- Annual Shareholders Meeting highlights company’s plans to play
a leading role in the energy transition
- Strategy focused on five priorities to sustainably grow
shareholder value
- Streamlined business structure to take advantage of technology,
scale and integration
ExxonMobil said today it plans to grow shareholder value by
delivering solutions that help meet the global need for energy and
for lower greenhouse gas emissions to address climate change.
Darren Woods, chairman and chief executive officer, outlined how
the company’s strategy leverages its capabilities and competitive
advantages at the annual meeting of shareholders.
“We have opportunities to play a leading role in helping society
achieve its net-zero ambitions and in meeting the world’s growing
demand for energy and essential products,” said Woods. “Recent
events have reminded us how globally connected energy markets are.
They’ve also underscored the importance of our role in creating
sustainable solutions that improve quality of life, while
supporting a lower- emissions future.”
ExxonMobil in April streamlined its business structure to
consist of three core businesses – Upstream, Product Solutions and
Low Carbon Solutions – to fully leverage the company’s competitive
advantages of scale, integration, technology, functional excellence
and highly skilled workforce.
ExxonMobil is focused on five key strategic priorities to
sustainably grow shareholder value:
- Leading industry in financial, operational and environmental
performance, including across key metrics of safety, reliability,
greenhouse gas emissions intensity reductions, earnings and cash
flow growth.
- Being an essential partner through creation of innovative
solutions for customers, partners and stakeholders.
- Upgrading the company’s advantaged portfolio to ensure it leads
competition and delivers value across a range of external
environments and through volatile and evolving markets.
- Continuing to innovate, providing solutions that meet the
growing needs of society reliably and affordably. This means new
products, technologies and approaches that better meet today's and
tomorrow's needs and can be deployed at scale to create meaningful
impact.
- Developing the company’s workforce and maintaining a diverse
and engaged organization that provides every individual unrivalled
opportunities for personal and professional growth with impactful
work meeting society’s evolving needs.
Woods highlighted the company’s strong performance in 2021,
noting that earnings significantly improved to $23 billion and cash
flow from operating activities totaled $48 billion, the highest
since 2012. Future plans include structural cost savings of $9
billion per year by 2023, compared to 2019, and more than $15
billion of investments through 2027 on initiatives to lower
greenhouse gas emissions. They include investments to reduce
emissions from company operations and to advance critical
technologies like carbon capture and storage, hydrogen and
biofuels, which together are expected to develop into
multi-trillion-dollar markets in the decades ahead.
“Long-term, we have the portfolio flexibility necessary to pace
our investments consistent with advancements in technology, markets
and supportive policy,” Woods said. “As we move forward, we’ll
remain focused on executing our strategy, sustainably growing value
across a broad range of scenarios and time horizons, and
importantly, leading the industry, now and through the energy
transition.”
In the near term, ExxonMobil is increasing production of the
energy resources and products the world needs.
For example, in Guyana, the company has two oil fields in
production and two more in development, and made new discoveries
that increased the estimated recoverable resource to nearly 11
billion barrels of oil equivalent.
In the Permian Basin in the United States, ExxonMobil expects to
produce more than 550,000 oil equivalent barrels per day this year,
which would represent a production increase of 25% on top of the
increase achieved in 2021. The company’s state-of-the-art Corpus
Christi chemical complex started production on schedule and under
budget and delivered positive earnings and cash flow in its first
quarter of operations.
ExxonMobil continues to mitigate emissions from its operations
and achieved its 2025 emission-reduction plans four years earlier
than planned. This progress supports the company’s more aggressive
2030 greenhouse gas emission-reduction plans and its ambition to
achieve net-zero scope 1 and 2 greenhouse gas emissions from
operated assets by 2050.
During the annual meeting, shareholders re-elected ExxonMobil’s
board of director nominees, supported the company’s executive
compensation program, ratified PricewaterhouseCoopers LLP as
independent auditors and passed one proposal by shareholders. The
proxy voting results will be made available on the company’s
website as soon as practical.
About ExxonMobil
ExxonMobil, one of the largest publicly traded international
energy and petrochemical companies, creates solutions that improve
quality of life and meet society’s evolving needs.
The corporation’s primary businesses - Upstream, Product
Solutions and Low Carbon Solutions - provide products that enable
modern life, including energy, chemicals, lubricants, and
lower-emissions technologies. ExxonMobil holds an industry-leading
portfolio of resources, and is one of the largest integrated fuels,
lubricants and chemical companies in the world. To learn more,
visit exxonmobil.com and the Energy Factor.
Follow us on Twitter and LinkedIn.
Cautionary Statement
Statements of future events or conditions in this press release
are forward-looking statements. Similarly, emission-reduction
roadmaps to drive toward net zero are dependent on future market
factors, such as continued technological progress and policy
support, and represent forward-looking statements. Actual future
results, including financial and operating performance; earnings,
cash flow, and rates of return; structural cost savings, total
capital expenditures and mix, including allocations of capital to
low carbon solutions; cost reductions and efficiency gains,
including the ability to meet or exceed announced cost and expense
reduction objectives; plans to reduce future emissions and
emissions intensity; technology efforts, including timing and
outcome of projects to capture and store CO2, produce biofuels,
integrate hydrogen projects, and use plastic waste as recycled
feedstock; achievement of ambitions to reach Scope 1 and Scope 2
net zero from operated assets by 2050, or Scope 1 and Scope 2 net
zero in Upstream Permian operated assets by 2030, the elimination
of routine flaring in-line with World Bank Zero Routine Flaring, or
the completion of major asset emission-reduction roadmaps;
maintenance and turnaround activity; price and margin recovery;
shareholder distributions; the ability to access debt markets;
resource recoveries and production rates; and product sales levels
and mix could differ materially due to a number of factors
including global or regional changes in oil, gas, petrochemicals,
or feedstock prices, differentials, or other market or economic
conditions affecting the oil, gas, and petrochemical industries and
the demand for our products; policy and consumer support for
emission-reduction products and technology; the outcome of
competitive bidding and project wins; regulatory actions targeting
public companies in the oil and gas industry; changes in local,
national, or international laws, regulations, and policies
affecting our business including with respect to the environment;
the development and transportation of our products; taxes, trade
sanctions, and actions taken in response to pandemic concerns; the
pace of regional and global economic recovery from the pandemic and
the occurrence and severity of future outbreaks; the ability to
realize efficiencies within and across our business lines and to
maintain cost reductions without impairing our competitive
positioning; the outcome and timing of exploration and development
projects; reservoir performance; timely completion of construction
projects; war and other security disturbances; actions of consumers
and changes in consumer preferences; opportunities for and
regulatory approval of investments or divestments that may arise;
the outcome of our or competitors’ research efforts and the ability
to bring new technology to commercial scale on a cost-competitive
basis; the development and competitiveness of alternative energy
and emission reduction technologies; unforeseen technical or
operating difficulties including the need for unplanned
maintenance; and other factors discussed here and in Item 1A. Risk
Factors of our Annual Report on Form 10-K and under the heading
“Factors Affecting Future Results” available through the Investors
page of our website at exxonmobil.com. All forward-looking
statements are based on management’s knowledge and reasonable
expectations at the time of this press release and we assume no
duty to update these statements as of any future date. Neither
future distribution of this material nor the continued availability
of this material in archive form on our website should be deemed to
constitute an update or re-affirmation of these figures or
statements as of any future date. Any future update will be
provided only through a public disclosure indicating that fact.
This press release references third party scenarios such as the
IEA’s Net Zero Emissions by 2050 Scenario. Third party scenarios
reflect the modeling assumptions and outputs of their respective
authors, not ExxonMobil, and their use and inclusion herein is not
an endorsement by ExxonMobil of their likelihood or probability.
Energy demand modeling aims to replicate system dynamics of the
global energy system, requiring simplifications. 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.
Actions needed to advance the Company’s 2030 greenhouse gas
emission-reductions plans are incorporated into its medium-term
business plans, which are updated annually. The reference case for
planning beyond 2030 is based on the Company’s Energy Outlook
research and publication, which contains the Company’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 ExxonMobil, to meet net zero by 2050. As future
policies and technology advancements emerge, they will be
incorporated into the Outlook, and the Company’s business plans
will be updated accordingly.
ExxonMobil reported emissions, including reductions and
avoidance performance data, are based on a combination of measured
and estimated data. Calculations are based on industry standards
and best practices, including guidance from the American Petroleum
Institute (API) and IPIECA. The uncertainty associated with the
emissions, reductions and avoidance performance data depends on
variation in the processes and operations, the availability of
sufficient data, the quality of those data and methodology used for
measurement and estimation. Changes to the performance data may be
reported as updated data and/or emission methodologies become
available. ExxonMobil works with industry, including API and
IPIECA, to improve emission factors and methodologies, including
measurements and estimates.
The term “resource” refers to the total remaining estimated
quantities of oil and natural gas that are expected to be
ultimately recoverable. The term “resource” or similar terms is not
intended to correspond to SEC definitions such as “probable” or
“possible” reserves.
Structural cost savings describe decreases as a result of
operational efficiencies, workforce reductions and other cost
saving measures that are expected to be sustainable compared to
2019 levels. The total change between periods in expenses 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. Forward-looking estimates of
structural cost savings are based on Company plan, and may include
management adjustments.
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