Exxon Mobil Corporation · NYSE:XOM
Exxon Mobil — Investor Day (March 2017)
62 slides from Exxon Mobil's investor day presentation, Mar 7, 2017
Slide 1: Analyst Meeting, March 1, 2017, New York
Exhibit 99.2 Analyst 2017 New March ExxonMobil York 1,meeting 2017 Stock Exchange
Slide 2: Cautionary statement
Cautionary Forward-looking Outlooks, including additions to See statements Frequently References reserves determined and Regulation ExxonMobil’s The 2estimates. Welcome a information other customers; under also number termcategory Item “project” and political financial projections, the as used G, to
Slide 3: Agenda
9:45 Welcome ExxonMobil Investment Upstream: Downstream 11:00 Closing 11:30 12:30 AgendaBreak Q&A Meeting Maximizing plans investment &concludes Chemical: portfolio case Building value on strength
Slide 4: ExxonMobil investment case
ExxonMobil investment case
Slide 5: Positioned for success in any price environment
Positioned Robust Today’s Growing Dynamic 0‘Plans 50 100 150 $/Barrel Brent 5Source: 07 ExxonMobil ‘08robust strategy ‘09 Bloomberg. market demand markets, for ‘10 forsuccess investment ‘11 long in anyaexpect ‘12 dynamic price onin‘13 supply any continued environment case ‘14 environment market ‘15
Slide 6: Three sustained competitive advantages
Three Competitively Demonstrated Disciplined Application Exceptional 6Sustained ExxonMobil world-class industry-leading investment of project operational advantaged high-impact investment business execution excellence case in performance technology the fundamentals
Slide 7: Competitively advantaged integrated business
Competitively Unique Mitigates Flexibility Integration Maximizes Strategic Upstream Downstream Research 7Chemical ExxonMobil industry investments §or to adds value Technology capture positioned investment risk synergies advantage in dynamic new guided Exploration Refining Liquids across opportun
Slide 8: Capturing significant growth opportunities
Capturing Significant Growing Investing Advantaged Optionality Asia 8Europe ExxonMobil SouthU.S. inthe America opportunities to advantaged feedstock, value maximize unconventional investment of integration high-value logistics value from caseproduction wellhead and sales manufacturing to customer
Slide 9: Capturing U.S. unconventional opportunities
Capturing Significant Growing Investing Advantaged 9Optionality ExxonMobil U.S. inthe opportunities to advantaged feedstock, value maximize unconventional investment of integration high-value logistics value from caseproduction wellhead and sales manufacturing to customer
Slide 10: Capturing value-driven cost efficiency
Capturing Sharing Leveraging Value-driven Organizational Effective Workforce Thousands 110 70 90 Reduction 50 1‘11 10Reconciliation 27% 30 ExxonMobil ‘12 70 ‘13 23% skills, cost synergies compared Consolidated $B ‘14 capabilities deployment management, knowledge, efficiency ‘15 investment in referen
Slide 11: Developing technology to create value
Improving Developing cMIST 1C Patented For Up High Relative 420X Family Broad Significant 11 onventional 70 ExxonMobil to use steel manganese 25% potential in-line of inservice weight compact, High steels remote profitability cost savings and cMIST gas Manganese applications savings investment apply
Slide 12: Addressing climate risk responsibly
Addressing Responsibly Invested Mitigating Developing Leader Progressing 1Constructively 12Since ExxonMobil in 2011; nearly carbon impact the products lower-carbon managing net engaging risks $7B investment capture equity from since of toour climate our help CO2-equivalent on and technologies 2000 b
Slide 13: Unparalleled financial capacity
Unparalleled Capacity Strong 2016 Continuing Flexible -1Only $B Aaa ExxonMobil 500 Shell 300 400 Aa2 Chevron Aa3 Total 200 A2 BP 5% 100 13 Leverage Total Leverage Moody’s ExxonMobil /10% /A- cash integrated capitalization, Capitalization AA+ ACapitalization AA- A+ balance capex 15% tofrom is and foc
Slide 14: Unparalleled financial capacity: free cash flow
Unparalleled Capacity Strong Continuing Flexible 1Only 2016 0X 10 20 30 40 50 $B BP TOT RDS CVX Cash (4.1) (1.1) (10.6) (4.5) 9.7 PPE Asset Shareholder 14 Other OM Competitor ExxonMobil Free adds integrated cash flow sales balance cash capex to /flow1 from investments focus execute distributions fin
Slide 15: Return on average capital employed
Return ononaverage Disciplined Long-term Focused Investments Consistentlyfocus development investments robust outperform oncapital torigorous range in peers of employed1 advantaged of advantaged capital over market long-term allocation dynamics assets projects Percent 25 ‘07 to ‘16, average ‘12 to ‘
Slide 16: Sharing success with shareholders
Sharing 34 Annual 2016 Flexible Nearly consecutive dividends $370B dividend success share purchase returned years $2.98 with up 8.8% growth of shareholders per to per-share program rate share, shareholders per year updividend over 3.5%since the growth last the10 merger years of Exxon and Mobil1 Perc
Slide 17: Investment plans
Investment Growing value plans through strategic choices
Slide 18: Capex portfolio
Capex portfolio Capital Broad Managed Flexible Selectively Continued by discipline 2017 2016 business emphasis advancing capex capex offocused opportunities line1 plan on to investment project $19B of on$22B creating execution program value and capital efficiency $B Chemical Downstream 30 Upstream 2
Slide 19: 2017 capex plan
Diverse Advancing Work Bakken Permian Short-cycle1 Upper Hebron Long-cycle Antwerp Liza Tengiz Odoptu Rotterdam Wolverine Beaumont Baytown 1Singapore Upstream Downstream Total $22B Chemical 19Short-cycle Investment program Zakum projects coker olefins co-gen specialties polyethylene expansion hydroc
Slide 20: Committed investment 2018-2020
Investment Committed Work Bakken Permian Short-cycle Guyana Liza Tengiz Long-cycle PNG Rotterdam Singapore Beaumont Other $70B Asia 20 Upstream Downstream Chemical Total Investment expansion -program Gulf $80B expansion basestock SCANfiner polyethylene hydrocracker Coast opportunities: to growing pl
Slide 21: Enhancing portfolio value
7.5 BOEB Enhancing Pursuing Executing Permian Papua Capturing Capitalizing Focusing New Delaware value on high-potential accretive the Guinea on highest portfolio opportunities opportunistic Basin InterOil acquisitions valueexploration opportunities asset to divestments grow acreage value 2012-2016
Slide 22: Growing cash flow and shareholder distributions
Emphasis Major Growing Flexible Maintain Capacity Cash CFOAS, flow projects Flow Shareholder investment to cash capability ongrow cash from $40 $57 flow and -flat shareholder generation short-cycle through to program pursue Operations $100 real flat Distributions2 realthe Brent1 & attractive distrib
Slide 23: Managing the business for long-term value
ROCE long-term Creating Managing the business value to achieve industry-leading returns throughout the commodity price cycle Maintain long-term industry-leading returns Integration Capture maximum value chain benefit, leverage capabilities Capital discipline Selectively invest in and respond to attr
Slide 24: Upstream: Maximizing portfolio value
Maximizing portfolio value Upstream
Slide 25: Competitive Upstream performance
Competitive Leading Demonstrated Disciplined Application Exceptional Culture Sustained Upstream ROCE 20 30 Percent 15 52Total 10 12016 25 .0Competitor Chevron BP Upstream: 2.5 Volumes Shell ‘07 3.0 of long-term ROCE industry-leading continuous toinvestment 3.5 ExxonMobil of project Upstream ‘16 data
Slide 26: Diverse Upstream portfolio
Diverse More 2.4 Liquids Over Production North Norman Kearl/Syncrude Montney/Duvernay Bakken LaBarge Aera Santa Golden Permian Chad Nigeria Angola EG Gorgon Vaca Conventional Heavy Unconventional LNG 26 Upstream: MBD Haynesville Muerta 70% 40% infrastructure Yemen than Ynez Slope Oil Pass Indonesia
Slide 27: Lowering costs and improving profitability
Added Improving Maximizing Optimizing Lowering Capturing Reducing 50% 120% 27Consolidated Upstream: unit ~750 cash costs operating economies unit reliability resource value facility KOEBD Maximizing opex1 profitability company in unconventional from costs capacity development reduction of incrementa
Slide 28: Attractive investment opportunities
Attractive Ongoing Improving Development Optimizing Selectively Relative Short-cycle Major New 25 3Opportunities Potential 2017 Current Increasing ‘93 1‘14 28–Upstream: >10% BOEB 4 opportunities -BOEB projects 2018 Average rate Size focused reserve portfolio cash unit value resource investing market
Slide 29: Unconventional portfolio
Extensive Continued Approximately Large, Well Liquids $40/B $60/B Production Montney/ Uinta/ Bakken Utica/ San Raton Ardmore/Marietta Fayetteville Eagle Gas-prone Freestone Liquids-prone Haynesville Barnett 321Permian3 29MUpstream: XTO Includes Juan net inventory Ford Marcellus or Piceance resilient
Slide 30: Strengthening Permian position
Strategic Strengthening Over 1Q2017 Multiple Contiguous Ideal Ultimate Permian Resource Robust, 2016-17 Delaware TX NM Platform Central Basin Midland 2014-15 Heritage Hydrocarbon 30 Upstream: for 140price-resilient acquisition: Acquisitions Transactions resource Acreage capital-efficient pay prize:
Slide 31: Permian development cost reduction
Increasing Relentless Focused Maximize Support Optimize $/OEB1 72% $/Lateral 19% 20 46% 3210800 31 014 Drilling Represents November 10 Upstream: 400 Lower Reduction 2015 next-generation 30 research Foot field & lateral focus Permian 2016 D&C Completion 2016 costs Maximizing 1200 development in0on le
Slide 32: Significant drilling inventory
Significant Growing Inventory1 7,500 $Wells 2,500 5,000 2016 Net 800 KOEBD Compound 0400 200 1‘15 32 40/B Bakken Horizontal Upstream: ‘17 production 600 Heritage Delaware 10-30% $60/B ‘19 ~20% inventory for unconventional annual ‘21 drillwell $40/B Delaware/Midland Maximizing Return Delaware High-si
Slide 33: Major projects
Major Investment Nearly projects 850 working returns 30% 1near-term Aspen Heavy Conventional ExxonMobil LNG 33Based Upstream: KOEBD reduction projects Hebron Oil 100 >10% in on interest project development flexibility 2/1/2017 isMaximizing atLiza portfolio supporting current capacity costs Neptun pr
Slide 34: Excellence in project execution
Excellence Proven Applying Effectively “Project Concept Cost Execution Superior 75% Source: 34 Upstream: Competitor control advantage ExxonMobil Essentials” design global execution innovative in managing project Maximizing integration Average inofapproach project techniques /execution contractor cha
Slide 35: Guyana: Liza phased development
Guyana: Phase Greater –Multi-FPSO, –FEED KBD Sea 35Liza-4 Phase Upstream: floor Gross 1 than under start-up 1: will Rapid view 100 300 1test ExxonMobil-operated Maximizing way; BOEB -120 development by 150 1.42020, Phase KBD; 0BOEB recoverable Liza less 1portfolio attractive Phase FID high-side ofth
Slide 36: Guyana: Stabroek exploration potential
Guyana: High-potential Payara Successful Payara-2 Snoek Additional Multiple 0K US 3000m Kaieteur 36ilometers Upstream: GOM prospect discovery Stabroek World-class Canje plays appraisal OCS well wildcats 15Maximizing 30 to exploration Payara Block currently test test inlater planned December confirme
Slide 37: Papua New Guinea
Papua 20% Capital-efficient Discovered InterOil Significant Highly Growth Active P’nyang 37 Upstream: PNG New exploration competitive in acquisition XOM net LNG advantages; Muruk resources Guinea: Maximizing exploration interest plant multiple discovery program cost with Development at capacity Inte
Slide 38: Industry-leading exploration
Industry-leading Enhancing 16 Resource Finding $1.27/OEB >60,000 1seismic Exploration 2015 2ExxonMobil 382012 Pending BOEB Upstream: – 2017 -data cost km2 2016 additions1 final the acreage in (5-year resource continues Maximizing portfolio 2016 contract resource average1) since additions towith nego
Slide 39: Upstream: Maximizing portfolio value
Maximizing Well Large Pursuing Investment Applying World-class 39 Upstream: positioned andaccretive high-impact diverse discipline operational portfolio Maximizing to portfolio generate newvalue technologies opportunities excellence portfolio provides value through value investment the cycle flexibi
Slide 40: Downstream & Chemical: Building on strength
Downstream Building on strength & Chemical
Slide 41: Delivering premier Downstream & Chemical performance
Delivering Premier Demonstrated Application Disciplined 1Sustained 2016 Downstream 41Competitor Downstream Chemical integrated industry-leading highest investment of& data operational high-impact sales Chemical & estimated Chemical: Downstream returns not included: ROCE excellence in performance tec
Slide 42: Integrated, advantaged asset base
Integrated Advantaged 4.9 34.9 Chemical 126 Lube Refining Major 42 Downstream MBD KBD MTA basestock chemical refining capacity capacity manufacturing asset &refining &chemical base Chemical: supports platforms Building fuels, lubricants, on strengthand chemicals value chains
Slide 43: Efficient operations
Efficient First Industry-leading $1.5B Expanding 1Source: Refinery 2006 43 ExxonMobil Industry 70 80 90 100 Constant Downstream quartile –annual 2014 Solomon operations unit foreign midstream Average refining cash cost &operating Associates; savings operating Chemical: exchange and unit access feeds
Slide 44: Increasing high-value product yield
Increasing Growing Technology Doubled Expanded Providing Further Higher-value Global 1Planned Future ‘16 ‘14 ‘12 ‘10 ‘08 ‘06 100 120 140 160 180 44High-value Downstream product 8% investments premium production advantaged high-performance higher-value increase delivers products yield, & distillate C
Slide 45: Growing lubricants and fuels sales
Growing Creating Access Expanding Synergy-branded Synthetic Volume, More ‘16 ‘14 ‘12 ‘10 ‘08 ‘06 100 150 200 250 Largest 45 Downstream than to producer indexed value premium lubricants higher-value doubled retail for &network of fuels our Chemical: sales high-value lube sales customers program chann
Slide 46: Maximizing advantaged ethane feed
Maximizing Processing Capturing Expanding Delivering U.S. Source: ‘16 ‘14 ‘12 ‘10 ‘08 ‘06 40 50 60 70 80 90 Industry ExxonMobil 1Percent 46Includes Downstream ethylene Jacobs liquids ethane value specialty 30% feedstock production Consultancy & more through and Chemical: manufacturing gas ethane adv
Slide 47: Growing chemical product sales
Growing Increasing Supplying Leveraging Positioned Metallocene Volume, ExxonMobil 300 1Global ‘16 ‘14 ‘12 ‘10 ‘08 ‘06 100 150 200 2250 47Metallocene-based Sources: Downstream chemical GDP indexed differentiated diverse premium IHS toglobal growth products metallocene serve Chemical & growth market s
Slide 48: Major investment projects
Major Investment 30% Cash 200 Refining 4.1 Chemical 1Increasing 48 business). Incremental Downstream MTA KBD uplift generation projects volume capacity feedstock higher-value driving 2020 portfolio & from improvement Chemical: additions growth cash and major products flow logistics across projects1
Slide 49: Downstream & Chemical: Building on strength
Building Focus Driving Capturing Growing Selectively Generating 49 Downstream onoperational on high-value business advantaged cash investing strength &flow fundamentals Chemical: efficiency products across from feedsdiverse value Building delivering chains portfolio on strength superior results
Slide 50: ExxonMobil investment case
ExxonMobil investment case
Slide 51: Enduring value proposition
Enduring Targeted Focused Disciplined Improving Positioned 51 ExxonMobil on investments value resilience tovalue investment excel proposition investment growth inof to any for portfolio maximize price financial caseenvironment profitability, leadership returns, and cash flow
Slide 52: Break
Break
Slide 53: Q&A
Q&A
Slide 54: Reference material
Reference material
Slide 55: Enduring value proposition
Enduring World-class Value Optionality reliability 55 Reference chainvalue and allows integration workforce material execution proposition capture delivering Financial through of the effective highest strength distinctvalue competitive Efficient risk management for each costadvantages molecule struc
Slide 56: Energy demand outlook
Energy Long-term Middle Non-OECD Efficiency Without Source: Global Quadrillion 0.9% 750 500 2015 250 0T 56 otal Reference 1.4% -0.1% to Non-OECD 2040 energy Outlook class 2040 ExxonMobil efficiency gains view Average BTUs nations energy more material demand guides of keep OECD than gains, supply use
Slide 57: Energy mix outlook
Energy All Oil Higher Strong Energy-related Source: Global Quadrillion 0.7% 250 2040 2015 200 150 100 50 0O 15.8% Renewable1Wind 57il Other 2.6% Reference forms and Gas -0.1% 0.6% 2015 1.5% Average growth LNG energy oil Outlook natural Renewable ExxonMobil Coal of demand toBTUs energy trade Other 20
Slide 58: Operations integrity management
Committed Ensuring Effectively Minimizing Maintaining Safety Leadership Monitoring Policies, Risk System Management Integrity Operations Accountability 58 Health Environment identification Hazard Reference management assessment Security standards personnel managing & to &environmental excellence mat
Slide 59: 2016 results demonstrate strength of integrated business
2016 Demonstrates Best-ever Earnings ROCE Cash Capex Dividends Workforce Employee 0.1 0.2 ‘12 0.0 1ExxonMobil 59Source: Reference Industry ‘13 results flow $19.3B 3.9% ‘14 $7.8B American safety and from paid Lost-Time ‘15 material strength Contractor ‘16 to operations performance shareholders Petrol
Slide 60: Generating strong free cash flow
Generating Capital Strong Provides 1Supports Free ‘07 $B 0-20 10 2016 XOM -20 Proceeds ‘16 60 10 Competitor ‘12 Reference Asset tocash free CVX ‘16 to long-term discipline flexibility reliable from ‘16 Sales cash flow1 free RDS material data flow 4.3 cash and free TOT yields estimated 2.8 to offlow
Slide 61: Maximizing value through technology: drilling
Maximizing Global 5Applying Vertical EM 20,000 15,000 0Industry 25,000 Horizontal Hebron 61 000 5000 Reference Sakhalin application 10,000 topsides Depth Wells leader more Reach learning Wells material 15,000 (ft) with than (ft) 10,000 of810 curve industry-leading 20,000 ofyears 10benefits longest-r
Slide 62: Consolidated Company cash opex reconciliation
Consolidated (millions Reconciliation Crude less: Depreciation Interest Sales-based Other Components From Production Selling, Exploration Total 62 Reference costs Consolidated EM taxes oil expense general of and Consolidated and and dollars) taxes expenses, of and Company material product for of oth