A N N U A L R E P O R T
S
N
2021S
O
O
U
T
L
I
2 0 2 1 H I G H L I G H T S
F I N A N C I A L A C C O M P L I S H M E N T S
Earnings
increased to
$23
billion
Cash flow
increased to
$48
billion3
Structural cost
savings of
Capex discipline
with investment of
Breakeven
lowered to
$2
billion1
Debt
reduced by
$20
billion4
$17
billion
$41
per barrel2
Dividend
annual growth for
Share repurchase
program announced
39
consecutive
years
$10
billion
S T R E N G T H E N I N G I N D U S T R Y L E A D E R S H I P
• Maintained best-ever safety and reliability performance
• Streamlined low-cost organizational structure
• 2025 greenhouse gas emission-reduction plans achieved four years ahead of schedule5
• Low Carbon Solutions business progressed multiple global initiatives
U P G R A D I N G O U R P O R T F O L I O
• Guyana recoverable resource increased to >10 Boeb with continued exploration success6
• Corpus Christi Chemical Complex started up ahead of schedule and under budget
• Permian production increased by almost 100 Koebd7
• High-value Chemical performance product sales rose by 7%
• More than $3 billion of non-core assets divested8
C O N T E N T S
L E T T E R T O S H A R E H O L D E R S
IFC LETTER TO SHAREHOLDERS
II STRENGTHENING INDUSTRY LEADERSHIP
III SHARING SUCCESS WITH SHAREHOLDERS
IV
SOLUTIONS FOR THE ENERGY TRANSITION
VIII
MEETING OUR CUSTOMERS’ NEEDS
X AFFORDABLE AND RELIABLE ENERGY
XII TRANSPORTATION EFFICIENCY PRODUCTS
XIV SUSTAINABLE CHEMICAL PRODUCTS
XVI GOVERNANCE – ENGAGED LEADERSHIP
1 FORM 10-K
At ExxonMobil, we are optimistic for
the future, confident that our focus on
developing and deploying high-value
solutions will lead to real progress in
meeting the world’s economic and
environmental challenges. Leveraging
our competitive advantages, we’re
well positioned to meet needs of
communities around the world,
advance lower-emission solutions, and
importantly, reward our shareholders.
126 STOCK PERFORMANCE GRAPHS
2 0 2 1 P E R S P E C T I V E S
127 FREQUENTLY USED TERMS
129 FOOTNOTES
130 BOARD OF DIRECTORS
131
INVESTOR INFORMATION
A B O U T T H E C O V E R
Guyana: Advancing production to responsibly
meet growing energy demand
See Cautionary Statement on page 131 for important
information regarding forward-looking statements and
terms used in this report.
In 2021, we strengthened our industry leadership position.
Our effective pandemic response, focused investments
during the down cycle, and structural cost savings
positioned us to realize the full benefits of the market
recovery. We delivered exceptional growth in earnings
and cash flow that enabled us to restore our balance
sheet and increase the dividend.
During the year, we structurally reduced costs by almost
$2 billion on top of $3 billion in savings the prior year,
distributed nearly $15 billion to our shareholders through
dividends, and reduced net debt to pre-pandemic
levels. We improved performance across our high-value
portfolio, including expanding the estimated recoverable
resource offshore Guyana, growing production and
driving efficiencies across our Permian operations,
achieving record earnings in our Chemical and Lubricants
businesses, and delivering the state-of-the-art Corpus
Christi Chemical Complex on schedule and under budget.
We achieved all of this while sustaining best-ever safety
and reliability performance.
We also made significant advances in our new Low
Carbon Solutions business to reduce emissions in our
operations and bring affordable solutions to the hard-to-
decarbonize sectors such as commercial transportation
and heavy industry. To support these efforts, we plan
to invest more than $15 billion on lower-emission initiatives over the next six years. We are advancing more than two dozen
projects focused on carbon capture and storage, hydrogen, and biofuels, which together are expected to develop into
multi-trillion-dollar markets in the decades ahead, creating exciting new opportunities for our company.9
N E T - Z E R O A M B I T I O N
Earlier this year, we announced our ambition to achieve net-zero Scope 1 and 2 greenhouse gas emissions from our
operations by 2050. This ambition is backed by a comprehensive roadmap approach that identifies emission-reduction
opportunities for each of our major operated assets. It is part of a continuum that includes specific near- and medium-term
emission-reduction goals, including our 2025 plans that we achieved in 2021 – four years ahead of schedule. It also includes
new 2030 plans that are expected to reduce emissions intensity across
a variety of metrics and corporate-wide absolute emissions by 20%.5
S T R A T E G Y T O G R O W S H A R E H O L D E R
V A L U E I N A L O W E R - E M I S S I O N F U T U R E
As we move forward, we are continuing to evolve and streamline our
business structure to fully leverage our competitive advantages – in
scale, integration, technology, functional excellence, and our highly
skilled people. Our new structure, announced
earlier this year, aligns our Upstream, Product
Solutions, and Low Carbon Solutions businesses
along market-focused value chains to improve
line of sight to customer needs and drive
accountability. This will position us to grow
earnings and cash flow faster than competition
and deliver greater shareholder returns across a
broad range of future energy-transition scenarios.
For nearly 140 years, ExxonMobil has been a
leader in innovation, supplying products that
people need to live healthy and prosperous lives
in an ever-changing world. We’re committed to
continuing to provide critical solutions that support
a lower-emission future and create sustainable
value for all stakeholders.
Thank you for investing in our company.
Darren Woods
Chairman and CEO
S T R E N G T H E N I N G I N D U S T R Y L E A D E R S H I P
ExxonMobil’s strategy focuses on maximizing our competitive advantages to grow
globally competitive businesses by leading in earnings and cash flow growth through
disciplined capital and cost management, strong operating performance, lower
emissions intensity, and continuous improvement of the best portfolio in the industry.
As part of our strategic planning processes over
than $15 billion of investments from 2022 through 2027,
the past several years, we took a hard look at our
directed at initiatives that will reduce emissions from our
performance and competitive position and took steps
operations and advance opportunities in our Low Carbon
to structurally reduce costs, enhance capital efficiency,
Solutions business.
and drive improvements across our businesses to
maximize shareholder returns.
T R A N S F O R M I N G T H E B U S I N E S S
In 2021, we significantly improved performance and
delivered earnings of $23 billion. Our cash flow from
operating activities totaled $48 billion, the highest
since 2012. We used the cash flow to restore our
balance sheet, essentially paying back what we
borrowed in 2020.
We’ve made significant progress in improving our
competitiveness. We structurally reduced costs by
almost $5 billion compared to 2019 and increased
our capital efficiency. At the same time, we sustained
best-ever performance for both safety and reliability
as we advanced major projects in Guyana, the Permian
Basin, Brazil, Corpus Christi, and other locations
around the world.
S T R E A M L I N E D
B U S I N E S S S T R U C T U R E
In a highly competitive industry, we must continue to
evolve, which is why we’ve further streamlined our business
structure. This new model will enable us to better serve the
needs of our customers while becoming more efficient by
capturing economies of scale and eliminating duplication.
In addition, by centralizing the skills and capabilities required
by all of our businesses, we can allocate critical resources
more effectively, driving higher value while providing
flexibility. This serves us well in a variety of potential future
scenarios, irrespective of the pace of the energy transition.
• UPSTREAM – includes our low cost-of-supply,
high-return oil and natural gas operations that are resilient
to future demand scenarios.
• PRODUCT SOLUTIONS – consolidates Downstream
Our environmental performance also continues to
and Chemical to form the world’s largest downstream and
improve. We achieved our 2025 emission-reduction
chemical company developing innovative products needed
goals ahead of schedule and announced plans to
by modern society.
achieve net-zero Scope 1 and 2 greenhouse gas
emissions from our operated assets in the Permian
Basin by 2030. Early in 2022, we announced our
ambition to achieve corporate-wide net-zero Scope 1
and 2 greenhouse gas emissions for operated assets
by 2050.5 These efforts are being supported by more
• LOW CARBON SOLUTIONS – supports reducing
emissions from our operations and products, and
provides solutions to help lower society’s emissions
through developing markets in carbon capture and
storage, hydrogen, and biofuels.
II | III
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
>10 billion
OIL-EQUIVALENT BARRELS OF
RECOVERABLE RESOURCE IN THE
6
STABROEK BLOCK OFFSHORE GUYANA
New discoveries increased the
recoverable resource in Guyana, where
more than 3,500 Guyanese and 800
local suppliers support our activities.
S H A R I N G S U C C E S S W I T H S H A R E H O L D E R S
For decades we’ve demonstrated our commitment to reliable and growing
shareholder distributions, including a stable and sustainable dividend.
39 years
of consecutive annual
dividend growth
$10 billion
share repurchase program
initiated in 2022
$20 billion
reduction in total debt4
Our corporate plan balances capital-allocation priorities by investing in
high-return projects while maintaining a strong dividend and balance sheet.
During the pandemic and unprecedented collapse in market demand, we
leaned on the strength of our balance sheet to maintain our strong dividend
at a time when many in our industry were forced to reduce distributions.
As the global economy rebounded, the low cost-of-supply opportunities
we invested in at the bottom of the cycle, alongside the structural cost
efficiencies we achieved, generated our highest cash flow from operating
activities since 2012. This enabled us to reduce our debt-to-capital
ratio to well within our target range of 20-25% and maintain a strong
investment-grade credit rating. With the balance sheet restored, we
increased the dividend, achieving 39 consecutive years of annual
dividend growth.
In 2021, we provided shareholder distributions totaling nearly $15 billion,10
divested more than $3 billion of non-core assets,8 and invested just
under $17 billion in our advantaged opportunities. Building on that
commitment to return cash to shareholders, we also initiated a $10 billion
share-repurchase program in January 2022 that we expect to complete
over the following 12 to 24 months.
S O L U T I O N S
F O R T H E E N E R G Y
T R A N S I T I O N
ExxonMobil is committed to help
achieve a net-zero future. We are
focused on leveraging our extensive
experience in meeting vast and
complex challenges to advance
solutions at scale in the highest-
emitting sectors of the economy.
Our investments will enable us to
achieve our emission-reduction goals
and grow shareholder value across
a broad range of future scenarios.
N E T - Z E R O A M B I T I O N
We’re aiming to achieve net-zero Scope 1 and 2
greenhouse gas emissions from our operated assets
by 20505 by taking a comprehensive approach centered
on developing detailed emission-reduction roadmaps
for each major operated asset. These roadmaps include
energy efficiency measures, methane mitigation,
equipment upgrades, and the elimination of venting
and routine flaring. Further opportunities include
power and steam co-generation and electrification of
operations, using renewable or lower-emission power.
This ambition builds on our 2030 emission-reduction
plans, which include reaching net-zero greenhouse gas
emissions in our Permian Basin operations by 2030,5
and ongoing investments in lower-emission solutions,
including carbon capture and storage, hydrogen,
$15 billion
OF LOWER-EMISSION INVESTMENTS
FROM 2022 THROUGH 2027
and biofuels, where we have distinct competitive
The same capabilities, technical strengths,
and market experience that support our
existing businesses will help drive
commercial growth opportunities for
carbon capture and storage,
hydrogen, and biofuels.
advantages and proven experience.
L E A R N M O R E A B O U T I T
Link to our complete ACS Report for
more information on this subject.
2 0 2 1 A N N U A L R E P O R T
E X X O N M O B I L
IV | V
Canola field: One of several potential feedstocks for renewable diesel.
A C C E L E R A T E D E M I S S I O N - R E D U C T I O N P L A N S
Our 2030 emission-reduction plans are consistent with Paris-aligned pathways, the U.S. and European Union’s Global
Methane Pledge, and the U.S. Methane Emissions Reduction Action Plan.
20-30%
40-50%
70-80%
REDUCTION IN CORPORATE-
REDUCTION IN UPSTREAM
REDUCTION IN
WIDE GREENHOUSE GAS
GREENHOUSE GAS
INTENSITY
INTENSITY
CORPORATE-WIDE
METHANE INTENSITY
60-70%
REDUCTION IN
CORPORATE-WIDE
FLARING INTENSITY
Absolute corporate-wide and Upstream greenhouse gas emissions are expected to decrease by 20% and 30%,
respectively. Similarly, absolute flaring and methane emissions are expected to decrease by 60% and 70%, respectively.
These plans are also expected to achieve World Bank Zero Routine Flaring by 2030. All reductions are compared to 2016
levels from the company’s operated assets.5
These plans build on our 2025 reduction plans that we achieved last year – four years ahead of schedule. These
reductions included a 15-20% reduction in greenhouse gas intensity of our Upstream operations, which was supported
by a 40-50% reduction in methane intensity and a 35-45% reduction in flaring intensity.5
L O W C A R B O N S O L U T I O N S
In early 2021, we established our Low Carbon Solutions business to help reduce emissions in our operations and advance key
emissions-reducing technical solutions such as carbon capture and storage, hydrogen, and biofuels. These technologies are
essential to reducing emissions in manufacturing, power generation, and transportation – the three most energy-intensive
and hard-to-decarbonize sectors of the economy. Using estimates and demand projections, including the IPCC’s Lower 2°C
scenarios, the total addressable markets for these technologies and products are expected to grow significantly to more than
$3 trillion by 2040.9
VI | VII
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
C A R B O N C A P T U R E A N D S T O R AG E
Carbon capture and storage is one of the few proven technologies that
can deliver deep emission reductions in industrial sectors. We have more
SOURCES: POWER GENERATION,
MANUFACTURING, REFINERIES,
AND CHEMICAL PLANTS
than 30 years of experience capturing and permanently storing CO2
and have cumulatively captured more anthropogenic CO2 than
any other company.5 Last year, we announced progress on
10 large carbon capture and storage opportunities, further
extending our leadership.
THE HOUSTON CARBON CAPTURE AND STORAGE HUB HAS
THE POTENTIAL TO CAPTURE AND PERMANENTLY STORE
ABOUT 100 MILLION METRIC TONS OF CO2 ANNUALLY BY 2040.
E X P E R I E N C E C C S F O R YO U R S E L F
Link to an augmented reality presentation
on our carbon capture technology.
SOURCES OF CO2
GULF OF MEXICO
CO2 TO
STORAGE
H Y D R O G E N
Hydrogen is a zero-carbon energy carrier that can serve as an
affordable and reliable source of energy for heavy-duty trucking and energy-intensive industrial processes in the
steel, refining, and chemical sectors. We produce about 1.3 million metric tons of hydrogen per year and are
evaluating additional strategic investments to bring this lower-emission energy technology to scale.
B I O F U E L S
Biofuels have the high energy density required to meet the needs of commercial transportation, while significantly
reducing CO2 emissions. We plan to provide more than 40,000 barrels per day of biofuels by 2025, with a further
goal of 200,000 barrels per day by 2030. This would reduce annual CO2 emissions from the transportation sector
by 25 million metric tons, equivalent to the emissions from 5 million cars.5, 11
A D V O C A T I N G F O R S U P P O R T I V E P O L I C Y
The enactment of sound government policies can accelerate the deployment of key technologies at the pace and scale
required to support a net-zero future. Supportive policies, such as an explicit price on carbon or well-designed, sector-
based policy options, can provide direct investment and incentives for a broad range of emission-reduction technologies
in the same way they have accelerated growth for wind, solar, and electric vehicles. Long term, we have the capital
flexibility and optionality necessary to pace our investments consistent with advancements in technology and supportive
policy that can accelerate the energy transition.
We continually innovate and use industry-leading technology to safely
produce lower-emission energy resources to affordably and reliably meet
the fundamental needs of people around the world.
Our upstream operations bring
Our refineries and logistics
As one of the world’s largest chemical
reliable and affordable energy
deliver high-quality fuels and
producers, we create sustainable
solutions to the world.
lubricants around the globe.
products for modern life.
VIII | IX
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
M E E T I N G O U R
C U S T O M E R S ’ N E E D S
A F F O R D A B L E A N D
R E L I A B L E E N E R G Y
ExxonMobil’s low cost-of-supply developments in unconventional Permian,
deepwater, and LNG are lower in greenhouse gas intensity and underpin the
growing value of our portfolio.
~4 million
oil-equivalent barrels of net oil
and gas production per day
39 countries
with Upstream activity
D E E P W A T E R
Guyana contains one of the largest oil plays discovered in the past decade.
Exploration success continued with additional discoveries increasing the estimated
recoverable resource in the Stabroek block. The Liza Phase 1 development
continued its strong performance in 2021, and Liza Phase 2 started up earlier
this year. The third major development, Payara, is on schedule for first oil in
2024, followed by Yellowtail in 2025, after issuance of the production license.
We envision six projects online by 2027, with the potential for up to 10 projects
to fully develop the discovered resource. In Brazil, the Bacalhau field development
is progressing in the prolific Santos Basin. Bacalhau Phase 1 is expected to
produce 220,000 barrels of oil per day and received final approvals in 2021
with first oil anticipated in 2024.
X | XI
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
P E R M I A N
favorable emissions profile of natural
gas versus coal for power generation,
In 2021, we continued to increase
combined with our operational
production in the Permian with a
performance and investments in
focus on responsibly maximizing the
world-class resources, makes our LNG
value of our competitive position.
portfolio competitive in a broad range
Our drilling efficiency has more than
doubled versus 2019 and we have
achieved significant reductions in
development and operating costs,
driving step-change improvements
in cash flow and profitability. We also
announced an industry-first path
to achieve net-zero Scope 1 and 2
greenhouse gas emissions in our
operated Permian assets by 2030.5
of business environments. Key projects
include the Coral South floating LNG
development in Mozambique, the
Golden Pass export facility on the U.S.
Gulf Coast, and future developments in
Papua New Guinea and Mozambique.
O T H E R U P S T R E A M
We conduct conventional oil and natural
gas operations in 17 countries. In these
Our plan includes eliminating routine
mature conventional operations, our
flaring, upgrading equipment, improving
focus is on maximizing cash flows by
monitoring, and electrifying operations
lowering costs and optimizing recovery
with lower-emission power.
efficiency.
L N G
We are an industry leader in liquefied
natural gas (LNG) and participate in
the production of 87 million metric
tons per year – accounting for more
than one-fifth of global demand. The
In Canada, through our majority-owned
affiliate Imperial Oil Limited, we have a
significant long-life heavy oil portfolio.
In 2021, Imperial Oil announced its
participation in the Oil Sands Pathway
to Net Zero initiative, which is working
to achieve net-zero emissions by 2050.
T E C H N O L O G Y : R E D U C I N G M E T H A N E E M I S S I O N S
Since initiating our program to reduce methane emissions across our U.S. unconventional
operations, we have conducted more than 23,000 leak surveys on more than 5.2 million
components at more than 9,500 production sites. We are leading collaborations with
stakeholders to develop breakthrough detection technologies while also upgrading facility
designs and phasing out gas-driven pneumatic equipment. As a result of these actions,
we reduced U.S. unconventional methane emissions by approximately 40% as of year-end
2020 compared to 2016.
T R A N S P O R TAT I O N
E F F I C I E N C Y P R O D U C T S
ExxonMobil produces high-performance fuels and lubricant products that
power global transportation, improve efficiency, and reduce our customers’
overall life-cycle emissions.
F U E L S
We supply nearly 5 million barrels per day of transportation fuels.
Our refineries lead industry with lower Carbon Emissions Intensity, performing
15% better than the global industry average.12 As the need for conventional
fuel peaks, we are investing to shift the yield from our 19 global refineries
toward additional high-performance chemicals, lubricants, and biofuels.
XII | XIII
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
70%
fewer carbon
emissions from
biofuels compared to
conventional fuels13
B I O F U E L S
L U B R I C A N T S
We’re growing our portfolio of biofuels
High-quality lubricants, basestocks,
to meet the needs of our customers
and waxes help customers improve
and help society decarbonize the
efficiency in the transportation and
transportation sector. Our majority-
industrial sectors. With leading positions
owned affiliate, Imperial Oil Limited, is
in basestocks and synthetic lubricants,
progressing plans to produce renewable
we are helping customers achieve
diesel at its Strathcona refinery. It is
their efficiency goals by extending
expected to produce approximately
maintenance intervals and engine
20,000 barrels per day, which could
and equipment life. We are focused
reduce emissions in the Canadian
on increasing our position in rapidly
transportation sector by about
3 million metric tons per year.5
growing Asian markets to build on
our strong presence in North America
The facility will utilize locally grown
and Europe.
plant-based feedstock and hydrogen
with carbon capture and storage as
part of the manufacturing processes.
T E C H N O L O G Y : E L E C T R I C V E H I C L E P R O D U C T S
We are unlocking new possibilities for automotive manufacturers and customers by expanding the boundaries of
product innovation. The Mobil EV product line consists of high-performance fluids for gears, bearings, and thermal
management in electric vehicles. Our technical experience and relationships with vehicle manufacturers position us
for lubricant sales growth in this rapidly evolving and growing automotive segment.
S U S TA I N A B L E
C H E M I C A L P R O D U C T S
Worldwide demand for chemicals is expected to grow faster than the economy as a
whole, driven by global population growth and improving living standards.
Chemicals demand and GDP 14
These factors, together with lower life-cycle greenhouse gas emissions versus
(percent growth versus 2010)
Chemicals
demand
150
120
90
60
30
0
alternatives, make plastics a material of choice and drive demand for sustainable
solutions. To meet this demand, we are investing in new capacity, such as the
Corpus Christi Chemical Complex, which started up below budget and ahead of
schedule in 2021, as well as new technologies that include advanced recycling.
Our sustainable product solutions improve modern life across a wide range of
applications. Plastic smartphones, computers, electronic devices, appliances,
packaging, medical equipment, building materials, and countless other
World GDP
applications provide many benefits. Our advanced product solutions are the
result of close customer collaboration and enable tougher and lighter products
that use less material, save energy, reduce cost and waste, and lower life-cycle
2010
2020
2030
greenhouse gas emissions.5
XIV | XV
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
H E A L T H A N D
W E L L N E S S
A G R I C U L T U R A L A N D
F O O D P A C K A G I N G
Performance polymers support
Our performance polymers enable
improved health and wellness. Our
customers to advance innovations in
polymers are found in key products
agricultural films and food packaging
such as surgical and medical gowns,
that improve crop yields and reduce
face masks, and other disposable
food waste, which also has a net
healthcare products that help prevent
positive effect on greenhouse gas
the spread of disease. These products
emissions. Longer-lasting agricultural
continue to be essential in supporting
films protect and preserve crops even
the pandemic response.
in harsh environments. Performance
polyethylene for packaging uses less
material without compromising integrity
as food moves from farm to table.
T R A N S P O R T A T I O N
ExxonMobil’s plastics and butyl
rubber products are used in many
vehicle applications. They improve
transportation efficiency and associated
emissions by reducing vehicle weight
and improving tire performance and
battery range.
26 million
metric tons of annual sales places ExxonMobil among the
largest chemical producers in the world
T E C H N O L O G Y : A D V A N C E D R E C Y C L I N G
Leveraging our integration and pioneering technology, we are accelerating large-scale advanced recycling projects
to transform plastic waste into the raw materials used to make virgin-quality plastic and other everyday products.
There are no evident technical limitations to how many times a plastic product can be put through this process. In 2021,
we began building one of North America’s largest advanced recycling units with initial planned recycling capacity of
30,000 metric tons per year. We are progressing plans to grow our worldwide capacity to 500,000 metric tons per year
by year-end 2026.
G O V E R N A N C E – E N G A G E D L E A D E R S H I P
ExxonMobil’s diverse, engaged, and experienced board governs the Corporation with
a unified focus to grow long-term shareholder value in the evolving energy landscape.
Five new independent directors joined the board in 2021, bringing
additional perspectives and experience in energy, capital allocation,
and business transition.
As a collective, the board oversees and provides guidance on the
Corporation’s strategy and planning. Directors leverage experiences
and perspectives gained through prominent leadership roles in their
fields, supplemented with input from experts inside and outside of
ExxonMobil, to oversee the Corporation’s capital-allocation priorities
with a focus on growing shareholder value and playing a leading role
in the energy transition.
Ongoing engagement with our shareholders is vitally important,
and the board and management team play an active role in
keeping shareholders informed about the business, understanding
shareholders’ perspectives, and addressing areas of interest. In 2021,
the board and management engaged with shareholders representing
more than 40% of total shares outstanding and are continuing an
active program in 2022.
“The board is highly engaged in
future business planning and focused
on ensuring the company tests its
assumptions, consistently
challenges conventional thinking,
and pursues high-value solutions.”
– Ken Frazier, Lead Director
100%
ALL
of directors have held
prominent leadership roles
in their fields
directors have relevant
financial and/or risk
management experience
See page 130 for Board of Directors information.
XVI
E X X O N M O B I L
2 0 2 1 A N N U A L R E P O R T
2021
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-K
☑ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the fiscal year ended December 31, 2021
or
☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from to
Commission File Number 1-2256
Exxon Mobil Corporation
(Exact name of registrant as specified in its charter)
New Jersey
(State or other jurisdiction of
incorporation or organization)
13-5409005
(I.R.S. Employer
Identification Number)
5959 Las Colinas Boulevard, Irving, Texas 75039-2298
(Address of principal executive offices) (Zip Code)
(972) 940-6000
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of Each Class
Common Stock, without par value
0.142% Notes due 2024
0.524% Notes due 2028
0.835% Notes due 2032
1.408% Notes due 2039
Trading Symbol
XOM
XOM24B
XOM28
XOM32
XOM39A
Name of Each Exchange on Which Registered
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
New York Stock Exchange
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes ☑ No ☐
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Act. Yes ☐ No ☑
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the
preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90
days. Yes ☑ No ☐
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted and posted pursuant to Rule 405 of
Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).
Yes R No ☐
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth
company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the
Exchange Act.
Large accelerated filer
Non-accelerated filer
☑
☐
Accelerated filer
Smaller reporting company
Emerging growth company
☐
☐
☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised
financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Indicate by check mark whether the registrant has filed a report on and attestation to its management's assessment of the effectiveness of its internal control over financial
reporting under Section 404(b) of the Sarbanes-Oxley Act (15 U.S.C. 7262(b)) by the registered public accounting firm that prepared or issued its audit report. ☑
Indicate by check mark whether the registrant is a shell company (as defined by Rule 12b-2 of the Act). Yes ☐ No ☑
The aggregate market value of the voting stock held by non-affiliates of the registrant on June 30, 2021, the last business day of the registrant’s most recently completed
second fiscal quarter, based on the closing price on that date of $63.08 on the New York Stock Exchange composite tape, was in excess of $267 billion.
Class
Common stock, without par value
Outstanding as of January 31, 2022
4,233,592,429
Documents Incorporated by Reference: Proxy Statement for the 2022 Annual Meeting of Shareholders (Part III)
EXXON MOBIL CORPORATION
FORM 10-K
FOR THE FISCAL YEAR ENDED DECEMBER 31, 2021
TABLE OF CONTENTS
PART I
Item 1.
Business
Item 1A.
Risk Factors
Item 1B.
Unresolved Staff Comments
Item 2.
Item 3.
Item 4.
Properties
Legal Proceedings
Mine Safety Disclosures
Information about our Executive Officers
PART II
Item 5.
Item 7.
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Item 7A.
Quantitative and Qualitative Disclosures About Market Risk
Item 8.
Item 9.
Financial Statements and Supplementary Data
Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
Item 9A.
Controls and Procedures
Item 9B.
Other Information
Item 9C.
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
PART III
Item 10.
Item 11.
Item 12.
Item 13.
Item 14.
Directors, Executive Officers and Corporate Governance
Executive Compensation
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Certain Relationships and Related Transactions, and Director Independence
Principal Accounting Fees and Services
PART IV
Exhibits, Financial Statement Schedules
Form 10-K Summary
Item 15.
Item 16.
Financial Section
Index to Exhibits*
Signatures*
Exhibits 31 and 32 — Certifications*
* Not included with the 2021 Annual Report to Shareholders but available on the Investor section of our website at www.exxonmobil.com
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6
7
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29
31
31
31
32
32
32
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PART I
ITEM 1. BUSINESS
Exxon Mobil Corporation was incorporated in the State of New Jersey in 1882. Divisions and affiliated companies of ExxonMobil
operate or market products in the United States and most other countries of the world. Our principal business involves exploration for,
and production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products,
petrochemicals and a wide variety of specialty products; and pursuit of lower-emission business opportunities including carbon
capture and storage, hydrogen and biofuels. Affiliates of ExxonMobil conduct extensive research programs in support of these
businesses.
Exxon Mobil Corporation has several divisions and hundreds of affiliates, many with names that include ExxonMobil, Exxon, Esso,
Mobil or XTO. For convenience and simplicity, in this report the terms ExxonMobil, Exxon, Esso, Mobil and XTO, as well as terms
like Corporation, Company, our, we, and its, are sometimes used as abbreviated references to specific affiliates or groups of affiliates.
The precise meaning depends on the context in question.
The energy and petrochemical industries are highly competitive, both within the industries and also with other industries in supplying
the energy, fuel, and chemical needs of industrial and individual consumers. Certain industry participants, including ExxonMobil, are
expanding investments in lower-emission energy and emission-reduction services and technologies. The Corporation competes with
other firms in the sale or purchase of needed goods and services in many national and international markets and employs all methods
of competition which are lawful and appropriate for such purposes.
Operating data and industry segment information for the Corporation are contained in the Financial Section of this report under the
following: “Management's Discussion and Analysis of Financial Condition and Results of Operations: Business Results” and “Note
18: Disclosures about Segments and Related Information”. Information on oil and gas reserves is contained in the “Oil and Gas
Reserves” part of the “Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial
Section of this report.
ExxonMobil has a long-standing commitment to the development of proprietary technology. We have a wide array of research
programs designed to meet the needs identified in each of our business segments. ExxonMobil held over 8 thousand active patents
worldwide at the end of 2021. For technology licensed to third parties, revenues totaled approximately $66 million in 2021. Although
technology is an important contributor to the overall operations and results of our Company, the profitability of each business segment
is not dependent on any individual patent, trade secret, trademark, license, franchise, or concession.
ExxonMobil operates in a highly complex, competitive, and changing global energy business environment where decisions and risks
play out over time horizons that are often decades in length. This long-term orientation underpins the Corporation's philosophy on
talent development.
Talent development begins with recruiting exceptional candidates and continues with individually planned experiences and training
designed to facilitate broad development and a deep understanding of our business across the business cycle. Our career-oriented
approach to talent development results in strong retention and an average length of service of 30 years for our career employees.
Compensation, benefits, and workplace programs support the Corporation's talent management approach, and are designed to attract
and retain employees for a career through compensation that is market competitive, long-term oriented, and highly differentiated by
individual performance.
Over 60 percent of our global employee workforce is from outside the U.S., and over the past decade 39 percent of our global hires for
management, professional and technical positions were female and 35 percent of our U.S. hires for management, professional and
technical positions were minorities. With over 160 nationalities represented in the company, we encourage and respect diversity of
thought, ideas, and perspective from our workforce. We consider and monitor diversity through all stages of employment, including
recruitment, training, and development of our employees. We also work closely with the communities where we operate to identify
and invest in initiatives that help support local needs, including local talent and skill development.
The number of regular employees was 63 thousand, 72 thousand, and 75 thousand at years ended 2021, 2020, and 2019, respectively.
Regular employees are defined as active executive, management, professional, technical, and wage employees who work full time or
part time for the Corporation and are covered by the Corporation’s benefit plans and programs.
1
As discussed in item 1A. Risk Factors in this report, compliance with existing and potential future government regulations, including
taxes, environmental regulations, and other government regulations and policies that directly or indirectly affect the production and
sale of our products, may have material effects on the capital expenditures, earnings, and competitive position of ExxonMobil. With
respect to the environment, throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the
impact of our operations on air, water, and ground, including, but not limited to, compliance with environmental regulations. These
include a significant investment in refining infrastructure and technology to manufacture clean fuels, as well as projects to monitor and
reduce nitrogen oxide, sulfur oxide and greenhouse gas emissions, and expenditures for asset retirement obligations. Using definitions
and guidelines established by the American Petroleum Institute, ExxonMobil’s 2021 worldwide environmental expenditures for all
such preventative and remediation steps, including ExxonMobil’s share of equity company expenditures, were $4.6 billion, of which
$3.4 billion were included in expenses with the remainder in capital expenditures. The total cost for such activities is expected to
increase to approximately $5.3 billion in 2022, with capital expenditures expected to account for approximately 30 percent of the total.
Costs for 2023 are anticipated to be higher as the Low Carbon Solutions business matures and the Corporation progresses its emission-
reduction plans.
Information concerning the source and availability of raw materials used in the Corporation’s business, the extent of seasonality in the
business, the possibility of renegotiation of profits or termination of contracts at the election of governments, and risks attendant to
foreign operations may be found in “Item 1A. Risk Factors” and “Item 2. Properties” in this report.
ExxonMobil maintains a website at exxonmobil.com. Our annual report on Form 10-K, quarterly reports on Form 10-Q, current
reports on Form 8-K and any amendments to those reports filed or furnished pursuant to Section 13(a) of the Securities Exchange Act
of 1934 are made available through our website as soon as reasonably practical after we electronically file or furnish the reports to the
Securities and Exchange Commission (SEC). Also available on the Corporation’s website are the company’s Corporate Governance
Guidelines, Code of Ethics and Business Conduct, and additional policies as well as the charters of the audit, compensation, and other
committees of the Board of Directors. Information on our website is not incorporated into this report.
The SEC maintains an internet site (http://www.sec.gov) that contains reports, proxy and information statements, and other
information regarding issuers that file electronically with the SEC.
ITEM 1A. RISK FACTORS
ExxonMobil’s financial and operating results are subject to a variety of risks inherent in the global oil, gas, and petrochemical
businesses, and the pursuit of lower-emission business opportunities. Many of these risk factors are not within the company’s control
and could adversely affect our business, our financial and operating results, or our financial condition. These risk factors include:
Supply and Demand
The oil, gas, and petrochemical businesses are fundamentally commodity businesses. This means ExxonMobil’s operations and
earnings may be significantly affected by changes in oil, gas, and petrochemical prices and by changes in margins on refined products.
Oil, gas, petrochemical, and product prices and margins in turn depend on local, regional, and global events or conditions that affect
supply and demand for the relevant commodity or product. Any material decline in oil or natural gas prices could have a material
adverse effect on certain of the company’s operations, especially in the Upstream segment, financial condition, and proved reserves.
On the other hand, a material increase in oil or natural gas prices could have a material adverse effect on certain of the company’s
operations, especially in the Downstream and Chemical segments.
Economic conditions. The demand for energy and petrochemicals is generally linked closely with broad-based economic activities
and levels of prosperity. The occurrence of recessions or other periods of low or negative economic growth will typically have a direct
adverse impact on our results. Other factors that affect general economic conditions in the world or in a major region, such as changes
in population growth rates, periods of civil unrest, government regulation or austerity programs, trade tariffs or broader breakdowns in
global trade, security or public health issues and responses, or currency exchange rate fluctuations, can also impact the demand for
energy and petrochemicals. Sovereign debt downgrades, defaults, inability to access debt markets due to credit or legal constraints,
liquidity crises, the breakup or restructuring of fiscal, monetary, or political systems such as the European Union, and other events or
conditions that impair the functioning of financial markets and institutions also pose risks to ExxonMobil, including risks to the safety
of our financial assets and to the ability of our partners and customers to fulfill their commitments to ExxonMobil.
COVID-19. The initial phase of the COVID-19 pandemic caused conditions of demand reduction and oversupply to develop rapidly
and resulted in significant decreases in commodity prices and margins. ExxonMobil’s future business results, including cash flows and
financing needs, will be affected by the scope and severity of current and future COVID outbreaks; actions taken by governments and
others to address the pandemic and the effects of those actions on national and global economies and markets; changes in consumer
behavior that affect demand for our products; and the effectiveness of the Corporation’s own responsive actions to protect the safety
and well-being of our people.
2
Other demand-related factors. Other factors that may affect the demand for oil, gas, and petrochemicals, and therefore impact our
results, include technological improvements in energy efficiency; seasonal weather patterns; increased competitiveness of, or
government policy support for, alternative energy sources; changes in technology that alter fuel choices, such as technological
advances in energy storage that make wind and solar more competitive for power generation; changes in consumer preferences for our
products, including consumer demand for alternative fueled or electric transportation or alternatives to plastic products; and broad-
based changes in personal income levels. See also “Climate Change and the Energy Transition” below.
Other supply-related factors. Commodity prices and margins also vary depending on a number of factors affecting supply. For
example, increased supply from the development of new oil and gas supply sources and technologies to enhance recovery from
existing sources tends to reduce commodity prices to the extent such supply increases are not offset by commensurate growth in
demand. Similarly, increases in industry refining or petrochemical manufacturing capacity relative to demand tend to reduce margins
on the affected products. World oil, gas, and petrochemical supply levels can also be affected by factors that reduce available supplies,
such as the level of and adherence by participating countries to production quotas established by OPEC or "OPEC+" and other
agreements among sovereigns, government policies, including actions intended to reduce greenhouse gas emissions, that restrict oil
and gas production or increase associated costs, and the occurrence of wars, hostile actions, natural disasters, disruptions in
competitors’ operations, logistics constraints or unexpected unavailability of distribution channels that may disrupt supplies.
Technological change can also alter the relative costs for competitors to find, produce, and refine oil and gas and to manufacture
petrochemicals.
Other market factors. ExxonMobil’s business results are also exposed to potential negative impacts due to changes in interest rates,
inflation, currency exchange rates, and other local or regional market conditions. Market factors may also result in losses from
commodity derivatives and other instruments we use to hedge price exposures or for trading purposes.
Government and Political Factors
ExxonMobil’s results can be adversely affected by political or regulatory developments affecting our operations.
Access limitations. A number of countries limit access to their oil and gas resources, including by restricting leasing or permitting
activities, or may place resources off-limits from development altogether. Restrictions on production of oil and gas could increase to
the extent governments view such measures as a viable approach for pursuing national and global energy and climate policies.
Restrictions on foreign investment in the oil and gas sector tend to increase in times of high commodity prices, when national
governments may have less need of outside sources of private capital. Many countries also restrict the import or export of certain
products based on point of origin.
Restrictions on doing business. ExxonMobil is subject to laws and sanctions imposed by the United States or by other jurisdictions
where we do business that may prohibit ExxonMobil or certain of its affiliates from doing business in certain countries, or restricting
the kind of business that may be conducted. Such restrictions may provide a competitive advantage to competitors who may not be
subject to comparable restrictions.
Lack of legal certainty. Some countries in which we do business lack well-developed legal systems, or have not yet adopted, or may
be unable to maintain, clear regulatory frameworks for oil and gas development. Lack of legal certainty exposes our operations to
increased risk of adverse or unpredictable actions by government officials, and also makes it more difficult for us to enforce our
contracts. In some cases these risks can be partially offset by agreements to arbitrate disputes in an international forum, but the
adequacy of this remedy may still depend on the local legal system to enforce an award.
Regulatory and litigation risks. Even in countries with well-developed legal systems where ExxonMobil does business, we remain
exposed to changes in law or interpretation of settled law (including changes that result from international treaties and accords) and
changes in policy that could adversely affect our results, such as:
•
•
•
•
•
•
•
increases in taxes, duties, or government royalty rates (including retroactive claims);
price controls;
changes in environmental regulations or other laws that increase our cost of compliance or reduce or delay available business
opportunities (including changes in laws affecting offshore drilling operations, water use, methane emissions, hydraulic
fracturing, or use of new or recycled plastics);
actions by policy-makers, regulators, or other actors to delay or deny necessary licenses and permits, restrict the availability
of oil and gas leases or the transportation of our products, or otherwise require changes in the company's business or strategy
that could result in reduced returns;
adoption of regulations mandating efficiency standards, the use of alternative fuels or uncompetitive fuel components;
adoption of government payment transparency regulations that could require us to disclose competitively sensitive
commercial information, or that could cause us to violate the non-disclosure laws of other countries; and
government actions to cancel contracts, re-denominate the official currency, renounce or default on obligations, renegotiate
terms unilaterally, or expropriate assets.
Legal remedies available to compensate us for expropriation or other takings may be inadequate.
3
We also may be adversely affected by the outcome of litigation, especially in countries such as the United States in which very large
and unpredictable punitive damage awards may occur; by government enforcement proceedings alleging non-compliance with
applicable laws or regulations; or by state and local government actors as well as private plaintiffs acting in parallel that attempt to use
the legal system to promote public policy agendas (including seeking to reduce the production and sale of hydrocarbon products
though litigation targeting the company or other industry participants), gain political notoriety, or obtain monetary awards from the
company.
Security concerns. Successful operation of particular facilities or projects may be disrupted by civil unrest, acts of sabotage or
terrorism, cybersecurity attacks, the application of national security laws or policies that result in restricting our ability to do business
in a particular jurisdiction, and other local security concerns. Such concerns may require us to incur greater costs for security or to shut
down operations for a period of time.
Climate Change and the Energy Transition
Net-zero scenarios. Driven by concern over the risks of climate change, a number of countries have adopted, or are considering the
adoption of, regulatory frameworks to reduce greenhouse gas emissions including emissions from the production and use of oil and
gas and their products. These actions are being taken both independently by national and regional governments and within the
framework of United Nations Conference of the Parties summits under which many countries of the world have endorsed objectives to
reduce the atmospheric concentration of CO2 over the coming decades, with an ambition ultimately to achieve “net-zero.” Net-zero
means that emissions of greenhouse gases from human activities would be balanced by actions that remove such gases from the
atmosphere. Expectations for transition of the world’s energy system to lower emission sources and ultimately net-zero derive from
hypothetical scenarios that reflect many assumptions about the future and reflect substantial uncertainties. The company’s objective to
lead in the energy transition, including the company’s announced ambition ultimately to achieve net-zero with respect to emissions
from operations where ExxonMobil is the operator, carries risks that the transition, including underlying technologies, policies, and
markets as discussed in more detail below, will not develop at the pace or in the manner expected by current net-zero scenarios. The
success of our strategy for the energy transition will also depend on our ability to recognize key signposts of change in the global
energy system on a timely basis, and our corresponding ability to direct investment to the technologies and businesses, at the
appropriate stage of development, to best capitalize on our competitive strengths.
Greenhouse gas restrictions. Government actions intended to reduce greenhouse gas emissions include adoption of cap and trade
regimes, carbon taxes, trade tariffs, minimum renewable usage requirements, restrictive permitting, increased mileage and other
efficiency standards, mandates for sales of electric vehicles, mandates for use of specific fuels or technologies, and other incentives or
mandates designed to support transitioning to lower-emission energy sources. Political and other actors and their agents also
increasingly seek to advance climate change objectives indirectly, such as by seeking to reduce the availability or increase the cost of
financing and investment in the oil and gas sector and taking actions intended to promote changes in business strategy for oil and gas
companies. Depending on how policies are formulated and applied, such policies could negatively affect our investment returns, make
our hydrocarbon-based products more expensive or less competitive, lengthen project implementation times, and reduce demand for
hydrocarbons, as well as shift hydrocarbon demand toward relatively lower-carbon alternatives. Current and pending greenhouse gas
regulations or policies may also increase our compliance costs, such as for monitoring or sequestering emissions.
Technology and low carbon solutions. Achieving societal ambitions to reduce greenhouse gas emissions and ultimately achieve net-
zero will require new technologies to reduce the cost and increase the scalability of alternative energy sources, as well as technologies
such as carbon capture and storage (CCS). CCS technologies, focused initially on capturing and sequestering CO2 emissions from
high-intensity industrial activities, can assist in meeting society’s objective to mitigate atmospheric greenhouse gas levels while also
helping ensure the availability of the reliable and affordable energy the world requires. ExxonMobil has established a Low Carbon
Solutions (LCS) business unit to advance the development and deployment of these technologies and projects, including CCS,
hydrogen and advanced biofuels, breakthrough energy efficiency processes, advanced energy-saving materials, and other technologies.
The company’s efforts include both in-house research and development and collaborative efforts with leading universities as well as
commercial partners involved in advanced lower-emission energy technologies. Our future results and ability to grow our LCS
business and succeed through the energy transition will depend in part on the success of these research and collaboration efforts and
on our ability to adapt and apply the strengths of our current business model to providing the energy products of the future in a cost-
competitive manner.
Policy and market development. The scale of the world’s energy system means that, in addition to developments in technology as
discussed above, a successful energy transition will require appropriate support from governments and private participants throughout
the global economy. Our ability to develop and deploy CCS and other lower emission energy technologies at commercial scale, and
the growth and future returns of LCS and other emerging businesses in which we invest, will depend in part on the continued
development of supportive government policies and markets. Failure or delay of these policies or markets to materialize or be
maintained could adversely impact these investments. Policy and other actions that result in restricting the availability of hydrocarbon
products without commensurate reduction in demand may have unpredictable adverse effects, including increased commodity price
volatility; periods of significantly higher commodity prices and resulting inflationary pressures; and local or regional energy shortages.
Such effects in turn may depress economic growth or lead to rapid or conflicting shifts in policy by different actors, with resulting
adverse effects on our businesses.
4
See also the discussion of “Supply and Demand,” “Government and Political Factors,” and “Operational and Other Factors” in this
Item 1A.
Operational and Other Factors
In addition to external economic and political factors, our future business results also depend on our ability to manage successfully
those factors that are at least in part within our control. The extent to which we manage these factors will impact our performance
relative to competition. For projects in which we are not the operator, we depend on the management effectiveness of one or more co-
venturers whom we do not control.
Exploration and development program. Our ability to maintain and grow our oil and gas production depends on the success of our
exploration and development efforts. Among other factors, we must continuously improve our ability to identify the most promising
resource prospects and apply our project management expertise to bring discovered resources on line as scheduled and within budget.
Project and portfolio management. The long-term success of ExxonMobil’s Upstream, Downstream, and Chemical businesses, as
well as the future success of LCS and other emerging lower-emission investments, depends on complex, long-term, capital intensive
projects. These projects in turn require a high degree of project management expertise to maximize efficiency. Specific factors that can
affect the performance of major projects include our ability to: negotiate successfully with joint venturers, partners, governments,
suppliers, customers, or others; model and optimize reservoir performance; develop markets for project outputs, whether through long-
term contracts or the development of effective spot markets; manage changes in operating conditions and costs, including costs of
third party equipment or services such as drilling rigs and shipping; prevent, to the extent possible, and respond effectively to
unforeseen technical difficulties that could delay project start-up or cause unscheduled project downtime; and influence the
performance of project operators where ExxonMobil does not perform that role. In addition to the effective management of individual
projects, ExxonMobil’s success, including our ability to mitigate risk and provide attractive returns to shareholders, depends on our
ability to successfully manage our overall portfolio, including diversification among types and locations of our projects, products
produced, and strategies to divest assets. We may not be able to divest assets at a price or on the timeline we contemplate in our
strategies. Additionally, we may retain certain liabilities following a divestment and could be held liable for past use or for different
liabilities than anticipated.
The term “project” as used in this report can refer to a variety of different activities and does not necessarily have the same meaning as
in any government payment transparency reports.
Operational efficiency. An important component of ExxonMobil’s competitive performance, especially given the commodity-based
nature of many of our businesses, is our ability to operate efficiently, including our ability to manage expenses and improve
production yields on an ongoing basis. This requires continuous management focus, including technology improvements, cost control,
productivity enhancements, regular reappraisal of our asset portfolio, and the recruitment, development, and retention of high caliber
employees.
Research and development and technological change. To maintain our competitive position, especially in light of the technological
nature of our businesses and the need for continuous efficiency improvement, ExxonMobil’s technology, research, and development
organizations must be successful and able to adapt to a changing market and policy environment, including developing technologies to
help reduce greenhouse gas emissions. To remain competitive we must also continuously adapt and capture the benefits of new and
emerging technologies, including successfully applying advances in the ability to process very large amounts of data to our businesses.
Safety, business controls, and environmental risk management. Our results depend on management’s ability to minimize the
inherent risks of oil, gas, and petrochemical operations, to control effectively our business activities, and to minimize the potential for
human error. We apply rigorous management systems and continuous focus on workplace safety and avoiding spills or other adverse
environmental events. For example, we work to minimize spills through a combined program of effective operations integrity
management, ongoing upgrades, key equipment replacements, and comprehensive inspection and surveillance. Similarly, we are
implementing cost-effective new technologies and adopting new operating practices to reduce air emissions, not only in response to
government requirements but also to address community priorities. We employ a comprehensive enterprise risk management system
to identify and manage risk across our businesses. We also maintain a disciplined framework of internal controls and apply a controls
management system for monitoring compliance with this framework. Substantial liabilities and other adverse impacts could result if
we do not timely identify and mitigate applicable risks, or if our management systems and controls do not function as intended.
5
Cybersecurity. ExxonMobil is regularly subject to attempted cybersecurity disruptions from a variety of sources including state-
sponsored actors. ExxonMobil’s defensive preparedness includes multi-layered technological capabilities for prevention and detection
of cybersecurity disruptions; non-technological measures such as threat information sharing with governmental and industry groups;
internal training and awareness campaigns including routine testing of employee awareness and an emphasis on resiliency including
business response and recovery. If the measures we are taking to protect against cybersecurity disruptions prove to be insufficient or if
our proprietary data is otherwise not protected, ExxonMobil as well as our customers, employees, or third parties could be adversely
affected. We are also exposed to potential harm from cybersecurity events that may affect the operations of third-parties, including our
partners, suppliers, service providers (including providers of cloud-hosting services for our data or applications), and customers.
Cybersecurity disruptions could cause physical harm to people or the environment; damage or destroy assets; compromise business
systems; result in proprietary information being altered, lost, or stolen; result in employee, customer, or third-party information being
compromised; or otherwise disrupt our business operations. We could incur significant costs to remedy the effects of a major
cybersecurity disruption in addition to costs in connection with resulting regulatory actions, litigation, or reputational harm.
Preparedness. Our operations may be disrupted by severe weather events, natural disasters, human error, and similar events. For
example, hurricanes may damage our offshore production facilities or coastal refining and petrochemical plants in vulnerable areas.
Our facilities are designed, constructed, and operated to withstand a variety of extreme climatic and other conditions, with safety
factors built in to cover a number of engineering uncertainties, including those associated with wave, wind, and current intensity,
marine ice flow patterns, permafrost stability, storm surge magnitude, temperature extremes, extreme rainfall events, and earthquakes.
Our consideration of changing weather conditions and inclusion of safety factors in design covers the engineering uncertainties that
climate change and other events may potentially introduce. Our ability to mitigate the adverse impacts of these events depends in part
upon the effectiveness of our robust facility engineering as well as our rigorous disaster preparedness and response, and business
continuity planning.
Insurance limitations. The ability of the Corporation to insure against many of the risks it faces as described in this Item 1A is
limited by the availability and cost of coverage, which may not be economic, as well as the capacity of the applicable insurance
markets, which may not be sufficient.
Competition. As noted in Item 1 above, the energy and petrochemical industries are highly competitive. We face competition not only
from other private firms, but also from state-owned companies that are increasingly competing for opportunities outside of their home
countries and as partners with other private firms. In some cases, these state-owned companies may pursue opportunities in
furtherance of strategic objectives of their government owners, with less focus on financial returns than companies owned by private
shareholders, such as ExxonMobil. Technology and expertise provided by industry service companies may also enhance the
competitiveness of firms that may not have the internal resources and capabilities of ExxonMobil or reduce the need for resource-
owning countries to partner with private-sector oil and gas companies in order to monetize national resources. As described in more
detail above, our hydrocarbon-based energy products are also subject to growing and, in many cases, government-supported
competition from alternative energy sources.
Reputation. Our reputation is an important corporate asset. Factors that could have a negative impact on our reputation include an
operating incident or significant cybersecurity disruption; changes in consumer views concerning our products; a perception by
investors or others that the Corporation is making insufficient progress with respect to our ambition to lead in the energy transition, or
that pursuit of this ambition may result in allocation of capital to investments with reduced returns; and other adverse events such as
those described in this Item 1A. Negative impacts on our reputation could in turn make it more difficult for us to compete successfully
for new opportunities, obtain necessary regulatory approvals, obtain financing, attract talent, or could reduce consumer demand for our
branded products. ExxonMobil’s reputation may also be harmed by events which negatively affect the image of our industry as a
whole.
Projections, estimates, and descriptions of ExxonMobil’s plans and objectives included or incorporated in Items 1, 1A, 2, 7 and 7A of
this report are forward-looking statements. Actual future results, including project completion dates, production rates, capital
expenditures, costs, and business plans could differ materially due to, among other things, the factors discussed above and elsewhere
in this report.
ITEM 1B. UNRESOLVED STAFF COMMENTS
None.
6
ITEM 2. PROPERTIES
Information with regard to oil and gas producing activities follows:
1. Disclosure of Reserves
A. Summary of Oil and Gas Reserves at Year-End 2021
The table below summarizes the oil-equivalent proved reserves in each geographic area and by product type for consolidated
subsidiaries and equity companies. Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels.
The Corporation has reported proved reserves on the basis of the average of the first-day-of-the-month price for each month during the
last 12-month period. As a result of higher average prices in 2021, certain quantities of crude oil, bitumen, and natural gas that did not
qualify as proved reserves in the prior year qualified as proved reserves at year-end 2021. Otherwise, no major discovery or other
favorable or adverse event has occurred since December 31, 2021 that would cause a significant change in the estimated proved
reserves as of that date.
Crude
Oil
(million bbls)
Natural Gas
Liquids
(million bbls)
Bitumen
(million bbls)
Synthetic
Oil
(million bbls)
Natural
Gas
(billion cubic ft)
Oil-
Equivalent
Total
All Products
(million bbls)
Proved Reserves
Developed
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated
Equity Companies
United States
Europe
Africa
Asia
Total Equity Company
Total Developed
Undeveloped
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated
Equity Companies
United States
Europe
Africa
Asia
Total Equity Company
Total Undeveloped
Total Proved Reserves
1,170
262
3
304
2,096
45
3,880
127
10
—
322
459
4,339
1,137
507
—
31
941
29
2,645
28
—
5
419
452
3,097
7,436
493
6
—
26
58
18
601
6
—
—
152
158
759
484
1
—
—
47
3
535
—
—
—
112
112
647
1,406
—
2,635
—
—
—
—
2,635
—
—
—
—
—
2,635
—
259
—
—
—
—
259
—
—
—
—
—
259
2,894
—
326
—
—
—
—
326
—
—
—
—
—
326
—
112
—
—
—
—
112
—
—
—
—
—
112
438
11,287
574
377
315
2,527
3,513
18,593
117
339
—
6,017
6,473
25,066
3,701
345
6
2
1,166
2,850
8,070
23
69
806
4,141
5,039
13,109
38,175
3,544
3,325
66
382
2,575
648
10,540
153
66
—
1,477
1,696
12,236
2,238
937
1
31
1,182
507
4,896
32
12
139
1,221
1,404
6,300
18,536
(1) Other Americas includes proved developed reserves of 106 million barrels of crude oil and 151 billion cubic feet of natural gas,
as well as proved undeveloped reserves of 488 million barrels of crude oil and 233 billion cubic feet of natural gas.
7
In the preceding reserves information, consolidated subsidiary and equity company reserves are reported separately. However, the
Corporation operates its business with the same view of equity company reserves as it has for reserves from consolidated subsidiaries.
The Corporation anticipates several projects will come online over the next few years providing additional production capacity.
However, actual volumes will vary from year to year due to the timing of individual project start-ups; operational outages; reservoir
performance; performance of enhanced oil recovery projects; regulatory changes; the impact of fiscal and commercial terms; asset
sales; weather events; price effects on production sharing contracts; changes in the amount and timing of capital investments that may
vary depending on the oil and gas price environment; and other factors described in Item 1A. Risk Factors.
The estimation of proved reserves, which is based on the requirement of reasonable certainty, is an ongoing process based on rigorous
technical evaluations, commercial and market assessments and detailed analysis of well and reservoir information such as flow rates
and reservoir pressures. Furthermore, the Corporation only records proved reserves for projects which have received significant
funding commitments by management toward the development of the reserves. Although the Corporation is reasonably certain that
proved reserves will be produced, the timing and amount recovered can be affected by a number of factors including completion of
development projects, reservoir performance, regulatory approvals, government policies, consumer preferences, and significant
changes in crude oil and natural gas price levels. In addition, proved reserves could be affected by an extended period of low prices
which could reduce the level of the Corporation’s capital spending and also impact our partners’ capacity to fund their share of joint
projects.
B. Technologies Used in Establishing Proved Reserves Additions in 2021
Additions to ExxonMobil’s proved reserves in 2021 were based on estimates generated through the integration of available and
appropriate geological, engineering and production data, utilizing well-established technologies that have been demonstrated in the
field to yield repeatable and consistent results.
Data used in these integrated assessments included information obtained directly from the subsurface via wellbores, such as well logs,
reservoir core samples, fluid samples, static and dynamic pressure information, production test data, and surveillance and performance
information. The data utilized also included subsurface information obtained through indirect measurements including high-quality
3‑D and 4‑D seismic data, calibrated with available well control information. The tools used to interpret the data included seismic
processing software, reservoir modeling and simulation software, and data analysis packages.
In some circumstances, where appropriate analog reservoirs were available, reservoir parameters from these analogs were used to
increase the quality of and confidence in the reserves estimates.
8
C. Qualifications of Reserves Technical Oversight Group and Internal Controls over Proved Reserves
ExxonMobil has a dedicated Global Reserves and Resources group that provides technical oversight and is separate from the operating
organization. Primary responsibilities of this group include oversight of the reserves estimation process for compliance with Securities
and Exchange Commission (SEC) rules and regulations, review of annual changes in reserves estimates, and the reporting of
ExxonMobil’s proved reserves. This group also maintains the official company reserves estimates for ExxonMobil’s proved reserves
of crude oil, natural gas liquids, bitumen, synthetic oil, and natural gas. In addition, the group provides training to personnel involved
in the reserves estimation and reporting process within ExxonMobil and its affiliates. The Manager of the Global Reserves and
Resources group has more than 30 years of experience in reservoir engineering and reserves assessment, has a degree in Engineering
and served on the Oil and Gas Reserves Committee of the Society of Petroleum Engineers (SPE). The group is staffed with individuals
that have an average of more than 15 years of technical experience in the petroleum industry, including expertise in the classification
and categorization of reserves under SEC guidelines. This group includes individuals who hold degrees in either Engineering or
Geology.
The Global Reserves and Resources group maintains a central database containing the official company reserves estimates.
Appropriate controls, including limitations on database access and update capabilities, are in place to ensure data integrity within this
central database. An annual review of the system’s controls is performed by internal audit. Key components of the reserves estimation
process include technical evaluations, commercial and market assessments, analysis of well and field performance, and long-standing
approval guidelines. No changes may be made to the reserves estimates in the central database, including additions of any new initial
reserves estimates or subsequent revisions, unless these changes have been thoroughly reviewed and evaluated by duly authorized
geoscience and engineering professionals within the operating organization. In addition, changes to reserves estimates that exceed
certain thresholds require further review and approval by the appropriate level of management within the operating organization
before the changes may be made in the central database. Endorsement by the Global Reserves and Resources group for all proved
reserves changes is a mandatory component of this review process. After all changes are made, reviews are held with senior
management for final endorsement.
2. Proved Undeveloped Reserves
At year-end 2021, approximately 6.3 billion oil-equivalent barrels (GOEB) of ExxonMobil’s proved reserves were classified as
proved undeveloped. This represents 34 percent of the 18.5 GOEB reported in proved reserves. This compares to 5.0 GOEB of proved
undeveloped reserves reported at the end of 2020. During the year, ExxonMobil conducted development activities that resulted in the
transfer of approximately 0.5 GOEB from proved undeveloped to proved developed reserves by year end. The largest transfers were
related to development activities in the United States. During 2021, extensions and discoveries, primarily in the United States, Brazil,
and Guyana, resulted in an addition of approximately 1.3 GOEB of proved undeveloped reserves, along with an increase of
approximately 0.6 GOEB due to revisions primarily in Asia and Canada.
Overall, investments of $8.0 billion were made by the Corporation during 2021 to progress the development of reported proved
undeveloped reserves, including $7.8 billion for oil and gas producing activities, along with additional investments for other non-oil
and gas producing activities such as the construction of support infrastructure and other related facilities. These investments
represented 65 percent of the $12.3 billion in total reported Upstream capital and exploration expenditures.
One of ExxonMobil’s requirements for reporting proved reserves is that management has made significant funding commitments
toward the development of the reserves. ExxonMobil has a disciplined investment strategy and many major fields require long lead-
time in order to be developed. Development projects typically take several years from the time of recording proved undeveloped
reserves to the start of production and can exceed five years for large and complex projects. Proved undeveloped reserves in Australia,
Canada, Kazakhstan, the United States, and the United Arab Emirates have remained undeveloped for five years or more primarily due
to constraints on the capacity of infrastructure, as well as the time required to complete development for very large projects. The
Corporation is reasonably certain that these proved reserves will be produced; however, the timing and amount recovered can be
affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals,
government policies, consumer preferences, the pace of co-venturer/government funding, changes in the amount and timing of capital
investments, and significant changes in crude oil and natural gas price levels. Of the proved undeveloped reserves that have been
reported for five or more years, over 80 percent are contained in the aforementioned countries. In Australia, proved undeveloped
reserves are associated with future compression for the Gorgon Jansz LNG project. In Canada, proved undeveloped reserves are
related to Cold Lake operations. In Kazakhstan, the proved undeveloped reserves are related to the remainder of the Tengizchevroil
joint venture development that includes a production license in the Tengiz - Korolev field complex. The Tengizchevroil joint venture
is producing, and proved undeveloped reserves will continue to move to proved developed as approved development phases progress.
In the United Arab Emirates, proved undeveloped reserves are associated with an approved development plan and continued drilling
investment for the producing Upper Zakum field.
9
3. Oil and Gas Production, Production Prices and Production Costs
A. Oil and Gas Production
The table below summarizes production by final product sold and by geographic area for the last three years.
Crude oil and natural gas liquids production
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Asia
Total Equity Companies
2021
2020
(thousands of barrels daily)
2019
Crude
Oil
NGL
Crude
Oil
NGL
Crude
Oil
NGL
482
130
16
241
407
28
1,304
43
3
207
253
195
3
3
7
21
15
244
1
—
60
61
481
121
22
301
449
29
1,403
49
3
208
260
154
5
5
11
23
15
213
1
—
62
63
461
87
84
360
432
30
1,454
52
3
232
287
131
4
21
12
22
15
205
2
—
62
64
Total crude oil and natural gas liquids production
1,557
305
1,663
276
1,741
269
Bitumen production
Consolidated Subsidiaries
Canada/Other Americas
Synthetic oil production
Consolidated Subsidiaries
Canada/Other Americas
Total liquids production
Natural gas production available for sale
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Asia
Total Equity Companies
Total natural gas production available for sale
Oil-equivalent production
365
342
311
62
2,289
2,724
195
377
43
807
1,280
5,426
22
431
2,658
3,111
8,537
3,712
68
2,349
(millions of cubic feet daily)
2,668
277
447
9
872
1,219
5,492
23
342
2,614
2,979
8,471
65
2,386
2,756
258
808
7
851
1,319
5,999
22
649
2,724
3,395
9,394
(thousands of oil-equivalent barrels daily)
3,761
3,952
(1) Other Americas includes crude oil production for 2021, 2020 and 2019 of 48 thousand, 29 thousand, and 2 thousand barrels
daily, respectively; and natural gas production available for sale for 2021, 2020 and 2019 of 36 million, 45 million, and 36
million cubic feet daily, respectively.
10
B. Production Prices and Production Costs
The table below summarizes average production prices and average production costs by geographic area and by product type for the
last three years.
During 2021
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
Equity Companies
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Average production costs, per oil-equivalent barrel - total
Total
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
During 2020
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
Equity Companies
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Average production costs, per oil-equivalent barrel - total
Total
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
United
States
65.03
32.24
3.02
—
—
8.33
—
—
67.06
29.94
3.11
30.51
65.20
32.23
3.02
—
—
9.24
—
—
34.97
13.83
0.98
—
—
9.82
—
—
39.10
11.05
1.19
25.13
35.35
13.80
0.98
—
—
10.55
—
—
Canada/
Other
Americas Europe
Africa
(dollars per unit)
Asia
Australia/
Oceania
Total
68.56
30.51
2.92
44.26
64.73
22.47
22.69
48.87
—
—
—
—
68.56
30.51
2.92
44.26
64.73
22.47
22.69
48.87
37.26
10.34
1.56
17.71
37.32
18.40
19.22
33.61
—
—
—
—
37.26
10.34
1.56
17.71
37.32
18.40
19.22
33.61
66.20
42.31
11.83
—
—
25.31
—
—
62.60
—
8.19
38.82
65.54
42.31
9.89
—
—
31.79
—
—
41.39
20.11
3.13
—
—
21.22
—
—
38.95
—
3.85
30.74
41.11
20.11
3.44
—
—
24.76
—
—
70.21
54.57
1.67
—
—
18.92
—
—
—
—
—
—
70.21
54.57
1.67
—
—
19.04
—
—
42.27
21.32
1.24
—
—
16.67
—
—
—
—
—
—
42.27
21.32
1.24
—
—
16.73
—
—
67.28
32.62
2.11
—
—
7.16
—
—
65.85
52.14
6.54
1.59
66.80
47.10
5.50
—
—
4.06
—
—
39.39
21.37
1.49
—
—
6.50
—
—
35.18
30.02
3.14
1.63
38.07
27.65
2.72
—
—
3.91
—
—
69.00
43.07
6.64
—
—
5.14
—
—
67.14
33.65
4.33
44.26
64.73
12.15
22.69
48.87
—
—
—
—
66.01
51.64
6.74
6.67
69.00
43.07
6.64
—
—
5.14
—
—
66.96
37.27
5.21
44.26
64.73
10.92
22.69
48.87
36.67
27.92
4.34
—
—
5.35
—
—
38.31
16.05
2.01
17.71
37.32
11.57
19.22
33.61
—
—
—
—
35.97
29.58
3.20
5.34
36.67
27.92
4.34
—
—
5.35
—
—
37.95
19.16
2.43
17.71
37.32
10.21
19.22
33.61
11
During 2019
Consolidated Subsidiaries
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
Equity Companies
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Average production costs, per oil-equivalent barrel - total
Total
Average production prices
Crude oil, per barrel
NGL, per barrel
Natural gas, per thousand cubic feet
Bitumen, per barrel
Synthetic oil, per barrel
Average production costs, per oil-equivalent barrel - total
Average production costs, per barrel - bitumen
Average production costs, per barrel - synthetic oil
United
States
54.41
18.94
1.54
—
—
12.25
—
—
60.95
15.63
1.75
25.70
55.08
18.90
1.54
—
—
12.95
—
—
Canada/
Other
Americas Europe
Africa
(dollars per unit)
Asia
Australia/
Oceania
Total
59.39
16.59
1.44
36.25
56.18
23.41
24.18
40.38
—
—
—
—
59.39
16.59
1.44
36.25
56.18
23.41
24.18
40.38
63.59
30.56
4.50
—
—
13.69
—
—
58.72
—
5.01
14.04
63.41
30.56
4.73
—
—
13.80
—
—
65.64
41.41
1.49
—
—
17.51
—
—
64.14
24.64
2.07
—
—
7.34
—
—
61.08
30.55
6.26
—
—
6.60
—
—
61.04
22.85
3.05
36.25
56.18
13.43
24.18
40.38
—
—
—
—
58.74
36.28
5.24
2.03
—
—
—
—
59.15
35.76
5.17
5.00
65.64
41.41
1.49
—
—
17.56
—
—
62.27
33.23
4.49
—
—
4.39
—
—
61.08
30.55
6.26
—
—
6.60
—
—
60.73
25.89
3.82
36.25
56.18
11.48
24.18
40.38
Average production prices have been calculated by using sales quantities from the Corporation’s own production as the divisor.
Average production costs have been computed by using net production quantities for the divisor. The volumes of crude oil and natural
gas liquids (NGL) production used for this computation are shown in the oil and gas production table in section 3.A. The volumes of
natural gas used in the calculation are the production volumes of natural gas available for sale and are also shown in section 3.A. The
natural gas available for sale volumes are different from those shown in the reserves table in the “Oil and Gas Reserves” part of the
“Supplemental Information on Oil and Gas Exploration and Production Activities” portion of the Financial Section of this report due
to volumes consumed or flared. Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
12
4. Drilling and Other Exploratory and Development Activities
A. Number of Net Productive and Dry Wells Drilled
2021
2020
2019
Net Productive Exploratory Wells Drilled
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total productive exploratory wells drilled
Net Dry Exploratory Wells Drilled
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total dry exploratory wells drilled
1
5
—
—
—
—
6
—
—
—
—
—
6
1
3
—
—
—
—
4
—
—
—
—
—
4
4
2
—
1
—
—
7
—
—
—
—
—
7
—
1
—
—
1
—
2
—
—
—
—
—
2
3
6
1
—
—
1
11
—
—
—
—
—
11
—
1
1
—
—
1
3
—
—
—
—
—
3
13
Net Productive Development Wells Drilled
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total productive development wells drilled
Net Dry Development Wells Drilled
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total dry development wells drilled
2021
2020
2019
433
28
1
1
4
—
467
13
1
1
5
20
487
4
—
—
—
—
—
4
—
—
—
—
—
4
412
36
2
2
15
4
471
60
1
—
5
66
537
6
—
—
—
—
1
7
—
—
—
—
—
7
618
49
3
4
12
—
686
199
—
—
9
208
894
8
—
—
1
—
—
9
—
—
—
—
—
9
Total number of net wells drilled
501
553
917
14
B. Exploratory and Development Activities Regarding Oil and Gas Resources Extracted by Mining Technologies
Syncrude Operations. Syncrude is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods
to extract the crude bitumen, and then upgrade it to produce a high-quality, light (32 degrees API), sweet, synthetic crude oil. Imperial
Oil Limited is the owner of a 25 percent interest in the joint venture. Exxon Mobil Corporation has a 69.6 percent interest in Imperial
Oil Limited. In 2021, the company’s share of net production of synthetic crude oil was about 62 thousand barrels per day and share of
net acreage was about 55 thousand acres in the Athabasca oil sands deposit.
Kearl Operations. Kearl is a joint venture established to recover shallow deposits of oil sands using open-pit mining methods to
extract the crude bitumen. Imperial Oil Limited holds a 70.96 percent interest in the joint venture and ExxonMobil Canada Properties
holds the other 29.04 percent. Exxon Mobil Corporation has a 69.6 percent interest in Imperial Oil Limited and a 100 percent interest
in ExxonMobil Canada Properties. Kearl is comprised of six oil sands leases covering about 49 thousand acres in the Athabasca oil
sands deposit.
Kearl is located approximately 40 miles north of Fort McMurray, Alberta, Canada. Bitumen is extracted from oil sands and processed
through bitumen extraction and froth treatment trains. The product, a blend of bitumen and diluent, is shipped to our refineries and to
other third parties. Diluent is natural gas condensate or other light hydrocarbons added to the crude bitumen to facilitate transportation
by pipeline and rail. During 2021, average net production at Kearl was about 251 thousand barrels per day.
During 2021, approximately 2.4 billion barrels of bitumen at Kearl were added to proved reserves primarily as a result of an improved
SEC price basis versus 2020.
5. Present Activities
A. Wells Drilling
Wells Drilling
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total gross and net wells drilling
Year-End 2021
Year-End 2020
Gross
Net
Gross
Net
1,059
44
2
11
11
—
1,127
12
—
—
2
14
588
33
1
2
3
—
627
—
—
—
1
1
1,206
38
13
14
14
—
1,285
3
1
6
2
12
741
29
6
3
4
—
783
1
1
1
1
4
1,141
628
1,297
787
15
B. Review of Principal Ongoing Activities
UNITED STATES
ExxonMobil’s year-end 2021 acreage holdings totaled 10.5 million net acres, of which 0.3 million net acres were offshore.
ExxonMobil was active in areas onshore and offshore in the lower 48 states and in Alaska. Development activities continued on the
Golden Pass liquefied natural gas export project.
During the year, a total of 449.4 net exploration and development wells were completed in the inland lower 48 states. Development
activities focused on liquids-rich opportunities in the onshore U.S., primarily in the Permian Basin of West Texas and New Mexico.
ExxonMobil’s net acreage in the Gulf of Mexico at year-end 2021 was 0.3 million acres. A total of 0.8 net exploration and
development wells were completed during the year.
Participation in Alaska production and development continued with a total of 1.1 net development wells completed.
CANADA / OTHER AMERICAS
Canada
Oil and Gas Operations: ExxonMobil’s year-end 2021 acreage holdings totaled 6.7 million net acres, of which 3.9 million net acres
were offshore. A total of 3.7 net development wells were completed during the year.
In Situ Bitumen Operations: ExxonMobil’s year-end 2021 in situ bitumen acreage holdings totaled 0.6 million net onshore acres. A
total of 12 net development wells at Cold Lake were completed during the year.
Argentina
ExxonMobil’s net acreage totaled 2.9 million acres, of which 2.6 million net acres were offshore at year-end 2021. During the year, a
total of 8.1 net development wells were completed.
Brazil
ExxonMobil’s net acreage totaled 2.6 million offshore acres at year-end 2021. During the year, a total of 1.4 net exploration wells
were completed. The Bacalhau Phase 1 project was funded in 2021.
Guyana
ExxonMobil’s net acreage totaled 4.6 million offshore acres at year-end 2021. During the year, a total of 11 net exploration and
development wells were completed. Development activities continued on the Liza Phase 2 and Payara projects.
EUROPE
Germany
ExxonMobil’s net acreage totaled 1.6 million onshore acres at year-end 2021. During the year, a total of 0.3 net development well was
completed.
Netherlands
ExxonMobil’s net interest in licenses totaled 1.4 million acres, of which 1.0 million acres were onshore at year-end 2021. During the
year, a total of 0.5 net development well was completed. In 2021, the Dutch Government further reduced Groningen gas extraction.
The expectation is that Groningen will cease regular production in 2022.
United Kingdom
ExxonMobil’s net interest in licenses totaled 0.1 million offshore acres at year-end 2021. During the year, a total of 0.4 net
development well was completed.
16
AFRICA
Angola
ExxonMobil’s net acreage totaled 3.0 million acres, of which 2.9 million net acres were offshore at year-end 2021. During the year, a
total of 1.1 net development wells were completed.
Chad
ExxonMobil’s net acreage totaled 46 thousand onshore acres at year-end 2021. In 2021, ExxonMobil entered into an agreement to
divest its assets in Chad. The transaction is expected to close in 2022.
Equatorial Guinea
ExxonMobil’s net acreage totaled 0.1 million offshore acres at year-end 2021. In 2021, ExxonMobil relinquished 0.4 million net
offshore acres.
Mozambique
ExxonMobil’s net acreage totaled 1.8 million offshore acres at year-end 2021. During the year, a total of 1.5 net development wells
were completed. Development activities continued on the Coral South Floating LNG project.
Nigeria
ExxonMobil’s net acreage totaled 0.9 million offshore acres at year-end 2021.
ASIA
Azerbaijan
ExxonMobil's net acreage totaled 7 thousand offshore acres at year-end 2021. During the year, a total of 0.7 net development wells
were completed.
Indonesia
ExxonMobil’s net acreage totaled 0.1 million onshore acres at year-end 2021.
Iraq
ExxonMobil’s net acreage totaled 36 thousand onshore acres at year-end 2021. Oil field rehabilitation activities continued during 2021
and across the life of this project will include drilling of new wells; working over of existing wells; and optimization, debottlenecking
and expansion of facilities.
Kazakhstan
ExxonMobil’s net acreage totaled 0.3 million acres, of which 0.2 million net acres were offshore at year-end 2021. During the year, a
total of 2 net development wells were completed. Development activities continued on the Tengiz Expansion project.
Malaysia
ExxonMobil’s interests in production sharing contracts covered 0.2 million net acres offshore at year-end 2021.
Qatar
Through our joint ventures with Qatar Energy, ExxonMobil’s net acreage totaled 65 thousand acres offshore at year-end 2021.
ExxonMobil participated in 62.2 million tonnes per year gross liquefied natural gas capacity and 3.4 billion cubic feet per day of
flowing gas capacity at year-end. During the year, a total of 4.8 net development wells were completed. The North Field Production
Sustainment Integrated Drilling and Looping project was funded in 2021. Effective January 1, 2022, ExxonMobil no longer
participates in the Qatar Liquefied Gas Company Limited (QG1) venture, representing 3.6 thousand net acres and 9.9 million tonnes
per year gross liquefied natural gas capacity.
Russia
ExxonMobil’s net acreage holdings in Sakhalin totaled 85 thousand offshore acres at year-end 2021. During the year, a total of 0.9 net
development wells were completed.
Thailand
ExxonMobil’s net onshore acreage in Thailand concessions totaled 16 thousand acres at year-end 2021. During the year, a total of 0.2
development wells were completed.
17
United Arab Emirates
ExxonMobil’s net acreage in the Abu Dhabi offshore Upper Zakum oil concession was 81 thousand acres at year-end 2021. During
the year, a total of 0.6 net development wells were completed. Development activities continued on the Upper Zakum 1 MBD
Sustainment project.
AUSTRALIA / OCEANIA
Australia
ExxonMobil’s net acreage totaled 1.8 million acres offshore and 10 thousand acres onshore at year-end 2021.
The co-venturer-operated Gorgon Jansz liquefied natural gas (LNG) development consists of a subsea infrastructure for offshore
production and transportation of the gas, a 15.6 million tonnes per year LNG facility and a 280 million cubic feet per day domestic gas
plant located on Barrow Island, Western Australia. The Jansz-Io Compression project was funded in 2021. Development activities
continued on the Gorgon Stage 2 project during the year.
Papua New Guinea
ExxonMobil’s net acreage totaled 3.4 million acres, of which 1.2 million net acres were offshore at year-end 2021. In 2021,
ExxonMobil relinquished 2.1 million net offshore acres. The Papua New Guinea (PNG) liquefied natural gas integrated development
includes gas production and processing facilities in the southern PNG Highlands, onshore and offshore pipelines, and a 6.9 million
tonnes per year liquefied natural gas facility near Port Moresby.
WORLDWIDE EXPLORATION
At year-end 2021, exploration activities were under way in several areas in which ExxonMobil has no established production
operations and thus are not included above. A total of 18.3 million net acres were held at year-end 2021.
6. Delivery Commitments
ExxonMobil sells crude oil and natural gas from its producing operations under a variety of contractual obligations, some of which
may specify the delivery of a fixed and determinable quantity for periods longer than one year. ExxonMobil also enters into natural
gas sales contracts where the source of the natural gas used to fulfill the contract can be a combination of our own production and the
spot market. Worldwide, we are contractually committed to deliver approximately 28 million barrels of oil and 2,500 billion cubic feet
of natural gas for the period from 2022 through 2024. We expect to fulfill the majority of these delivery commitments with production
from our proved developed reserves. Any remaining commitments will be fulfilled with production from our proved undeveloped
reserves and purchases on the open market as necessary.
18
7. Oil and Gas Properties, Wells, Operations and Acreage
A. Gross and Net Productive Wells
Gross and Net Productive Wells
Consolidated Subsidiaries
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Asia
Total Equity Companies
Total gross and net productive wells
Year-End 2021
Year-End 2020
Oil
Gas
Oil
Gas
Gross
Net
Gross
Net
Gross
Net
Gross
Net
19,401
4,656
439
1,102
1,038
522
27,158
7,566
4,548
116
416
333
99
13,078
18,670
3,209
441
24
137
94
22,575
10,773
1,247
207
10
80
40
12,357
19,631
4,754
559
1,141
974
540
27,599
7,878
4,644
126
432
310
102
13,492
20,480
3,276
487
26
132
90
24,491
12,195
1,275
221
10
78
38
13,817
12,108
57
225
12,390
39,548
4,793
20
56
4,869
17,947
3,355
547
168
4,070
26,645
333
171
35
539
12,896
12,368
57
217
12,642
40,241
4,851
20
54
4,925
18,417
4,223
552
157
4,932
29,423
417
172
32
621
14,438
There were 23,645 gross and 20,528 net operated wells at year-end 2021 and 25,595 gross and 22,239 net operated wells at year-end
2020. The number of wells with multiple completions was 1,082 gross in 2021 and 1,067 gross in 2020.
19
B. Gross and Net Developed Acreage
Gross and Net Developed Acreage
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Asia
Total Equity Companies
Total gross and net developed acreage
Year-End 2021
Year-End 2020
Gross
Net
Gross
Net
(thousands of acres)
12,180
2,905
1,980
2,409
1,929
3,242
24,645
687
3,646
701
5,034
29,679
7,503
2,075
1,078
818
557
1,067
13,098
163
1,116
160
1,439
14,537
12,834
2,944
2,231
2,409
1,938
3,262
25,618
928
3,667
701
5,296
30,914
7,971
2,071
1,189
818
561
1,068
13,678
208
1,118
160
1,486
15,164
(1) Includes developed acreage in Other Americas of 490 gross and 311 net thousands of acres for 2021 and 2020.
Separate acreage data for oil and gas are not maintained because, in many instances, both are produced from the same acreage.
C. Gross and Net Undeveloped Acreage
Gross and Net Undeveloped Acreage
Consolidated Subsidiaries
United States
Canada/Other Americas (1)
Europe
Africa
Asia
Australia/Oceania
Total Consolidated Subsidiaries
Equity Companies
United States
Europe
Africa
Asia
Total Equity Companies
Total gross and net undeveloped acreage
Year-End 2021
Year-End 2020
Gross
Net
Gross
Net
(thousands of acres)
6,751
36,764
14,458
23,797
766
8,638
91,174
159
596
596
—
1,351
92,525
2,807
18,246
5,961
15,186
227
4,112
46,539
64
139
149
—
352
46,891
6,969
37,833
14,802
35,956
888
12,971
109,419
160
765
596
—
1,521
110,940
2,967
18,985
6,018
24,558
280
6,265
59,073
64
214
149
—
427
59,500
(1) Includes undeveloped acreage in Other Americas of 26,084 gross and 12,471 net thousands of acres for 2021 and 2020.
20
ExxonMobil’s investment in developed and undeveloped acreage is comprised of numerous concessions, blocks, and leases. The terms
and conditions under which the Corporation maintains exploration and/or production rights to the acreage are property-specific,
contractually defined, and vary significantly from property to property. Work programs are designed to ensure that the exploration
potential of any property is fully evaluated before expiration. In some instances, the Corporation may elect to relinquish acreage in
advance of the contractual expiration date if the evaluation process is complete and there is not a business basis for extension. In cases
where additional time may be required to fully evaluate acreage, the Corporation has generally been successful in obtaining
extensions. The scheduled expiration of leases and concessions for undeveloped acreage over the next three years is not expected to
have a material adverse impact on the Corporation.
D. Summary of Acreage Terms
UNITED STATES
Oil and gas exploration and production rights are acquired from mineral interest owners through a lease. Mineral interest owners
include the Federal and State governments, as well as private mineral interest owners. Leases typically have an exploration period
ranging from one to ten years, and a production period that normally remains in effect until production ceases. Under certain
circumstances, a lease may be held beyond its exploration term even if production has not commenced. In some instances regarding
private property, a “fee interest” is acquired where the underlying mineral interests are owned outright.
CANADA / OTHER AMERICAS
Canada
Exploration licenses or leases in onshore areas are acquired for varying periods of time with renewals or extensions possible. These
licenses or leases entitle the holder to continue existing licenses or leases upon completing specified work. In general, these license
and lease agreements are held as long as there is proven production capability on the licenses and leases. Exploration licenses in
offshore eastern Canada and the Beaufort Sea are held by work commitments of various amounts and rentals. They are valid for a term
of nine years. Offshore production licenses are valid for 25 years, with rights of extension for continued production. Significant
discovery licenses in the offshore, relating to currently undeveloped discoveries, do not have a definite term.
Argentina
The Federal Hydrocarbon Law was amended in 2014. Pursuant to the amended law, the production term for an onshore
unconventional concession is 35 years, and 25 years for a conventional concession, with unlimited 10-year extensions possible, once a
field has been developed. In 2019, the government granted three offshore exploration licenses, with terms of eight years, divided into
two exploration periods of four years, with an optional extension of five years for each license. Two onshore exploration concessions
were initially granted prior to the amendment and are governed under Provincial Law with expiration terms through 2024.
Brazil
The exploration and production of oil and gas are governed by concession contracts and production sharing contracts. Concession
contracts provide for an exploration period of up to 8 years and a production period of 27 years. Production sharing contracts provide
for an exploration period of up to 7 years and a production period of up to 28 years.
Guyana
The Petroleum (Exploration and Production) Act authorizes the government of Guyana to grant petroleum prospecting and production
licenses and to enter into petroleum agreements for the exploration and production of hydrocarbons. Petroleum agreements provide for
an exploration period of up to 10 years and a production period of 20 years, with a 10-year extension.
EUROPE
Germany
Exploration concessions are granted for an initial maximum period of five years, with an unlimited number of extensions up to three
years each. Extensions are subject to specific minimum work commitments. Production licenses are normally granted for 20 to 25
years with multiple possible extensions subject to production on the license.
Netherlands
Under the Mining Law, effective January 1, 2003, exploration and production licenses for both onshore and offshore areas are issued
for a period as explicitly defined in the license. The term is based on the period of time necessary to perform the activities for which
the license is issued. License conditions are stipulated in the license and are based on the Mining Law.
21
Production rights granted prior to January 1, 2003, remain subject to their existing terms, and differ slightly for onshore and offshore
areas. Onshore production licenses issued prior to 1988 were indefinite; from 1988 they were issued for a period as explicitly defined
in the license, ranging from 35 to 45 years. Offshore production licenses issued before 1976 were issued for a fixed period of 40 years;
from 1976 they were again issued for a period as explicitly defined in the license, ranging from 15 to 40 years.
United Kingdom
Acreage terms are fixed by the government and are periodically changed. For example, many of the early licenses issued under the
first four licensing rounds provided an initial term of six years with relinquishment of at least one-half of the original area at the end of
the initial term, subject to extension for a further 40 years. At the end of any such 40-year term, licenses may continue in producing
areas until cessation of production; or licenses may continue in development areas for periods agreed on a case-by-case basis until they
become producing areas; or licenses terminate in all other areas. The majority of traditional licenses currently issued have an initial
exploration term of four years with a second term extension of four years, and a final production term of 18 years, with a mandatory
relinquishment of 50 percent of the acreage after the initial term and of all acreage that is not covered by a development plan at the end
of the second term.
AFRICA
Angola
Exploration and production activities are governed by either production sharing agreements or other contracts with initial exploration
terms ranging from three to four years with options to extend from one to five years. The production periods range from 20 to 30
years, and the agreements generally provide for negotiated extensions.
Chad
Exploration permits are issued for a period of five years, and are renewable for one or two further five-year periods. The terms and
conditions of the permits, including relinquishment obligations, are specified in a negotiated convention. The production term is 30
years and in 2017 was extended by 20 years to 2050.
Equatorial Guinea
Exploration, development and production activities are governed by production sharing contracts negotiated with the State Ministry of
Mines and Hydrocarbons. The production period for crude oil is 30 years.
Mozambique
Exploration and production activities are generally governed by concession contracts with the Government of the Republic of
Mozambique, represented by the Ministry of Mineral Resources and Energy. An interest in Area 4 offshore Mozambique was acquired
in 2017. Terms for Area 4 are governed by the Exploration and Production Concession Contract (EPCC) for Area 4 Offshore of the
Rovuma Block. The EPCC expires 30 years after an approved plan of development becomes effective for a given discovery area.
In 2018, an interest was acquired in offshore blocks, A5-B, Z5-C and Z5-D. Terms for the three blocks are governed by their
respective EPCCs, with blocks Z5-C and Z5-D having an initial exploration phase that expires in 2022 and block A5-B's initial
exploration phase expiring in 2023 after being granted a one-year extension. The EPCCs provide a development and production period
that expires 30 years after the approval of a plan of development.
Nigeria
Exploration and production activities in the deepwater offshore areas are typically governed by production sharing contracts (PSCs)
with the national oil company, the Nigerian National Petroleum Corporation (NNPC). NNPC typically holds the underlying Oil
Prospecting License (OPL) and any resulting Oil Mining Lease (OML). The terms of the PSCs are generally 30 years, including a
10-year exploration period (an initial exploration phase that can be divided into multiple optional periods) covered by an OPL. Upon
commercial discovery, an OPL may be converted to an OML. Partial relinquishment is required under the PSC at the end of the 10-
year exploration period, and OMLs have a 20-year production period that may be extended, subject to the partial relinquishment
provision of the Petroleum Industry Act (PIA) enacted on August 16, 2021.
Some exploration activities are carried out in deepwater by joint ventures with local companies holding interests in an OPL. OPLs in
deepwater offshore areas are valid for 10 years, while in all other areas the licenses are for five years. Demonstrating a commercial
discovery is the basis for conversion of an OPL to an OML.
22
OMLs granted prior to the 1969 Petroleum Act (i.e., under the Mineral Oils Act 1914, repealed by the 1969 Petroleum Act) were for
30 years onshore and 40 years in offshore areas and have been renewed, effective December 1, 2008, for a further period of 20 years,
with a further renewal option of 20 years. Operations under these pre-1969 OMLs are conducted under a joint venture agreement with
NNPC rather than a PSC. Commercial terms applicable to the existing joint venture oil production are defined by the Petroleum
Profits Tax Act.
OMLs granted under the 1969 Petroleum Act, which include all deepwater OMLs, have a maximum term of 20 years without
distinction for onshore or offshore location and are renewable, upon 12-months written notice, for another period of 20 years. OMLs
not held by NNPC are also subject to a mandatory 50-percent relinquishment after the first 10 years of their duration.
ASIA
Azerbaijan
The production sharing agreement (PSA) for the development of the Azeri-Chirag-Gunashli field was established for an initial period
of 30 years starting from the PSA execution date in 1994. The PSA was amended in September 2017 to extend the term by 25 years to
2049.
Indonesia
Exploration and production activities in Indonesia are generally governed by cooperation contracts, usually in the form of a production
sharing contract (PSC), negotiated with BPMIGAS, a government agency established in 2002 to manage upstream oil and gas
activities. In 2012, Indonesia’s Constitutional Court ruled certain articles of law relating to BPMIGAS to be unconstitutional, but
stated that all existing PSCs signed with BPMIGAS should remain in force until their expiry, and the functions and duties previously
performed by BPMIGAS are to be carried out by the relevant Ministry of the Government of Indonesia until the promulgation of a
new oil and gas law. By presidential decree, SKKMIGAS became the interim successor to BPMIGAS. The current PSCs have an
exploration period of six years, which can be extended once for a period of four years with a total contract period of 30 years including
an exploitation period. PSC terms can be extended for a maximum of 20 years for each extension with the approval of the government.
Iraq
Development and production activities in the state-owned oil and gas fields are governed by contracts with regional oil companies of
the Iraqi Ministry of Oil. An ExxonMobil affiliate entered into a contract with Basra Oil Company of the Iraqi Ministry of Oil for the
rights to participate in the development and production activities of the West Qurna Phase I oil and gas field effective March 1, 2010.
The term of the contract is 20 years with the right to extend for five years. The contract provides for cost recovery plus per-barrel fees
for incremental production above specified levels.
Kazakhstan
Onshore exploration and production activities are governed by the production license, exploration license, and joint venture
agreements negotiated with the Republic of Kazakhstan. Existing production operations have a 40-year production period that
commenced in 1993.
Offshore exploration and production activities are governed by a production sharing agreement negotiated with the Republic of
Kazakhstan. The exploration period is six years followed by separate appraisal periods for each discovery. The production period for
each discovery, which includes development, is 20 years from the date of declaration of commerciality with the possibility of two 10-
year extensions.
Malaysia
Production activities are governed by production sharing contracts (PSCs) negotiated with the national oil company. The PSCs have
production terms of 25 years. Extensions are generally subject to the national oil company’s prior written approval.
Qatar
The State of Qatar grants gas production development project rights to develop and supply gas from the offshore North Field to permit
the economic development and production of gas reserves sufficient to satisfy the gas and LNG sales obligations of these projects. The
initial terms for these rights generally extend for 25 years. Extensions and terms are subject to State of Qatar approval.
Russia
Terms for ExxonMobil’s Sakhalin acreage are fixed by the current production sharing agreement between the Russian government and
the Sakhalin-1 consortium, of which ExxonMobil is the operator.
23
Thailand
The Petroleum Act of 1971 allows production under ExxonMobil’s concessions for 30 years with a 10-year extension at terms
generally prevalent at the time. In 2021, one concession was extended to 2031.
United Arab Emirates
An interest in the development and production activities of the offshore Upper Zakum field was acquired in 2006. In 2017, the
governing agreements were extended to 2051.
AUSTRALIA / OCEANIA
Australia
Exploration and production activities conducted offshore in Commonwealth waters are governed by Federal legislation. Exploration
permits are granted for an initial term of six years with two possible five-year renewal periods. Retention leases may be granted for
resources that are not commercially viable at the time of application, but are expected to become commercially viable within 15 years.
These are granted for periods of five years and renewals may be requested. Prior to July 1998, production licenses were granted
initially for 21 years, with a further renewal of 21 years and thereafter indefinitely, i.e., for the life of the field. Effective from July
1998, new production licenses are granted indefinitely. In each case, a production license may be terminated if no production
operations have been carried on for five years.
Papua New Guinea
Exploration and production activities are governed by the Oil and Gas Act. Petroleum prospecting licenses are granted for an initial
term of six years with a five-year extension possible (an additional extension of three years is possible in certain circumstances).
Generally, a 50-percent relinquishment of the license area is required at the end of the initial six-year term, if extended. Petroleum
development licenses are granted for an initial 25-year period. An extension for further consecutive period(s) of up to 20 years may be
granted at the Minister’s discretion. Petroleum retention licenses may be granted for gas resources that are not commercially viable at
the time of application, but may become commercially viable within the maximum possible retention time of 15 years. Petroleum
retention licenses are granted for five-year terms, and may be extended, at the Minister’s discretion, twice for the maximum retention
time of 15 years. Extensions of petroleum retention licenses may be for periods of less than one year, renewable annually, if the
Minister considers at the time of extension that the resources could become commercially viable in less than five years, provided that
the total period of all extensions granted does not exceed 10 years.
24
Information with regard to the Downstream segment follows:
ExxonMobil’s Downstream segment manufactures, trades and sells petroleum products. The refining and supply operations
encompass a global network of manufacturing plants, transportation systems, and distribution centers that provide a range of fuels,
lubricants and other products and feedstocks to our customers around the world.
Refining Capacity At Year-End 2021 (1)
ExxonMobil
Share KBD (2)
ExxonMobil
Interest %
United States
Joliet
Baton Rouge
Billings
Baytown
Beaumont
Total United States
Canada
Strathcona
Nanticoke
Sarnia
Total Canada
Europe
Antwerp
Fos-sur-Mer
Gravenchon
Karlsruhe
Trecate
Rotterdam
Fawley
Total Europe
Asia Pacific
Fujian
Jurong/PAC
Sriracha
Total Asia Pacific
Middle East
Yanbu
Total Worldwide
Illinois
Louisiana
Montana
Texas
Texas
Alberta
Ontario
Ontario
Belgium
France
France
Germany
Italy
Netherlands
United Kingdom
China
Singapore
Thailand
Saudi Arabia
254
521
60
561
369
1,765
196
113
119
428
307
133
244
78
132
192
262
1,348
67
592
167
826
100
100
100
100
100
69.6
69.6
69.6
100
82.9
82.9
25
75.2
100
100
25
100
66
200
50
4,567
(1) Capacity data is based on 100 percent of rated refinery process unit stream-day capacities under normal operating conditions,
less the impact of shutdowns for regular repair and maintenance activities, averaged over an extended period of time. The listing
excludes refining capacity for a minor interest held through equity securities in New Zealand, and the Laffan Refinery in Qatar
for which results are reported in the Upstream segment.
(2) Thousands of barrels per day (KBD). ExxonMobil share reflects 100 percent of atmospheric distillation capacity in operations of
ExxonMobil and majority-owned subsidiaries. For companies owned 50 percent or less, ExxonMobil share is the greater of
ExxonMobil’s interest or that portion of distillation capacity normally available to ExxonMobil.
25
The marketing operations sell products and services throughout the world through our Exxon, Esso and Mobil brands.
Retail Sites At Year-End 2021
—
11,315
11,315
—
2,389
2,389
197
5,834
6,031
566
1,327
1,893
—
489
489
223
205
428
986
21,559
22,545
United States
Owned/leased
Distributors/resellers
Total United States
Canada
Owned/leased
Distributors/resellers
Total Canada
Europe
Owned/leased
Distributors/resellers
Total Europe
Asia Pacific
Owned/leased
Distributors/resellers
Total Asia Pacific
Latin America
Owned/leased
Distributors/resellers
Total Latin America
Middle East/Africa
Owned/leased
Distributors/resellers
Total Middle East/Africa
Worldwide
Owned/leased
Distributors/resellers
Total Worldwide
26
Information with regard to the Chemical segment follows:
ExxonMobil’s Chemical segment manufactures and sells petrochemicals. The Chemical business supplies olefins, polyolefins,
aromatics, and a wide variety of other petrochemicals.
Chemical Complex Capacity At Year-End 2021 (1)
Ethylene
Polyethylene
Polypropylene Paraxylene
ExxonMobil
Interest %
(millions of metric tons per year)
North America
Baton Rouge
Baytown
Beaumont
Corpus Christi
Mont Belvieu
Sarnia
Total North America
Europe
Antwerp
Fife
Gravenchon
Meerhout
Rotterdam
Total Europe
Middle East
Al Jubail
Yanbu
Total Middle East
Asia Pacific
Fujian
Singapore
Sriracha
Total Asia Pacific
Louisiana
Texas
Texas
Texas
Texas
Ontario
Belgium
United Kingdom
France
Belgium
Netherlands
Saudi Arabia
Saudi Arabia
China
Singapore
Thailand
1.1
4.0
0.9
0.9
—
0.3
7.2
—
0.4
0.4
—
—
0.8
0.7
1.0
1.7
0.3
1.9
—
2.2
1.3
—
1.7
0.7
2.3
0.5
6.5
0.4
—
0.4
0.5
—
1.3
0.7
0.7
1.4
0.2
1.9
—
2.1
Total Worldwide
11.9
11.2
100
100
100
50
100
69.6
100
50
100
100
100
50
50
25
100
66
0.5
0.7
—
—
—
—
1.2
—
—
0.3
—
—
0.3
—
0.2
0.2
0.2
0.9
—
1.1
2.8
—
0.6
0.3
—
—
—
0.9
—
—
—
—
0.7
0.7
—
—
—
0.2
1.8
0.5
2.5
4.1
(1) Capacity reflects 100 percent for operations of ExxonMobil and majority-owned subsidiaries. For companies owned 50 percent
or less, capacity is ExxonMobil’s interest.
Due to rounding, numbers presented above may not add up precisely to the totals indicated.
27
ITEM 3. LEGAL PROCEEDINGS
ExxonMobil has elected to use a $1 million threshold for disclosing environmental proceedings.
Refer to the relevant portions of “Note 16: Litigation and Other Contingencies” of the Financial Section of this report for additional
information on legal proceedings.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
28
Information about our Executive Officers
(positions and ages as of February 23, 2022)
Darren W. Woods
Chairman of the Board
Held current title since:
January 1, 2017
Age: 57
Mr. Darren W. Woods became a Director and President of Exxon Mobil Corporation on January 1, 2016, and Chairman of the Board
and Chief Executive Officer of Exxon Mobil Corporation on January 1, 2017, positions he continues to hold as of this filing date.
Neil A. Chapman
Senior Vice President
Held current title since:
January 1, 2018
Age: 59
Mr. Neil A. Chapman was President of ExxonMobil Chemical Company and Vice President of Exxon Mobil Corporation
January 1, 2015 – December 31, 2017. He became Senior Vice President of Exxon Mobil Corporation on January 1, 2018, a position
he continues to hold as of this filing date.
Kathryn A. Mikells
Senior Vice President and Chief Financial Officer
Held current title since:
August 9, 2021
Age: 56
Ms. Kathryn A. Mikells was Chief Financial Officer and a member of the board of directors of Diageo plc November 2015 – June
2021. Prior to that time, she held Chief Financial Officer positions at Xerox, ADT, Nalco, and United Airlines, where she also served
as Vice President of Investor Relations and Treasurer. She became Senior Vice President and Chief Financial Officer of Exxon
Mobil Corporation on August 9, 2021, positions she continues to hold as of this filing date.
Jack P. Williams, Jr.
Senior Vice President
Held current title since:
June 1, 2014
Age: 58
Mr. Jack P. Williams, Jr. became Senior Vice President of Exxon Mobil Corporation on June 1, 2014, a position he continues to hold
as of this filing date.
Ian S. Carr
Vice President
September 1, 2020
Held current title since:
Mr. Ian S. Carr was Vice President, Strategy and Planning, ExxonMobil Refining & Supply Company May 1, 2014 – July 31, 2017.
He was Vice President, Upstream Strategy and Planning, ExxonMobil Gas & Power Marketing Company August 1, 2017 –
March 31, 2019. He was Vice President, Strategy and Portfolio Management, ExxonMobil Upstream Business Development
Company April 1, 2019 – September 30, 2019. He was Senior Vice President, Fuels, ExxonMobil Fuels & Lubricants Company
October 1, 2019 – August 31, 2020. He became President of ExxonMobil Fuels & Lubricants Company and Vice President of Exxon
Mobil Corporation on September 1, 2020, positions he continues to hold as of this filing date.
Age: 58
Linda D. DuCharme
Vice President
President, ExxonMobil Integrated Solutions Company
July 1, 2020, and April 1, 2019, respectively
Held current title since:
Ms. Linda D. DuCharme was President of ExxonMobil Global Services Company August 1, 2016 – March 31, 2019. She became
President of ExxonMobil Upstream Integrated Solutions Company April 1, 2019, and President of ExxonMobil Upstream Business
Development Company and Vice President of Exxon Mobil Corporation on July 1, 2020, positions she continues to hold as of this
filing date.
Age: 57
Len M. Fox
Vice President and Controller
Held current title since:
Mr. Len M. Fox was Vice President, Chemical Business Services and Treasurer, ExxonMobil Chemical Company June 1, 2015 –
January 31, 2020. He was Assistant Treasurer of Exxon Mobil Corporation February 1, 2020 – December 31, 2020. Following a
special assignment, he became Vice President and Controller of Exxon Mobil Corporation on March 1, 2021, positions he continues
to hold as of this filing date.
March 1, 2021
Age: 58
29
Jon M. Gibbs
President, ExxonMobil Global Projects Company
Held current title since:
Mr. Jon M. Gibbs was Vice President, Asia Pacific and Middle East, ExxonMobil Development Company January 1, 2016 – January
14, 2019. He was Upstream Organization Design Team Lead, ExxonMobil Development Company January 15, 2019 – March 31,
2019. He was President, ExxonMobil Global Services Company April 1, 2019 – June 30, 2020. He was Senior Vice President,
Global Project Delivery, ExxonMobil Global Projects Company July 1, 2020 – March 31, 2021. He became President of
ExxonMobil Global Projects Company on April 1, 2021, a position he continues to hold as of this filing date.
April 1, 2021
Age: 50
Stephen A. Littleton
Vice President – Investor Relations and Secretary
Held current title since:
Mr. Stephen A. Littleton was Assistant Controller of Exxon Mobil Corporation June 1, 2015 – April 30, 2018. He was Vice
President, Downstream Business Services and Downstream Controller May 1, 2018 – March 14, 2020. He became Vice President –
Investor Relations and Secretary of Exxon Mobil Corporation on March 15, 2020, positions he continues to hold as of this filing date.
March 15, 2020
Age: 56
Liam M. Mallon
Vice President
Held current title since:
Mr. Liam M. Mallon was President of ExxonMobil Development Company January 1, 2017 – March 31, 2019. He became President
of ExxonMobil Upstream Oil & Gas Company and Vice President of Exxon Mobil Corporation on April 1, 2019, positions he
continues to hold as of this filing date.
April 1, 2019
Age: 59
Karen T. McKee
Vice President
Held current title since:
Ms. Karen T. McKee was Vice President, Basic Chemicals, ExxonMobil Chemical Company May 1, 2014 – July 31, 2017. She was
Senior Vice President, Basic Chemicals, Integration & Growth, ExxonMobil Chemical Company August 1, 2017 – March 31, 2019.
She became President of ExxonMobil Chemical Company and Vice President of Exxon Mobil Corporation on April 1, 2019,
positions she continues to hold as of this filing date.
April 1, 2019
Age: 55
Craig S. Morford
Vice President and General Counsel
Held current title since:
Mr. Craig S. Morford was Chief Legal and Compliance Officer of Cardinal Heath, Inc. prior to joining Exxon Mobil Corporation in
May 2019. He was Deputy General Counsel of Exxon Mobil Corporation May 1, 2019 – October 31, 2020. He became Vice
President and General Counsel of Exxon Mobil Corporation on November 1, 2020, positions he continues to hold as of this filing
date.
November 1, 2020
Age: 63
James M. Spellings, Jr.
Vice President, Treasurer and General Tax Counsel
Held current title since:
March 1, 2010 (Vice President and General Tax Counsel)
April 1, 2020 (Treasurer)
Age: 60
Mr. James M. Spellings, Jr. became Vice President and General Tax Counsel of Exxon Mobil Corporation on March 1, 2010, and
Treasurer of Exxon Mobil Corporation on April 1, 2020, positions he continues to hold as of this filing date.
Theodore J. Wojnar, Jr.
Vice President – Corporate Strategic Planning
Held current title since:
August 1, 2017
Age: 62
Mr. Theodore J. Wojnar, Jr. was President of ExxonMobil Research and Engineering Company April 1, 2011 – July 31, 2017. He
became Vice President – Corporate Strategic Planning of Exxon Mobil Corporation on August 1, 2017, a position he continues to
hold as of this filing date.
Officers are generally elected by the Board of Directors at its meeting on the day of each annual election of directors, with each such
officer serving until a successor has been elected and qualified. The above-named officers are required to file reports under Section 16
of the Securities Exchange Act of 1934.
30
PART II
ITEM 5. MARKET FOR REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS
AND ISSUER PURCHASES OF EQUITY SECURITIES
The principal market where ExxonMobil common stock (XOM) is traded is the New York Stock Exchange, although the stock is
traded on other exchanges in and outside the United States.
There were 327,689 registered shareholders of ExxonMobil common stock at December 31, 2021. At January 31, 2022, the registered
shareholders of ExxonMobil common stock numbered 325,508.
On January 26, 2022, the Corporation declared an $0.88 dividend per common share, payable March 10, 2022.
Reference is made to Item 12 in Part III of this report.
Issuer Purchases of Equity Securities for Quarter Ended December 31, 2021
Period
October 2021
November 2021
December 2021
Total
Average Price Paid
per Share
Total Number of
Shares Purchased
-
-
-
—
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
-
-
-
—
Maximum Number
of Shares that May
Yet be Purchased
Under the Plans or
Programs
(See Note 1)
During the fourth quarter, the Corporation did not purchase any shares of its common stock for the treasury, and did not issue or sell
any unregistered equity securities.
Note 1 - In January 2022, the Corporation initiated a share repurchase program of up to $10 billion over 12 to 24 months.
ITEM 7. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS
OF OPERATIONS
Reference is made to the section entitled “Management’s Discussion and Analysis of Financial Condition and Results of Operations”
in the Financial Section of this report.
ITEM 7A. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
Reference is made to the section entitled “Market Risks” in the Financial Section of this report. All statements, other than historical
information incorporated in this Item 7A, are forward-looking statements. The actual impact of future market changes could differ
materially due to, among other things, factors discussed in this report.
31
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
Reference is made to the following in the Financial Section of this report:
•
•
•
Consolidated financial statements, together with the report thereon of PricewaterhouseCoopers LLP (PCAOB ID 238) dated
February 23, 2022, beginning with the section entitled “Report of Independent Registered Public Accounting Firm” and
continuing through “Note 19: Income and Other Taxes”;
“Supplemental Information on Oil and Gas Exploration and Production Activities” (unaudited); and
“Frequently Used Terms” (unaudited).
Financial Statement Schedules have been omitted because they are not applicable or the required information is shown in the
consolidated financial statements or notes thereto.
ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND
FINANCIAL DISCLOSURE
None.
ITEM 9A. CONTROLS AND PROCEDURES
Management’s Evaluation of Disclosure Controls and Procedures
As indicated in the certifications in Exhibit 31 of this report, the Corporation’s Chief Executive Officer, Chief Financial Officer, and
Principal Accounting Officer have evaluated the Corporation’s disclosure controls and procedures as of December 31, 2021. Based on
that evaluation, these officers have concluded that the Corporation’s disclosure controls and procedures are effective in ensuring that
information required to be disclosed by the Corporation in the reports that it files or submits under the Securities Exchange Act of
1934, as amended, is accumulated and communicated to them in a manner that allows for timely decisions regarding required
disclosures and are effective in ensuring that such information is recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission’s rules and forms.
Management’s Report on Internal Control Over Financial Reporting
Management, including the Corporation’s Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer, is
responsible for establishing and maintaining adequate internal control over the Corporation’s financial reporting. Management
conducted an evaluation of the effectiveness of internal control over financial reporting based on criteria established in Internal
Control - Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based
on this evaluation, management concluded that Exxon Mobil Corporation’s internal control over financial reporting was effective as of
December 31, 2021.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Corporation’s
internal control over financial reporting as of December 31, 2021, as stated in their report included in the Financial Section of this
report.
Changes in Internal Control Over Financial Reporting
There were no changes during the Corporation’s last fiscal quarter that materially affected, or are reasonably likely to materially
affect, the Corporation’s internal control over financial reporting.
ITEM 9B. OTHER INFORMATION
None.
ITEM 9C. DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS
Not applicable.
32
PART III
ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE
Reference is made to the section of this report titled “Information about our Executive Officers”.
Incorporated by reference to the following from the registrant’s definitive proxy statement for the 2022 annual meeting of shareholders
(the “2022 Proxy Statement”):
•
•
•
The section entitled “Election of Directors”;
The portions entitled “Director Qualifications”, “Director Nomination Process and Board Succession”, and “Code of Ethics
and Business Conduct” of the section entitled “Corporate Governance”; and
The “Audit Committee” portion, “Director Independence” portion, “Board Meetings and Annual Meeting Attendance”
portion, and the membership table of the portion entitled “Board Committees” of the section entitled “Corporate
Governance”.
ITEM 11. EXECUTIVE COMPENSATION
Incorporated by reference to the sections entitled “Director Compensation”, “Compensation Committee Report”, “Compensation
Discussion and Analysis”, “Executive Compensation Tables”, and “Pay Ratio” of the registrant’s 2022 Proxy Statement.
ITEM 12. SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND
RELATED STOCKHOLDER MATTERS
The information required under Item 403 of Regulation S-K is incorporated by reference to the sections “Director and Executive
Officer Stock Ownership” and “Certain Beneficial Owners” of the registrant’s 2022 Proxy Statement.
Equity Compensation Plan Information
Plan Category
Equity compensation plans approved by security holders
(a)
(b)
(c)
Number of Securities to be
Issued Upon Exercise of
Outstanding Options,
Warrants and Rights
42,039,960
(1)
Weighted-
Average
Exercise Price of
Outstanding
Options,
Warrants and
Rights
—
Number of Securities
Remaining Available for
Future Issuance Under
Equity Compensation Plans
[Excluding Securities
Reflected in Column (a)]
66,104,769
(2)(3)
Equity compensation plans not approved by security holders
—
Total
42,039,960
(1) The number of restricted stock units to be settled in shares.
—
—
—
66,104,769
(2) Available shares can be granted in the form of restricted stock or other stock-based awards. Includes 65,754,069 shares
available for award under the 2003 Incentive Program and 350,700 shares available for award under the 2004 Non-
Employee Director Restricted Stock Plan.
(3) Under the 2004 Non-Employee Director Restricted Stock Plan approved by shareholders in May 2004, and the related
standing resolution adopted by the Board, each non-employee director automatically receives 8,000 shares of restricted stock
when first elected to the Board and, if the director remains in office, an additional 2,500 restricted shares each following
year. While on the Board, each non-employee director receives the same cash dividends on restricted shares as a holder of
regular common stock, but the director is not allowed to sell the shares. The restricted shares may be forfeited if the director
leaves the Board early.
33
ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR
INDEPENDENCE
Incorporated by reference to the portion entitled “Related Person Transactions and Procedures” of the section entitled “Director and
Executive Officer Stock Ownership”; and the portion entitled “Director Independence” of the section entitled “Corporate Governance”
of the registrant’s 2022 Proxy Statement.
ITEM 14. PRINCIPAL ACCOUNTING FEES AND SERVICES
Incorporated by reference to the portion entitled “Audit Committee” of the section entitled “Corporate Governance” and the section
entitled “Ratification of Independent Auditors” of the registrant’s 2022 Proxy Statement.
PART IV
ITEM 15. EXHIBITS, FINANCIAL STATEMENT SCHEDULES
(a)
(1) and (2) Financial Statements:
See Table of Contents of the Financial Section of this report.
(b) (3) Exhibits:
See Index to Exhibits of this report.
ITEM 16. FORM 10-K SUMMARY
None.
34
FINANCIAL SECTION
TABLE OF CONTENTS
Business Profile
Financial Information
Frequently Used Terms
Management’s Discussion and Analysis of Financial Condition and Results of Operations
Forward-Looking Statements
Overview
Business Environment
Business Results
Liquidity and Capital Resources
Capital and Exploration Expenditures
Taxes
Environmental Matters
Market Risks
Critical Accounting Estimates
Management’s Report on Internal Control Over Financial Reporting
Report of Independent Registered Public Accounting Firm
Consolidated Financial Statements
Statement of Income
Statement of Comprehensive Income
Balance Sheet
Statement of Cash Flows
Statement of Changes in Equity
Notes to Consolidated Financial Statements
1. Summary of Accounting Policies
2. Restructuring Activities
3. Miscellaneous Financial Information
4. Other Comprehensive Income Information
5. Cash Flow Information
6. Additional Working Capital Information
7. Equity Company Information
8. Investments, Advances and Long-Term Receivables
9. Property, Plant and Equipment and Asset Retirement Obligations
10. Accounting for Suspended Exploratory Well Costs
11. Leases
12. Earnings Per Share
13. Financial Instruments and Derivatives
14. Long-Term Debt
15. Incentive Program
16. Litigation and Other Contingencies
17. Pension and Other Postretirement Benefits
18. Disclosures about Segments and Related Information
19. Income and Other Taxes
Supplemental Information on Oil and Gas Exploration and Production Activities
35
36
37
38
42
42
43
46
56
59
60
61
61
63
67
68
70
71
72
73
74
75
79
80
81
82
82
83
85
85
87
89
91
92
93
95
96
97
103
106
110
BUSINESS PROFILE
Financial
Upstream
United States
Non-U.S.
Total
Downstream
United States
Non-U.S.
Total
Chemical
United States
Non-U.S.
Total
Corporate and Financing
Earnings (Loss) After
Income Taxes
Average Capital
Employed
Return on
Average Capital
Employed
Capital and
Exploration
Expenditures
2021
2020
2021
2020
2021
2020
2021
2020
(millions of dollars)
(percent)
(millions of dollars)
3,663
12,112
15,775
(19,385) 55,305
(645) 101,645
(20,030) 156,950
65,780
107,506
173,286
1,314
791
2,105
(852) 12,292
(225) 18,929
(1,077) 31,221
11,472
18,682
30,154
4,502
3,294
7,796
(2,636)
1,277
686
1,963
(3,296)
15,714
17,281
32,995
1,724
(22,440) 222,890
14,436
17,600
32,036
(1,445)
234,031
6.6
11.9
10.1
10.7
4.2
6.7
28.6
19.1
23.6
—
10.9
(29.5)
(0.6)
(11.6)
4,018
8,236
12,254
6,817
7,614
14,431
(7.4)
(1.2)
(3.6)
1,000
1,095
2,095
2,344
1,877
4,221
8.8
3.9
6.1
—
1,367
876
2,243
3
16,595
(9.3)
2,002
714
2,716
6
21,374
Total
23,040
See Frequently Used Terms for a definition and calculation of capital employed and return on average capital employed.
Operating
Net liquids production
United States
Non-U.S.
Total
2021
2020
(thousands of barrels daily)
721
1,568
2,289
685
1,664
2,349
Refinery throughput
United States
Non-U.S.
Total
2021
2020
(thousands of barrels daily)
1,623
2,322
3,945
1,549
2,224
3,773
(millions of cubic feet daily)
(thousands of barrels daily)
Natural gas production available for sale
United States
Non-U.S.
Total
2,746
5,791
8,537
2,691
5,780
8,471
Petroleum product sales (2)
United States
Non-U.S.
Total
Oil-equivalent production (1)
(thousands of oil-equivalent barrels daily)
3,761
3,712
Chemical prime product sales (2) (3)
United States
Non-U.S.
Total
2,257
2,905
5,162
2,154
2,741
4,895
(thousands of metric tons)
9,724
16,608
26,332
9,010
16,439
25,449
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
(2) Petroleum product and chemical prime product sales data reported net of purchases/sales contracts with the same counterparty.
(3) Prime product sales are total product sales including ExxonMobil’s share of equity company volumes and finished-product
transfers to the Downstream.
36
FINANCIAL INFORMATION
Sales and other operating revenue
Earnings (loss)
Upstream
Downstream
Chemical
Corporate and Financing
Net income (loss) attributable to ExxonMobil
Earnings (loss) per common share (dollars)
Earnings (loss) per common share – assuming dilution (dollars)
2021
2020
2019
(millions of dollars, except where stated otherwise)
276,692
178,574
255,583
15,775
(20,030)
14,442
2,105
7,796
(1,077)
2,323
1,963
592
(2,636)
(3,296)
(3,017)
23,040
(22,440)
14,340
5.39
5.39
(5.25)
(5.25)
3.36
3.36
Earnings (loss) to average ExxonMobil share of equity (percent)
14.1
(12.9)
7.5
Working capital
Ratio of current assets to current liabilities (times)
Additions to property, plant and equipment
Property, plant and equipment, less allowances
Total assets
Exploration expenses, including dry holes
Research and development costs
Long-term debt
Total debt
Debt to capital (percent)
Net debt to capital (percent) (1)
ExxonMobil share of equity at year-end
ExxonMobil share of equity per common share (dollars)
Weighted average number of common shares
outstanding (millions)
2,511
1.04
(11,470)
0.80
(13,937)
0.78
12,541
216,552
338,923
17,342
227,553
332,750
24,904
253,018
362,597
1,054
843
1,285
1,016
1,269
1,214
43,428
47,704
21.4
18.9
47,182
67,640
29.2
27.8
26,342
46,920
19.1
18.1
168,577
39.77
4,275
157,150
37.12
4,271
191,650
45.26
4,270
Number of regular employees at year-end (thousands) (2)
63.0
72.0
74.9
(1) Debt net of cash.
(2) Regular employees are defined as active executive, management, professional, technical and wage employees who work full time
or part time for the Corporation and are covered by the Corporation’s benefit plans and programs.
37
FREQUENTLY USED TERMS
Listed below are definitions of several of ExxonMobil’s key business and financial performance measures. These definitions are
provided to facilitate understanding of the terms and their calculation.
Cash Flow From Operations and Asset Sales
Cash flow from operations and asset sales is the sum of the net cash provided by operating activities and proceeds associated with
sales of subsidiaries, property, plant and equipment, and sales and returns of investments from the Consolidated Statement of Cash
Flows. This cash flow reflects the total sources of cash both from operating the Corporation’s assets and from the divesting of assets.
The Corporation employs a long-standing and regular disciplined review process to ensure that assets are contributing to the
Corporation’s strategic objectives. Assets are divested when they are no longer meeting these objectives or are worth considerably
more to others. Because of the regular nature of this activity, we believe it is useful for investors to consider proceeds associated with
asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and
financing activities, including shareholder distributions.
Cash Flow From Operations and Asset Sales
Net cash provided by operating activities
Proceeds associated with sales of subsidiaries, property, plant and equipment, and sales and
returns of investments
Cash flow from operations and asset sales
2021
2020
2019
(millions of dollars)
48,129
14,668
29,716
3,176
51,305
999
15,667
3,692
33,408
Capital Employed
Capital employed is a measure of net investment. When viewed from the perspective of how the capital is used by the businesses, it
includes ExxonMobil’s net share of property, plant and equipment and other assets less liabilities, excluding both short-term and long-
term debt. When viewed from the perspective of the sources of capital employed in total for the Corporation, it includes ExxonMobil’s
share of total debt and equity. Both of these views include ExxonMobil’s share of amounts applicable to equity companies, which the
Corporation believes should be included to provide a more comprehensive measure of capital employed.
Capital Employed
Business uses: asset and liability perspective
Total assets
Less liabilities and noncontrolling interests share of assets and liabilities
Total current liabilities excluding notes and loans payable
Total long-term liabilities excluding long-term debt
Noncontrolling interests share of assets and liabilities
Add ExxonMobil share of debt-financed equity company net assets
Total capital employed
Total corporate sources: debt and equity perspective
Notes and loans payable
Long-term debt
ExxonMobil share of equity
Less noncontrolling interests share of total debt
Add ExxonMobil share of equity company debt
Total capital employed
2021
2020
2019
(millions of dollars)
338,923
332,750
362,597
(52,367)
(63,169)
(8,746)
4,001
218,642
(35,905)
(65,075)
(8,773)
4,140
227,137
(43,411)
(73,328)
(8,839)
3,906
240,925
4,276
43,428
168,577
20,458
47,182
157,150
(1,640)
4,001
218,642
(1,793)
4,140
227,137
20,578
26,342
191,650
(1,551)
3,906
240,925
38
FREQUENTLY USED TERMS
Return on Average Capital Employed
Return on average capital employed (ROCE) is a performance measure ratio. From the perspective of the business segments, ROCE is
annual business segment earnings divided by average business segment capital employed (average of beginning and end-of-year
amounts). These segment earnings include ExxonMobil’s share of segment earnings of equity companies, consistent with our capital
employed definition, and exclude the cost of financing. The Corporation’s total ROCE is net income attributable to ExxonMobil
excluding the after-tax cost of financing, divided by total corporate average capital employed. The Corporation has consistently
applied its ROCE definition for many years and views it as one of the best measures of historical capital productivity in our capital-
intensive, long-term industry. Additional measures, which are more cash flow based, are used to make investment decisions.
Return on Average Capital Employed
Net income (loss) attributable to ExxonMobil
Financing costs (after-tax)
Gross third-party debt
ExxonMobil share of equity companies
All other financing costs – net
Total financing costs
Earnings (loss) excluding financing costs
2021
2020
2019
(millions of dollars)
23,040
(22,440)
14,340
(1,196)
(1,272)
(1,075)
(170)
(182)
(207)
11
(1,355)
24,395
666
(788)
(21,652)
141
(1,141)
15,481
Average capital employed
222,890
234,031
236,603
Return on average capital employed – corporate total
10.9%
(9.3)%
6.5%
Structural Cost Savings
Structural cost savings describe decreases in the below expenses as a result of operational efficiencies, workforce reductions and other
cost saving measures that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative annual
structural cost savings totaled $4.9 billion, of which $1.9 billion was achieved in 2021. The total change between periods in expenses
below will reflect both structural cost savings and other changes in spend, including market factors, such as energy costs, inflation, and
foreign exchange impacts, as well as changes in activity levels and costs associated with new operations. Structural cost savings are
stewarded internally to support management’s oversight of spending over time. This measure is useful for investors to understand the
Corporation’s efforts to optimize spending through disciplined expense management.
Consolidated Statement of Income Line Items Targeted for Structural Cost Savings
2021
2020
2019
Production and manufacturing expenses
Selling, general and administrative expenses
Exploration expenses, including dry holes
Total
(millions of dollars)
36,035
9,574
1,054
46,663
30,431
10,168
1,285
41,884
36,826
11,398
1,269
49,493
39
FREQUENTLY USED TERMS
Earnings (Loss) excluding Identified Items
Earnings (loss) excluding Identified Items, are earnings (loss) excluding individually significant non-operational events with an
absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings (loss) impact of an Identified Item for
an individual segment in a given quarter may be less than $250 million when the item impacts several segments or several periods.
Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing
significant non-operational events from business results. The Corporation believes this view provides investors increased transparency
into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Earnings
(loss) excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income (loss) attributable to
ExxonMobil as prepared in accordance with U.S. GAAP.
Upstream
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
2021
2020
2019
(millions of dollars)
Earnings (loss) (U.S. GAAP)
3,663 12,112 15,775
(19,385)
(645) (20,030)
536 13,906 14,442
Impairments
(263)
(489)
(752) (17,092) (2,244) (19,336)
—
—
—
Gain/(loss) on sale of assets
Inventory valuation - lower of cost or
market
Tax-related items
Contractual provisions
Identified Items
—
459
459
—
—
—
— 3,679 3,679
—
—
—
—
—
—
—
(250)
(250)
—
(61)
(61)
—
—
(297)
(297)
—
—
—
—
—
—
—
755
—
755
—
(263)
(280)
(543) (17,092) (2,602) (19,694)
— 4,434 4,434
Earnings (loss) excluding Identified Items
3,926 12,392 16,318
(2,293) 1,957
(336)
536 9,472 10,008
Downstream
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
2021
2020
2019
(millions of dollars)
Earnings (loss) (U.S. GAAP)
1,314
791 2,105
(852)
(225) (1,077) 1,717
606 2,323
Impairments
Gain/(loss) on sale of assets
Tax-related items
Identified Items
—
4
—
4
—
—
—
—
—
4
—
4
(4)
—
—
(4)
(593)
(597)
—
—
(262)
(262)
(855)
(859)
—
—
—
—
—
—
(9)
(9)
—
—
(9)
(9)
Earnings (loss) excluding Identified Items
1,310
791 2,101
(848)
630
(218) 1,717
615 2,332
Chemical
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
2021
2020
2019
Earnings (loss) (U.S. GAAP)
Impairments
Gain/(loss) on sale of assets
Tax-related items
Identified Items
4,502 3,294 7,796
—
630
—
630
—
494
—
494
—
136
—
136
(millions of dollars)
1,277
(90)
—
—
(90)
686 1,963
(2)
—
(22)
(24)
(92)
—
(22)
(114)
Earnings (loss) excluding Identified Items
4,008 3,158 7,166
1,367
710 2,077
40
206
—
—
—
—
206
386
—
—
2
2
384
592
—
—
2
2
590
FREQUENTLY USED TERMS
Corporate and Financing
Earnings (loss) (U.S. GAAP)
Impairments
Gain/(loss) on sale of assets
Tax-related items
Severance charges
Identified Items
2021
2020
2019
(millions of dollars)
(2,636)
(3,296)
(3,017)
—
(12)
—
(52)
(64)
(35)
—
—
(326)
(361)
—
(24)
332
—
308
Earnings (loss) excluding Identified Items
(2,572)
(2,935)
(3,325)
Corporate Total
Net income (loss) attributable to ExxonMobil (U.S. GAAP)
Impairments
Gain/(loss) on sale of assets
Inventory valuation - lower of cost or market
Tax-related items
Severance charges
Contractual provisions
Identified Items
Earnings (loss) excluding Identified Items
2021
2020
2019
(millions of dollars)
23,040
(752)
1,081
—
—
(52)
(250)
27
23,013
(22,440)
(20,060)
—
(61)
(581)
(326)
—
(21,028)
(1,412)
14,340
—
3,655
—
1,080
—
—
4,735
9,605
References in Frequently Used Terms and Management's Discussion & Analysis to total corporate earnings (loss) mean net income
(loss) attributable to ExxonMobil from the Consolidated Statement of Income. Unless otherwise indicated, references to earnings
(loss), Upstream, Downstream, Chemical and Corporate and Financing earnings (loss), and earnings (loss) per share are
ExxonMobil’s share after excluding amounts attributable to noncontrolling interests.
41
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
FORWARD-LOOKING STATEMENTS
Outlooks, projections, goals, targets, descriptions of strategic plans and objectives, and other statements of future events or conditions
in this release are forward-looking statements. Similarly, emission-reduction roadmaps are dependent on future market factors, such as
continued technological progress and policy support, and also represent forward-looking statements. Actual future results, including
future energy demand and mix; financial and operating performance; realized price and margins; dividends and shareholder returns,
including the timing and amounts of share repurchases; volume growth; project plans, timing, costs, and capacities; capital
expenditures, including lower-emissions and environmental expenditures; cost reductions and structural cost savings; integration
benefits; emission intensity and absolute emissions reductions; achievement of ambitions to reach Scope 1 and Scope 2 net-zero from
operated assets by 2050, to reduce methane emissions and flaring, or to complete major asset emission reduction roadmaps;
implementation and outcomes of carbon capture and storage projects and infrastructure, renewable fuel projects, blue hydrogen
projects, and other technology efforts; the impact of new technologies on society and industry; capital expenditures and mix;
investment returns; accounting and financial reporting effects resulting from market or regulatory developments and ExxonMobil’s
responsive actions, including potential impairment charges; and the outcome of litigation and tax contingencies, could differ materially
due to a number of factors. These include global or regional changes in the supply and demand for oil, natural gas, petrochemicals, and
feedstocks and other market or economic conditions that impact demand, prices and differentials; policy and consumer support for
lower-emission products and technologies in different jurisdictions; the impact of company actions to protect the health and safety of
employees, vendors, customers, and communities; actions of competitors and commercial counterparties; the ability to access short-
and long-term debt markets on a timely and affordable basis; the severity, length and ultimate impact of COVID-19 variants and
government responses on people and economies; reservoir performance; the outcome of exploration projects and timely completion of
development and construction projects; regulatory actions targeting public companies in the oil and gas industry; changes in local,
national, or international law, taxes, regulation or policies affecting our business, including environmental regulations and timely
granting of governmental permits; war, trade agreements and patterns, shipping blockades or harassment, and other political or
security disturbances; the pace of regional and global economic recovery from the pandemic and the occurrence and severity of future
outbreaks; opportunities for and regulatory approval of potential investments or divestments; the actions of competitors; the capture of
efficiencies within and between business lines and the ability to maintain near-term cost reductions as ongoing efficiencies while
maintaining future competitive positioning; unforeseen technical or operating difficulties; the development and competitiveness of
alternative energy and emission reduction technologies; the results of research programs; the ability to bring new technologies to
commercial scale on a cost-competitive basis; general economic conditions including the occurrence and duration of economic
recessions; and other factors discussed under Item 1A. Risk Factors.
Energy demand models are forward-looking by nature and aim to replicate system dynamics of the global energy system, requiring
simplifications. The reference to any scenario in this report, including any potential net-zero scenarios, does not imply ExxonMobil
views any particular scenario as likely to occur. In addition, energy demand scenarios require assumptions on a variety of parameters.
As such, the outcome of any given scenario using an energy demand model comes with a high degree of uncertainty. For example, the
IEA describes its NZE scenario as extremely challenging, requiring unprecedented innovation, unprecedented international
cooperation and sustained support and participation from consumers. Third-party scenarios discussed in this report reflect the
modeling assumptions and outputs of their respective authors, not ExxonMobil, and their use by ExxonMobil is not an endorsement by
ExxonMobil of their underlying assumptions, likelihood or probability. Investment decisions are made on the basis of ExxonMobil’s
separate planning process, but may be secondarily tested for robustness or resiliency against different assumptions, including against
various scenarios. Any use of the modeling of a third-party organization within this report does not constitute or imply an endorsement
by ExxonMobil of any or all of the positions or activities of such organization.
OVERVIEW
The following discussion and analysis of ExxonMobil’s financial results, as well as the accompanying financial statements and related
notes to consolidated financial statements to which they refer, are the responsibility of the management of Exxon Mobil Corporation.
The Corporation’s accounting and financial reporting fairly reflect its integrated business model involving exploration for, and
production of, crude oil and natural gas, manufacture, trade, transport and sale of crude oil, natural gas, petroleum products,
petrochemicals and a wide variety of specialty products; and pursuit of lower-emission business opportunities including carbon
capture and storage, hydrogen, and biofuels. ExxonMobil's operating segments are Upstream, Downstream, and Chemical. Where
applicable ExxonMobil voluntarily discloses additional U.S., Non-U.S. and regional splits to help investors better understand the
company's operations.
In January 2022, the Corporation announced that effective April 2022 it is streamlining its business structure by combining the
Chemical and Downstream businesses. The company will be organized along three businesses – Upstream, Product Solutions, and
Low Carbon Solutions, aligning along market-focused value chains. Product Solutions will consist of Energy Products, Specialty
Products and Chemical Products. Low Carbon Solutions will continue to be included in Corporate and Financing. The businesses will
be supported by a combined technology organization, and other centralized service-delivery groups, building on the establishment of a
worldwide major projects organization in 2019.
42
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ExxonMobil, with its resource base, financial strength, disciplined investment approach and technology portfolio, is well-positioned to
participate in substantial investments to develop new energy supplies. The company’s integrated business model, with significant
investments in Upstream, Downstream and Chemical segments and Low Carbon Solutions business, generally reduces the
Corporation’s risk from changes in commodity prices. While commodity prices depend on supply and demand and may be volatile on
a short-term basis, ExxonMobil’s investment decisions are grounded on fundamentals reflected in our long-term business outlook, and
use a disciplined approach in selecting and pursuing the most attractive investment opportunities. The corporate plan is a fundamental
annual management process that is the basis for setting operating and capital objectives in addition to providing the economic
assumptions used for investment evaluation purposes. The foundation for the assumptions supporting the corporate plan is the Energy
Outlook and corporate plan volume projections are based on individual field production profiles, which are also updated at least
annually. Price ranges for crude oil, natural gas, including price differentials, refinery and chemical margins, volumes, development
and operating costs, including greenhouse gas emission prices, and foreign currency exchange rates are based on corporate plan
assumptions developed annually by major region and are utilized for investment evaluation purposes. Major investment opportunities
are evaluated over a range of potential market conditions. Once major investments are made, a reappraisal process is completed to
ensure relevant lessons are learned and improvements are incorporated into future projects.
BUSINESS ENVIRONMENT
Long-Term Business Outlook
ExxonMobil’s business planning is underpinned by a deep understanding of long-term energy fundamentals. These fundamentals
include energy supply and demand trends, the scale and variety of energy needs worldwide; capability, practicality and affordability of
energy alternatives including low-carbon solutions; greenhouse gas emission-reduction technologies; and supportive government
policies. The company’s Energy Outlook (Outlook) considers these fundamentals to form the basis for the company’s long-term
business planning, investment decisions, and research programs. The Outlook reflects the company’s view of global energy demand
and supply through 2050. It is a projection based on current trends in technology, government policies, consumer preferences,
geopolitics, and economic development. In addition, ExxonMobil considers a range of scenarios - including remote scenarios - to help
inform perspective of the future and enhance strategic thinking over time. Included in the range of these scenarios are the
Intergovernmental Panel on Climate Change Lower 2°C and the International Energy Agency's Net Zero Emissions (IEA NZE) by
2050 scenario. To effectively evaluate the pace of change, ExxonMobil uses many scenarios to help identify signposts that provide
leading indicators of future developments and allow for timely adjustments to the Outlook. The IEA describes the IEA NZE as
extremely challenging, requiring all stakeholders – governments, businesses, investors and citizens – to take action this year and every
year after so that the goal does not slip out of reach. The scenario assumes unprecedented and sustained energy efficiency gains,
innovation and technology transfer, lower-emission investments, and globally coordinated greenhouse gas reduction policy. The IEA
acknowledges that society is not on the IEA NZE pathway.
By 2050, the world’s population is projected at around 9.7 billion people, or about 2 billion more than in 2019. Coincident with this
population increase, the Corporation expects worldwide economic growth to average close to 2.5 percent per year, with economic
output growing by around 125 percent by 2050 compared to 2019. As economies and populations grow, and as living standards
improve for billions of people, the need for energy is expected to continue to rise. Even with significant efficiency gains, global energy
demand is projected to rise by almost 15 percent from 2019 to 2050. This increase in energy demand is expected to be driven by
developing countries (i.e., those that are not member nations of the Organisation for Economic Co-operation and Development
(OECD)).
As expanding prosperity drives global energy demand higher, increasing use of energy-efficient technologies and practices as well as
lower-emission products will continue to help significantly reduce energy consumption and emissions per unit of economic output
over time. Substantial efficiency gains are likely in all key aspects of the world’s economy through 2050, affecting energy
requirements for power generation, transportation, industrial applications, and residential and commercial needs.
Under our Outlook, global electricity demand is expected to increase almost 75 percent from 2019 to 2050, with developing countries
likely to account for about 80 percent of the increase. Consistent with this projection, power generation is expected to remain the
largest and fastest growing major segment of global primary energy demand, supported by a wide variety of energy sources. The share
of coal-fired generation is expected to decline substantially and approach 15 percent of the world’s electricity in 2050, versus nearly
35 percent in 2019, in part as a result of policies to improve air quality as well as reduce greenhouse gas emissions to address risks
related to climate change. From 2019 to 2050, the amount of electricity supplied using natural gas, nuclear power, and renewables is
expected to more than double, accounting for the entire growth in electricity supplies and offsetting the reduction of coal. Electricity
from wind and solar is expected to increase more than 600 percent, helping total renewables (including other sources, e.g.
hydropower) to account for about 80 percent of the increase in electricity supplies worldwide through 2050. Total renewables are
expected to reach about 50 percent of global electricity supplies by 2050. Natural gas and nuclear are also expected to increase shares
over the period to 2050, reaching more than 25 percent and about 10 percent of global electricity supplies, respectively, by 2050.
Supplies of electricity by energy type will reflect significant differences across regions reflecting a wide range of factors including the
cost and availability of various energy supplies and policy developments.
43
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Under our Outlook, energy for transportation - including cars, trucks, ships, trains and airplanes - is expected to increase by almost 25
percent from 2019 to 2050. Transportation energy demand is expected to account for over 40 percent of the growth in liquid fuels
demand worldwide over this period. Light-duty vehicle demand for liquid fuels is projected to peak by around 2025 and then decline
to levels seen in the early-2000s by 2050 as the impact of better fuel economy and significant growth in electric cars, led by China,
Europe, and the United States, work to offset growth in the worldwide car fleet of about 75 percent. By 2050, light-duty vehicles are
expected to account for around 15 percent of global liquid fuels demand. During the same time period, nearly all the world’s
commercial transportation fleets are expected to continue to run on liquid fuels, including biofuels, which are widely available and
offer practical advantages in providing a large quantity of energy in small volumes.
Liquid fuels provide the largest share of global energy supplies today reflecting broad-based availability, affordability, ease of
transportation, and fitness as a practical solution to meet a wide variety of needs. By 2050, global demand for liquid fuels is projected
to grow to approximately 114 million barrels of oil equivalent per day, an increase of about 14 percent from 2019. The non-OECD
share of global liquid fuels demand is expected to increase to nearly 70 percent by 2050, as liquid fuels demand in the OECD is
expected to decline by more than 20 percent. Much of the global liquid fuels demand today is met by crude production from traditional
conventional sources; these supplies will remain important, and significant development activity is expected to offset much of the
natural declines from these fields. At the same time, a variety of emerging supply sources - including tight oil, deepwater, oil sands,
natural gas liquids and biofuels - are expected to grow to help meet rising demand. The world’s resource base is sufficient to meet
projected demand through 2050 as technology advances continue to expand the availability of economic and lower-carbon supply
options. However, timely investments will remain critical to meeting global needs with reliable and affordable supplies.
Natural gas is a lower-emission, versatile and practical fuel for a wide variety of applications, and it is expected to grow the most of
any primary energy type from 2019 to 2050, meeting about 55 percent of global energy demand growth. Global natural gas demand is
expected to rise nearly 35 percent from 2019 to 2050, with more than half of that increase coming from the Asia Pacific region.
Significant growth in supplies of unconventional gas - the natural gas found in shale and other tight rock formations - will help meet
these needs. In total, about 50 percent of the growth in natural gas supplies is expected to be from unconventional sources. At the same
time, conventionally-produced natural gas is likely to remain the cornerstone of global supply, meeting more than two-thirds of
worldwide demand in 2050. Liquefied natural gas (LNG) trade will expand significantly, meeting about 40 percent of the increase in
global demand growth, with much of this supply expected to help meet rising demand in Asia Pacific.
The world’s energy mix is highly diverse and will remain so through 2050. Oil is expected to remain the largest source of energy with
its share remaining close to 30 percent in 2050. Coal is currently the second largest source of energy, but it is expected to lose that
position to natural gas in the next few years. The share of natural gas is expected to reach more than 25 percent by 2050, while the
share of coal falls to about half that of natural gas. Nuclear power is projected to grow significantly, as many nations are likely to
expand nuclear capacity to address rising electricity needs as well as energy security and environmental issues. Total renewable
energy is expected to exceed 20 percent of global energy by 2050, with biomass, hydro and geothermal contributing a combined share
of more than 10 percent. Total energy supplied from wind, solar and biofuels is expected to increase rapidly, growing over 420 percent
from 2019 to 2050, when they are projected to be about 10 percent of the world energy mix.
To meet this projected demand under our Outlook, the Corporation anticipates that the world’s available oil and gas resource base will
grow not only from new discoveries, but also from increases in previously discovered fields. Technology will underpin these
increases. The investments to develop and supply resources to meet global demand through 2050 will be significant. This reflects a
fundamental aspect of the oil and natural gas business as the International Energy Agency (IEA) describes in its World Energy
Outlook 2021.
International accords and underlying regional and national regulations covering greenhouse gas emissions continue to evolve with
uncertain timing and outcome, making it difficult to predict their business impact. For many years, the Corporation has taken into
account policies established to reduce energy-related greenhouse gas emissions in its long-term Energy Outlook. The climate accord
reached at the Conference of the Parties (COP 21) in Paris set many new goals, and many related policies are still emerging. Our
Energy Outlook reflects an environment with increasingly stringent climate policies and is consistent with the global aggregation of
Nationally Determined Contributions (NDCs), as available at the end of 2020, which were submitted by signatories to the United
Nations Framework Convention on Climate Change (UNFCCC) 2015 Paris Agreement. Our Energy Outlook seeks to identify
potential impacts of climate-related policies, which often target specific sectors. It estimates potential impacts of these policies on
consumer energy demand by using various assumptions and tools - including, depending on the sector, and, as applicable, use of a
proxy cost of carbon or assessment of targeted policies (e.g. automotive fuel economy standards). For purposes of the Energy Outlook,
a proxy cost on energy-related CO2 emissions is assumed to reach about $100 per metric ton in 2050 in OECD nations. China and
other leading non-OECD nations are expected to trail OECD policy initiatives. Nevertheless, as people and nations look for ways to
reduce risks of global climate change, they will continue to need practical solutions that do not jeopardize the affordability or
reliability of the energy they need. The Corporation continues to monitor the updates to the NDCs that nations provided around
COP 26 in Glasgow in November 2021 as well as other policy developments in light of net-zero ambitions recently formulated by
some nations.
44
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
The information provided in the Outlook includes ExxonMobil’s internal estimates and projections based upon internal data and
analyses as well as publicly available information from external sources including the International Energy Agency.
Leading the Drive to Net Zero
The company plans to play a leading role in the energy transition by leveraging its core capabilities to meet society’s needs for
products essential for modern life, while addressing the challenge of climate change.
The Corporation announced its ambition to achieve net-zero emissions from its operated assets by 2050 (Scope 1 and 2 greenhouse
gas emissions) and is taking a comprehensive approach centered on developing detailed emission-reduction roadmaps for major
operated assets. The company’s roadmap approach identifies greenhouse gas emission-reduction opportunities and the investment and
future policy needs required to achieve net-zero. The roadmaps are tailored to account for facility configuration and maintenance
schedules, and they will be updated as technologies and policies evolve. Net-zero roadmaps for major assets, covering about 90% of
the company’s greenhouse gas emissions, are scheduled to be completed by year-end 2022, and the remainder in 2023.
Our strategy uses our advantages in scale, integration, technology and people to build globally competitive businesses that lead
industry in earnings and cash flow growth across a broad range of scenarios. The company’s plans to reduce greenhouse gas emissions
through 2030 compared to 2016 levels support its net-zero ambition. The plans are expected to result in a 20-30% reduction in
corporate-wide greenhouse gas intensity, including reductions of 40-50% in upstream intensity, 70-80% in methane intensity and
60-70% in flaring intensity. These plans include actions that are expected to reduce absolute corporate-wide greenhouse gas emissions
by approximately 20%, including an estimated 70% reduction in methane emissions, 60% reduction in flaring emissions and 30%
reduction in upstream emissions.
ExxonMobil established its Low Carbon Solutions business in early 2021, leveraging its unique combination of capabilities such as
geophysics expertise and complex project management, to establish a new business in carbon capture and storage, hydrogen, and
biofuels to accelerate emission reductions for customers and in its existing businesses.
The Corporation plans to invest in initiatives to lower greenhouse gas emissions. A significant focus is on scaling up carbon capture
and storage, hydrogen, and biofuels. Stronger policy further accelerates development and deployment of lower-emission technologies,
and would provide ExxonMobil additional investment opportunities to reduce greenhouse gas emissions. The company's robust
research and development process, continued evaluation of emerging technologies, and global collaborations will be key to identifying
and growing lower-emission opportunities. During the start-up phase, the Low Carbon Solutions business will be reflected in
Corporate and Financing.
Recent Business Environment
In early 2020, the balance of supply and demand for petroleum and petrochemical products experienced two significant disruptive
effects. On the demand side, the COVID-19 pandemic spread rapidly through most areas of the world resulting in substantial
reductions in consumer and business activity and significantly reduced demand for crude oil, natural gas, and petroleum products. This
reduction in demand coincided with announcements of increased production in certain key oil-producing countries which led to
increases in inventory levels and sharp declines in prices for crude oil, natural gas, and petroleum products.
Demand for petroleum and petrochemical products has continued to recover through 2021, with the Corporation's financial results
benefiting from stronger prices and margins, notably prices for crude oil and natural gas as well as Chemical product margins. The rate
and pace of recovery, however, has varied across geographies and business lines, with Downstream margins only reaching the lower
end of the 10-year range late in 2021 and jet demand continuing to lag. The Corporation continues to closely monitor industry and
economic conditions amid this uneven global recovery from the COVID-19 pandemic which has brought unprecedented uncertainties
to near-term economic outlooks.
The general rate of inflation across major countries of operation experienced a brief decline in the initial stage of the COVID-19
pandemic. However inflation rates increased in 2021 across major economies, with some regions experiencing multi-decade highs,
largely reflecting overall imbalances between supply and demand recoveries from the pandemic. The underlying factors include, but
are not limited to, global supply chain disruptions, shipping bottlenecks, labor market constraints, and side effects from monetary and
fiscal expansions. The global economic recovery remains uneven, with uncertainties remaining. Prices for services and materials
continue to evolve in response to fast-changing commodity markets, industry activities, as well as government policies, impacting
operating and capital costs. The Corporation closely monitors market trends and works to mitigate cost impacts in all price
environments through its economies of scale in global procurement, efficient project management practices, and general productivity
improvements.
Organizational changes implemented over the past several years enabled the Corporation to realize nearly $5 billion of structural cost
savings1 versus 2019, leveraging increased operational efficiencies and reduced overhead costs. Included in these savings is the
completion of the workforce reduction programs, announced in late 2020 and early 2021, which are estimated to generate savings of
approximately $2 billion per year compared to 2019 from lower employee and contractor costs. The company continues to take actions
to streamline its business structure to improve effectiveness and reduce costs. The changes more fully leverage global functional
capabilities, improve line of sight to markets, and enhance resource allocation to the highest corporate priorities.
(1) Refer to Frequently Used Terms for definition of structural cost savings.
45
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
BUSINESS RESULTS
Upstream
ExxonMobil continues to sustain a diverse growth portfolio of exploration and development opportunities, which enables the
Corporation to be selective, maximizing shareholder value and mitigating political and technical risks. ExxonMobil’s fundamental
strategies guide our global Upstream business, including capturing material and accretive opportunities to continually high-grade the
resource portfolio, selectively developing attractive oil and natural gas resources, developing and applying high-impact technologies,
and pursuing productivity and efficiency gains as well as a reduction in greenhouse gas emissions. These strategies are underpinned by
a relentless focus on operational excellence, development of our employees, and investment in the communities within which we
operate.
As future development projects and drilling activities bring new production online, the Corporation expects a shift in the geographic
mix and in the type of opportunities from which volumes are produced. Based on current investment plans, the proportion of oil-
equivalent production from the Americas is generally expected to increase over the next several years. About half of the Corporation's
global production comes from unconventional, deepwater and LNG resources. This proportion is generally expected to grow over the
next few years.
The Upstream capital program continues to prioritize low cost-of-supply opportunities. In addition to continued development of
Guyana, Brazil, and the Permian Basin, ExxonMobil has a strong pipeline of development projects. Most notable are our LNG
developments in Mozambique, Papua New Guinea, and the Golden Pass LNG facility.
The Corporation anticipates several projects will come online over the next few years providing additional production capacity.
However, actual volumes will vary from year to year due to the timing of individual project start-ups; operational outages; reservoir
performance; performance of enhanced oil recovery projects; regulatory changes; the impact of fiscal and commercial terms; asset
sales; weather events; price effects on production sharing contracts; changes in the amount and timing of capital investments that may
vary depending on the oil and gas price environment; international trade patterns and relations; and other factors described in Item 1A.
Risk Factors.
ExxonMobil believes prices over the long term will continue to be driven by market supply and demand, with the demand side largely
being a function of general economic activities, alternative energy sources, levels of prosperity, technology advances, consumer
preference and government policies. On the supply side, prices may be significantly impacted by political events, the actions of OPEC
and other large government resource owners, and other factors. To manage the risks associated with price, ExxonMobil tests the
resiliency of its annual plans and major investments across a range of price scenarios.
Key Recent Events
Significant progress was made on key new developments in Guyana, Brazil, the Permian Basin, and Mozambique during 2021.
Guyana: Exploration success continued with additional discoveries increasing the estimated recoverable resource on the Stabroek
block. The Liza Unity floating production, storage and offloading vessel arrived in Guyanese waters in late 2021 and started
production in February 2022. In Payara, the third project, development drilling activities started in late 2021 and it remains on
schedule for 2024 start-up. Yellowtail is the fourth and largest world-class development project and is expected to achieve first oil in
2025, following issuance of the production license.
Permian: Production volumes averaged about 460 thousand oil-equivalent barrels per day (koebd) in 2021, nearly 100 koebd year-on-
year production increase which exceeded expectations. The Corporation was successful in increasing drilling performance and
continuing to improve capital efficiency. In December, ExxonMobil announced plans to achieve net-zero greenhouse gas emissions
(Scope 1 and 2) by 2030 from our unconventional operations in the Permian Basin.
Brazil: ExxonMobil announced its Final Investment Decision for the Bacalhau Phase 1 development in June 2021 with start-up
planned for 2024.
Mozambique: The Area 4 Coral South Floating LNG (FLNG) development continues as planned, targeting start-up in 2022, making
Mozambique an LNG exporter. The Coral Sul FLNG vessel began tow to field in November 2021.
46
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Upstream Financial Results
Earnings (loss) (U.S. GAAP)
United States
Non-U.S.
Total
Identified Items (1)
United States
Non-U.S.
Total
Earnings (loss) excluding Identified Items (1)
United States
Non-U.S.
Total
2021 Upstream Earnings Factor Analysis
(millions of dollars)
2021
2020
2019
(millions of dollars)
3,663
(19,385)
536
12,112
(645) 13,906
15,775
(20,030) 14,442
(263) (17,092)
(280)
(2,602)
(543) (19,694)
—
4,434
4,434
3,926
(2,293)
536
12,392
16,318
9,472
1,957
(336) 10,008
+19,150
15,775
+14,960
+2,040
-340
(20,030)
2020
Earnings
Price
Volume
Other
Identified
Items (1)
2021
Earnings
Price – Higher realizations increased earnings by $14,960 million.
Volume – Unfavorable volume and mix effects decreased earnings by $340 million.
Other – All other items increased earnings by $2,040 million, primarily driven by lower expenses of $1,360 million and one-time
favorable tax items.
Identified Items (1) – 2020 $(19,694) million loss primarily impairments of dry gas assets; 2021 $(543) million loss as a result of
impairments of $(752) million and contractual provisions of $(250) million, partly offset by a $459 million gain from the U.K. Central
and Northern North Sea divestment.
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
47
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2020 Upstream Earnings Factor Analysis
(millions of dollars)
14,442
+1,170
-11,210
-300
-24,130
(20,030)
2019
Earnings
Price
Volume
Other
Identified
Items (1)
2020
Earnings
Price – Lower realizations reduced earnings by $11,210 million.
Volume – Unfavorable volume and mix effects decreased earnings by $300 million.
Other – All other items increased earnings by $1,170 million, primarily driven by lower expenses of $960 million.
Identified Items (1) – 2019 $4,434 million gain primarily the $3,700 million gain from the Norway non-operated divestment; 2020
$(19,694) million loss primarily impairments of dry gas assets.
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
Upstream Operational Results
Production of crude oil, natural gas liquids, bitumen and synthetic oil
Net production
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Worldwide
Natural gas production available for sale
Net production
United States
Canada/Other Americas
Europe
Africa
Asia
Australia/Oceania
Worldwide
Oil-equivalent production (2)
2021
2020
2019
(thousands of barrels daily)
721
560
22
248
695
43
2,289
685
536
30
312
742
44
2,349
(millions of cubic feet daily)
2,746
195
808
43
3,465
1,280
8,537
2,691
277
789
9
3,486
1,219
8,471
646
467
108
372
748
45
2,386
2,778
258
1,457
7
3,575
1,319
9,394
(thousands of oil-equivalent barrels daily)
3,712
3,761
3,952
(2) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
48
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2021
Liquids production – 2.3 million barrels per day decreased 60 thousand barrels per day reflecting higher demand and growth, more
than offset by entitlements, decline, and divestments.
Natural gas production available for sale – 8.5 billion cubic feet per day increased 66 million cubic feet per day from 2020, reflecting
higher demand, partly offset by divestments and Groningen production limit.
2020
Liquids production – 2.3 million barrels per day decreased 37 thousand barrels per day reflecting the impacts of government mandates,
divestments, and lower demand, partly offset by growth and lower downtime.
Natural gas production available for sale – 8.5 billion cubic feet per day decreased 923 million cubic feet per day from 2019, reflecting
divestments, lower demand, and higher downtime, partly offset by growth.
Upstream Additional Information
Volumes Reconciliation (Oil-equivalent production) (1)
Prior Year
Entitlements - Net Interest
Entitlements - Price / Spend / Other
Government Mandates
Divestments
Demand / Growth / Other
Current Year
2021
2020
(thousands of barrels daily)
3,761
(1)
(97)
8
(24)
65
3,712
3,952
(9)
67
(110)
(151)
12
3,761
(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
Listed below are descriptions of ExxonMobil’s volumes reconciliation factors which are provided to facilitate understanding of the
terms.
Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-
determining factors. These factors consist of net interest changes specified in Production Sharing Contracts (PSCs) which typically
occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-
out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination
or expiry of a concession. Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as
lower crude oil prices.
Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to
non-operational volume-determining factors. These factors include changes in oil and gas prices or spending levels from one period to
another. According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase
or decrease royalty burdens and/or volumes attributable to ExxonMobil. For example, at higher prices, fewer barrels are required for
ExxonMobil to recover its costs. These effects generally vary from period to period with field spending patterns or market prices for
oil and natural gas. Such factors can also include other temporary changes in net interest as dictated by specific provisions in
production agreements.
Government Mandates are changes to ExxonMobil's sustainable production levels due to temporary non-operational production limits
imposed by governments, generally upon a sector, type or method of production.
Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a
field or asset in exchange for financial or other economic consideration.
Demand, Growth and Other factors comprise all other operational and non-operational factors not covered by the above definitions
that may affect volumes attributable to ExxonMobil. Such factors include, but are not limited to, production enhancements from
project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field
decline, and any fiscal or commercial terms that do not affect entitlements.
49
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Downstream
ExxonMobil’s Downstream continues to be one of the largest, most integrated businesses among international oil companies (IOC),
with significant positions across the full value chain including logistics, trading, refining, and marketing. The Corporation has a well-
established presence in the Americas, Europe, and Asia Pacific.
Downstream strategies competitively position the business across a range of market conditions. These strategies focus on providing
high-value and lower-emission products that customers need to power global mobility; leveraging strong operations performance;
capitalizing on integration across all ExxonMobil businesses; maximizing value from advantaged technology and a robust pipeline of
lower-emission opportunities; and improving portfolio competitiveness and resilience with advantaged investments and divestments.
With its large manufacturing footprint, ExxonMobil’s Downstream earnings are closely tied to industry refining margins. Refining
margins improved steadily throughout 2021, recovering from historic lows in 2020 driven by COVID-19 pandemic demand impacts.
By the end of 2021, refining margins had recovered to the bottom of the 10-year historical band from 2010 to 2019. Demand for
gasoline and diesel had essentially recovered to normal levels by the end of 2021, while jet fuel demand remained below historical
levels reflecting continued COVID-19 restrictions. Refining margins are anticipated to further improve in the near term as the
recovery in international travel increases demand for jet fuel, and strong chemical demand persists for products essential to modern
life. With improving market conditions, we restarted projects in Beaumont, Texas and Singapore to further strengthen the portfolio by
increasing production of high-value fuels and lubricants.
Refining margins are largely driven by differences in commodity prices and are a function of the difference between what a refinery
pays for its raw materials and the market prices for the range of products produced. Crude oil and many products are widely traded
with published prices, including those quoted on multiple exchanges around the world (e.g. New York Mercantile Exchange and
Intercontinental Exchange). Prices for these commodities are determined by the global marketplace and are influenced by many
factors, including global and regional supply/demand balances, inventory levels, industry refinery operations, import/export balances,
currency fluctuations, seasonal demand, weather, and political climate. ExxonMobil’s outlook is that industry refining margins will
remain volatile subject to shifting consumer demand as well as capacity changes from refinery additions and closures. ExxonMobil’s
significant integration both within the Downstream value chains including lubricants, logistics, trading, refining, and marketing, as
well as with Upstream and Chemical, improves our ability to generate shareholder value in a variety of market conditions.
ExxonMobil continues to grow fuels product sales in new markets near major production assets with continued progress in the Mexico
and Indonesia markets. Similarly, the lubricants business continues to grow, especially in Asia Pacific and the industrial sector,
leveraging world class brands and integration with basestocks refining capability. Through the Mobil brands, such as Mobil 1,
ExxonMobil is the worldwide leader in synthetic motor oils.
The Downstream business is characterized by periods of margin volatility resulting from short-term and long-term supply and demand
fluctuations. Proposed carbon policy and other climate-related regulations in many countries have the potential to increase industry
volatility, both favorably and unfavorably. ExxonMobil continually evaluates the Downstream portfolio during all phases of the
business cycle, which has resulted in numerous asset divestments and terminal conversions over the past decade to strengthen overall
profitability and resiliency. When investing in the Downstream, ExxonMobil remains focused on projects resilient across a broad
range of market conditions to support capturing value when opportunities emerge.
Key Recent Events
Lower-emission fuels: ExxonMobil announced plans for more than 40 thousand barrels per day of lower-emission fuels by 2025,
including a new renewable diesel unit at the Strathcona refinery, and purchase agreements with Global Clean Energy in the U.S. and
Biojet AS in Norway.
Terminal conversions: ExxonMobil converted the Slagen, Norway and Altona, Australia refineries into product import terminals
capable of serving existing markets. Additionally, Refining New Zealand announced conversion of its refinery (in which ExxonMobil
owns a 17% minority share) to a product import terminal in 2022.
50
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Downstream Financial Results
Earnings (loss) (U.S. GAAP)
United States
Non-U.S.
Total
Identified Items (1)
United States
Non-U.S.
Total
Earnings (loss) excluding Identified Items (1)
United States
Non-U.S.
Total
2021 Downstream Earnings Factor Analysis
(millions of dollars)
2021
2020
2019
(millions of dollars)
1,314
791
2,105
(852)
1,717
(225)
606
(1,077)
2,323
4
—
4
1,310
791
2,101
(4)
(855)
(859)
—
(9)
(9)
(848)
630
(218)
1,717
615
2,332
+1,920
+100
+300
+860
2,105
(1,077)
2020
Earnings
Margins
Volume
Other
Identified
Items (1)
2021
Earnings
Margins – Increased earnings by $1,920 million as industry refining conditions improved.
Volume – Increased earnings by $100 million reflecting demand recovery and favorable mix.
Other – Increased earnings by $300 million due to lower expenses of $560 million, partly offset by unfavorable foreign exchange and
LIFO impacts.
Identified Items (1) – 2020 $(859) million loss primarily as a result of impairments and unfavorable tax items.
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
51
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2020 Downstream Earnings Factor Analysis
(millions of dollars)
2,323
2019
Earnings
+900
+370
-3,820
Margins
Volume
Other
-850
(1,077)
Identified
Items (1)
2020
Earnings
Margins – Decreased earnings by $3,820 million including the impact of weaker industry refining conditions.
Volume – Increased earnings by $370 million as manufacturing/yield improvement impacts were partly offset by weaker demand.
Other – Increased earnings by $900 million due to lower expenses of $1,290 million, partly offset by unfavorable LIFO inventory
impacts of $410 million.
Identified Items (1) – 2020 $(859) million loss primarily as a result of impairments and unfavorable tax items.
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
Downstream Operational Results
Refinery throughput
United States
Canada
Europe
Asia Pacific
Other
Worldwide
Petroleum product sales (2)
United States
Canada
Europe
Asia Pacific
Other
Worldwide
Gasoline, naphthas
Heating oils, kerosene, diesel oils
Aviation fuels
Heavy fuels
Specialty petroleum products
Worldwide
(2) Data reported net of purchases/sales contracts with the same counterparty.
52
2021
2020
2019
(thousands of barrels daily)
1,623
379
1,210
571
162
3,945
2,257
448
1,340
653
464
5,162
2,158
1,749
220
269
766
5,162
1,549
340
1,173
553
158
3,773
2,154
418
1,253
651
419
4,895
1,994
1,751
213
249
688
4,895
1,532
353
1,317
598
181
3,981
2,292
476
1,479
738
467
5,452
2,220
1,867
406
270
689
5,452
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Chemical
ExxonMobil is a leading global manufacturer and marketer of petrochemicals that support modern living. ExxonMobil helps meet
society’s evolving needs by providing a wide range of innovative, valuable product solutions in an efficient and responsible manner.
This is enabled by ExxonMobil’s proprietary technology combined with industry-leading scale and integration. These competitive
advantages are underpinned by operational excellence, advantaged investments, and cost discipline.
In 2021, while many markets continued to be negatively impacted by COVID-19, demand for chemical products remained resilient in
several key segments including food packaging, hygiene and medical. Overall chemical industry margins improved compared to 2020
due to continued strong packaging demand and industry supply disruptions. We were uniquely positioned to capture value from the
market in 2021 due to our integration, enabling nimble feed and product optimization, and our advantaged global supply and logistics.
These, along with our outstanding reliability performance and continued structural cost savings, delivered record annual earnings.
Worldwide demand for chemicals is expected to grow faster than the economy as a whole, driven by global population growth, an
expanding middle class, and improving living standards. ExxonMobil’s integration with refining, together with our high-value
performance products and unique project execution capability, enhances our ability to generate returns on investments across a range
of market environments. In 2021, ExxonMobil completed construction of our joint venture ethane cracker and associated derivative
units near Corpus Christi, Texas. The project started up in late 2021 below budget and ahead of schedule. With improving market
conditions, we also restarted other U.S. Gulf Coast growth projects, including projects in Baytown, Texas and Baton Rouge, Louisiana
that will support the growing demand for high-value chemicals products.
Key Recent Events
China investment: ExxonMobil reached final investment decision to proceed with a multi-billion dollar chemical complex in the
Dayawan Petrochemical Industrial Park in Huizhou, Guangdong Province in China. The facility will help meet expected demand
growth for performance chemical products in China.
Advanced recycling: The Corporation is progressing construction of one of North America’s largest plastic waste advanced recycling
facilities in Baytown, Texas, which is expected to start operations in 2022. In addition, plans are underway for up to 500,000 metric
tons annually of advanced recycling capacity to be added across multiple sites by 2026. These investments enabled commercial
volumes of certified circular polymers to be made available to the market in 2021.
Materia acquisition: ExxonMobil acquired Materia, Inc., a technology company that has pioneered the development of a Nobel prize-
winning technology for manufacturing a new class of materials. The innovative materials can be used in a number of applications,
including wind turbine blades, electric vehicle parts, sustainable construction, and anticorrosive coatings.
Santoprene divestment: ExxonMobil Chemical Company sold its global Santoprene business to Celanese. The sale included two
manufacturing sites, one in the United States and one in the United Kingdom.
Chemical Financial Results
Earnings (loss) (U.S. GAAP)
United States
Non-U.S.
Total
Identified Items (1)
United States
Non-U.S.
Total
Earnings (loss) excluding Identified Items (1)
United States
Non-U.S.
Total
2021
2020
2019
(millions of dollars)
4,502
3,294
7,796
494
136
630
4,008
3,158
7,166
1,277
686
1,963
(90)
(24)
(114)
1,367
710
2,077
206
386
592
—
2
2
206
384
590
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
53
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
2021 Chemical Earnings Factor Analysis
(millions of dollars)
+4,480
+250
+360
+740
7,796
1,963
2020
Earnings
Margins
Volume
Other
Identified
Items (1)
2021
Earnings
Margins – Stronger margins increased earnings by $4,480 million driven by resilient demand and industry supply constraints.
Volume – Higher volumes increased earnings by $250 million on record production supported by exceptional reliability.
Other – All other items increased earnings by $360 million primarily as a result of favorable foreign exchange, lower expenses, and
favorable LIFO impacts.
Identified Items (1) – 2020 $(114) million loss primarily as a result of impairments; 2021 $630 million gain as a result of the
Santoprene divestment.
2020 Chemical Earnings Factor Analysis
(millions of dollars)
+930
-150
+710
1,963
-120
Margins
Volume
Other
Identified
Items (1)
2020
Earnings
592
2019
Earnings
Margins – Stronger margins increased earnings by $930 million.
Volume – Lower volumes decreased earnings by $150 million.
Other – All other items increased earnings by $710 million primarily as a result of lower expenses.
Identified Items (1) – 2020 $(114) million loss primarily as a result of impairments.
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
Chemical Operational Results
Chemical prime product sales (2)
United States
Non-U.S.
Worldwide
(2) Data reported net of purchases/sales contracts with the same counterparty.
54
2021
2020
2019
(thousands of metric tons)
9,724
16,608
26,332
9,010
16,439
25,449
9,127
17,389
26,516
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Corporate and Financing
Corporate and Financing is comprised of corporate activities that support the Corporation’s operating segments and ExxonMobil’s
Low Carbon Solutions business. Corporate activities include general administrative support functions, financing and insurance
activities. Low Carbon Solutions activities are included in Corporate and Financing as the business continues to mature through
commercialization and deployment of technology.
Corporate and Financing Financial Results
Earnings (loss) (U.S. GAAP)
Identified Items (1)
Earnings (loss) excluding Identified Items (1)
2021
2020
2019
(millions of dollars)
(2,636)
(3,296)
(3,017)
(64)
(2,572)
(361)
(2,935)
308
(3,325)
(1) Refer to Frequently Used Terms for definition of Identified Items and earnings (loss) excluding Identified Items.
2021
Corporate and Financing expenses were $2,636 million in 2021 compared to $3,296 million in 2020, with the decrease mainly due to
the absence of prior year severance costs and lower financing costs.
2020
Corporate and Financing expenses were $3,296 million in 2020 compared to $3,017 million in 2019, with the increase mainly due to
higher financing costs and employee severance costs, partly offset by lower corporate costs.
55
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
LIQUIDITY AND CAPITAL RESOURCES
Sources and Uses of Cash
Net cash provided by/(used in)
Operating activities
Investing activities
Financing activities
Effect of exchange rate changes
Increase/(decrease) in cash and cash equivalents
Total cash and cash equivalents
2021
2020
2019
(millions of dollars)
48,129
14,668
29,716
(10,235) (18,459) (23,084)
(35,423)
5,285
(6,618)
(33)
(219)
2,438
1,275
33
47
(December 31)
6,802
4,364
3,089
Total cash and cash equivalents were $6.8 billion at the end of 2021, up $2.4 billion from the prior year. The major sources of funds in
2021 were net income including noncontrolling interests of $23.6 billion, the adjustment for the noncash provision of $20.6 billion for
depreciation and depletion, contributions from operational working capital of $4.2 billion, proceeds from asset sales of $3.2 billion,
and other investing activities of $1.5 billion. The major uses of funds included a debt reduction of $19.7 billion, spending for additions
to property, plant and equipment of $12.1 billion, dividends to shareholders of $14.9 billion, and additional investments and advances
of $2.8 billion.
Total cash and cash equivalents were $4.4 billion at the end of 2020, up $1.3 billion from the prior year. The major sources of funds in
2020 were the adjustment for the noncash provision of $46.0 billion, a net debt increase of $20.1 billion, proceeds from asset sales of
$1.0 billion, and other investing activities of $2.7 billion. The major uses of funds included a net loss including noncontrolling
interests of $23.3 billion, spending for additions to property, plant and equipment of $17.3 billion, dividends to shareholders of
$14.9 billion, and additional investments and advances of $4.9 billion.
The Corporation has access to significant capacity of long-term and short-term liquidity. In addition to cash balances, commercial
paper continues to provide short-term liquidity, and is reflected in “Notes and loans payable” on the Consolidated Balance Sheet with
changes in outstanding commercial paper between periods included in the Consolidated Statement of Cash Flows. The Corporation
took steps to strengthen its balance sheet in 2021, reducing debt by nearly $20 billion and ending the year with $47.7 billion in total
debt. On December 31, 2021, the Corporation had undrawn short-term committed lines of credit of $10.7 billion and undrawn long-
term lines of credit of $0.6 billion.
To support cash flows in future periods, the Corporation will need to continually find or acquire and develop new fields, and continue
to develop and apply new technologies and recovery processes to existing fields, in order to maintain or increase production. After a
period of production at plateau rates, it is the nature of oil and gas fields to eventually produce at declining rates for the remainder of
their economic life. Decline rates can vary widely by individual field due to a number of factors, including, but not limited to, the type
of reservoir, fluid properties, recovery mechanisms, work activity, and age of the field. In particular, the Corporation’s key tight-oil
plays have higher initial decline rates which tend to moderate over time. Furthermore, the Corporation’s net interest in production for
individual fields can vary with price and the impact of fiscal and commercial terms.
The Corporation has long been successful at mitigating the effects of natural field decline through disciplined investments in quality
opportunities and project execution. The Corporation anticipates several projects will come online over the next few years providing
additional production capacity. However, actual volumes will vary from year to year due to the timing of individual project start-ups;
operational outages; reservoir performance; performance of enhanced oil recovery projects; regulatory changes; the impact of fiscal
and commercial terms; asset sales; weather events; price effects on production sharing contracts; and changes in the amount and
timing of investments that may vary depending on the oil and gas price environment. The Corporation’s cash flows are also highly
dependent on crude oil and natural gas prices. Please refer to Item 1A. Risk Factors for a more complete discussion of risks.
The Corporation’s financial strength enables it to make large, long-term capital expenditures. Capital and exploration expenditures in
2021 were $16.6 billion, reflecting the Corporation’s continued active investment program. The Corporation plans to invest in the
range of $21 billion to $24 billion in 2022.
56
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Actual spending could vary depending on the progress of individual projects and property acquisitions. The Corporation has a large
and diverse portfolio of development projects and exploration opportunities, which helps mitigate the overall political and technical
risks of the Corporation’s Upstream segment and associated cash flow. Further, due to its financial strength and diverse portfolio of
opportunities, the risk associated with failure or delay of any single project would not have a significant impact on the Corporation’s
liquidity or ability to generate sufficient cash flows for operations and its fixed commitments.
The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade.
Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either
gains or losses. In light of commodity price volatility, and depending on the pace of demand recovery, the Corporation's planned
divestment program could be adversely affected by fewer financially suitable buyers. This could result in a slowing of the pace of
divestments, certain assets being sold at a price below current book value, or impairment charges if the likelihood of divesting certain
assets increases. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through
acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating acquisitions
include potential for future growth and attractive current valuations. Acquisitions may be made with cash, shares of the Corporation’s
common stock, or both.
ExxonMobil closely monitors the potential impact of Interbank Offered Rate (IBOR) reform, including LIBOR, under a number of
scenarios and has taken steps to mitigate the potential impact. Accordingly, ExxonMobil does not believe this event represents a
material risk to the Corporation’s consolidated results of operations or financial condition.
Cash Flow from Operating Activities
2021
Cash provided by operating activities totaled $48.1 billion in 2021, $33.5 billion higher than 2020. The major source of funds was net
income including noncontrolling interests of $23.6 billion, an increase of $46.8 billion. The noncash provision for depreciation and
depletion was $20.6 billion, down $25.4 billion from the prior year. The adjustment for the net gain on asset sales was $1.2 billion, an
increase of $1.2 billion. The adjustment for dividends received less than equity in current earnings of equity companies was a
reduction of $0.7 billion, compared to an increase of $1.0 billion in 2020. Changes in operational working capital, excluding cash and
debt, increased cash in 2021 by $4.2 billion.
2020
Cash provided by operating activities totaled $14.7 billion in 2020, $15.0 billion lower than 2019. Net income (loss) including
noncontrolling interests was a loss of $23.3 billion, a decrease of $38.0 billion. The noncash provision for depreciation and depletion
was $46.0 billion, up $27.0 billion from the prior year, mainly due to asset impairments. The noncash provision for deferred income
tax benefits was $8.9 billion and also included impacts from asset impairments. The adjustment for the net loss on asset sales was
$4 million, a decrease of $1.7 billion. The adjustment for dividends received less than equity in current earnings of equity companies
was an increase of $1.0 billion, compared to a reduction of $0.9 billion in 2019. Changes in operational working capital, excluding
cash and debt, decreased cash in 2020 by $1.7 billion.
Cash Flow from Investing Activities
2021
Cash used in investing activities netted to $10.2 billion in 2021, $8.2 billion lower than 2020. Spending for property, plant and
equipment of $12.1 billion decreased $5.2 billion from 2020. Proceeds from asset sales and returns of investments of $3.2 billion
compared to $1.0 billion in 2020. Additional investments and advances were $2.0 billion lower in 2021, while proceeds from other
investing activities including collection of advances decreased by $1.2 billion.
2020
Cash used in investing activities netted to $18.5 billion in 2020, $4.6 billion lower than 2019. Spending for property, plant and
equipment of $17.3 billion decreased $7.1 billion from 2019. Proceeds from asset sales and returns of investments of $1.0 billion
compared to $3.7 billion in 2019. Additional investments and advances were $1.0 billion higher in 2020, while proceeds from other
investing activities including collection of advances increased by $1.2 billion.
57
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Cash Flow from Financing Activities
2021
Cash used in financing activities was $35.4 billion in 2021, $40.7 billion higher than 2020. Dividend payments on common shares
increased to $3.49 per share from $3.48 per share and totaled $14.9 billion. During 2021, the Corporation utilized cash to reduce debt
by $19.7 billion.
ExxonMobil share of equity increased $11.4 billion to $168.6 billion. The addition to equity for earnings was $23.0 billion. This was
offset by reductions for distributions to ExxonMobil shareholders of $14.9 billion, all in the form of dividends. Foreign exchange
translation effects of $0.9 billion for the stronger U.S. dollar reduced equity and a $3.8 billion change in the funded status of the
postretirement benefits reserves increased equity.
During 2021, Exxon Mobil Corporation suspended its share repurchase program used to offset shares or units settled in shares issued
in conjunction with the company’s benefit plans and programs. In 2022, the Corporation initiated a share repurchase program of up to
$10 billion over 12 to 24 months.
2020
Cash flow from financing activities was $5.3 billion in 2020, $11.9 billion higher than 2019. Dividend payments on common shares
increased to $3.48 per share from $3.43 per share and totaled $14.9 billion. During 2020, the Corporation issued $23.2 billion of long-
term debt. Total debt increased $20.7 billion to $67.6 billion at year-end.
ExxonMobil share of equity decreased $34.5 billion to $157.2 billion. The reduction to equity for losses was $22.4 billion and the
reduction for distributions to ExxonMobil shareholders of $14.9 billion, all in the form of dividends. Foreign exchange translation
effects of $1.8 billion for the weaker U.S. dollar and a $1.0 billion change in the funded status of the postretirement benefits reserves
increased equity.
During 2020, Exxon Mobil Corporation acquired 8 million shares of its common stock for the treasury. Purchases were made to offset
shares or units settled in shares issued in conjunction with the company’s benefit plans and programs. Shares outstanding decreased
from 4,234 million to 4,233 million at the end of 2020.
Contractual Obligations
The Corporation has contractual obligations involving commitments to third parties that impact its liquidity and capital resource needs.
These contractual obligations are primarily for leases, debt, asset retirement obligations, pension and other postretirement benefits,
take-or-pay and unconditional purchase obligations, and firm capital commitments. See Notes 9, 11, 14 and 17 for information related
to asset retirement obligations, leases, long-term debt and pensions, respectively.
In addition, the Corporation also enters into commodity purchase obligations (volumetric commitments but no fixed or minimum
price) which are resold shortly after purchase, either in an active, highly liquid market or under long-term, unconditional sales
contracts with similar pricing terms. Examples include long-term, noncancelable LNG and natural gas purchase commitments and
commitments to purchase refinery products at market prices. These commitments are not meaningful in assessing liquidity and cash
flow, because the purchases will be offset in the same periods by cash received from the related sales transactions.
Take-or-pay obligations are noncancelable, long-term commitments for goods and services. Unconditional purchase obligations are
those long-term commitments that are noncancelable or cancelable only under certain conditions, and that third parties have used to
secure financing for the facilities that will provide the contracted goods or services. These obligations mainly pertain to pipeline,
manufacturing supply and terminal agreements. The total obligation at year-end 2021 for take-or-pay and unconditional purchase
obligations was $30,031 million. Cash payments expected in 2022 and 2023 are $4,004 million and $3,560 million, respectively.
58
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Guarantees
The Corporation and certain of its consolidated subsidiaries were contingently liable at December 31, 2021 for guarantees relating to
notes, loans and performance under contracts (Note 16). Where guarantees for environmental remediation and other similar matters do
not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. These guarantees are not
reasonably likely to have a material effect on the Corporation’s financial condition, changes in financial condition, revenues or
expenses, results of operations, liquidity, capital expenditures or capital resources.
Financial Strength
On December 31, 2021, the Corporation had total unused short-term committed lines of credit of $10.7 billion (Note 6) and total
unused long-term committed lines of credit of $0.6 billion (Note 14). The table below shows the Corporation’s consolidated debt to
capital ratios.
Debt to capital (percent)
Net debt to capital (percent)
2021
21.4
18.9
2020
29.2
27.8
2019
19.1
18.1
Management views the Corporation’s financial strength to be a competitive advantage of strategic importance. The Corporation’s
financial position gives it the opportunity to access the world’s capital markets across a range of market conditions, and enables the
Corporation to take on large, long-term capital commitments in the pursuit of maximizing shareholder value.
Industry conditions in 2020 led to lower realized prices for the Corporation’s products which resulted in substantially lower earnings
and operating cash flow in comparison to 2019. The Corporation took steps to strengthen its liquidity in 2020, including issuing
$23.2 billion of long-term debt and implementing significant capital and operating cost reductions. The Corporation ended 2020 with
$67.6 billion in total debt.
Stronger prices and margins improved the Corporation's financial results in 2021. The Corporation reduced debt by $19.9 billion and
ended the year with $47.7 billion in total debt.
Litigation and Other Contingencies
As discussed in Note 16, a variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a
number of pending lawsuits. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the
ultimate outcome of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation’s
operations, financial condition, or financial statements taken as a whole. There are no events or uncertainties beyond those already
included in reported financial information that would indicate a material change in future operating results or financial condition.
Refer to Note 16 for additional information on legal proceedings and other contingencies.
CAPITAL AND EXPLORATION EXPENDITURES
Capital and exploration expenditures (Capex) represents the combined total of additions at cost to property, plant and equipment, and
exploration expenses on a before-tax basis from the Consolidated Statement of Income. ExxonMobil’s Capex includes its share of
similar costs for equity companies. Capex excludes assets acquired in nonmonetary exchanges, the value of ExxonMobil shares used
to acquire assets, and depreciation on the cost of exploration support equipment and facilities recorded to property, plant and
equipment when acquired. While ExxonMobil’s management is responsible for all investments and elements of net income, particular
focus is placed on managing the controllable aspects of this group of expenditures.
Upstream (1)
Downstream
Chemical
Other
Total
(1) Exploration expenses included.
2021
2020
U.S.
Non-U.S.
Total
U.S.
Non-U.S.
Total
(millions of dollars)
12,254
2,095
2,243
3
16,595
6,817
2,344
2,002
6
11,169
7,614
1,877
714
—
10,205
14,431
4,221
2,716
6
21,374
4,018
1,000
1,367
3
6,388
8,236
1,095
876
—
10,207
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Capex in 2021 was $16.6 billion, as the Corporation continued to pursue opportunities to find and produce new supplies of oil and
natural gas to meet global demand for energy. The Corporation plans to invest in the range of $21 billion to $24 billion in 2022.
Included in the 2022 capital spend range is $8.3 billion of firm capital commitments. An additional $10.7 billion of firm capital
commitments have been made for years 2023 and beyond. Actual spending could vary depending on the progress of individual
projects and property acquisitions.
Upstream spending of $12.3 billion in 2021 was down 15 percent from 2020, primarily in the U.S. Permian Basin. Investments in
2021 included the U.S. Permian Basin and key development projects in Guyana and Brazil. Development projects typically take
several years from the time of recording proved undeveloped reserves to the start of production and can exceed five years for large and
complex projects. The percentage of proved developed reserves was 66 percent of total proved reserves at year-end 2021, and has been
over 60 percent for the last ten years.
Capital investments in the Downstream totaled $2.1 billion in 2021, a decrease of $2.1 billion from 2020, reflecting lower global
project spending. Chemical capital expenditures of $2.2 billion, decreased $0.5 billion, representing reduced spend on growth projects.
TAXES
Income taxes
Effective income tax rate
Total other taxes and duties
Total
2021
2021
2020
2019
(millions of dollars)
7,636
(5,632)
5,282
31 %
17 %
34 %
32,955
40,591
28,425
22,793
33,186
38,468
Total taxes on the Corporation’s income statement were $40.6 billion in 2021, an increase of $17.8 billion from 2020. Income tax
expense, both current and deferred, was $7.6 billion compared to a $5.6 billion benefit in 2020. The effective tax rate, which is
calculated based on consolidated company income taxes and ExxonMobil’s share of equity company income taxes, was 31 percent
compared to 17 percent in the prior year due primarily to a change in mix of results in jurisdictions with varying tax rates. Total other
taxes and duties of $33.0 billion in 2021 increased $4.5 billion.
2020
Total taxes on the Corporation’s income statement were $22.8 billion in 2020, a decrease of $15.7 billion from 2019. Income tax
expense, both current and deferred, was a benefit of $5.6 billion compared to $5.3 billion expense in 2019. The relative benefit was
driven by asset impairments recorded in 2020. The effective tax rate, which is calculated based on consolidated company income taxes
and ExxonMobil’s share of equity company income taxes, was 17 percent compared to 34 percent in the prior year due primarily to a
change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties of $28.4 billion in 2020 decreased
$4.8 billion.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
ENVIRONMENTAL MATTERS
Environmental Expenditures
Capital expenditures
Other expenditures
Total
2021
2020
(millions of dollars)
1,202
3,361
4,563
1,087
3,389
4,476
Throughout ExxonMobil’s businesses, new and ongoing measures are taken to prevent and minimize the impact of our operations on
air, water and ground. These include a significant investment in refining infrastructure and technology to manufacture clean fuels, as
well as projects to monitor and reduce nitrogen oxide, sulfur oxide and greenhouse gas emissions, and expenditures for asset
retirement obligations. Using definitions and guidelines established by the American Petroleum Institute, ExxonMobil’s 2021
worldwide environmental expenditures for all such preventative and remediation steps, including ExxonMobil’s share of equity
company expenditures, were $4.6 billion, of which $3.4 billion were included in expenses with the remainder in capital expenditures.
The total cost for such activities is expected to increase to approximately $5.3 billion in 2022, with capital expenditures expected to
account for approximately 30 percent of the total. Costs for 2023 are anticipated to be higher as the Low Carbon Solutions business
matures and the Corporation progresses its emission-reduction plans.
Environmental Liabilities
The Corporation accrues environmental liabilities when it is probable that obligations have been incurred and the amounts can be
reasonably estimated. This policy applies to assets or businesses currently owned or previously disposed. ExxonMobil has accrued
liabilities for probable environmental remediation obligations at various sites, including multiparty sites where the U.S. Environmental
Protection Agency has identified ExxonMobil as one of the potentially responsible parties. The involvement of other financially
responsible companies at these multiparty sites could mitigate ExxonMobil’s actual joint and several liability exposure. At present, no
individual site is expected to have losses material to ExxonMobil’s operations or financial condition. Consolidated company
provisions made in 2021 for environmental liabilities were $146 million ($263 million in 2020) and the balance sheet reflects
liabilities of $807 million as of December 31, 2021, and $902 million as of December 31, 2020.
MARKET RISKS
Worldwide Average Realizations (1)
Crude oil and NGL ($ per barrel)
Natural gas ($ per thousand cubic feet)
(1) Consolidated subsidiaries.
2021
61.89
4.33
2020
35.41
2.01
2019
56.32
3.05
Crude oil, natural gas, petroleum product and chemical prices have fluctuated in response to changing market forces. The impacts of
these price fluctuations on earnings from Upstream, Downstream and Chemical operations have varied. For the year 2022, a
$1 per barrel change in the weighted-average realized price of oil would have approximately a $500 million annual after-tax effect on
Upstream consolidated plus equity company earnings, excluding the impact of derivatives. Similarly, a $0.10 per thousand cubic feet
change in the worldwide average gas realization would have approximately a $155 million annual after-tax effect on Upstream
consolidated plus equity company earnings, excluding the impact of derivatives. For any given period, the extent of actual benefit or
detriment will be dependent on the price movements of individual types of crude oil, results of trading activities, taxes and other
government take impacts, price adjustment lags in long-term gas contracts, and crude and gas production volumes. Accordingly,
changes in benchmark prices for crude oil and natural gas only provide broad indicators of changes in the earnings experienced in any
particular period.
In the very competitive downstream and chemical environments, earnings are primarily determined by margin capture rather than
absolute price levels of products sold. Refining margins are a function of the difference between what a refiner pays for its raw
materials (primarily crude oil) and the market prices for the range of products produced. These prices in turn depend on global and
regional supply/demand balances, inventory levels, refinery operations, import/export balances and weather.
The global energy markets can give rise to extended periods in which market conditions are adverse to one or more of the
Corporation’s businesses. Such conditions, along with the capital-intensive nature of the industry and very long lead times associated
with many of our projects, underscore the importance of maintaining a strong financial position. Management views the Corporation’s
financial strength as a competitive advantage.
61
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
In general, segment results are not dependent on the ability to sell and/or purchase products to/from other segments. Instead, where
such sales take place, they are the result of efficiencies and competitive advantages of integrated refinery and chemical complexes.
Additionally, intersegment sales are at market-based prices. The products bought and sold between segments can also be acquired in
worldwide markets that have substantial liquidity, capacity, and transportation capabilities. Refer to Note 18 for additional information
on intersegment revenue.
Although price levels of crude oil and natural gas may rise or fall significantly over the short to medium term due to global economic
conditions, political events, decisions by OPEC and other major government resource owners and other factors, industry economics
over the long term will continue to be driven by market supply and demand. Accordingly, the Corporation evaluates the viability of its
major investments over a range of prices.
The Corporation has an active asset management program in which underperforming assets are either improved to acceptable levels or
considered for divestment. The asset management program includes a disciplined, regular review to ensure that assets are contributing
to the Corporation’s strategic objectives.
Risk Management
The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the Upstream, Downstream and
Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest
rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to
generate returns from trading. The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the
Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as
of December 31, 2021 and 2020, or results of operations for the years ended 2021, 2020 and 2019. Credit risk associated with the
Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of
and financial limits placed on derivative counterparties. No material market or credit risks to the Corporation’s financial position,
results of operations or liquidity exist as a result of the derivatives described in Note 13. The Corporation maintains a system of
controls that includes the authorization, reporting and monitoring of derivative activity.
The Corporation is exposed to changes in interest rates, primarily on its short-term debt and the portion of long-term debt that carries
floating interest rates. The impact of a 100-basis-point change in interest rates affecting the Corporation’s debt would not be material
to earnings or cash flow. The Corporation has access to significant capacity of long-term and short-term liquidity. Internally generated
funds are generally expected to cover financial requirements, supplemented by long-term and short-term debt as required. Commercial
paper is used to balance short-term liquidity requirements. Some joint-venture partners are dependent on the credit markets, and their
funding ability may impact the development pace of joint-venture projects.
The Corporation conducts business in many foreign currencies and is subject to exchange rate risk on cash flows related to sales,
expenses, financing and investment transactions. Fluctuations in exchange rates are often offsetting and the impacts on ExxonMobil’s
geographically and functionally diverse operations are varied. The Corporation makes limited use of currency exchange contracts to
mitigate the impact of changes in currency values, and exposures related to the Corporation’s use of these contracts are not material.
62
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
CRITICAL ACCOUNTING ESTIMATES
The Corporation’s accounting and financial reporting fairly reflect its integrated business model involving exploration for, and
production of, crude oil and natural gas; manufacture, trade, transport and sale of crude oil, natural gas, petroleum products,
petrochemicals and a wide variety of specialty products; and pursuit of lower-emission business opportunities including carbon
capture and storage, hydrogen and biofuels. The preparation of financial statements in conformity with U.S. Generally Accepted
Accounting Principles (GAAP) requires management to make estimates and judgments that affect the reported amounts of assets,
liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. The Corporation’s accounting policies are
summarized in Note 1.
Oil and Natural Gas Reserves
The estimation of proved oil and natural gas reserve volumes is an ongoing process based on rigorous technical evaluations,
commercial and market assessments and detailed analysis of well information such as flow rates and reservoir pressure declines,
development and production costs, and other factors. The estimation of proved reserves is controlled by the Corporation through long-
standing approval guidelines. Reserve changes are made within a well-established, disciplined process driven by senior level
geoscience and engineering professionals, assisted by the Global Reserves and Resources Group which has significant technical
experience, culminating in reviews with and approval by senior management. Notably, the Corporation does not use specific
quantitative reserve targets to determine compensation. Key features of the reserve estimation process are covered in Disclosure of
Reserves in Item 2.
Oil and natural gas reserves include both proved and unproved reserves.
•
Proved oil and natural gas reserves are determined in accordance with Securities and Exchange Commission (SEC)
requirements. Proved reserves are those quantities of oil and natural gas which, by analysis of geoscience and engineering data,
can be estimated with reasonable certainty to be economically producible under existing economic and operating conditions and
government regulations. Proved reserves are determined using the average of first-of-month oil and natural gas prices during
the reporting year.
Proved reserves can be further subdivided into developed and undeveloped reserves. Proved developed reserves include
amounts which are expected to be recovered through existing wells with existing equipment and operating methods. Proved
undeveloped reserves include amounts expected to be recovered from new wells on undrilled proved acreage or from existing
wells where a relatively major expenditure is required for completion. Proved undeveloped reserves are recognized only if a
development plan has been adopted indicating that the reserves are scheduled to be drilled within five years, unless specific
circumstances support a longer period of time.
The Corporation is reasonably certain that proved reserves will be produced. However, the timing and amount recovered can be
affected by a number of factors including completion of development projects, reservoir performance, regulatory approvals,
government policy, consumer preferences and significant changes in oil and natural gas price levels.
•
Unproved reserves are quantities of oil and natural gas with less than reasonable certainty of recoverability and include
probable reserves. Probable reserves are reserves that, together with proved reserves, are as likely as not to be recovered.
Revisions in previously estimated volumes of proved reserves for existing fields can occur due to the evaluation or re-evaluation of (1)
already available geologic, reservoir or production data, (2) new geologic, reservoir or production data or (3) changes in the average of
first-of-month oil and natural gas prices and/or costs that are used in the estimation of reserves. Revisions can also result from
significant changes in development strategy or production equipment and facility capacity.
Unit-of-Production Depreciation
Oil and natural gas reserve volumes are used as the basis to calculate unit-of-production depreciation rates for most upstream assets.
Depreciation is calculated by taking the ratio of asset cost to total proved reserves or proved developed reserves applied to actual
production. The volumes produced and asset cost are known, while proved reserves are based on estimates that are subject to some
variability.
In the event that the unit-of-production method does not result in an equitable allocation of cost over the economic life of an upstream
asset, an alternative method is used. The straight-line method is used in limited situations where the expected life of the asset does not
reasonably correlate with that of the underlying reserves. For example, certain assets used in the production of oil and natural gas have
a shorter life than the reserves, and as such, the Corporation uses straight-line depreciation to ensure the asset is fully depreciated by
the end of its useful life.
To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the
resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a
unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of
proved reserves, appropriately adjusted for production and technical changes.
63
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Impairment
The Corporation tests assets or groups of assets for recoverability on an ongoing basis whenever events or changes in circumstances
indicate that the carrying amounts may not be recoverable. The Corporation has a robust process to monitor for indicators of potential
impairment across its asset groups throughout the year. This process is aligned with the requirements of ASC 360 and ASC 932, and
relies, in part, on the Corporation’s planning and budgeting cycle.
Because the lifespans of the vast majority of the Corporation’s major assets are measured in decades, the future cash flows of these
assets are predominantly based on long-term oil and natural gas commodity prices and industry margins, and development and
production costs. Significant reductions in the Corporation’s view of oil or natural gas commodity prices or margin ranges, especially
the longer-term prices and margins, and changes in the development plans, including decisions to defer, reduce, or eliminate planned
capital spending, can be an indicator of potential impairment. Other events or changes in circumstances, including indicators outlined
in ASC 360, can be indicators of potential impairment as well.
In general, the Corporation does not view temporarily low prices or margins as an indication of impairment. Management believes that
prices over the long term must be sufficient to generate investments in energy supply to meet global demand. Although prices will
occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand
fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate
production from new discoveries, field developments and technology, and efficiency advancements. OPEC investment activities and
production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities,
alternative energy sources and levels of prosperity. During the lifespan of its major assets, the Corporation expects that oil and gas
prices and industry margins will experience significant volatility, and consequently these assets will experience periods of higher
earnings and periods of lower earnings, or even losses. In assessing whether events or changes in circumstances indicate the carrying
value of an asset may not be recoverable, the Corporation considers recent periods of operating losses in the context of its longer-term
view of prices and margins.
Energy Outlook and Cash Flow Assessment. The annual planning and budgeting process, known as the Corporate Plan, is the
mechanism by which resources (capital, operating expenses, and people) are allocated across the Corporation. The foundation for the
assumptions supporting the Corporate Plan is the Energy Outlook, which contains the Corporation’s demand and supply projections
based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic
development. Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future
policy and technology advancement and deployment for the world, or the Corporation, to meet net-zero by 2050. As future policies
and technology advancements emerge, they will be incorporated into the Energy Outlook, and the Corporation’s business plans will be
updated accordingly.
If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the Corporation estimates the
future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. Cash flows used in
recoverability assessments are based on the assumptions developed in the Corporate Plan, which is reviewed and approved by the
Board of Directors, and are consistent with the criteria management uses to evaluate investment opportunities. These evaluations make
use of the Corporation’s assumptions of future capital allocations, crude oil and natural gas commodity prices including price
differentials, refining and chemical margins, volumes, development and operating costs including greenhouse gas emission prices, and
foreign currency exchange rates. Volumes are based on projected field and facility production profiles, throughput, or sales.
Management’s estimate of upstream production volumes used for projected cash flows makes use of proved reserve quantities and
may include risk-adjusted unproved reserve quantities. The greenhouse gas emission prices reflect existing or anticipated policy
actions that countries or localities may take in support of Paris Accord pledges. While third-party scenarios, such as the International
Energy Agency Net Zero Emissions by 2050, may be used to test the resiliency of the Corporation's businesses or strategies, they are
not used as a basis for developing future cash flows for impairment assessments.
Fair Value of Impaired Assets. An asset group is impaired if its estimated undiscounted cash flows are less than the asset group’s
carrying value. Impairments are measured by the amount by which the carrying value exceeds fair value. The assessment of fair value
is based upon the views of a likely market participant. The principal parameters used to establish fair value include estimates of
acreage values and flowing production metrics from comparable market transactions, market-based estimates of historical cash flow
multiples, and discounted cash flows. Inputs and assumptions used in discounted cash flow models include estimates of future
production volumes, throughput and product sales volumes, commodity prices which are consistent with the average of third-party
industry experts and government agencies, refining and chemical margins, drilling and development costs, operating costs and
discount rates which are reflective of the characteristics of the asset group.
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Other Impairment Estimates. Unproved properties are assessed periodically to determine whether they have been impaired.
Significant unproved properties are assessed for impairment individually, and valuation allowances against the capitalized costs are
recorded based on the Corporation's future development plans, the estimated economic chance of success and the length of time that
the Corporation expects to hold the properties. Properties that are not individually significant are aggregated by groups and amortized
based on development risk and average holding period.
Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair
value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the assets are considered impaired and adjusted
to the lower value. Judgment is required to determine if assets are held for sale and to determine the fair value less cost to sell.
Investments in equity companies are assessed for possible impairment when events or changes in circumstances indicate that the
carrying value of an investment may not be recoverable. Examples of key indicators include a history of operating losses, negative
earnings and cash flow outlook, significant downward revisions to oil and gas reserves, and the financial condition and prospects for
the investee’s business segment or geographic region. If the decline in value of the investment is other than temporary, the carrying
value of the investment is written down to fair value. In the absence of market prices for the investment, discounted cash flows are
used to assess fair value, which requires significant judgment.
Recent Impairments. In 2021, the Corporation identified situations where events or changes in circumstances indicated that the
carrying value of certain long-lived assets may not be recoverable and performed impairment assessments. After-tax impairment
charges of $1.0 billion, including impairments of suspended wells, were recognized during the year largely as a result of changes to
Upstream development plans.
In 2020, as part of the Corporation's annual review and approval of its business and strategic plan, a decision was made to no longer
develop a significant portion of the dry gas portfolio in the U.S., Canada and Argentina. The impairment of these assets resulted in
after-tax charges of $18.4 billion in Upstream. Other after-tax impairment charges of $1.1 billion, $0.6 billion and $0.2 billion were
recognized in Upstream, Downstream and Chemical, respectively. These charges include impairments of property, plant and
equipment, goodwill and equity method investments.
In 2019, after-tax impairment charges were $0.2 billion.
Factors which could put further assets at risk of impairment in the future include reductions in the Corporation’s price or margin
outlooks, changes in the allocation of capital or development plans, reduced long-term demand for the Corporation's products, and
operating cost increases which exceed the pace of efficiencies or the pace of oil and natural gas price or margin increases. However,
due to the inherent difficulty in predicting future commodity prices or margins, and the relationship between industry prices and costs,
it is not practicable to reasonably estimate the existence or range of any potential future impairment charges related to the
Corporation’s long-lived assets.
For further information regarding impairments in goodwill, equity method investments, property, plant and equipment and suspended
wells, refer to Notes 3, 7, 9 and 10, respectively.
Asset Retirement Obligations
The Corporation is subject to retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on
a discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the Corporation uses
assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation; technical
assessments of the assets; estimated amounts and timing of settlements; discount rates; and inflation rates. Asset retirement obligations
are disclosed in Note 9.
Suspended Exploratory Well Costs
The Corporation continues capitalization of exploratory well costs when it has found a sufficient quantity of reserves to justify
completion as a producing well and the Corporation is making sufficient progress assessing the reserves and the economic and
operating viability of the project. Exploratory well costs not meeting these criteria are charged to expense. Assessing whether the
Corporation is making sufficient progress on a project requires careful consideration of the facts and circumstances. The facts and
circumstances that support continued capitalization of suspended wells at year-end are disclosed in Note 10.
65
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Pension Benefits
The Corporation and its affiliates sponsor about 80 defined benefit (pension) plans in over 40 countries. The Pension and Other
Postretirement Benefits footnote (Note 17) provides details on pension obligations, fund assets and pension expense.
Some of these plans (primarily non-U.S.) provide pension benefits that are paid directly by their sponsoring affiliates out of corporate
cash flow rather than a separate pension fund because applicable tax rules and regulatory practices do not encourage advance funding.
Book reserves are established for these plans. The portion of the pension cost attributable to employee service is expensed as services
are rendered. The portion attributable to the increase in pension obligations due to the passage of time is expensed over the term of the
obligations, which ends when all benefits are paid. The primary difference in pension expense for unfunded versus funded plans is that
pension expense for funded plans also includes a credit for the expected long-term return on fund assets.
For funded plans, including those in the U.S., pension obligations are financed in advance through segregated assets or insurance
arrangements. These plans are managed in compliance with the requirements of governmental authorities and meet or exceed required
funding levels as measured by relevant actuarial and government standards at the mandated measurement dates. In determining
liabilities and required contributions, these standards often require approaches and assumptions that differ from those used for
accounting purposes.
The Corporation will continue to make contributions to these funded plans as necessary. All defined-benefit pension obligations,
regardless of the funding status of the underlying plans, are fully supported by the financial strength of the Corporation or the
respective sponsoring affiliate.
Pension accounting requires explicit assumptions regarding, among others, the long-term expected earnings rate on fund assets, the
discount rate for the benefit obligations and the long-term rate for future salary increases. Pension assumptions are reviewed annually
by outside actuaries and senior management. These assumptions are adjusted as appropriate to reflect changes in market rates and
outlook. The long-term expected earnings rate on U.S. pension plan assets in 2021 was 5.3 percent. The 10-year and 20-year actual
returns on U.S. pension plan assets were 9 percent and 7 percent, respectively. The Corporation establishes the long-term expected rate
of return by developing a forward-looking, long-term return assumption for each pension fund asset class, taking into account factors
such as the expected real return for the specific asset class and inflation. A single, long-term rate of return is then calculated as the
weighted average of the target asset allocation percentages and the long-term return assumption for each asset class. A worldwide
reduction of 0.5 percent in the long-term rate of return on assets would increase annual pension expense by approximately
$190 million before tax.
Differences between actual returns on fund assets and the long-term expected return are not recognized in pension expense in the year
that the difference occurs. Such differences are deferred, along with other actuarial gains and losses, and are amortized into pension
expense over the expected remaining service life of employees.
Litigation and Tax Contingencies
A variety of claims have been made against the Corporation and certain of its consolidated subsidiaries in a number of pending
lawsuits. The Corporation accrues an undiscounted liability for those contingencies where the incurrence of a loss is probable and the
amount can be reasonably estimated. For contingencies where an unfavorable outcome is reasonably possible and which are
significant, the Corporation discloses the nature of the contingency and where feasible, an estimate of the possible loss. Management
has regular litigation reviews, including updates from corporate and outside counsel, to assess the need for accounting recognition or
disclosure of these contingencies. The status of significant claims is summarized in Note 16.
Management judgment is required related to contingent liabilities and the outcome of litigation because both are difficult to predict.
However, the Corporation has been successful in defending litigation in the past. Payments have not had a material adverse effect on
operations or financial condition. In the Corporation’s experience, large claims often do not result in large awards. Large awards are
often reversed or substantially reduced as a result of appeal or settlement.
The Corporation is subject to income taxation in many jurisdictions around the world. The benefits of uncertain tax positions that the
Corporation has taken or expects to take in its income tax returns are recognized in the financial statements if management concludes
that it is more likely than not that the position will be sustained with the tax authorities. For a position that is likely to be sustained, the
benefit recognized in the financial statements is measured at the largest amount that is greater than 50 percent likely of being realized.
Significant management judgment is required in the accounting for income tax contingencies and tax disputes because the outcomes
are often difficult to predict. The Corporation’s unrecognized tax benefits and a description of open tax years are summarized in
Note 19.
66
MANAGEMENT’S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
Management, including the Corporation’s Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer, is
responsible for establishing and maintaining adequate internal control over the Corporation’s financial reporting. Management
conducted an evaluation of the effectiveness of internal control over financial reporting based on criteria established in Internal
Control – Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission. Based
on this evaluation, management concluded that Exxon Mobil Corporation’s internal control over financial reporting was effective as of
December 31, 2021.
PricewaterhouseCoopers LLP, an independent registered public accounting firm, audited the effectiveness of the Corporation’s
internal control over financial reporting as of December 31, 2021, as stated in their report included in the Financial Section of this
report.
Darren W. Woods
Chief Executive Officer
Kathryn A. Mikells
Senior Vice President and
Chief Financial Officer
Len M. Fox
Vice President and Controller
(Principal Accounting Officer)
67
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
To the Board of Directors and Shareholders of Exxon Mobil Corporation
Opinions on the Financial Statements and Internal Control over Financial Reporting
We have audited the accompanying consolidated balance sheet of Exxon Mobil Corporation and its subsidiaries (the “Corporation”) as
of December 31, 2021 and 2020, and the related consolidated statements of income, of comprehensive income, of changes in equity
and of cash flows for each of the three years in the period ended December 31, 2021, including the related notes (collectively referred
to as the “consolidated financial statements”). We also have audited the Corporation's internal control over financial reporting as of
December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the Committee of
Sponsoring Organizations of the Treadway Commission (COSO).
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of
the Corporation as of December 31, 2021 and 2020, and the results of its operations and its cash flows for each of the three years in
the period ended December 31, 2021 in conformity with accounting principles generally accepted in the United States of America.
Also in our opinion, the Corporation maintained, in all material respects, effective internal control over financial reporting as of
December 31, 2021, based on criteria established in Internal Control - Integrated Framework (2013) issued by the COSO.
Basis for Opinions
The Corporation's management is responsible for these consolidated financial statements, for maintaining effective internal control
over financial reporting, and for its assessment of the effectiveness of internal control over financial reporting, included in the
accompanying Management’s Report on Internal Control Over Financial Reporting. Our responsibility is to express opinions on the
Corporation’s consolidated financial statements and on the Corporation's internal control over financial reporting based on our audits.
We are a public accounting firm registered with the Public Company Accounting Oversight Board (United States) (PCAOB) and are
required to be independent with respect to the Corporation in accordance with the U.S. federal securities laws and the applicable rules
and regulations of the Securities and Exchange Commission and the PCAOB.
We conducted our audits in accordance with the standards of the PCAOB. Those standards require that we plan and perform the audits
to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement, whether due to
error or fraud, and whether effective internal control over financial reporting was maintained in all material respects.
Our audits of the consolidated financial statements included performing procedures to assess the risks of material misstatement of the
consolidated financial statements, whether due to error or fraud, and performing procedures that respond to those risks. Such
procedures included examining, on a test basis, evidence regarding the amounts and disclosures in the consolidated financial
statements. Our audits also included evaluating the accounting principles used and significant estimates made by management, as well
as evaluating the overall presentation of the consolidated financial statements. Our audit of internal control over financial reporting
included obtaining an understanding of internal control over financial reporting, assessing the risk that a material weakness exists, and
testing and evaluating the design and operating effectiveness of internal control based on the assessed risk. Our audits also included
performing such other procedures as we considered necessary in the circumstances. We believe that our audits provide a reasonable
basis for our opinions.
Definition and Limitations of Internal Control over Financial Reporting
A company’s internal control over financial reporting is a process designed to provide reasonable assurance regarding the reliability of
financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting
principles. A company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the
maintenance of records that, in reasonable detail, accurately and fairly reflect the transactions and dispositions of the assets of the
company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in
accordance with generally accepted accounting principles, and that receipts and expenditures of the company are being made only in
accordance with authorizations of management and directors of the company; and (iii) provide reasonable assurance regarding
prevention or timely detection of unauthorized acquisition, use, or disposition of the company’s assets that could have a material effect
on the financial statements.
Because of its inherent limitations, internal control over financial reporting may not prevent or detect misstatements. Also, projections
of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in
conditions, or that the degree of compliance with the policies or procedures may deteriorate.
68
REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM
Critical Audit Matters
The critical audit matter communicated below is a matter arising from the current period audit of the consolidated financial statements
that was communicated or required to be communicated to the audit committee and that (i) relates to accounts or disclosures that are
material to the consolidated financial statements and (ii) involved our especially challenging, subjective, or complex judgments. The
communication of critical audit matters does not alter in any way our opinion on the consolidated financial statements, taken as a
whole, and we are not, by communicating the critical audit matter below, providing a separate opinion on the critical audit matter or
on the accounts or disclosures to which it relates.
The Impact of Proved Oil and Natural Gas Reserves on Upstream Property, Plant and Equipment, Net
As described in Notes 1, 9 and 18 to the consolidated financial statements, the Corporation’s consolidated upstream property, plant
and equipment (PP&E), net balance was $157.0 billion as of December 31, 2021, and the related depreciation and depletion expense
for the year ended December 31, 2021 was $16.7 billion. Management uses the successful efforts method to account for its exploration
and production activities. Costs incurred to purchase, lease, or otherwise acquire a property (whether unproved or proved) are
capitalized when incurred. As disclosed by management, proved oil and natural gas reserve volumes are used as the basis to calculate
unit-of-production depreciation rates for most upstream assets. The estimation of proved oil and natural gas reserve volumes is an
ongoing process based on technical evaluations, commercial and market assessments, and detailed analysis of well information such as
flow rates and reservoir pressure declines, development and production costs, among other factors. As further disclosed by
management, reserve changes are made within a well-established, disciplined process driven by senior level geoscience and
engineering professionals, assisted by the Global Reserves and Resources Group (together “management’s specialists”).
The principal considerations for our determination that performing procedures relating to the impact of proved oil and natural gas
reserves on upstream PP&E, net is a critical audit matter are (i) the significant judgment by management, including the use of
management’s specialists, when developing the estimates of proved oil and natural gas reserve volumes, as the reserve volumes are
based on engineering assumptions and methods, which in turn led to (ii) a high degree of auditor judgment, subjectivity, and effort in
performing procedures and evaluating audit evidence related to the data, methods, and assumptions used by management and its
specialists in developing the estimates of proved oil and natural gas reserve volumes and the assumptions applied to the data related to
future development costs and production costs, as applicable.
Addressing the matter involved performing procedures and evaluating audit evidence in connection with forming our overall opinion
on the consolidated financial statements. These procedures included testing the effectiveness of controls relating to management's
estimates of proved oil and natural gas reserve volumes. The work of management's specialists was used in performing the procedures
to evaluate the reasonableness of the proved oil and natural gas reserve volumes. As a basis for using this work, the specialists'
qualifications were understood and the Corporation's relationship with the specialists was assessed. The procedures performed also
included evaluation of the methods and assumptions used by the specialists, tests of the data used by the specialists, and an evaluation
of the specialists' findings. These procedures also included, among others, testing the completeness and accuracy of the data related to
future development costs and production costs. Additionally, these procedures included evaluating whether the assumptions applied to
the data related to future development costs and production costs were reasonable considering the past performance of the
Corporation.
/s/ PricewaterhouseCoopers LLP
Dallas, Texas
February 23, 2022
We have served as the Corporation’s auditor since 1934.
69
CONSOLIDATED STATEMENT OF INCOME
Revenues and other income
Sales and other operating revenue
Income from equity affiliates
Other income
Total revenues and other income
Costs and other deductions
Crude oil and product purchases
Production and manufacturing expenses
Selling, general and administrative expenses
Depreciation and depletion (includes impairments)
Exploration expenses, including dry holes
Non-service pension and postretirement benefit expense
Interest expense
Other taxes and duties
Total costs and other deductions
Income (loss) before income taxes
Income tax expense (benefit)
Net income (loss) including noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to ExxonMobil
Earnings (loss) per common share (dollars)
Earnings (loss) per common share - assuming dilution (dollars)
Note
Reference
Number
7
3, 9
17
19
19
12
12
2021
2020
2019
(millions of dollars)
276,692
178,574
255,583
6,657
2,291
1,732
1,196
5,441
3,914
285,640
181,502
264,938
155,164
36,035
9,574
20,607
1,054
786
947
30,239
254,406
31,234
7,636
23,598
558
94,007
30,431
10,168
46,009
1,285
1,205
1,158
26,122
210,385
(28,883)
(5,632)
(23,251)
(811)
143,801
36,826
11,398
18,998
1,269
1,235
830
30,525
244,882
20,056
5,282
14,774
434
23,040
(22,440)
14,340
5.39
(5.25)
3.36
5.39
(5.25)
3.36
The information in the Notes to Consolidated Financial Statements is an integral part of these statements.
70
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Net income (loss) including noncontrolling interests
Other comprehensive income (loss) (net of income taxes)
Foreign exchange translation adjustment
Adjustment for foreign exchange translation (gain)/loss included in net income
Postretirement benefits reserves adjustment (excluding amortization)
Amortization and settlement of postretirement benefits reserves adjustment included
in net periodic benefit costs
Total other comprehensive income (loss)
Comprehensive income (loss) including noncontrolling interests
Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income (loss) attributable to ExxonMobil
2021
2020
2019
(millions of dollars)
23,598
(23,251)
14,774
(872)
1,916
14
30
896
2,856
1,735
—
(2,092)
582
225
(2)
3,118
925
3,169
26,767
786
(20,395)
14,999
(743)
588
25,981
(19,652)
14,411
The information in the Notes to Consolidated Financial Statements is an integral part of these statements.
71
CONSOLIDATED BALANCE SHEET
Assets
Current assets
Cash and cash equivalents
Notes and accounts receivable - net
Inventories
Crude oil, products and merchandise
Materials and supplies
Other current assets
Total current assets
Investments, advances and long-term receivables
Property, plant and equipment, at cost, less accumulated depreciation and depletion
Other assets, including intangibles - net
Total assets
Liabilities
Current liabilities
Notes and loans payable
Accounts payable and accrued liabilities
Income taxes payable
Total current liabilities
Long-term debt
Postretirement benefits reserves
Deferred income tax liabilities
Long-term obligations to equity companies
Other long-term obligations
Total liabilities
Commitments and contingencies
Equity
Common stock without par value
(9,000 million shares authorized, 8,019 million shares issued)
Earnings reinvested
Accumulated other comprehensive income
Common stock held in treasury
(3,780 million shares in 2021 and 3,786 million shares in 2020)
ExxonMobil share of equity
Noncontrolling interests
Total equity
Total liabilities and equity
Note
Reference
Number
December 31,
2021
December 31,
2020
(millions of dollars)
6
3
8
9
6
6
14
17
19
16
6,802
32,383
4,364
20,581
14,519
4,261
1,189
59,154
45,195
216,552
18,022
338,923
4,276
50,766
1,601
56,643
43,428
18,430
20,165
2,857
21,717
14,169
4,681
1,098
44,893
43,515
227,553
16,789
332,750
20,458
35,221
684
56,363
47,182
22,415
18,165
3,253
21,242
163,240
168,620
15,746
392,059
(13,764)
15,688
383,943
(16,705)
(225,464)
168,577
7,106
175,683
338,923
(225,776)
157,150
6,980
164,130
332,750
The information in the Notes to Consolidated Financial Statements is an integral part of these statements.
72
CONSOLIDATED STATEMENT OF CASH FLOWS
Cash flows from operating activities
Net income (loss) including noncontrolling interests
Adjustments for noncash transactions
Depreciation and depletion (includes impairments)
Deferred income tax charges/(credits)
Postretirement benefits expense
in excess of/(less than) net payments
Other long-term obligation provisions
in excess of/(less than) payments
Dividends received greater than/(less than) equity in current
earnings of equity companies
Changes in operational working capital, excluding cash and debt
Reduction/(increase)
- Notes and accounts receivable
Increase/(reduction)
- Accounts and other payables
- Inventories
- Other current assets
Net (gain)/loss on asset sales
All other items - net
Net cash provided by operating activities
Cash flows from investing activities
Additions to property, plant and equipment
Proceeds from asset sales and returns of investments
Additional investments and advances
Other investing activities including collection of advances
Net cash used in investing activities
Cash flows from financing activities
Additions to long-term debt
Reductions in long-term debt
Additions to short-term debt (1)
Reductions in short-term debt (1)
Additions/(reductions) in commercial paper, and debt with
three months or less maturity
Contingent consideration payments
Cash dividends to ExxonMobil shareholders
Cash dividends to noncontrolling interests
Changes in noncontrolling interests
Common stock acquired
Net cash provided by (used in) financing activities
Effects of exchange rate changes on cash
Increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year
Note
Reference
Number
3, 9
19
5
2021
2020
2019
(millions of dollars)
23,598
(23,251)
14,774
20,607
303
754
50
46,009
(8,856)
18,998
(944)
498
109
(1,269)
(3,038)
(668)
979
(936)
(12,098)
(489)
(71)
16,820
(1,207)
530
48,129
5,384
(315)
420
(7,142)
4
2,207
14,668
(2,640)
72
(234)
3,725
(1,710)
1,540
29,716
(12,076)
(17,282)
(24,361)
3,176
(2,817)
1,482
999
(4,857)
2,681
3,692
(3,905)
1,490
(10,235)
(18,459)
(23,084)
46
(8)
12,687
(29,396)
(2,983)
(30)
23,186
(8)
35,396
(28,742)
(9,691)
(21)
7,052
(1)
18,967
(18,367)
1,011
—
(14,924)
(14,865)
(14,652)
(224)
(436)
(155)
(35,423)
(33)
2,438
4,364
6,802
(188)
623
(405)
5,285
(219)
1,275
3,089
4,364
(192)
158
(594)
(6,618)
33
47
3,042
3,089
(1) Includes commercial paper with a maturity greater than three months.
The information in the Notes to Consolidated Financial Statements is an integral part of these statements.
73
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
ExxonMobil Share of Equity
Common
Stock
Earnings
Reinvested
Accumulated
Other
Comprehensive
Income
Common
Stock Held
in
Treasury
(millions of dollars)
ExxonMobil
Share of
Equity
Non-
controlling
Interests
Total
Equity
Balance as of December 31, 2018
15,258
421,653
(19,564)
(225,553)
191,794
6,734
198,528
Amortization of stock-based awards
Other
Net income (loss) for the year
Dividends - common shares
Other comprehensive income
Acquisitions, at cost
Dispositions
697
(318)
—
—
—
—
—
—
—
14,340
(14,652)
—
—
—
—
—
—
—
71
—
—
—
—
—
—
—
(594)
312
697
(318)
14,340
(14,652)
71
(594)
312
—
489
434
(192)
154
(331)
—
697
171
14,774
(14,844)
225
(925)
312
Balance as of December 31, 2019
15,637
421,341
(19,493)
(225,835)
191,650
7,288
198,938
Amortization of stock-based awards
Other
Net income (loss) for the year
Dividends - common shares
Cumulative effect of accounting change
Other comprehensive income
Acquisitions, at cost
Dispositions
696
(645)
—
—
—
—
—
—
—
—
(22,440)
(14,865)
(93)
—
—
—
—
—
—
—
—
2,788
—
—
—
—
—
—
—
—
(405)
464
696
(645)
(22,440)
(14,865)
(93)
2,788
(405)
464
—
692
(811)
(188)
(1)
68
(68)
—
696
47
(23,251)
(15,053)
(94)
2,856
(473)
464
Balance as of December 31, 2020
15,688
383,943
(16,705)
(225,776)
157,150
6,980
164,130
Amortization of stock-based awards
Other
Net income (loss) for the year
Dividends - common shares
Other comprehensive income
Acquisitions, at cost
Dispositions
534
(476)
—
—
—
—
—
—
—
23,040
(14,924)
—
—
—
—
—
—
—
2,941
—
—
—
—
—
—
—
(155)
467
534
(476)
23,040
(14,924)
2,941
(155)
467
—
115
558
(224)
228
(551)
—
534
(361)
23,598
(15,148)
3,169
(706)
467
Balance as of December 31, 2021
15,746
392,059
(13,764)
(225,464)
168,577
7,106
175,683
Common Stock Share Activity
Balance as of December 31, 2018
Acquisitions
Dispositions
Balance as of December 31, 2019
Acquisitions
Dispositions
Balance as of December 31, 2020
Acquisitions
Dispositions
Balance as of December 31, 2021
Issued
Held in
Treasury
(millions of shares)
Outstanding
8,019
—
—
8,019
—
—
8,019
—
—
8,019
(3,782)
(8)
5
(3,785)
(8)
7
(3,786)
(2)
8
(3,780)
4,237
(8)
5
4,234
(8)
7
4,233
(2)
8
4,239
The information in the Notes to Consolidated Financial Statements is an integral part of these statements.
74
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The accompanying consolidated financial statements and the supporting and supplemental material are the responsibility of the
The accompanying consolidated financial statements and the supporting and supplemental material are the responsibility of the
management of Exxon Mobil Corporation.
management of Exxon Mobil Corporation.
The Corporation’s principal business involves exploration for, and production of, crude oil and natural gas; manufacture, trade,
The Corporation’s principal business involves exploration for, and production of, crude oil and natural gas; manufacture, trade,
transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of
transport and sale of crude oil, natural gas, petroleum products, petrochemicals and a wide variety of specialty products; and pursuit of
lower-emission business opportunities including carbon capture and storage, hydrogen and biofuels.
lower-emission business opportunities including carbon capture and storage, hydrogen and biofuels.
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires
The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles (GAAP) requires
management to make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of
management to make estimates that affect the reported amounts of assets, liabilities, revenues and expenses and the disclosure of
contingent assets and liabilities. Actual results could differ from these estimates. Prior years’ data have been reclassified in certain
contingent assets and liabilities. Actual results could differ from these estimates. Prior years’ data have been reclassified in certain
cases to conform to the 2021 presentation basis.
cases to conform to the 2021 presentation basis.
1. Summary of Accounting Policies
1. Summary of Accounting Policies
Principles of Consolidation and Accounting for Investments
Principles of Consolidation and Accounting for Investments
The Consolidated Financial Statements include the accounts of subsidiaries the Corporation controls. They also include the
The Consolidated Financial Statements include the accounts of subsidiaries the Corporation controls. They also include the
Corporation’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses. Amounts representing the
Corporation’s share of the undivided interest in certain upstream assets, liabilities, revenues and expenses. Amounts representing the
Corporation’s interest in entities that it does not control, but over which it exercises significant influence, are included in “Investments,
Corporation’s interest in entities that it does not control, but over which it exercises significant influence, are included in “Investments,
advances and long-term receivables”. The Corporation’s share of the net income of these companies is included in the Consolidated
advances and long-term receivables”. The Corporation’s share of the net income of these companies is included in the Consolidated
Statement of Income caption “Income from equity affiliates”.
Statement of Income caption “Income from equity affiliates”.
Majority ownership is normally the indicator of control that is the basis on which subsidiaries are consolidated. However, certain
Majority ownership is normally the indicator of control that is the basis on which subsidiaries are consolidated. However, certain
factors may indicate that a majority-owned investment is not controlled and therefore should be accounted for using the equity method
factors may indicate that a majority-owned investment is not controlled and therefore should be accounted for using the equity method
of accounting. These factors occur where the minority shareholders are granted by law or by contract substantive participating rights.
of accounting. These factors occur where the minority shareholders are granted by law or by contract substantive participating rights.
These include the right to approve operating policies, expense budgets, financing and investment plans, and management
These include the right to approve operating policies, expense budgets, financing and investment plans, and management
compensation and succession plans.
compensation and succession plans.
Investments in equity companies are assessed for possible impairment when events or changes in circumstances indicate that the
Investments in equity companies are assessed for possible impairment when events or changes in circumstances indicate that the
carrying value of an investment may not be recoverable. Examples of key indicators include a history of operating losses, negative
carrying value of an investment may not be recoverable. Examples of key indicators include a history of operating losses, negative
earnings and cash flow outlook, significant downward revisions to oil and gas reserves, and the financial condition and prospects for
earnings and cash flow outlook, significant downward revisions to oil and gas reserves, and the financial condition and prospects for
the investee’s business segment or geographic region. If the decline in value of the investment is other than temporary, the carrying
the investee’s business segment or geographic region. If the decline in value of the investment is other than temporary, the carrying
value of the investment is written down to fair value. In the absence of market prices for the investment, discounted cash flows are
value of the investment is written down to fair value. In the absence of market prices for the investment, discounted cash flows are
used to assess fair value.
used to assess fair value.
Investments in equity securities other than consolidated subsidiaries and equity method investments are measured at fair value with
Investments in equity securities other than consolidated subsidiaries and equity method investments are measured at fair value with
changes in fair value recognized in net income. The Corporation uses the modified approach for equity securities that do not have a
changes in fair value recognized in net income. The Corporation uses the modified approach for equity securities that do not have a
readily determinable fair value. This modified approach measures investments at cost minus impairment, if any, plus or minus changes
readily determinable fair value. This modified approach measures investments at cost minus impairment, if any, plus or minus changes
resulting from observable price changes in orderly transactions in a similar investment of the same issuer.
resulting from observable price changes in orderly transactions in a similar investment of the same issuer.
The Corporation’s share of the cumulative foreign exchange translation adjustment for equity method investments is reported in
The Corporation’s share of the cumulative foreign exchange translation adjustment for equity method investments is reported in
“Accumulated other comprehensive income”.
“Accumulated other comprehensive income”.
Revenue Recognition
Revenue Recognition
The Corporation generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing
The Corporation generally sells crude oil, natural gas and petroleum and chemical products under short-term agreements at prevailing
market prices. In some cases (e.g., natural gas), products may be sold under long-term agreements, with periodic price adjustments to
market prices. In some cases (e.g., natural gas), products may be sold under long-term agreements, with periodic price adjustments to
reflect market conditions. Revenue is recognized at the amount the Corporation expects to receive when the customer has taken
reflect market conditions. Revenue is recognized at the amount the Corporation expects to receive when the customer has taken
control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain
control, which is typically when title transfers and the customer has assumed the risks and rewards of ownership. The prices of certain
sales are based on price indices that are sometimes not available until the next period. In such cases, estimated realizations are accrued
sales are based on price indices that are sometimes not available until the next period. In such cases, estimated realizations are accrued
when the sale is recognized, and are finalized when the price is available. Such adjustments to revenue from performance obligations
when the sale is recognized, and are finalized when the price is available. Such adjustments to revenue from performance obligations
satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Future volume
satisfied in previous periods are not significant. Payment for revenue transactions is typically due within 30 days. Future volume
delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases.
delivery obligations that are unsatisfied at the end of the period are expected to be fulfilled through ordinary production or purchases.
These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price
These performance obligations are based on market prices at the time of the transaction and are fully constrained due to market price
volatility.
volatility.
Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and
Purchases and sales of inventory with the same counterparty that are entered into in contemplation of one another are combined and
recorded as exchanges measured at the book value of the item sold.
recorded as exchanges measured at the book value of the item sold.
“Sales and other operating revenue” and “Notes and accounts receivable” primarily arise from contracts with customers. Long-term
“Sales and other operating revenue” and “Notes and accounts receivable” primarily arise from contracts with customers. Long-term
receivables are primarily from non-customers. Contract assets are mainly from marketing assistance programs and are not significant.
receivables are primarily from non-customers. Contract assets are mainly from marketing assistance programs and are not significant.
Contract liabilities are mainly customer prepayments and accruals of expected volume discounts and are not significant.
Contract liabilities are mainly customer prepayments and accruals of expected volume discounts and are not significant.
75
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Income and Other Taxes
Income and Other Taxes
The Corporation excludes from the Consolidated Statement of Income certain sales and value-added taxes imposed on and concurrent
The Corporation excludes from the Consolidated Statement of Income certain sales and value-added taxes imposed on and concurrent
with revenue-producing transactions with customers and collected on behalf of governmental authorities. Similar taxes, for which the
with revenue-producing transactions with customers and collected on behalf of governmental authorities. Similar taxes, for which the
Corporation is not considered to be an agent for the government, are reported on a gross basis (included in both “Sales and other
Corporation is not considered to be an agent for the government, are reported on a gross basis (included in both “Sales and other
operating revenue” and “Other taxes and duties”).
operating revenue” and “Other taxes and duties”).
The Corporation accounts for U.S. tax on global intangible low-taxed income as an income tax expense in the period in which it is
The Corporation accounts for U.S. tax on global intangible low-taxed income as an income tax expense in the period in which it is
incurred.
incurred.
Derivative Instruments
Derivative Instruments
The Corporation may use derivative instruments for trading purposes and to offset exposures associated with commodity prices,
The Corporation may use derivative instruments for trading purposes and to offset exposures associated with commodity prices,
foreign currency exchange rates and interest rates that arise from existing assets, liabilities, firm commitments and forecasted
foreign currency exchange rates and interest rates that arise from existing assets, liabilities, firm commitments and forecasted
transactions. All derivative instruments, except those designated as normal purchase and normal sale, are recorded at fair value.
transactions. All derivative instruments, except those designated as normal purchase and normal sale, are recorded at fair value.
Derivative assets and liabilities with the same counterparty are netted if the right of offset exists and certain other criteria are met.
Derivative assets and liabilities with the same counterparty are netted if the right of offset exists and certain other criteria are met.
Collateral payables or receivables are netted against derivative assets and derivative liabilities, respectively.
Collateral payables or receivables are netted against derivative assets and derivative liabilities, respectively.
Recognition and classification of the gain or loss that results from adjusting a derivative to fair value depends on the purpose for the
Recognition and classification of the gain or loss that results from adjusting a derivative to fair value depends on the purpose for the
derivative. All gains and losses from derivative instruments for which the Corporation does not apply hedge accounting are
derivative. All gains and losses from derivative instruments for which the Corporation does not apply hedge accounting are
immediately recognized in earnings. The Corporation may designate derivatives as fair value or cash flow hedges. For fair value
immediately recognized in earnings. The Corporation may designate derivatives as fair value or cash flow hedges. For fair value
hedges, the gain or loss from derivative instruments and the offsetting gain or loss from the hedged item are recognized in earnings.
hedges, the gain or loss from derivative instruments and the offsetting gain or loss from the hedged item are recognized in earnings.
For cash flow hedges, the gain or loss from the derivative instrument is initially reported as a component of other comprehensive
For cash flow hedges, the gain or loss from the derivative instrument is initially reported as a component of other comprehensive
income and subsequently reclassified into earnings in the period that the forecasted transaction affects earnings.
income and subsequently reclassified into earnings in the period that the forecasted transaction affects earnings.
Fair Value
Fair Value
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market
participants. Hierarchy levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value.
participants. Hierarchy levels 1, 2 and 3 are terms for the priority of inputs to valuation techniques used to measure fair value.
Hierarchy level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy level 2 inputs are inputs other
Hierarchy level 1 inputs are quoted prices in active markets for identical assets or liabilities. Hierarchy level 2 inputs are inputs other
than quoted prices included within level 1 that are directly or indirectly observable for the asset or liability. Hierarchy level 3 inputs
than quoted prices included within level 1 that are directly or indirectly observable for the asset or liability. Hierarchy level 3 inputs
are inputs that are not observable in the market.
are inputs that are not observable in the market.
Inventories
Inventories
Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under
Crude oil, products and merchandise inventories are carried at the lower of current market value or cost (generally determined under
the last-in, first-out method – LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and
the last-in, first-out method – LIFO). Inventory costs include expenditures and other charges (including depreciation) directly and
indirectly incurred in bringing the inventory to its existing condition and location. Selling expenses and general and administrative
indirectly incurred in bringing the inventory to its existing condition and location. Selling expenses and general and administrative
expenses are reported as period costs and excluded from inventory cost. Inventories of materials and supplies are valued at cost or less.
expenses are reported as period costs and excluded from inventory cost. Inventories of materials and supplies are valued at cost or less.
Property, Plant and Equipment
Property, Plant and Equipment
Cost Basis. The Corporation uses the “successful efforts” method to account for its exploration and production activities. Under this
Cost Basis. The Corporation uses the “successful efforts” method to account for its exploration and production activities. Under this
method, costs are accumulated on a field-by-field basis. Costs incurred to purchase, lease, or otherwise acquire a property (whether
method, costs are accumulated on a field-by-field basis. Costs incurred to purchase, lease, or otherwise acquire a property (whether
unproved or proved) are capitalized when incurred. Exploratory well costs are carried as an asset when the well has found a sufficient
unproved or proved) are capitalized when incurred. Exploratory well costs are carried as an asset when the well has found a sufficient
quantity of reserves to justify its completion as a producing well and where the Corporation is making sufficient progress assessing the
quantity of reserves to justify its completion as a producing well and where the Corporation is making sufficient progress assessing the
reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to
reserves and the economic and operating viability of the project. Exploratory well costs not meeting these criteria are charged to
expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Development
expense. Other exploratory expenditures, including geophysical costs and annual lease rentals, are expensed as incurred. Development
costs, including costs of productive wells and development dry holes, are capitalized.
costs, including costs of productive wells and development dry holes, are capitalized.
Depreciation, Depletion and Amortization. Depreciation, depletion and amortization are primarily determined under either the unit-
Depreciation, Depletion and Amortization. Depreciation, depletion and amortization are primarily determined under either the unit-
of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into
of-production method or the straight-line method, which is based on estimated asset service life taking obsolescence into
consideration.
consideration.
Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and
Acquisition costs of proved properties are amortized using a unit-of-production method, computed on the basis of total proved oil and
natural gas reserve volumes. Capitalized exploratory drilling and development costs associated with productive depletable extractive
natural gas reserve volumes. Capitalized exploratory drilling and development costs associated with productive depletable extractive
properties are amortized using the unit-of-production rates based on the amount of proved developed reserves of oil and gas that are
properties are amortized using the unit-of-production rates based on the amount of proved developed reserves of oil and gas that are
estimated to be recoverable from existing facilities using current operating methods. Under the unit-of-production method, oil and
estimated to be recoverable from existing facilities using current operating methods. Under the unit-of-production method, oil and
natural gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction
natural gas volumes are considered produced once they have been measured through meters at custody transfer or sales transaction
points at the outlet valve on the lease or field storage tank.
points at the outlet valve on the lease or field storage tank.
In the event that the unit-of-production method does not result in an equitable allocation of cost over the economic life of an upstream
In the event that the unit-of-production method does not result in an equitable allocation of cost over the economic life of an upstream
asset, an alternative method is used. The straight-line method is used in limited situations where the expected life of the asset does not
asset, an alternative method is used. The straight-line method is used in limited situations where the expected life of the asset does not
reasonably correlate with that of the underlying reserves. For example, certain assets used in the production of oil and natural gas have
reasonably correlate with that of the underlying reserves. For example, certain assets used in the production of oil and natural gas have
a shorter life than the reserves, and as such, the Corporation uses straight-line depreciation to ensure the asset is fully depreciated by
a shorter life than the reserves, and as such, the Corporation uses straight-line depreciation to ensure the asset is fully depreciated by
the end of its useful life.
the end of its useful life.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the
To the extent that proved reserves for a property are substantially de-booked and that property continues to produce such that the
resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a
resulting depreciation charge does not result in an equitable allocation of cost over the expected life, assets will be depreciated using a
unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of
unit-of-production method based on reserves determined at the most recent SEC price which results in a more meaningful quantity of
proved reserves, appropriately adjusted for production and technical changes.
proved reserves, appropriately adjusted for production and technical changes.
Investments in refinery, chemical process, and lubes basestock manufacturing equipment are generally depreciated on a straight-line
Investments in refinery, chemical process, and lubes basestock manufacturing equipment are generally depreciated on a straight-line
basis over a 25-year life. Service station buildings and fixed improvements are generally depreciated over a 20-year life. Maintenance
basis over a 25-year life. Service station buildings and fixed improvements are generally depreciated over a 20-year life. Maintenance
and repairs, including planned major maintenance, are expensed as incurred. Major renewals and improvements are capitalized and the
and repairs, including planned major maintenance, are expensed as incurred. Major renewals and improvements are capitalized and the
assets replaced are retired.
assets replaced are retired.
Impairment Assessment. The Corporation tests assets or groups of assets for recoverability on an ongoing basis whenever events or
Impairment Assessment. The Corporation tests assets or groups of assets for recoverability on an ongoing basis whenever events or
changes in circumstances indicate that the carrying amounts may not be recoverable. Among the events or changes in circumstances
changes in circumstances indicate that the carrying amounts may not be recoverable. Among the events or changes in circumstances
which could indicate that the carrying value of an asset or asset group may not be recoverable are the following:
which could indicate that the carrying value of an asset or asset group may not be recoverable are the following:
•
•
•
•
•
•
•
•
•
•
•
•
a significant decrease in the market price of a long-lived asset;
a significant decrease in the market price of a long-lived asset;
a significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a
a significant adverse change in the extent or manner in which an asset is being used or in its physical condition including a
significant decrease in current and projected reserve volumes;
significant decrease in current and projected reserve volumes;
a significant adverse change in legal factors or in the business climate that could affect the value, including an adverse action
a significant adverse change in legal factors or in the business climate that could affect the value, including an adverse action
or assessment by a regulator;
or assessment by a regulator;
an accumulation of project costs significantly in excess of the amount originally expected;
an accumulation of project costs significantly in excess of the amount originally expected;
a current-period operating loss combined with a history and forecast of operating or cash flow losses; and
a current-period operating loss combined with a history and forecast of operating or cash flow losses; and
a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before
a current expectation that, more likely than not, a long-lived asset will be sold or otherwise disposed of significantly before
the end of its previously estimated useful life.
the end of its previously estimated useful life.
The Corporation has a robust process to monitor for indicators of potential impairment across its asset groups throughout the year.
The Corporation has a robust process to monitor for indicators of potential impairment across its asset groups throughout the year.
This process is aligned with the requirements of ASC 360 and ASC 932, and relies in part on the Corporation’s planning and
This process is aligned with the requirements of ASC 360 and ASC 932, and relies in part on the Corporation’s planning and
budgeting cycle. Asset valuation analysis, profitability reviews and other periodic control processes assist the Corporation in assessing
budgeting cycle. Asset valuation analysis, profitability reviews and other periodic control processes assist the Corporation in assessing
whether events or changes in circumstances indicate the carrying amounts of any of its assets may not be recoverable.
whether events or changes in circumstances indicate the carrying amounts of any of its assets may not be recoverable.
Because the lifespans of the vast majority of the Corporation’s major assets are measured in decades, the future cash flows of these
Because the lifespans of the vast majority of the Corporation’s major assets are measured in decades, the future cash flows of these
assets are predominantly based on long-term oil and natural gas commodity prices, industry margins, and development and production
assets are predominantly based on long-term oil and natural gas commodity prices, industry margins, and development and production
costs. Significant reductions in the Corporation’s view of oil or natural gas commodity prices or margin ranges, especially the longer-
costs. Significant reductions in the Corporation’s view of oil or natural gas commodity prices or margin ranges, especially the longer-
term prices and margins, and changes in the development plans, including decisions to defer, reduce, or eliminate planned capital
term prices and margins, and changes in the development plans, including decisions to defer, reduce, or eliminate planned capital
spending, can be an indicator of potential impairment. Other events or changes in circumstances, can be indicators of potential
spending, can be an indicator of potential impairment. Other events or changes in circumstances, can be indicators of potential
impairment as well.
impairment as well.
In general, the Corporation does not view temporarily low prices or margins as an indication of impairment. Management believes that
In general, the Corporation does not view temporarily low prices or margins as an indication of impairment. Management believes that
prices over the long term must be sufficient to generate investments in energy supply to meet global demand. Although prices will
prices over the long term must be sufficient to generate investments in energy supply to meet global demand. Although prices will
occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand
occasionally drop significantly, industry prices over the long term will continue to be driven by market supply and demand
fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate
fundamentals. On the supply side, industry production from mature fields is declining. This is being offset by investments to generate
production from new discoveries, field developments and technology, and efficiency advancements. OPEC investment activities and
production from new discoveries, field developments and technology, and efficiency advancements. OPEC investment activities and
production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities,
production policies also have an impact on world oil supplies. The demand side is largely a function of general economic activities,
alternative energy sources and levels of prosperity. During the lifespan of its major assets, the Corporation expects that oil and gas
alternative energy sources and levels of prosperity. During the lifespan of its major assets, the Corporation expects that oil and gas
prices and industry margins will experience significant volatility, and consequently these assets will experience periods of higher
prices and industry margins will experience significant volatility, and consequently these assets will experience periods of higher
earnings and periods of lower earnings, or even losses. In assessing whether events or changes in circumstances indicate the carrying
earnings and periods of lower earnings, or even losses. In assessing whether events or changes in circumstances indicate the carrying
value of an asset may not be recoverable, the Corporation considers recent periods of operating losses in the context of its longer-term
value of an asset may not be recoverable, the Corporation considers recent periods of operating losses in the context of its longer-term
view of prices and margins.
view of prices and margins.
In the Upstream, the standardized measure of discounted cash flows included in the Supplemental Information on Oil and Gas
In the Upstream, the standardized measure of discounted cash flows included in the Supplemental Information on Oil and Gas
Exploration and Production Activities is required to use prices based on the average of first-of-month prices in the year. These prices
Exploration and Production Activities is required to use prices based on the average of first-of-month prices in the year. These prices
represent discrete points in time and could be higher or lower than the Corporation’s price assumptions which are used for impairment
represent discrete points in time and could be higher or lower than the Corporation’s price assumptions which are used for impairment
assessments. The Corporation believes the standardized measure does not provide a reliable estimate of the expected future cash flows
assessments. The Corporation believes the standardized measure does not provide a reliable estimate of the expected future cash flows
to be obtained from the development and production of its oil and gas properties or of the value of its oil and gas reserves and
to be obtained from the development and production of its oil and gas properties or of the value of its oil and gas reserves and
therefore does not consider it relevant in determining whether events or changes in circumstances indicate the need for an impairment
therefore does not consider it relevant in determining whether events or changes in circumstances indicate the need for an impairment
assessment.
assessment.
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Energy Outlook and Cash Flow Assessment. The annual planning and budgeting process, known as the Corporate Plan, is the
Energy Outlook and Cash Flow Assessment. The annual planning and budgeting process, known as the Corporate Plan, is the
mechanism by which resources (capital, operating expenses, and people) are allocated across the Corporation. The foundation for the
mechanism by which resources (capital, operating expenses, and people) are allocated across the Corporation. The foundation for the
assumptions supporting the Corporate Plan is the Energy Outlook, which contains the Corporation’s demand and supply projections
assumptions supporting the Corporate Plan is the Energy Outlook, which contains the Corporation’s demand and supply projections
based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic
based on its assessment of current trends in technology, government policies, consumer preferences, geopolitics, and economic
development. Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future
development. Reflective of the existing global policy environment, the Energy Outlook does not project the degree of required future
policy and technology advancement and deployment for the world, or the Corporation, to meet net-zero by 2050. As future policies
policy and technology advancement and deployment for the world, or the Corporation, to meet net-zero by 2050. As future policies
and technology advancements emerge, they will be incorporated into the Energy Outlook, and the Corporation’s business plans will be
and technology advancements emerge, they will be incorporated into the Energy Outlook, and the Corporation’s business plans will be
updated accordingly.
updated accordingly.
If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the Corporation estimates the
If events or changes in circumstances indicate that the carrying value of an asset may not be recoverable, the Corporation estimates the
future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this
future undiscounted cash flows of the affected properties to judge the recoverability of carrying amounts. In performing this
assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash
assessment, assets are grouped at the lowest level for which there are identifiable cash flows that are largely independent of the cash
flows of other groups of assets. Cash flows used in recoverability assessments are based on assumptions which are developed in the
flows of other groups of assets. Cash flows used in recoverability assessments are based on assumptions which are developed in the
Corporate Plan, which is reviewed and approved by the Board of Directors, and are consistent with the criteria management uses to
Corporate Plan, which is reviewed and approved by the Board of Directors, and are consistent with the criteria management uses to
evaluate investment opportunities. These evaluations make use of the Corporation’s assumptions of future capital allocations, crude oil
evaluate investment opportunities. These evaluations make use of the Corporation’s assumptions of future capital allocations, crude oil
and natural gas commodity prices including price differentials, refining and chemical margins, volumes, development and operating
and natural gas commodity prices including price differentials, refining and chemical margins, volumes, development and operating
costs including greenhouse gas emission prices, and foreign currency exchange rates. Volumes are based on projected field and facility
costs including greenhouse gas emission prices, and foreign currency exchange rates. Volumes are based on projected field and facility
production profiles, throughput, or sales. Management’s estimate of upstream production volumes used for projected cash flows
production profiles, throughput, or sales. Management’s estimate of upstream production volumes used for projected cash flows
makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities. The greenhouse gas emission prices
makes use of proved reserve quantities and may include risk-adjusted unproved reserve quantities. The greenhouse gas emission prices
reflect existing or anticipated policy actions that countries or localities may take in support of Paris Accord pledges. Cash flow
reflect existing or anticipated policy actions that countries or localities may take in support of Paris Accord pledges. Cash flow
estimates for impairment testing exclude the effects of derivative instruments.
estimates for impairment testing exclude the effects of derivative instruments.
Fair value of Impaired Assets. An asset group is impaired if its estimated undiscounted cash flows are less than the asset group's
Fair value of Impaired Assets. An asset group is impaired if its estimated undiscounted cash flows are less than the asset group's
carrying value. Impairments are measured by the amount by which the carrying value exceeds fair value. The assessment of fair value
carrying value. Impairments are measured by the amount by which the carrying value exceeds fair value. The assessment of fair value
is based upon the views of a likely market participant. The principal parameters used to establish fair value include estimates of
is based upon the views of a likely market participant. The principal parameters used to establish fair value include estimates of
acreage values and flowing production metrics from comparable market transactions, market-based estimates of historical cash flow
acreage values and flowing production metrics from comparable market transactions, market-based estimates of historical cash flow
multiples, and discounted cash flows. Inputs and assumptions used in discounted cash flow models include estimates of future
multiples, and discounted cash flows. Inputs and assumptions used in discounted cash flow models include estimates of future
production volumes, throughput and product sales volumes, commodity prices which are consistent with the average of third-party
production volumes, throughput and product sales volumes, commodity prices which are consistent with the average of third-party
industry experts and government agencies, refining and chemical margins, drilling and development costs, operating costs and
industry experts and government agencies, refining and chemical margins, drilling and development costs, operating costs and
discount rates which are reflective of the characteristics of the asset group.
discount rates which are reflective of the characteristics of the asset group.
Other Impairments Related to Property, Plant and Equipment. Unproved properties are assessed periodically to determine whether
Other Impairments Related to Property, Plant and Equipment. Unproved properties are assessed periodically to determine whether
they have been impaired. Significant unproved properties are assessed for impairment individually, and valuation allowances against
they have been impaired. Significant unproved properties are assessed for impairment individually, and valuation allowances against
the capitalized costs are recorded based on the Corporation's future development plans, the estimated economic chance of success and
the capitalized costs are recorded based on the Corporation's future development plans, the estimated economic chance of success and
the length of time that the Corporation expects to hold the properties. Properties that are not individually significant are aggregated by
the length of time that the Corporation expects to hold the properties. Properties that are not individually significant are aggregated by
groups and amortized based on development risk and average holding period.
groups and amortized based on development risk and average holding period.
Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair
Long-lived assets that are held for sale are evaluated for possible impairment by comparing the carrying value of the asset with its fair
value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the assets are considered impaired and adjusted
value less the cost to sell. If the net book value exceeds the fair value less cost to sell, the assets are considered impaired and adjusted
to the lower value. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the
to the lower value. Gains on sales of proved and unproved properties are only recognized when there is neither uncertainty about the
recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the Corporation.
recovery of costs applicable to any interest retained nor any substantial obligation for future performance by the Corporation.
Interest costs incurred to finance expenditures during the construction phase of multiyear projects are capitalized as part of the
Interest costs incurred to finance expenditures during the construction phase of multiyear projects are capitalized as part of the
historical cost of acquiring the constructed assets. The project construction phase commences with the development of the detailed
historical cost of acquiring the constructed assets. The project construction phase commences with the development of the detailed
engineering design and ends when the constructed assets are ready for their intended use. Capitalized interest costs are included in
engineering design and ends when the constructed assets are ready for their intended use. Capitalized interest costs are included in
property, plant and equipment and are depreciated over the service life of the related assets.
property, plant and equipment and are depreciated over the service life of the related assets.
Environmental Liabilities
Environmental Liabilities
Liabilities for environmental costs are recorded when it is probable that obligations have been incurred and the amounts can be
Liabilities for environmental costs are recorded when it is probable that obligations have been incurred and the amounts can be
reasonably estimated. These liabilities are not reduced by possible recoveries from third parties, and projected cash expenditures are
reasonably estimated. These liabilities are not reduced by possible recoveries from third parties, and projected cash expenditures are
not discounted.
not discounted.
Foreign Currency Translation
Foreign Currency Translation
The Corporation selects the functional reporting currency for its international subsidiaries based on the currency of the primary
The Corporation selects the functional reporting currency for its international subsidiaries based on the currency of the primary
economic environment in which each subsidiary operates. Downstream and Chemical operations primarily use the local currency.
economic environment in which each subsidiary operates. Downstream and Chemical operations primarily use the local currency.
However, the U.S. dollar is used in countries with a history of high inflation (primarily in Latin America) and Singapore, which
However, the U.S. dollar is used in countries with a history of high inflation (primarily in Latin America) and Singapore, which
predominantly sells into the U.S. dollar export market. Upstream operations which are relatively self-contained and integrated within a
predominantly sells into the U.S. dollar export market. Upstream operations which are relatively self-contained and integrated within a
particular country, such as in Canada and Europe, use the local currency. Some Upstream operations, primarily in Asia and Africa, use
particular country, such as in Canada and Europe, use the local currency. Some Upstream operations, primarily in Asia and Africa, use
the U.S. dollar because they predominantly sell crude and natural gas production into U.S. dollar-denominated markets.
the U.S. dollar because they predominantly sell crude and natural gas production into U.S. dollar-denominated markets.
For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income.
For all operations, gains or losses from remeasuring foreign currency transactions into the functional currency are included in income.
78
78
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
2. Restructuring Activities
2. Restructuring Activities
During 2020, ExxonMobil conducted an extensive global review of staffing levels and subsequently commenced targeted workforce
During 2020, ExxonMobil conducted an extensive global review of staffing levels and subsequently commenced targeted workforce
reductions within a number of countries to improve efficiency and reduce costs. The programs were completed by the end of 2021 and
reductions within a number of countries to improve efficiency and reduce costs. The programs were completed by the end of 2021 and
included both voluntary and involuntary employee separations as well as reductions in contractors.
included both voluntary and involuntary employee separations as well as reductions in contractors.
In 2021, the Corporation recorded before-tax charges of $58 million, consisting primarily of employee separation costs, associated
In 2021, the Corporation recorded before-tax charges of $58 million, consisting primarily of employee separation costs, associated
with announced workforce reduction programs in Singapore and Europe. These costs are captured in “Selling, general and
with announced workforce reduction programs in Singapore and Europe. These costs are captured in “Selling, general and
administrative expenses” on the Consolidated Statement of Income and reported within Corporate and Financing. The Corporation
administrative expenses” on the Consolidated Statement of Income and reported within Corporate and Financing. The Corporation
does not expect any further charges related to the previously disclosed workforce reduction programs.
does not expect any further charges related to the previously disclosed workforce reduction programs.
The following table summarizes the reserves and charges related to the workforce reduction programs announced in late 2020 and
The following table summarizes the reserves and charges related to the workforce reduction programs announced in late 2020 and
early 2021. These are recorded in “Accounts payable and accrued liabilities” on the Consolidated Balance Sheet and do not include
early 2021. These are recorded in “Accounts payable and accrued liabilities” on the Consolidated Balance Sheet and do not include
charges related to employee reductions associated with any portfolio changes or other projects.
charges related to employee reductions associated with any portfolio changes or other projects.
Beginning Balance
Beginning Balance
Additions/adjustments
Additions/adjustments
Payments made
Payments made
Ending Balance
Ending Balance
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
403
403
58
58
(384)
(384)
77
77
—
—
450
450
(47)
(47)
403
403
The cash outflows associated with the remaining liability balance of $77 million at December 31, 2021 will occur over the next few
The cash outflows associated with the remaining liability balance of $77 million at December 31, 2021 will occur over the next few
years, mainly in the form of monthly payments.
years, mainly in the form of monthly payments.
79
79
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
3. Miscellaneous Financial Information
3. Miscellaneous Financial Information
Research and development expenses totaled $843 million in 2021, $1,016 million in 2020, and $1,214 million in 2019.
Research and development expenses totaled $843 million in 2021, $1,016 million in 2020, and $1,214 million in 2019.
Net income included before-tax aggregate foreign exchange transaction losses of $18 million, $24 million and $104 million in 2021,
Net income included before-tax aggregate foreign exchange transaction losses of $18 million, $24 million and $104 million in 2021,
2020 and 2019, respectively.
2020 and 2019, respectively.
In 2021, 2020, and 2019, net income included gains of $54 million, $41 million, and $523 million, respectively, attributable to the
In 2021, 2020, and 2019, net income included gains of $54 million, $41 million, and $523 million, respectively, attributable to the
combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to
combined effects of LIFO inventory accumulations and drawdowns. The aggregate replacement cost of inventories was estimated to
exceed their LIFO carrying values by $14.0 billion and $5.4 billion at December 31, 2021, and 2020, respectively.
exceed their LIFO carrying values by $14.0 billion and $5.4 billion at December 31, 2021, and 2020, respectively.
Crude oil, products and merchandise as of year-end 2021 and 2020 consist of the following:
Crude oil, products and merchandise as of year-end 2021 and 2020 consist of the following:
Crude oil
Crude oil
Petroleum products
Petroleum products
Chemical products
Chemical products
Gas/other
Gas/other
Total
Total
Dec 31, 2021
Dec 31, 2021
Dec 31, 2020
Dec 31, 2020
(millions of dollars)
(millions of dollars)
4,162
4,162
5,081
5,081
3,354
3,354
1,922
1,922
14,519
14,519
5,354
5,354
5,138
5,138
3,023
3,023
654
654
14,169
14,169
Mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in its market
Mainly as a result of declines in prices for crude oil, natural gas and petroleum products and a significant decline in its market
capitalization at the end of the first quarter of 2020, the Corporation recognized before-tax goodwill impairment charges of
capitalization at the end of the first quarter of 2020, the Corporation recognized before-tax goodwill impairment charges of
$611 million in Upstream, Downstream, and Chemical reporting units. Fair value of the goodwill reporting units primarily reflected
$611 million in Upstream, Downstream, and Chemical reporting units. Fair value of the goodwill reporting units primarily reflected
market-based estimates of historical EBITDA multiples at the end of the first quarter. Charges related to goodwill impairments in 2020
market-based estimates of historical EBITDA multiples at the end of the first quarter. Charges related to goodwill impairments in 2020
are included in “Depreciation and depletion” on the Consolidated Statement of Income.
are included in “Depreciation and depletion” on the Consolidated Statement of Income.
80
80
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
4. Other Comprehensive Income Information
4. Other Comprehensive Income Information
ExxonMobil Share of Accumulated Other
Comprehensive Income
ExxonMobil Share of Accumulated Other
Comprehensive Income
Balance as of December 31, 2018
Balance as of December 31, 2018
Current period change excluding amounts reclassified from accumulated other
comprehensive income
Current period change excluding amounts reclassified from accumulated other
comprehensive income
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income
Total change in accumulated other comprehensive income
Total change in accumulated other comprehensive income
Balance as of December 31, 2019
Balance as of December 31, 2019
comprehensive income (1)
comprehensive income (1)
Current period change excluding amounts reclassified from accumulated other
Current period change excluding amounts reclassified from accumulated other
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income
Total change in accumulated other comprehensive income
Total change in accumulated other comprehensive income
Balance as of December 31, 2020
Balance as of December 31, 2020
comprehensive income (1)
comprehensive income (1)
Current period change excluding amounts reclassified from accumulated other
Current period change excluding amounts reclassified from accumulated other
Amounts reclassified from accumulated other comprehensive income
Amounts reclassified from accumulated other comprehensive income
Total change in accumulated other comprehensive income
Total change in accumulated other comprehensive income
Balance as of December 31, 2021
Balance as of December 31, 2021
Cumulative
Foreign
Cumulative
Exchange
Foreign
Translation
Exchange
Adjustment
Translation
Adjustment
Postretirement
Benefits
Postretirement
Reserves
Benefits
Adjustment
Reserves
Adjustment
(millions of dollars)
(millions of dollars)
(13,881)
(13,881)
1,435
1,435
—
—
1,435
1,435
(12,446)
(12,446)
(5,683)
(5,683)
(1,927)
(1,927)
563
563
(1,364)
(1,364)
(7,047)
(7,047)
1,818
1,818
14
14
1,832
1,832
(10,614)
(10,614)
(883)
(883)
(2)
(2)
(885)
(885)
(11,499)
(11,499)
95
95
861
861
956
956
(6,091)
(6,091)
2,938
2,938
888
888
3,826
3,826
(2,265)
(2,265)
Total
Total
(19,564)
(19,564)
(492)
(492)
563
563
71
71
(19,493)
(19,493)
1,913
1,913
875
875
2,788
2,788
(16,705)
(16,705)
2,055
2,055
886
886
2,941
2,941
(13,764)
(13,764)
(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $329 million and
(1) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $329 million and
$(355) million in 2021 and 2020, respectively.
$(355) million in 2021 and 2020, respectively.
Amounts Reclassified Out of Accumulated Other
Comprehensive Income - Before-tax Income/(Expense)
Amounts Reclassified Out of Accumulated Other
Comprehensive Income - Before-tax Income/(Expense)
Foreign exchange translation gain/(loss) included in net income
Foreign exchange translation gain/(loss) included in net income
Amortization and settlement of postretirement benefits reserves adjustment included
Amortization and settlement of postretirement benefits reserves adjustment included
(Statement of Income line: Other income)
(Statement of Income line: Other income)
in net periodic benefit costs
(Statement of Income line: Non-service pension and postretirement benefit
in net periodic benefit costs
expense)
(Statement of Income line: Non-service pension and postretirement benefit
expense)
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
2
2
(14)
(14)
2019
2019
—
—
(1,229)
(1,229)
(1,158)
(1,158)
(751)
(751)
Income Tax (Expense)/Credit For
Components of Other Comprehensive Income
Income Tax (Expense)/Credit For
Components of Other Comprehensive Income
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
118
118
109
109
(262)
(262)
(35)
(35)
(114)
(114)
(983)
(983)
(304)
(304)
(1,401)
(1,401)
2019
2019
88
88
719
719
(169)
(169)
638
638
Foreign exchange translation adjustment
Foreign exchange translation adjustment
Postretirement benefits reserves adjustment (excluding amortization)
Postretirement benefits reserves adjustment (excluding amortization)
Amortization and settlement of postretirement benefits reserves adjustment included
Amortization and settlement of postretirement benefits reserves adjustment included
Total
Total
in net periodic benefit costs
in net periodic benefit costs
81
81
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
5. Cash Flow Information
5. Cash Flow Information
The Consolidated Statement of Cash Flows provides information about changes in cash and cash equivalents. Highly liquid
The Consolidated Statement of Cash Flows provides information about changes in cash and cash equivalents. Highly liquid
investments with maturities of three months or less when acquired are classified as cash equivalents.
investments with maturities of three months or less when acquired are classified as cash equivalents.
For 2021, the “Net (gain)/loss on asset sales” on the Consolidated Statement of Cash Flows includes before-tax amounts from the sale
For 2021, the “Net (gain)/loss on asset sales” on the Consolidated Statement of Cash Flows includes before-tax amounts from the sale
of non-operated upstream assets in the United Kingdom Central and Northern North Sea and the sale of ExxonMobil's global
of non-operated upstream assets in the United Kingdom Central and Northern North Sea and the sale of ExxonMobil's global
Santoprene business. The United Kingdom Central and Northern North Sea assets were sold to Neo Energy, resulting in a before-tax
Santoprene business. The United Kingdom Central and Northern North Sea assets were sold to Neo Energy, resulting in a before-tax
gain of $0.4 billion and cash proceeds of $0.7 billion in 2021. The Santoprene business, including two chemical manufacturing sites in
gain of $0.4 billion and cash proceeds of $0.7 billion in 2021. The Santoprene business, including two chemical manufacturing sites in
Pensacola, Florida and Newport, Wales, was sold to Celanese, resulting in a before-tax gain of $0.8 billion and cash proceeds of
Pensacola, Florida and Newport, Wales, was sold to Celanese, resulting in a before-tax gain of $0.8 billion and cash proceeds of
$1.1 billion in 2021. For 2019, the “Net (gain)/loss on asset sales” line includes before-tax amounts from the sale of non-operated
$1.1 billion in 2021. For 2019, the “Net (gain)/loss on asset sales” line includes before-tax amounts from the sale of non-operated
upstream assets in Norway and upstream asset transactions in the U.S. The Norway assets were sold for $4.5 billion, resulting in a
upstream assets in Norway and upstream asset transactions in the U.S. The Norway assets were sold for $4.5 billion, resulting in a
gain of $3.7 billion and cash proceeds of $3.1 billion in 2019.
gain of $3.7 billion and cash proceeds of $3.1 billion in 2019.
For 2020, the “Depreciation and depletion” and “Deferred income tax charges/(credits)” on the Consolidated Statement of Cash Flows
For 2020, the “Depreciation and depletion” and “Deferred income tax charges/(credits)” on the Consolidated Statement of Cash Flows
include impacts from asset impairments, primarily in Upstream.
include impacts from asset impairments, primarily in Upstream.
Income taxes paid
Income taxes paid
Cash interest paid
Cash interest paid
Included in cash flows from operating activities
Included in cash flows from operating activities
Capitalized, included in cash flows from investing activities
Capitalized, included in cash flows from investing activities
Total cash interest paid
Total cash interest paid
6. Additional Working Capital Information
6. Additional Working Capital Information
Notes and accounts receivable
Notes and accounts receivable
Trade, less reserves of $159 million and $96 million
Trade, less reserves of $159 million and $96 million
Other, less reserves of $381 million and $378 million
Other, less reserves of $381 million and $378 million
Total
Total
Notes and loans payable
Notes and loans payable
Bank loans
Bank loans
Commercial paper
Commercial paper
Long-term debt due within one year
Long-term debt due within one year
Total
Total
2021
2021
5,341
5,341
819
819
655
655
1,474
1,474
2020
2020
(millions of dollars)
(millions of dollars)
2,428
2,428
786
786
665
665
1,451
1,451
2019
2019
7,018
7,018
560
560
731
731
1,291
1,291
Dec 31, 2021
Dec 31, 2021
Dec 31, 2020
Dec 31, 2020
(millions of dollars)
(millions of dollars)
26,883
26,883
5,500
5,500
32,383
32,383
276
276
1,608
1,608
2,392
2,392
4,276
4,276
16,339
16,339
4,242
4,242
20,581
20,581
222
222
17,306
17,306
2,930
2,930
20,458
20,458
Accounts payable and accrued liabilities
Accounts payable and accrued liabilities
Trade payables
Trade payables
Payables to equity companies
Payables to equity companies
Accrued taxes other than income taxes
Accrued taxes other than income taxes
Other
Other
17,499
17,499
6,476
6,476
3,408
3,408
7,838
7,838
35,221
35,221
The Corporation has short-term committed lines of credit of $10.7 billion which were unused as of December 31, 2021. These lines
The Corporation has short-term committed lines of credit of $10.7 billion which were unused as of December 31, 2021. These lines
are available for general corporate purposes.
are available for general corporate purposes.
The weighted-average interest rate on short-term borrowings outstanding was 0.2 percent and 0.2 percent at December 31, 2021, and
The weighted-average interest rate on short-term borrowings outstanding was 0.2 percent and 0.2 percent at December 31, 2021, and
2020, respectively.
2020, respectively.
26,623
26,623
8,885
8,885
3,896
3,896
11,362
11,362
50,766
50,766
Total
Total
82
82
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
7. Equity Company Information
7. Equity Company Information
The summarized financial information below includes amounts related to certain less-than-majority-owned companies and majority-
The summarized financial information below includes amounts related to certain less-than-majority-owned companies and majority-
owned subsidiaries where minority shareholders possess the right to participate in significant management decisions (see Note 1).
owned subsidiaries where minority shareholders possess the right to participate in significant management decisions (see Note 1).
These companies are primarily engaged in oil and gas exploration and production, and natural gas marketing in North America;
These companies are primarily engaged in oil and gas exploration and production, and natural gas marketing in North America;
natural gas exploration, production and distribution in Europe; liquefied natural gas (LNG) operations and transportation of crude oil
natural gas exploration, production and distribution in Europe; liquefied natural gas (LNG) operations and transportation of crude oil
in Africa; and exploration, production, LNG operations, and the manufacture and sale of petroleum and petrochemical products in
in Africa; and exploration, production, LNG operations, and the manufacture and sale of petroleum and petrochemical products in
Asia and the Middle East. Also included are several refining, petrochemical manufacturing and marketing ventures.
Asia and the Middle East. Also included are several refining, petrochemical manufacturing and marketing ventures.
The share of total equity company revenues from sales to ExxonMobil consolidated companies was 10 percent, 11 percent and
The share of total equity company revenues from sales to ExxonMobil consolidated companies was 10 percent, 11 percent and
13 percent in the years 2021, 2020 and 2019, respectively.
13 percent in the years 2021, 2020 and 2019, respectively.
The Corporation’s ownership in these ventures is in the form of shares in corporate joint ventures as well as interests in partnerships.
The Corporation’s ownership in these ventures is in the form of shares in corporate joint ventures as well as interests in partnerships.
Differences between the company’s carrying value of an equity investment and its underlying equity in the net assets of the affiliate
Differences between the company’s carrying value of an equity investment and its underlying equity in the net assets of the affiliate
are assigned to the extent practicable to specific assets and liabilities based on the company’s analysis of the factors giving rise to the
are assigned to the extent practicable to specific assets and liabilities based on the company’s analysis of the factors giving rise to the
difference. The amortization of this difference, as appropriate, is included in “Income from equity affiliates” on the Consolidated
difference. The amortization of this difference, as appropriate, is included in “Income from equity affiliates” on the Consolidated
Statement of Income.
Statement of Income.
Impairments related to upstream equity investments of $0.2 billion and $0.6 billion in 2021 and 2020, respectively, are included in
Impairments related to upstream equity investments of $0.2 billion and $0.6 billion in 2021 and 2020, respectively, are included in
“Income from equity affiliates” or “Other income” on the Consolidated Statement of Income.
“Income from equity affiliates” or “Other income” on the Consolidated Statement of Income.
2020
2020
2019
2019
2021
2021
Equity Company
Financial Summary
Equity Company
Financial Summary
Total
Total
ExxonMobil
Share
ExxonMobil
Share
Total revenues
Total revenues
Income before income taxes
Income before income taxes
Income taxes
Income taxes
Income from equity affiliates
Income from equity affiliates
Current assets
Current assets
Long-term assets
Long-term assets
Total assets
Total assets
Current liabilities
Current liabilities
Long-term liabilities
Long-term liabilities
Net assets
Net assets
116,972
116,972
35,142
35,142
11,010
11,010
24,132
24,132
45,267
45,267
150,699
150,699
195,966
195,966
28,862
28,862
63,138
63,138
103,966
103,966
34,995
34,995
9,278
9,278
2,763
2,763
6,515
6,515
15,542
15,542
41,614
41,614
57,156
57,156
8,297
8,297
19,084
19,084
29,775
29,775
Total
Total
ExxonMobil
Share
ExxonMobil
Share
(millions of dollars)
(millions of dollars)
69,954
69,954
12,743
12,743
4,333
4,333
8,410
8,410
21,282
21,282
2,830
2,830
870
870
1,960
1,960
33,419
33,419
150,358
150,358
183,777
183,777
18,827
18,827
66,053
66,053
98,897
98,897
11,969
11,969
41,457
41,457
53,426
53,426
5,245
5,245
19,927
19,927
28,254
28,254
Total
Total
ExxonMobil
Share
ExxonMobil
Share
102,365
102,365
29,424
29,424
9,725
9,725
19,699
19,699
36,035
36,035
143,321
143,321
179,356
179,356
24,583
24,583
61,022
61,022
93,751
93,751
31,240
31,240
7,927
7,927
2,500
2,500
5,427
5,427
12,661
12,661
40,001
40,001
52,662
52,662
6,939
6,939
18,158
18,158
27,565
27,565
83
83
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A list of significant equity companies as of December 31, 2021, together with the Corporation’s percentage ownership interest, is
A list of significant equity companies as of December 31, 2021, together with the Corporation’s percentage ownership interest, is
detailed below:
detailed below:
Percentage
Ownership
Percentage
Interest
Ownership
Interest
48
48
7
7
50
50
8
8
25
25
50
50
25
25
30
30
30
30
10
10
36
36
50
50
33
33
20
20
10
10
24
24
25
25
31
31
30
30
24
24
25
25
71
71
45
45
25
25
12
12
50
50
50
50
50
50
50
50
Upstream
Upstream
Aera Energy LLC
Aera Energy LLC
Barzan Gas Company Limited
Barzan Gas Company Limited
BEB Erdgas und Erdoel GmbH & Co. KG
BEB Erdgas und Erdoel GmbH & Co. KG
Caspian Pipeline Consortium
Caspian Pipeline Consortium
CORAL FLNG, S.A.
CORAL FLNG, S.A.
Cross Timbers Energy, LLC
Cross Timbers Energy, LLC
GasTerra B.V.
GasTerra B.V.
Golden Pass LNG Terminal LLC
Golden Pass LNG Terminal LLC
Golden Pass Pipeline LLC
Golden Pass Pipeline LLC
Marine Well Containment Company LLC
Marine Well Containment Company LLC
Mozambique Rovuma Venture, S.p.A.
Mozambique Rovuma Venture, S.p.A.
Nederlandse Aardolie Maatschappij B.V.
Nederlandse Aardolie Maatschappij B.V.
Papua New Guinea Liquefied Natural Gas Global Company LDC
Papua New Guinea Liquefied Natural Gas Global Company LDC
Permian Highway Pipeline LLC
Permian Highway Pipeline LLC
Qatar Liquefied Gas Company Limited
Qatar Liquefied Gas Company Limited
Qatar Liquefied Gas Company Limited (2)
Qatar Liquefied Gas Company Limited (2)
Ras Laffan Liquefied Natural Gas Company Limited
Ras Laffan Liquefied Natural Gas Company Limited
Ras Laffan Liquefied Natural Gas Company Limited (II)
Ras Laffan Liquefied Natural Gas Company Limited (II)
Ras Laffan Liquefied Natural Gas Company Limited (3)
Ras Laffan Liquefied Natural Gas Company Limited (3)
South Hook LNG Terminal Company Limited
South Hook LNG Terminal Company Limited
Tengizchevroil, LLP
Tengizchevroil, LLP
Terminale GNL Adriatico S.r.l.
Terminale GNL Adriatico S.r.l.
Downstream
Downstream
Alberta Products Pipe Line Ltd.
Alberta Products Pipe Line Ltd.
Fujian Refining & Petrochemical Co. Ltd.
Fujian Refining & Petrochemical Co. Ltd.
Permian Express Partners LLC
Permian Express Partners LLC
Saudi Aramco Mobil Refinery Company Ltd.
Saudi Aramco Mobil Refinery Company Ltd.
Chemical
Chemical
Al-Jubail Petrochemical Company
Al-Jubail Petrochemical Company
Gulf Coast Growth Ventures LLC
Gulf Coast Growth Ventures LLC
Saudi Yanbu Petrochemical Co.
Saudi Yanbu Petrochemical Co.
84
84
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
8. Investments, Advances and Long-Term Receivables
8. Investments, Advances and Long-Term Receivables
Equity method company investments and advances
Equity method company investments and advances
Investments
Investments
Advances, net of allowances of $34 million and $31 million
Advances, net of allowances of $34 million and $31 million
Total equity method company investments and advances
Total equity method company investments and advances
Equity securities carried at fair value and other investments at adjusted cost basis
Equity securities carried at fair value and other investments at adjusted cost basis
Long-term receivables and miscellaneous, net of reserves of $5,974 million and $6,115 million
Long-term receivables and miscellaneous, net of reserves of $5,974 million and $6,115 million
Total
Total
Dec 31, 2021
Dec 31, 2021
Dec 31, 2020
Dec 31, 2020
(millions of dollars)
(millions of dollars)
31,225
31,225
8,326
8,326
39,551
39,551
138
138
5,506
5,506
45,195
45,195
29,772
29,772
8,812
8,812
38,584
38,584
143
143
4,788
4,788
43,515
43,515
9. Property, Plant and Equipment and Asset Retirement Obligations
9. Property, Plant and Equipment and Asset Retirement Obligations
Property, Plant and Equipment
Property, Plant and Equipment
Upstream
Upstream
Downstream
Downstream
Chemical
Chemical
Other
Other
Total
Total
December 31, 2021
December 31, 2021
December 31, 2020
December 31, 2020
Cost
Cost
375,813
375,813
57,947
57,947
43,288
43,288
18,014
18,014
495,062
495,062
(millions of dollars)
(millions of dollars)
Net
Net
156,951
156,951
27,417
27,417
21,793
21,793
10,391
10,391
216,552
216,552
Cost
Cost
386,614
386,614
57,922
57,922
42,868
42,868
17,918
17,918
505,322
505,322
Net
Net
167,472
167,472
27,716
27,716
21,924
21,924
10,441
10,441
227,553
227,553
In 2021, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain
In 2021, the Corporation identified situations where events or changes in circumstances indicated that the carrying value of certain
long-lived assets may not be recoverable and performed impairment assessments. Before-tax impairment charges of $1.2 billion,
long-lived assets may not be recoverable and performed impairment assessments. Before-tax impairment charges of $1.2 billion,
including impairments of suspended wells, were recognized during the year largely as a result of changes to Upstream development
including impairments of suspended wells, were recognized during the year largely as a result of changes to Upstream development
plans.
plans.
In 2020, as part of the Corporation's annual review and approval of its business and strategic plan, a decision was made to no longer
In 2020, as part of the Corporation's annual review and approval of its business and strategic plan, a decision was made to no longer
develop a significant portion of the dry gas portfolio in the U.S., Canada and Argentina. The impairment of these assets resulted in
develop a significant portion of the dry gas portfolio in the U.S., Canada and Argentina. The impairment of these assets resulted in
before-tax charges of $24.4 billion in Upstream. Other before-tax impairment charges in 2020 included $0.9 billion in Upstream,
before-tax charges of $24.4 billion in Upstream. Other before-tax impairment charges in 2020 included $0.9 billion in Upstream,
$0.5 billion in Downstream, and $0.1 billion in Chemical. In 2019, before-tax impairment charges were $0.1 billion.
$0.5 billion in Downstream, and $0.1 billion in Chemical. In 2019, before-tax impairment charges were $0.1 billion.
Impairment charges are primarily recognized in the lines “Depreciation and depletion” and “Exploration expenses, including dry
Impairment charges are primarily recognized in the lines “Depreciation and depletion” and “Exploration expenses, including dry
holes” on the Consolidated Statement of Income. Accumulated depreciation and depletion totaled $278,510 million at the end of 2021
holes” on the Consolidated Statement of Income. Accumulated depreciation and depletion totaled $278,510 million at the end of 2021
and $277,769 million at the end of 2020.
and $277,769 million at the end of 2020.
85
85
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Asset Retirement Obligations
Asset Retirement Obligations
The Corporation incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a
The Corporation incurs retirement obligations for certain assets. The fair values of these obligations are recorded as liabilities on a
discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the Corporation uses
discounted basis, which is typically at the time the assets are installed. In the estimation of fair value, the Corporation uses
assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical
assumptions and judgments regarding such factors as the existence of a legal obligation for an asset retirement obligation, technical
assessments of the assets, estimated amounts and timing of settlements, discount rates, and inflation rates. Asset retirement obligations
assessments of the assets, estimated amounts and timing of settlements, discount rates, and inflation rates. Asset retirement obligations
incurred in the current period were Level 3 fair value measurements. The costs associated with these liabilities are capitalized as part
incurred in the current period were Level 3 fair value measurements. The costs associated with these liabilities are capitalized as part
of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present
of the related assets and depreciated as the reserves are produced. Over time, the liabilities are accreted for the change in their present
value.
value.
Asset retirement obligations for downstream and chemical facilities generally become firm at the time the facilities are permanently
Asset retirement obligations for downstream and chemical facilities generally become firm at the time the facilities are permanently
shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these
shut down and dismantled. These obligations may include the costs of asset disposal and additional soil remediation. However, these
sites have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations
sites have indeterminate lives based on plans for continued operations and as such, the fair value of the conditional legal obligations
cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.
cannot be measured, since it is impossible to estimate the future settlement dates of such obligations.
The following table summarizes the activity in the liability for asset retirement obligations:
The following table summarizes the activity in the liability for asset retirement obligations:
Balance at January 1
Balance at January 1
Accretion expense and other provisions
Accretion expense and other provisions
Reduction due to property sales
Reduction due to property sales
Payments made
Payments made
Liabilities incurred
Liabilities incurred
Foreign currency translation
Foreign currency translation
Revisions
Revisions
Balance at December 31
Balance at December 31
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
11,247
11,247
548
548
(1,002)
(1,002)
(444)
(444)
42
42
(147)
(147)
386
386
10,630
10,630
11,280
11,280
584
584
(77)
(77)
(669)
(669)
26
26
239
239
(136)
(136)
11,247
11,247
2019
2019
12,103
12,103
649
649
(1,085)
(1,085)
(827)
(827)
89
89
84
84
267
267
11,280
11,280
The long-term Asset Retirement Obligations were $9,985 million and $10,558 million at December 31, 2021, and 2020, respectively,
The long-term Asset Retirement Obligations were $9,985 million and $10,558 million at December 31, 2021, and 2020, respectively,
and are included in “Other long-term obligations” on the Consolidated Balance Sheet. Estimated cash payments in 2022 and 2023 are
and are included in “Other long-term obligations” on the Consolidated Balance Sheet. Estimated cash payments in 2022 and 2023 are
$645 million and $648 million, respectively.
$645 million and $648 million, respectively.
86
86
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
10. Accounting for Suspended Exploratory Well Costs
10. Accounting for Suspended Exploratory Well Costs
The Corporation continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify
The Corporation continues capitalization of exploratory well costs when the well has found a sufficient quantity of reserves to justify
its completion as a producing well and the Corporation is making sufficient progress assessing the reserves and the economic and
its completion as a producing well and the Corporation is making sufficient progress assessing the reserves and the economic and
operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not
operating viability of the project. The term “project” as used in this report can refer to a variety of different activities and does not
necessarily have the same meaning as in any government payment transparency reports.
necessarily have the same meaning as in any government payment transparency reports.
The following two tables provide details of the changes in the balance of suspended exploratory well costs as well as an aging
The following two tables provide details of the changes in the balance of suspended exploratory well costs as well as an aging
summary of those costs.
summary of those costs.
Change in capitalized suspended exploratory well costs:
Change in capitalized suspended exploratory well costs:
2019
2019
2021
2021
2020
2020
Balance beginning at January 1
Balance beginning at January 1
Additions pending the determination of proved reserves
Additions pending the determination of proved reserves
Charged to expense
Charged to expense
Reclassifications to wells, facilities and equipment based on the
determination of proved reserves
Reclassifications to wells, facilities and equipment based on the
determination of proved reserves
Divestments/Other
Divestments/Other
Ending balance at December 31
Ending balance at December 31
Ending balance attributed to equity companies included above
Ending balance attributed to equity companies included above
Period end capitalized suspended exploratory well costs:
Period end capitalized suspended exploratory well costs:
Capitalized for a period of one year or less
Capitalized for a period of one year or less
Capitalized for a period of between one and five years
Capitalized for a period of between one and five years
Capitalized for a period of between five and ten years
Capitalized for a period of between five and ten years
Capitalized for a period of greater than ten years
Capitalized for a period of greater than ten years
Capitalized for a period greater than one year - subtotal
Capitalized for a period greater than one year - subtotal
Total
Total
(millions of dollars)
(millions of dollars)
4,382
4,382
420
420
(325)
(325)
(328)
(328)
(29)
(29)
4,120
4,120
306
306
4,613
4,613
208
208
(318)
(318)
(174)
(174)
53
53
4,382
4,382
306
306
2021
2021
420
420
1,642
1,642
1,657
1,657
401
401
3,700
3,700
4,120
4,120
(millions of dollars)
(millions of dollars)
2020
2020
208
208
1,828
1,828
1,932
1,932
414
414
4,174
4,174
4,382
4,382
4,160
4,160
532
532
(46)
(46)
(37)
(37)
4
4
4,613
4,613
306
306
2019
2019
532
532
2,206
2,206
1,411
1,411
464
464
4,081
4,081
4,613
4,613
Exploration activity often involves drilling multiple wells, over a number of years, to fully evaluate a project. The table below
Exploration activity often involves drilling multiple wells, over a number of years, to fully evaluate a project. The table below
provides a breakdown of the number of projects with only exploratory well costs capitalized for a period of one year or less and those
provides a breakdown of the number of projects with only exploratory well costs capitalized for a period of one year or less and those
that have had exploratory well costs capitalized for a period greater than one year.
that have had exploratory well costs capitalized for a period greater than one year.
Number of projects that only have exploratory well costs capitalized for a
period of one year or less
Number of projects that only have exploratory well costs capitalized for a
period of one year or less
Number of projects that have exploratory well costs capitalized for a period
greater than one year
Number of projects that have exploratory well costs capitalized for a period
greater than one year
Total
Total
2021
2021
4
4
30
30
34
34
2020
2020
3
3
34
34
37
37
2019
2019
4
4
46
46
50
50
Of the 30 projects that have exploratory well costs capitalized for a period greater than one year as of December 31, 2021, 13 projects
Of the 30 projects that have exploratory well costs capitalized for a period greater than one year as of December 31, 2021, 13 projects
have drilling in the preceding year or exploratory activity planned in the next two years, while the remaining 17 projects are those with
have drilling in the preceding year or exploratory activity planned in the next two years, while the remaining 17 projects are those with
completed exploratory activity progressing toward development.
completed exploratory activity progressing toward development.
87
87
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The table below provides additional detail for those 17 projects, which total $2,874 million.
The table below provides additional detail for those 17 projects, which total $2,874 million.
Dec. 31,
2021
Dec. 31,
2021
Years Wells
Drilled /
Years Wells
Acquired
Drilled /
Acquired
Country/Project
Country/Project
(millions of dollars)
(millions of dollars)
Comment
Comment
Argentina
Argentina
– La Invernada
– La Invernada
Australia
Australia
– Gorgon Area Ullage
– Gorgon Area Ullage
Canada
Canada
– Hibernia North
– Hibernia North
Guyana
Guyana
– Yellowtail
– Yellowtail
Kazakhstan
Kazakhstan
– Kairan
– Kairan
Mozambique
Mozambique
– Rovuma LNG Future
Non-Straddling Train
– Rovuma LNG Future
Non-Straddling Train
– Rovuma LNG Phase 1
– Rovuma LNG Phase 1
– Rovuma LNG Unitized
Trains
– Rovuma LNG Unitized
Trains
Nigeria
Nigeria
– Bonga North
– Bonga North
– Bonga SW
– Bonga SW
– Pegi
– Pegi
Papua New Guinea
Papua New Guinea
– Muruk
– Muruk
– Papua LNG
– Papua LNG
– P'nyang
– P'nyang
Romania
Romania
– Neptun Deep
– Neptun Deep
Tanzania
Tanzania
– Tanzania Block 2
– Tanzania Block 2
Vietnam
Vietnam
– Blue Whale
– Blue Whale
Total 2021 (17 projects)
Total 2021 (17 projects)
2014
2014
Evaluating development plan to tie into planned infrastructure.
Evaluating development plan to tie into planned infrastructure.
1994 - 2015 Evaluating development plans to tie into existing LNG facilities.
1994 - 2015 Evaluating development plans to tie into existing LNG facilities.
2019
2019
Awaiting capacity in existing/planned infrastructure.
Awaiting capacity in existing/planned infrastructure.
2019 - 2020 Continuing discussions with the government regarding development plan.
2019 - 2020 Continuing discussions with the government regarding development plan.
2004 - 2007 Evaluating commercialization and field development alternatives, while
continuing discussions with the government regarding the development
2004 - 2007 Evaluating commercialization and field development alternatives, while
plan.
continuing discussions with the government regarding the development
plan.
2017
2017
2017
2017
2017
2017
Evaluating/progressing development plan to tie into planned LNG
facilities.
Evaluating/progressing development plan to tie into planned LNG
facilities.
Progressing development plan to tie into planned LNG facilities.
Progressing development plan to tie into planned LNG facilities.
Evaluating/progressing development plan to tie into planned LNG
facilities.
Evaluating/progressing development plan to tie into planned LNG
facilities.
2004 - 2009 Evaluating/progressing development plan for tieback to existing/planned
infrastructure.
2004 - 2009 Evaluating/progressing development plan for tieback to existing/planned
infrastructure.
Evaluating/progressing development plan for tieback to existing/planned
infrastructure.
Evaluating/progressing development plan for tieback to existing/planned
infrastructure.
Awaiting capacity in existing/planned infrastructure.
Awaiting capacity in existing/planned infrastructure.
2001
2001
2009
2009
2017 - 2019 Evaluating/progressing development plans.
2017 - 2019 Evaluating/progressing development plans.
Evaluating/progressing development plans.
Evaluating/progressing development plans.
2012 - 2018 Evaluating/progressing development plans.
2012 - 2018 Evaluating/progressing development plans.
2017
2017
2012 - 2016 Continuing discussions with the government regarding development plan.
2012 - 2016 Continuing discussions with the government regarding development plan.
2012 - 2015 Evaluating development alternatives, while continuing discussions with
2012 - 2015 Evaluating development alternatives, while continuing discussions with
the government regarding development plan.
the government regarding development plan.
2011 - 2015 Evaluating/progressing development plans.
2011 - 2015 Evaluating/progressing development plans.
72
72
327
327
26
26
138
138
53
53
120
120
150
150
35
35
34
34
3
3
32
32
165
165
246
246
116
116
536
536
525
525
296
296
2,874
2,874
88
88
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
11. Leases
11. Leases
The Corporation and its consolidated affiliates generally purchase the property, plant and equipment used in operations, but there are
The Corporation and its consolidated affiliates generally purchase the property, plant and equipment used in operations, but there are
situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment.
situations where assets are leased, primarily for drilling equipment, tankers, office buildings, railcars, and other moveable equipment.
Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by
Right of use assets and lease liabilities are established on the balance sheet for leases with an expected term greater than one year by
discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the
discounting the amounts fixed in the lease agreement for the duration of the lease which is reasonably certain, considering the
probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for
probability of exercising any early termination and extension options. The portion of the fixed payment related to service costs for
drilling equipment, tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally,
drilling equipment, tankers and finance leases is excluded from the calculation of right of use assets and lease liabilities. Generally,
assets are leased only for a portion of their useful lives, and are accounted for as operating leases. In limited situations assets are leased
assets are leased only for a portion of their useful lives, and are accounted for as operating leases. In limited situations assets are leased
for nearly all of their useful lives, and are accounted for as finance leases.
for nearly all of their useful lives, and are accounted for as finance leases.
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to
Variable payments under these lease agreements are not significant. Residual value guarantees, restrictions, or covenants related to
leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing
leases, and transactions with related parties are also not significant. In general, leases are capitalized using the incremental borrowing
rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
rate of the leasing affiliate. The Corporation’s activities as a lessor are not significant.
Lease Cost
Lease Cost
Operating Leases
Operating Leases
2021
2021
1,542
1,542
1,351
1,351
2020
2020
1,553
1,553
1,613
1,613
2019
2019
(millions of dollars)
(millions of dollars)
1,434
1,434
2,042
2,042
Finance Leases
Finance Leases
2020
2020
2021
2021
2019
2019
Operating lease cost
Operating lease cost
Short-term and other (net of sublease rental income)
Short-term and other (net of sublease rental income)
Amortization of right of use assets
Amortization of right of use assets
Interest on lease liabilities
Interest on lease liabilities
121
121
133
133
254
254
(1) Includes $681 million, $827 million and $1,164 million for drilling rigs and related equipment operating leases in 2021, 2020 and
(1) Includes $681 million, $827 million and $1,164 million for drilling rigs and related equipment operating leases in 2021, 2020 and
143
143
169
169
312
312
133
133
158
158
291
291
Total (1)
Total (1)
3,166
3,166
2,893
2,893
3,476
3,476
2019, respectively.
2019, respectively.
Balance Sheet
Balance Sheet
Right of use assets
Right of use assets
Included in Other assets, including intangibles - net
Included in Other assets, including intangibles - net
Included in Property, plant and equipment - net
Included in Property, plant and equipment - net
Total right of use assets
Total right of use assets
Lease liability due within one year
Lease liability due within one year
Included in Accounts payable and accrued liabilities
Included in Accounts payable and accrued liabilities
Included in Notes and loans payable
Included in Notes and loans payable
Long-term lease liability
Long-term lease liability
Included in Other long-term obligations
Included in Other long-term obligations
Included in Long-term debt
Included in Long-term debt
Included in Long-term obligations to equity companies
Included in Long-term obligations to equity companies
Total lease liability (2)
Total lease liability (2)
Operating Leases
Operating Leases
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2020
Finance Leases
Finance Leases
December 31,
2021
December 31,
2021
December 31,
2020
December 31,
2020
(millions of dollars)
(millions of dollars)
6,082
6,082
6,082
6,082
1,367
1,367
3,823
3,823
5,190
5,190
6,078
6,078
6,078
6,078
1,168
1,168
3,994
3,994
5,162
5,162
2,412
2,412
2,412
2,412
4
4
111
111
1,761
1,761
131
131
2,007
2,007
2,188
2,188
2,188
2,188
4
4
102
102
1,680
1,680
135
135
1,921
1,921
Weighted average remaining lease term (years)
Weighted average remaining lease term (years)
Weighted average discount rate (percent)
Weighted average discount rate (percent)
(2) Includes $935 million and $832 million for drilling rigs and related equipment operating leases in 2021 and 2020, respectively.
(2) Includes $935 million and $832 million for drilling rigs and related equipment operating leases in 2021 and 2020, respectively.
7.7 %
7.7 %
2.9 %
2.9 %
2.3 %
2.3 %
11
11
20
20
10
10
20
20
8.9 %
8.9 %
89
89
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Maturity Analysis of Lease Liabilities
Maturity Analysis of Lease Liabilities
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
2027 and beyond
2027 and beyond
Total lease payments
Total lease payments
Discount to present value
Discount to present value
Total lease liability
Total lease liability
Operating Leases
Operating Leases
Finance Leases
Finance Leases
December 31, 2021
December 31, 2021
(millions of dollars)
(millions of dollars)
1,456
1,456
1,141
1,141
574
574
437
437
384
384
1,978
1,978
5,970
5,970
(780)
(780)
5,190
5,190
262
262
256
256
253
253
246
246
382
382
2,111
2,111
3,510
3,510
(1,503)
(1,503)
2,007
2,007
In addition to the lease liabilities in the table immediately above, at December 31, 2021, undiscounted commitments for leases not yet
In addition to the lease liabilities in the table immediately above, at December 31, 2021, undiscounted commitments for leases not yet
commenced totaled $962 million for operating leases and $4,960 million for finance leases. Estimated cash payments for operating
commenced totaled $962 million for operating leases and $4,960 million for finance leases. Estimated cash payments for operating
and finance leases not yet commenced are $310 million and $415 million for 2022 and 2023 respectively. The finance leases relate to
and finance leases not yet commenced are $310 million and $415 million for 2022 and 2023 respectively. The finance leases relate to
floating production storage and offloading vessels, LNG transportation vessels, and a long-term hydrogen purchase agreement. The
floating production storage and offloading vessels, LNG transportation vessels, and a long-term hydrogen purchase agreement. The
underlying assets for these finance leases were primarily designed by, and are being constructed by, the lessors.
underlying assets for these finance leases were primarily designed by, and are being constructed by, the lessors.
Other Information
Other Information
Cash paid for amounts included in the measurement of
lease liabilities
Cash paid for amounts included in the measurement of
lease liabilities
Cash flows from operating activities
Cash flows from operating activities
Cash flows from investing activities
Cash flows from investing activities
Cash flows from financing activities
Cash flows from financing activities
Noncash right of use assets recorded for lease liabilities
Noncash right of use assets recorded for lease liabilities
For January 1 adoption of ASC 842
For January 1 adoption of ASC 842
In exchange for lease liabilities during the period
In exchange for lease liabilities during the period
Operating Leases
Operating Leases
2020
2020
2021
2021
2019
2019
(millions of dollars)
(millions of dollars)
2021
2021
Finance Leases
Finance Leases
2020
2020
1,135
1,135
291
291
1,159
1,159
283
283
1,116
1,116
258
258
20
20
110
110
31
31
94
94
2019
2019
54
54
177
177
1,405
1,405
735
735
3,263
3,263
3,663
3,663
200
200
108
108
422
422
90
90
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
12. Earnings Per Share
12. Earnings Per Share
2019
Earnings per common share
2019
Earnings per common share
Net income (loss) attributable to ExxonMobil (millions of dollars)
14,340
Net income (loss) attributable to ExxonMobil (millions of dollars)
14,340
Weighted average number of common shares outstanding (millions of shares)
4,270
Weighted average number of common shares outstanding (millions of shares)
4,270
Earnings (loss) per common share (dollars) (1)
3.36
Earnings (loss) per common share (dollars) (1)
3.36
Dividends paid per common share (dollars)
3.43
Dividends paid per common share (dollars)
3.43
(1) The earnings (loss) per common share and earnings (loss) per common share - assuming dilution are the same in each period
(1) The earnings (loss) per common share and earnings (loss) per common share - assuming dilution are the same in each period
2020
2020
(22,440)
(22,440)
4,271
4,271
(5.25)
(5.25)
3.48
3.48
2021
2021
23,040
23,040
4,275
4,275
5.39
5.39
3.49
3.49
shown.
shown.
91
91
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
13. Financial Instruments and Derivatives
13. Financial Instruments and Derivatives
Financial Instruments. The estimated fair value of financial instruments at December 31, 2021 and December 31, 2020, and the
Financial Instruments. The estimated fair value of financial instruments at December 31, 2021 and December 31, 2020, and the
related hierarchy level for the fair value measurement is as follows:
related hierarchy level for the fair value measurement is as follows:
December 31, 2021
December 31, 2021
(millions of dollars)
(millions of dollars)
Assets
Assets
Derivative assets (1)
Derivative assets (1)
Advances to/receivables from equity
Advances to/receivables from equity
Other long-term financial assets (3)
Other long-term financial assets (3)
companies (2)(6)
companies (2)(6)
Liabilities
Liabilities
Derivative liabilities (4)
Derivative liabilities (4)
Long-term debt (5)
Long-term debt (5)
Long-term obligations to equity companies (6)
Long-term obligations to equity companies (6)
Other long-term financial liabilities (7)
Other long-term financial liabilities (7)
Assets
Assets
Derivative assets (1)
Derivative assets (1)
Advances to/receivables from equity
Advances to/receivables from equity
Other long-term financial assets (3)
Other long-term financial assets (3)
companies (2)(6)
companies (2)(6)
Fair Value
Fair Value
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
1,422
1,422
—
—
1,134
1,134
1,701
1,701
44,454
44,454
—
—
—
—
1,523
1,523
3,076
3,076
—
—
2,594
2,594
88
88
—
—
—
—
—
—
5,373
5,373
1,058
1,058
—
—
3
3
3,084
3,084
902
902
Fair Value
Fair Value
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
1,247
1,247
—
—
1,235
1,235
194
194
3,275
3,275
—
—
—
—
5,904
5,904
944
944
Total Gross
Assets &
Total Gross
Liabilities
Assets &
Liabilities
Effect of
Counterparty
Effect of
Netting
Counterparty
Netting
Effect of
Collateral
Effect of
Netting
Collateral
Netting
Difference
in Carrying
Difference
Value and
in Carrying
Fair Value
Value and
Fair Value
Net
Carrying
Net
Value
Carrying
Value
2,945
2,945
8,449
8,449
2,192
2,192
(1,930)
(1,930)
—
—
—
—
4,295
4,295
44,545
44,545
3,084
3,084
902
902
(1,930)
(1,930)
—
—
—
—
—
—
December 31, 2020
December 31, 2020
(millions of dollars)
(millions of dollars)
(28)
(28)
—
—
—
—
(306)
(306)
—
—
—
—
—
—
—
—
(123)
(123)
181
181
—
—
(2,878)
(2,878)
(227)
(227)
58
58
987
987
8,326
8,326
2,373
2,373
2,059
2,059
41,667
41,667
2,857
2,857
960
960
Total Gross
Assets &
Total Gross
Liabilities
Assets &
Liabilities
Effect of
Counterparty
Effect of
Netting
Counterparty
Netting
Effect of
Collateral
Effect of
Netting
Collateral
Netting
Difference
in Carrying
Difference
Value and
in Carrying
Fair Value
Value and
Fair Value
Net
Carrying
Net
Value
Carrying
Value
1,441
1,441
9,179
9,179
2,179
2,179
(1,282)
(1,282)
—
—
—
—
(6)
(6)
—
—
—
—
—
—
(367)
(367)
125
125
153
153
8,812
8,812
2,304
2,304
Liabilities
Liabilities
254
254
125
125
—
—
—
—
1,443
1,443
50,263
50,263
—
—
—
—
Derivative liabilities (4)
Derivative liabilities (4)
Long-term debt (5)
Long-term debt (5)
Long-term obligations to equity companies (6)
Long-term obligations to equity companies (6)
Other long-term financial liabilities (7)
Other long-term financial liabilities (7)
—
—
4
4
3,530
3,530
964
964
Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net
Included in the Balance Sheet line: Investments, advances and long-term receivables
Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net
Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net
Included in the Balance Sheet line: Investments, advances and long-term receivables
Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations
Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net
Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations
(1)
(2)
(1)
(3)
(2)
(4)
(3)
(5) Excluding finance lease obligations
(4)
(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is
(5) Excluding finance lease obligations
calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.
(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is
Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on
(7)
calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the company.
expected drilling activities and discount rates.
Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on
(7)
expected drilling activities and discount rates.
—
—
(4,890)
(4,890)
(277)
(277)
44
44
(1,282)
(1,282)
—
—
—
—
—
—
1,697
1,697
50,392
50,392
3,530
3,530
964
964
213
213
45,502
45,502
3,253
3,253
1,008
1,008
(202)
(202)
—
—
—
—
—
—
At December 31, 2021 and December 31, 2020, the Corporation had $641 million and $504 million of collateral under master netting
At December 31, 2021 and December 31, 2020, the Corporation had $641 million and $504 million of collateral under master netting
arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.
arrangements not offset against the derivatives on the Consolidated Balance Sheet, primarily related to initial margin requirements.
92
92
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the
Derivative Instruments. The Corporation’s size, strong capital structure, geographic diversity and the complementary nature of the
Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices,
Upstream, Downstream and Chemical businesses reduce the Corporation’s enterprise-wide risk from changes in commodity prices,
currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage
currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage
commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated
commodity price risk and for trading purposes. Commodity contracts held for trading purposes are presented in the Consolidated
Statement of Income on a net basis in the line “Sales and other operating revenue”. The Corporation’s commodity derivatives are not
Statement of Income on a net basis in the line “Sales and other operating revenue”. The Corporation’s commodity derivatives are not
accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which
accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which
are material to the Corporation’s financial position as of December 31, 2021 and 2020, or results of operations for 2021, 2020 and
are material to the Corporation’s financial position as of December 31, 2021 and 2020, or results of operations for 2021, 2020 and
2019.
2019.
Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing
Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing
exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls
exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls
that includes the authorization, reporting and monitoring of derivative activity.
that includes the authorization, reporting and monitoring of derivative activity.
The net notional long/(short) position of derivative instruments at December 31, 2021 and December 31, 2020, was as follows:
The net notional long/(short) position of derivative instruments at December 31, 2021 and December 31, 2020, was as follows:
Crude oil (barrels)
Crude oil (barrels)
Petroleum products (barrels)
Petroleum products (barrels)
Natural gas (MMBTUs)
Natural gas (MMBTUs)
December 31,
December 31,
2021
2021
December 31,
December 31,
2020
2020
(millions)
(millions)
82
82
(48)
(48)
(115)
(115)
40
40
(46)
(46)
(500)
(500)
Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are
Realized and unrealized gains/(losses) on derivative instruments that were recognized in the Consolidated Statement of Income are
included in the following lines on a before-tax basis:
included in the following lines on a before-tax basis:
Sales and other operating revenue
Sales and other operating revenue
Crude oil and product purchases
Crude oil and product purchases
Total
Total
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
404
404
(407)
(407)
(3)
(3)
(3,818)
(3,818)
48
48
(3,770)
(3,770)
2019
2019
(412)
(412)
179
179
(233)
(233)
14. Long-Term Debt
14. Long-Term Debt
At December 31, 2021, long-term debt consisted of $37,611 million due in U.S. dollars and $5,817 million representing the U.S.
At December 31, 2021, long-term debt consisted of $37,611 million due in U.S. dollars and $5,817 million representing the U.S.
dollar equivalent at year-end exchange rates of amounts payable in foreign currencies. These amounts exclude that portion of long-
dollar equivalent at year-end exchange rates of amounts payable in foreign currencies. These amounts exclude that portion of long-
term debt, totaling $2,392 million, which matures within one year and is included in current liabilities.
term debt, totaling $2,392 million, which matures within one year and is included in current liabilities.
On December 17, 2021, the Corporation irrevocably deposited sufficient cash with the Trustee to fund the redemption of its
On December 17, 2021, the Corporation irrevocably deposited sufficient cash with the Trustee to fund the redemption of its
2.397% notes due 2022. After the deposit of the funds, the Corporation was released from its obligation and the debt was extinguished.
2.397% notes due 2022. After the deposit of the funds, the Corporation was released from its obligation and the debt was extinguished.
The amounts of long-term debt, excluding finance lease obligations, maturing in each of the four years after December 31, 2022, in
The amounts of long-term debt, excluding finance lease obligations, maturing in each of the four years after December 31, 2022, in
millions of dollars, are: 2023 – $4,039; 2024 – $3,836; 2025 – $4,597; and 2026 – $3,575. At December 31, 2021, the Corporation's
millions of dollars, are: 2023 – $4,039; 2024 – $3,836; 2025 – $4,597; and 2026 – $3,575. At December 31, 2021, the Corporation's
unused long-term lines of credit were $0.6 billion.
unused long-term lines of credit were $0.6 billion.
The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net
The Corporation may use non-derivative financial instruments, such as its foreign currency-denominated debt, as hedges of its net
investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to
investments in certain foreign subsidiaries. Under this method, the change in the carrying value of the financial instruments due to
foreign exchange fluctuations is reported in accumulated other comprehensive income. As of December 31, 2021, the Corporation has
foreign exchange fluctuations is reported in accumulated other comprehensive income. As of December 31, 2021, the Corporation has
designated its $5.1 billion of Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European
designated its $5.1 billion of Euro-denominated long-term debt and related accrued interest as a net investment hedge of its European
business. The net investment hedge is deemed to be perfectly effective.
business. The net investment hedge is deemed to be perfectly effective.
93
93
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Summarized long-term debt at year-end 2021 and 2020 are shown in the table below:
Summarized long-term debt at year-end 2021 and 2020 are shown in the table below:
Average
Rate (1)
Average
Rate (1)
Exxon Mobil Corporation (2)
Exxon Mobil Corporation (2)
2.397% notes due 2022
2.397% notes due 2022
1.902% notes due 2022
1.902% notes due 2022
Floating-rate notes due 2022 (Issued 2015)
Floating-rate notes due 2022 (Issued 2015)
Floating-rate notes due 2022 (Issued 2019)
Floating-rate notes due 2022 (Issued 2019)
1.571% notes due 2023
1.571% notes due 2023
2.726% notes due 2023
2.726% notes due 2023
3.176% notes due 2024
3.176% notes due 2024
2.019% notes due 2024
2.019% notes due 2024
2.709% notes due 2025
2.709% notes due 2025
2.992% notes due 2025
2.992% notes due 2025
3.043% notes due 2026
3.043% notes due 2026
2.275% notes due 2026
2.275% notes due 2026
3.294% notes due 2027
3.294% notes due 2027
2.440% notes due 2029
2.440% notes due 2029
3.482% notes due 2030
3.482% notes due 2030
2.610% notes due 2030
2.610% notes due 2030
2.995% notes due 2039
2.995% notes due 2039
4.227% notes due 2040
4.227% notes due 2040
3.567% notes due 2045
3.567% notes due 2045
4.114% notes due 2046
4.114% notes due 2046
3.095% notes due 2049
3.095% notes due 2049
4.327% notes due 2050
4.327% notes due 2050
3.452% notes due 2051
3.452% notes due 2051
Exxon Mobil Corporation - Euro-denominated
Exxon Mobil Corporation - Euro-denominated
0.142% notes due 2024
0.142% notes due 2024
0.524% notes due 2028
0.524% notes due 2028
0.835% notes due 2032
0.835% notes due 2032
1.408% notes due 2039
1.408% notes due 2039
XTO Energy Inc. (3)
XTO Energy Inc. (3)
6.100% senior notes due 2036
6.100% senior notes due 2036
6.750% senior notes due 2037
6.750% senior notes due 2037
6.375% senior notes due 2038
6.375% senior notes due 2038
Industrial revenue bonds due 2022-2051
Industrial revenue bonds due 2022-2051
Other U.S. dollar obligations
Other U.S. dollar obligations
Other foreign currency obligations
Other foreign currency obligations
Finance lease obligations
Finance lease obligations
Debt issuance costs
Debt issuance costs
Total long-term debt
Total long-term debt
0.028%
0.028%
7.438%
7.438%
Dec 31, 2021
Dec 31, 2021
Dec 31, 2020
Dec 31, 2020
(millions of dollars)
(millions of dollars)
—
—
—
—
—
—
—
—
2,750
2,750
1,250
1,250
1,000
1,000
1,000
1,000
1,750
1,750
2,794
2,794
2,500
2,500
1,000
1,000
1,000
1,000
1,250
1,250
2,000
2,000
2,000
2,000
750
750
2,087
2,087
1,000
1,000
2,500
2,500
1,500
1,500
2,750
2,750
2,750
2,750
1,698
1,698
1,133
1,133
1,133
1,133
1,133
1,133
191
191
291
291
226
226
2,244
2,244
64
64
37
37
1,761
1,761
(114)
(114)
43,428
43,428
1,150
1,150
750
750
500
500
750
750
2,750
2,750
1,250
1,250
1,000
1,000
1,000
1,000
1,750
1,750
2,807
2,807
2,500
2,500
1,000
1,000
1,000
1,000
1,250
1,250
2,000
2,000
2,000
2,000
750
750
2,091
2,091
1,000
1,000
2,500
2,500
1,500
1,500
2,750
2,750
2,750
2,750
1,841
1,841
1,227
1,227
1,227
1,227
1,227
1,227
192
192
294
294
227
227
2,461
2,461
78
78
61
61
1,680
1,680
(131)
(131)
47,182
47,182
(1) Average effective interest rate for debt and average imputed interest rate for finance leases at December 31, 2021.
(1) Average effective interest rate for debt and average imputed interest rate for finance leases at December 31, 2021.
(2) Includes premiums of $131 million in 2021 and $148 million in 2020.
(2) Includes premiums of $131 million in 2021 and $148 million in 2020.
(3) Includes premiums of $82 million in 2021 and $87 million in 2020.
(3) Includes premiums of $82 million in 2021 and $87 million in 2020.
94
94
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
15. Incentive Program
15. Incentive Program
The 2003 Incentive Program provides for grants of stock options, stock appreciation rights (SARs), restricted stock, and other forms of
The 2003 Incentive Program provides for grants of stock options, stock appreciation rights (SARs), restricted stock, and other forms of
awards. Awards may be granted to eligible employees of the Corporation and those affiliates at least 50 percent owned. Outstanding
awards. Awards may be granted to eligible employees of the Corporation and those affiliates at least 50 percent owned. Outstanding
awards are subject to certain forfeiture provisions contained in the program or award instrument. Options and SARs may be granted at
awards are subject to certain forfeiture provisions contained in the program or award instrument. Options and SARs may be granted at
prices not less than 100 percent of market value on the date of grant and have a maximum life of 10 years. The maximum number of
prices not less than 100 percent of market value on the date of grant and have a maximum life of 10 years. The maximum number of
shares of stock that may be issued under the 2003 Incentive Program is 220 million. Awards that are forfeited, expire, or are settled in
shares of stock that may be issued under the 2003 Incentive Program is 220 million. Awards that are forfeited, expire, or are settled in
cash, do not count against this maximum limit. The 2003 Incentive Program does not have a specified term. New awards may be made
cash, do not count against this maximum limit. The 2003 Incentive Program does not have a specified term. New awards may be made
until the available shares are depleted, unless the Board terminates the plan early. At the end of 2021, remaining shares available for
until the available shares are depleted, unless the Board terminates the plan early. At the end of 2021, remaining shares available for
award under the 2003 Incentive Program were 66 million.
award under the 2003 Incentive Program were 66 million.
Restricted Stock and Restricted Stock Units. Awards totaling 8,133 thousand, 8,681 thousand, and 8,936 thousand of restricted
Restricted Stock and Restricted Stock Units. Awards totaling 8,133 thousand, 8,681 thousand, and 8,936 thousand of restricted
(nonvested) common stock units were granted in 2021, 2020, and 2019, respectively. Compensation expense for these awards is based
(nonvested) common stock units were granted in 2021, 2020, and 2019, respectively. Compensation expense for these awards is based
on the price of the stock at the date of grant and is recognized in income over the requisite service period. Shares for these awards are
on the price of the stock at the date of grant and is recognized in income over the requisite service period. Shares for these awards are
issued to employees from treasury stock. The units that are settled in cash are recorded as liabilities and their changes in fair value are
issued to employees from treasury stock. The units that are settled in cash are recorded as liabilities and their changes in fair value are
recognized over the vesting period. During the applicable restricted periods, the shares and units may not be sold or transferred and are
recognized over the vesting period. During the applicable restricted periods, the shares and units may not be sold or transferred and are
subject to forfeiture. The majority of the awards have graded vesting periods, with 50 percent of the shares and units in each award
subject to forfeiture. The majority of the awards have graded vesting periods, with 50 percent of the shares and units in each award
vesting after three years and the remaining 50 percent vesting after seven years. Awards granted to a small number of senior
vesting after three years and the remaining 50 percent vesting after seven years. Awards granted to a small number of senior
executives have vesting periods of five years for 50 percent of the award and of 10 years for the remaining 50 percent of the award,
executives have vesting periods of five years for 50 percent of the award and of 10 years for the remaining 50 percent of the award,
except that for awards granted prior to 2020 the vesting of the 10-year portion of the award is delayed until retirement if later than 10
except that for awards granted prior to 2020 the vesting of the 10-year portion of the award is delayed until retirement if later than 10
years.
years.
The following tables summarize information about restricted stock and restricted stock units for the year ended December 31, 2021.
The following tables summarize information about restricted stock and restricted stock units for the year ended December 31, 2021.
Restricted stock and units outstanding
Restricted stock and units outstanding
Issued and outstanding at January 1
Issued and outstanding at January 1
Awards issued in 2021
Awards issued in 2021
Vested
Vested
Forfeited
Forfeited
Issued and outstanding at December 31
Issued and outstanding at December 31
Value of restricted stock units
Value of restricted stock units
Grant price (dollars)
Grant price (dollars)
Value at date of grant:
Value at date of grant:
Units settled in stock
Units settled in stock
Units settled in cash
Units settled in cash
Total value
Total value
2021
2021
Weighted Average
Grant-Date
Weighted Average
Fair Value per Share
Grant-Date
Fair Value per Share
(dollars)
(dollars)
Shares
Shares
(thousands)
(thousands)
39,585
39,585
8,753
8,753
(9,142)
(9,142)
(274)
(274)
38,922
38,922
80.43
80.43
41.29
41.29
86.16
86.16
66.54
66.54
70.38
70.38
2021
2021
62.76
62.76
2020
2020
41.15
41.15
(millions of dollars)
(millions of dollars)
325
325
32
32
357
357
461
461
49
49
510
510
2019
2019
68.77
68.77
559
559
55
55
614
614
As of December 31, 2021, there was $1,268 million of unrecognized compensation cost related to the nonvested restricted awards.
As of December 31, 2021, there was $1,268 million of unrecognized compensation cost related to the nonvested restricted awards.
This cost is expected to be recognized over a weighted-average period of 4.4 years. The compensation cost charged against income for
This cost is expected to be recognized over a weighted-average period of 4.4 years. The compensation cost charged against income for
the restricted stock and restricted stock units was $612 million, $672 million, and $741 million for 2021, 2020, and 2019, respectively.
the restricted stock and restricted stock units was $612 million, $672 million, and $741 million for 2021, 2020, and 2019, respectively.
The income tax benefit recognized in income related to this compensation expense was $49 million, $51 million, and $51 million for
The income tax benefit recognized in income related to this compensation expense was $49 million, $51 million, and $51 million for
the same periods, respectively. The fair value of shares and units vested in 2021, 2020, and 2019 was $562 million, $367 million, and
the same periods, respectively. The fair value of shares and units vested in 2021, 2020, and 2019 was $562 million, $367 million, and
$647 million, respectively. Cash payments of $48 million, $34 million, and $56 million for vested restricted stock units settled in cash
$647 million, respectively. Cash payments of $48 million, $34 million, and $56 million for vested restricted stock units settled in cash
were made in 2021, 2020, and 2019, respectively.
were made in 2021, 2020, and 2019, respectively.
95
95
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
16. Litigation and Other Contingencies
16. Litigation and Other Contingencies
Litigation. A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of
Litigation. A variety of claims have been made against ExxonMobil and certain of its consolidated subsidiaries in a number of
pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need
pending lawsuits. Management has regular litigation reviews, including updates from corporate and outside counsel, to assess the need
for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those
for accounting recognition or disclosure of these contingencies. The Corporation accrues an undiscounted liability for those
contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be
contingencies where the incurrence of a loss is probable and the amount can be reasonably estimated. If a range of amounts can be
reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is
reasonably estimated and no amount within the range is a better estimate than any other amount, then the minimum of the range is
accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount
accrued. The Corporation does not record liabilities when the likelihood that the liability has been incurred is probable but the amount
cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an
cannot be reasonably estimated or when the liability is believed to be only reasonably possible or remote. For contingencies where an
unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and,
unfavorable outcome is reasonably possible and which are significant, the Corporation discloses the nature of the contingency and,
where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters,
where feasible, an estimate of the possible loss. For purposes of our contingency disclosures, “significant” includes material matters,
as well as other matters, which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in
as well as other matters, which management believes should be disclosed. ExxonMobil will continue to defend itself vigorously in
these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome
these matters. Based on a consideration of all relevant facts and circumstances, the Corporation does not believe the ultimate outcome
of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation’s operations, financial
of any currently pending lawsuit against ExxonMobil will have a material adverse effect upon the Corporation’s operations, financial
condition, or financial statements taken as a whole.
condition, or financial statements taken as a whole.
Other Contingencies. The Corporation and certain of its consolidated subsidiaries were contingently liable at December 31, 2021, for
Other Contingencies. The Corporation and certain of its consolidated subsidiaries were contingently liable at December 31, 2021, for
guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other
guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other
similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure.
similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure.
Equity Company
Obligations (1)
Equity Company
Obligations (1)
December 31, 2021
December 31, 2021
Other Third-Party
Obligations
Other Third-Party
Obligations
(millions of dollars)
(millions of dollars)
Total
Total
1,109
1,109
775
775
1,884
1,884
140
140
6,498
6,498
6,638
6,638
1,249
1,249
7,273
7,273
8,522
8,522
Guarantees
Guarantees
Debt-related
Debt-related
Other
Other
Total
Total
(1) ExxonMobil share.
(1) ExxonMobil share.
Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business
Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business
activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial
activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial
condition.
condition.
The Corporation has previously provided disclosure regarding (i) claims being pursued by the Corporation against the Venezuelan
The Corporation has previously provided disclosure regarding (i) claims being pursued by the Corporation against the Venezuelan
National Oil Company in connection with a 2007 Venezuelan nationalization decree, and (ii) claims being pursued by the Corporation
National Oil Company in connection with a 2007 Venezuelan nationalization decree, and (ii) claims being pursued by the Corporation
against the Nigerian National Petroleum Corporation in connection with a dispute involving crude oil lifting entitlements which was
against the Nigerian National Petroleum Corporation in connection with a dispute involving crude oil lifting entitlements which was
originally subject to arbitration in 2011. Both matters remain ongoing but, as previously disclosed, the Corporation does not expect the
originally subject to arbitration in 2011. Both matters remain ongoing but, as previously disclosed, the Corporation does not expect the
ultimate resolution of either matter to have a material effect upon the Corporation’s operations or financial condition. In the interest of
ultimate resolution of either matter to have a material effect upon the Corporation’s operations or financial condition. In the interest of
disclosure simplification, the Corporation will no longer include specific disclosure of these matters in its annual or quarterly reports
disclosure simplification, the Corporation will no longer include specific disclosure of these matters in its annual or quarterly reports
unless future developments alter the foregoing conclusions.
unless future developments alter the foregoing conclusions.
96
96
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
17. Pension and Other Postretirement Benefits
17. Pension and Other Postretirement Benefits
The benefit obligations and plan assets associated with the Corporation’s principal benefit plans are measured on December 31.
The benefit obligations and plan assets associated with the Corporation’s principal benefit plans are measured on December 31.
Weighted-average assumptions used to determine benefit
Weighted-average assumptions used to determine benefit
obligations at December 31
obligations at December 31
Discount rate
Discount rate
Long-term rate of compensation increase
Long-term rate of compensation increase
Change in benefit obligation
Change in benefit obligation
Benefit obligation at January 1
Benefit obligation at January 1
Service cost
Service cost
Interest cost
Interest cost
Actuarial loss/(gain) (1)
Actuarial loss/(gain) (1)
Benefits paid (2) (3)
Benefits paid (2) (3)
Foreign exchange rate changes
Foreign exchange rate changes
Amendments, divestments and other
Amendments, divestments and other
Benefit obligation at December 31
Benefit obligation at December 31
Accumulated benefit obligation at December 31
Accumulated benefit obligation at December 31
U.S.
U.S.
2021
2021
Pension Benefits
Pension Benefits
2020
2020
2021
2021
Non-U.S.
Non-U.S.
(percent)
(percent)
2020
2020
3.00
3.00
4.50
4.50
2.80
2.80
5.50
5.50
2.20
2.20
4.20
4.20
1.60
1.60
4.20
4.20
(millions of dollars)
(millions of dollars)
21,662
21,662
919
919
558
558
(747)
(747)
(3,810)
(3,810)
—
—
(71)
(71)
20,959
20,959
965
965
708
708
1,287
1,287
(1,987)
(1,987)
—
—
(270)
(270)
18,511
18,511
15,781
15,781
21,662
21,662
17,502
17,502
33,626
33,626
774
774
526
526
(2,803)
(2,803)
(1,550)
(1,550)
(1,162)
(1,162)
81
81
29,492
29,492
27,373
27,373
29,918
29,918
707
707
657
657
2,344
2,344
(1,317)
(1,317)
1,375
1,375
(58)
(58)
33,626
33,626
30,952
30,952
Other Postretirement
Other Postretirement
Benefits
Benefits
2021
2021
2020
2020
3.10
3.10
4.50
4.50
2.80
2.80
5.50
5.50
8,135
8,135
188
188
221
221
(881)
(881)
(517)
(517)
3
3
116
116
7,265
7,265
—
—
8,113
8,113
181
181
277
277
(66)
(66)
(510)
(510)
23
23
117
117
8,135
8,135
—
—
(1) Actuarial loss/(gain) primarily reflects changes in discount rates, lower long-term rates of compensation and a lower health care
(1) Actuarial loss/(gain) primarily reflects changes in discount rates, lower long-term rates of compensation and a lower health care
(2) Benefit payments for funded and unfunded plans.
(2) Benefit payments for funded and unfunded plans.
(3) For 2021 and 2020, other postretirement benefits paid are net of $9 million and $16 million of Medicare subsidy receipts,
(3) For 2021 and 2020, other postretirement benefits paid are net of $9 million and $16 million of Medicare subsidy receipts,
cost trend rate.
cost trend rate.
respectively.
respectively.
For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market
For selection of the discount rate for U.S. plans, several sources of information are considered, including interest rate market
indicators and the effective discount rate determined by use of a yield curve based on high-quality, noncallable bonds applied to the
indicators and the effective discount rate determined by use of a yield curve based on high-quality, noncallable bonds applied to the
estimated cash outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using a spot yield curve of
estimated cash outflows for benefit payments. For major non-U.S. plans, the discount rate is determined by using a spot yield curve of
high-quality, local-currency-denominated bonds at an average maturity approximating that of the liabilities.
high-quality, local-currency-denominated bonds at an average maturity approximating that of the liabilities.
The measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate of 4.0 percent in 2023 and
The measurement of the accumulated postretirement benefit obligation assumes a health care cost trend rate of 4.0 percent in 2023 and
subsequent years.
subsequent years.
Change in plan assets
Change in plan assets
Fair value at January 1
Fair value at January 1
Actual return on plan assets
Actual return on plan assets
Foreign exchange rate changes
Foreign exchange rate changes
Company contribution
Company contribution
Benefits paid (1)
Benefits paid (1)
Other
Other
Fair value at December 31
Fair value at December 31
(1) Benefit payments for funded plans.
(1) Benefit payments for funded plans.
Pension Benefits
Pension Benefits
U.S.
U.S.
2021
2021
2020
2020
Non-U.S.
Non-U.S.
2020
2021
2021
2020
(millions of dollars)
(millions of dollars)
Other Postretirement
Other Postretirement
Benefits
Benefits
2021
2021
2020
2020
15,300
15,300
479
479
—
—
794
794
(3,307)
(3,307)
—
—
13,266
13,266
13,636
13,636
2,269
2,269
—
—
1,004
1,004
(1,609)
(1,609)
—
—
15,300
15,300
26,216
26,216
571
571
(605)
(605)
293
293
(1,167)
(1,167)
(428)
(428)
22,916
22,916
2,795
2,795
1,011
1,011
597
597
(992)
(992)
(111)
(111)
24,880
24,880
26,216
26,216
446
446
20
20
—
—
28
28
(54)
(54)
—
—
440
440
425
425
42
42
—
—
37
37
(58)
(58)
—
—
446
446
97
97
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The funding levels of all qualified pension plans are in compliance with standards set by applicable law or regulation. As shown in the
The funding levels of all qualified pension plans are in compliance with standards set by applicable law or regulation. As shown in the
table below, certain smaller U.S. pension plans and a number of non-U.S. pension plans are not funded because local applicable tax
table below, certain smaller U.S. pension plans and a number of non-U.S. pension plans are not funded because local applicable tax
rules and regulatory practices do not encourage funding of these plans. All defined benefit pension obligations, regardless of the
rules and regulatory practices do not encourage funding of these plans. All defined benefit pension obligations, regardless of the
funding status of the underlying plans, are fully supported by the financial strength of the Corporation or the respective sponsoring
funding status of the underlying plans, are fully supported by the financial strength of the Corporation or the respective sponsoring
affiliate.
affiliate.
Assets in excess of/(less than) benefit obligation
Assets in excess of/(less than) benefit obligation
Balance at December 31
Balance at December 31
Funded plans
Funded plans
Unfunded plans
Unfunded plans
Total
Total
U.S.
U.S.
2021
2021
Pension Benefits
Pension Benefits
2021
2020
2020
2021
(millions of dollars)
(millions of dollars)
Non-U.S.
Non-U.S.
2020
2020
(3,570)
(3,570)
(1,675)
(1,675)
(5,245)
(5,245)
(4,156)
(4,156)
(2,206)
(2,206)
(6,362)
(6,362)
554
554
(5,166)
(5,166)
(4,612)
(4,612)
(1,223)
(1,223)
(6,187)
(6,187)
(7,410)
(7,410)
The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the
The authoritative guidance for defined benefit pension and other postretirement plans requires an employer to recognize the
overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position
overfunded or underfunded status of a defined benefit postretirement plan as an asset or liability in its statement of financial position
and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.
and to recognize changes in that funded status in the year in which the changes occur through other comprehensive income.
Assets in excess of/(less than) benefit obligation
Assets in excess of/(less than) benefit obligation
Balance at December 31 (1)
Balance at December 31 (1)
Amounts recorded in the consolidated
Amounts recorded in the consolidated
balance sheet consist of:
balance sheet consist of:
Other assets
Other assets
Current liabilities
Current liabilities
Postretirement benefits reserves
Postretirement benefits reserves
Total recorded
Total recorded
Amounts recorded in accumulated other
comprehensive income consist of:
Amounts recorded in accumulated other
comprehensive income consist of:
Net actuarial loss/(gain)
Net actuarial loss/(gain)
Prior service cost
Prior service cost
comprehensive income
comprehensive income
Total recorded in accumulated other
Total recorded in accumulated other
(1) Fair value of assets less benefit obligation shown on the preceding page.
(1) Fair value of assets less benefit obligation shown on the preceding page.
Pension Benefits
Pension Benefits
U.S.
U.S.
2021
2021
2020
2020
Non-U.S.
Non-U.S.
2020
2021
2021
2020
(millions of dollars)
(millions of dollars)
Other Postretirement
Benefits
Other Postretirement
Benefits
2021
2021
2020
2020
(5,245)
(5,245)
(6,362)
(6,362)
(4,612)
(4,612)
(7,410)
(7,410)
(6,825)
(6,825)
(7,689)
(7,689)
—
—
(206)
(206)
(5,039)
(5,039)
(5,245)
(5,245)
—
—
(377)
(377)
(5,985)
(5,985)
(6,362)
(6,362)
2,544
2,544
(267)
(267)
(6,889)
(6,889)
(4,612)
(4,612)
1,931
1,931
(273)
(273)
(9,068)
(9,068)
(7,410)
(7,410)
—
—
(323)
(323)
(6,502)
(6,502)
(6,825)
(6,825)
—
—
(327)
(327)
(7,362)
(7,362)
(7,689)
(7,689)
1,865
1,865
(324)
(324)
1,541
1,541
3,102
3,102
(275)
(275)
2,827
2,827
2,841
2,841
262
262
3,103
3,103
5,904
5,904
208
208
6,112
6,112
197
197
(232)
(232)
(35)
(35)
1,164
1,164
(274)
(274)
890
890
98
98
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The long-term expected rate of return on funded assets shown below is established for each benefit plan by developing a forward-
The long-term expected rate of return on funded assets shown below is established for each benefit plan by developing a forward-
looking, long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific
looking, long-term return assumption for each asset class, taking into account factors such as the expected real return for the specific
asset class and inflation. A single, long-term rate of return is then calculated as the weighted average of the target asset allocation
asset class and inflation. A single, long-term rate of return is then calculated as the weighted average of the target asset allocation
percentages and the long-term return assumption for each asset class.
percentages and the long-term return assumption for each asset class.
Weighted-average assumptions used to determine net
periodic benefit cost for years ended December 31
Weighted-average assumptions used to determine net
periodic benefit cost for years ended December 31
Discount rate
Discount rate
Long-term rate of return on funded assets
Long-term rate of return on funded assets
Long-term rate of compensation increase
Long-term rate of compensation increase
U.S.
U.S.
2020
2020
3.50
3.50
5.30
5.30
5.75
5.75
2021
2021
2.80
2.80
5.30
5.30
5.50
5.50
Pension Benefits
Pension Benefits
2019
2019
2021
2021
4.40
4.40
5.30
5.30
5.75
5.75
1.60
1.60
4.10
4.10
4.20
4.20
Non-U.S.
Non-U.S.
2020
2020
(percent)
(percent)
2.30
2.30
4.10
4.10
4.80
4.80
Other Postretirement
Benefits
Other Postretirement
Benefits
2019
2020
2019
2020
2021
2021
2019
2019
3.00
3.00
4.10
4.10
4.30
4.30
2.80
2.80
4.60
4.60
5.50
5.50
3.50
3.50
4.60
4.60
5.75
5.75
4.40
4.40
4.60
4.60
5.75
5.75
Components of net periodic benefit cost
Components of net periodic benefit cost
Service cost
Service cost
Interest cost
Interest cost
Expected return on plan assets
Expected return on plan assets
Amortization of actuarial loss/(gain)
Amortization of actuarial loss/(gain)
Amortization of prior service cost
Amortization of prior service cost
Net pension enhancement and curtailment/
Net pension enhancement and curtailment/
settlement cost
settlement cost
Net periodic benefit cost
Net periodic benefit cost
Changes in amounts recorded in accumulated other
Changes in amounts recorded in accumulated other
comprehensive income:
comprehensive income:
Net actuarial loss/(gain)
Net actuarial loss/(gain)
Amortization of actuarial (loss)/gain
Amortization of actuarial (loss)/gain
Prior service cost/(credit)
Prior service cost/(credit)
Amortization of prior service (cost)/credit
Amortization of prior service (cost)/credit
Foreign exchange rate changes
Foreign exchange rate changes
Total recorded in other comprehensive income
Total recorded in other comprehensive income
Total recorded in net periodic benefit cost and other
Total recorded in net periodic benefit cost and other
comprehensive income, before tax
comprehensive income, before tax
965
965
708
708
919
919
558
558
(722) (703)
(722) (703)
244
244
(23)
(23)
310
310
5
5
280
280
1,565
1,565
489
489
1,465
1,465
774
774
526
526
(millions of dollars)
(millions of dollars)
707
707
657
657
757
757
766
766
(568) (1,031) (897)
(568) (1,031) (897)
305
305
5
5
164
164
1,429
1,429
420
420
57
57
32
32
778
778
416
416
68
68
49
49
1,000
1,000
188
188
221
221
551
551
763
763
(777)
(777)
306
306
56
56
(98) —
(98) —
424
801
424
801
(19)
(19)
76
76
(42)
(42)
181
181
277
277
(18)
(18)
95
95
(42)
(42)
—
—
493
493
139
139
315
315
(15)
(15)
55
55
(42)
(42)
—
—
452
452
(504) (279)
(504) (279)
(733) (590)
(733) (590)
(5)
(5)
(72) (271) —
(72) (271) —
23
23
—
—
(1,286) (1,145)
(1,286) (1,145)
179
179
—
—
135
135
1,564
1,564
—
—
420
420
(2,361) 446
(2,361) 446
609
609
(469) (430) (442)
(469) (430) (442)
(82)
92
(82)
92
(68)
(55)
(68)
(55)
(5)
(5)
(255) 236
(255) 236
90
(3,009)
(3,009)
90
(2,231) 1,090
(2,231) 1,090
1,268
1,268
(208)
(208)
379
379
(56)
(56)
19
19
1,402
1,402
2,203
2,203
(891)
(891)
(76)
(76)
(92) 517
(92) 517
(55)
(95)
(55)
(95)
—
—
—
—
42
42
42
42
—
—
—
—
(925) (134) 504
(925) (134) 504
956
(501) 359
956
(501) 359
—
—
42
42
11
11
Costs for defined contribution plans were $177 million, $358 million and $422 million in 2021, 2020 and 2019, respectively.
Costs for defined contribution plans were $177 million, $358 million and $422 million in 2021, 2020 and 2019, respectively.
99
99
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of the change in accumulated other comprehensive income is shown in the table below:
A summary of the change in accumulated other comprehensive income is shown in the table below:
(Charge)/credit to other comprehensive income, before tax
(Charge)/credit to other comprehensive income, before tax
U.S. pension
U.S. pension
Non-U.S. pension
Non-U.S. pension
Other postretirement benefits
Other postretirement benefits
Total (charge)/credit to other comprehensive income, before tax
Total (charge)/credit to other comprehensive income, before tax
(Charge)/credit to income tax (see Note 4)
(Charge)/credit to income tax (see Note 4)
(Charge)/credit to investment in equity companies
(Charge)/credit to investment in equity companies
(Charge)/credit to other comprehensive income including noncontrolling interests,
(Charge)/credit to other comprehensive income including noncontrolling interests,
Charge/(credit) to equity of noncontrolling interests
Charge/(credit) to equity of noncontrolling interests
(Charge)/credit to other comprehensive income attributable to ExxonMobil
(Charge)/credit to other comprehensive income attributable to ExxonMobil
after tax
after tax
Total Pension and Other Postretirement Benefits
Total Pension and Other Postretirement Benefits
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
2019
2019
1,286
1,286
3,009
3,009
925
925
5,220
5,220
(1,287)
(1,287)
110
110
4,043
4,043
(217)
(217)
3,826
3,826
1,145
1,145
(90)
(90)
134
134
1,189
1,189
(153)
(153)
(110)
(110)
926
926
30
30
956
956
(135)
(135)
(1,402)
(1,402)
(504)
(504)
(2,041)
(2,041)
550
550
(19)
(19)
(1,510)
(1,510)
146
146
(1,364)
(1,364)
The Corporation’s investment strategy for benefit plan assets reflects a long-term view, a careful assessment of the risks inherent in
The Corporation’s investment strategy for benefit plan assets reflects a long-term view, a careful assessment of the risks inherent in
plan assets and liabilities and broad diversification to reduce the risk of the portfolio. The benefit plan assets are primarily invested in
plan assets and liabilities and broad diversification to reduce the risk of the portfolio. The benefit plan assets are primarily invested in
passive global equity and local currency fixed income index funds to diversify risk while minimizing costs. The equity funds hold
passive global equity and local currency fixed income index funds to diversify risk while minimizing costs. The equity funds hold
ExxonMobil stock only to the extent necessary to replicate the relevant equity index. The fixed income funds are largely invested in
ExxonMobil stock only to the extent necessary to replicate the relevant equity index. The fixed income funds are largely invested in
investment grade corporate and government debt securities with interest rate sensitivity designed to approximate the interest rate
investment grade corporate and government debt securities with interest rate sensitivity designed to approximate the interest rate
sensitivity of plan liabilities.
sensitivity of plan liabilities.
Target asset allocations for benefit plans are reviewed periodically and set based on considerations such as risk, diversification,
Target asset allocations for benefit plans are reviewed periodically and set based on considerations such as risk, diversification,
liquidity and funding level. The target asset allocations for the major benefit plans range from 10 to 30 percent in equity securities and
liquidity and funding level. The target asset allocations for the major benefit plans range from 10 to 30 percent in equity securities and
the remainder in fixed income securities. The equity for the U.S. and certain non-U.S. plans include allocations to private equity
the remainder in fixed income securities. The equity for the U.S. and certain non-U.S. plans include allocations to private equity
partnerships that primarily focus on early-stage venture capital of less than 5 percent.
partnerships that primarily focus on early-stage venture capital of less than 5 percent.
The fair value measurement levels are accounting terms that refer to different methods of valuing assets. The terms do not represent
The fair value measurement levels are accounting terms that refer to different methods of valuing assets. The terms do not represent
the relative risk or credit quality of an investment.
the relative risk or credit quality of an investment.
100
100
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The 2021 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:
The 2021 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:
U.S. Pension
U.S. Pension
Fair Value Measurement at
December 31, 2021, Using:
Fair Value Measurement at
December 31, 2021, Using:
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
Net
Asset
Net
Value
Asset
Value
Non-U.S. Pension
Non-U.S. Pension
Fair Value Measurement at
December 31, 2021, Using:
Fair Value Measurement at
December 31, 2021, Using:
Level 1
Level 1
Total
Total
(millions of dollars)
(millions of dollars)
Level 2
Level 2
Level 3
Level 3
Net
Asset
Net
Value
Asset
Value
Total
Total
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,242 (2)
5,242 (2)
3,945 (2)
3,945 (2)
—
—
—
—
9,187
9,187
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,956
1,956
1,290
1,290
661
661
1
1
2
2
1
1
162
162
4,073
4,073
1,956
1,956
1,290
1,290
661
661
5,243
5,243
3,947
3,947
1
1
162
162
13,260
13,260
6
6
13,266
13,266
—
—
76 (1)
76 (1)
—
—
—
—
209 (3)
209 (3)
—
—
62
62
347
347
—
—
—
—
—
—
119 (2)
119 (2)
97 (2)
97 (2)
25 (2)
25 (2)
53 (4)
53 (4)
294
294
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3,416
3,416
2,424
2,424
627
627
5,831
5,831
11,620
11,620
191
191
108
108
24,217
24,217
3,416
3,416
2,500
2,500
627
627
5,950
5,950
11,926
11,926
216
216
223
223
24,858
24,858
22
22
24,880
24,880
Asset category:
Asset category:
Equity securities
Equity securities
U.S.
U.S.
Non-U.S.
Non-U.S.
Private equity
Private equity
Debt securities
Debt securities
Corporate
Corporate
Government
Government
Asset-backed
Asset-backed
Cash
Cash
Total at fair value
Total at fair value
Insurance contracts at
contract value
Insurance contracts at
contract value
Total plan assets
Total plan assets
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a Level 2 input.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a Level 2 input.
transactions.
transactions.
Asset category:
Asset category:
Equity securities
Equity securities
U.S.
U.S.
Non-U.S.
Non-U.S.
Debt securities
Debt securities
Corporate
Corporate
Government
Government
Asset-backed
Asset-backed
Cash
Cash
Total at fair value
Total at fair value
Fair Value Measurement at December 31, 2021, Using:
Fair Value Measurement at December 31, 2021, Using:
Other Postretirement
Other Postretirement
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
(millions of dollars)
(millions of dollars)
Net Asset
Value
Net Asset
Value
91 (1)
91 (1)
45 (1)
45 (1)
—
—
—
—
—
—
—
—
136
136
—
—
—
—
95 (2)
95 (2)
206 (2)
206 (2)
—
—
3
3
304
304
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
Total
Total
91
91
45
45
95
95
206
206
—
—
3
3
440
440
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
transactions.
transactions.
101
101
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The 2020 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:
The 2020 fair value of the benefit plan assets, including the level within the fair value hierarchy, is shown in the tables below:
U.S. Pension
U.S. Pension
Fair Value Measurement at
December 31, 2020, Using:
Fair Value Measurement at
December 31, 2020, Using:
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
Non-U.S. Pension
Non-U.S. Pension
Fair Value Measurement at
December 31, 2020, Using:
Fair Value Measurement at
December 31, 2020, Using:
Level 3
Level 3
Level 2
Level 2
Level 1
Level 1
Total
Total
(millions of dollars)
(millions of dollars)
Net
Asset
Net
Value
Asset
Value
Net
Asset
Net
Value
Asset
Value
Total
Total
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
5,146 (2)
5,146 (2)
5,261 (2)
5,261 (2)
—
—
—
—
10,407
10,407
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
2,323
2,323
1,703
1,703
548
548
1
1
2
2
1
1
308
308
4,886
4,886
2,323
2,323
1,703
1,703
548
548
5,147
5,147
5,263
5,263
1
1
308
308
15,293
15,293
7
7
15,300
15,300
—
—
—
—
89 (1)
89 (1)
—
—
250 (3)
250 (3)
—
—
69
69
408
408
—
—
—
—
—
—
138 (2)
138 (2)
116 (2)
116 (2)
24 (2)
24 (2)
21 (4)
21 (4)
299
299
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
4,177
4,177
3,285
3,285
530
530
5,212
5,212
11,993
11,993
239
239
50
50
25,486
25,486
4,177
4,177
3,374
3,374
530
530
5,350
5,350
12,359
12,359
263
263
140
140
26,193
26,193
23
23
26,216
26,216
Asset category:
Asset category:
Equity securities
Equity securities
U.S.
U.S.
Non-U.S.
Non-U.S.
Private equity
Private equity
Debt securities
Debt securities
Corporate
Corporate
Government
Government
Asset-backed
Asset-backed
Cash
Cash
Total at fair value
Total at fair value
Insurance contracts at
contract value
Insurance contracts at
contract value
Total plan assets
Total plan assets
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(1) For non-U.S. equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(3) For government debt securities that are traded on active exchanges, fair value is based on observable quoted prices.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a Level 2 input.
(4) For cash balances that are subject to withdrawal penalties or other adjustments, the fair value is treated as a Level 2 input.
transactions.
transactions.
Asset category:
Asset category:
Equity securities
Equity securities
U.S.
U.S.
Non-U.S.
Non-U.S.
Debt securities
Debt securities
Corporate
Corporate
Government
Government
Asset-backed
Asset-backed
Cash
Cash
Total at fair value
Total at fair value
Other Postretirement
Other Postretirement
Fair Value Measurement at December 31, 2020, Using:
Fair Value Measurement at December 31, 2020, Using:
Level 1
Level 1
Level 2
Level 2
Level 3
Level 3
(millions of dollars)
(millions of dollars)
Net Asset
Value
Net Asset
Value
88 (1)
88 (1)
48 (1)
48 (1)
—
—
—
—
—
—
—
—
136
136
—
—
—
—
103 (2)
103 (2)
204 (2)
204 (2)
—
—
—
—
307
307
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
3
3
3
3
Total
Total
88
88
48
48
103
103
204
204
—
—
3
3
446
446
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(1) For equity securities held in separate accounts, fair value is based on observable quoted prices on active exchanges.
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
(2) For corporate, government and asset-backed debt securities, fair value is based on observable inputs of comparable market
transactions.
transactions.
102
102
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
A summary of pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown
A summary of pension plans with an accumulated benefit obligation and projected benefit obligation in excess of plan assets is shown
in the table below:
in the table below:
For funded pension plans with an accumulated benefit obligation
For funded pension plans with an accumulated benefit obligation
in excess of plan assets:
in excess of plan assets:
Accumulated benefit obligation
Accumulated benefit obligation
Fair value of plan assets
Fair value of plan assets
For funded pension plans with a projected benefit obligation
For funded pension plans with a projected benefit obligation
in excess of plan assets:
in excess of plan assets:
Projected benefit obligation
Projected benefit obligation
Fair value of plan assets
Fair value of plan assets
For unfunded pension plans:
For unfunded pension plans:
Projected benefit obligation
Projected benefit obligation
Accumulated benefit obligation
Accumulated benefit obligation
All other postretirement benefit plans are unfunded or underfunded.
All other postretirement benefit plans are unfunded or underfunded.
U.S.
U.S.
2021
2021
14,511
14,511
13,266
13,266
16,836
16,836
13,266
13,266
1,675
1,675
1,270
1,270
Pension Benefits
Pension Benefits
2020
2020
(millions of dollars)
(millions of dollars)
Non-U.S.
Non-U.S.
2020
2020
2021
2021
16,129
16,129
15,300
15,300
19,456
19,456
15,300
15,300
2,206
2,206
1,373
1,373
3,108
3,108
1,711
1,711
4,840
4,840
2,849
2,849
5,166
5,166
4,685
4,685
4,602
4,602
2,652
2,652
13,836
13,836
10,681
10,681
6,187
6,187
5,469
5,469
Pension Benefits
Pension Benefits
U.S.
U.S.
Non-U.S.
Non-U.S.
Other Postretirement Benefits
Other Postretirement Benefits
Medicare
Subsidy Receipt
Medicare
Subsidy Receipt
Gross
Gross
(millions of dollars)
(millions of dollars)
Contributions expected in 2022
Contributions expected in 2022
Benefit payments expected in:
Benefit payments expected in:
2022
2022
2023
2023
2024
2024
2025
2025
2026
2026
2027 - 2031
2027 - 2031
640
640
1,306
1,306
1,188
1,188
1,179
1,179
1,157
1,157
1,154
1,154
5,803
5,803
405
405
1,173
1,173
1,176
1,176
1,205
1,205
1,173
1,173
1,155
1,155
6,145
6,145
—
—
423
423
414
414
409
409
405
405
396
396
1,981
1,981
—
—
21
21
22
22
23
23
24
24
25
25
132
132
18. Disclosures about Segments and Related Information
18. Disclosures about Segments and Related Information
The Upstream, Downstream and Chemical functions best define the operating segments of the business that are reported separately.
The Upstream, Downstream and Chemical functions best define the operating segments of the business that are reported separately.
The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment.
The factors used to identify these reportable segments are based on the nature of the operations that are undertaken by each segment.
The Upstream segment is organized and operates to explore for and produce crude oil and natural gas. The Downstream segment is
The Upstream segment is organized and operates to explore for and produce crude oil and natural gas. The Downstream segment is
organized and operates to manufacture and sell petroleum products. The Chemical segment is organized and operates to manufacture
organized and operates to manufacture and sell petroleum products. The Chemical segment is organized and operates to manufacture
and sell petrochemicals. These segments are broadly understood across the petroleum and petrochemical industries.
and sell petrochemicals. These segments are broadly understood across the petroleum and petrochemical industries.
These functions have been defined as the operating segments of the Corporation because they are the segments (1) that engage in
These functions have been defined as the operating segments of the Corporation because they are the segments (1) that engage in
business activities from which revenues are recognized and expenses are incurred; (2) whose operating results are regularly reviewed
business activities from which revenues are recognized and expenses are incurred; (2) whose operating results are regularly reviewed
by the Corporation’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its
by the Corporation’s chief operating decision maker to make decisions about resources to be allocated to the segment and to assess its
performance; and (3) for which discrete financial information is available.
performance; and (3) for which discrete financial information is available.
Earnings after income tax include transfers at estimated market prices.
Earnings after income tax include transfers at estimated market prices.
In Corporate and Financing, interest revenue relates to interest earned on cash deposits and marketable securities. Interest expense
In Corporate and Financing, interest revenue relates to interest earned on cash deposits and marketable securities. Interest expense
includes non-debt-related interest expense of $103 million in 2021, $148 million in 2020 and $105 million in 2019.
includes non-debt-related interest expense of $103 million in 2021, $148 million in 2020 and $105 million in 2019.
103
103
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Upstream
Upstream
U.S.
U.S.
Non-U.S.
Non-U.S.
As of December 31, 2021
As of December 31, 2021
Earnings (loss) after income tax
Earnings (loss) after income tax
Earnings of equity companies included above
Earnings of equity companies included above
Sales and other operating revenue
Sales and other operating revenue
Intersegment revenue
Intersegment revenue
Depreciation and depletion expense
Depreciation and depletion expense
Interest revenue
Interest revenue
Interest expense
Interest expense
Income tax expense (benefit)
Income tax expense (benefit)
Additions to property, plant and equipment
Additions to property, plant and equipment
Investments in equity companies
Investments in equity companies
Total assets
Total assets
As of December 31, 2020
As of December 31, 2020
Earnings (loss) after income tax
Earnings (loss) after income tax
Effect of asset impairments - noncash
Effect of asset impairments - noncash
Earnings of equity companies included above
Earnings of equity companies included above
Sales and other operating revenue
Sales and other operating revenue
Intersegment revenue
Intersegment revenue
Depreciation and depletion expense
Depreciation and depletion expense
Interest revenue
Interest revenue
Interest expense
Interest expense
Income tax expense (benefit)
Income tax expense (benefit)
Additions to property, plant and equipment
Additions to property, plant and equipment
Investments in equity companies
Investments in equity companies
Total assets
Total assets
As of December 31, 2019
As of December 31, 2019
Earnings (loss) after income tax
Earnings (loss) after income tax
Earnings of equity companies included above
Earnings of equity companies included above
Sales and other operating revenue
Sales and other operating revenue
Intersegment revenue
Intersegment revenue
Depreciation and depletion expense
Depreciation and depletion expense
Interest revenue
Interest revenue
Interest expense
Interest expense
Income tax expense (benefit)
Income tax expense (benefit)
Additions to property, plant and equipment
Additions to property, plant and equipment
Investments in equity companies
Investments in equity companies
Total assets
Total assets
Downstream
Downstream
Non-U.S.
Non-U.S.
U.S.
U.S.
Chemical
Chemical
Non-U.S.
Non-U.S.
U.S.
U.S.
(millions of dollars)
(millions of dollars)
Corporate
and
Corporate
Financing
and
Financing
Corporate
Total
Corporate
Total
3,663
3,663
288
288
8,883
8,883
16,692
16,692
6,831
6,831
—
—
58
58
1,116
1,116
3,308
3,308
4,999
4,999
67,294
67,294
12,112
12,112
5,535
5,535
12,914
12,914
33,405
33,405
9,918
9,918
—
—
36
36
4,871
4,871
5,308
5,308
18,544
18,544
141,978
141,978
1,314
1,314
122
122
80,044
80,044
21,622
21,622
724
724
—
—
1
1
379
379
997
997
352
352
27,436
27,436
791
791
74
74
137,963
137,963
27,065
27,065
1,031
1,031
—
—
7
7
160
160
983
983
888
888
39,630
39,630
4,502
4,502
(139)
(139)
15,309
15,309
9,639
9,639
578
578
—
—
—
—
1,476
1,476
548
548
3,020
3,020
19,069
19,069
3,294
3,294
1,131
1,131
21,549
21,549
6,047
6,047
650
650
—
—
1
1
688
688
739
739
3,759
3,759
20,653
20,653
(2,636)
(2,636)
(354)
(354)
30
30
227
227
875
875
33
33
844
844
(1,054)
(1,054)
658
658
(337)
(337)
22,863
22,863
23,040
23,040
6,657
6,657
276,692
276,692
—
—
20,607
20,607
33
33
947
947
7,636
7,636
12,541
12,541
31,225
31,225
338,923
338,923
(19,385)
(19,385)
(17,138)
(17,138)
(559)
(559)
5,876
5,876
8,508
8,508
28,627
28,627
—
—
52
52
(5,958)
(5,958)
5,726
5,726
4,792
4,792
71,287
71,287
(645)
(645)
(2,287)
(2,287)
2,101
2,101
8,673
8,673
19,642
19,642
12,723
12,723
—
—
93
93
742
742
4,418
4,418
18,135
18,135
144,730
144,730
(852)
(852)
(15)
(15)
134
134
48,256
48,256
12,258
12,258
716
716
—
—
1
1
(324)
(324)
2,983
2,983
352
352
23,754
23,754
(225)
(225)
(609)
(609)
(190)
(190)
92,640
92,640
15,162
15,162
1,672
1,672
—
—
21
21
393
393
1,731
1,731
879
879
34,848
34,848
1,277
1,277
(100)
(100)
(21)
(21)
8,529
8,529
6,099
6,099
685
685
—
—
—
—
440
440
1,221
1,221
2,543
2,543
17,839
17,839
686
686
(69)
(69)
651
651
14,562
14,562
3,881
3,881
694
694
—
—
—
—
272
272
592
592
3,514
3,514
20,220
20,220
(3,296)
(3,296)
(35)
(35)
(384)
(384)
38
38
221
221
892
892
49
49
991
991
(1,197)
(1,197)
671
671
(443)
(443)
20,072
20,072
(22,440)
(22,440)
(20,253)
(20,253)
1,732
1,732
178,574
178,574
—
—
46,009
46,009
49
49
1,158
1,158
(5,632)
(5,632)
17,342
17,342
29,772
29,772
332,750
332,750
536
536
282
282
9,364
9,364
10,893
10,893
6,162
6,162
—
—
54
54
(151)
(151)
10,404
10,404
5,313
5,313
95,750
95,750
13,906
13,906
4,534
4,534
13,779
13,779
30,864
30,864
9,305
9,305
—
—
34
34
5,509
5,509
7,347
7,347
17,736
17,736
151,181
151,181
1,717
1,717
196
196
70,523
70,523
22,416
22,416
674
674
—
—
1
1
465
465
2,685
2,685
319
319
23,442
23,442
606
606
19
19
134,460
134,460
24,775
24,775
832
832
—
—
9
9
361
361
1,777
1,777
1,062
1,062
37,133
37,133
206
206
(4)
(4)
9,723
9,723
7,864
7,864
555
555
—
—
—
—
58
58
1,344
1,344
1,835
1,835
16,544
16,544
386
386
818
818
17,693
17,693
5,905
5,905
621
621
—
—
1
1
305
305
589
589
3,335
3,335
20,376
20,376
(3,017)
(3,017)
(404)
(404)
41
41
224
224
849
849
84
84
731
731
(1,265)
(1,265)
758
758
(309)
(309)
18,171
18,171
14,340
14,340
5,441
5,441
255,583
255,583
—
—
18,998
18,998
84
84
830
830
5,282
5,282
24,904
24,904
29,291
29,291
362,597
362,597
104
104
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Geographic
Geographic
Sales and other operating revenue
Sales and other operating revenue
United States
United States
Non-U.S.
Non-U.S.
Total
Total
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
2019
2019
104,236
104,236
172,456
172,456
276,692
276,692
62,663
62,663
115,911
115,911
178,574
178,574
89,612
89,612
165,971
165,971
255,583
255,583
Significant non-U.S. revenue sources include: (1)
Significant non-U.S. revenue sources include: (1)
Canada
Canada
Singapore
Singapore
United Kingdom
United Kingdom
France
France
Italy
Italy
Belgium
Belgium
Australia
Australia
19,735
19,735
12,128
12,128
17,479
17,479
12,740
12,740
10,459
10,459
11,644
11,644
7,941
7,941
(1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in Non-U.S.
(1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in Non-U.S.
13,093
13,093
9,442
9,442
11,055
11,055
8,676
8,676
7,091
7,091
6,231
6,231
5,839
5,839
22,166
22,166
15,031
15,031
14,759
14,759
13,236
13,236
10,056
10,056
9,153
9,153
7,646
7,646
operations where attribution to a specific country is not practicable.
operations where attribution to a specific country is not practicable.
Long-lived assets
Long-lived assets
United States
United States
Non-U.S.
Non-U.S.
Total
Total
Significant non-U.S. long-lived assets include:
Significant non-U.S. long-lived assets include:
Canada
Canada
Australia
Australia
Singapore
Singapore
Kazakhstan
Kazakhstan
Papua New Guinea
Papua New Guinea
United Arab Emirates
United Arab Emirates
Nigeria
Nigeria
Guyana
Guyana
Brazil
Brazil
Russia
Russia
Angola
Angola
2021
2021
December 31,
December 31,
2020
2020
(millions of dollars)
(millions of dollars)
2019
2019
90,412
90,412
126,140
126,140
216,552
216,552
94,732
94,732
132,821
132,821
227,553
227,553
114,372
114,372
138,646
138,646
253,018
253,018
34,907
34,907
12,988
12,988
11,969
11,969
8,463
8,463
7,534
7,534
5,392
5,392
5,235
5,235
4,892
4,892
4,337
4,337
4,055
4,055
3,207
3,207
36,232
36,232
14,792
14,792
12,129
12,129
8,882
8,882
7,803
7,803
5,381
5,381
6,345
6,345
3,547
3,547
3,281
3,281
4,616
4,616
4,405
4,405
39,130
39,130
13,933
13,933
11,645
11,645
9,315
9,315
8,057
8,057
5,262
5,262
7,640
7,640
2,542
2,542
3,338
3,338
5,135
5,135
5,784
5,784
105
105
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
19. Income and Other Taxes
19. Income and Other Taxes
State
State
Income tax expense (benefit)
Income tax expense (benefit)
Federal and non-U.S.
Federal and non-U.S.
Current
Current
Deferred - net
Deferred - net
U.S. tax on non-U.S. operations
U.S. tax on non-U.S. operations
Total federal and non-U.S.
Total federal and non-U.S.
Total income tax expense
(benefit)
Total income tax expense
(benefit)
All other taxes and duties
All other taxes and duties
Other taxes and duties
Other taxes and duties
Included in production
Included in production
Included in SG&A expenses
Included in SG&A expenses
and manufacturing expenses
and manufacturing expenses
Total other taxes and duties
Total other taxes and duties
Total
Total
2021
2021
Non-U.S.
Non-U.S.
U.S.
U.S.
Total
Total
U.S.
U.S.
2020
2020
Non-U.S.
Non-U.S.
(millions of dollars)
(millions of dollars)
Total
Total
U.S.
U.S.
2019
2019
Non-U.S.
Non-U.S.
Total
Total
236
236
870
870
26
26
1,132
1,132
470
470
1,602
1,602
3,731
3,731
1,589
1,589
170
170
5,490
5,490
7,092
7,092
6,948
6,948
7,184
7,184
262
262
2,908
2,908
3,170
3,170
(914)
(914)
—
—
6,034
6,034
—
—
6,034
6,034
13
13
(44) (6,045) (2,007) (8,052)
(44) (6,045) (2,007) (8,052)
26
26
7,166
7,166
470
470
7,636
7,636
(4,869)
(4,869)
(763)
(763)
(5,632)
(5,632)
(5,770)
(5,770)
(763)
(763)
(6,533)
(6,533)
—
—
901
901
—
—
901
901
13
13
(121) 6,171
(121) 6,171
(255)
(255)
89
89
(420)
(420)
—
—
(287) 5,751
(287) 5,751
—
(182)
(182)
—
(469) 5,751
(469) 5,751
6,050
6,050
(675)
(675)
89
89
5,464
5,464
(182)
(182)
5,282
5,282
26,508
26,508
674
674
283
283
27,465
27,465
33,499
33,499
30,239
30,239
2,263
2,263
453
453
32,955
32,955
40,591
40,591
23,014
3,108
23,014
3,108
663
1,148
663
1,148
328
164
328
164
24,005
4,420
4,420
24,005
(2,113) 24,906
(2,113) 24,906
26,122
26,122
1,811
1,811
492
492
28,425
28,425
22,793
22,793
3,566
3,566
1,385
1,385
160
160
5,111
5,111
4,642
4,642
26,959
26,959
811
811
305
305
28,075
28,075
33,826
33,826
30,525
30,525
2,196
2,196
465
465
33,186
33,186
38,468
38,468
The above provisions for deferred income taxes include net benefits of $53 million in 2021, $25 million in 2020, and $740 million in
The above provisions for deferred income taxes include net benefits of $53 million in 2021, $25 million in 2020, and $740 million in
2019 related to changes in tax laws and rates, and a benefit of $6.3 billion in 2020 related to asset impairments.
2019 related to changes in tax laws and rates, and a benefit of $6.3 billion in 2020 related to asset impairments.
106
106
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The reconciliation between income tax expense (credit) and a theoretical U.S. tax computed by applying a rate of 21 percent for 2021,
The reconciliation between income tax expense (credit) and a theoretical U.S. tax computed by applying a rate of 21 percent for 2021,
2020 and 2019 is as follows:
2020 and 2019 is as follows:
Income (loss) before income taxes
Income (loss) before income taxes
United States
United States
Non-U.S.
Non-U.S.
Total
Total
Theoretical tax
Theoretical tax
Effect of equity method of accounting
Effect of equity method of accounting
Non-U.S. taxes in excess of/(less than) theoretical U.S. tax (1)(2)
Non-U.S. taxes in excess of/(less than) theoretical U.S. tax (1)(2)
State taxes, net of federal tax benefit (1)
State taxes, net of federal tax benefit (1)
Other
Other
Total income tax expense (credit)
Total income tax expense (credit)
Effective tax rate calculation
Effective tax rate calculation
Income tax expense (credit)
Income tax expense (credit)
ExxonMobil share of equity company income taxes
ExxonMobil share of equity company income taxes
Total income tax expense (credit)
Total income tax expense (credit)
Net income (loss) including noncontrolling interests
Net income (loss) including noncontrolling interests
Total income (loss) before taxes
Total income (loss) before taxes
Effective income tax rate
Effective income tax rate
2021
2021
2020
2020
(millions of dollars)
(millions of dollars)
9,478
9,478
21,756
21,756
31,234
31,234
6,559
6,559
(1,398)
(1,398)
2,809
2,809
371
371
(705)
(705)
7,636
7,636
7,636
7,636
2,756
2,756
10,392
10,392
23,598
23,598
33,990
33,990
31 %
31 %
(27,704)
(27,704)
(1,179)
(1,179)
(28,883)
(28,883)
(6,065)
(6,065)
(364)
(364)
1,606
1,606
(603)
(603)
(206)
(206)
(5,632)
(5,632)
(5,632)
(5,632)
861
861
(4,771)
(4,771)
(23,251)
(23,251)
(28,022)
(28,022)
17 %
17 %
2019
2019
(53)
(53)
20,109
20,109
20,056
20,056
4,212
4,212
(1,143)
(1,143)
2,573
2,573
(144)
(144)
(216)
(216)
5,282
5,282
5,282
5,282
2,490
2,490
7,772
7,772
14,774
14,774
22,546
22,546
34 %
34 %
(1) 2020 includes the impact of an increase in valuation allowance of $647 million in non-U.S. and $115 million in U.S. state
(1) 2020 includes the impact of an increase in valuation allowance of $647 million in non-U.S. and $115 million in U.S. state
(2) 2019 includes taxes less than the theoretical U.S. tax of $773 million from Norway operations and the sale of upstream assets,
(2) 2019 includes taxes less than the theoretical U.S. tax of $773 million from Norway operations and the sale of upstream assets,
jurisdictions.
jurisdictions.
$657 million from a tax rate change in Alberta, Canada, and $268 million from an adjustment to a prior year tax position.
$657 million from a tax rate change in Alberta, Canada, and $268 million from an adjustment to a prior year tax position.
107
107
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial
Deferred income taxes reflect the impact of temporary differences between the amount of assets and liabilities recognized for financial
reporting purposes and such amounts recognized for tax purposes.
reporting purposes and such amounts recognized for tax purposes.
Deferred tax liabilities/(assets) are comprised of the following at December 31:
Deferred tax liabilities/(assets) are comprised of the following at December 31:
Tax effects of temporary differences for:
Tax effects of temporary differences for:
2020
2020
2021
2021
(millions of dollars)
(millions of dollars)
27,888
27,888
6,353
6,353
34,241
34,241
(3,687)
(3,687)
(2,865)
(2,865)
(6,914)
(6,914)
(7,694)
(7,694)
(21,160)
(21,160)
2,634
2,634
15,715
15,715
28,778
28,778
6,427
6,427
35,205
35,205
(4,703)
(4,703)
(3,150)
(3,150)
(8,982)
(8,982)
(7,095)
(7,095)
(23,930)
(23,930)
2,731
2,731
14,006
14,006
(millions of dollars)
(millions of dollars)
(4,450)
(4,450)
20,165
20,165
15,715
15,715
(4,159)
(4,159)
18,165
18,165
14,006
14,006
Property, plant and equipment
Property, plant and equipment
Other liabilities
Other liabilities
Total deferred tax liabilities
Total deferred tax liabilities
Pension and other postretirement benefits
Pension and other postretirement benefits
Asset retirement obligations
Asset retirement obligations
Tax loss carryforwards
Tax loss carryforwards
Other assets
Other assets
Total deferred tax assets
Total deferred tax assets
Asset valuation allowances
Asset valuation allowances
Net deferred tax liabilities
Net deferred tax liabilities
Other assets, including intangibles, net
Other assets, including intangibles, net
Deferred income tax liabilities
Deferred income tax liabilities
Net deferred tax liabilities
Net deferred tax liabilities
In 2021, asset valuation allowances of $2,634 million decreased by $97 million and included net provisions of $41 million and foreign
In 2021, asset valuation allowances of $2,634 million decreased by $97 million and included net provisions of $41 million and foreign
currency effects of $137 million.
currency effects of $137 million.
Balance sheet classification
Balance sheet classification
2020
2020
2021
2021
The Corporation’s undistributed earnings from subsidiary companies outside the United States include amounts that have been
The Corporation’s undistributed earnings from subsidiary companies outside the United States include amounts that have been
retained to fund prior and future capital project expenditures. Deferred income taxes have not been recorded for potential future tax
retained to fund prior and future capital project expenditures. Deferred income taxes have not been recorded for potential future tax
obligations, such as foreign withholding tax and state tax, as these undistributed earnings are expected to be indefinitely reinvested for
obligations, such as foreign withholding tax and state tax, as these undistributed earnings are expected to be indefinitely reinvested for
the foreseeable future. As of December 31, 2021, it is not practicable to estimate the unrecognized deferred tax liability. However,
the foreseeable future. As of December 31, 2021, it is not practicable to estimate the unrecognized deferred tax liability. However,
unrecognized deferred taxes on remittance of these funds are not expected to be material.
unrecognized deferred taxes on remittance of these funds are not expected to be material.
Unrecognized Tax Benefits. The Corporation is subject to income taxation in many jurisdictions around the world. The benefits of
Unrecognized Tax Benefits. The Corporation is subject to income taxation in many jurisdictions around the world. The benefits of
uncertain tax positions that the Corporation has taken or expects to take in its income tax returns are recognized in the financial
uncertain tax positions that the Corporation has taken or expects to take in its income tax returns are recognized in the financial
statements if management concludes that it is more likely than not that the position will be sustained with the tax authorities. For a
statements if management concludes that it is more likely than not that the position will be sustained with the tax authorities. For a
position that is likely to be sustained, the benefit recognized in the financial statements is measured at the largest amount that is greater
position that is likely to be sustained, the benefit recognized in the financial statements is measured at the largest amount that is greater
than 50 percent likely of being realized. Unrecognized tax benefits reflect the difference between positions taken or expected to be
than 50 percent likely of being realized. Unrecognized tax benefits reflect the difference between positions taken or expected to be
taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in
taken on income tax returns and the amounts recognized in the financial statements. The following table summarizes the movement in
unrecognized tax benefits:
unrecognized tax benefits:
Gross unrecognized tax benefits
Gross unrecognized tax benefits
2019
2019
2021
2021
Balance at January 1
Balance at January 1
Additions based on current year's tax positions
Additions based on current year's tax positions
Additions for prior years' tax positions
Additions for prior years' tax positions
Reductions for prior years' tax positions
Reductions for prior years' tax positions
Reductions due to lapse of the statute of limitations
Reductions due to lapse of the statute of limitations
Settlements with tax authorities
Settlements with tax authorities
Foreign exchange effects/other
Foreign exchange effects/other
Balance at December 31
Balance at December 31
108
108
2020
2020
(millions of dollars)
(millions of dollars)
8,844
8,844
253
253
218
218
(201)
(201)
(237)
(237)
(113)
(113)
—
—
8,764
8,764
8,764
8,764
358
358
100
100
(79)
(79)
(2)
(2)
(11)
(11)
—
—
9,130
9,130
9,174
9,174
287
287
120
120
(97)
(97)
(279)
(279)
(538)
(538)
177
177
8,844
8,844
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
The gross unrecognized tax benefit balances are predominantly related to tax positions that would reduce the Corporation’s effective
The gross unrecognized tax benefit balances are predominantly related to tax positions that would reduce the Corporation’s effective
tax rate if the positions are favorably resolved. Unfavorable resolution of these tax positions generally would not increase the effective
tax rate if the positions are favorably resolved. Unfavorable resolution of these tax positions generally would not increase the effective
tax rate. The 2021, 2020 and 2019 changes in unrecognized tax benefits did not have a material effect on the Corporation’s net
tax rate. The 2021, 2020 and 2019 changes in unrecognized tax benefits did not have a material effect on the Corporation’s net
income.
income.
Resolution of these tax positions through negotiations with the relevant tax authorities or through litigation will take many years to
Resolution of these tax positions through negotiations with the relevant tax authorities or through litigation will take many years to
complete. It is difficult to predict the timing of resolution for these tax positions since the timing is not entirely within the control of
complete. It is difficult to predict the timing of resolution for these tax positions since the timing is not entirely within the control of
the Corporation. In the United States, the Corporation has various ongoing U.S. federal income tax positions at issue with the Internal
the Corporation. In the United States, the Corporation has various ongoing U.S. federal income tax positions at issue with the Internal
Revenue Service (IRS) for tax years beginning in 2006. The Corporation filed a refund suit for tax years 2006-2009 in U.S. federal
Revenue Service (IRS) for tax years beginning in 2006. The Corporation filed a refund suit for tax years 2006-2009 in U.S. federal
district court (District Court) with respect to the positions at issue for those years. These positions are reflected in the unrecognized tax
district court (District Court) with respect to the positions at issue for those years. These positions are reflected in the unrecognized tax
benefits table. On February 24, 2020, the Corporation received an adverse ruling on this suit. The IRS has asserted penalties associated
benefits table. On February 24, 2020, the Corporation received an adverse ruling on this suit. The IRS has asserted penalties associated
with several of those positions. The Corporation has not recognized the penalties as an expense because the Corporation does not
with several of those positions. The Corporation has not recognized the penalties as an expense because the Corporation does not
expect the penalties to be sustained under applicable law. On January 13, 2021, the District Court ruled that no penalties apply to the
expect the penalties to be sustained under applicable law. On January 13, 2021, the District Court ruled that no penalties apply to the
Corporation's positions in this suit. The Corporation and the government have appealed the District Court's rulings to the U.S. Court of
Corporation's positions in this suit. The Corporation and the government have appealed the District Court's rulings to the U.S. Court of
Appeals for the Fifth Circuit (Fifth Circuit). Proceedings in the Fifth Circuit are continuing. Unfavorable resolution of all positions at
Appeals for the Fifth Circuit (Fifth Circuit). Proceedings in the Fifth Circuit are continuing. Unfavorable resolution of all positions at
issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.
issue with the IRS would not have a material adverse effect on the Corporation’s operations or financial condition.
It is reasonably possible that the total amount of unrecognized tax benefits could increase by up to 10 percent or decrease by up to
It is reasonably possible that the total amount of unrecognized tax benefits could increase by up to 10 percent or decrease by up to
70 percent in the next 12 months. Such a decrease would result primarily from final resolution of the U.S. federal income tax litigation
70 percent in the next 12 months. Such a decrease would result primarily from final resolution of the U.S. federal income tax litigation
within this timeframe.
within this timeframe.
The following table summarizes the tax years that remain subject to examination by major tax jurisdiction:
The following table summarizes the tax years that remain subject to examination by major tax jurisdiction:
Country of Operation
Country of Operation
Abu Dhabi
Abu Dhabi
Angola
Angola
Australia
Australia
Belgium
Belgium
Canada
Canada
Equatorial Guinea
Equatorial Guinea
Indonesia
Indonesia
Iraq
Iraq
Malaysia
Malaysia
Nigeria
Nigeria
Papua New Guinea
Papua New Guinea
Russia
Russia
United Kingdom
United Kingdom
United States
United States
Open Tax Years
Open Tax Years
2020 — 2021
2020 — 2021
2018 — 2021
2018 — 2021
2010 — 2021
2010 — 2021
2017 — 2021
2017 — 2021
2001 — 2021
2001 — 2021
2007 — 2021
2007 — 2021
2008 — 2021
2008 — 2021
2016 — 2021
2016 — 2021
2017 — 2021
2017 — 2021
2006 — 2021
2006 — 2021
2008 — 2021
2008 — 2021
2019 — 2021
2019 — 2021
2015 — 2021
2015 — 2021
2006 — 2021
2006 — 2021
The Corporation classifies interest on income tax-related balances as interest expense or interest income and classifies tax-related
The Corporation classifies interest on income tax-related balances as interest expense or interest income and classifies tax-related
penalties as operating expense.
penalties as operating expense.
For 2021 and 2019 the Corporation's net interest expense was $0 million on income tax reserves. For 2020, the Corporation's net
For 2021 and 2019 the Corporation's net interest expense was $0 million on income tax reserves. For 2020, the Corporation's net
interest expense was a credit of $6 million. The related interest payable balances were $61 million at both December 31, 2021 and
interest expense was a credit of $6 million. The related interest payable balances were $61 million at both December 31, 2021 and
2020.
2020.
109
109
SUPPLEMENTAL INFORMATION ON OIL AND GAS EXPLORATION AND PRODUCTION ACTIVITIES (unaudited)
The results of operations for producing activities shown below do not include earnings from other activities that ExxonMobil includes
in the Upstream function, such as oil and gas transportation operations, LNG liquefaction and transportation operations, coal and
power operations, technical service agreements, gains and losses from derivative activity, other nonoperating activities and
adjustments for noncontrolling interests. These excluded amounts for both consolidated and equity companies totaled $(1,380) million
in 2021, $274 million in 2020 and $3,502 million in 2019. Oil sands mining operations are included in the results of operations in
accordance with Securities and Exchange Commission and Financial Accounting Standards Board rules.
Results of Operations
Consolidated Subsidiaries
2021 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for consolidated
subsidiaries
Equity Companies
2021 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for equity companies
United
States
Canada/
Other
Americas
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
5,797
10,938
16,735
3,436
19
6,185
1,367
1,276
2,480
8,492
10,972
4,867
464
2,690
113
55
1,628
412
2,040
754
26
408
11
235
253
6,087
6,340
1,759
359
2,799
490
311
2,110
8,829
10,939
1,471
146
1,965
1,258
3,858
3,182
812
3,994
481
40
1,002
423
610
15,450
35,570
51,020
12,768
1,054
15,049
3,662
6,345
4,452
2,783
606
622
2,241
1,438
12,142
620
479
1,099
538
—
509
33
—
19
—
—
—
—
—
—
—
—
—
1,332
33
1,365
1,065
2
194
48
13
43
—
—
—
11
—
—
—
3
(14)
12,239
151
12,390
413
—
611
3,749
2,652
4,965
—
—
—
—
—
—
—
—
—
14,191
663
14,854
2,027
2
1,314
3,830
2,668
5,013
Total results of operations
4,471
2,783
649
608
7,206
1,438
17,155
110
Results of Operations
Consolidated Subsidiaries
2020 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for consolidated
subsidiaries
Equity Companies
2020 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for equity companies
United
States
Canada/
Other
Americas
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
2,933
4,943
7,876
3,877
51
27,489
615
(5,650)
1,034
3,938
4,972
3,928
573
5,118
106
(944)
536
362
898
786
33
828
32
(343)
262
4,603
4,865
1,911
371
2,788
390
(258)
1,632
5,584
7,216
1,471
112
2,171
692
2,130
1,983
509
2,492
483
145
733
152
241
8,380
19,939
28,319
12,456
1,285
39,127
1,987
(4,824)
(18,506)
(3,809)
(438)
(337)
640
738
(21,712)
410
308
718
500
—
605
34
—
(421)
—
—
—
—
—
—
—
—
—
513
12
525
674
2
224
22
(246)
(151)
—
—
—
6
—
—
—
(1)
(5)
6,289
60
6,349
421
—
543
2,274
1,126
1,985
—
—
—
—
—
—
—
—
—
7,212
380
7,592
1,601
2
1,372
2,330
879
1,408
Total results of operations
(18,927)
(3,809)
(589)
(342)
2,625
738
(20,304)
Consolidated Subsidiaries
2019 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for consolidated
subsidiaries
Equity Companies
2019 - Revenue
Sales to third parties
Transfers
Production costs excluding taxes
Exploration expenses
Depreciation and depletion
Taxes other than income
Related income tax
Results of producing activities for equity companies
5,070
6,544
11,614
4,697
120
5,916
998
(29)
1,452
5,979
7,431
4,366
498
1,975
122
(423)
2,141
1,345
3,486
1,196
118
601
113
(20)
802
7,892
8,694
2,387
234
3,019
682
1,188
2,393
8,706
11,099
1,597
119
2,264
1,182
4,238
3,132
628
3,760
637
180
703
250
599
14,990
31,094
46,084
14,880
1,269
14,478
3,347
5,553
(88)
893
1,478
1,184
1,699
1,391
6,557
664
530
1,194
543
1
431
33
—
186
—
—
—
—
—
—
—
—
—
1,248
6
1,254
570
4
231
75
180
194
—
—
—
6
—
—
—
(1)
(5)
10,536
464
11,000
555
—
528
3,634
2,275
4,008
—
—
—
—
—
—
—
—
—
12,448
1,000
13,448
1,674
5
1,190
3,742
2,454
4,383
Total results of operations
98
893
1,672
1,179
5,707
1,391
10,940
111
Oil and Gas Exploration and Production Costs
The amounts shown for net capitalized costs of consolidated subsidiaries are $12,005 million less at year-end 2021 and $13,206
million less at year-end 2020 than the amounts reported as investments in property, plant and equipment for the Upstream in Note 9.
This is due to the exclusion from capitalized costs of certain transportation and research assets and assets relating to LNG operations.
Assets related to oil sands and oil shale mining operations are included in the capitalized costs in accordance with Financial
Accounting Standards Board rules.
Capitalized Costs
Consolidated Subsidiaries
As of December 31, 2021
Property (acreage) costs – Proved
– Unproved
Total property costs
Producing assets
Incomplete construction
Total capitalized costs
Accumulated depreciation and depletion
Net capitalized costs for consolidated subsidiaries
Equity Companies
As of December 31, 2021
Property (acreage) costs – Proved
– Unproved
Total property costs
Producing assets
Incomplete construction
Total capitalized costs
Accumulated depreciation and depletion
Net capitalized costs for equity companies
Consolidated Subsidiaries
As of December 31, 2020
Property (acreage) costs – Proved
– Unproved
Total property costs
Producing assets
Incomplete construction
Total capitalized costs
Accumulated depreciation and depletion
Net capitalized costs for consolidated subsidiaries
Equity Companies
As of December 31, 2020
Property (acreage) costs – Proved
– Unproved
Total property costs
Producing assets
Incomplete construction
Total capitalized costs
Accumulated depreciation and depletion
Net capitalized costs for equity companies
United
States
Canada/
Other
Americas
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
1,422
119
1,541
56,168
1,428
59,137
49,312
9,825
309
3,111
3,420
—
809
4,229
—
4,229
1,332
213
1,545
55,556
1,975
59,076
46,567
12,509
286
3,134
3,420
—
721
4,141
—
4,141
2,994
5
2,999
44,228
2,888
50,115
26,519
23,596
—
—
—
8,676
11,716
20,392
6,590
13,802
2,979
181
3,160
43,394
3,050
49,604
24,701
24,903
—
—
—
8,547
10,527
19,074
5,911
13,163
730
2,675
3,405
14,944
2,044
20,393
9,225
11,168
27,353
30,213
57,566
283,063
18,421
359,050
214,104
144,946
—
—
—
—
—
—
—
—
411
3,115
3,526
21,109
12,651
37,286
16,056
21,230
771
2,642
3,413
15,348
1,972
20,733
8,628
12,105
25,343
33,680
59,023
291,786
18,582
369,391
215,125
154,266
—
—
—
—
—
—
—
—
388
3,138
3,526
21,454
11,420
36,400
15,227
21,173
18,353
21,146
39,499
101,211
4,125
144,835
86,830
58,005
3,844
6,231
10,075
52,092
7,047
69,214
28,428
40,786
98
4
102
6,946
103
7,151
4,304
2,847
—
—
—
—
—
—
—
—
18,059
23,255
41,314
104,650
5,549
151,513
89,401
62,112
2,151
7,352
9,503
52,552
4,590
66,645
26,635
40,010
98
4
102
6,975
138
7,215
3,854
3,361
—
—
—
—
—
—
—
—
10
37
47
14,420
889
15,356
13,790
1,566
4
—
4
5,487
23
5,514
5,162
352
51
37
88
20,286
1,446
21,820
19,193
2,627
4
—
4
5,932
34
5,970
5,462
508
112
Oil and Gas Exploration and Production Costs (continued)
The amounts reported as costs incurred include both capitalized costs and costs charged to expense during the year. Costs incurred
also include new asset retirement obligations established in the current year, as well as increases or decreases to the asset retirement
obligation resulting from changes in cost estimates or abandonment date. Total consolidated costs incurred in 2021 were
$9,877 million, down $1,377 million from 2020, due primarily to lower development costs, partially offset by higher acquisition costs
of unproved properties. In 2020, costs were $11,254 million, down $7,986 million from 2019, due primarily to lower development
costs including lower asset retirement obligation cost estimates mainly in Angola. Total equity company costs incurred in 2021 were
$1,451 million, down $561 million from 2020, due primarily to lower development costs.
Costs Incurred in Property Acquisitions,
Exploration and Development Activities
United
States
Canada/
Other
Americas
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
During 2021
Consolidated Subsidiaries
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for consolidated subsidiaries
Equity Companies
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for equity companies
During 2020
Consolidated Subsidiaries
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for consolidated subsidiaries
Equity Companies
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for equity companies
During 2019
Consolidated Subsidiaries
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for consolidated subsidiaries
Equity Companies
Property acquisition costs – Proved
– Unproved
Exploration costs
Development costs
Total costs incurred for equity companies
37
78
19
3,352
3,486
—
—
—
8
8
1
80
60
5,675
5,816
—
—
—
135
135
12
226
134
10,275
10,647
—
—
1
241
242
—
575
903
2,619
4,097
—
—
—
—
—
30
3
702
2,059
2,794
—
—
—
—
—
—
105
1,107
2,946
4,158
—
—
—
—
—
—
—
46
207
253
—
—
1
20
21
—
—
40
316
356
—
—
2
20
22
—
1
155
809
965
—
—
5
15
20
90
—
185
389
664
—
—
—
88
88
344
47
232
(239)
384
—
—
—
71
71
—
20
252
1,066
1,338
—
—
—
69
69
15
—
47
805
867
—
—
—
1,334
1,334
7
—
110
974
1,091
—
—
—
1,784
1,784
26
—
111
1,317
1,454
—
—
—
2,585
2,585
—
35
40
435
510
—
—
—
—
—
—
—
83
730
813
—
—
—
—
—
—
—
194
484
678
—
—
—
—
—
142
688
1,240
7,807
9,877
—
—
1
1,450
1,451
382
130
1,227
9,515
11,254
—
—
2
2,010
2,012
38
352
1,953
16,897
19,240
—
—
6
2,910
2,916
113
Oil and Gas Reserves
The following information describes changes during the years and balances of proved oil and gas reserves at year-end 2019, 2020 and
2021.
The definitions used are in accordance with the Securities and Exchange Commission’s Rule 4-10 (a) of Regulation S-X.
Proved oil and natural gas reserves are those quantities of oil and natural gas, which, by analysis of geoscience and engineering data,
can be estimated with reasonable certainty to be economically producible – from a given date forward, from known reservoirs, and
under existing economic conditions, operating methods and government regulations – prior to the time at which contracts providing
the right to operate expire, unless evidence indicates that renewal is reasonably certain. In some cases, substantial new investments in
additional wells and related facilities will be required to recover these proved reserves.
In accordance with the Securities and Exchange Commission’s (SEC) rules, the Corporation’s year-end reserves volumes as well as
the reserves change categories shown in the following tables are required to be calculated on the basis of average prices during the 12-
month period prior to the ending date of the period covered by the report, determined as an unweighted arithmetic average of the first-
day-of-the-month price for each month within such period. These reserves quantities are also used in calculating unit-of-production
depreciation rates and in calculating the standardized measure of discounted net cash flows.
Revisions can include upward or downward changes in previously estimated volumes of proved reserves for existing fields due to the
evaluation or re-evaluation of (1) already available geologic, reservoir or production data, (2) new geologic, reservoir or production
data or (3) changes in the average of first-of-month oil and natural gas prices and/or costs that are used in the estimation of reserves.
Revisions can also result from significant changes in either development strategy or production equipment/facility capacity.
Proved reserves include 100 percent of each majority-owned affiliate’s participation in proved reserves and ExxonMobil’s ownership
percentage of the proved reserves of equity companies, but exclude royalties and quantities due others. Natural gas reserves exclude
the gaseous equivalent of liquids expected to be removed from the natural gas on leases, at field facilities and at gas processing plants.
These liquids are included in net proved reserves of crude oil and natural gas liquids.
In the proved reserves tables, consolidated reserves and equity company reserves are reported separately. However, the Corporation
does not view equity company reserves any differently than those from consolidated companies.
Reserves reported under production sharing and other nonconcessionary agreements are based on the economic interest as defined by
the specific fiscal terms in the agreement. The production and reserves reported for these types of arrangements typically vary
inversely with oil and natural gas price changes. As oil and natural gas prices increase, the cash flow and value received by the
company increase; however, the production volumes and reserves required to achieve this value will typically be lower because of the
higher prices. When prices decrease, the opposite effect generally occurs. The percentage of total proved reserves (consolidated
subsidiaries plus equity companies) at year-end 2021 that were associated with production sharing contract arrangements was 12
percent on an oil-equivalent basis (natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels).
Net proved developed reserves are those volumes that are expected to be recovered through existing wells with existing equipment and
operating methods or in which the cost of the required equipment is relatively minor compared to the cost of a new well. Net proved
undeveloped reserves are those volumes that are expected to be recovered from new wells on undrilled acreage, or from existing wells
where a relatively major expenditure is required for recompletion.
Crude oil, natural gas liquids, and natural gas production quantities shown are the net volumes withdrawn from ExxonMobil’s oil and
natural gas reserves. The natural gas quantities differ from the quantities of natural gas delivered for sale by the producing function as
reported in the Upstream Operational Results due to volumes consumed or flared and inventory changes.
The changes between 2021 year-end proved reserves and 2020 year-end proved reserves reflect upward revisions of 2.4 billion barrels
of bitumen at Kearl and 0.5 billion barrels of bitumen at Cold Lake, primarily as a result of improved prices. In addition, extensions
and discoveries of approximately 1.3 billion oil-equivalent barrels (GOEB) occurred primarily in the United States (0.9 GOEB), Brazil
(0.2 GOEB) and Guyana (0.1 GOEB). Worldwide production in 2021 was 1.4 GOEB.
The downward revisions in 2020, primarily as a result of low prices during 2020, include 3.1 billion barrels of bitumen at Kearl,
0.6 billion barrels of bitumen at Cold Lake, and 0.5 GOEB in the United States. In addition, the Corporation’s near-term reduction in
capital expenditures resulted in a net reduction to estimates of proved reserves of approximately 1.5 GOEB, mainly related to
unconventional drilling in the United States.
114
Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves
Crude Oil
Natural
Gas
Liquids
United
States
Canada/
Other
Americas
Europe
Africa
Asia
Australia/
Oceania
Total Worldwide
(millions of barrels)
Bitumen
Canada/
Other
Americas
Synthetic
Oil
Canada/
Other
Americas
Total
Net proved developed and
undeveloped reserves of
consolidated subsidiaries
January 1, 2019
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2019
Attributable to noncontrolling interests
Proportional interest in proved
reserves of equity companies
January 1, 2019
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2019
Total liquids proved reserves at
December 31, 2019
3,204
(677)
—
20
(1)
710
(168)
3,088
604
(25)
166
20
—
—
—
—
(117) —
—
—
(30)
39
(132)
447
3,357
136
—
—
—
—
(158)
3,335
529
(66)
—
—
—
125
(31)
557
21
(612)
105 7,965
—
— —
20
—
(118)
—
835
—
(11)
(530)
94 7,560
1,404
(305)
—
12
(27)
263
(72)
4,185
(213)
—
—
—
—
(114)
1,275
3
3,858
894
254
15
—
—
—
1
(19)
251
—
—
—
—
—
—
—
—
15
—
—
—
—
—
6
—
—
—
—
—
(1) —
6
14
1,020
(38)
—
—
—
—
(85)
897
(23)
— 1,295
—
— —
— —
— —
1
—
(105)
—
— 1,168
342
3
—
—
—
—
(23)
322
—
—
—
—
—
—
—
—
466
14,020
(27) (1,157)
—
—
32
—
(145)
—
1,098
—
(24) (740)
13,108
415
126
—
—
—
—
—
—
—
—
1,637
(20)
—
—
—
1
(128)
1,490
3,339
557
53
453
4,232
94 8,728
1,597
3,858
415
14,598
Net proved developed and
undeveloped reserves of
consolidated subsidiaries
January 1, 2020
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
3,088
(1,139)
—
—
(1)
187
(176)
December 31, 2020
Attributable to noncontrolling interests
1,959
447
19
—
—
—
—
39
(9)
557
(14)
—
—
—
—
(2) —
—
1
(45)
497
7
(8)
22
(110)
356
3,335
(20)
—
—
—
—
(165)
3,150
94 7,560
(10) (1,173)
— —
— —
—
—
(10)
74 6,058
188
(514)
(3)
3,858
1,275
(209) (3,653)
—
—
(3)
65
(74)
1,054
1
—
—
—
1
(125)
81
25
13,108
415
(79) (5,114)
—
—
—
—
—
(6)
387
133
(25) (738)
7,637
444
135
Proportional interest in proved
reserves of equity companies
January 1, 2020
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2020
Total liquids proved reserves at
December 31, 2020
251
(102)
—
—
—
—
(18)
131
—
—
—
—
—
—
—
—
—
—
—
—
14
6
(4) —
—
—
—
—
(1) —
6
9
897
4
—
—
—
—
(76)
825
(102)
— 1,168
—
— —
— —
— —
— —
—
—
(95)
971
322
(22)
—
—
—
—
(23)
277
2,090
497
31
362
3,975
74 7,029
1,331
115
—
—
—
—
—
—
—
—
81
—
—
—
—
—
—
—
—
1,490
(124)
—
—
—
—
(118)
1,248
444
8,885
Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves (continued)
Crude Oil
Natural
Gas
Liquids
United
States
Canada/
Other
Americas
Europe
Africa
Asia
Australia/
Oceania
Total Worldwide
(millions of barrels)
Bitumen
Canada/
Other
Americas
Synthetic
Oil
Canada/
Other
Americas
Total
Net proved developed and
undeveloped reserves of
consolidated subsidiaries
January 1, 2021
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2021
Attributable to noncontrolling interests
Proportional interest in proved
reserves of equity companies
January 1, 2021
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2021
Total liquids proved reserves at
December 31, 2021
1,959
47
—
5
(27)
499
(176)
2,307
22
15
—
—
356
67
—
—
(28) —
—
—
3,150
36
—
—
—
—
(88) (149)
3,037
(6)
3
335
497
(2)
—
—
(8)
329
(47)
769
9
131
38
—
—
—
2
(16)
155
—
—
—
—
—
—
—
—
6
(1)
9
2
—
—
—
—
—
—
—
—
(1) —
5
10
825
(8)
—
—
—
—
(76)
741
74 6,058
173
10
— —
5
—
(63)
—
828
—
(10)
(476)
74 6,525
1,054
4
—
1
(20)
183
(86)
81
2,944
2
—
—
—
(133)
1,136
1
2,894
674
7,637
3,138
2
6
(83)
1,011
(718)
10,993
444
17
—
—
—
—
(23)
438
133
971
31
—
— —
— —
— —
2
—
(93)
—
911
—
277
15
—
—
—
—
(22)
270
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
—
1,248
46
—
—
—
2
(115)
1,181
2,462
769
13
340
3,778
74 7,436
1,406
2,894
438
12,174
116
Crude Oil, Natural Gas Liquids, Bitumen and Synthetic Oil Proved Reserves (continued)
Crude Oil and Natural Gas Liquids
United
States
Canada/
Other
Americas
Europe
Africa
Asia
Australia/
Oceania
Total
(millions of barrels)
Bitumen
Canada/
Other
Americas
Synthetic
Oil
Canada/
Other
Americas
Total
Proved developed reserves, as of
December 31, 2019
Consolidated subsidiaries
Equity companies
1,655
200
195
—
23
13
419
—
2,309
727
90
—
4,691
940
3,528
—
415
—
8,634
940
Proved undeveloped reserves, as of
December 31, 2019
Consolidated subsidiaries
Equity companies
Total liquids proved reserves at
December 31, 2019
2,474
60
4,389
381
—
576
29
1
66
Proved developed reserves, as of
December 31, 2020
68
6
1,157
483
35
—
4,144
550
330
—
—
—
4,474
550
493
4,676
125
10,325
3,858
415
14,598
Consolidated subsidiaries
Equity companies
1,473
111
293
—
13
8
345
—
2,299
646
67
—
4,490
765
Proved undeveloped reserves, as of
December 31, 2020
Consolidated subsidiaries
Equity companies
Total liquids proved reserves at
December 31, 2020
1,342
24
2,950
209
—
502
16
1
38
42
6
975
452
38
—
2,622
483
393
4,372
105
8,360
76
—
5
—
81
311
—
4,877
765
133
—
2,760
483
444
8,885
Proved developed reserves, as of
December 31, 2021
Consolidated subsidiaries
Equity companies
1,663
133
268
—
3
10
330
—
2,154
474
63
—
4,481
617
2,635
—
326
—
7,442
617
Proved undeveloped reserves, as of
December 31, 2021
Consolidated subsidiaries
Equity companies
Total liquids proved reserves at
December 31, 2021
1,621
28
508
—
—
—
31
5
988
531
32
—
3,180
564
259
—
112
—
3,551
564
3,445
776
13
366
4,147
95
8,842
(1)
2,894
438
12,174
(1) See previous pages for natural gas liquids proved reserves attributable to consolidated subsidiaries and equity companies. For additional
information on natural gas liquids proved reserves see Item 2. Properties in ExxonMobil’s 2021 Form 10-K.
117
Natural Gas and Oil-Equivalent Proved Reserves
Natural Gas
Net proved developed and undeveloped
reserves of consolidated subsidiaries
January 1, 2019
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2019
Attributable to noncontrolling interests
Proportional interest in proved reserves
of equity companies
January 1, 2019
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2019
Total proved reserves at December 31, 2019
Net proved developed and undeveloped
reserves of consolidated subsidiaries
January 1, 2020
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2020
Attributable to noncontrolling interests
Proportional interest in proved reserves
of equity companies
January 1, 2020
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2020
Total proved reserves at December 31, 2020
United
States
Canada/
Other
Americas
Europe
Africa
(billions of cubic feet)
Asia
Australia/
Oceania
Total
Oil-Equivalent
Total
All Products (1)
(millions of oil-
equivalent
barrels)
21,403
(3,213)
—
85
(297)
2,151
(1,103)
19,026
225
(1)
—
—
—
1
(12)
213
19,239
19,026
(4,904)
—
—
(35)
433
(1,081)
13,439
213
(99)
—
—
—
—
(12)
102
13,541
1,312
41
—
—
(416)
—
(316)
621
1,744
(301)
—
—
(29)
166
(114)
1,466
256
588
(171)
—
—
—
—
(40)
377
3,841
953
—
—
—
—
(361)
4,433
7,462
39
—
—
—
—
(500)
7,001
36,350
(2,652)
—
85
(742)
2,317
(2,434)
32,924
—
—
—
—
—
—
—
—
1,466
1,057
(238)
—
—
—
—
(238)
581
1,202
863
45
—
—
—
—
—
908
1,285
13,321
142
—
—
—
—
(1,009)
12,454
16,887
—
—
—
—
—
—
—
—
7,001
15,466
(52)
—
—
—
1
(1,259)
14,156
47,080
1,466
(753)
—
—
(30)
1
(123)
561
84
—
—
—
—
—
—
—
—
561
621
(4)
—
—
—
1
(177)
441
377
(23)
—
—
—
—
(34)
320
4,433
245
—
—
—
—
(369)
4,309
7,001
(405)
—
—
—
—
(462)
6,134
32,924
(5,844)
—
—
(65)
435
(2,246)
25,204
581
(95)
—
—
—
—
(126)
360
801
908
9
—
—
—
—
—
917
1,237
12,454
(106)
—
—
—
—
(971)
11,377
15,686
—
—
—
—
—
—
—
—
6,134
14,156
(291)
—
—
—
—
(1,109)
12,756
37,960
20,078
(1,599)
—
47
(269)
1,484
(1,145)
18,596
4,215
(29)
—
—
—
1
(338)
3,849
22,445
18,596
(6,088)
—
—
(17)
459
(1,113)
11,837
3,849
(172)
—
—
—
—
(303)
3,374
15,211
(1) Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels.
118
Natural Gas and Oil-Equivalent Proved Reserves (continued)
Natural Gas
United
States
Canada/
Other
Americas
Europe
Africa
(billions of cubic feet)
Asia
Australia/
Oceania
Total
Oil-Equivalent
Total
All Products (1)
(millions of oil-
equivalent
barrels)
Net proved developed and undeveloped
reserves of consolidated subsidiaries
January 1, 2021
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2021
Attributable to noncontrolling interests
Proportional interest in proved reserves
of equity companies
January 1, 2021
Revisions
Improved recovery
Purchases
Sales
Extensions/discoveries
Production
December 31, 2021
Total proved reserves at December 31, 2021
13,439
1,432
—
3
(164)
1,381
(1,103)
14,988
102
44
—
—
—
5
(11)
140
15,128
441
210
—
—
(120)
—
(148)
383
320
39
—
—
—
—
(42)
317
4,309
(276)
—
—
—
—
(340)
3,693
6,134
712
—
—
—
—
(483)
6,363
25,204
2,422
—
3
(302)
1,544
(2,208)
26,663
561
305
—
—
(18)
163
(92)
919
124
—
—
—
—
—
—
—
—
919
360
206
—
—
—
—
(158)
408
791
917
(111)
—
—
—
—
—
806
1,123
11,377
(236)
—
—
—
—
(983)
10,158
13,851
—
—
—
—
—
—
—
—
6,363
12,756
(97)
—
—
—
5
(1,152)
11,512
38,175
11,837
3,542
2
6
(134)
1,269
(1,086)
15,436
3,374
30
—
—
—
3
(307)
3,100
18,536
(1) Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels.
119
Natural Gas and Oil-Equivalent Proved Reserves (continued)
Natural Gas
Proved developed reserves, as of
December 31, 2019
Consolidated subsidiaries
Equity companies
Proved undeveloped reserves, as of
December 31, 2019
Consolidated subsidiaries
Equity companies
United
States
Canada/
Other
Americas
11,882
143
7,144
70
613
—
853
—
Europe
Africa
(billions of cubic feet)
Asia
Australia/
Oceania
Total
Oil-Equivalent
Total
All Products (1)
(millions of oil-
equivalent
barrels)
502
377
3,508
3,765
20,647
505
—
9,859
—
10,507
12,075
2,691
Total proved reserves at December 31, 2019
19,239
1,466
1,202
1,285
16,887
7,001
47,080
119
—
925
3,236
12,277
76
908
2,595
—
3,649
6,521
1,158
22,445
Proved developed reserves, as of
December 31, 2020
Consolidated subsidiaries
Equity companies
Proved undeveloped reserves, as of
December 31, 2020
Consolidated subsidiaries
Equity companies
10,375
83
3,064
19
Total proved reserves at December 31, 2020
13,541
Proved developed reserves, as of
December 31, 2021
Consolidated subsidiaries
Equity companies
Proved undeveloped reserves, as of
December 31, 2021
Consolidated subsidiaries
Equity companies
11,287
117
3,701
23
Total proved reserves at December 31, 2021
15,128
472
—
89
—
561
574
—
345
—
919
399
318
3,323
3,344
18,231
293
—
8,992
—
9,368
7,915
2,326
42
67
2
986
2,790
6,973
917
2,385
—
3,388
801
1,237
15,686
6,134
37,960
3,922
1,048
15,211
377
315
2,527
3,513
18,593
339
—
6,017
—
6,473
10,540
1,696
6
69
2
1,166
2,850
8,070
806
4,141
—
5,039
791
1,123
13,851
6,363
38,175
4,896
1,404
18,536
(1) Natural gas is converted to an oil-equivalent basis at six billion cubic feet per one million barrels.
120
Standardized Measure of Discounted Future Cash Flows
As required by the Financial Accounting Standards Board, the standardized measure of discounted future net cash flows is computed
by applying first-day-of-the-month average prices, year-end costs and legislated tax rates and a discount factor of 10 percent to net
proved reserves. The standardized measure includes costs for future dismantlement, abandonment and rehabilitation obligations. The
Corporation believes the standardized measure does not provide a reliable estimate of the Corporation’s expected future cash flows to
be obtained from the development and production of its oil and gas properties or of the value of its proved oil and gas reserves. The
standardized measure is prepared on the basis of certain prescribed assumptions including first-day-of-the-month average prices,
which represent discrete points in time and therefore may cause significant variability in cash flows from year to year as prices change.
Standardized Measure of Discounted
Future Cash Flows
United
States
Canada/
Other
Americas (1)
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
Consolidated Subsidiaries
As of December 31, 2019
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
208,981
90,448
53,641
12,530
52,362
30,499
21,863
190,604
133,606
31,158
5,888
19,952
7,728
12,224
5,789
3,209
4,397
(594)
(1,223)
(1,265)
42
30,194
10,177
6,756
5,374
7,887
872
7,015
215,837
58,255
14,113
108,316
35,153
18,658
16,495
43,599
12,980
8,109
5,158
17,352
7,491
9,861
695,004
308,675
118,174
136,672
131,483
63,983
67,500
Equity Companies
As of December 31, 2019
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
15,729
6,848
3,681
—
5,200
2,721
2,479
—
—
—
—
—
—
—
3,194
1,302
1,182
346
364
41
323
2,509
246
247
555
1,461
1,112
349
115,451
48,259
11,463
17,891
37,838
18,573
19,265
—
—
—
—
—
—
—
136,883
56,655
16,573
18,792
44,863
22,447
22,416
Total consolidated and equity interests in
standardized measure of discounted
future net cash flows
24,342
12,224
365
7,364
35,760
9,861
89,916
(1) Includes discounted future net cash flows attributable to noncontrolling interests in ExxonMobil consolidated subsidiaries of
$1,064 million in 2019.
121
Standardized Measure of Discounted
Future Cash Flows (continued)
United
States
Canada/
Other
Americas (1)
Europe
Africa
Asia
(millions of dollars)
Australia/
Oceania
Total
Consolidated Subsidiaries
As of December 31, 2020
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
Equity Companies
As of December 31, 2020
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
Total consolidated and equity interests in
standardized measure of discounted
future net cash flows
Consolidated Subsidiaries
As of December 31, 2021
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
93,520
53,635
27,668
(2,509)
14,726
8,564
6,162
38,193
19,971
10,991
851
6,380
1,116
5,264
2,734
1,815
4,244
(1,121)
(2,204)
(1,565)
(639)
15,411
138,080
6,527
42,378
6,223
13,432
916
62,223
20,047
1,745
(511) 10,557
9,490
2,256
19,794
3,188
7,580
1,381
7,645
3,624
4,021
307,732
127,514
70,138
61,741
48,339
21,785
26,554
5,304
3,467
2,243
—
(406)
(378)
(28)
—
—
—
—
—
—
—
1,511
694
1,054
(115)
(122)
(86)
(36)
740
247
163
42
288
258
30
63,105
29,170
9,929
8,088
15,918
7,443
8,475
—
—
—
—
—
—
—
70,660
33,578
13,389
8,015
15,678
7,237
8,441
6,134
5,264
(675)
2,286
17,965
4,021
34,995
217,023
63,464
29,941
24,770
98,848
50,524
48,324
209,711
111,468
31,736
12,004
54,503
25,793
28,710
4,322
1,142
2,113
451
616
(502)
1,118
24,812
7,700
5,921
4,319
6,872
739
6,133
211,255
55,241
14,519
107,577
33,918
17,383
16,535
69,015
14,880
7,286
13,038
33,811
18,751
15,060
736,138
253,895
91,516
162,159
228,568
112,688
115,880
Equity Companies
As of December 31, 2021
Future cash inflows from sales of oil and gas
Future production costs
Future development costs
Future income tax expenses
Future net cash flows
Effect of discounting net cash flows at 10%
Discounted future net cash flows
10,607
5,005
2,340
—
3,262
1,553
1,709
—
—
—
—
—
—
—
5,889
785
1,137
1,793
2,174
683
1,491
4,553
261
62
1,168
3,062
1,868
1,194
146,845
49,810
8,317
29,463
59,255
25,710
33,545
—
—
—
—
—
—
—
167,894
55,861
11,856
32,424
67,753
29,814
37,939
Total consolidated and equity interests in
standardized measure of discounted
future net cash flows
50,033
28,710
2,609
7,327
50,080
15,060
153,819
(1) Includes discounted future net cash flows attributable to noncontrolling interests in ExxonMobil consolidated subsidiaries of
$(150) million in 2020 and $3,666 million in 2021.
122
Change in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
Consolidated and Equity Interests
2019
Consolidated
Subsidiaries
Share of Equity
Method Investees
Total Consolidated
and Equity Interests
(millions of dollars)
Discounted future net cash flows as of December 31, 2018
106,104
37,572
143,676
Value of reserves added during the year due to extensions, discoveries,
improved recovery and net purchases/sales less related costs
Changes in value of previous-year reserves due to:
Sales and transfers of oil and gas produced during the year, net of
production (lifting) costs
Development costs incurred during the year
Net change in prices, lifting and development costs
Revisions of previous reserves estimates
Accretion of discount
Net change in income taxes
Total change in the standardized measure during the year
(1,252)
4
(1,248)
(29,159)
16,544
(66,455)
4,906
11,433
25,379
(38,604)
(8,202)
2,927
(21,046)
657
3,956
6,548
(15,156)
(37,361)
19,471
(87,501)
5,563
15,389
31,927
(53,760)
Discounted future net cash flows as of December 31, 2019
67,500
22,416
89,916
Consolidated and Equity Interests
2020
Consolidated
Subsidiaries
Share of Equity
Method Investees
Total Consolidated
and Equity Interests
(millions of dollars)
Discounted future net cash flows as of December 31, 2019
67,500
22,416
89,916
Value of reserves added during the year due to extensions, discoveries,
improved recovery and net purchases/sales less related costs
Changes in value of previous-year reserves due to:
Sales and transfers of oil and gas produced during the year, net of
production (lifting) costs
Development costs incurred during the year
Net change in prices, lifting and development costs
Revisions of previous reserves estimates
Accretion of discount
Net change in income taxes
Total change in the standardized measure during the year
169
—
169
(15,048)
9,969
(80,444)
2,614
10,786
31,008
(40,946)
(3,818)
1,760
(21,739)
680
3,011
6,131
(13,975)
(18,866)
11,729
(102,183)
3,294
13,797
37,139
(54,921)
Discounted future net cash flows as of December 31, 2020
26,554
8,441
34,995
123
Change in Standardized Measure of Discounted Future Net Cash Flows Relating to Proved Oil and Gas Reserves
Consolidated and Equity Interests (continued)
2021
Consolidated
Subsidiaries
Share of Equity
Method Investees
Total Consolidated
and Equity Interests
(millions of dollars)
Discounted future net cash flows as of December 31, 2020
26,554
8,441
34,995
Value of reserves added during the year due to extensions, discoveries,
improved recovery and net purchases/sales less related costs
Changes in value of previous-year reserves due to:
Sales and transfers of oil and gas produced during the year, net of
production (lifting) costs
Development costs incurred during the year
Net change in prices, lifting and development costs
Revisions of previous reserves estimates
Accretion of discount
Net change in income taxes
Total change in the standardized measure during the year
11,922
22
11,944
(35,813)
7,033
118,946
27,126
3,762
(43,650)
89,326
(9,948)
1,563
47,434
2,507
1,201
(13,281)
29,498
(45,761)
8,596
166,380
29,633
4,963
(56,931)
118,824
Discounted future net cash flows as of December 31, 2021
115,880
37,939
153,819
124
ADDITIONAL INFORMATION
Stock Performance Graphs
Frequently Used Terms
Footnotes
Board of Directors
126
127
129
130
125
STOCK PERFORMANCE GRAPHS (unaudited)
Annual total return to ExxonMobil shareholders was 57.3 percent in 2021; the 5-year return through 2021 was -2.5 percent
and the 10-year return was 0.9 percent. Total returns mean share price increase plus dividends paid, with dividends
reinvested. The graphs below show the relative investment performance of ExxonMobil common stock, the S&P 500,
and an industry competitor group over the last five and ten years. The industry competitor group consists of four other
international integrated oil companies: BP, Chevron, Shell, and TotalEnergies.
FIVE-YEAR CUMULATIVE TOTAL RETURNS
(value of $100 invested at year-end 2016)
$250
200
150
100
50
0
S&P 500
Industry Group
ExxonMobil
ExxonMobil
S&P 500
Industry Group
2016
100
100
100
2017
96
122
119
2018
82
116
111
2019
88
153
122
2020
56
181
2021
88
233
85
115
Fiscal years ended December 31
TEN-YEAR CUMULATIVE TOTAL RETURNS
(value of $100 invested at year-end 2011)
$500
TEMPLATE CHART BASED ON DATA ABOVE
250
200
150
100
400
300
200
100
0
50
ExxonMobil
S&P 500
2011
2016
100
100
Industry Group
100
2012
105
116
103
2013
2017
126
154
121
2014
118
175
111
2015
2018
103
177
92
2016
124
198
119
2017
2019
119
241
141
2018
101
231
132
S&P 500
Industry Group
ExxonMobil
2019
2020
108
304
2020
69
359
2021
2021
109
463
145
101
137
Ind Group
Fiscal years ended December 31
SP 500
XOM
TEMPLATE CHART BASED ON DATA ABOVE
126
500
400
300
200
100
0
N
O
I
S
R
E
V
FEB 15, 2022 8am
202 1 XOM10K-
5yearCumRet s.ai
Ind Group
SP 500
XOM
N
O
I
S
R
E
V
FEB 15, 2022 8am
202 1 XOM10K-
10year Returns.ai
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
FREQUENTLY USED TERMS
Listed below are definitions of several of ExxonMobil’s key business and financial performance measures and other
terms. These definitions are provided to facilitate understanding of the terms and their calculation. In the case of
financial measures that we believe constitute “non-GAAP financial measures” under Securities and Exchange
Commission Regulation G, we provide a reconciliation to the most comparable Generally Accepted Accounting
Principles (GAAP) measure and other information required by that rule.
Capital and exploration expenditures (Capex) • Represents the combined total of additions at cost to property, plant and
equipment, and exploration expenses on a before-tax basis from the Consolidated Statement of Income. ExxonMobil’s Capex
includes its share of similar costs for equity companies. Capex excludes assets acquired in nonmonetary exchanges, the value
of ExxonMobil shares used to acquire assets, and depreciation on the cost of exploration support equipment and facilities
recorded to property, plant and equipment when acquired. While ExxonMobil’s management is responsible for all investments
and elements of net income, particular focus is placed on managing the controllable aspects of this group of expenditures.
Structural cost savings (also structural cost reductions, structural cost efficiencies) • Structural cost savings describe
decreases in the below expenses as a result of operational efficiencies, workforce reductions and other cost saving measures
that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative annual structural cost
savings totaled $4.9 billion, of which $1.9 billion was achieved in 2021. The total change between periods in expenses below
will reflect both structural cost savings and other changes in spend, including market factors, such as energy costs, inflation,
and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations. Structural
cost savings are stewarded internally to support management’s oversight of spending over time. This measure is useful for
investors to understand the Corporation’s efforts to optimize spending through disciplined expense management.
Consolidated Statement of Income Line Items Targeted for Structural Cost Savings
2021
2020
2019
Production and manufacturing expenses
Selling, general and administrative expenses
Exploration expenses, including dry holes
Total
(millions of dollars)
36,035
9,574
1,054
46,663
30,431
10,168
1,285
41,884
36,826
11,398
1,269
49,493
Returns, investment returns, project returns • Unless referring specifically to ROCE, references to returns, investment
returns, project returns, and similar terms mean future discounted cash flow returns on future capital investments based on
current company estimates. Investment returns exclude prior exploration and acquisition costs.
Heavy oil and oil sands • Heavy oil, for the purpose of this report, includes heavy oil, extra heavy oil, and bitumen, as defined
by the World Petroleum Congress in 1987 based on American Petroleum Institute (API) gravity and viscosity at reservoir
conditions. Heavy oil has an API gravity between 10 and 22.3 degrees. The API gravity of extra heavy oil and bitumen is
less than 10 degrees. Extra heavy oil has a viscosity less than 10,000 centipoise, whereas the viscosity of bitumen is greater
than 10,000 centipoise. The term “oil sands” is used to indicate heavy oil (generally bitumen) that is recovered in a mining
operation.
Performance product • Refers to Chemical products that provide differentiated performance for multiple applications
through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users.
Project • The term “project” can refer to a variety of different activities and does not necessarily have the same meaning as
in any government payment transparency reports.
127
Resources, resource base, and recoverable resources • Along with similar terms used in this report, these refer to the
total remaining estimated quantities of oil and natural gas that are expected to be ultimately recoverable. The resource base
includes quantities of oil and natural gas classified as proved reserves, as well as quantities that are not yet classified as proved
reserves, but that are expected to be ultimately recoverable. The term “resource base” or similar terms are not intended to
correspond to SEC definitions such as “probable” or “possible” reserves. The term “in-place” refers to those quantities of
oil and natural gas estimated to be contained in known accumulations and includes recoverable and unrecoverable amounts.
Roadmap (emission reductions) • The Company’s roadmap approach identifies greenhouse gas emission reduction
opportunities and the investment and policy needs required to get to net zero. The roadmaps are tailored to account for
facility configuration and maintenance schedules, and they will be updated as technologies and policies evolve. Separately,
the reference case for planning beyond 2030 (including impairment assessments and future planned development activities) is
based on the Energy Outlook, which contains the Company’s demand and supply projection based on its assessment of current
trends in technology, government policies, consumer preferences, geopolitics, and economic development. As the roadmaps
evolve, they continue to inform the Company’s planning process.
128
FOOTNOTES (pages I through XVI)
1. See the Frequently Used Terms.
2. Estimated Brent price to cover Capex, dividends to ExxonMobil shareholders, and other financing items. Further
information is available in the 4Q 2021 Results Presentation available on the Investors section of our website at
www.exxonmobil.com.
3. Net cash provided by operating activities, as reported in the Consolidated Statement of Cash Flows in ExxonMobil’s
2021 Form 10-K.
4. Total debt, as reported in the Financial Information section of ExxonMobil’s 2021 Form 10-K.
5. See ExxonMobil Advancing Climate Solutions – 2022 Progress Report on our website at www.exxonmobil.com,
including the Cautionary Statement and Supplemental Information.
6. Billion oil-equivalent barrels of gross recoverable resource; see Frequently Used Terms on page 127 and the Cautionary
Statement on page 131 of this Report.
7. Thousand oil-equivalent barrels per day of net production.
8. Proceeds from asset sales and returns of investments, as reported in the Consolidated Statement of Cash Flows.
9. ExxonMobil 2021 Investor Day Presentation, slide 12, available on the Investors section of our website
at www.exxonmobil.com.
10. Cash dividends to ExxonMobil shareholders, as reported in the Consolidated Statement of Cash Flows in
ExxonMobil’s 2021 Form 10-K.
11. Per U.S. EPA GHG calculator, based on 2021 data for gasoline-powered passenger vehicles.
12. Solomon Associates 2020 survey.
13. ExxonMobil analysis using Argonne National Labs’ GREET tools and published fuel carbon intensity from California
LCFS regulations.
14. GDP: ExxonMobil’s 2021 Outlook for Energy. Commodity chemicals demand: IHS Markit World Analysis for
polyethylene, polypropylene, and paraxylene.
Exxon Mobil Corporation has numerous affiliates, many with names that include ExxonMobil, Exxon, Mobil, Esso, and
XTO. For convenience and simplicity, those terms and terms such as Corporation, company, our, we, and its are sometimes
used as abbreviated references to specific affiliates or affiliate groups. Abbreviated references describing global or regional
operational organizations, and global or regional business lines are also sometimes used for convenience and simplicity.
Similarly, ExxonMobil has business relationships with thousands of customers, suppliers, governments, and others. For
convenience and simplicity, words such as venture, joint venture, partnership, co-venturer, and partner are used to indicate
business and other relationships involving common activities and interests, and those words may not indicate precise legal
relationships.
The following are trademarks, service marks, or proprietary process names of Exxon Mobil Corporation or one of its
affiliates: Exxon, ExxonMobil, ExxonMobil Low Carbon Solutions, Mobil, Mobil 1, and Mobil EV.
129
BOARD OF DIRECTORS
As of January 1, 2022
Kenneth C. Frazier
(Lead Director)
Executive Chairman of the Board,
Merck & Co., Inc.
(pharmaceuticals)
Director since 2009
Susan K. Avery
President Emerita, Woods Hole
Oceanographic Institution
(nonprofit ocean research,
exploration, and education)
Director since 2017
Ursula M. Burns
Former Chairman of the Board
and Chief Executive Officer,
VEON Ltd.
(telecommunication services)
Director since 2012
Kaisa H. Hietala
Former Executive Vice President
of Renewable Products at
Neste Corporation
(renewable energy)
Director since 2021
Steven A. Kandarian
Former Chairman of the Board,
President, and Chief Executive Officer,
MetLife
(insurance)
Director since 2018
Jeffrey W. Ubben
Founder, Portfolio Manager,
and Managing Partner,
Inclusive Capital Partners, L.P.
(financial services)
Director since 2021
Michael J. Angelakis
Chairman of the Board and
Chief Executive Officer,
Atairos Group Inc.
(financial services)
Director since 2021
Angela F. Braly
Former Chairman of the Board,
President, and Chief Executive Officer,
WellPoint, Inc. (now Anthem)
(health insurance)
Director since 2016
Gregory J. Goff
Former Executive Vice Chairman
of the Board,
Marathon Petroleum Corporation
(refining and marketing)
Director since 2021
Joseph L. Hooley
Former Chairman of the Board,
President, and Chief Executive Officer,
State Street Corporation
(financial services)
Director since 2020
Alexander A. Karsner
Senior Strategist at X
(formerly Google X)
(technology)
Director since 2021
Darren W. Woods
Chairman of the Board and
Chief Executive Officer
Director since 2016
STANDING COMMITTEES OF THE BOARD
Audit Committee
U.M. Burns (Chair), M.J. Angelakis, K.H. Hietala, J.L. Hooley
Board Affairs Committee
K.C. Frazier (Chair), S.K. Avery, G.J. Goff, A.A. Karsner
Compensation Committee
A.F. Braly (Chair), K.C. Frazier, G.J. Goff, S.A. Kandarian
Finance Committee
J.L. Hooley (Chair), M.J. Angelakis, U.M. Burns, K.H. Hietala,
J.W. Ubben, D.W. Woods
Public Issues and Contributions Committee
S.K. Avery (Chair), A.F. Braly, S.A. Kandarian, A.A. Karsner, J.W. Ubben
Executive Committee
D.W. Woods (Chair), M.J. Angelakis, U.M. Burns, K.C. Frazier, G.J. Goff
130
I N V E S T O R I N F O R M A T I O N
S H A R E H O L D E R S E R V I C E S
M A R K E T I N F O R M A T I O N
Shareholder inquiries should be addressed to
ExxonMobil Shareholder Services at Computershare
Trust Company, N.A., ExxonMobil’s transfer agent:
The New York Stock Exchange is the principal exchange on
which Exxon Mobil Corporation common stock is traded.
S T O C K S Y M B O L : X O M
ExxonMobil Shareholder Services
c/o Computershare
P.O. Box 43006
Providence, RI 02940-3006
1-800-252-1800
(Within the United
States and Canada)
1-781-575-2058
(Outside the United
States and Canada)
An automated voice-response system is available
24 hours a day, 7 days a week.
Service representatives are available Monday through Friday
8 a.m. to 8 p.m. Eastern Time.
Registered shareholders can access information about
their ExxonMobil stock accounts via the Internet at
computershare.com/exxonmobil.
S H A R E H O L D E R R E L A T I O N S A D D R E S S
Exxon Mobil Corporation
Attn: Shareholder Relations
5959 Las Colinas Boulevard
Irving, TX 75039-2298
Additional copies may be obtained by writing or calling:
Phone: 972-940-6000
Fax: 972-940-6748
Email: shareholderrelations@exxonmobil.com
S T O C K P U R C H A S E A N D
D I V I D E N D R E I N V E S T M E N T P L A N
Computershare Trust Company, N.A., sponsors a
stock purchase and dividend reinvestment plan, the
Computershare Investment Plan for Exxon Mobil
Corporation Common Stock. For more information and
plan materials, go to computershare.com/exxonmobil
or call or write ExxonMobil Shareholder Services.
A N N U A L S H A R E H O L D E R M E E T I N G
The 2022 Annual Meeting of Shareholders will be held
virtually at 9:30 a.m. Central Time on Wednesday,
May 25, 2022.
Important shareholder information is available at
exxonmobil.com:
• Publications
• Dividend Information
• Earnings and Financials
• Investor Presentations
• Stock Quote
• Contact Information
• News Releases
• Corporate Governance
Cautionary Statement • Statements of plans, outlooks, targets, ambitions, and other future events or conditions in this report are forward-looking statements. Actual future results,
including financial and operating performance; demand growth and mix, including the timing and nature of future markets for low emission energy products and technologies, and our
related product sales levels and mix; capital expenditures; cost reductions; debt levels and allocation of capital; earnings and cash flow growth and shareholder returns; the ability to
meet or exceed announced emission reduction plans and ambitions; resource recoveries; production rates; and project plans, timing, costs, and capacities could differ materially due to
a number of factors including global or regional changes in supply or demand for oil, gas, or petrochemicals and other conditions affecting oil, gas, and petrochemical prices; the pace of
recovery from, and the occurrence and severity of future outbreaks, of COVID-19 and the nature of responsive actions; the ability to realize efficiencies within and across our business
lines and to maintain cost reductions while protecting our competitive positioning; our ability to recognize and adapt to changes in the global energy system, including the transition
to lower emission technologies, and to invest on a timely basis in successful future businesses; the outcome and timing of exploration and development projects; timely completion
of construction projects; war and other security disturbances; political factors including changes in local, national, or international policies affecting our business and development of
appropriate policies to support the energy transition; changes in law or government regulations, including trade sanctions, taxes, and environmental regulations relating to the risks
of climate change; the granting of necessary licenses and permits; the outcome of commercial negotiations; actions of competitors and commercial counterparties; actions of
consumers including changes in demand preferences; the outcome of research efforts, including the success of collaborative efforts to develop new energy technologies, and the
ability to bring new technologies to commercial scale on a cost-competitive basis; the development and competitiveness of alternative energy and emission reduction technologies;
unforeseen technical or operating difficulties; and other factors discussed here and in Item 1A. Risk Factors, and under Forward Looking Statements on page 42, of our 2021 Form 10-K
which forms part of this report. All forward-looking statements are based on management’s knowledge and reasonable expectations at the time of this report and we assume no duty
to update these statements as of any future date.
As used in this publication, references to “recoverable resource” and similar terms include quantities of oil and gas classified as proved reserves, as well as quantities that are not yet classified
as proved reserves, but that are expected to be ultimately recoverable. “Industry” refers to publicly traded international energy companies. The term “project” can refer to a variety of different
activities and does not necessarily have the same meaning as in any government payment transparency reports. Unless otherwise specified, data shown is for 2021. Prior years’ data have been
reclassified in certain cases to conform to the 2021 presentation basis. Unless otherwise stated, resources, production rates, and project capacities are gross. References to “emissions” refer
to energy-related emissions.
© 2 0 2 2 E X X O N M O B I L C O R P O R A T I O N
Exxon Mobil Corporation
Corporate Headquarters
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For more information,
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