Exxon Mobil (XOM) 27 Oct 232023 Q3 Earnings call transcript

Good morning, everyone, and welcome to Exxon Mobil Corporation's Third Quarter 2023 Earnings Webcast. Today's call is being recorded.

I'll now turn it over to Mrs. Jennifer Driscoll. Please proceed, ma'am.

everyone. morning, Good Third ExxonMobil's Earnings Call. Welcome Quarter to XXXX today. appreciate joining call you the We President, I'm Jennifer Investor Driscoll, Vice Relations. Neil President. I'm CEO; Vice and Kathy by Mikells, Senior joined Darren Senior President Woods, and Chairman and Chapman, Vice CFO;

from section a This presentation are release, presentation. the website. provide remarks this Shortly, and which accompany opening few is are to and quarter the brief of same Darren take the meant location. we'll available They third your our on prerecorded slides Investors reference earnings posted comments Then in will questions.

intended Resources our Denbury, Slide any of In announcements or presentation. presentation conjunction with approval. to recent or to vote not aware related included regarding information on be Pioneer information a be Natural in today's this Please and solicitation additional included comments we've that X is

presentation, risks to on During are forward-looking cautionary and X. uncertainties. make today's which statement read our Slide statements, subject we'll Please

statements to end that on SEC provided find earnings Please website. and note information forward-looking we risks more information are which slides, on our website. the filings the at any the You supplemental can on our that in of also uncertainties posted apply our

Slide Darren's X turn remarks. opening And please now to for

industry-leading quarter joining We us sustained morning. returns, Good for Thanks cash delivered of another flow our efforts performance. today. company to drive our and robust ongoing earnings, reflecting shareholder and structurally improve

to the $X.X reported quarter. increase billion of We last of compared earnings, billion $X.X an

turnarounds, big the utilization high provided it's at continued and first-quintile work which rates, to hard market company. the and of reflects our schedule. at performance, strength across cost maintenance throughputs we're efficiency the in continuing our While bit operational by Whether people delivering and drive of tailwind, our projects running was success a of enabled the

our a foundation of do. underlying industry-leading sustains everything to company, underpins establishing results in fundamentally and The drive work industry-leading environment. deliver in strong The the people the earnings results our power we performance any price to of is our excellent work strengthening deliver

share the XXst our of we Consistent with dividend X% our proud capital of with company highly. the per were allocation and value is investors shareholders. year to increase increases, morning, our announce a to dividend of our success year This to consecutive share. a pleased annual record that continue to we the we quarterly $X.XX strategy, that This know we're

We fit. are of to that strategic businesses advantaged, investing opportunities a no portfolio strengthen our by in high-return divesting while longer continue businesses

cash to closed followed close During October the Italy. sale year-to-date more our from asset the in our $X of we sales billion. than refinery, sale the refinery quarter, with proceeds on We of the bringing Thailand in this

themselves world's strengthens Recently to hard-to-decarbonize announced products in options. see of acquisitions position to the for We potential energy equation: which industries, emissions. essential Meeting our needs examples reducing the emissions drive "and" are with Acquiring nation's vehicles capacity electric great COX same Industries, the reduce Denbury million the could and strong Nucor, currently returns on equivalent to the reduce number That's million agreements replacing offtake carbon by with tons year. U.S. by emissions emissions with EVs, roughly per amount CF current which XXx the roads. of an Linde COX cars have reduce economically today and and practical by XXX X our to limited

vote in transaction to next Denbury November the early to close expect We with week. shareholders scheduled

environmental with the value another to companies. a efficiently resource combination Resources and advantaged we already impact. Pioneer transaction. acquire more Together, Earlier we shareholders our recover in further significant all-stock will for Natural Upstream create agreement will both of an this more signed month, portfolio This and lower strengthen

way years ambition you the for zero a a water in recycling. good environment, it: security. the for advances is moments. net Permian and Pioneer's of few accelerate fully any This Good deal their to plan by good transaction win We will XX look leverage benefits good more economy for and the the Neil in about energy U.S. shareholders, say our for at

We're we market. the by refinery time to record At needed quarter our third drive inventories, and Products, per In refinery low XXX,XXX project a Beaumont is achieved new continuing of growth this strong on throughput Energy organically. highest to also expansion. barrels driven profitable demand providing much capacity of day the

year volume recently we capacity, XXX,XXX performance chemical which Baytown growing improves grows market. linear XXX,XXX up tons into addition, our In It olefins, alpha and expansion, of including our this tons per chemical provides of mix. marking entry started new

operational strong focus cash quarter of over on billion results and of earnings structural safety maintaining delivered of earnings we've reflect the improvements industry-leading improved past These reductions billion. reliability. $X.X while with as operations years We structural of delivered mix and assets our our $XX financial and we've several performance cost significant driven another from flow and the

plan, our billion deliver since fourth in quarter. the and lowered expect cost $X additional to our We structural savings XXXX, beating by

We continue processes, base our operations, turnaround and our chain. enhancing our capabilities our supply and to maintenance to opportunities including optimizing identify digital improve strengthening

production million our plan. guidance. full on are barrels investments year year-to-date of equivalent X.X with CapEx year-to-date oil of $XX.X on track Our is per billion day

in end of value. invest long-term We priority top continue range guidance advantaged we year XXXX to shareholder our the CapEx finish our expect at the high-return projects, creating as for to top

quarter, As success billion sharing in dividends billion always, on our $X.X distributions share in third the repurchases. the delivered and shareholder company's in with shareholders. We $X.X remain focused billion in $X.X we

turn Neil. over With to that, I'll it

Good Darren. everyone. Thanks, morning,

company undeveloped by the hardworking and Pioneer's Basin. with we with Midland inventory Its are employees base X and is deep innovative recently, operations in a of Permian. arguably the in asset is As knowledge shared matched largest premier Permian quality Pioneer workforce. of its you the possess unconventional Tier best the the pure-play

alone. When attributes and confident far could capabilities, than you combine us technology can our unlock together these more operational of we're we industry-leading with value either do

of per year billion annually before next decade, post and the tax $X double-digit driving beginning about in of an billion year second synergies We approximately returns. $X the over expect average closing

cost not to on exposure short our expect transaction we also initial only barrels cycle, production current the increase increasing light liquids our position, oil assessment, and crude the to Gulf chemical Based portfolio, combined XXXX. our this but equivalent the end the our of to low to Permian high-value day States. This Coast. in approximately Permian strengthens supply premier merger and United our X it by refinery U.S. Downstream, between per million footprint on also increases integration our transforms

transaction we're of our energy reducing others. and said we've both commitment. that the working Finally, to product times emissions, reflects society parts the and needs ours equation: and This Providing many "and" solve both

Permian XXXX We accelerate our from with to and combined emissions. zero production decrease net will plans Pioneer's increase plan Permian XXXX to our

it to pass With that, I'll Jennifer.

Neil. you, Thank

quick X with to have you. We announcements share

provide First, Kathy Time. annual our to please are calendars Zoom. going take update Darren from your remarks at corporate via live scheduled plan a.m. Central mark December analysts our questions and for and for Wednesday, X formal X, sell-side

Advancing an please Solutions for our XXXX eye Second, report. Climate keep out

expect publish in online We it mid-December. to

with session. call. going Q&A And bring that, the we're please to begin us Operator, [Operator our first Instructions]

with comes from The first Sachs. Goldman Mehta question Instructions] Neil [Operator

top incremental. me for I XX a walk Slide the first us The for and XX is feedback it. And interesting folks the in synergies are gotten around of moment the take are are to little transaction we've this a question investor as could the if context looking from clarity come of Permian is through to to you some And that on line better was here. more the wondering, productivity. Neil, on going

have demonstrated really technologies release the in we outlined that These with early a not or in and Delaware as stages is the are the of created for describe always synergies deployment close new deployment. already Midland. our I in earnings synergies It space either slides Yes, either that this in the are quantifiable the does pipeline of or existing deal of what operations, what to include the basis the transaction. real,

So performance. what demonstrated applying additional we've industry have demonstrated, either recover Pioneer an we're by existing X or equivalent more their could confident with we oil can than barrels, billion already

development the move And areas. get present to the cube parent-child were to higher And the in avoid we industry's obviously move One, value. X that. the in pioneer cube highlight to charts, to the that's development, impact. We net

resource. there on got And you XXXX has well. see the in But in can that, period, when Midland. cubes, cubes lower-quality developing rates, over equivalent at since drilling XXXX, cubes acreage, the we've Pioneer but chart both XXX% see we're that top The we've XXX% been lower-quality as can moved we're shows notably to XXX% you recovery

at recovery resource. lower-quality equivalent So

lateral Martin at Pioneer lead get our recovery. misleading to when In same cubes, important about and a generalizations are truly the we talk other us acreage, of XX% comparable can County, because peers really really, see drilling the looked XX,XXX where you we that's can bottom, and results. and we one adjacent And higher

Spraberry like that's C Wolfcamp all proportions. delivering, the the spacing we're are same that targeting orientation. includes to in zones. -- what's is Middle the the landing we vertical And varies similar stacking why what difference And and And targeting and is varies optimal what well These interval. are which things

you point one When what better on of about gives benches. would to efficiency, capital just deliver developing And we recovery. recovery, you've Neil, got as final you've cubes. describe it when that, better in got access secondary not just It's how economically terms

to obviously, and And other like As we higher addition, extension. that techniques the gives attempt of C Wolfcamp keep confidential, you which recall, recovery. like Jo this us level Mill we have in

Brackett The Research. with from question next comes Bernstein Bob

get come rig volume a think about Is production fixed outcome? CapEx I through? talk entity can from down synergies day is that how target, initial of is to most the and a the gating Or X view of as million-barrel and in activity XXXX, factor? or combined you adjust a you'll where that volume an the do When about or program your sort activity

have Yes, Bob, be target. again. a to it's want don't volume We Neil, clear. I

important. we a that's and have really, a We volume value really outcome, target, have

the barrels our the with that on that Basin. ExxonMobil to under plans, would initial diligence by through process, And capital day Pioneer's XXXX, Pioneer's a an of and as you about based million Midland a that Pioneer similar the can talked production and spending Delaware we Pioneer's access million equate X number operations outcome assessment that when our of by today see end basins, due also had anticipate we've barrels end would similar for X combined of XXXX. rigs, Based day to on of have our obviously, we've being get to we a

for add If Basin production both in million X barrels current it's Pioneer Midland you ExxonMobil today, and the at today. already

in volume improvements is Pioneer Pioneer I release. value. existing built capital with would synergies efficiency anticipate I've do that do a day It's outlined We That's say But an is making consistent in not spending why outcome million driving development. basis which basing focus that's on cube we we anticipate, on capital today. important, is of the though, the X operations. the in from really But the outlook the the just that from earnings outlined, improvements recovery. We that barrels really into are

The Stanley. next question with McDermott Devin from Morgan is

Great.

wanted having year, of that the ask part stick Upstream debottlenecking. part full you about your that The be full Payara of advantage Neil, ahead to slides here, better target. of startup, the year plan noted now to take bit and is in production and And seems on coming Guyana. the So a is little on with of call for that

then How on much I the few we you at FPSOs are you debottlenecking through opportunity. additional wanted repeatability uplift the focus how much realized nameplate? And outperformance to start Could walk next years. to us far so of is that this left? set as over look just versus the up the

was Guyana. start Destiny mean, mean, you. in nameplate Yes. a I boats are encouraged what X XXX,XXX operation day. by just that with I of day. really consistently been Liza-X XXX,XXX running or barrels we're we've in let's and we're barrels day. a about consistently above a Unity, Thank that a today. XXX,XXX the barrels a had seeing XXX,XXX at running capacity, that capacity We're Liza-X,

just would performance. are a day, combined bit getting quite good X close barrels is this a XXX,XXX comes And from, those above. say, which I operational to So

look and them, can push every You tweak more get you of out. operations, them, at aspect you the and you more

barrels would a be boats expect a that give hope, to starting wouldn't, type -- that nameplate start we we're would That XXX,XXX barrels Payara, up of that in reason day. the to of middle to We think is expect, XXX,XXX November. we'll up. we similar obviously, up a which capacity barrels The combined is to have day plan a no is us day have excess Now in But running like a uplift. to the with would we XXX,XXX first XXX,XXX of There of we more but start nameplate barrels, of capacity. be X production.

that, to pipeline, we've They're that. you're government. aware. XXX,XXX a day. are for Yellowtail, boats all Whiptail, more Yellowtail expect we and development hope And add of boats as we in these the pipeline, in FID the Whiptall, submitted barrels would to the construction. All Just in X reach got the then all the the boats. larger Uaru X Uaru plan in to XXXX that's and and to

And that at nameplate performance, performance, the a that boats. out combined give doesn't that But capacity the of million we've XXXX. the include barrels got will uplift day end X.X us of the of X in a first production

it on our do production get Payara. time, obviously protocols up it's we strive I -- we'll done the for for and settled, maximum boats. co-venturers, certainly country. then the organization, it's and out shareholders, get boats safely, the we once follow That's the mean, that the good the what X even we'll message same And of better first try good it start the and to start we've And boat. that's each for on on to And up

to add comment. would I Neil's Yes.

to optimization capacity and make If sure benefit of the we've terms best these Upstream of pipeline of our production our out but facilities we running the refinery and sure chemical every technology at our equipment. experience optimizing that the We've we and are plants piece of you in to And the big decades is now development projects. facilities, of only projects we we're together designing limits organizations. leveraging and in got different and these there decades in run to have was were and not brought recall, our make leveraging of all the together optimize terms the design organization we brought also capability that people the that squeeze

to of kind optimization, the which business, when refining it big has That Upstream has given facilities. the narrow payoffs of been very the the apply lifeblood margins, we

make to and so And strategy is is in the capability, thinking benefit of part the the one all has there's and beginning, of the which the best terms to of important an sure very projects, corporation from of broader across leveraging again, this that certainly been bringing additional bear just facilities our on organizational most we're those.

Leggate Doug from with is question America. next The Bank of

on to to years me, prolific if at be deeper I that forgive resource you double potential area, potentially you the advantage of and because targets also you don't XX a like the the couple Darren, take ago, this Neil bit from on your call proved significantly with announced, like I'd resource if being potential about, you the I'd question, follow as also look of original could in talked as that question had to time a larger. you to had Guyana if little frame Neil, may. mind, a But

number resource a that updated in haven't You while.

looks but submissions you Now the talk based about and yet in Guyana, Q, production. EIS not you've production to Fangtooth had like on Lancetfish. capacity your still It

So for this is, see the of you capacity as extended of of obviously as at my to do point? the keeping the these an you production full capacity or with ultimately period through to capability decade trajectory -- time, end sorry, what actual opposed production question boats

production parts X I to capacity. mean, is one that Yes. exploration, there's probably Thanks, and One and then Doug. is question.

including We've Let the aware, me which you're just had, handle this exploration recent discoveries most one. X first. as Lancetfish-X is year,

when significant as to appraisal drilling, change. of both those see continue a we're We resource to going update that exploration and base results, it we integrate and

frame And appraise and Stabroek of continuing in corner will and it southeast of of is, work program lot a way I we're discoveries. exploration block, And our lot the like the to the around of appraisal activity. to continues. Our take a that

We in have appraisal and exploration they're ships in drill the both -- X drilling. they're development, and basin,

part doing the what anchor the looking prospects further of would North to In in as that addition we're drilling describe that West. to Southeast block, we're further and the appraisal I the all to for

magnitude I look, in months, or true the got, drilling. to XX to what the That something probably can anchors, XX looking or and change wildcats of based results on the exploration call targets wells, continue that. next appraisal either of order X, for we like exploration We

when going in previous the update one something X those. something all we're and of see We've the clear So just, see are to outlined meaningful questions, very been have I've they we firm. we when And we significant. FPSOs in of that pipeline,

Indeed, they a full and them will time. have the you all strive capacity, keep to

resource these is will of cut that density in the that you water the the for the and about into everybody block as beauties the the which potential of one the Doug, knows, deepwater. As future. of well gives know, tiebacks proximity boats, But increase, Stabroek

like look. We production to we capacity versus talk optimize constantly we we we and as we about will So capacity, the as And go. go. the nameplate increase

And that's on the I will over boats And will a by to period. we as keep X.X. have is of as we of why of X have we can XXXX. oil liquids that of firm think or end strive capacity be will them we what so can obviously, They full nameplate

closer to I update mean, those I obviously, as numbers, the we we'll Doug. XXXX, think get

Richardson is question Evercore next with ISI. from The Stephen

this We'll Neil morning. busy Great. keep

it sounds and for day there you're is Pioneer. a on disclosure. one the like, from target previous position, comments, the about additive X I Appreciate thinking Another legacy still Pioneer output the and from incrementals. the guess the million-barrel Exxon your

on one around you bit Can them anything some X Or X more still are asset envision do high-grading other? about, activity Does versus of thinking the the about a you kind are assuming the as little of separates? acreage? -- talk you integrate higher-quality assets, as some prioritizing you you

assumptions or well. of about? talking that bolt-ons you're little acreage to length just could also, extending in positions maybe of about terms this And you a lot any bit a of work around Is there talk then do as lateral some

mean, very Yes. Yes. I early first I say of it's would in the all, process.

due now. we've course, into transition We're done Of the diligence.

capable very, it's X deep the of a the Midland I to is Pioneer a the Basin. very deep, that. we're very organization. Pioneer make of have organizations. What combination important are these about think excited demonstrated understanding point. really They've

resource. absolutely and job As we've is X-quality the this exceptional it, that of about Tier resource, fairway done of developing talked Pioneer have in an

different we've those seen technologies. side, a of that most plans work the And our correct. range From integration about. suggest is whole we're excited everything that of it's got techniques, of all the And operating transition and initial in development we've would

you are just and ExxonMobil If at inventory, an look opportunity it are bolt-ons. the Exxon position, that at and and obviously, where both acreage look Pioneer high-grading are, includes -- and the you gives for

to have folks. I and to forward look extraordinary have in very done job acreage that have his their Scott they And a basin, say Sheffield with we and working on land and organization, capable the organization and very, increasing an bolting those

So combination resource. it's to in powerful I think most developing that that's a be going

just said. I'll add to Yes. what Neil

been integrating paying around capabilities the it's years, dividends. what our same organizations, into that X and that huge really at been look we're and You doing last sure is like over the we've consolidating making concentrating organization, them

to intent Pioneer to business. expect into My at business, doing no this And Delaware. other The of to expectation the same our including our of what a acreage. their the advantages their fully time, people lot But the is advantages we bring bring is parts in of different. a integrate and is we'll we're lot organization people to

experts comes and that. whole the the create innovation value so really is and that you areas getting And collaboration around the by our from in taking strategy

what here. the organization as fact work separate the it So integrated But early be that to think seeing there Neil's will will through a development, seamless a approach And and won't plan. you're today, get be the and one. It we point, at we're together very be I stage. and plans one

from methane remote that in operations in field addition we -- methane tracking, one center one talked our drilling, that. that's just that's Steve, have well, as illustrate control in all a operations And central tracking tracking, control emissions Houston. operations Houston. center basin-wide small I Houston, we before where That's to that's

Obviously, you whole our have of it control operations to plan whole gives that gives time expertise, and the one in the would one What to Delaware center. that the of you all bring applied to is that central basins Pioneer central Midland be competency, all in from organization.

next from Read Fargo. is The Wells of question Roger

the like barrels. I with here, the, I'd dig here, Keeping theme to Yes. liquid slight guess, transition into value-added high call the high-margin Upstream it, or

So specifically, the and/or higher barrels XXX,XXX gas a have XXXX and versus kind of liquids as grown. declined been has in sold, day coming

you impact growth you period? think the say, over on the change what's the XXXX, to to the we how where growth that the barrels, as But total sort out the the in about of roughly in were, XXXX, to do the you Like margins, about us Permian, think in way and returns? of value-added Guyana, liquid compare transition that on impact the about for the X-year company right think

it's Neil again. Roger, Well,

plans Pioneer talk I park and about just the headlined our Let's XXXX, about the in that ExxonMobil. by as had in and they obviously, start, for moment, we were our strength the of pipeline. existing by talked Guyana and a And developments acquisition the XXXX Permian. the for Back just

increase liquids of in in at And from go total. in what our of the and look is liquefied portfolio if we said I portfolio XXXX, I the gas. in of to you of -- dry in XX% an is will something see or XX% gas percent percent what outlook XXXX a liquids the something sub-XX% reduction the our you if liquids thereabouts And will time around natural and to

crude to and going then to Guyana. the primarily have that, and end have Mozambique course, by we to XX%, developed, driven the to big us And decade. that New Permian are Guinea programs be the those it's the we at would we're takes in I transition, adding of of in to sales LNG LNG on call Papua an And in our but Brent quality the Obviously, indexed a So oil. of that's XX% liquids-indexed. up or of resources,

add other comment. just I'd one

take you and LNG, the should is us of that liquids-indexed the X% to remains, the take If gas which in gas. that XXXX. liquids Of XX% associated

production. So now associated liquids gas with it's

can see that at the we'll the of X% or in X% of be you time, that in that's acquisition. and gas our magnitude dry portfolio So Pioneer pre order of

Yes. more around add and supply back think the focused conceptually of what our step and the just one curve. I'd the just strategy we're side to if you to left-hand is Roger, do. trying moving Every business on to of cost that, of

remain So positioned the to robust cycle versus the that period competitively in commodity any in industry. we and those making we're sure that else everyone --

portfolio And time, that over collective the same to so the to to at time which and lowering higher-value -- drive our same reshape at left production we're increasing cost and to continues the cost, barrels, move adding revenue. lower the and

structural that's kind getting the the And in costs. doing, the seen the and that's value work of that's played game the we've And improvements in that and is -- high-grading where been portfolio that so out. the you've

structural this that the We actually meeting of third top quarter. costs billion the in mentioned achieved in quarter, we've $X the

So initial plans a quarter our ahead were. of what

We see to cost fourth savings. forward more in more we're expect deliver going that to with making in we've go changes organization we to quarter. continue the as And the structural the continuing, been

where also Upstream. high-performance it positioned basically you you that units So the portfolio versus our out that environment playing best products. there see see in in making the the successful where others around out bring of the the that the well we business, the been so that high-grading certainly sure produce to That we've be we playing price But in Chemical industry. the is is continue whole strategy strategy, resilient have in we're on irrespective out our we assets playing can and Downstream, and we're and commodity in, and that most that portfolio

strategy in that of So is each manifesting itself businesses. our

in I'll on just philosophy then we're that Solutions. same doing what add Carbon Low underpins And

where out it's a build ourselves making, that that the team cost in curve, clear of making and that sure we position view going sit that have abatement the every advantaged making of chain and you long that supply the his creating, of industry. Dan we're as curve, for sure versus will it the that think can be we're or As we're term, cost business of to every and value about investment the rest

question is from JPMorgan. of The Royall next John

the is to color year maybe question super tight us CapEx. midpoint? bridge It's not on material. my So now the this the that range, there top guiding end any helpful. you so be But Could help would for a just maybe you're versus

And then prior to Just I know December, year business for color moving on would any update give next legacy the you'll is in what give can there be on for you on in CapEx of directionally great. next but thinking us you're year your Pioneer? anything layering the pieces

Sure.

unusual in So I CapEx. going would say nothing really on

what we're investing tight a range high-return That's stated, in you projects. delivering. was start obviously, we're a As us with, exactly pretty to it that with focus on looking advantaged, ensure to

characterize that's get our plans. we on give consistent as later December. guidance can pretty a further update in that you And updated to corporate plan we would it discussion I So with when

very feel good we But about overall execution. our

typically projects bringing we're top that's quintile. schedule of online earlier, mentioned cost Darren kind at the As within a

our good priority, about and our really with high capabilities ongoing feel with focus that ensuring our executing we our for returns highest projects great execution So and our we're shareholders.

add just might to I Yes, that.

As we prosecute things the prosecute find move we because year we a think plan -- opportunities. plan, that we about the the with as into we CapEx, provide And time, going with -- a bit. additional recognize that around a range that

move so And around. things

our right we're where we at are third the plan. at quarter, through look you If on

value say date, the be. going see are of to range And out to ourselves where I we see always we're on that build it, would find to set going we things consistent we're a going continue things going it. not moving looking to that to we very to opportunity move proposition. forward, with do thought last guidance for go But the as so year. continue going opportunity we to as were set. the to sets But we look to to We're prosecute. pretty consistent artificially do constrain If we're going forward, if frankly, an to And we we opportunities had after we're planned

I establish, Solutions our think say, business more Low in and we'll matures change of I'd about spend coming Carbon the way. one we opportunities lot an is, that as there time a position, are that talking advantaged

way So we that highest talk that that are And those the the focus we'll opportunities, on into as priority our we're and our we making ones, portfolio. most the sure plan in generate ones working the more release. competitive value about get through

Jason from is question Gabelman Next TD of Cowen.

there but in how of few for the A months? figure have lot has processing Are And drilling get do months, lithium? news unit endeavors, And wanted about past few I you of ago, Exxon's X kind update months articles was things happened into lithium still past next Are on expect that. about over the your potential trended just to here the plans a growth in exploring you to an the and Smackover you X there? handful years?

Yes, sure. I'll take that.

the And stepping just broadly in I'll is of space. to of the the out go themselves think we -- and And an I those more to do, to capabilities. businesses that and capabilities advantage where are produce what products can society our it, we're context transition fundamental setting back key frankly, trying that's and and what needs. then maybe lend carve call back technology competencies the what

advantage focus to than need, is to world wisdom chase rather on narrative what is the as or would first say the current current the needs. so of figure higher is our contribute conventional the what And what -- going what I rest generate the returns industry, to bring then and therefore out than to and apply fundamentally an themselves can how world the advantages those we and

and for transition energy. batteries electrification the need important of power and in storage Obviously, lithium the an going is forward part and of

and with that the And drill of so much we've And than looked extract lower very the curve, reinject clearly, got Smackover competitive. opportunity space. in that, process to with the the the impact cost lithium at lithium. from the -- our And much, fits very well water for it's It a environmental supply production current ability brine and it's capabilities.

looks attractive. it So

to the and respect looking the where and capital. to becomes been we've that challenge Dan -- ExxonMobil Dan that portfolio team That's the we with to more at we're is case, synergistic that business promising. businesses. an with very what the pretty and see plan and his develop that potential base and it's develop business, our And his team as looking traditional for that's in competes leverage given more in a opportunity effectively concept that ExxonMobil's really things and good material And

out So wide stage. But say fairly I see and talk it going. about the talk business aperture we'll just this is come more about the looks promising And open. I we when think the where lithium at we would plan,

a what we've pretty for long good world's think that about. company, which is almost we businesses, and time, as discounts been largest energy one characterized an I feel the of chemical

transforming capability the this products leveraging and carbon capture to along in back And comes and into fundamental needs managing world that of our it other businesses capabilities. carbon And hydrogen, hydrogen storage. fits to that, molecules and biofuels, with lithium and our

And so continue to those. we'll develop

more generate to opportunity and that as high-return and the space again, opportunity promising. I said earlier, And looking projects more seeing

So part going to the I forward. that be would of expect portfolio

next Todd question Sandler. is The Piper of Ryan from

earlier of Maybe Permian on conversation. one follow-up some the

mean, as -- very long-term were known Permian your side a I always developing on of the On you plan. the

You've of on. built early infrastructure lot out a

transaction anticipated? arrive about in this or side, the basin potential bottlenecks infrastructure, any this you about additional the require any spend you over combined Will on day how place post-Pioneer On years. any you million whether just a in any that as see think shift barrels next maybe have comments around infrastructure infrastructure production? you the And need versus few you do things the of combined on think previously the at infrastructure on to X

Yes. question. take Ryan, that Neil. it's I'll

a Midland product the the and and Basin. developing I difference And It's far I got infrastructure done to Basin is infrastructure. for job water. both between Midland a mature more Delaware. and would an big think Delaware and has both contracting exceptional the there Pioneer acquiring you're difference aware, quite in that as say exit has versus

a place. in that. the at processing had Of it day of barrels expand gas. currently of infrastructure We've to built put We central that did XXX facility We a about of XXX,XXX Mcfd large scale. capacity called and this Delaware, We Cowboy. in about course, plan crude there have we to

infrastructure exists. that already of most Midland, In

talked place feel investment, to I like the put So it's seen very in that Quite that scale, Delaware. upfront. but from We we're contrast nothing about the that incremental Ryan, in made the investment in be the going benefiting now. investment XXXX And always We XXXX. a made about in it we and clearly Midland. we've that good Delaware. infrastructure the we in

Gulf we were the on the broader as are advantage proximity there's in to Permian, that, add but Permian that we integrated of recognize producing locale would us production. an to we go to if at we in to looking the certainly for geographic facilities our I value opportunity you in also and focused the take Coast optimize chain, the the back are time, molecules Yes.

so pipeline manage within the we systems, capability systems, logistic that. our built facility And to the

of value be value for maximizing so making with well fits into own of And broader going Midland bringing now that the an what we're we're facilities. portfolio and to in this integrated chain the play molecules the very sure those

deal, when And there this of details We the managing from clear got we as opportunity crude terms piece we a believe the additional that the from on equation, we've believe through there's there. the first value introduced in of through said we molecules work to which through is in end products, opportunity on the better that. and to whole end, finished the of -- get earlier to

on been really capacity built about to talking anticipated My we good I we our one by of view own sure frankly, molecules. upside feel It's additional for that's the making about. one needing that we've early is and that, ahead actually what

position there. in very So good we're a

do during seen I based we production bottlenecks? we levels mean, answer have we getting that work the any we is due far that in what bottlenecks and any the is, to so diligence, no, anticipate. Ryan, answer I question, your transition the the to the didn't anticipate on answer see And don't

question of next Dingmann Securities. is from Truist The Neal

looks cash even question bit to return. paid and maybe closer XXX% of over out my a than you you Darren, higher I free prior It quarter, you shareholder like maybe XXX%. Kathy, for is just about think on flow, that, following were the --

you your buybacks I'm kind as or I could maybe of just return, the thoughts think just out when about you if continue dividend you give color, side. the in Or look lean little shareholder the wondering, understand on you bit a role of think your into to I years? will

maybe a asking So forward. buybacks the going bit I'm more on on shareholder -- share

happy I'm to Sure. that. take

you paid quarter, And repurchase billion out $XX.X free $X.X in in between to shareholders. $X.X billion. just and if billion And split the our So cash was $XX program. that overall at flow results under was it we billion at for look dividends billion share $X.X the

quarter In we fact, billion, our and quarter, the billion. up in ended cash actually at $X.X the $XX went balance

under of we So in and our you in we paid balance can well terms that strengthen XXX% to in enables even is I cash sheet what which out, think were, quarter, the see fact, grow our what further. balance us

When overall to capital allocation, to same. our be you at priorities the look continue our approach

there And a seen us. and let's really at you've and to in that both sheet organically, returns point, will foremost, that strong the recently, as into. balance for well, balance need drive First going against making for Ultimately, We sure high to differentiated, do we're that investing advantaged make as us sure that. shareholders. sheet. lean right, cycle We will we're projects, are our be inorganically some turn maintaining

how those continue to We're shareholders. our think balance be balanced Again, And can I with in the dividends program. our of the that. I approach consistent being coming as share to And in seeing repurchases. through repurchase between we more share our rewards that to and success looking see and think company you're share you

$XX.X place, say of We'll program have similar in to year. for repurchases already place complete before share continue the to We that the execute on we a we're year, and XXXX. in of track billion this end a program

to it's that balance carry can to trying important us and a we're we continue balance maintain that that So cycles. through the strong right, get sheet

next Scotiabank. Paul Our from Cheng question with is

Neil, far it's we Permian? to or for emission in us, the electrify could. is the for move and you electricity in where much How in operation reason as of share industry your are in to seems Exxon cost with the you the Permian, that operation turn Can journey? whether as terms efficiency,

don't that, you're I comparing aggressively you're and them when going on the you on are to that the Pioneer, whether benefit, be have or is that to know going of whether can will part the guys that of to this you you do if synergy that this billion X And information of ahead or be share top. more

running XX have, perspective, our I Permian. From Yes. now think, Thanks, the Paul. we rigs right in

electrified. are rigs those of All

we're XXX% working and on So fracs. rigs, we're on

all frac I we've in that frac will Permian. we part we Permian to is X get now, crews Right have net drive one out think the of our This to by zero running to of electric XXXX. get said

in Our place for and for plans are we're that, on schedule it.

emissions. program that this, We're emissions. you goes I reducing simple as is to methane mean, as well have with methane track on reduce

We have no routine flaring Permian. in the

replaced over X,XXX we've devices. Now pneumatic

we Then And So the and rigs And way working just frac we're we're program the down as have you terms a we're of for operations. emissions. in electricity eliminate -- that's your And I've you electrify described, crews. reduce those then electrification. road methane long to you and renewable on. secure

have said Pioneer's target I XXXX, process XX numbers zero go advance Pioneer, But don't And terms same electrification. that XXXX protocol, sooner of we're on to what electrification of will methane, we that is those to in are that of of to electricity. years reducing terms they net going Pioneer have to anticipated. renewable In than so and securing from that follow same where then

add I would Yes. that. to

a been is drive down. The think methane. we And measure, they've Scott I manage Pioneer technology area team more organization, working resources. the broadly technical them. and and large better got organizations develop has organization industry better leaning We've know to been a other I the into space has the of hard to that the got to worked with been and those that at this an we've bring advantage for focus -- have

responding Neil everything monitor scale our to talked that, it's frankly, portfolio place in to by sure space real apply there. with us kind centralized about doing center and has in I lot the additional make then to of allowed we're the the size bringing going a out into we're things big seeing operating time work just think to advance, the that improvement in Pioneer central of that to the organization that center. to a through and Bringing that's in put happening Pioneer us make that what we're allowing we've unconventional capability

already and to We're think apply. mindset is resources culture place. the bring now going and tools in additional to some I the

very bringing And so raise -- think, focus was already, support my some additional for expectation a organization. see to is we're the game going going to because that Pioneer capability important we're to just I here we're what the

-- benefit? And into built your electrification the that already Neil, just $X the synergy in billion saving is from

of the times, I Yes. as talked it's I synergy we've many many, just know the you mean, about in and cost not about of benefits, it's of about quality terms rig, rigs mean, the the of plans electrification those But of the performance into those of built doesn't that. electrification rig facilities and the rig. really impact all is our The going of the forward.

built -- zero our commitment forward say net by -- would the I that around there. we've and thinking also Yes. to bring get XX drive net their into years, synergies our

we've ambitions effort their zero So emissions to required the and improve forward. bring profile net the additional comprehended

numbers. that's all netted So synergy with our

John is Josh with excuse me, from Silverstein question UBS. next -- The

you the acquisition mentioned in Pioneer split get contemplate the of having the because So curious I'm outlined, there rate combined between was companies Delaware years. that view you XX, more years the some longer Permian On just I was your XX of potential previously Pioneer plateau? there And XX or asset that does the be inventory. how just a to inventory asset. around growth over Pioneer call, and the details had it accelerated laterals of was curious may

there So be details any helpful. more would

Yes.

That's understanding. mean, companies years is stages. release resources is on certainly referenced XX life. combined in our XX that XX it's of to We'd you magnitude equivalent just gave, the I order we our initial the and Josh, based barrels. billion that early think, X say numbers I the oil of

the in as resources, Pioneer our Midland of Most is aware, exclusive is side. you're Yes. in the Obviously, Delaware side.

that's is. on early assessments. based it I So mean, our where It's

versus details there just Yes. on what be like far XX billion was Well, split theirs of just if as what your Got as may that any may more it. -- be.

say Exxon is to our I I Yes. I Pioneer -- initial total understanding. would that's is close closer say X, in mean, to on in total. is what X, closer based would But that

resource. the For

yes. the For resource,

is Our Margolin final from Sam question Wolfe Research. of

increase you've capital in -- allocation the the I of and amount past, question up And We've The lot as the on roughly the increase looks same dividend talked to but a know of it's this dividend this terms you're the follow the percentage. specifically. about repurchase wanted but like basis sort I got share even in growth. you're And And on also too, issuing about running to as cash we is growing, learned before of for Pioneer, the a surplus in shares lot with significant a Downstream pathway a product Upstream then of solutions this a recurring spotlights. operational growth.

and balance of this line tending translate of thoughts where and just sort the to the sort to were that going this and of now wondering if portfolio are growth on dividend is so about a in operations. CAGR we growth you period sheet will some dividend And your forward, with through the I'm

Sure.

that's a we looking we So ensure have said competitive always we're have growing. to and dividend sustainable,

that, over I also seen it we of overall that couple the the reflective $X.XX the the we've in the quarterly years. last earnings have think of that the right? underlying reflects is to think improvement confidence very I increase dividend in business power and of

of earnings, Whether And have returns, great cash, you quarter. any is a business. by was very it shareholder degree strong metric, strong in this mean, really confidence quarter. the I a look a we at

fourth Obviously, So we cadence the in our increase a of at year. confidence of dividend have we the in ago. is than year the did And that our about reflective a looking now very increased business we performance. of a the underlying the dividend quarter and more bit

work as shareholders. as just to commitment dividend we add Sam. things we're we we make the continuing view get that hard Obviously, when And to to that, that our the pandemic, even I'll on deliver Yes. to sure a through commitment. saw tough,

that, and sure to at sustainability irrespective that the market volatility what need forward about ability and and growth the And the cycle, make so the commodity that about of commitment, dividend, on in think to we us. in about we as markets throws think deliver also the we going think as the we

goes So about into the that forward. equation going think as we that

And we obviously, which when the well. looking as we've buyback, to we've got we're of additional level have a Kathy always got to said, consistent distribute, cash that that as more want

question. So kind of how that's Thanks we're it. for thinking about the

Thanks, everyone, questions joining call for and today. your the for

update. to look the connecting week. We plan a our back session post on I'll to With our will everyone, to Q&A it next December Investor weekend, that, X call. transcript you of again the a and with for have We conclude on corporate turn forward nice operator our website

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