2017 Shareholder meeting Morton H. Meyerson Symphony Center May 31, 2017
Robust strategy in a dynamic market Today s market long on supply Growing demand Brent $/Barrel 150 Dynamic markets, expect continued volatility 100 Plans robust for any price environment 50 0 '07 '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 Source: Platt s 2
World-class workforce delivering enduring value proposition Financial strength Balance sheet provides financial flexibility across the cycle Value chain integration Optionality allows capture of the highest value for each molecule Operational excellence Superior reliability and execution through disciplined approach and effective risk management Efficient cost structure Relentless focus on costs and capital efficiency Portfolio of opportunities High-quality assets; large inventory of accretive investments Technology leadership Enhancing longterm value through innovation and discovery 3
Long-term focus on rigorous capital allocation yields highest returns in the industry Upstream ROCE and Volumes 1 ROCE '07 to '16 Average Percent 30 25 Downstream & Chemical ROCE and Petroleum Product Sales 1 ROCE '07 to '16 Average Percent 30 25 20 Chevron 20 15 10 5 Total BP Shell 15 10 5 Chevron Total BP Shell 2.0 2.5 3.0 3.5 4.0 4.5 2016 Volumes (MOEBD) 2.0 3.0 4.0 5.0 6.0 7.0 2016 Petroleum Product Sales (MBD) 1 Competitor data estimated on a consistent basis with ExxonMobil and based on public information. RDS 2008-2012 capital employed restated in 2013. 2016 Chemical sales not included: ExxonMobil 24.9 MT; Shell 17.3 MT; BP 14.2 MT 4
Addressing growing global demand Delivering benefits to society Addressing the dual challenge: Providing affordable and reliable energy Mitigating climate risk Creating shareholder value 5
Affordable energy solutions are required to advance global prosperity U.N. Human Development Index 2014 Index X 1.00 Norway United States People Living standards 0.75 Bangladesh India China Oman = 0.50 Nigeria 0.25 OECD Non-OECD Energy needs 0.00 10 100 1000 10000 2014 Energy use per capita (thousand BTU/person/day) Source: United Nations, ExxonMobil estimates 6
Middle class to reach more than 5 billion people Energy demand Quadrillion BTUs 1,200 Demand without efficiency Demand growth 2015-2040 Quadrillion BTUs 160 1,000 800 Energy efficiency 120 Americas Mid East Africa 600 80 Other AP 400 Non-OECD India 40 200 OECD China 0 2000 2020 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040 0 Non-OECD 7
All forms of energy are required to meet global needs Global mix of fuels Quadrillion BTUs Forecast 750 Solar, Wind, and Biofuels Nuclear Hydro 500 Gas Oil 250 Coal 0 1850 1900 1950 2000 2040 Biomass Source: Smil, Energy Transitions (1800-1960), ExxonMobil 2017 The Outlook for Energy: A View to 2040 8
Global energy-related emissions are likely to peak and gradually decline Reducing direct emissions Energy-related CO2 emissions Billion tonnes Helping consumers reduce emissions 40 Estimate of Paris submissions Committed research to progress technology breakthroughs Effective policy to reduce risks at minimal societal cost 30 20 Rest of non-oecd India 10 China OECD 0 2000 2020 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040; UNFCCC COP21 Synthesis Report 2015; ExxonMobil analysis 9
Committed to research and contributing to solutions Research objectives: Fundamental science Proprietary long-range technology Inform policy decisions Collaborate with researchers at universities and national labs Participate in IPCC, National Research Council Active policy engagement, e.g. Climate Leadership Council 10
Innovation enhances supply options and enables efficiency savings Technology unlocks new solutions and reduces CO2 and energy intensity Global average intensity Index 1.4 2015 Natural gas reduces emissions Lightweight packaging Lower-emission, higher-efficiency fuels and lubricants Pursuing reliable, scalable, affordable, and sustainable alternatives 1.2 1.0 0.8 0.6 0.4 0.2 CO2 / Energy Energy / GDP CO2 / GDP 0.0 1970 1980 1990 2000 2010 2020 2030 2040 Source: ExxonMobil 2017 The Outlook for Energy: A View to 2040 11
Meeting IEA scenarios requires more than $11 trillion of investment Liquids supply/demand 1 Moebd 100 Reflects Paris submissions 80 +87 Moebd (IEA New Policies Scenario) 60 40 Existing Supplies Natural decline in absence of further investment ~2ºC pathway (IEA 450 Scenario) +57 Moebd 20 0 1 Based on IEA sources, excludes biofuels and includes NGLs Existing Supplies 2015 2040 2040 Additional supplies needed 12
Leveraging technology to bring benefits to shareholders and society Responsibly meeting needs for affordable and reliable energy Addressing environmental sustainability Investing in communities Highgrading asset and investment portfolio Pursuing next-generation technologies 13
35 consecutive years of per-share dividend growth Annual dividend up 8.8% per year over the last 10 years Announced 2Q17 dividend of $0.77 per share, up 2.7% from previous quarter Flexible share purchase program Annual dividend growth rate Percent 12 8 '07 to '16 '12 to '16 2016 More than $370B returned to shareholders since the merger of Exxon and Mobil 1 4 0 0 0 0 S&P XOM CVX RDS TOT2 BP 14 1 Includes dividends and share purchases to reduce shares outstanding 2 TOT s growth rates based on dividends in Euros; 2015 Dividend adjusted for timing impacts from implementation of scrip dividend program Source: Bloomberg
Risk management maintains license to operate and creates value Ensuring personnel and process safety Best-ever safety performance in 2016 Maintaining excellence in operations and project execution Effectively managing security and geopolitical risks Minimizing environmental impact 15
Understanding and addressing the needs of communities Actively engage with stakeholders Focus on human rights, community relations, and indigenous peoples Local hiring, training, and supplier development Strategic community investments in long-term social programs Education Malaria initiative Investing in women 16
Strategic choices across all business lines More than 100 projects in development 30% reduction near-term Upstream project costs 30% uplift cash generation from Downstream & Chemical projects 1 Conventional Heavy Oil LNG Increasing feedstock and logistics flexibility Upgrading molecule value Increasing higher-value products 17 Note: ExxonMobil is supporting the State of Alaska as it progresses Alaska LNG 1 Incremental 2020 cash flow from operations of 17 projects with 2016-2019 start-up (estimate based on corporate plan price assumption and trendline estimates), versus 2016 cash flow from operations (base business)
Growing opportunity base in the United States Evolving portfolio since XTO acquisition, about 700 KOEBD production 1 Growth in liquids-rich resources Montney/ Duvernay Advantaged Permian position Bakken Large, price-resilient inventory of drilling opportunities Capturing significant efficiency gains and applying technology San Juan Uinta / Piceance Raton Permian 1 Ardmore/ Marietta Barnett Eagle Ford Fayetteville Haynesville Freestone Utica/ Marcellus 1 M net acres Liquids-prone Gas-prone 1 Includes unconventional and conventional production / acreage operated by XTO 18
Significant opportunities from wellhead to customer Growing U.S. unconventional production Investing in advantaged logistics and manufacturing Advantaged feedstock, high-value sales Optionality to maximize value 19
Meeting global demand with leading Downstream and Chemical portfolios Expanding capacity on the U.S. Gulf Coast Growing advantaged crude and gas processing Manufacturing new, high-value products Improving logistics capabilities 20
Accelerated value capture High-potential exploration program Supported by proprietary seismic imaging technology More than 1.5 BOEB recoverable resource discovered Progressing multi-phase development scope KBD gross 300 Future potential 150 Liza Phase 2 21 0 Liza Phase 1 Sea floor view
Significant advantages; attractive growth opportunities World-class LNG project Potential capital-efficient, multi-train expansion Active exploration program Extensive social and environmental programs 22
Access to world-class gas resources Acquiring 25% interest in Area 4 with 85 TCF in place Tanzania Area 4 ExxonMobil to operate >40 MTA onshore LNG facilities Leveraging ExxonMobil s industry-leading project and operational capabilities Ongoing evaluation of 3 high-potential exploration blocks Malawi Mozambique Gas Fields Awarded to others XOM awards Area 4 acquisition 0 100 200 Km Kilometers 0 100 200 23
Innovation is critical to meeting the dual challenge Committed to fundamental science Technology development focused on scalable applications to create value Approximately $1 billion invested in research annually 24
Pioneering scientific research to improve existing supply and manage carbon intensity Improving profitability: High-performance computing Advanced motor oils, performance plastics Extended-reach drilling and hydraulic fracturing Pursuing innovations to reduce emissions and carbon intensity : Carbon capture and storage Process intensification Second-generation biofuels Proven technology leadership 25
Operating safely and responsibly to improve the world s access to energy Technology is the foundation of our business: Improving efficiency and unlocking new opportunities Meeting the dual challenge Portfolio of attractive opportunities Disciplined investing for financial leadership Positioned to excel in any price environment 26
Technology Spotlight Dr. Vijay Swarup, Vice President, ExxonMobil Research and Engineering
Highoctane gasoline 1940 Digital simulator 1950 Plastic 1960 Synthetic catalyst 3D seismic Mobil 1 synthetic lubricant 1970 Advanced metallurgy 1990 1980 Lithium batteries Low-sulfur gasoline 2000 Ultra-deepwater development Specialty plastics 2010 Ultra-low sulfur diesel Today Extendedreach drilling Mobil 1 Annual protection Tire rubber 28
Developing breakthrough technologies Mitigate emissions Improve efficiency Good science for sound policy Expand energy access Increase supply 29
Today s approach: High temperature, high pressure, and complex Our research: Novel processes and materials, less energy Oil Membrane Low-energy reactor Fuels + + Chemicals 30
Today s approach: Power consuming, complex Our research: Natural gas power generation without CO2 emissions Natural gas Power generation Electricity Carbon capture Electricity Exhaust (CO2) CO2 to storage 31
Today s approach: Small scale, competes with food and water Our research: Large scale, global solutions, non-competitive with food and water Sunlight + CO2 + H2O + Photosynthesis Biofuels 32
Committed to R&D Growing low-emissions portfolio Many external R&D partnerships Highly skilled workforce 33
Meeting world s growing energy needs while mitigating impacts Bringing benefits to shareholders and society Unwavering commitment to technology Well positioned to create value 34
2017 Shareholder meeting Morton H. Meyerson Symphony Center May 31, 2017