Exxon Mobil Corporation Q4 FY2025 earnings call

• Since 2018, Exxon has been transforming to leverage competitive advantages, achieving 2030 emission reduction plans ahead of time, with corporate GHG intensity reduced by over 20%, upstream GHG intensity by over 40%, and corporate flaring intensity by over 60%. - Upstream production details: Guyana's Yellowtail came online ahead of schedule, raising gross production in Q4 to ~875,000 bpd; Permian delivered a new production record in Q4 at 1.8 million oil equivalent bpd. - Technology deployment: Lightweight proppant used in ~25% of wells in 2025, expected to reach 50% by end of 2026; Proxima Systems scaled, with advanced battery anode graphite program showing 30% faster charging, etc. - Completed 10 key 2025 projects, with strong project execution at lower cost and faster delivery than industry average. - Enterprise-wide data platform transformation to improve operations and decision-making.

Upstream: Production averaged 4.7 million oil equivalent barrels per day, with unit earnings more than double those in 2019 on a constant price basis. Advantaged assets like the Permian, Guyana, and LNG continue to grow, expected to make up roughly 65% of total production by 2030. Product Solutions: Strengthening the portfolio with advantaged project startups and high-value product growth, with 60% of earnings coming from assets already online.

• Expect to reach 2030 methane intensity reductions by end of 2025. - Upstream production expected to exceed 2.5 million oil equivalent barrels per day beyond 2030. - Maintaining measured share repurchases subject to reasonable market conditions. - Potential upside in certain regions through improved contractual arrangements in markets like Libya and others where Exxon can bring unique capabilities.

• Uncertainties in Guyana due to border disputes affecting exploration and production in force majeure areas. - Challenges in entering markets like Venezuela due to current fiscal and legal structures. - Volatility in commodity prices impacting earnings and financial performance.

Q: Devin McDermott asks about Guyana's exploration strategy leading up to the 2027 Stabroek Block expiration and the force majeure area.

A: Darren Woods responds that Exxon is continuing development in accessible areas, waiting for the ICJ ruling on the border dispute with Venezuela as a key milestone, and sees potential in the force majeure area once accessible.

Q: Neil Mehta inquires about Permian volume cadence and lightweight proppant deployment.

A: Darren Woods notes annual production improvement in Permian, with lightweight proppant usage at 25% in 2025 and expected to reach 50% by end of 2026, expecting technology to drive future growth.

Q: Doug Leggate asks about potential upside in the portfolio not in the plan through 2030.

A: Darren Woods mentions opportunities in markets like Libya and Venezuela, where improved contractual arrangements are possible as Exxon's capabilities are recognized.

Q: Bob Brackett asks about scaling Permian technology toolkit.

A: Darren Woods states the technology is scalable across upstream operations, with a centralized technology organization enabling innovation to flow across the portfolio.

Q: Arun Jayaram asks about LNG plans for Papua New Guinea and Mozambique.

A: Darren Woods says those projects are cost competitive, with Mozambique expected to see an FID later in 2026, and Golden Pass LNG on track for first cargo in early March.

Q: Betty Jiang asks about corporate-wide data system transformation.

A: Darren Woods and Kathy Mikells explain the transformation from multiple ERP systems to a single data construct, enabling cost savings, automation, and AI integration for improved efficiency and effectiveness.

Q: Steve Richardson asks about divestitures and legacy assets.

A: Darren Woods says Exxon is divesting nonstrategic assets to focus on advantaged portfolio, with ~$25 billion in divestments since 2019, and continues to look for accretive inorganic opportunities.

Q: Sam Margolin asks about the battery initiative.

A: Darren Woods explains the synergy between carbon business, battery applications, and other technologies, with progress in advanced battery anode graphite and working with OEMs.

Q: Jean Ann Salisbury asks about carbon capture and data centers.

A: Darren Woods says Exxon is engaged in serious conversations with hyperscalers about using carbon capture for data center decarbonization, expecting a project announcement by year end.

Q: Paul Cheng asks about upstream decline and manufacturing uptime.

A: Darren Woods states Exxon is early in leveraging technology to improve depletion rates and manufacturing uptime, with potential for continued growth and improvement through centralized operations.

Q: Biraj Borkhataria asks about chemicals segment green shoots.

A: Darren Woods says while demand is strong, margin pressure exists from capacity growth, but Exxon's focus on high-value products and cost efficiencies is driving differentiation.