ExxonMobil Updates Growth Plans, Significant Additional Upside Possible

  • Plans have upside potential in key growth areas, including Guyana and
  • On track to significantly increase cash flow from operations and asset
  • Return on capital employed expected to double by 2025

today said it has updated its growth plans and expects annual earnings
potential to increase by more than 140 percent by 2025 from 2017
adjusted earnings, assuming an oil price of $60 per barrel and based on
2017 margins.

“Given the success we experienced last year and the progress we’re
making on our plans, we have even greater confidence in our ability to
grow value for our shareholders,” Darren W. Woods, chairman and chief
executive officer, said at the company’s annual investor day at the New
York Stock Exchange.

“We are exceeding the pace of our expected progress on the aggressive
growth strategy we laid out last year,” Woods said. “We continue to
enhance our industry-leading portfolio, and are leveraging our
competitive advantages in integration, scale, technology and execution
to deliver long-term value for our shareholders.”

ExxonMobil’s updated earnings projection compares with last year’s
estimated increase of 135 percent between 2017 and 2025, based on 2017
adjusted earnings. Cumulative earnings potential from 2019 through 2025
has increased by about $9 billion, supported by further improvements to
the company’s investment portfolio and divestment plans.

ExxonMobil expects annual cash flow from operations to reach $60 billion
in 2025, assuming oil prices at $60 per barrel and 2017 margins.
Cumulative cash flow from operations and asset sales over the period
from 2019 to 2025 is $24 billion higher than what was communicated at
last year’s analyst meeting, including $15 billion from anticipated
asset sales from 2019 to 2021.

The company expects to double return on capital employed by 2025 under
the $60 per barrel price scenario described during last year’s investor

In the upstream, growth will benefit from ExxonMobil’s exploration
success and progress in development plans. In 2018, the company added
1.3 billion oil-equivalent barrels to its resource base, which included
additions from new discoveries and strategic acquisitions, mainly in
Guyana and Brazil.

In Guyana, the estimated gross recoverable resource from the Stabroek
Block is approximately 5.5 billion oil-equivalent barrels. That compares
with the updated resource estimate late last year of more than 5 billion
oil-equivalent barrels.

Additional Investor Day Highlights

  • In Brazil, ExxonMobil has built a position of 2.3 million acres,
    adding 800,000 acres in 2018.
  • A key liquefied natural gas (LNG) project in Mozambique is on track
    for final investment decision this year. The Papua New Guinea LNG
    project is progressing. In February 2019 the company sanctioned the
    Golden Pass LNG project to capitalize on the low cost supply of U.S.
    natural gas and the expected growth in global LNG demand.
  • In the Permian, the size of the company’s net resource is 10 billion
    oil-equivalent barrels and is expected to grow further. ExxonMobil’s
    production in the Permian is expected to exceed 1 million
    oil-equivalent barrels per day by 2024, an increase of nearly 80
    percent from last year’s investor day presentation. The anticipated
    increase in production will be supported by further evaluation of the
    Delaware Basin’s increased resource size, infrastructure development
    plans, and secured capacity to transport oil and gas to ExxonMobil’s
    Gulf Coast refineries and petrochemical operations.
  • In the downstream, the company is progressing six major refining
    investments to meet growing demand for higher-value fuel and lubricant
    products. Three of those – a Beaumont hydrofiner, a delayed coker at
    Antwerp and an advanced hydrocracker at Rotterdam – are operating. The
    remaining three – Fawley hydrofiner in the U.K., light crude refining
    expansion at Beaumont and a residual upgrader in Singapore – are on
  • In the chemical business, the company detailed plans for 13 new
    facilities to supply growing demand for products. Seven of the
    projects started up through 2018 and the remaining six are on
    schedule. These investments are expected to deliver 30 percent sales
    growth by 2025, largely driven by technology-enabled performance

About ExxonMobil

ExxonMobil, the largest publicly traded international oil and gas
company, uses technology and innovation to help meet the world’s growing
energy needs. ExxonMobil holds an industry-leading inventory of
resources, is one of the largest refiners and marketers of petroleum
products and its chemical company is one of the largest in the world.
For more information, visit www.exxonmobil.com
or follow us on Twitter www.twitter.com/exxonmobil.

Cautionary Statement:

Outlooks, projections, estimates, goals, discussions of potential,
descriptions of business plans, objectives and resource potential,
market expectations and other statements of future events or conditions
in this release are forward-looking statements. Actual future results,
including future earnings, cash flows, returns, margins, asset sales,
volumes, and other areas of financial and operating performance; demand
growth and energy mix; ExxonMobil’s production growth, development and
mix; reserve and resource additions and recoveries; project plans,
completion dates, timing, costs, and capacities; efficiency gains;
operating costs and cost savings; integration benefits; product sales
and mix; production rates and capacities; and the impact of technology
could differ materially due to a number of factors. These include
changes in oil or gas demand, supply, prices or other market conditions
affecting the oil, gas, petroleum and petrochemical industries;
population growth, global economic growth, reservoir performance and
depletion rates; timely completion of exploration, development and
construction projects; regional differences in product concentration and
demand; war and other political or security disturbances; changes in
law, taxes or other government regulation or operation, including
environmental regulations, taxes, and political sanctions; the outcome
of commercial negotiations; the actions of competitors and customers;
unexpected technological developments; general economic conditions,
including the occurrence and duration of economic recessions; unforeseen
technical difficulties; and other factors discussed in Item 1A. Risk
Factors in our most recent Form 10-K available on our website at www.exxonmobil.com.

Forward-looking statements contained in this release regarding future
earnings, cash flow from operations and asset sales, and return on
average capital employed (ROCE) are not forecasts of actual future
results. These figures are intended to help quantify the targeted future
results and goals of currently-contemplated management plans and
objectives assuming a constant real Brent crude price of $60 per barrel
through 2025. This price is used for illustrative purposes only and is
not intended to represent management’s forecast of future oil prices or
the price management uses for internal planning purposes. For the $60
crude price case discussed in last year’s analysts’ meeting and used for
comparison purposes in calculating the objectives outlined in this
release, we have assumed that Downstream and Chemical product margins
remain consistent with 2017 levels; that other factors such as laws and
regulations (including tax and environmental laws) and fiscal regimes
remain consistent with current conditions; and have otherwise developed
these estimates consistently with management’s internal planning and
modeling assumptions including future natural gas prices. For the
corporation and finance segment we assume expenses of $2.5 billion
annually consistent with the basis for the objectives presented at last
year’s meeting. The forward-looking statements in this release are based
on management’s good faith plans and objectives as of the March 6, 2019
date of this release and we assume no duty to update these statements as
of any future date.

Adjusted earnings, cash flow from operations and asset sales, and ROCE
are non-GAAP measures. Adjusted 2017 earnings of $15 billion as
presented in this release represent approximately $19.7 billion of GAAP
earnings minus approximately $6 billion of positive effects from U.S.
tax reform, partially offset by approximately $1.5 billion of
impairments for the year. For more information on the definition and use
of each of cash flows from operations and asset sales and ROCE in our
business see the Frequently Used Terms on the Investors page of our
website at www.exxonmobil.com.
Estimates of adjusted earnings, cash flows from operations and asset
sales, and ROCE for future periods in this release are determined in a
manner consistent with this definition but we are unable to provide a
reconciliation to any GAAP financial measure because the information is
dependent on future events, many of which are outside management’s
control as described above. Additionally, estimating GAAP measures to
provide a meaningful reconciliation consistent with our accounting
policies for future periods is extremely difficult and requires a level
of precision that is unavailable for these future periods and cannot be
accomplished without unreasonable effort. References in this release to
oil-equivalent barrels, net resources and the resource base include
quantities of oil and gas that are not yet classified as proved reserves
under SEC definitions but that are expected to be ultimately recoverable.

The term “project” as used in this release can refer to a variety of
different activities and does not necessarily have the same meaning as
in any government payment transparency reports. The term “performance
product” as used in this release refers to high performance chemical
products, including plastics, synthetic rubber, chemical derivatives,
fluids, and solvents that provide differentiated performance for
multiple applications.

This release summarizes highlights from ExxonMobil’s 2019 Analysts’
Meeting held on March 6, 2019. For more information concerning the
forward-looking statements and other information contained in this
release, please refer to the complete Analysts’ Meeting presentation
(including important information contained in the Cautionary Statement
and Supplemental Information sections of the presentation) which is
available live and in archive form through ExxonMobil’s website at www.exxonmobil.com.


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