Exxon Mobil (XOM) 2 Aug 242024 Q2 Earnings call transcript

Good day, everyone, and welcome to this ExxonMobil Corporation's Second Quarter 2024 Earnings Call. Today's call is being recorded. At this time, I would like to turn the call over to the Vice President of Investor Relations, Ms. Jennifer [indiscernible]. Please go ahead, ma'am.

Good morning, everyone. Quarter Call. Second ExxonMobil's to XXXX Earnings Welcome We joining us. appreciate you Vice I'm Investor President, Relations. Chapman, and Treasurer Jim I'm CEO; Senior CFO. and by Kathy joined Darren Mikells, Vice Woods, President Chairman and and

section are accompany to second the quarter which on remarks same are release, the prerecorded news posted and website. They presentation the This Investors is of earnings location. our meant available in

and still During uncertainties. subject and integration plans of our today's long-term are cautionary our presentation, we'll read which which Please make being are statement forward-looking to X. and comments, risks including discussions Slide developed efforts, on

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

And over turn Darren remarks. opening it for now I'll to

the ExxonMobil's Good remains quarter earnings $X.X morning, billion, performance our we strong. In in XX joining thanks second delivered for second quarter, of last and second-best years. us. the results

Just continue to her fundamental while firm. as on the second the as were in important, of our the Kathy in available remarks remained soft prepared quarter, we market earnings company, conditions covers prices power website. Overall improve

set production production barrels Including our million acquisition even Permian. surged quarter, from real The once $XX further. records between we at XXXX. and reminder, that a day. X.X increases cash again assets the XXXX per to $XXX Pioneer surplus chemical from million As a XX-year Permian in to billion and and in and expect In advantaged our Pioneer, $XX refinery Brent $XX between average generate barrel margins, the Guyana to in cumulative we

performance sales of products new to X% In a rose Product Solutions, sequentially high-return our record.

of priorities, quarter $X.X support the which billion in including billion shareholders, to continues allocation to performance distribution in was of strong dividends. $X.X the capital our Our

combined companies. the transaction, and now unconventional bring Pioneer, our we We who the the entrepreneurial as of With the to ExxonMobil, resource a of benefit begun to from of deep former the them stock, strength strong, who've just include in owners development. shareholders close do our people expertise of Pioneer Pioneer talented welcome mindset

large, I type to over transaction several more for merger execution. team the the this years time We complete The in than to want average of has closed also last their months. recognize XX Pioneer combined in been where excellence structured demonstrating acquisitions. highly X, is of once requiring again including strength work, organization complicated action, disciplined large executing effectively we our and in challenging projects, thinking, the areas deep excel. It a approach

December. and in is the Spotlight grow value the all confident we're The days, we'll it's I'm sharing these more than at to Upstream doing Plan deliver work other synergies expectations, update forward our early Although team and still and even exceeding Corporate details announced. integration looks to our significantly we've

value for oil XXX per only As future. higher we renewables in XX% XXXX, and month, than look the our to opportunities energy in is ahead, around demand grow we'll global see our through at we this Later demand Corporate at gas but not global holding today. Plan period, barrels We see which projects demand while million into it considerably. day outlook, grows natural steady publish long XXXX

carbon transition. Mobil, more growth for prosperity, biofuels the by and not the opportunity In as economic of energy no direction time, to by advantage, we industry where creates becomes and meaningfully Over will the be energy obvious capture more driven levels technologies renewables, or more hydrogen, world rely and powered abundant have including will rising storage. and future transportation that Exxon commercial heavy speed an of come on matter it

all solar. the carbon The simply from support to not world economics focus fundamentally oil gas transition this the to A low as serious and on and and to energy, should moving carbon wind high from data, necessary. science approach

Our flexible, and extremely irrespective capabilities it strong advantages And reflects any of is profitability, under reality. relies strategy scenario, corporate society it delivering takes. same since the the on this path to

meet In serving unique As as were producing defined a and product no future ExxonMobil began lamps. existing company maker on our it by our the by that industry. a ExxonMobil products needs lamp meet needs, kerosene as combination Today, of will not competitive technology molecules kerosene thinks the We suite. be advantages. is always, defined society's future, the to by company a for as transforms of drawing technologies world's to of one the

needs, a more with I shared lower-value helping molecules for carbon market to We and carbon can a significant gasoline achieve meet materials see resin transform the Two products a existing while developing Proxxima we're where new future. boxes potential With that effectively materials. advanced construction lower variety Proxxima, you world vehicles. thermoset and high-value composites coatings, are electric high-performance, be of technologies light examples cars into trucks, battery used we and in including for and

million at stronger, leading more and with world's hard-to-replicate above potential, fewer market and with start-ups Texas, and in business exhibition billion opportunity GHG and new March, projects are alternatives. that We're composite That's than total faster with growing expand automotive the progressing Proxxima lighter, of strategy returns X $XX Paris. with unique durable the significant XXXX, and we see XX%. significantly international advantages, uses Proxxima XXXX where capabilities. made We demand exciting Materials consistent core Proxxima and the an by Proxxima. emissions showcased our produce In have addressable traditional tons significantly will for with our planned we with GDP than production at at profit in in

carbon-rich carbon of of also with the of for These products growth include outpacing sizable fiber, structure from high-value GDP. the molecular transforming feeds polymer applications. additives our a and per battery refining in carbon ton rates a low-value, market targeting dollars range opportunity in several segments processes materials, and thousand We materials. We're see margins

businesses. North building American footprint, manufacturing a with of foundation for combined margin our competitive compelling advantages scale, integration, Our new technology provides and these

team we investments of up to those develop these into and the to and plans will come. to earnings our of make lean opportunities overall challenged them the ramp Product diversify businesses. to decades accelerate sooner, for meaningful portfolio grow of significantly a part can growth I've further I shareholder that help both new value profitable Solutions hope

history has establishing ExxonMobil long established from parts materials, use potential. our XX, highly the production X capacity which attractive of grown annum, products new per with construction we Max and performance metric enhance total growth and personal significantly XXX,XXX performance We've care to and grades high-value annual Consider and tons returns a packaging. polymer Vista Max, to successfully markets. from to auto Vista of more products growing of everything for launched and

Of over course, investing X years, the track the record consistent the with for be we've high. hurdle will established last

returns generate to resilient the possess and bottom clear competitive have to will advantages any commodity of be investment Any cycle. competitive

flow As we've in to I growth earnings, demonstrated, robust about look shareholder December. opportunities more our sharing capital cash forward and allocation returns. have decisions generated our

have closing, In a we lot to about. good feel

performance Our is strong.

Pioneer range the with more a already we build merger And future products value, including tremendous come. continue far and grow enable energy develop is wide transition. to across with a of rapid businesses profitably scenarios, into to creating us will Our to that

we'd that, your take to With be questions. happy

Darren. you, Thank

Q&A you our please operator, our to we'll [Operator line for the to with open session. ask question. move we'll Instructions] first Now And that,

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

expectations. are? some under of to the you umbrella. your your those volume your build to one, synergies Can on tracking on to alluded relative on comments delineate help it's now how curve performing expectations? from ahead and Pioneer outperformance that want of And build a Can of comments type asset you what I around, is perspective two, bots you

I'll But of the few X change prior seen the would Yes. work of I start add team control then top to comments and Neil, then in. extremely the with say then let is of Kathy since a on in and months that. what days yet, we've encouraging. early kind

assets going to people Pioneer a quarter. delivered the was context the that doing. with basically think merger, on respect of all if stated, the to and that in there I And we've that the testament the work second a change been quality the the of real performance record the about you doing they've think As

vectors I'd say up. So all are pointing

we think process. But better in early probably also it's what say had than the anticipated. would I I

working are value practices opportunities ExxonMobil from has opportunities transfer see frankly, Pioneer could think opposite frankly, either lot of sides a to than, I of best fence. it. the the essentially more a together about to were that think to, associated has the with Pioneer. likewise, And best size transfer into led lot into together, us today when now a identifying tremendous of our number And some well leverage teams you The we're ExxonMobil which which on we base, of of see very practices when we working,

through worked being all And so that's detail. in

know, detailed some objectives on behind by them. already magnitude, But upside at deliver are able very that potential, plans those you see working in we'll which the that we to our based but is be commit in we As the the significant to them, when sit only plans. some not organization pace today of

So there. let add I think really Kathy additional Kathy? I'll details. maybe a story positive And some

Sure.

that I think had by one of from we've pleased really Pioneer. of the is already things the number we've learnings been

not only of but bunch them, our will to to so bringing development us. cube they're And bring we a and learnings technology

I'd done our the order So blocking drilling logistics our in in operations up leverage their [indiscernible] we're good chain. center years procurement really of expertise. supply been up side, think of utilizing some own acreage. us say, help They've that on can we to They've remote the their things completions already and improve to kind over

that thing another that's we from. think we can benefit So ultimately

a in Midland to everyone I we'll got knows, that. Basin, And and also quite then infrastructure be think as large they've looking water the leverage

good pleased to look to bring table. that an start the utilizes integration we table, plan with them, really the with they a technology really the bring that and we development we're been we've to off fully building as what at So

we'll so have that forward in to do the And we're the a update December. looking and plan we're going to on spotlight and update we're We're synergies how a with upstream, at at time. corporate where going

time I U.S. just, continue It's businesses. That's the to good case. we a people living cost U.S. be good at for were U.S. acquisition with good off, in going energy in environmentally it the more I we critically, friendly the But U.S. good U.S. for to emphasize, that security. guess, good our obviously economy. good we it's a the Yes. continues announced more to to we lower Neil, we it's as produce the for barrels said It's cap -- And the for company. That way. the the time, at when It's for said for more importantly, at

the I think to time, all. for is, proposition going I win-win as So said a this at be

is with Betty question next from Jiang Barclays. The

talked region that's just I hitting Since on, about other the production. head Permian also

and the produce continue? well get just yet to expectations, an see projects So likely just of type that to the FPSO continue expect the of, you far, Would translatable love this is volumes do continue understanding performance of to come? that's to would for capacity. what to think you future And for is

would you to investment production. we're I we I'll had decision production some significant the seeing Thank on well Sure. from the that, we them. as organization say on, Betty. And based making all is are taking you. that's X effort that and again. high-value what it rates improvements hear continuing with of to across above and grow what focusing seeing you're take of commented, development what a you Good collective sure very is

next. to the try that account as take We develop into we

into you theory, continue complemented us would frankly, that is and experience organization, telling the our in so by otherwise, see think But to this base we build that. which And don't we organization, and functionalized now element is that sustainability and organization, maximizing our have doing the value. global technology our that work of organization very created on focused every operations with we're the

and And to opportunities. that these so they find new with organizations focus, additional continue

That's people our with to FID. basis teams I capacity. we its get itself and bet But you doing safely find then up development get it's So you, to opportunities the I that. this to would the demonstrating tell also history -- it let it, would long tell outperformance is we'll of bet unique that we've would find But I I opportunity versus valuable a unique and got the after and to unto it clearly on increase and see that would every continue on and which just running, here. itself

Leggate comes question Doug next with The Research. Wolf from

Darren, thanks Still moniker, me getting new but on. to used for the having

got you've wonder door. a I I So Pioneer about that could ask question if now the in portfolio

asset haven't disposal things You've really front you've had a much the maybe heard of -- certain lot we while. lot Guyana, tails I'm forward? portfolio the that high-grading And portfolio. I'm on the that Permian very a for a what you perhaps in it are got terms in characterize noncore, in curious, of significant of could the a just And as assets, extent, curious got you've means and X concentrated going now if opportunities to

Yes, we've that $XX been then Kathy let I'll the and we with if fairly divest actually, going about would that, she add I say we after to. were tail. in Remember, But think announced I'll back billion wants start to had anything over I time. going XXXX, aggressively

we've doing. we think Of divest can be marketing that into we not -- been march. assets when conditions we got And ensure this to realized. we basically we course, pandemic not We're the market value a said the frankly, what going can the our is that and we're that realize going forced the that's to

quarter think look Upstream. then gotten today, on look if dollars we've added been So what as at billion at the Downstream, second to there's the another we're in $XX year, that this the basically top you doing we've in at few that. you of we've where billion And

we're from on, frankly, significant assets of made assess make and Obviously, in to tail we'll portfolio up things few they that every that a working competitively and the So the cleaning are there's one advantaged. progress. sure standpoint, we've a more continue to

as an sure we supply. at compete industry-wide and to investments, the product at force advantaged cost investments new And frankly, those basis on be make can low supply versus therefore, that and we of industry, they're look

positioned look that with businesses. on and up supply process divest. cost come them industry options. if not across our left with more all moves been then we competitive to all on of We organization curve, advantaged the we has the makes an And that investment to has also them of curve, And they're ongoing X the our that competitively assets. existing do supply or Either an of

the say, significantly. we should be staying off that to we -- meet I see think Being term. when order revalue -- wouldn't were But it But we has patient. obviously, big the where to timing is to to divestments I paid process. of needs function steady. And then to market rush action of And to then for what here those Waiting just I in do, a take that We're We're going not the value realizing would accurate. for bring. very we're we'll we continue look in us it don't step any going said basically, it. and be medium to delivering at changes the

in I'd thing see [ you Neil other only the note, bridge... And ], \is cash flow our can

Doug. Doug.

Doug. I'm sorry,

cash in we would Sorry. But some quarter. first every quarter, In divestments year, lot for half generated in in that consistently, in occurring. that you $X.X are that from us pretty can was more note, And the positive proceeds and billion. the so the of bringing see we're the I just had our earnings flow a activity then bridges, of Upstream,

morning, being remarks that of divestments, my earnings lot Pioneer. look you one-off of only that kind at sort associated offset Upstream we items, I by the other prepared in costs published $XXX about and million a one-off of in was so coming the from if talked partially And with these earlier this

Terrific. It so would Kathy. I if called been worse me, But you much. have appreciate Jennifer, it. thanks

that. Yes. Good. Appreciate

about that, Sorry Doug.

from Devin question is next with Stanley. McDermott Morgan The

laid year, wedge few is in growing remarks capital corporate prepared your see. I the of on to years. is the this lot carbon over out to a it and of had spending in plan There's there, months great the low last been initiatives. overall the a past of back lot late next some you of updates few each quarters, your And Darren, seems, good So of progress you which think a

wondering, some focused to was you're I capital of actually on [indiscernible] opportunities, areas. So about start to these for investment more what these more miles locking

production. about commercial needed move technology what's or more an make something with development, offtake, you those or the to [indiscernible] it regulatory on clarity, in materials final talked decision So lithium investment else? forward scale carbon build in Is

Yes. Sure.

your up I slightly I If hit then that, I gist in think bit please question. steer of the different got broke don't Devin, just to direction. You a on a little but mark,

along use think your the around the products that in say, low to of investments required and our significant lower to advantaged versus fact, bring move low talking in future, been in returns businesses application, have would new carbon have products and in they what's they a portfolio to of kind we contribute have in what's today today's good just of commodity cycles. question -- across carbon fundamentally, I continue value they portfolio, while basically the across about. in solution also to to we've expect the out that in be I carbon there to the compete these they generate some they

in fundamental that we've new these to philosophy also in the base is so businesses been And business the that applying generate. we're required -- trying the

what and Solutions of that's that's to of that So also organization stuff coming Dan the but meet foundational then Product each hurdle. has Ammann, in the out particular, -- got initial

And each clear capture the to deliver would team with business. storage, on that hurdles business brand-new then are he building little vary across as bit. a and in expectation and say of his look the carbon Dan's them, you to I

infrastructure is would think, and developing to developing and kick started. the initial on, I to very few, say, system, the of supply are the and are general, also the company get things developing logistics the I examples market demand where needed developing there advocating and not so And but the while only capacity the what in technology policies

this along just I lot say parts industry company, that complicated truly to decades particularly and leveraging moving community, good But Upstream, a that is. business would and the of enough broader other far I say we're those our over haven't it would are capabilities in capability there how really this there. doing gotten parts. we've built So leveraging and frankly, making the capacity of in progress the appreciate the

ongoing. we'll blue are will that element we've those hydrogen of process as that line intent sight does, project, got can here the we've to critical regulations the of into is optimistic reflect the project On a deliver. that FID attractive think final And it project IRA that -- what then if the and and worked I a very the a getting can translated legislation. regulations that's that's regulations, have we finalized. a been really engineering through good the of legislation Obviously, once We're

So that in I'm optimistic space.

And have of portfolio. carbon Dan's just as pipeline a you added may XXX,XXX tons and seen, work. And we've the another into there's team continues storage to capture that

in So we capture returns the continued good with opportunity of side see the and growth carbon equation.

On it's bringing lithium lithium respect a And technology. established potential new market, thing, with new while on small course, method fairly of its the is. some what is we're ultimate an to with production

what to feel a understand investments the are there is got And again, on But required to again, needs versus establish we've there demand real about the else growing the lithium. to that come and good to doing what out I so advantage in ensure work else meet and and what that.

foundation. We've make through that We're looking build we the spent. get very told long-term looking not a sure to this something, rush get don't and -- we're team, strong to money

new none So It's in the these that businesses all about doing establishing is successful schedule-driven. foundations. long-term of work we're

our to effort with say, And and and leverage there. very think, barriers good on to unmet progress been a we're quite entry that time, the making We've on really high transform capabilities just which competitive carbon molecules to got I needs. think broader markets And technical that is exist that's ventures, apply and that to then some, with advantages Proxxima. which for briefly maybe we've Proxxima touch some I

as we as of prosecute business And that establish because it kind so to I'm real and see we anxious there. potential can quickly

with Carbon the our same performance. Ventures, molecule, and And structures the improve transform leveraging that molecules get again, ability to shape some

I there. think opportunity there's a big

is I in what real opportunity required my would to I've said the that's we've still a would the some as Ventures -- realistic but technology Carbon be to Product business what's gone investment look see cycle, So there. think Solutions but I is far along early I plan enough And organization remarks, like the establish prepared and in the given challenge that. say

positions but good that's it value today, because well. grows also it us And

to it become their molecules less those feedstock As applications. demanded traditional much a in these becomes applications, new lower

of through business diversify And or so to transition. the we a and diversify move the business opportunity there's lot slate as the the protect

answer, the here, frankly, So of there things. play but making managing. feel lot long capability progress at that we a all we're comfortable demonstrates those our very to think variables manage variables I And

The with next question is JPMorgan. Royall John from

So as obviously, range. see my CapEx you legacy of CapEx We the $XX talk the up of Pioneer the that for you year? And up top to guidance the moved drivers prior But on end the in can to legacy is to layered then question update. CapEx bumping the the billion you about well.

But then range out here. the that to build not John, year, kind on -- way the slice summertime you we so the The some put And Yes. then end. say, we the of and lot spending. time Kathy we guys reduce -- on starting is let And and and with go in be the a from I'll the -- evolve, to as that we've to optionality previous middle is on range load we way into year. CapEx fix up. as them it the of and have evolve panning these year opportunities in may got meant that start things other there's may expect, October. the That and Or a of are this find things plans as we if previous number. finish the the down out range a in reason the develop we middle the lock this of obviously, around

things in evolve like. is expect somewhere where we that and opportunity [indiscernible] range So set the what truly be looks to how

into opportunities from plan which we of projects. that worked the But invest that, highly that October And as we're we see this we last year, Kathy, continue year lot is make sure we of the with basically, the mean puts in add using here anything to last I could to understood went add focus are us to at attractive profitable at advantaged, into way investing a what our opportunity we we of key highly look that. set number end the to And then Pioneer process that? why That's in the top we're coming to course, consistent top of year. on like as XX%. in of

XXXX I say, all have say, of for pace would room, would the therefore, just are No, that the as online in can't I coming we of of those and obviously, projects sure online our lot enough initial all year. making we in that that exact together supporting of XXXX. sort coming a put guidance of all in of predict projects of those. And the provided pinpoint, plans We we

as just huge be a year coming so And It's example. as China going is project. online an X to example, next an early

give the always with. why we bit is take, start give there's to little range and a which of So

from is TD Gabelman with question next The Jason Cowen.

Guyana complex. the I kind other to of and a pipeline actually XX in boat. the just mentioned, the on China Golden more earnings as contributors,include upstream, little detail online, that projects to you the chemicals and Permian up largest I on the next for wanted coming thanks the products then, bit crude But think the then follow and Pass

kind and I through the was color those more provide if projects could progressing of of year? just on you they're phasing how a in So little terms wondering

put consistent obviously are I that the Golden planned the So with the with with the all, the we plans exception we projects say dates talked out, and development Pass, about. announced that consistent moving would of

the All the position areas expect the to the think for Underpinning that And the projects, going we of work doing. of never them, make feel of sure contributions, any in good terms think instead projects the feel that the they to good is returns I in out projects, get those the to that compete the in I these case continue market take we're about. cycle. we we're about of earnings a really to when we'd be on, but cycle, can of come on where try all we

if you that, XXXX at portfolio, found those projects. you which return we if actually the at look exceeding of we've online, we've in it's that since brought aggregate investments basis made FID-ed the And the look

conditions. as the at we've Chemical say in Even bottom-of-cycle business, been,

paying drive So the I is time is we portfolio project continuing it of to faster execution make within off. And organization to generally global continue really therefore, think cost in to delivering more -- we the basis of are keeping to best spend course, sure advantaged and sooner. effective our very the our demonstrate projects with bringing FID Kathy... the then, ourselves these value well and, case

Yes. And for just would E&PS a I note, especially our business. and big year

So One. hit China already I

project. Singapore couple You a is of big pretty project the noted projects. I upgrade mean, resid a

have for sulfur We online to XXXX. Vale project project the Strathcona renewable upgrade diesel coming an at order in in bring on ultra-low diesel. We've got

projects in business number have E&PS the terms for of year online. of big we the coming really a So

continue advanced going our And to recycling. then expand we're to

adding year. capacity So we'll next be more as well

by we see and underlying projects you a coming we being talk on about slides, earnings again, noted, if look at everything supported XXXX. the in business, that IR growth in of E&PS So you our driver big

is from question Biraj with next The RBC. Borkhataria

Pass. question, up follow specifically to on wanted Just Jason's on and more Golden

If guess, this portfolio, you scheduled liquid just at your is So point, the update remarks. I to the the I then your prepared of some question are able about LNG. or going second liquids your to to lot guidance is think linked a confirm, of start-up? for growth And Upstream

liquid linked Upstream business. XX% of to say you is think now I your

this your Or on your be? is as building is was intentional where out there diversify portfolio thinking, trading sales you So mix and I you're function, more? LNG any want to that desire to

part it to market. oil. get the last LNG of is investments, sell start weighted building liquid And if and I'll sign market large you frankly, those when linked the tend LNG to you're you Sure. with to advance which is Yes. the a decision contracts question, the is today look at conscious on out prices. the And in projects, which of

so developments, to got a to so the bring have we've a we projects as on And desire the continue those sales significant lock of side up. those in of we portion equation surety

and continue my with that. So be that, is weighted we'll to expectation comfortable on we're very

brought been been the a in job drive and And look and CNBC, this In any basically a and producing today, in into the shift there's oil of little Neil at on Exxon oil weighting if we're the side. since morning fact, get that heavier huge producing oil I've I the merger more as at since you we're Upstream mentioned,this portfolio Mobil. time than the to

So that strategy is beginning to manifest itself.

-- we've venture Zachry. through just your settlement with project, reached gotten On Pass just a the so Golden

And Obviously, process and of venture kind days so restaffing the we're that early very getting back in again. the in up is started that. of of

So more done. back to can. they And as teams project close very to as quickly work, that in as and effectively and to executing there's schedule work can on they focused be as still the bringing course, of the getting are original

now, estimate is our see going we're Right a slippage. about X-month to

of do. expectation try and but up to my they And back than in mandate current we've will back better for kind anticipated work effectively my currently of But getting to that have of can. We bring XXXX are just as first schedule LNG had And So that's of clear running, at a LNG. we first it again, probably looking condition is. middle got think, to as where kind would just the teams with that now -- the and are in they is the the next end year. do I we

question with Evercore. from Stephen next Richardson The is

interesting project I wondering in all execution could and short on the you a of in projects about conversations important and order. appreciate the back. really if circle got number how you've was Downstream I and coming projects

your the the do of out of you've you plan well. Darren, that E&PS 'XX, seemingly teams new still integration and think to think out horizon bit years. last just in could portfolio length as are and bring projects you quite pace address you maybe mix terms interesting. and over number E&PS? talk of in in Upstream investment chemicals of that Maybe of And beyond added about to you and is opportunities continuing the kind as continuing 'XX, a the the wondering, And interesting Just

because Steve, touched you question, the really important a think appreciate I point. I on No, Sure.

longer of we've I think no done is making. that products business the with the restructuring the we're our of one that identify we advantages

businesses organization go fuels, functional a we organizations a we the marketing that time, established, combined had you if into heritage they but a organization which, every organization, again, organized fuels that was products, is is core around technology to by producing company the heritage refining support. of marketing instead we chemical and marketing that's Product refining Solutions organized organization, capabilities chemicals. businesses So is that which core had around back technical that deliver we not and to any or now in that products, capabilities, our We've a value supported all

lot way while opened a think in intuitively in up also may here the we advantages, of and the about be core has talk not take obvious, structure and So we do that the change core it of our space capabilities. challenge about white business is terms how

which and a to includes ability and business Some we with our in technology applications, of that's because to in context frankly, of very is to core that, applying that have place. a focused it organization applications starting they identified and of upsell organizations challenges business to footprint, unlock been on use and but the the identify the value includes lot technology had past fit combine in didn't that opportunities, it capabilities existing our wouldn't

much bigger. much is is the broader aperture playing the today, field and But

and continuing hydrogen to carbon is at make same the the see particularly time, to Proxxima markets, continue about we're else And manipulating how use talk look developing. and molecules, reduce And so society emissions. with Carbon at technology and go products talk to applications forward, that capabilities as molecules, needs and the Ventures. we My and is, about our we'll we expectation those that that organization we we'll the can

So I lean into a think out that license, there and go organization has and out been more create given a and grow value earnings. can we find how license hunting

advantage also things a unlock else. expectation off of do them my it in work lower course, and Solutions the than then can to but our anybody and we beyond of frame, then cost technology organization. our is And bring at scale organization, organization forward through Product as Solutions build going well take we both XXXX as at Product of we're go we go and time these So opportunity our to the sets continue

combination powerful a really there's I So there. think

positioned XXXX to then that successful pipeline and Carbon the become energy our that today into add would I portfolio, are And horizon would but beyond we're and chemical Proxxima the and feedstocks future which of through expect like thinking go into just sure are that's well portfolio, the making the I And they ventures. -- extends our we for then specialty the be Solutions in the tghe what to more of quickly the well energy, that portfolio. terms future. And Product molecules for true Ventures got say specifically, has

of, On a the is through the we've this we depletion back growth this But of a -- lot that. recognize end potential Upstream we decade. business, got obviously, side,

understanding well it's pipeline And take have we sure the so a that making beyond continues keep horizon, of to organization that XXXX to look time got what going XXXX, good full. that to

about good that. really feel I So

businesses put serve organizations we've going payoffs think to huge in I the the space. way the here place those this we've have businesses central and in to organized that is

The next is Fargo. Roger Read with from question Wells

you shows probably a we have cracks I the geographically curious, this of recent most maybe cover, just news of operations diverse the few anyone Since morning, all in set was economy. most the

side demand kind kind you're the look see to you back China let's really of, the seeing could If an give where parts, what in you us as thinking around products say, the side, our that's idea of across the we of globe? chemical

supply the key the kind is to of the X I leave look when think there's pieces, side. X the you I would demand halves margins with Roger, pricing across at business side equation, message and Sure. you our there's there's is

we've frankly, we kind with that On to basically the to see the the demand seen side, of growth chemicals, start demand the returning prior pandemic. to

So X% at to basically GDP. X% growing above

track the a supply this from of lot a been, side frankly, yet challenge and margins capacity we're in growth come Certainly, of the that's the with queue business first a the seeing that to coming year. The on. And on standpoint. on so of in has half what got of capacity that's from back equation. We've

story story large challenge supply like margins times, and of of growth a chunks on coming that the less of supply in to get short and -- more that's of up So past, come capacity in the story in and chemical the of moral capacity to got discrete the demand the on you've lot your business, term. to back got your a chemicals, grow And given the a grow again. through that to in

cost our stay reasons that advantage importantly, of feed on the playing got we focused beyond with commodity business why you on earnings out chemical very performance we've products is supply, advantages that, we it's so and One the cycle. sure challenging the what and, environment. low make of to frankly, that that above very see be historically maybe at despite clip. is would healthy not at see but that market above are conditions growing growing rates, well we've some the rates the China the margin growing given still a seen expected of high And --

Europe, conditions the, for quite as in particularly well. most policy becoming globe. in my see in U.S. they're Europe put challenged given folks we around and growth I to unfortunate the unfortunately, the going putting is and economic with frankly of their that is expectation think, the U.S., the probably Europe is the the policies we're on the frankly, of reasonable living more challenging, place implementing, I area drag come economy. the And you to of And some seeing as kind think,

think U.S. India The I reasonable. looks very good looking is very, China growth. is with looking is healthy. and growing So reasonable it

then on is and typical brought we knew the -- ultimately the there, the And high the in very equation think the frankly, keeping but margins into It's levels getting to for And quarter from into year. Record come supply more the of good we've refining with energy petroleum elevated the into those that. anticipated be certainly our in back which difficult were into very normal all back we equation plans again, would it, call back seeing ranges. now of seen that business high. margins ranges. first I We're side last down timing that products,continues that around has world. very always of of demand levels Demand to coming the --

I robust and we've to My expectation in to built be see mix challenging. high-grade out levels if scale and would say standpoint. and is historical that less-advantaged producing see those. the lot taken now the again, And we'll and We'll going forward that the a focused But times high-value at when are are our to then margins advantaged refining is spike volatility see margins products we'll and We've continue what that. you have are refineries of from cost times the look refineries doing integrated the we're and portfolio. to work of a a low-margin, on that we've been size business

the to And a this at next will of then and oil year year equation, of Last will in be side record. continues gas the on record, the be demand anticipate was We the a oil a then year record. side be equation, record levels.

It's that a again, that's -- on. standpoint. capacity the to what's supply And of fairly in and led to So on. demand, gas, in coming Most another is an Americas. demand question the on happening through grow from just healthy continue continues coming of going oil the by that's be a it's working then of function to

So it's that is to foundation industry news we low together, the very curve. I be got be the strategy the we're the the you is consistent seeing good which supply cost very demand. of cost, frankly, of you with to think to put left-hand got side the be responsive on of And that

with The Silverstein UBS. Josh next question from is

kind It It progress you've turnaround million front. the in there was You looks looks a of make like like savings million $XXX products. called energy of sequentially. good out an uptick cost savings $XXX continue to about on

$XX.X improvement the take the billion Just wanted you you some to years. how ] next see [ kind driving billion and the what's few to the if can examples of of provide more $XX current over

much the very Thanks for Great. question.

a on you're pre look $X so, after-tax an about about right. million year-to-date, we If overall for $XXX our had cost where And basis, we savings structural basis on is billion. the

products and prepared energy million savings. in terms a just a number $XXX was we if to the you it in we And did of did we savings time of did And that cost. back turnaround slate. gave So turnaround is optimize big half, looked making Hence, we it driver quickly, the really noting slate that $XXX number good that heavy remarks. at last same progress. of particularly in We mentioned. more a at that, the lower Continuing we much maintenance had overall my it, million

the up efficient We're over responsible And also which centralized we've all for the there. supply in driving kind savings couple looking more get of savings of to terms stood chain into are last of years, driving our really obviously and business. of organizations,

see optimize activities, global or that chain, who or better simplifying global and whether standardizing maintenance operating on starting and benefit our our organization. data by So solutions things works sustainability the our to really to business whether organizations the things, we're supply uptick and group that's those can bring overall bringing that's from

that's to continue you're what go-forward going So see to on a basis.

do, as the we for will processes automated efficiencies more term. term, further that which we'll for apply then drive here which those the longer say, even say, start to I to technology in long be And things get, company, quite as would standardize organizations able today, I centralized to us would disparate more are we sit

buying, So standardizing that those things the to we're getting savings. getting efficient or on materials between more the whether standardizing more that efficient now we're continue logistics drive will ourselves things and because Pioneer, it's all are and

think the a that in hovering and the developed. program, record very proven plans on we industry by both have good I we about now And largest we initial track that quite the far, feel typically

billion progress and to So get between about $XX savings and to that making, we're feeling XXXX. good we're overall XXXX the target in

exist, of the experience collect the experience, it business our now irrespective guess are on every aspect set. -- of business time -- and in history at we've the is take and synergies for taking the ourselves expertise I areas the opportunity that to corporation, the it, the Josh, think corporation to I of to of what each first those where of focus about just focusing the way And would in on an organized look other and Yes. one is, delivering

here. advantage our of size us huge the business, a So gives it

and around organization of And the so by relevant. again. thinking best time basically in time and it's the that's had that things lot applying a these are the taking And -- then the time everywhere around happening uniformly that and accruing you're seeing world, occurred

capability side can't in respect unique into others the structural I capacity benefits sure. sell up ability very with think of so frankly, better cost on match. better that, showing value. the these Also, equation revenue and a the savings to for up And And are showing to marketing,

to the changes So there's, we've huge I benefit making. a think, been

We have time for one more question.

Our Brackett final Research. question from will be Bernstein Bob with

Darren that processing? complexity and is it by misunderstood a the I'd paraphrase around of marketing relative comment the and the made, Upstream a comment Downstream is the of industry. complexity like lithium that a And is to I'm intrigued, maybe comment side? Or use around the

businesses, more to comment those of you business broadly, low-carbon look of that I complexities. their solutions where, each meant unique got at for, Yes, as that, the set they've whole imply

complexities people I comprehend. and has you're kind lithium, above in And with some with say putting -- marrying just things say business people surface, established brand-new our make worked what those subsurface, a a so processing way there can't taking new that. been that who would I to some in that in have there refining. wouldn't particular, together a technologies product. consistent technologies of established technology, is haven't experiences for essentially very through For many

is brand building existing -- chains. today example, capture an that policy you're unique not pays really and some market, that the there's And supply, time, the carbon an infrastructure there's government same removal market a Where customer that's then base. time, as support for challenges to carbon just new build policy. trying to being develop the same the logistics, are value the at where the forming, market, incentivized is Government while with at

[indiscernible] the model one, with, moving see frankly, the to all sustainable that, parts those come two, that long in I that up has one And particularly the be so a are that all the term. piece because to the is portfolio. together complexity a challenging generates and work done to for of business to that's and business things the and that try competitive space, low-carbon in

to of do kind we're have I to geared But work. that say

lends frankly, team progress. the what and lot really and challenges of experience of itself core those organization, a and accomplishing, Our leaning to tackling on is the we're And Dan that. good making capabilities the

side a the or on the equation, strongly economic think I carbon-free there's hydrogen. a virtually hydrogen market market vibrant not real low, of for

to an our competing So forces But got in to that's reporting in that we've not a developed. we and market-driven the relying so market short being way government are government that the on term. are Obviously, open subsidies. work incentives

think, I that in of challenges one So that's, the space.

wind comment where very the solution But optimism more there's my has you to low of progress general. and the a think businesses generally carbon I think that if was But -- around about lot date, low-carbon EV of is made been in markets. playing those well well-established market And The power solar very most is of that's well in and into been generation all are established. industry established. The areas. automotive

in that challenges, the new building technologies of own brand-new and have their but Now our they're In case, unique some businesses, of building bringing markets. markets. they're not brand-new some we're

to to next week. for couple by joining this We're But everybody, a to your Investors your thanks, call And transcript before questions. of Bob. the topics. to section of early we you, post website want and of going wrap, the for the attention our I Thank draw call

planning. again, your supply latest calendars includes Investors our going XXXX, information for section of on month, second, our views see a And be more And the our to mark our issuing and Wednesday, a through on energy business Spotlight, XX. be for December this Plan which please basis Update and Upstream forms website. please and Later Outlook, reminder. for Corporate we Global First, is our that, will demand which Annual which the

So it conclude. to with that, a and I'll back operator the have to turn weekend, nice

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

at may this time. You disconnect