Earnings call transcript Q1 2023

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Operator

Good day, everyone, and welcome to this Exxon Mobil Corporation First Quarter 2023 Earnings Call. Today's call is being recorded.

And at this time, I'd like to turn the call over to the Vice President of Investor Relations, Mrs. Jennifer Driscoll. Please go ahead, ma'am.

Jennifer Driscoll

morning. Good first call. ExxonMobil's XXXX quarter to earnings Welcome Thanks us today. for joining Vice I'm President, Driscoll, Relations. Investor Jennifer

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

are remarks our earnings same of meant news prerecorded and which They're presentation available the posted Relations website. first new the accompany location. is on to release, section Investor quarter the Our in

ask opening from analysts provide will comments before to this more That Darren a Time. slides and at Shortly, few conclude give presentation. will time Central X:XX questions we reference A.M.

are presentation, to some the we'll cautionary X. During make in forward-looking them and describe statement comments, which We on slide subject uncertainties. here our risks of

our the that and X forward-looking on Additional XX-Ks end remarks. to the website. supplemental website information XX-Qs which slide available uncertainties now and earnings Darren's on turn the at posted risks provided investors. of that on we recent our to note for most slides, please Also, our information please Form listed apply in for any statements And are are

Darren Woods

for us today. Good morning. Thanks joining

last discipline, year, success ExxonMobil work update are our demand. the plan structural global record delivering moderated leveraging energy our outlined needed fully and people, the and quarter competitive cost our our margins to advantages. Through energy investments supplies corporate in we highest This and the growing history and hard and earnings advantaged assets, even a expanding mix operating meet improvements in the Following improvements as earnings December in prices quarter. fourth priorities strategic from reflects refining first the ongoing our delivered executing of

offset oil-equivalent of from in longer we day increase XXXX, production no part of a barrels than Basin, per remains our primarily Guyana global Compared to to divestments supply. in the which expropriation first of global importantly we Sakhalin-X, Permian more the for, from added which in account increase XX% but supply, the about quarter XXX,XXX

we expansion addition refinery This day for Beaumont announce the from refinery even In reached meet a addition, low-carbon nameplate a with Uaru for a additional we're capacity low-cost, decisions fuels. XXX,XXX offshore XXXX. intensity transportation bring is production will more society's investment to need reached day project, Uaru, XXX,XXX pleased of on this provide in will helping quarter. for our barrel resource. US which start-up in that final an fifth barrels expansion decade, targeted largest Guyana, capacity the gross ongoing

heavy the operational during Earnings with in performance our from Product period. and top schedule benefited a business planned particularly execution team's solid turnaround maintenance cost Solutions quartile

several Carbon store we're to April, permanently transport agreement building Low metric million and up tons COX annually. Linde long-term X.X across Solutions, momentum we announced to capture, fronts. In with early a

Hydrogen, hydrogen of in that facility. front-end with Korea Group we ahead contract offtake of for engineering for SK carbon Baytown, low announced facility largest the and blue world's design of agreement ammonia from

world As Low to Carbon capital the is earlier said meet ability aspirations. low-carbon The going advantaged our and be competitive our our compete of returns. during low this important is carbon emissions we must month, projects its for projects successfully deliver to Solutions if spotlight

Reduction and by Europe, net-zero This more Incentives affordable Europe world or step contrast, far and the positive policy the reliable true are remains provide energy. Act a included in with Inflation production other still regulatory the to about on is although we're put are to prescriptive whether improvements needed. needed reductions and needed emissions talking the forward, approach permitting a punitive. to path

and organizations company by May will the making we're the our of continuing progress be new The is across running. up two X, business on model. evolution enterprise-wide underpinned Effective

chain finance the deliver Supply simplified will to corporate-wide processes. consolidate majority centralize procurement supply Solutions Business Chain operations, ExxonMobil globally. us Global of will our enabling activities

drive and and to scale customers, The financial deliver people. organizations improved and, our importantly, results improve vendors operating leveraging an will for on our efficiencies, experience focus

organization. gas, across bring to enterprise-wide on we unique our all the length, freight launch new our and Trading Global record chains insights entire XXXX we with trading, crude, global leveraging our On gain results, our will natural power from products, to of together competitors. build of June marine each the than larger expertise footprint a plan operating plan participating X, their along value and trading any company from in across

billion, $XX.X Now, $X.X headlines. track $X contributing first now meet billion significant cover year. that the to by end on following quarter us to a cost approximately record our me this of let a quarter's pleased We're year. savings total earnings, A factor delivered of billion the keeps have record structural of was target

$XX.X and operations X%, our including billion, distributions declined in $X.X net of the increasing while flow from supporting billion further sheet, our to shareholder $X.X balance ratio debt-to-capital totaled billion Cash in quarter, of the dividends. strength

the Biodynamic solid made many improvements our course, and, of we've our hard reflecting market, years remains six last over our the work ahead of performance underlying the people. competition, of and rock well

portfolio value. execution Our driving excellence cost earnings, structural diverse are of industry-leading mix, cash businesses, in savings, flow in improvements advantaged and shareholder

meeting strength with sheet, society, to including the the need we evolving win the to our have capability market variety to strong wide across balance reduce deliver Combined returns, the needs conditions of emissions. a of while of

positioning the long-term new in business, that an advantaged continued developed will which Carbon value-accretive our in traditional opportunities and a as underpin transition, establishing advantages and and energy in own capabilities is shareholder our growth we're returns. Solutions, leader other's building the emissions growth us Leveraging Low businesses, in

that, the Jennifer. me turn With let to call over

Jennifer Driscoll

Thank you, Darren.

to Q&A. move Now let's

any Also, please analysts, on can questions the more case we a As people. ask accommodate a courtesy questions. in please way to we need clarifying line more to from other remain single That limit yourself question. to

for that, please With operator, up question. line the open our first

Operator

be with you, first go Mehta Sachs. Thank conducted Thank Neil question-and-answer will electronically. Instructions] Driscoll. [Operator session Mrs. to you Goldman We'll

Neil Mehta

had to to and perspective and these manifest you much. then of lot be a on that. we're couple margins going next you're going the indication perspective think demand? years, it's time Thank I'd Thank of what -- just margin of some calls. from so over spent do on over your seeing of you've you a you business normalize, refining start curious And on the the Darren, a in the in views you. itself system to through years? terms seeing in refining how product And were

Darren Woods

being Yes. don't Good as we Neil. points, we're of I pride Obviously, at forecast able margin. couple refining make ourselves think to morning would A the margins. I the is first really on looking

margins, to So, things know our are of going side where the the often given fairly the everything recognition on equation, with go. it's exactly say to difficult supply impact caveat, has demand that the given static I that the

refining What into see today, I season. tend you this quarter point year at off-line of is quarter to I is demand see in a seasonally margins where and season supply lot you typically head early as would which driving look a and and the say lower when low capacity lot third improve, tighten and as second you of take you we're a at turnarounds, up demand that in mean,

finished out, of And then supply. are capacity a get you when those turnarounds comes back surge and

and the off up early to supply of coming demand see generally so you this as margins and picking And drop year. summer valley back then on the here kind head between in you refining into

right in we're now. So, I context in we're think important terms that's -- of seeing what

reasonable, looks pretty demand frankly. Gasoline

kind of listening transportation summer. think of trending I of or and looks some expectations to certainly airline customers space, healthy in it's up like demand a forward and air from travel the miles our fairly going transportation jet that in

typical see view think margins we're in my the to So, is push term. going summer see and longer I in the up rise

in what depends only exports to but has forward. a There, going the out see to demand also back of source So, first it have been China. how of those it comes happens in It higher but exports. quarter, been play not

upward is If we of put we levels margin. pressure year, will expectation my see exports on last the similar that saw additional as

the that's to think watch. So, I things of kind

last The of the Europe. refining I on margins, which barrel structural, in comes marginal make is I'd out think typically, point somewhat refining

Europe set is And -- setter markets global the so price ex-transportation. then for

go in think, We've got with, potential I to higher. Europe gas high the prices

in carbon high Europe. got prices You've

that higher if globe and production Europe. producing you're of for margins lot been expensive And that's it's keep, going is to more marginal tier prices historically. And therefore better outside I the on pressure so of a than think,

Neil Mehta

so Thanks Darren. much. Okay,

Darren Woods

bet. You

Operator

We’ll go of with to Bank America. Doug next Leggate

Doug Leggate

morning, you. Good everyone. Thank

Darren Woods

Hi, Doug.

Doug Leggate

contribution Darren, you non-core in what in I wonder non-core follow-up, if asset And you on reasonable Can sales. a asset quick first might from and sales. are of you have of I front characterize where another I've could you disposals, kick terms process off please. that think got in still you

Darren Woods

and thoughtful very we Well, sell right buyers, that been, at those. our had ourselves had was we there, the talked when has Good you I morning. think we in well. fairly and the divest were back we divestments about, the in I plans assets We've ourselves, think, in Sure, the worked consistently interest market market set look successful increasing from at think, assets pretty realizing and sure making Upstream, putting if taking value positioning to of XXXX and the where a we I ready particularly that Doug. approach that

sometime assets. on high the year. got set to And hit in feed value we we look that objective that we work -- continue portfolio see we'll XXXX a necessarily we've market or continue probably then for grading those portfolio, should potential are -- where back assets higher strategic don't at this to that value as and We we divestment continue see to the others,

therefore things inventory for rate therefore buyers seeing kind can use value see, a and we've assets if base. out expectation would got an we market finding my higher decent and of being basically forward mind, -- of and in and So of than the going is who my have do in consistent better to expect the we find

the as value we look it make a proposition. just at the I'd divestments, is point final that

been question continue focus comfortable we've value portfolio. the and we with do of are maximize the in the really very and to and how be beginning that's a We everything from the It's optimize one. got

So don't find only we're to we that. not we valuable to It's do anything. sell opportunity have a if --

Doug Leggate

answer. I appreciate the

think plus remember question I said or couldn't follow-up. one I one if Jennifer one

any very risk this position time Thank just I'll you was M&A. I talking be I'll quickly. at morning wires picky delicately Exxon would Permian the you you. Kathy on to And backfill if in there. ask if feel this I follow-up the future. I'll leave to want question, about that ask you may. need Obviously, on you a your So how

Darren Woods

Yes.

one in it me it. that I'll amount we've questions opportunity Doug, one. give you of got Exxon plus about as what what Mobil one this amazes -- for up accretive. brings It's think got pretty company talked value. an always Okay. an the We're would do of consistent where either that one looking to for independent one actually be be Look, value it's grows to another. we've I come that this space, increases and And acquisition the table to been

And so say, that's approach. kind underlying the of, I'd

continue in we're in And we're got a real find find to on actually will depletion shareholders. not they the that While kind volume. let work we're do we've anything business, we to the what making it, volume a willing bring bring for in value to We're into accretive do the and sure is to portfolio volumes in market and that to for market the value. to hard is of unique search contribution the

that the can Permian. we're the whatever working proprietary technology cost mean, improves in My technology, bring I've past. our whatever technology which developing our on either the success technology in or developing I acquisitions. there, to got opens so working lever we've in Permian, is the talked value we're proposition of real that to really And about obviously that the our view acreage and is, resource hard current portfolio And resource, and recovery a opening very really we extent that the space. in active will opportunities table, up up for potentially good deal are with business technology, up anchor the open value of that on that hard

focus There our any would that technology down ongoing to to the and got for road. is extent got our true make the leverage we think, business that's full what's attention. there. view be portfolio to I'd today areas And that's unique to can. underpin of -- a demonstrate my But substantial work going really the same But That's, that proposition advances. the where we of we've a to we've where we'll I make work That's then ourselves. that value

Doug Leggate

Thank you.

Jennifer Driscoll

to as And yourself reminder, limit single to you we Thanks. question. a like would

Operator

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

Devin McDermott

Good taking morning. for Thanks my question.

Darren Woods

morning. Good

Devin McDermott

for with the versus stick growth XXX,XXX with look question, to out And to had that So and you I already XQ a reported going strong in to an a results want you're that you It's growth barrels not the about but M&A quarter, laid ask guys wanted I'm day. at the I seeing in also Permian, sequential the if ask production XX% XXXX. puts there. line target you you

could about there, the talk that thinking then strong little the about for I and So the this if you're was production of trends bit a driver you wondering evolution and the you're the also results year? productivity seeing of balance how of

Darren Woods

so Yeah, haven't as I we we good last and year-end to discussion that targets, the the of morning. gave would part changed say corporate our hold. guidance year continues plan

I think the lumpy. at past a the be little said Permian, look we've to bit in in it's as you going that production

And extrapolate data from and there. one quarter's wouldn't so numbers I point, any take one any

moving going you're think I to see up and down. that

what seeing we speaking, would of I generally we're in terms in like productivity Permian. the say,

versus production ago, -- on development cube trying approach design, that our several the to rates maximizing benches work different recovery initial work all very to recovery. a oil we simultaneously maximize know across ultimate You all across this strategy to led years

that we've with and tuning testing that That, evolving approach. I think been fine approach, it, concept. developing gotten we've to like it where We that

we're of seeing to the think that I manifest itself. starting results

other we'll that rates. bench, and think, to, high best many our versus able differentiate what others on is off this competitors we're I -- many continue of the production do to started production initial expectation who our Our of

expect good approach, see what that. start similar to a With doing pivot time, we're I got think maybe we've on but them a Like there. I head real

we're on this gave pressing late the that, we're year to the that. we'll levels point pretty stages see about But maintain that and last year-end we've see some on same of And keep rigs I rest think consistently, we to capital we going been talking year. sticking the the and signs encouraging guidance then early how at plays that of out.

Devin McDermott

Darren. Thanks, Great.

Darren Woods

Welcome.

Operator

Royall with to go next John We'll JPMorgan.

John Royall

guys. the for question. morning. Good taking Thanks Hi,

Darren Woods

Good morning.

John Royall

the talk So demand weakening? be about are capacity to about probably was any around granted, appear a cracks on I the happened and today at commentary you fundamentals absorbed being how more general in time bit what's the where on to Beaumont market there but market? capacity and a given adding expansion, the can is positive, And Darren's concerns think, concerns the

Darren Woods

Look, is developing and Yes. years the began down. we I these up would say short that the move focused, you, we are on no. Beaumont know answer expansion. and remind all they that We is, ago. This something volatile, many markets planning I'll many,

to and was And refinery by from intermediates the transportation end really and built intermediate afar. and typically saving the making bringing that conversion backing transportation capacity on Permian the changes and of of crude differentials and production it the our front out products intermediates into coming Beaumont of fill those are the the imports

today. and see we're seeing that and a And of fuels are and exactly a differential so, we what additional expectation that products we the higher-value justified transportation felt that producing, return, reasonable on that, we provided with the on project top that value would of that, the

well about curve. frankly, is think this supply business. on positioned It And you how need that's of to very the cost

view so where our about of facilities the pretty its left price every on need margins expectation our is between capacity irrespective the we've difference of on that will we on got the all have feel competitiveness. of is So that be setter. side marginal a that curve, left-hand the good in the of far I the supply far so to And curve, -- of know I cost brought the go, Beaumont

John Royall

you. Thank

Darren Woods

bet. You

Operator

We'll Wolfe go Sam to with next Research. Margolin

Sam Margolin

Thanks the question. morning. Good taking for

Darren Woods

Good morning, Sam.

Sam Margolin

to well sheet. I cash, page we're fortress something of we're the net beyond balance. transparent a think, know pretty and jumps if and that this I But are looking you've fortress sort And balance is kind you shareholder imperative off at that. of if cash going returns topic targets, sort wonder even continuing that direction to increase about what your the build with and are within bigger the the than the even of into getting So, numbers, been of

had any flow And that around I of very I'll production today a lean level really and kept on base. the of cash base what's just the thought And and historically, the catch of -- both Exxon relative balance if absolute to there's sort sides cash with optimal. I'll kind sheet think,

a little I and would Thank appreciate so history it's your it. the bit than so, company, thoughts on And different the of you.

Kathy Mikells

and would evolve. how ahead balance cash market I expect about that, the end and depending has go capital of flow and mean, we prices Sam. on fact very I'll of take the approach, post our ebb Sure. think, clear. I we very And and consistent that talked margins the to kind allocation year our been had

stand. very we're where comfortable say we I'd with So

strong It's investing competitively to projects. That's we allocation the really high-return balance ensure important very priorities us for maintaining It's capital to right? order that cycle, our to business in stick the a sheet and advantaged a have balance strong through in sheet.

balance sheet gives industry succeed very of variety a confidence and what is market this firepower wide we You faces. know conditions, obviously that need us which across the to all

we're that clearly, and and share to dividend. success see program a with growing repurchase our a share looking consistent then you And shareholders, more through

So, pretty good about we our cash feel balance.

I the debt environment we've that X%. in just market ExxonMobil's relatively compared would what also rate unusual mention is seen a average in about past. we're to

are can cash. earning on look what up You short-term people

treasuries at today. three-month X% are think I

balance, we look now, we're incurring cost well. things So, negative not certainly cash as the right and of one of at a on carry that's that that

we're feel good sheet. in we where about at today So, really our balance

Darren Woods

of recent that nature cash. cycle. typically of I of history, mentioned commodity more on and think we're back in it further lean go you carried bringing cash high true we we cycles, and the commodity top lot Sam, add, on the the But a the cash cycle it's really the that reflected to if history. you would some certainly I And And fairly Yes. ran

move in particularly the of important you into trying and levels advance maintain portfolio. to to But asset as the bottom when that's projects an continue consistent you're the the cycle, the investment

from markets balances into we will think Question the are cycle, I the so when well time the will of is expect to we would cycle, come. positioned I we're that that and the come. know low -- go on higher cash So, see the which end obviously of high as end

Sam Margolin

Thank you so much.

Darren Woods

Thank you.

Operator

to Wells We'll Read with next Roger Fargo. go

Roger Read

morning. Thank you. Good

Darren Woods

Good morning Roger.

Roger Read

you on savings just characterize in that? billion What to-date, $X.X not within inflation where the how field bit billion to $X little kind the Could this ask specific in how the like for oil affecting commentary a general I'd of year. come on that's track from that's general, about the but

And is to of $X know program, there asking is $X something billion, I'm kind that? three the $X beyond like right the but they're the billion end of is questions in one, that focused around I all billion. to or happen

if you out. allow that I'll me, So, throw

Kathy Mikells

I'll that of suite of for Roger. you, circle try around and questions kind

We're So, the very I'd the we've that overall, on we $X relative start by really much about made. the billion feel end of this track XXXX. good at saying, progress year for to

you a overall for our the us, I'd just workforce. are one at programs If different number across savings productivity driving look where say, overall is improving of,

how that manifested that's as itself If been I Upstream, you that's what in organization. think of about reduction cost above-field a focus describe it's real in would a been significant

years, a couple generally I done over made looking of company centralize the have that different disparately. changes functions been describe number the would across of to key as those of We've kind organizational past

up chain research combining that. I'm that capabilities announcing services a and -- supply a organization combination combination would across of and our and great of result, together coming recently, our example Product more a year, organization sorry, recently into be Upstream and our Last our and just engineering across Chem our then the as groups business, simplification Downstream organization company. kind Solutions a of global business our trading projects lot the of the global Previously, across organization global business setting collectively our of combining the

our and across efficiencies organizations. for And our and experience drive so effectiveness vendors, that's to customers those all for importantly, about improving our continuing the employees, for

in heavy our maintenance recent at the would had turnaround came this We presentation in of seen bit activities We we little benefit that maintenance of those about have activities, talked quarter, fact a actually that the in the quartile. quarter. and pretty a our first some really

better to we much That duration. for, So us than the would overall better obviously we than have what enabled shorter quarter. for planning have been throughput had planned

of that organization our area us. big and a group. that's another savings in that's recently so we And operations global for sustainability And have centralized

little I'd to made are expect a gives savings So you, of the of efficiencies bit that characterization say, we'd we've certainly, from and organization, coming here. some of recent forward more going where from. effectiveness the that drive a And changes in

And like program the comment, last end. the just does then

hey, focused cost be opposed to time of in just helpful specific be are obviously, focused to about clear, we are this don't Those we'll transparency. with we've the period be that we plans continuing doing period you externally that over we we're on structural So embedded we shared the the And that year. savings manage as, actually thought a on talked when in because onetime Internally, time. we would come last as to to drive December. end an update there's

about And detail we there we'll basis. go-forward from talk on in see more so a what

Darren Woods

to of what new we And more those the organizational together the point we these I'd what in is achieve, on we envision come focused corporation even organizations going changes, is final have build and people find with organizations than the objectives to and lot on seen could opportunities a have all our to the said Kathy trying as the make changes.

to these changes organizations my find begin made to come expectation are The things. new as So things. already together, find they'll continuing we've is organizational

into structural our the drive we'll savings head cost to So deliver on expectation is future and line. bottom the as continue efficiencies to we

Kathy Mikells

And just then back. I'll circle

disclosure in that. additional at to so press a encourage asked put actually bit our inflation. look about I'd We have You you little release, an

at more savings offset doing Overall, with the looking higher in the I'd is organization that able offset to been we generate. to environment a If pressure recently. than structural what's you quarter, good obviously inflation at the look say, cost inflation a were we job inflationary

Roger Read

you. Thank

Kathy Mikells

Welcome.

Operator

Jason Gabelman with TD to next Cowen. go We'll

Jason Gabelman

the Thanks are a of market has global on representative for question force wanted robust. in of in, Asia the your margins and ask in given my that that seeing if you dynamic Asia you US refining near-term? reports are still are morning. really that while taking the run cuts the business I Downstream we're reach contemplating refiners I'm question. And wondering Asian to see good there, margins Hey, where and US weakness but the still cracks margins structure of are kind zero margins XX, in or US we're kind balanced expect that's the in to in lower Thanks. do

Darren Woods

Yeah, sure, I'll that. take

the balances. of first use I we would world typically is make think I it's and time, comment some round. world over short, the the pretty always of period And as the phrase

transportation So with -- it's eventually the margins differentials. disconnected to on have hard to equilibrate stay

that's And I always in short-term so model are have the There my mind. disruptions. that

the out logistics of that pandemic certainly constraints. with coming You some saw the of

So time of But generally obviously things there periods constrain where speaking, be that. will happens. that

layer source the will the setting production. marginal of a think production margins I in function what be is of the US

have and has historically structures As that I there, is now increased, refining. Europe. out earlier, that higher, come marginal of higher Gulf Coast underpinning which is so said And cost barrel

and will out changing the any additional see changed. then growth it's time, price And short-term. if that see comes Obviously, frankly don't balanced we'll are transportation get that in differentials. marginal lower much supply that on I overwhelms that on, the based cost. in capacity with And demand,

of out see sense And tell. in if we stayed tight. year The the be, will same look you do to question Asia back coming China is the My balances think levels and things reasonably thing export will time I and that year. this of last the

Jason Gabelman

All right. Thanks.

Darren Woods

You bet.

Operator

Evercore We'll ISI. go Richardson to next Stephen with

Stephen Richardson

about I wondering, just how remind thanks. maybe evidence growth, bit Hi, us right? could got dividend got and you've you're on and foundational about how structure earnings questions the here if that growth. follow-up a we've But Darren, you sheet. a This of was cost thinking address previously balance the clear Because

that the on if coming Permian sooner bigger doing and at you projects is got You've Guyana, are well. look

You're downstream. adding base capacity

how So thinks think you dividend foundational growth, and about basis a certainly, could you've of those us to about some remind just -- wondering earnings? because mid-cycle Board derisked how on the if

Darren Woods

the marketplace it That's and keep seen and and variability we like to to sure build time. we year level to and fight make about that but and say, Yeah, think I'll been of reliable, the dividends see also the volatility sustain I'd making sure try start the conscious hand in That's the to during Kathy I'll the just commodity then long-term grow see would to in I the on, generally, be us a of we our extremely you've cycles fight as over hard that mind we that. you and us history. with And that pandemic establish are do. certainly that those what we really sustainable, see dividend,

think, about. that commitment I that's, I And a really strong feel

a disbursements is through long-term And sure making But making and shareholders think for with do our there policy I sure so the rewarded we shareholder -- dividend principle. that feel an And the we maintaining it's really perspective is about what sustainable long-term. then obviously, can buybacks. disbursement underlying balance

Kathy, add want do to anything to you that?

Kathy Mikells

even opposed that I this shareholder definitely about very we as we the over a we're in think that's distributions pretty as take balanced to think as long balance balance And business highly through Yeah, about repurchases. getting striking to growing dividend, well that share term, And between term a the approach I'd a in regard. look say we given the a right, we're as think cyclical. efficiency competitive near and

moms front the us Board going growing. investors. the And of about And something fourth of of more and the in quarter look of out retail never We're our at regularly, the that and are so, Directors. of year. competitive are that last ensure two XX% we the we in globe get dividend the in years know to that it's to shareholders the shareholders, obviously so important pops dividend seen across It's raise and you've

It's we're important. we focused so really something know And it's on.

Stephen Richardson

Thank very much. you,

Darren Woods

you. Thank

Operator

Todd to Sandler. with Piper Ryan We'll go next

Ryan Todd

Great. Thanks. the question Maybe business. chemicals on a

of saw chemicals environment? And of your corner the about chemicals we sequential business ethane you Have you in You the trajectory can margin improvement in margins talk over the XXXX? driven course in that advantaged how turned by the products business pricing. see

Darren Woods

to Kathy, it. I'll then to and if anything Sure. then, you got start add

I chemicals the like are to that drivers underlying the the be think, imbalances that the businesses supply/demand. of these -- commodity in or driven chemical all margins and we're balances supply/demand the tend in, by

come lot saw we a margin, capacity The on. of

You of come pandemic, got on. come that the as And some stalled and lot coming investments the have in came a a then on as went and back. remember, still the of again we through marketplace. see those of short back on lot We've pulled we on capacity turned out, term. we'll to seen I here got expect

unwind in COVID a then economy, that, what the demand. impacted impacts And for to took the which chemical global I'd say, is through, it while conjunction with

you know, economic tied activity. As to it's very

So activity constrained, with that certainly is And China constrained. we chemical if the demand saw lockdowns. then is economic

we're picks see it's economic And goes. -- is, and their early and there we'll that now promising think a out China up. Where is that to demand frankly, and some demand activity I capacity with it's do just question China. but how see where at on We of have signs,

assets manage feedstocks the change equation We've is around. I of some The feed would part with big make got other as point ability fairly to is, well. a feed to and diverse feed optimization respect and the margin

that. that feed and As us allowed spread came get a that advantage gas to our of liquid off, to our change of the crackers gas prices better us gave some into

anything? go will feed play And And macro first into what And quarter. play help impacts, of in some that's the out in that that optimization. I you saw quarter, then it a was how as more forward. they first we'll see as Kathy, think the So the we well. that

Kathy Mikells

chemical of late we in of strategy up along chemicals part Rouge Yes. expansion project quarter. emission That's or That's The growing thing fourth be our is, fuels, business, add high-value products brought an on our other Baton Performance only overall with growing full spooled lubes. in Solutions performance I'd Product it quarter. high-value the obviously Chemicals across

the and us a earnings market project And cash so, flow has tough, even actually been though for the in positive had contribution that quarter.

relative results the both sequential we obviously Gulf us that's the Chemical heavy that's in footprint, Coast we our the good margins. business helped bringing. kind very and have part up of big the business. And strategy mixing that our Product of footprint overall and in feel And and US So improvement to about global Solutions across a very a in

Darren Woods

of example low-cost on, we're bring advantaged great projects focused a It's advantaged Yes. capacity. where on that

that unit a in investing the a the the in low online. the earnings is, testament cycle strength really polypropylene brand-new to to positive of up make market piece bringing on we is polypropylene lowest in that earnings, projects that are I So, starts kit what of a think, point that we and the of brought in pretty on

Ryan Todd

Kathy. Darren Thanks and

Darren Woods

you. Thank

Kathy Mikells

Thanks.

Operator

with Syme Alastair to next Citi. go We'll

Alastair Syme

picking and some effect trends. much. be should depreciation. thanks Hello. Is the change Kathy, we through about that that just portfolio fourth There's the unit quarter of versus ask very if depreciation I first year the could quite that does wonder up? I Darren year How in big a quarter in then? rate

Kathy Mikells

Sure. I'm asset happy tend some to is see depreciation to activities. in ebbs What with flows management you answer and associated our that.

through runs that a taking we're sometimes assets, impairment selling we're when small depreciation. so And

run that to And so depreciation from has take call in in I you step side, I'll billion, annually amortization. company a it, I'd of the back about, that have put If $XX depreciation. say $XX to the billion noise kind and

how that's about I it. So, think

Alastair Syme

Okay. Thank you.

Operator

RBC. to next Borkhataria Biraj go with We'll

Biraj Borkhataria

and been across my wondering asset And that just I seen trading trading. just capabilities early and question. gas. Exxon press build for where year taking was Because, thanks obviously, there's up XXXX to Hi, wanted on exceptional in are various optimization we've journey. oil some volatility because follow-up wanting reports you and to this in its about in I

I your some those like looks asset businesses, ROCE on in at of the that from if and exceptional add environment. And X% optimization could numbers peers, the up to look some of it

and how a obviously your expect asset to take want to front? with refining footprint Thank advantage where of big your have you trading it are wondering you just this I'm base. get be to long how on sort opportunity? to you And you So, vigorously do pursuing the you.

Darren Woods

the Biraj, for And Sure. good thanks morning question.

trade value of media, into the XXXX. about trade and that we're think, putting chains. construct starting putting we've coming I what triggered that think the the of China reorganization emphasis I the this, we press organizational the on talked back functional And in made out our emphasis aside on is reports

along chains, in advantage to trade And as and with generate value along and the opportunity chain insights value that changes the move you chain value pretty dramatically.

chain we early on with organization. that Refining that we so and move that our to between had value -- construct Downstream now that And Solutions a have Product

those Upstream our chains. integrated now value into We've

got we've so And the marketplace. good a really view of streamlined and

footprint And we of trade you so advantage footprint the trade and chain, we those we markets. can and referenced global the now trade all between across can global that chains. value along take along the obviously, value then the entire as can length And arbitrage of

a today And to gives sight organizational I better line the space. construct in of us and opportunity so optimize trading our think much

what started objective would So bringing a we've they've see -- the what well within gave growth. has talent in -- some in statements, the the done that for We value We I bottom say to to we traded time. had a trading on XXXX. really continuum we like been We just company is there. like there. long that, brought of We've we and growing organizations different line. responding That

that in opportunity And bringing the mode putting systems, I'd say, we of And taking is growing the to of talent space. today We what together, through makes trading a dispersed just consolidating the whole organization trading a validate corporation. the that. the last in organization be organization what think lot are get respect would years centralized announced thought over execution in in of the we're putting and there We developing the size and that those what of did to needed sense. for to and the the one with support somewhat talent, lot couple that organizations talent now, the into work was after the we

positions. of huge around growing a And with about This opportunity. pace speculative This come That's taking those that our organization is it is them. so those the value and we going controlled is what taking not value the from that that just with I transacting out and the really we to one what is a have, in the believe would a given the focused thoughtful, that insights think but and participating be asset on running about going that there, doing. optimizing, very is going progression, continuation footprint. very significantly a proposition the opportunities chains do in. businesses going insights on to base out we're generated as we're And and

And like I said, time, even good results. seen really short in some we've the

we've our And products is products that business will of the molecules created on -- the this that those manifest the world. around the clear value then itself trading and think I sight around of that really line got to people some value want -- that in the opportunity additional a through moving of developing transformation ones. and

And see so of. traders our off platform a that great accrue. optimize value we'll That's to the base where gives

Biraj Borkhataria

very That's helpful.

Just you your forward? if all to at the But cash balances I'm about thinking prior follow-up. to possible, going quick that change does a relative way manage look cycles.

you be If trading, to high would higher like a with or a -- to generally in kind wrong exposure any helpful. maybe is run that, have would Am there you color of cash any I

Kathy Mikells

consideration bigger sheet company's as working capital take and we needs. a else into capital a obviously needs all means about equal, our the working balance we held cash company So bigger balance, our think

as trading profits through that would say think organization. capital So I steady. I'd say, to that year-to-year, there's different also that's some near-term, to The I in I'd are has pretty brought mean, it. in it mind I working relates about of generally, come how terms say, trading but be would trading quarter-to-quarter, the

Biraj Borkhataria

it. Got Thank you.

Darren Woods

you. Thank

Operator

to Paul Cheng We'll Scotiabank. next with go

Paul Cheng

morning. Good you can you. give an… Thank us Darren,

Darren Woods

morning, Paul. Good

Paul Cheng

in Can the an also update of New give Guinea are in the you Mozambique Papua terms LNG, Guinea expansion Papua Thank talk? you us on where you. in and New

Darren Woods

Yeah.

are I'd working I that concepts left-hand marketplace -- supply say there. making of for the designs good have project on and bringing supply and a going cost I'd We're that We're that whole. the robust and sure think in very side production projects on competitive a just sure to through portfolio we're we maybe specifically is developing speak making make to curve. that be of the point as LNG progress there. to long-term,

that working signed with with the that, with had the think agreements to I helping in in need, there, we've and partner We're progress respect of Total. getting PNG forward. progress and us good government Mozambique both our PNG we terms in good move

So feel good progress we there there. making about the got – we’re that

we’ll that, the a as the Mozambique, there, whole Total steps then with develop doing we’ll go successfully we and of been the on to and close with and And on feel continue comfortable given while, that work they're we keep obviously, the situation take challenges and some that can for there and conjunction go do to eye there. project, and in that, improves

Paul Cheng

going I Mozambique, through structure concern there, can the on that the seems side? ground cost security, security And the to cost just with the Darren, on structure Total process about still to turn -- contractor. or ask the you in have working on you do be similar the are guys through optimistic on

Darren Woods

the that Total, doing the obviously, together. We very exposures work and work closely we're given with same Yeah.

had So conclusion. our assessment. and conclusions with assessment kind lot they're our between coming very information. there sharing I would it's a Total's our there, with of say taking what don't own is I'd of hand-in-hand consistent see you We the approach security we're We've difference tell situation. that up the assessing a folks out

there. that. will we've So we today, that seen we to that And that do be progress. sustain Obviously, progress feel like the I pretty about convinced that need optimistic

Paul Cheng

Thank you.

Darren Woods

Welcome.

Jennifer Driscoll

Okay.

completes that, think that our Q. I

everybody, today. So for questions thank you, your

We few a will post our a on transcript investor website new Q&A session of our in days.

to forward Annual XXst look Have we Additionally, weekend, a Meeting. May on nice Shareholders' for again connecting our everyone.

me conclude to And it to now the back let call. turn operator our

Operator

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

Exxon Mobil (XOM) 28 Apr 232023 Q1 Earnings call transcript