Exxon Mobil (XOM) 28 Jul 232023 Q2 Earnings call transcript

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

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.

everyone. morning, Good Mobil's Exxon XXXX call. earnings Welcome second to quarter Investor I'm Jennifer President, Vice Driscoll, Relations. Darren CEO; Chairman Senior joined Woods, I'm by and and Vice CFO. and President Mikells, Kathy

section are Our will Darren comments. your in earnings script take opening website. release we'll slides, the a and provide Investors questions. of Then moment, our In available

this with additional information included our acquire In we've announcement conjunction Denbury and Slide X. presentation, to recent related materials in on

our make we'll and forward-looking comments. statement subject are X. risks read presentation, These uncertainties. to Please the cautionary Slide on During

may that find end the our have statements SEC more and You we information on at on apply in of risks the our filings website. uncertainties that information forward-looking Please slides. note, to any supplemental our

Now, let it me turn over to Darren.

us our be joining campus. pleased morning. Houston our Thanks earnings from today. conducting for to I'm call Good

our This of campus, and the businesses leverage As in senior businesses. headquarters of alongside represents on of collaboration a one and the of across to company’s July that and is centralized further the first managers integrated the synergies site the alignment Xst, located is in history our improve our our now step the at organizations. leadership corporate senior the transformation and continuing located critical corporation team enabling business us is time

businesses, level everything and advantaged to we and what of do. We comparable earnings in than our portfolio of delivered years earnings the reshape and work The in drive reflects billion, commodity we in demonstrated projects, doubling results. of second-quarter times sustained, in structurally intervening That higher higher XXXX, to company effectiveness of of efforts improve our second clearly a under the almost our ongoing our industry-leading performance in drive efficiency industry prices. was earned invest two quarter $X

a that not did Their lives and of moves like making. their do. sure improvements of personal our would that comfort this small to strengthen hope work resolve whose shareholders further moment are sacrifices disrupt are people the are and to in the people’s in with people. our we as willingness industry Starting underpin an very I in to company easy thankful all for like hard results, the I’m example we this. you testament company who to a to all take know all benefit recognize made. I made this commitment our is I’m take all our to our commitment have of to that those the move the our position these With dedication Houston. confidence leader many for their one, and

also and products Our meeting growth and making in In production progress in year. achievements reducing for equation: the this “and” needs production set track we XX% an record and Permian, the solving of another our energy quarter remain on world’s others’. emissions, the we’re and this both demonstrate the for own essential overall

optimize and last our execute recovery, said we development won’t as linear efficiency, plans be I As resource rates. that and balance production growth quarter, capital our

will driving value, not priority on Our volumes. remain

quarterly record a XXX,XXX production rate achieved we gross Guyana, of per In day. barrels

excellent Guyana safety results, and continues operating, production. deliver optimizing team in Our while to environmental growing and

and a increase above potential fact, the of XXX,XXX XX% capacity investment ingenuity a further a of our above these the nearly to gross day increase is FPSOs In combined the people. testament which to to see we debottlenecking, barrels the two basis with

chemical project chemical products. we expansion. quarter In of The grow Coast, continue additional to grows the Baytown achieved improves second our we annum Gulf mix with the of and tonnes volume mechanical In XXX,XXX completion business. per profitably the performance

announced the Growing Product final Solutions in of Baytown initiative the XXXX. The component the expansion is Gulf

are regional US’s advantaged XX support investments projects years for we to and If businesses strong the running. the have XXXX. capitalize our after to quarter. over its billion economic And up the $XX qualifications, at you the committed the first product end of of and train of Baytown Golden fourth should contributing Pass, recall, back the on the by begin create. should our ten growth, jobs initiative The expansion, of projects, Growing up XX Gulf and the resources, last

divestment year-to-date. roughly commitments. Billings is The In proceeds of from on $X Including high-value billion earnings of divestments Growing requires this refinery. divestments. and businesses totaled completed sale, have the investing non-strategic Gulf growth, initiative power the executing quarter another our we delivering our strategy, example in also advantaged, of the the the cash of assets our second Improving

we leverage improve better to Solutions, efforts performance quarter. the good to embedded lower have sight Business our integration, Global previously ExxonMobil Supply and They’re businesses: activities lines new of our centralized Global and corporate and of three off in all a to scale advancing established Trading. Chain, In clear and start Consolidating organizations in cost. each

of cost, high-return We business carbon. agreement storing Low to COX transporting, an of North capturing, building the in America’s business provide acquire Our in And States. Carbon one United the largest announced Solutions in COX which low with agreement pipelines make continues an offtake will with Denbury, advantaged, and signed owned to producers. Nucor, steel largest ExxonMobil and we operated progress a network

our compelling even our our play which, heavy energy have help transition. a thoughtful role with allow and to an reduce significantly today, Combining offers profitably options. significantly reduce emissions position will greater capabilities customer assets hard-to-decarbonize competitive emissions to proposition a in in accelerate industries practical customers expand economically and Denbury’s limited ability and their It to ExxonMobil experience and enhances

Louisiana, chemical Coast US are COX reduction and of for the COX XX region. Of sites largest integrated in largest refining X,XXX Gulf states pipeline, of home also one storage ExxonMobil’s to in some roughly Denbury’s and of are markets nine miles of Mississippi, their XX% of sites this Texas, and and COX strategically-located the

It transaction a including ammonia, to our biofuels. that multiple create XXX transaction synergies growth by and hydrogen, ExxonMobil drive to the customers. supports with Coast capacity Ultimately, cost CCS us do We opportunity and value returns. This year. both tons and cost-efficient will to we help third-party an transportation chains, accelerates emissions storage business the strong for and CCS A believe a pace. will the system low-carbon reduce per across deployment and Gulf faster see lower million at up CCS,

potential third we see opportunity of actionable the fact, for being the near a In the in term.

customers. takes to Which us our

use Our same latest into industrial infrastructure Nucor. into serve customer fertilizers from CCS and project will our storage COX offtake Industries, extends agreement and tie XX located base gas steel. just we’ll beyond CF the This to miles transportation

us of spend Focusing returns. our efforts and of captured allows emissions to the benefits of and improves ton investments with concentrated COX reduce sources our capture areas per in scale,

and of goal with Our emissions for Louisiana’s the X number increases amount work Nucor it greenhouse EVs, reaching agreed tons supports gas the we’ve total road with metric million net-zero per the to in to million same and today. equivalent on roughly transport of States by COX cars to electric year, X customers store of United vehicles replacing XXXX the

planned the could acquisition, XX to potential the up times reduction be With that. Denbury

track end currently A As this of lead these our new developments, target at reach of in we’re to industry cost emissions. on savings of we’ve We achieved, year. $X earnings savings by our plans that in improved structural society demonstrated continuing billion reduce is to $X.X billion. the remain to helping progress by component make the in major significant our

we’re to develop committed As additional finding future for savings. years, plans we

in or $X.X in the billion capital. from Cash billion flow totaled quarter, excluding operations $XX working change the

Our of our year-to-date we of track on million oil-equivalent per part guidance barrels production as the is shared X.X year full-year day with last

to share in line $X.X with dividends. also in Capex shareholders, quarter, $XX.X in $X.X capital investments our including in share our during and distributing with consistent our billion we year-to-date, continue billion billion philosophy, $X billion totaled cash guidance. with And, repurchases success full-year the allocation

Before go key few quarter. leave a I’ll the to Q&A, we from takeaways with you

earnings this improve First, we XXXX. is our the versus paying as demonstrated in of off, environment work a second to price quarter power structurally quarter comparable doubled earnings

Our reorganizations, significant competitive and driving our in and advantaged aggressive investments improving are in position. value reductions cost projects,

expect We’ve advantaged a progress our to line to of Payara earnings. great clear to Baytown this In more. two FPSO we on further bring generate the industry-leading have and back projects: the Chemicals Guyana, growing of and year half in sight Performance made alone, capacity much

is Today, businesses. of our value better value the us of business on value the view creation focusing of realize end-to-end company’s and we giving a are our opportunities. better improving transformation from the the to integration organization The scale positioned highest and ongoing synergies ever than the

in allowing the earnings exceptional developing meet For and a business And, Their some cash projects, the biggest time in the industry-leading work flow. importantly, returns we to best growth apply investments, corporate to are have to trading, providing first us industry, unrivaled people talented society’s chain, our in technology, solutions challenges. greatest of talent supply on organization delivering and the solutions opportunities. we results, our driving most is and and history, opportunities

decarbonization distribute a and businesses, projects that investments through the traditional improving of laying returns. step cash shareholders This, attractive industry competitively-advantaged, with share and our advantages maintaining customers, the competitive, in Denbury in in advantaged turn, to us low allows in Low we a By returns. our repurchases in developed are world-scale, leveraging proposition a our business industry-leading for The dividend Solutions including growing direction, investments while is business. foundation acquisition generating while for Carbon sustained, carbon to planned

earnings the and the quarter, power the improved represents company. with pleased we’re summary, In progress it of the

strategy with leadership right the execute to and it, growth best right confident effectively in we We’re have that value. shareholder delivering the people sustained

to that, it Jennifer. over I’ll turn With

as Q&A now that analyst. analyst question single we the begin session. a as to request our a courtesy to that We’ll other continue Please note,

case on need in you remain the please questions. any However, line clarifying

the operator, that, first question. with Now for line please open our

electronically. America. we'll session you, with question-and-answer will Doug The And Driscoll. Thank go Bank [Operator Instructions] first Leggate of to conducted be Mrs.

Thank on end billion that you. saving does given Where the through my already and go pick the cost could Darren, post halfway up XXXX? And through wonder Good question cost of I that target guess the saving $X I XXXX. everyone. period if target. through we're is, plan morning, Denbury, I

in It short. up, Doug, goes

identify know, with talking to over benefits the what the organizations capture plans. executed, the integrated in corporate a the of as develop and one processes objectives to puts an they've to we've been of across to opportunity capture reorganizations is of integrated efficiencies recently scale time I our executing opportunities between us some further them portfolio what of that for Obviously, the across really the a synergies the represents exist this their and businesses. take we and years manage about been business whole the of we've got position these year just that lot enterprise first actually think as the of you of the in stock and new these

end opportunity on then is, when of like further the to we've set of that further And reduction the with So cost out developed come opportunity horizon. drive some expectation reviewed after at we board an in what head got I plans, them planned you, we've looks think with we even back my going the the we'll that forward. all the year them perspective and share provide as

an Darren? Would you of offer care to magnitude, order

and I Day relative Investor a March cost of at And bars, some volume structural you to go materials bridges it get those the just We rough how savings you'll tell look you think where size XXXX. improvement I the if we're we out to had driving, and of of back earnings order magnitude. from earnings mix. in Doug, laid to much of kind

And I'll Thanks. there. but forward, going leave it then

you, Doug. Thank bet. You

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

right be you think how that? on and had those clear creation are whether the on your low morning. perspective that and approaching there's well about curious Good be been potentially on opportunistic Denbury into to really in now Permian both the value carbon two. M&A of former that I'd the Darren, to and markets in thinking you M&A you've value

great Yes. one say quarters, of I space. perspective it's and about, it talked successive And really changed Good whole on I of seems like we've for our that interest hasn't morning, that know frankly. number Neil. a would that's quite

to the opportunities create shareholder think value. ability value, that space and evaluating in is to we unique what ourselves are I holding unique

what than could or of And so, any do potential bigger acquisition one another. ExxonMobil opportunities have the to be independent

that you've one has And that space. think say that's what I us one heard are equal about we -- three So to thinking how here. plus we're

that, line better -- the drives delivering remarks to value more Obviously, we bottom up making as do progress the value to in of advantages, quarter's this in quarters, results. identify very and with when back advantages, open started to competitive previous made can’t business, the talking the opportunities is bringing our competitive from better basically we're leveraging unique others make clear achieve. great that key bear XXXX other technology on leveraging companies. to prepared more we on the beginning, our we The one do portfolio, them opportunities the to And I've that about in those opportunity bigger advance try

continuing we're of that, the not compromise shareholders. generating to but and growing so, going And returns we're to for our look for value expectation

think pretty we're Kathy see position. said I picky many So in acquires. us change that don't past, I times the in

Thanks, Darren.

bet, You Neil.

Morgan Devin We'll with McDermott Stanley. go next to

Hey, good morning. Thanks for question. taking my

morning. Good

to I Permian. about ask the wanted So

part you results had so You've this some was the into you and When bit a versus versus those MPV think recovery about trends in if address as of I development other develop some to that? are you that, strong the the more drivers and could wondering in resource far detail improvement some you dive that basin, little such your you you're peers and in cube of for and charts better you asset. year the there had any And what advantages interesting further room the of you on and seeing up-side the that. view? slides how the specific allow see on get could

XXXX-XXXX start competing the of maybe unconventional we guess amongst going that who our in asset versus bring to to approach to others bring are can a at taking we we outlined develop sheet and space. this said balance I different and key game capabilities ExxonMobil And bear leverage those scale many scale. have was advantage back that where by the really timeframe Al, sure. to Yes, and space the

which may overall timeframe, think talked itself we the we benches maximize time, XXXX-XXXX making And is, in a with that cube production. today, develop and that about that term particularly focused the manifesting received demonstrated so, as versus connected, that on the that resources it's on approach That but maximizes sure was ones all focusing how recovery initial in really and which production development, not are it's that you way, and you see actually near optimum back an I the resources, the its recall, well results in that you we the in value we're particularly and develops rates. do wasn't recovery

that. important. cube That we really that's so And evolve development, continue to

efficiency. you the as cost for we've think length productivity setting of our it's lateral resource. stage now I the we executing remains to we development. drill would And critical associated that are I that well wells, constant. a where on which, how good that about really tell again, you with we're feel gotten focused today, capital records longer wells, of accessing lowers importantly, And the the each foot of We

we've done productivity longer. that consistent foot the sure is drill and lot so, longer of to we as each a make work And of

pretty So that's driving significantly. capital down costs

results we've to We've are in trialing, but that they themselves would at go detail And to I those got ones results. early aren't technologies the won't a recovery. field. we've deployed scale today to encouraging, some then And our say, manifest I of that got that technologies into we're completely lot specific got the try some on in eyes match quite

think think process we've all forward moved pack those lot to give upside us industry and that leadership move what only of that see don't to of as I reached of not lot have yet. a continue confidence a with I front the So, end the together we we've of and to that we the today got we the optimization things demonstrated

Great. Thanks Darren.

You bet.

Moving with Research. Margolin next Sam to Wolfe

Thank morning. Good you.

Sam. morning, Good

This don't question because it Difficulty] you EOR. But are too [Technical far about you afield. is find Hopefully,

available? on kind us. are of to are Sam. try and you back question you Operator, come let's up another Sam, Devin, breaking

next JPMorgan. John go to Royall Okay. with We'll

my good Thanks taking question. Hi, for morning.

so for bridge right margin, billion reported from and negative of So I'm decline looking far. bigger it's relative $X line of products energy over that definitely of have peers you there, number your out on surprises we're seeing have than but the basis no in your with a your just so a at X-K, couple

of decline? more any additional there's regional call or something to for So, crude drivers that just on to slates bit that mix are Exxon? around looking the unique out color a Maybe margin

flow this a margin flowing have a bigger we unique. footprint. reduction We anything kind a there's what where much industry coming out of is mean, say I of through. wouldn't of I just see refining is bigger Yes. reduction the straight through would

than have though say So the rest obviously big margins of we footprint US I would even tends the better in US. the to the world, a very have

it's change through And industry just so, a from just decline, bigger that but absolute flow a footprint absolute the number in margins. and straight drives

Yes, of refining than the peers. size is much, larger our business much our

margins with you'd those associated peers. in than impacts see impact changes our us the with So on have bigger a the

kind I you side. to it's the was very number But XX% of yes, at XQ Sure. cut on margin just appreciate I much. it. the like a looking thank

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

Yes, hello. Good morning.

Roger. morning, Good

morning. Good

follow-up chemicals on I'd to margin. like the

on You where but margins That XXXX, -- made pricing chemicals margin high opening to the about in the back much point. the comment said, excuse me, XXXX quite isn't better. it was

outlook on reasons anything the exports, softness NGL at better? is, is hear look in expectation else about we the in ask US this any when increase getting much of offer one we question you China So chemical and of can in the chemical prices capacity. how And higher that talk the I'll

kind like of looks certainly you, an margins new for that juxtapose So, area. what lot of improving market versus better should capacity how potentially we into a

then of I'll couple sure. on anything see that Kathy Yes, if add. a to and has perspectives give you

and that business well-diversified the say for off, spreads price that pay years is, over particularly these the moving. chemicals I make slate think, we've to around work things in our first markets sure to a we've are I'd continues feed of all, done what shifting are as got

change responding adopted price those pretty signals is in organization and to feed. Our

many better that line make to optionality our peers the to with bottom that and the we flexibility way So and position its than have. that feed of continues us

year. I and that recognizing to you for there China China the role year, we in has to chemicals that around happen. are a think chemicals with in starting on come and seeing back being pick I the that it look in demand in a the expectations last kind world, into impact lockdown we've -- demand. and as early as of was think lot of this And was the half COVID of with up That growth

the you if fact, the ourselves second stronger the In than was -- look chemicals, at in quarter. first quarter

that. are say. The a So it on. seeing around that number us that's you've the -- that's I actually and we our looks big we with better. come challenge the of have And and referenced that is world mean, feedstock would the our reasonable, I demand think pretty where refineries amount the advantages footprint of integration in I positions supply

add online, chemical cycle. think time earnings at fairly take it'll brought with cycle positive, new we're us for all projects the the of I is things at business, would bodes but kind marketplace, pleased take those low in our just market lot of some really we've the I'm in condition that top are positive the what of back and and those that out pretty up for when of the if cash look supply, investments chemicals well the over even is excess which made all five comes frankly I brand to for of that significant of supply you we one a bottom got of But that, And demand depths chemical quite my investments. on is, last investment of a we've the expectation years,

for, outperform that about is, had exactly I business which tough the frankly, into we're get conditions how and, to position good competition. you feel continues business what when hoped our doing we So, we

position an again will it as in margins tighten we us better markets improve so And up and in even back be good position. puts a

of add a And stats I quick to would that. couple

competition, So footprint again, relative our is to geographic pretty advantaged.

about what XX% then the mix. I'd projects about just larger thing in those that America an in said Darren we're it, helped so, than, call of gets implementing, improvement I'll some other of support we've projects to our been overall industry. And point North And to out rest the

X% a saw we higher chemical so, margin. a performance those carry this quarter, products in increase And and

So relative systemic things competitors. those more that some the improvement are to of drive to help

to Great. Thank a got XXXX, If the carbon hasn't side we you. on is record oil coal we’ve the hitting question global look, business. going demand in in hit a global Follow-up XXXX, demand if already. record capture of it

out Denbury is laid there when Darren, you've already well acquisition The in strategy, -- that all were makes curious, that. you Just -- your certainly sense. fits

demand pressure curious on to about everybody standpoint, getting we three we're any transition peak years If any clearly something would have Just a ago, emissions, this, additional carbon going maybe saying energy think happening. that, you it already carbon capture? two are given to have you're was if or for this, that, more had additional lot demand peak from for of outside pressure to not accelerate an you if accelerate sort getting

challenge world think reductions you the that that we I frankly alternatives and EVs weren't and its faces, if trying the in unfortunately solar exclusive solution Yes, is and accepted fact reflection would that for focus weren't and fact think -- at a considered advocating progress today slowed the set. other time seeing the say wind, emissions society's internally and the actually focus, go capturing. or in develop and you're what back of to were solutions actually I as the on years, and other I And several an incomplete frankly,

this I that think as of be at and as table many on that expensive possible. this today, very and need eliminating there's bear. any more to what frankly solutions we focused is the we stage industry on emissions bring need the Not And and solutions to them going of recognition complicated reductions. transition, those staying solutions a can

resonate. to starting that’s think I

secured the the a very the early our nascent, is, the and don't are parties on, focused party There that have are there that we're aren't this very investments challenge have areas that stages. the we aren't would that's reduction advantages, third oriented that and the parts lead business of expertise opportunities Frankly, any with I mission the in which in in any kind -- so, out consistent very other got scale that is progressing. molecule we're that the capabilities there of -- that -- And have that here companies the of space. a we're we're

recognize been we role Obviously, be generally, it think I to IRA else, into a governments ambition market than so, around there to the on supportive. many anything a we're things hasn't that think our for critical are that's plays, world a and more are legislation translated -- are yet. set. even to regulations delivering legislation go yet appropriate And if that hasn't function step. and faster. the and frankly, people And there's industry. come to lead the that to who carbon that's going desire carbon I the the think on create make of opportunity working incentivize about you And be a And And

feel going cost we're in that delivering in like elements a there, of players but deliver. to we're this cost that in some early there down pipeline of part, other together And diluted So get to several lot our the years to our good very can pretty there further here more we're think frankly, process We hope next need and COX. who pipeline, we're come role driving ultimately, to, technology again, successful. streams the be reduce in advances of I technologies then feel of we this to have of so to on work emissions And have are to space. about in technology commercialize and that doing to keep reductions. it. And are hopefully for a number opportunities, our I more And I that a

lot early, going think I on. a work So of

good of that in have. lot about we're progress leadership making I we're think playing role we feel we good a the that the position and

Great. Thank you.

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

sound Is is that Hello. wise? that better,

better. better, Welcome Sam. That is back. That's

I'm okay.

as question pertains EOR it to is this So about Denbury.

some attributes there's might associated than oil. because think, barrels varies emissions the EOR with be it optimism I the carbon that more of COX credited

just and that it asset all stand EOR as saw but wondering on was at option different maybe And at topic you available? so, I if that that's you and where look a was value, classes was factor

Yes.

would have of core opportunity. driver, Denbury strategic So business I they in facilitated obviously, frankly of the place. for us was that key not infrastructure today the say, that's driver had and a That

sequestration certainly opportunity, carbon storage, role. carbon EOR think and But keeping ground. term play in it's I around if about under you broader think short the the can really the a the capture

us. I progress the longer just IRA into term the as that's sequestration. of to date. we've challenges play the Class mean, here a slow regulation the that's That's be about translation So well for going the fairly I commented for required got and Permian, X with regulation, to

lined in So, there's we into If side, progress the we're we a optionality short that lot has term schedules. sequestration successful. the opportunity COX. start these and things so don't a these as the up lot on EOR bringing of providing work capture together with us putting pieces EOR of that capturing to see everything that have lose and an go parties third facilities, I gives the as we're on to working carbon not

strategic It's think a not for So, the a now that's would it. thrust way us as I company. think I right certainly about

Understood. you much. so Thank

You you. bet. Thank

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

could the And just, in couple Kind opportunity you I seeing to mean, benefits of of uptime? other that drill is in a was could us if Darren, dig on Good changes have for it that morning. little roll if pretty you the Guyana, here? it or projects clearly significant. there's little maybe it in in you you kit? above Is on I the subsurface? above is a queue. wondering changes bit scale you're what Is bit significant in -- the a nameplate really we XX% the talked Is on it in debottlenecking about forward design

about talk just Thank how changing you. view the your maybe future So it's of opportunities?

spent questions. That's kind that decades it has of -- by just working. organization the for frankly distinct thanks something buckets. And sure. Yes, bucket start I'll three the I in

First, it starts the of build design out project the itself. and with

years, the right several that built facilities. really the projects they the end even capability build the opportunity envelopes. to the got facilities any and And I well within that staying the a to design squeeze a in optimize of the that lot platform of we here project specifications, and have we've out with to maximize without a done out. strengthened way years built that compromising find project capability And facilities optimize organization the think organization production to we've having with coming are operating and the last opportunities we've that this skills our over the bring safe good that right extends and so a design development the so, up with over of good to And and

a all the really the we're done maximizing operations but Guyana, you've that run The it responsible organization of that then making is organization we've on pushes. stays it that that. the one safely, in of bringing a maximizing an great of little that our maximize the the And focus company lot we've projects ground, of they've ground it's run on the capital once on time on think the been we've organization and and not say at production. same second done capital I got is, a not job is And mindset utilization value got again, the steel the this you've It's I'd in put way, that job in focused the the in only and environmentally And steel seen job and that capital. operations run And the of invested. but bucket things sure to tremendous they that it big value reliably, that thing.

move organizations again, a is technology to all was then construct. from a taken third our And and what to step say And bucket construct oriented the of I the business capabilities our would organization. we've consolidate technology

And working so, the It's innovation group biggest together really commitment got driving shared out business squeezing. best close technology to value has with brought people the the and we've our operations partnership more creativity. the to field assisting and getting in leads now technology our that and on drive opportunities. this And and

is environmentally we above safe see levels in continue XXX,XXX as So barrels and two remarks first all is, see of a together. a expectation optimize I [indiscernible], we're to mentioned third on prepared get comes as very boat we'll way. improvement are with day responsible expectation in those there. the I'd going and say similar do we'll to My that, FPSOs the when my My coming that

have for comes build and that, into build opportunities the -- forward capability that continue optimization this we'll and and kind to it we go built the find our expectation ourselves inherent benefits that back projects businesses. the frankly, to we of continue same as is we And projects, with these to

much. so Thanks

You bet.

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

morning, Ryan. Good

and on -- upstream. other how by on seemingly week, Can potential that mean, drivers headline given over maybe the drivers you the performance seen but of Good morning. on the we've driven been environment. to this the for in a there I pricing reported environment, of might for maybe much with that even quarter the for expected back this relative trading question not you global other the upstream have little that gas peers during talk than the those that remainder or any you, year? pricing A maybe just or headwinds weaker quarter, about evolve saw headwinds markers,

let the more little line Kathy on into impact to pricing maybe respect with say, the what in in dive expected. I'll we our much actually quarter pretty came with and just I business, would a detail. had

the the attempt best our X-K put that impact. model looked out at you and to we If

planned the we from really market impact discrete much the in more we importantly it's put rigorous to what on Just that events, the are market out pretty business there, making X-K an been quarter-on-quarter. environment, sure but when focused has on

we a kind come consistently supply, as with think down, as if I we are think bit. tighten And healthy down bit into refining in a to territory. back have see I but think on up, expected. think, I were into additional gas prices limits very And the we frankly, up you laid but half see Obviously, of of head and the quite still at picks we're that mix back the demand pretty the margins going what out so that year, supply/demand the fundamentals, I look

limited expectation supply. upward the we'll have given in to some year, the increase changes pressure my of back half is, demand the significantly options So, just we see an

to Kathy, to that? anything add

to a other mention couple of I'll you. things Yes.

LNG, you year, tipped if bit of at look result a of past done to about a XX% little LNG. As portfolio, gas more divestments the the so over some our we've now we're

kind contracts portfolio If talk of gas say Henry Hub always our we mean, you almost LNG of across about our on tied down impact fact just I that to a lot was look at I'd thing pricing are down results, of lagged TTF was prices. and oil about is the XX%. XX%. the last And

were down they where to $XX you of them And at I'm fourth look barrel. to just going if quarter where currently, prices so, call in relative more the are a kind oil roughly

as so, well. pricing flowed And through would that impact have

is, positive our I you a results mark-to-market, And in have mark-to-market little it our upstream, thing if I quarter. that lighter But mention you in a mark-to-market, if exclude the for will you results said exclude then then gas with the if trading were so quarter. this would associated trading look was last us bit

gives that kind results. think, packaged you a gas good of understanding So together, I pretty of our of all

Thank Great. you.

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

Hi. Good bit refining. drilling I media activity, area energy to in attention in is, into transition it ask you're terms then about been space. and which the wanted Exxon's morning. a waiting seems lithium more another the some like And receiving of that's

at budget out? was laid in you development how contemplated in that And that billion Thanks. space energy in wondering $XX that I'm refining your transition opportunity, of given ground. you that that in view materials expertise drilling the and if previously all

frankly, beginning, for the capability we have, a stayed products seeing I'll areas about expertise space. the can we're and back ExxonMobil's leveraging and have we a help to since solutions I'd the focused have Maybe in transition just we of why corporation capture Yes. that That's and and how believe as is if back we decarbonize. side it society And in Sure. to of unique that the participation add comes say that we very equation can where we the think biofuels. believe looking hydrogen carbon come all focus an what unique the on at, of or fit value. advantages we kind fundamentals But molecule the on the there's a

water production a lot It really is lithium you if brine what's we about understanding our of have a the from do requires that a injections. capabilities think reservoir is, required and that upstream. management, subsurface, and of of the drilling good to requires requires an of current in of Lithium extension good understanding

in skills over and And brine the that consistent capabilities do things built that decades and extracting the refineries things in in below much very fact, and with think chemical the and with lithium plants out our The we've the very surface we the some upstream of is a business. of the our line I upstream of operations. are in so, lot in processing our

that equation is, again, new the the not of So piece to company.

you been And what does question looking some doing have, time. there? themselves look capability, I have there's the demand? think we And at experience look we're all lend do supply of at the see quite we all the we've So as how then, that we the to skill and for frankly, that, for the that. operating course, set And and that that market role of a fundamentals

we can on doing less much open of we mining applying in but by, think resource, parts at evaluating this still versus, I'd that's lithium, the with say environmental that world. advantages believe bring can importantly, the impact again, lower on a that I one go it we much to early much bring our needed short, that space other cost. in they're in the opportunity, predicted say, we're a And

So with electrification win to environmental potential us, component and a crucial in win terms standpoint capabilities, supplying this, of feels our like to win-win-win and using a win an impact a from a opportunity, a markets EV.

it. like seeing we're that I'd say, kind so of what thinking that's actively So, about set and opportunity we're exploring I we're, far. And how think

Great. That’s Thanks. helpful really color.

bet. You

with go next Silverstein We'll UBS. to Josh

quarters morning, the there, balance of positive so in is Kathy, guys. versus were four debt about you of cash still The because a rush but just curve use a around spread your And foresee The deploying still quarter, of holding this billion $XX last net holds cash of it cash Good comfortable Thanks. cost. you you rate or going you're rates probably still for balance spread buybacks. interest not mentioned anything, best position the Exxon the current next kind And in projects can to year? now. if is right strip larger Thanks. into versus is the wondering net now, into forward the higher do if return that

Sure.

and our going stated right I've commodity how price margin pretty bit little just And cash And ebb happy now. sheet is position now overall so, and ebbs that couple flow expect for our we quarters a balance of and on a we're environment with the to flows. based environment balance

it's need sheet So pretty the gives really hang us it critical we balance think on we to to a cycle. flexibility because through strong the that

of and business. within to the Denbury we're look includes part overall and of capture LCS. And growing of terms we're say capital of perspective, entire doing trying carbon that business. deploying I investment about at acquisition the what good organization we're sequestration opportunity enable that If excited Obviously, never you business. our in LCS our that's will business It investments. from accelerate across constrain an growth And our us to our the would profitably

And dividends competitive really repurchase good we when we that's can capital it's how term drive think say, support trying constrain not cycle important create, returns our we program. company sustainable new that are I a the for can talk that capital how the virtuous from I'd more long and of shareholders. deployment So then about to we are over projects consistent the that growing share

to the us cash company really a balance historically long our we term more than we're over just sheet. balance to as give and We hang through think done flexibility happy about say higher intend the cycles. manage the with to company how has I'd on we the So

And they a Kathy the that emphasize find that projects mandate businesses ahead high the just fund made, deliver high And been come we mandate they've forward. maybe of point those the given. advantaged returns, is third will time that's to the us and competition position And value. opportunities to as

opportunities ability, I -- see is And the investment manifest limits it's our the what challenge I those the the those organization say are to think confident in into are the that tap and ahead -- other feel of to fundamentals to price we give that think we robust of fundamental would are what opportunities. environment, only you market. very things -- well low the I fund a the long-term of what terms companies

think those corporation the on find because fund organization how focused very set, developing and our value opportunity and for shareholders. is you that's the I them long-term we'll as we things generate those

Great. Thanks guys.

We'll with go Dingmann Neal Truist Securities. next to

on for question you're or My deflation? the both and about Good costs, the for XXXX, thinking the domestically time. Thanks either remainder year inflation of how is internationally OFS thoughts, morning. into and just your

it's Yes. to thinking gone services the certain the costs inflation across or business, we've off whether where cost oilfield costs I about inflation that categories. see actually way we're starting come a say and other we're mean, to in I'd point

we're valves of chemicals some things tubular some which we about those in goods, like include see sand, types starting the deflationary and pressure think and of you to call now. use unconventional, would things, If would what piping that would we

going through say seeing it probably I'd early to come As it's necessarily to But the not to see year. the see categories would second component overall, come I'd as deflationary where high we're looking now yet looking pressure that I business. of yet. fundamentally throughout forward feel we're of the through into of is labor relates we're half too because off the we're across we those to cost, signs inflation multiple coming much say, that is things starting a But forward, XXXX, as like say

you. Thank helpful. Very

go with We'll next Paul to Scotiabank. Cheng

Good you. guys. morning, Thank

Paul. morning, Good

Thank you.

XXXX. Denbury to spend is through lot also acquisition billion seeing low more carbon business that saying XX%. [indiscernible] And you're a the You about opportunities. $XX in sale you're

$XX perhaps number, -- need increase we'll quite that substantially? to that your interpret we should will So billion

Yes. Thanks, Paul.

that, the the the can up, starting the bit we're given set. the Denbury that just opportunity point a out, I And you part just business on $XX and rightly acquisition progressing very as billion. not and of was think early as of imagine, little opportunity perspective you maybe set

can talked manifesting made with industries Dan have opportunities these that decarbonize as customers now Carbon customers we've lot his Low in those have of big to the we bringing some team the alternatives. bear good tremendous in that we and and and think business a of contracts hard-to-decarbonize about have Solutions that progress I don't with demonstrating three

got hydrogen very with we've the got investment largest opportunities And plant. significant that. a opportunity also then to Baytown bring associated carbon on world's low for We've ammonia in

interest provides a that pretty date, think a and with portfolio. a and of got by that opportunity we think deals that announcements struck outside to recognition I I the lot And Denbury, here a we've there's So robust commercial of the the potential deals of ExxonMobil the with real customers solution. real announcement that

So that's the context.

projects, a -- so work. do I required how deals these develop would we portfolio opportunities that'd a other at say to then be we looking clearer, some the -- to capital on that, quickly There's out. see -- discrete, the lot and manifest capital assess and can was that the as -- lot $XX continue of becomes how in a billion opportunities trying move those progress of make and we're as and to it more themselves we those that would continuing

in the date. And that say were us assets Frankly, We're allow through, from goes to brought approach. Denbury changing now, logistics and making to the not so back in substitute if the investments that of a I'd billion the acquisition, will $XX it's right we portfolio with that some grassroots we pull Denbury. on that

of kind say, space. an evolving I'd it's, So

I criteria compromise or advantaged on, return we're going on think criteria the projects the stay that bear. we insisting on the bring to thing that our to for we're not to focused

low-cost in be suppliers this We have space. to

generating the the competitive have have leveraging be be corporation and we to has, returns. advantages We good to

are to to continuing -- add very anything and Kathy, the this and We'll develop his going and drive year's -- it. the plans business. detailed manifests know the of a itself pace and through go And number. this year know, how I to have Paul? year you want don't a their update for do on frankly, dictate that size that based of Dan we plan, more you That's of on quickly under having as CapEx team I belt focused execute

Yes.

want mention you're time I of to backlog business, relates Just other backlog. it see business. CCS that, what what's thing the a we're and profitable to that longer the term kind to as growing especially building going to is growth that the over And over CapEx support the is future of going the is,

in electric that right? sector, three So one into around That's for And million would industrial is does describe the the just States ExxonMobil's used all supported X those gas-powered one today, the sector, in vehicles tons gas that United if large I the backlog makes X one annually, ammonia annually, what that tons road about think cars very translates society, about million industrial of for from fertilizer, million today. conversion that's X to the vehicles. the steel by in you customers, about cars

that talk profitable about that I'm growing we business. overall when we will the XXX customer CCS million tons Coast, going the about times And annually. opportunity that it XX talk by be supported number. back the across a Gulf But backlog to fact That's go supports to

it. how that's you think should So about

Great. Thank you. Can I a quick sneak real question? in

course. Of

Darren, Permian -- you production quick. quarter? can a is in for you do the second the this Yes. what Real quarter number, share have

XXX koebd.

you. Thank

bet, You Paul.

have I question. think for more we one time

Sankey from with Paul Sankey comes last Research. question Our

Hi. Good everyone. morning,

Just just a follow-up, upstream. actually, your at volumes looking

back Guyana rapid stuff, but of of what volumes, in down Thanks. Is the to here. towards hard stronger the the be that could you are your the was in that First about kind levels the QX volumes expect year? for upstream we recovery rest quite talk going and of recovery, should a there of wondered especially all, the you mentioned turnarounds I light if and that fact

I'll Yes. take that. Paul, Sure,

quarter at about with If production pretty you first we last put about on think year plan but that that quarter, the second essentially the were we forward. we plan significantly, levels of talked first when the year end to up from full back quarter, respect our down

there's at we're last today seeing changes you And that year that X.X I million guidance would production. that nothing of tell gave day barrels that that we a

than And plan meet to we say, anything real say the with now, obviously, I that. the better I'd We're track So makes us would like we're on track that. right we're do numbers hard to working feel we're earlier change our we that and that on year. mind. But meet not last shared seeing

that about you Can say the in more QX? you had downtimes

downtime. I'll was number. both mention, we of a of thought and those given a XXX as divestment that we about actuals that scheduled items. that's koebd, reduction I across the Yes. koebd bit was actually sequential we'd It what and just And had see XXX to guidance were a of said guidance

sequentially we XXX koebd down as So of scheduled divestments were a result and the downtime.

it a just was really then you more why our driven If at look than production things. by overall little two was down that, bit

So we impact Nigeria unscheduled is a so then up have in terms cutting that from short curtailments had downtime. coming obviously, unscheduled of we and and downtime, we've tipped that. in production, seen And an OPEC our strike

on up numbers, full equivalent what about a if go And look back again, you I we to the about said, we're would XX,XXX year-to-date guided at for basis million at our year-to-date year But Darren X.X day. barrels year-over-year. a oil had

That's to the is super are helpful. if And add up, just that's then Obviously, product those there I But much, not there your else if look about mostly positively. just energy follow sales, anything if up I guess. to at I Beaumont, strength? more, as

that then Beaumont XX% main volumes No, Yes. we maintenance going running on, of had at which helped Beaumont I'd is a the kind was our less And utilization. mention thing. obviously well. as bit

really and just So the I across operational proof nice, again, a the point think, company. excellence

much. Thank very it leave there. you I’ll Great.

Paul. you, Thank

everybody, Thanks, today. your questions for

of transcript next early soon our week. as website a our as Q&A our on post session will We of section Investors it's available

in I important share Wednesday, to Time. on announcement calendars mark Product conclude, Product one joined Product X:XX at group to McGee, be your Solutions new be going to the talk will Williams, It's XXXX. we Vice leaders about Before President, you. April Jack ExxonMobil by for Senior who Please from September have and Central Karen Solutions of Spotlight. XX President ExxonMobil Solutions with oversees several other formed this

website. watch For additional event, information our Investors upcoming about of section the this

operator the With to close it and a back weekend, everyone, to off. it I'll that, nice have turn

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