you fitting on Darren, framework that and

Darren Woods

what And this you've which working. are we space divestment here, a Obviously, and several opportunities in and market, took is out is you about would the our low, time likewise, that conditions would favor talked for we've look looking us space thinking we're doing. seen tell bit. that that market strategy, acquisitions That's our for of you've sell execute program, years divestment but as and the waiting that's the last constantly patient, as seen Sure. M&A high. a constantly transacting us sellers. kind Neil, what And something We over the we at to as and develop about buy years laid were over that you I we whole know, it. quite

can and to so our we transaction. up, I would value unique business where in very it opportunities synergy selective we'll and traditional we're say, we'll advantage at that find so evaluating And when that that. to time, competitive the that. bring think got are but we've see favorable a some will show and we clear do with a clear the conditions market But And develop those doing I for strategic be around looking

Low put of immature market. think of Solutions, Carbon sounds in the M&A. in longer term, is just But the that very I On a I concept the would terms good context this

there aren't established there lot of successful that what be so it are in And to this a takes -- businesses have space. today out

think regulation, we policy that's complicated in required plays an investment, equation connecting a one strengths. what's to fortunately, a think terms and of If brand-new different industry you from of that our chain, scratch starting about all pieces value and the

with And it's chain announced up to that's that planet, our that it value really And that in generates it's the Industries, the good recent value for of good with we for us successfully accretive of a deal come demonstrated element putting shareholders. the of each complexity together profits. for terms deal CF and

we we bring would we'll don't develops. they see in over when leverage into M&A we'll that the then I portfolio may, uniquely to time, space, that. the opportunities those make know do sense how think so can much I see that And how and

Operator

from ISI. next our question Richardson take We'll with Evercore Stephen

Stephen Richardson

kind announced side Industries to passed. I all probably comes Darren, happen IRA what you the was kind talk could was projects and to could I on the the disclosure this of more of you the along? to also, that appreciate abatement policy after CF about about you improve around needs no wondering curve surprise that move if But shortly talk project. as it -- anybody

projects, remarks, be? about then versus prepared local that And could then some and Upstream should just projects? -- or also you the address that still there's the do those might level, hurdles you some these permitting of where with if I And some you finally, and think mentioned in of of returns. the Downstream the state and at see investors available returns How policy conventional considering that the more think risks kind on around level

Darren Woods

the that. with around the first Sure. of made Yes, maybe to you timing start point

While new being there, work policy. value certainly, to project enhanced deal before that say been that policy, with and existing that worked would proposition that, well with and contributed the I IRA obviously. was the would the the It's

respect and be COX the terms COX, And challenges concentration step. expensive the the The essentially COX opens about would of say economic the And just avoided. sequester with the really associated aperture does, variables COX. captured that important what with I the you more be to dilute capture of cost if IRA would in projects that stream, to effectively the think what in the that capturing it more or can

so opportunity to capture up diluted to there. IRA more the -- diluted stream, And more economically you that more catch space need opens and so so greater you pursue incentives streams, more the allows to

the to cost moving is COX of transportation distance Another variable sequestration. And the that. important really to

hydrogen are there's additional from And with the capture. space. incentives storage IRA are you and higher that the air again, so the the for helps some the those, from sites, incentives away cost. And for then direct the further sources obviously, And

and emissions So to But I achieve driving cost help. of to ultimate say be to in zero, the to capture going you're that net a lot higher. need the diluted are things also down to a streams will think directionally, those would going lot objective I

incentives very has we've to COX this that, through to and we're market find or laid out. economic else be for to where for policy. With developing forces markets at stages additional And additional project the so early got we're have the incentives what it going whether happen, to of respect obviously,

be got got get a to but We've the path We've COX. We on put to the have permits storing forward some to for lot pipeline. a done. extensions there's

we regulatory and of take taking to project working the equivalent So with it XXX,XXX off government permitting we get cars that we that make can start road. reducing that so have the -- It's the and sure to there's the effectively those to online we're can that other do expedite steps emissions. the government

So in fairly it's a significant of and project itself.

or From we've say the a return out that player to that And to to is, marginal this the COX what biofuels will that I that the capture higher competitive and before, portfolio bring make insisting there competitively hydrogen, projects work rest store being positioned here standpoint, portfolio. we return. our talked that we the in are sure ourselves had and for versus develop that leverage a into the about or we we would do we're our required drive and incentives thinking of the advantages whatever industry

would returns. the thing Carbon looking we us in drive that size an makes business good set. his that exactly unique is are And where reducing there we while and that's project something more portfolio, And Low therefore, And competitive the about like out above-industry is example we're And pretty doing that's to bring that, Dan Solutions CF for that feel bear I what is there. the an of that doing in can accretive our Industries opportunities opportunity say money COX. and opportunities of average

Operator

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

Sam Margolin

but changed Would or then the because your demand as of huge the very imperative. And storage contractual summer the the those I which characterize about a high market realizations, in optimization-driven? more you driver think gas little are this a is has because gas on of seasonality a bit has is Europe now question an My quarter. addendum,

that you prerogatives structural in within and a we're the U.S. it And a to your LNG or market if going for be the change to as even so if exporting gas gas lot. wonder I on the global chain because see anything means investment

that's So question. the

Kathryn Mikells

we at strong we fine. that's tends if portfolio overall you has an crude-related be a jump Darren if results, XX% our The can to anything. that's with gas look saw LNG in, Yes, lag. but tied he LNG. X- and realizations, gas, XX% X-month Overall, prices add to to have I'll

of seeing that the kind coming benefit now So quarter. lag the that through through in came our results, we're really and of

a has Europe, a inventory demand seeing the really market. saw from winter. driven obviously of you're building of and building that the of ahead prices inventory tight in Overall, perspective, We in how Europe,

we market would on online. say until so there's and can continue that only isn't does tight and demand supply, that to more to or demand there's time bring comes be in right, take supply a X especially spigot going either And just structurally, supply to ways be LNG of supply reduced equilibrium, a that into overnight. is something turned It happen, that

Pass, first which coming going XXXX. have LNG The Recently, got We gas responding obviously is we've projects bringing reaching obviously that that. to be mentioned market Golden is are to project more online online. Darren Mozambique, in production. Coral the

that capacity time. but to the more have investments online, So responding industry, we to take bring some it is this, and will going is obviously,

built we're of inventories market happening what or say terms always in and being in as we mindful So I'd look that being near-term means seasonality, are and terms when that of drawn inventories of at conditions. what's

keep eye on. And an it's we something so always

Darren Woods

Yes, I Sam. add, would just

back a think which show to So where markets. we're when up once stable of more of we out, seasonality of is seasonality, you've frankly, balanced back see more get some couple we're in get years lost I X position, of therefore, again that that we once we'll kind to period start in -- through inventories, a that this supply building short and we're

and hydrogen But and of economies energy gas term, as role one big Longer some address emissions term, our with will view generation the on gas benefits has ammonia always can been used quite go gas be we into for time. power for and And that's a system longer out and along critical coal. initially, world going to play it continue to capture. today. transitions, carbon That's the of back

is so COX. address And going to role a think even lower you into emissions fuels important what I can gas emissions would say, -- -- the And find move that. can an in and low play you I

So I projects going to for the there's need some portfolio we think that we're changed time. that developed fundamental sure there. a that on view for natural focused make of that We're be gas to of hasn't to positioning left-hand of that ourselves gas going quite really our can envision bring sure making competitive to on the we continue scenario under we're on be curve. supply cost any out scenario, the price And side

So really about. thinking hasn't That that's frankly. how we're changed,

Operator

question our from Cowen. Gabelman with Jason next We'll take

Jason Gabelman

I you earnings do, before to XQ clarification earnings. you've ask raise couple the question, used years, I quick past dividend with one think, done just Maybe my the with is which XQ of

just a or that of that? on is So any comments shift timing

then the Chemicals And question just my is outlook. on

you there weakening in been mentioned, has some As market. the

how tighter? the Just market additional X see in wondering you to will or XX broadly months, coming demand supply next weakness online, -- get additional things evolving supply that

Kathryn Mikells

the raised have Yes, would at We the year. I'll the take quick on question same the dividend time dividend. last

is We are consumers, on it having on XX% the and look are over dividend people focused in shareholders mention know in don't One obviously year timing when We this point annual had over of this know is of terms We're roughly specific I of increase. where focused a to important the would But competitive, dividend the determined we the dividend. decision. time. shareholders is at it of year any we make growing an our a sustainable, given things XXth have consecutive we've much time. those we and very how

Darren Woods

Yes. On the the We're in we third continuing saw demand, very is China. about COVID as impacts consequence lockdowns of COVID China. just softer a as have that in some of really aware of mentioned, that Chemicals, quarter, talked to you

kind Now they margins of that balance in recovers moving It's what time. we big well back that's move just be and current supply-demand how how their periods in of out lockdown happening China of going from and out again. these a get activity see and economic going to determinant can quickly of

historical. I economic dominates they're China, that obviously, Europe, as out are the in some think into move of and which demand think is more than be to U.S. you going I the outside -- Europe, west of facing, activity challenges have much energy Asia slower with move obviously, would and

expect from to some see impacts demand I there. So coming

just And I in more kind -- then as of U.S., it the uncertainty. would characterize just say I it's would

our the I there's by so quarter that we about going, And for was eventualities draw positioning sure that they is typically making inventory are where in softness uncertainty third future we saw themselves themselves think and for downside. some when of the of for potential that many customers. covering see driven

of to So activity, inventories short the plays how quite down see I then a have a function we obviously. it's We'll coming tough out. see term, term, But the think bit. longer will quarter it tell. in economic And certainly, to be fourth

Kathryn Mikells

look-forward just coming quarter, terms I'd then of certainly that's other our that on industry And we thing we some see in on mention, in expectations. just one supply commented and the fourth

Operator

Borkhataria our next from with Biraj take Capital question We'll RBC Markets.

Biraj Borkhataria

in well you I performing are portfolio on your what are LNG because Guinea are and also. contracts sold just asked extremely the clarify again. what about a to proportion basis? of under long-term The your ask Papua Could Gorgon assets wanted reason spot LNG Qatar, sales New is proportion and I

if has wondered allowed just some cargo. incremental you I spot to sell So that

is contract? So what under proportion long-term

a in, least the in there It slightly to light could change in. at kind had a has terms guidance to second And one been of if relative looks XXXX what Permian growth? I of I sneak production

I has was there. changed wondering anything So if

Kathryn Mikells

the would typically we're our kind of because it's I benefit So our contract be is X about the made those -- of lag lagged and pricing but long-term under commentary is volumes X months. seeing the timing portfolio, tied crude, in LNG of the contracts had are to to XX%

through that So seeing coming we're realizations. our benefit now

Darren Woods

of the the on say the optimizing challenges the make sure most to some through we've recovery cost-advantaged about development we technology and bear case. that, go sure bringing that that to we're of that That to Obviously, I make talked we're that is as years, in what we adjusting hard is way. the one been the would doing of before think continues working plans. be our over resource. I we're are doing to And Permian, maximizing there we've really the Yes.

up on So up growth, XX% was come this last which at I year, the about expect we'll from in probably year year's XX% before.

very Permian. So in solid still the growth

to the production. year about beginning And that we if basically the the on talked at broadly, more expect of we look objectives overall meet you

for XXX,XXX the of look If you the and fact year in price beginning about talked we're the environment. year had the really what all at at this that driven by end delta barrels total of and price a there is up, about we'll higher we production day where entitlements much

very Permian we well We've above So Guyana the we're at seeing across feel record with those both very, boats and the production production of running talked performing capacity. pretty good in about about obviously is that the the portfolio. growth

Operator

Syme question next our Citi. with take We'll Alastair from

Alastair Syme

the question sort the Kathy, first at come of waterfall your you've products. today, I if a back to half you headwind seen industry close billion. that $X of back very think, that. to would that can really suggested of go And be I of And energy -- almost we on margins quarter, the suggests the the X-K only

industry I the being just recall don't a indicator I as ever between I understand, your big to and realized So margins want there new margins. mean, difference and margins

allowing think does that's about what to degree? that you you at So the portfolio exceed do a such it

Kathryn Mikells

impact our And up kind I'd in the the we that right came range refining X-K. of for middle provided in Yes. the straight say, from, of margins

margins, And trading management. overall margins which profit seeing a and chain we're revenue benefits. so supply would efficiency, and beyond then I include refining beyond end-to-end positive that, And mentioned optimization aromatics

that's look And to basically of volatility been during so moving at there's if energy seen say, the price in the I'd been a what you we've products, tagged environment. lot quarter-to-quarter, year,

would information be to we that say, quarter, at on timing year-to-date, stuff time, look longer that normalized. If price expect then looks, over it give I but a you we occurred would you things were to that neutral. say, pretty of over period in And the time, try pretty

specifically we ensure that ratable And time, that basically so derivatives I mentioned have, to program Over be use refinery to we that the run. crude neutral. we'd expect of pricing

$XXX impact quarter. have that seen would the price about in impacts favorable a million the for was that, timing You

say trading and we're supply how through optimization results come goes what chain on overall in of ratably terms quarter. every I So our would doesn't around our footprint, physical

the was obviously through. look a time, quarter, if business This benefit clearly period of you it But in shows over long embedded at that stronger. it that's a lot

Alastair Syme

be going that expect think in industry to forward closer you to you margin? would X-K, Do the

Kathryn Mikells

trading the Obviously, and portfolio big It's the our had in as what really say, say the high is, at get you looked positive what wouldn't X-K had because I'd out I'd we that incredibly our utilization. something the volume we overall going environment also business, that was reflected fourth price throughput to factor benefits quarter. depend in comes of from the

to it's is be put price try profit tell billion about then the you I would the unfolds start what -- fourth the you if products, market we $X quarter. to going in the what side, to and impacts how the So timing at energy in about in

Darren Woods

We with trading to to comes ratable. add bucket will less Kathy within what this the market on chain just And that would the in hard looking management in the extent price time, then happens as And I that the we're environment this margin that upon factors improve forward depending the accounting really with that X-K Yes. at around And entire was the revenue that through booking that saw in. mentioned the quarter. and to business, we're that that move optimization as trading. are. move moves through we then and working value rules than as across that

Operator

question We'll Royall take with our JPMorgan. from John next

John Royall

you of talk a impacted I you believe has there in Most of could couple are impact mine of were about the strikes the up. when you meaningful And now expect results we Where France. asked, Downstream? status that maybe that just do but facilities refinery those had for I if were know on facilities? your a actually it XQ you ramping with full? do them back And back are in think

Darren Woods

and so some the agreement those workers those -- bring strike, ago hydrocarbon. The reached with and When basically an through the going to we've those got refineries process. are free time of back down units we start-up Yes. refineries them

a so thorough the the hydrocarbon. of And fairly that's -- hydrocarbon clearing out process cleaning

back So sure to fairly to up those a make do when back go rigorous those bring we we up, that process of safely. starting it's

meaningful to back organization again. the things the to mean, comes it on. capacity obviously, time is impact. raises that industry. That's within prices overall the have up working So a it I takes market offline some ramp any in I wouldn't short, that's a expect what

mitigation are so will up refineries there's think And -- net-net, probably to our there other and running. respect with that I that some

frankly. the So in I don't think we'll see results, that

Operator

our take next Todd question Piper from Ryan with We'll Sandler.

Ryan Todd

constraints levels your board, have bit say, been least providers. and I expectations the of would could The XXXX, Maybe in across follow partially little U.S. activity across for supply if I there. up the on Permian a service falling at because growth probably

to look the or terms how on your the increase much that? activity ability And you around that your the your to Permian stepping there towards up you achieve do there supports So if levels As part do market to accelerate you XXXX of based ability or further? it, kind how program? see move program? in much in into is the of program, even market activity appetite interest how anticipate And is tight

Darren Woods

generally, you good Yes, bring I the of different required on there's capacity I steps are a look tight. lot think production. sure. The -- Well, industry ones. is point the market additional make you the think And as not to across

with different will think, will, So I industry, I obviously, loosen a But the degrees speaking, freedom think little for generally time have of tight. that constrained. is that it's in Obviously, company bit. That up every space.

very there, of high some prices. say just the have staying that freedom returns philosophy in low at that degrees grounded I We we of investments making our would sure make but we're firmly generate

even stay the so We're you capital is that And making that's definition has down sure advantaged that. good cycle. money and going spend of grounded returns to in discipline the discipline in my capital generates -- --

price irrespective happy wide of what the to, first that anything and do prices robust to of a that meet so environments, we on window. we're foremost, criteria, the has seeing And range be it's we'd that that margin out and

frankly, capacity some and We've that, do to space. got

obviously, anticipated bring we range, money CapEx that of gave the on where only if the margin, that across can spend not at I movement you X over look an next. within to we've opportunity we see But kind So the wouldn't will, we the the to years, year, but year say ourselves range from -- of that provided -- on. to

pretty provided, And ranges. you still more that with are forward time get takes good with plans endorsed December -- will the month. feel next will spend that And plan through that those she that ranges in when terms so we've Board of Kathy we about in the we our consistent talking very going the

Operator

We'll question with from take Paul Scotiabank. Cheng our next

Paul Cheng

think your product, Just compared U.S. a companies, a talked about curious Chevron approach ] to Exxon Historically, take conservative and tends the I actually and result. that European trading you I customers. contributor to trading [ the the in to record is don't major more as such

are change trading, just forward? So just we somewhat Or having strategy seeing we unique trading big in a referring contribution when the company making that a this that kind to what trading talking we're about is of going and a the circumstance curious, is quarter? are this that

Darren Woods

think our say on Yes. I to talked combined about when looking when organization the refining marketing value But organization the value the start to and much chain is, at with I Paul, years fuels I'll to add, back. touch her we more Kathy's optimizing we got a constructs, on the anything relevant that, that became and trading if chain, would value our -- along we in channel this let with optimization. jump moved all respect I'll ago we and were what some organization

the of tool about as XXXX, Downstream that element to crude. our an the at to and be And act an Solutions we specifically, as part assets. Upstream there so Product And more all optimization trading important and change that back trading. approach you to business may more recall, asset-backed made continues of well the business, talked our the to in time, the invest optimize, decision along so of we And in to as

And and time continues to so organization that with that grown function. optimization has perform

that within noisy embedded of is you way value the can with is, it within you the very made, And point look you're see you businesses. businesses. I seeing that I Kathy particular, think the which quarter, And embedded those be the term, for can kind trading, what of this quarter-on-quarter. account would if kind say, longer in that is

through is trading, So an obviously, asset-backed the having therefore, we And through the assets that don't having activities value the strategy. the break trading all trade -- it and out under that, just product obviously, that to running and that through reliably, but the arbitrages refineries our is it create because also support value. derived

equation I with This look say, meaningful prices the value that to in in bigger as you a chunk the But our is the just saw way contributor quarter it quarter. we of would that moved, the booked Downstream time, a it at value over chain.

Kathryn Mikells

we be the also thing you tell neutral. to to over Yes. we And trying then only that is that add expect to are would that there's time, I some impacts

crude the that ensure ratable pricing derivatives our runs in So fact we use quarter. to sometimes going refinery a of that's give positive to a us

neutral. us the time, Sometimes a in negative Over to be give should that's quarter. it going

Darren Woods

that That's timing. why break we've price with the out tried to

Paul Cheng

you the had trading curious with strong contributed And that That's just Kathy, gas that? also to that do nothing to record? great. that utilization price Or natural the

Kathryn Mikells

also have trading within would be our Upstream that we We business. doing

that you seen, well, our can but It's as energy exposure, big the so in really would embedded around in see that, we that, business. would results, as have not say, and impacts some trade we products. we obviously, do I in those And very factor what spot, of have reported as a

Operator

next Securities. Truist We'll take our question from Dingmann Neal with

Neal Dingmann

question is costs. My quick just on

XXXX to the return on speak X costs all OFS particularly Guyana? your rising your and inflation you in areas, Specifically, and Permian other could highest for thoughts

Darren Woods

on that so our is a Neal. pressures there obviously, out activities. and and seeing of I we're broad forces sectors across inflationary I'll market everyone touch number the same Yes. subject that, mean, to

is, we we partners with longer through pandemic that a ground. One term, think the you be concerted we that were recall, recognition things. the of went pipe and couple putting contracting work a as and effort running very -- downturn, rigs be in took I in would would as will to the very the we our back,

continue objective, kind back manage we impacts term with forward. to contracts into to in of has downturn commitment enter to that the contracts going the that tried longer and so that reflected a inflationary some some money and that And helped of spend set

very then, Upstream an offset. the costs to our And to trying from the businesses course, been have making. lot with the took a the organization and then harness we've leverage changes and we organization, been of centralized we so differently. scale Remember, down and that that organized We've power very, X really our that's purchasing our functions, plus of And out. cut all X

efficient more are having in significant efforts become marketplace and costs those to So more and a the effective impact. all reduce

the release of we savings well to have date, by earnings way and structural to we XXXX savings. We versus billion the structural on $X.X billion set in mentioned our of we're meeting end objective $X in that XXXX

term centralized of don't some helping short-term pressures. as inflationary us to getting I that more that, top the we of that's that, to efficiencies, costs. the So then to organizations effectively those structural kind with about offset but think purchasing what -- scale, however put what offset power, we helps and we're leveraging you on want And would in call the bucket, of actually

good challenged that. a year we've and pretty The to so And is doing organization ourselves our the budget to deliver offset job at for inflation. expense on

of is see offset I think the to can pressures. do. within stretch organization we going that business rounding the those the of with very restructuring our be ourselves to year, to how focused inflationary And we're we'll through been to next then have on opportunities using that. And that respect created much

Jennifer Driscoll

Katie, we one for have time question. more

Operator

Wells Fargo. last Read our question Roger from take We'll with

Roger Read

at on region particular needs rather believe curious, just capacity on if that move I refining, Or in earlier, to look it say, you do it's question, the takes? here me situation of and X of was up for kind to the but Maybe it you and Darren, in as to was years capacity the you what capacity? that option cetera, do capacity the that, do or add a a it LNG, curtail forward up just follow what asked something time? et Or services the where but period to focus to what's do It's there do other than the at you for over X no as tightness, Yes. question this it a some be probably world to like it but brought to next, maze. exists see demand intro, of way of picking out macro kind you a think is

Darren Woods

Roger. Thanks, Yes.

think good the at meet the I pretty demand. capacity has industry to flexing been on historically

And so the the but think, we've proven function this, years, it of the time, come market is I'm that that will -- markets optimistic time. over back into balance, a and I with

sure I that as Certainly, we're everyone to they to think need in trying seen will market. meet product everyone know is do marketplace running in the the pushing the short same. term, to we to I as that we're reliably, squeeze what can. getting and you've can us else hard make the

on structurally, think track. as sweating piece function can. the existing as is and help short of these you hard I more but So developed going just a of term, that It's the it all longer in assets projects getting to but it's --

we've us, fortunately pipeline mean for been in work. very a projects healthy I had of have that

work that by LNG We're capacity. increase XX%. out brought so progressing And LNG terminal talked the it's That's additional export focused trying in online should -- We're as Coral we're out the -- XXXX. Golden of in to pipeline to Papua got the floating Mozambique going bringing Coast we U.S., That's progressing we in Gulf on not basically not to got. in And about, this something here find come exports Pass we're the we've that's We've investments Guinea. out very delivering quarter. on New of probably that on. large

the is just to I significant capacity the a of it think So function time there. projects. very It's build these takes

that Guyana. with of progress on the we're if next look good also poke you the making would very the I And tell equation, into crude you side at

We and ones continue a believe that. we're little the to going bit early we're that in to progressing bring after

there. expedited what and capacity executing challenge -- is is the spending it think which doing I So so in on you're efficiently doing. an way focused -- on we're fashion, brings that a then it you're your that the is efficiently getting capital It's

Kathryn Mikells

all so it And especially the on looking conserve, are is demand for that the side, to can companies add thing one then can be that think other LNG, I I'd just use. there

I the So use. to already can use switched be other across Europe, kind fuel players And it so our over our we've other there sources of industry of of same. footprint XX% that in other doing LNG are expect that for

Jennifer Driscoll

questions Thanks, today. Roger. Thanks, your everybody, for

to We will session nice conclude weekend, let week. of post back to it Katie? and Q&A investor turn transcript next early me Have our Katie website the the on call. a our everyone,

Operator

Thank thank everyone concludes for their participation. again call. you. We That today's

Exxon Mobil (XOM) 28 Oct 222022 Q3 Earnings call transcript