Exxon Mobil (XOM) 31 Jan 232022 Q4 Earnings call transcript

Good day everyone and welcome to this ExxonMobil Corporation Fourth 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.

welcome fourth and call. XXXX everyone morning to quarter ExxonMobil earnings Good for us Thanks today. joining

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

are remarks website. our prerecorded and presentation available the section Investor on of Relations Our

be earnings will by Our location fourth in same once release news quarter the posted transcript, is the and joined available. it's

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

forward-looking presentation, we'll two. so the to During you read cautionary make slide comments, on we statement encourage our

also Additional information the end supplemental our comments recent these our information earnings on to of most posted are slides, the we risks Form website. XX-Ks that Please on provided apply listed XX-Qs. the in uncertainties at is and which and that note

in Outlook can under and as tab. mid-December. We we Sustainability Also, reminder, the a them Report, presentation, our Advancing report, our online website in them Solutions on today’s Climate and Energy Sustainability posted reference find you

XXXX comprehensive annual for already in won’t the executing Last Day we’ve out past plans. we held Investor the is part as XXXX. Corporate hosting our Plan an in Update laid an in be March. through Investor Lastly, XXXX of company Day December, We plans and on these

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Darren. hand it over With that, I'll to

morning us thanks and today. Thanks joining Good Jennifer. for

society, not start to of XXXX our want the Before what commitment, results we morning. company, Their people. covering drove I this hard reported critical strong the but work needs and are meeting the by recognizing to only to our results,

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the We and with these today. through pandemic into investments continued

improved on and industry-leading came our employed, year, asset changes, cash portfolio, This organizational strong capital flows, earnings, deliver industry-leading returns. shareholder return total performance together and operating results; to

cash our XXXX, higher we Excluding a previous year best than performance management. with structural lower reflecting to since record asset sales, profits flow we our upgrades despite in delivered revenues, product and expense And, disciplined point XXX-basis cost reductions, improvement merger. the margin, had mix, our profit

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several December, online publications. we In updated important

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to that, me With let over Jennifer. call

you, Thank Dan.

Instructions]. [Operator Q&A. to move let's Now,

question. With that, first Jennifer, please for open lines our the up

question-and-answer [Operator will you, session The Ms. be electronically. Thank Driscoll. conducted Instructions]

first with to Wai first I Borkhataria RBC. apologize. -- We'll to go go Jeanine We’ll with Biraj

Hi Two taking there. questions. things. for my Thanks

Permian a one the offshore the on space the your can most environment, lot ExxonMobil there. bit if I runaway of you one, little Obviously, the is First wondering Darren a talk in was active inflation. comment headlines about there. gets the

to sense want seeing what offshore? a in of I you're So, just get inflation

the downside? thought CapEx adjust what bit there, be I be as you'd adding are have versus the And or a there have on would the guidance? it there. risks But XQ above in CapEx the inflationary is XXXX how pressures little to growth CapEx XXXX question probably upside shouldn't and XXXX annualize second XXXX to obviously mentioned, But would then and you. if Thank And contingency the much this. seasonality is have you I take them, the do numbers guide, I for I

Yes, Biraj. good morning

just end move doing. and comments increase With of we'll that respect Let that think just at in look range given a the which you the the me question last that first. we've with I with is the if range, be CapEx, we're made slight I -- consistent at we've given, and the your work start comments I then to to upper the indicated

that we've continues pandemic. to is over plans range consistent broader would of and we when the I given the the But with our established reiterate pacing that with came fit the well years we that out

worked plan good about progress As our I we're projects efficiencies I lay with to really would making, CapEx. we organization how mentioned with And for continue those contractors out gaining today before, feel investments. a to had you the with progress that our tell the we're we our

If any you offset basically take costs we pause to the we maintain to the had that going at due of forwards. level our to of of look spend productivity those same the pandemic,

something organization, products, doing. the So, of real and proud projects,

of you if expect to update sure continue in plans our the you all to range. stay as And that that would we'll and stay obviously, develop years come, aware I make within So, that. changes, to

respect came seeing we the collectively of make with to capturing, is that obviously no plants. organization businesses the had, we scale point essentially, say, from we purchasing standpoint, task. if what power an are standpoint, I We're some that an which one to advantages With easy from the the in were look expense I'd able did expense and essentially, the at offset you all synergies inflation, on operating the year-on-year, was would inflation

look if cycle of where the different we're the think short -- when you and we is the using. the function around engage the there's chose activity. mean, the and you a I to it's the really look that engage of projects Permian, at if a on at equipment contractors lot it I world,

area pricing, the like And of and we're business kind really business, that hot. to of and be parts parts of pressure supply/demand one so that tight other seeing not so on demand our Permian, supply less seeing pressure the tends really, in puts same of the gets that there's pressure in and the other that's

to can But areas, make contracting partners have sure us. size all make we're long-term the the long-term using I that are our partners game with with those that long that check keeping we think playing we the and here those of in commitments we that have that the in and plans business our and we're

good anything think to capital keeping done a high, we've pretty pretty I productivity So, feel you Kathy, about of want job that. good pretty add?

thing Just kind CapEx would a you annualizing the because it of I'd and bit really I and tend expense the about exploration in the is caution we prorated taking years. quarter higher fourth other and the of fourth run the expenses to add kind over and quarter

emission spool starting so in billion are Overall, Payara we up. about right of we a we to increase it. Corporate see be part December, and plans XXXX there. where XXXX. pulled in billion expected obviously, $XX we one forward, when about we to it our spending to that in is an have bit year-over-year, at And said spooling more in a been our expect little little came Plan because about up $XX we also talked has China And to expected

So, with we're right we've you. very expectations and guidance I'd our say now consistent that given the

Okay. color. Thank the you for

Sure.

We'll go next Wai to Barclays. Jeanine with

Hi, morning. question. taking Thanks good for our

Good morning Jeanine.

probably good imports margins? on that Darren. we're how And XXXX. do between in there's refining dissipate. on particularly the is potential you Xth incremental supplies? there's take tightness and the on guess will refining Gulf morning Thank positive product as was a morning BTO exports likely of EU a your Coast margins Russian nice [ph] what to the for then February Good downstream embargo impact into in Russian diesel thinking moving and Questions But there's pieces in tailwinds account which number think your you. And the I footprint, Europe Kathy, need also

that take I'll Jeanine. Yes,

-- shutting then behind available impacts and the driven driver capacity of that as and think is recovered. we've not I capacity start has just think margins I general of refining the that seen by in the with market late the demand down here having pandemic

the wait I tight, expansions think out stay remains to So, and it we Middle world will primarily online, pretty the come refinery tight additional while Asia and in East. for

the -- needed. products be the are the impact to short-term the potentially At and day some going have end those think ban Russia Europe products of I on going could into implications. that

disoptimization really out. efficient to it market the So, around logistics, is got chains systems pretty lined it, the I'll most logistics where we've and supply call efficient is and

system and that in it's ultimately, you itself We're of to of a and costs disrupt do how disconnects and but And because the a stabilize, I logistics what I reoptimize -- and those think of kind to optimum going I the higher see stable. will see in discontinuities that's question that’s to -- play manifest -- we'll know moving that -- less just I short-term? how does disruption the market going then read that don't your approach, expect more out.

So, a question be just and I be the there'll don't systems long-term a to impact, then there's think a how it'll it takes for short-term long rebalance. one

shortness the the up growth severe with economic on play out of that's and recessions that economic with its much going here and China the coming this year, and refining COVID probably fundamental the to view more take then the and you is impacts lockdown how think and are role. picking bigger to a there I economies

XXXX fairly If year high manifests demand which a I and mean continue economies grow, tightness margins higher into itself continued going think up, as will to going see and we're picks refining potentially margins, to that this well.

Great. Thank color. Appreciate the all you.

Sure.

next Goldman Mehta to with go We'll Neil Sachs.

and day. the XXXX, to some getting outlook wanted spend time over remarks for prepared XXX,XXX I barrels the you made some Darren you, a comments Thank Yes. to in on Kathy. Permian about

thoughts guess about XXXX. should growth we on think I and where just volumes But plateau? your ultimately, as we about think about then XX% that's So,

time, would back Yes, take thanks, to production were the day to and that we've we our said Neil. about I XXXX barrels plan X to Permian you grow XXXX. strategy in million of was when talking a by our at

a of objectives delay there's lot said, years. pushed to those hit, our going two a out by plans about When basically we the be and pandemic in

So, XXXX from XXXX. moving to

about production my will our day million now If you'll plans, by XXXX. that barrels forecasting reach we're look comments Permian X at the and a

to all comments that introducing. very way and in back the was much pandemic then around line, And the XXXX. So, going the made delay that the we I

context think about in that think development. the So, we're the I that's doing and to what Permian

production we about the at into production. and drilling look you organic I'd If in XX,XXX day. as as XXXX, added inventory. was And day well barrels XX,XXX what number, of a very call, clearing similar development our DUCs barrels XXXX, a that part

So, as in on production, higher-priced to not to those on pandemic, down. inventory wells spend then concentrated incentive inventory bring concentrated that bringing were obviously, we so got were environments, of DUC we drilling. our our and as and we a into clearing lot on production the and we so bringing And

next As to we can and that rebuild we get as to years. we're the go going level year, through then next into maintain that inventory, several go we use an optimum

of we're So, strategy a out. that's how of working kind

about, that's think That's it, fluctuate, of day annual that we'll getting -- or million XXXX, rate. not out. X%. at playing year, kind barrels to growth X That's going to how see be ultimately plus that's magnitude going of kind to compounded you by If order call of steady a that'll every minus XX% roughly

we one moving is any bottom-line I at a how production have that development anticipated. year's specific and plan be And pace we in that the function manifest basically think will But plans timeframe. the we're plans those of development on themselves

continuing got we've to developments fact, operational improve doing work technology ongoing in with to improve to the at the we're of function hopeful a that's in what bottom-line either to bear But bring effectively lower continue there. capabilities production. see higher and Permian and efficiency, our productivity that cost, I'm technology as continue that focus we'll more production we And or more to on the and

Darren. Thanks

go Devin to We'll Stanley Morgan McDermott next with

Hey, question. for morning. taking good Thanks my

Morning.

bit that So, XX-year it's have China slide talk where I a one if there you're margins. look range. seeing a ask move if being deck, at business the little below could margins was about in you early wanted and to the and trends driver the for positive potentially chart the as the of that we margin with the portfolio wondering the Chemicals reopening that I about into are you still part you XXXX

to at think noted the years just you also then year projects growth the we growth on a some the the Day Complex few the Investor year, and Baytown, projects you And the I over about earnings this later coming years of last and talked talk but get growth Chemicals that well? China through discrete few that next of still got as there some out, drive progress

Yes, sure.

maybe the and you the think right. of which sides I'll side the you're of equation, I Chemicals. just with equation demand take referenced both start with

lack think of is of of I and lockdowns with year in one a the equation. that we impact the side saw on growth the the you the big, things know, chemical market China, an last as was that China demand which had

have move back economy thinking If pick well. see the widespread side as milder world, in we'll an as going I recessions the holds recessions demand that's this again. up see open are think current people that a benefit that'll the we how conventions demand expectation around than continues are the deep again, up, how anticipated, and and chemical and on My and to to into of a impact. function year China And then whether the

hold what's margins there online. put margins, part as big into investments. a is now which of today, of leaned very chemical lot at pandemic, suppressing got investments side, XXXX, that came into projects we the supply a of And seeing we get on saw we and went that deferred margins and out strong pandemic a as -- coming were came out of those lot capacity chemical look a you in the XXXX, you're and From

So, at had this demand coming where we've got we've on slowdown. a time capacity large some same additions the

of that with coming we're out what pandemic. seeing I but what here play pandemic, by typical would say kind So, out, exacerbated the commodity that the anticipated I effects is still itself in we somewhat supply/demand playing out swings what is think had the inconsistent of not of cycle the

And will it'll so back and growth it'll but be on time it get fill tight a markets for capacity, -- demand little get trajectory, take again. that pick up will that to the

we're Chemical how about that's thinking So, the business.

pause really where done had respect about in feel we know our to how With projects, as spend choices in we capital. some the those, to out you tough good of before to some our never of make -- projects we coming had midstream. terms pandemic We'd stopping that about

on in and bringing you continuing organization a those pandemic. job preserving the putting that But we're in work basically those now where great at, laid out I with efficiency, pause, to did on the to the I'll with we're back again, contractors tell drive of plans we've line

middle We unit we got just year, and XXXX. projects, We've on Baytown brought and expect coming that is Baton polypropylene to good in and this One progress in Vistamaxx, Rouge. anticipate on LAO which of here really our China the making on then come

good about those had anticipated. I So, think we feel we really are investments on path the that and all

Great. Thank you.

bet. You

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

you. Good Good morning Darren. everyone. morning, Thank

Doug. Morning

windfall I don't to try resolution like you of to would treating one treatment what or European to want show as of are, non-recurring. know I you you taxes. as but -- and Kathy, and I this, I'm some two these your there get you about understanding suing the take guess ask which whether

cash you my my you that thinking you question? But taking any you through rationale impacts question. can this? incur clarification to us peers would walk So, in for about your guess, quarter the are I And be your can had current thank versus how

Sure.

there Obviously, first taxes incremental first Europe just some about wouldn't passed I'll I'll we that had the quarter, current had material earlier this talk have impacts. in were year. countries In financial So, impacts. the

point an as to UK, I'll So, the Italy example. and

been those have accruing appropriately. would we so And

associated as You of with taxes. part seen billion that European items identified booked $X.X would we XXXX. Overall, our additional have increased

in overall occurring took the end just and accrual payments on took depends will in the of doesn't hit in impact we cash terms XXXX the It and both individual just XXXX, up in the we countries. that XXXX. Now, those really

not But say EU and overall back happened at if needed, said, and I an take what and it's legal opposite is the looked of we what step it's in the right.

needed what's in a instead, now and penalty broad is the place been right what's more is sector. So, put on supply energy

that recently happened United the to more industry, decelerate Inflation States investment, needed, lowering where Act, to put There especially the into with both out policy industries what's those that's in greatly you're with accelerate still in in contrast the and Reduction you right. industries. incent and see are I'll So, technology CCS, of nascent, pretty flow terms emissions already areas start things like to and hydrogen investment seeing that's

engaged And would and -- I the we've And we're is to in a governments Europe, uncertain appetite Europe. less is stable. Doug, throughout to I to I environment first and investments think, continue more what respect a invest challenging market with just do industries' impact sensitivity with place the future becoming to add, obviously, there on think been in

the be Europe. in was of going because will on an not has there in that to the make in. industry propagate the we requires makes of size over that you're horizon investments think stable I impact many the certainty and pull back time policy investments some the another negative that you're into when So, concern my world to it making reason around this will see industry just them sure on that begin some their going And to I'm then yet industry, and this suspicion be

manifest consequences come of be negative there for from that sense and my will as a a lot that lot itself, unintended is this less appetite this. that doing So,

so much. your guys. Appreciate perspectives, Thanks

go to Syme We'll Alastair Citi. next with

business? of very Darren do sort this just see Energy competitive of Products, you behavior upstream Solutions, comments competitors' broad the [ph]? a but Thanks is the you I Darren see Carbon much landscape make you sort and know some about question, could Kathy. across high-level Low how

we're start this philosophy is a may morning, the broad maybe we I off to a on important profit improvements I think margins. mentioned strategy the last and us respect and Sure, us. as executing profit you've the And here for focus years. see this with I in paying seen area real And that that obviously over five margins that just CNBC yes, the with seeing

we about revenues XXXX, had than more of XX% XXXX function in revenues from in made higher at the net when profit that's XX% we margin, today, this and got profit -- to look we we've year margin where extremely improvement with in If we last less money our net XXXX. really a went --

a the I that position doing of reflection think we've So, work ourselves been to better competitively.

pursuing go I the advantage curve. we're projects really left-hand are of very each side making sectors our that our in, that been where upstream sure of with industry -- If on that the the the down of has emphasis start I'll are versus we're and cost importantly, supply

advantages portfolio. are barrels some don't what and that cost. in we making that bringing the the that's strategy doing. the of can't can businesses that call cost we're cycles, to competitively are And our predict lower exit But So, we go our irrespective the find we and on competition, ourselves then is the there that can't we timeframe. of where positioned, our sure markets barrels and is environment will the and that control That's been what hybrid those in, we those of portfolio, for versus the strategy where we see that the we've been over

that. seeing I you're the think benefits of

barrels. I the others out release I our press resource the is used owners producing paying We've around leaning very as well. lean think, think in the to capabilities commitment recognize effectively that our And that that language been of focused to world use industry and kind and off to also when in respect I on with

portfolio. I and got we're there. I the really good a portfolio, there, of doing in think we're that's we've of very We I cost think what quality the supply, that in got not quantity projects So, And competitive the only the but well-positioned. think, advantage

grades, products it's them and business, We develop then strategy and performance upgrade to -- a performance We're really those so performance our facilities, high on margin. lot out therefore higher we're of leveraging commodity that Chemical continuing to on that's poll a play build in technology have high-end slate a That and -- our invest we to making project well. business. sure that world-scale our continue out the customers fill In focused the products. start Chemical see value to and around on transition and to quickly there to strategy products and continues high-value product in products that

yield In products our in really refining, that make we and plants. it's the evolving around the

contrary uncertain position we conventional that slate that very make wisdom of continuing a in refineries meets I products. of to society the there, future as out the maybe think and across to investing think today some needs diversified well a we're that doing very again, the actually products for

think fuels and chemicals, So, products, lubricants.

you at to to time one see of shift we've is produce that production. fuels good our And project line we many, refinery many got other the really transition, then really competitively have market evolution. that Strathcona emissions to to as And low piece just example. same concepts that pacing. it's of base us up, doing demand advantaged carbon that function a the And But low in mind And in a investing the demand. the picks address production with

making for big to think the these footprint refining I advantages emissions heavy going that's in that low be fuel. again, competition, of advantaged And needed rest versus

So, we're there. well-positioned I think

and Our the business technology were that the with is products Chemical well-positioned performance making.

leg So, a up space. that got think we've in

the lot opportunities. low around think, IRA this with low on focus space, US. there's real a solutions, lot more in then carbon a of carbon here particularly a But interest, I activity the finally of And world, the in generally,

think very we're I there. well-positioned

project of have game that This have, a we for experience -- we that capacity operating balance and This world-scale requires the sheet is kind projects require have. these and of we technology require are expertise kind the large startups. is that size the that not

of, lot our a needed say, with in skills that market capabilities and and there's lend I'd are themselves and So, this consistent advantages. capabilities

knows partner want your do to plus to going you I say on counting if sequester very So, but while a and supply a for for I who's in the XXX to take you're somebody low that it'll and years, of for convinced been am about that. around And how that think we carbon out, I think business. think well solutions to positioned carbon security while competitively shake are

to we're do I company that. think the

they're guarantee to they're to you want going have the going who's If there. they available barrels that to when somebody say you,

people think well. that. pretty feel our good as to deliver ExxonMobil on will to look I position I about

Thanks very much.

Alastair. you, Thank

Stephen to ISI Evercore Richardson next go We'll with

I Couple how you could may. the the just about balance and in the address is wondered if for sheet cycle. Kathy, if Thanks. One thinking we're differences

obviously, is significant I cap, to debt know but at and not net notable. X% your So, target, it that's deleveraging

was also at you. willingness you the So, to there as Thank just time do balance if history delever to in of unlevered? the drag of and could a sheet kind continue a what that sheet to of corporation's was you where acknowledging effectively wondering address balance bit here a your think start the long point

and need the So, competitive we we as I saying we balance to very sheet would firepower we've got much know a advantage, start all to will downturn, by all flexibility during need, balance part view right the fortress a inevitably we our come. have to which manage sure the upper and then we the make the build that of sheet, cycle,

the sheet. that's how think we So, balance about

cap look learned I a you have made our to number already lessons we've have willingness that debt we billion said, about net progress. terrific higher a think if this during year, we we you down We obviously X%. overall, also pandemic cash a mentioned carry to balance. debt, mean, the paid is $X and about I of of

now. balance cash around billion Our is $XX right

very ultimately depend to We've the sheet competitive for balance having market point sure know priority how I'd is making projects, is we're cash advantage quite of a projects, our us. about advantaged clear having investing the very been strong at in rich forward. really that consistently We're right. we're any environment say time, good a top going capital a list in So, of But bringing overall, very at in is advantage on ensues. terms which priorities and portfolio we in our allocation given position balance a of

$XX we're how we've with distributing very think rewards program. dividends a ultimately in XXXX, approach up and our about sharing share repurchase ended shareholders billion $XX we taken in billion I And in and a balanced

that So, dividends just to returning we efficiently and sustainable shareholders. ensuring have competitive growing cash

of on to focused cycle very about that's we a indeed expect it. us we're that's where and the balance you very we at ensuring And are think So, have. strong how see would the we that sheet, part what

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

question. the taking for Thanks morning. Good

Morning Sam.

actually, really at to stages a because saying. early operators the about just which that level, M&A very asset in be corporate number ask is gains but than a are and are productivity unique lot Permian, the a describing other classes, of are you're you might different not advantages of I'll that individual of ExxonMobil, in even example, in efficiency for that

value, like lot there's a the that. at consolidate So, forces but countervailing it of time, other opportunity against create same and seems to a

the see? balance very Thanks. it and point, also this of landscape it'd of on what right set at And opportunities maybe overall is well M&A up in hear obviously Kathy's comments you sheet, just great So, then context the be the would your thoughts now. to kind on which be

Yes, got add. touch -- sure. to has and that anything if on maybe Thanks I'll Sam, see Kathy

the at where which area. looking take exactly bring put can able right acquisition at is to bring beyond our where skills think we're advantage acquisition and capabilities I of what additional the without is point that's us. we above do to And that we and one, and the targets. value be leverage you make our what would we good really That's focus can potential what focus value to we is where

to standpoint, provide time, buyer work when can talked I think Permian area we with And align the And you a win we a I opportunity in think about, from around values expectations the in as the start as right. do leverage value we been markets, well that are will a think we've seller standpoint. doing we the that

and of to where a element an that there's at it's commodity so top go buy difficult And of cycle. the in

be this to But continue at least Permian. I'd I is really of longer bringing the we tend see to undeveloped into that say for of price priced in it -- in in consider of to want You more, value got opportunity see term you've being cycles when the want one or focus the you assets, space. resources one when things to the look for we on where to functions that'll you

the think and, it's lot time of respect existing obviously, whole aren't opportunities look there Carbon at. but there that Kathy challenged a in space, with in to Low Solutions to space, assets, a on business, it's with bear early anything the but a Chemical it's develop I that we continue technology to in there? space very bring something could we add that to that

to we divestments those would on made overall. you high-grade we're portfolio market only a what's ultimately, is saw buoyant others environment, that number more of add where our in have would seen been I value in more other assets focused you The past saw. And continuing than the thing in year, a we've know

at how looking when about the transact, and for this equation. market about we're going we think shareholders. So, look we'll what's value, synergies, always earn of depending on and good both And it's think only we retention how we sides but available, to again, our think return to

much. you so Thank

Thank you.

We’ll Gabelman Jason with to go next Cowen.

Morning, questions. thanks taking for my

impacted items on just Kathy, think XQ for earnings. that of is couple a one I first The

you call impacts that inventory into be hoping that in and in fourth well? You quarter? downstream continued that I would that X-K had for quantify headwind also trading on could the XQ strong that as was you were highlighted highlighted the wondering the last was and benefits if earnings And particularly if XQ a earnings Thanks.

Yes.

timing a obviously to that we repeat. going necessarily think number we quantified the that And quarter favorable impacts we had didn't third we're so in of

quarter, what this Products of about we of right. when should those positives that So, think in last performance the about had quarter, Energy absence think some overall you you

headwind, a have if really absence that largely third basis, we of $X overall, from we positive had in about quarter would fourth So, at Products, just the to quarter on I the of look quarter. unsettled derivatives Energy a that that's quarterly had a third in billion as

in talked in ratable And timing quarter. we that about quarter, tune the negative fact million. I'll third it differences given refinery achieving us, with program that and then have of the runs the to our associated benefit a fourth call were the in again, about in we again, price And third quarter, had pricing the $XXX

at step the I the a though, to look is, move year positions impacts, thing, think have told derivative, quarter-to-quarter we've the going results year back and year. and are we're important timing during price during open to the especially mark-to-market look, because full most actually around to on going these what is take you

$XXX coming timing a neutral, XXXX. referred were priced this again, about and I full negative just look Products But basis, when Energy impacts, unsettled our we at million largely would of on to if you our year looked program, derivatives out price inventory at And basically right? a XXXX to were have

we out. year impact look volatile. little when But like settle be quarter-to-quarter you full it the So, a results, along, have tends said at may more all bit itself the to

Got inventory, it. year-end inventory the on the And impacts? then

to we they If we impact you prices looked significantly. Europe overall had our in as inventories at And inventory impacts, with overall have year-end at the pretty inventory look in part gas adjustments biggest had declining of made, the would Upstream business.

adjustments in favorability neutral of favorable the kind year-end looked to incurring inventory at to our overall you would largest Energy outside modestly Products. If of them called that, have I with

follow-up XQ. of a then just kind Got be it. which will it into if going year, aggregated maintenance just else particularly high moving wonder a I -- going is be something on. just maintenance, there's refining And on overall higher my of like if quarter, getting that's things to downstream in bunch Thanks. the one if year getting through it's seems

Just number outlook the great. a for on Thanks. little that year and would more be color the

in the that the -- in area is Yes, units -- spend mix is turnarounds and timing one. I'll the the just the and take say we function have of function that into of that different a those would refineries I different units. we're a at really the bringing age that turnaround around of really and

structural away or I change some so take for the wouldn't And year. outlook

which schedule. that we to refineries the refineries work on function units that into and get turnaround which of do and those a their to really It's have units those just maintenance are back coming

that's So, happening there. what's

Great. Thanks.

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

peers many than Maybe different with past thanks. in in position. upstream in to question, your of times oil. many strategically the following on environment comments both Relative on fewer far oil looks in a your up industry some cycles, under-investing players competitive of competitive the Hey higher-level the past and largest earlier

impact And it projects, Does do transactions terms asset E&P you open you -- how the your how impacts seen competitive space, do coming in for whether time? or you? leasehold, in an changed even the position it in over competition look as impact it you additional the the think years evolves And with it the landscape? global does does impact of how the And to-date? competitive or space? project opportunities expiration M&A within -- development for within that have How you think forward, how -- supply it does door this does your in

it that we've It's Yes, as are -- I take we And you historically growth. and not very -- think the this we are with the thanks. is in good business, a Ryan. that point depletion I'll or which under-investing there that one, hit made an up on is space. in covering keeping -- point, industry and the not offsetting has depletion

in markets. yourself find tight You

the investment coming And and that's I that over supply on for of stepped gets the our capacity this that as of have does on back space has amount time. think in narrative the broader and some brought tighten there, competitors moved public in

to oil continue products. alternatives, And until to full emissions, alternatives for needs that for competitive have address going demand you and be competitive gas of there's and lower oil the a society, set

seeing And markets. tight continued the so I potential think for you're

our over by allow oil that, and being we continued environmentally to the five way, sourced around that capabilities is on the that owners us think in have commitment recognized and found, do bring world. has gas the will responsible last I certainly strengthening resonated that years, to competitively resource and an that

respect give with to do that bit an set. a I so us of advantage the think And does opportunity

and that, frankly, to budget some continue that resources of we of developing those things And say I do. projects on are by work bringing the schedule, to competitors effectively, under doing earn advantage to would our challenged very ahead

a I think, think so an focus the rest this and gives environment that And space, the it's supportive appreciated in. versus advantage The in we find have of ourselves that is I very us we competition.

equation. while, in that the transition also that doing same investing of time, emission we're the add I'll side risk low the at And of and the balancing the

eye unique in got Carbon traditional that we're based sure keen allocation very so the adjust we of all making business capital on our those and space. value in And Low a and and leveraging where our the the capabilities we're that in using in on that developments using keeping the our those drive in value Solutions same developments this them investments businesses, we've drive our core industries position to strategy and seeing to we're those

core across optionality that we've themselves lend our and we've -- So, those portfolio. we've of got and to a got And businesses competencies set flexibility. that every of got part of

So, value And out there partners it. and I that think were partner I recognize or with feel really about folks good we're that. to the that the that looking

grow. we manifest itself to continue the that think we'll businesses continue deals do the we that in that and So, to I see

Thanks Darren.

You bet.

to We'll Royall next JPMorgan. go John with

strong. wanted Hey guys. very we've but how the I diesel the above Cushing terms taking is got there. now, significant and to are ramp Midland that's Beaumont on ask Good of going cracks profitability, trading expansion just morning. And given Thanks not in probably my very, for question.

that on to sanctioned? the of you've the how profitability been it out wondering about gate project So, you just of relative thinking when

Yes, I'll take it.

looking optimize optimizations refinery. thought would at you of we options the into that ago. refinery I lower-cost at of within cycle. the logistics it As was -- that that when intermediate that's call and feed the robust And before, to concept so is was the that said that, balances transportation we piece and equation project at purely if the look logistics about to kind going And had on I and Beaumont, that to how five-plus that project we and feedstocks years really the wherever you're developed what of justified

on find layer just we expectation timing basis better than at that the do we on appropriate commodity refining where cycle. end cycle find of we today you and will margins, the that that much of is If much, what because the we that which -- are expansion it ourselves the very where in high in my refining fact we on the we're at

important that of that mean generate phases that a we're we news depending And an make news. part kind that's the the of think, investment. that's, But from we're think all participating is to in I of to I sure I better good return that even on cycle. not investments make

we find very the in of commodity come through as bottom our ourselves to will that refinery the and cycle. continue position expansion the we'll I we think, refinery. That of eventually, well off, the refining be value and margins future, to and point Beaumont incremental even refining the cycle commodity to in will, find So, move start at some

positive making really that. little completed about progress good that making good schedule, facility up. ramping We're a progress. and ahead of we're feel mechanically So, that We on

question. more one We have time for

Thank you.

bet. You

Looks for more like question. time have we one

will last from be Read from question Wells Fargo. Our Roger

you in thank port good here. able me Glad Yes, and to morning. you're

wanted Just follow-up to on Guyana.

expectation and the standpoint, from think side, been little you are I there PSC know a out resource all noise any from I on that just there's political hoping there end? a I potentially big -- there well, won't but was development Guyana. was on side at but well could on Investor lot a of a Day things a Investor be an address the update be going Day, update anything at there'd

really progress. making you Yes, I we're made, point think the good

in brought brought at Payara quarter. Liza online brought schedule. up We X of schedule. of nameplate above well, that in We quickly began ahead As the X we've Liza bringing ahead anticipate fourth said, we very in and capacity producing

I so effectively, Yellowtail those run in and for We've that them projects be got quality bring FPSO. there. of And up to I progress about the a really expect ability making the feel approval. bigger and those operational good government good to

-- we're the know, continues that grow. as historically ahead making say or of would schedule ahead I The talked expectations we've base, resource of with we're about Guyana. and you So, at the to

make continue We discoveries. to

those optimize continue to We discoveries. really around

parallel our really continuing of is is qualify the optimized better around and part as to making continuing projects projects, we resource developing then to are these developing that And base sure exploration big that's that. projects a are in quantify and that

we're feels and the optimize, what about I frankly, to feel around think best there. that striking balance And government a there's we're good doing really what how about doing we're good So, there.

a the into said this itself the here. We the with always of country, is important of really coming Importantly, associated Guyana that a the for for be equation of development needs be win-win-win for that which the it government value manifesting in has to it and to the to win win resource be people is a needs needs proposition, win a to Guyana. be and a company, of that the this part

opportunity lot opening up a Guyanese And in emissions just with lower services going some jobs, into We've -- government been the around country. up and of other that's social what We've of bring gas reliable. got of seeing we've on in to lot help power we're in to there, working country, work economic the Guyana. project bring a a more the the

benefit think, I anticipated. lower progress. a people recognize fact this that cost, are values So, I we're is the at bringing government. the sooner think the on coming seeing And faster to originally the than and They

about here it's a So, got feel government, a relationships, I said, very it's working I and win-win-win proposition we're I the good it's ExxonMobil, think constructively. story of good good making. a -- and as think, progress And very

the resource update offer next And that? any thoughts on or on you'll base the an time

of characterize continues think it a material as out gets talking I drills, when those and drill team results and improvement, we'll that. to be to then the the quantify about

That’s you. great. Thank

Roger, thank you.

today. your for questions everybody, you, Thank

it our call. our I'll nice transcript turn website the day, to Have of our conclude on session a back end week. operator by the post a We will the investor of Q&A everyone. to And

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