EXXON MOBIL CORP MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL POSITION AND OPERATING RESULTS (Form 10-Q)

During the COVID-19 pandemic, industry investment to maintain and increase
production capacity was restrained to preserve capital, resulting in
underinvestment and supply tightness as demand for petroleum and petrochemical
products recovered. In addition, industry rationalization of refining capacity
resulted in more than 3 million barrels per day of capacity being taken offline.
Across late 2021 and the first half of 2022, this dynamic, along with supply
chain constraints, and a continuation of demand recovery led to a steady
increase in oil and natural gas prices and refining margins. In the first half
of 2022, tightness in the oil and natural gas markets was further exacerbated by
Russia's invasion of Ukraine and subsequent sanctions imposed upon business and
other activities in Russia. The price of Brent crude oil and certain regional
natural gas indicators increased to levels not seen for several years, and both
natural gas realizations and industry refining margins improved to levels well
above the 10-year range. By the end of the second quarter, high prices had led
to a tempering of demand for some products. Commodity and product prices are
expected to remain volatile given the current global economic uncertainty and
geopolitical events affecting supply and demand.

In response to Russia's military action in Ukraine, the Corporation announced in
early 2022 that it plans to discontinue operations on the Sakhalin-1 project
("Sakhalin") and develop steps to exit the venture. The Corporation remains
focused on protecting the safety of employees, operations, and the environment.
The Corporation is complying with all applicable laws and sanctions and is
currently engaged in transitioning Sakhalin-1 operating activities to another
party.

The Corporation's first quarter results included after-tax charges of $3.4
billion largely representing the impairment of its operations related to
Sakhalin (see Note 2 to Condensed Consolidated Financial Statements). Efforts to
transition operatorship to a third party and exit the venture are expected to
result in minimal hydrocarbon sales and cash flows for the Corporation's account
in future periods. For reference, excluding the impact of impairments and other
charges, after-tax earnings related to the Corporation's interest in Sakhalin
during the first half of 2022 were approximately $0.3 billion, and combined oil
and gas production was approximately 45 thousand oil-equivalent barrels per day.
The Corporation's exit from the project would result in quantities estimated at
150 million oil-equivalent barrels no longer qualifying as proved reserves,
which represented less than one percent of the Corporation's 18.5 billion
oil-equivalent barrels of proved reserves at year-end 2021.

The Corporation holds a 25% interest in Tengizchevroil, LLP (TCO), which
operates the Tengiz and Korolev oil fields in Kazakhstan, and holds a 16.8%
working interest in the Kashagan field in Kazakhstan. Oil production from those
operations is exported through the Caspian Pipeline Consortium (CPC) pipeline,
in which the Corporation holds a 7.5% interest. CPC traverses parts of
Kazakhstan and Russia to tanker-loading facilities on the Russian coast of the
Black Sea. In the event that existing sanctions related to Russia's military
actions in Ukraine expand, new sanctions are imposed, countermeasures are
employed by the Russian Federation, or other direct or indirect impacts arise,
it is possible that the transportation of Kazakhstan oil through the CPC
pipeline could be disrupted, curtailed, temporarily suspended, or otherwise
restricted. In such a case, the Corporation could experience a loss of cash
flows of uncertain duration. For reference, after-tax earnings related to the
Corporation's interests in Kazakhstan for the first half of 2022 were $1.5
billion, and its share of combined oil and gas production was approximately 250
thousand oil-equivalent barrels per day.

Effective April 1, 2022, the Corporation streamlined its business structure by
combining the Chemical and Downstream businesses into a single business, Product
Solutions. The new business is focused on growing high-value products, improving
competitiveness and leading in sustainability. Product Solutions consists of
three operating segments:
•Energy Products: Fuels, aromatics, and catalysts and licensing
•Chemical Products: Olefins, polyethylene, polypropylene, and intermediates
•Specialty Products: Finished lubricants, basestocks and waxes, synthetics, and
elastomers and resins

Further information on financial performance related to the new segments are
disclosed in Management's Discussion and Analysis and Note 8 to the Condensed
Consolidated Financial Statements.

                                       18
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SUMMARY OF FUNCTIONAL GAINS


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.
Three Months
Ended              Upstream               Energy Products               Chemical Products          Specialty Products
June 30, 2022                                                                                                                    Corporate and Financing       Total
(millions of    U.S.    Non-U.S.        U.S.        Non-U.S.          U.S.         Non-U.S.        U.S.       Non-U.S.
dollars)
Earnings
(loss) (U.S.     3,749      7,622          2,655          2,617            625              450         232           185                            (286)      17,850
GAAP)
Identified
Items

Gain/(loss)
on sale of         299          -              -              -              -                -           -             -                                -         299
assets

Earnings
(loss)
excluding        3,450      7,622          2,655          2,617            625              450         232           185                            (286)      17,551
Identified
Items



Three Months
Ended             Upstream               Energy Products               Chemical Products          Specialty Products
June 30,                                                                                                                        Corporate and Financing       Total
2021
(millions of   U.S.    Non-U.S.        U.S.        Non-U.S.          U.S.         Non-U.S.        U.S.       Non-U.S.
dollars)
Earnings
(loss) (U.S.  663        2,522        (278)             (578)      1,149            1,051              262           487                   (588)                4,690
GAAP)
Identified
Items

Severance       -            -           -                 -           -                -                -             -                    (12)                 (12)
charges

Earnings
(loss)
excluding     663        2,522        (278)             (578)      1,149            1,051              262           487                   (576)                4,702
Identified
Items



Six Months
Ended              Upstream               Energy Products               Chemical Products          Specialty Products
June 30, 2022                                                                                                                    Corporate and Financing        Total
(millions of    U.S.    Non-U.S.        U.S.        Non-U.S.          U.S.         Non-U.S.        U.S.       Non-U.S.
dollars)
Earnings
(loss) (U.S.     6,125      9,734          3,144          1,933          1,395            1,086         478           415                            (980)       23,330
GAAP)
Identified
Items
Impairments          -    (2,877)              -              -              -                -           -             -                             (98)      (2,975)
Gain/(loss)
on sale of         299          -              -              -              -                -           -             -                                -          299
assets

Other -
Russia               -      (378)              -              -              -                -           -             -                                -        (378)
impacts

Earnings
(loss)
excluding        5,826     12,989          3,144          1,933          1,395            1,086         478           415                            (882)       26,384
Identified
Items



Six Months
Ended              Upstream                Energy Products               Chemical Products          Specialty Products
June 30,                                                                                                                          Corporate and Financing       Total
2021
(millions of    U.S.     Non-U.S.        U.S.        Non-U.S.          U.S.         Non-U.S.        U.S.       Non-U.S.
dollars)
Earnings
(loss) (U.S.  1,026        4,713        (510)           (1,267)      1,803            1,788              442           862                 (1,437)                7,420
GAAP)
Identified
Items

Severance         -            -           -                 -           -                -                -             -                    (43)                 (43)
charges

Earnings
(loss)
excluding     1,026        4,713        (510)           (1,267)      1,803            1,788              442           862                 (1,394)                7,463
Identified
Items


References in this discussion to Corporate earnings (loss) mean net income
(loss) attributable to ExxonMobil (U.S. GAAP) from the Condensed Consolidated
Statement of Income. Unless otherwise indicated, references to earnings (loss),
Upstream, Energy Products, Chemical Products, Specialty Products, and Corporate
and Financing segment earnings (loss), and earnings (loss) per share are
ExxonMobil's share after excluding amounts attributable to noncontrolling
interests.

Due to rounding, numbers shown may not add up exactly to totals shown.

                                       19
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REVIEW OF SECOND QUARTER 2022 RESULTS

ExxonMobil the results for the second quarter of 2022 were $17.9 billionWhere $4.21 per diluted share, compared to earnings of $4.7 billion one year earlier. The increase in profits was due to higher upstream realizations and margins in energy products. Capital and exploration expenditures were $4.6 billionat the top
$0.8 billion from the second quarter of 2021.

Profit for the first six months of 2022 was $23.3 billionWhere $5.49 per diluted share, against $7.4 billion one year earlier. Capital and exploration expenditures were $9.5 billionat the top $2.6 billion from 2021. The Company distributed $7.5 billion in dividends to shareholders and bought back $6.1 billion of ordinary shares.


UPSTREAM

 Upstream Financial
 Results

 (millions of dollars)           Three Months Ended June 30,           Six Months Ended June 30,
                                          2022              2021                 2022          2021
 Earnings (loss) (U.S.
 GAAP)
 United States                    3,749               663                6,125             1,026
 Non-U.S.                         7,622             2,522                9,734             4,713
 Total                           11,371             3,185               15,859             5,739

 Identified Items (1)
 United States                      299                 -                  299                 -
 Non-U.S.                             -                 -               (3,255)                -
 Total                              299                 -               (2,956)                -

 Earnings (loss)
 excluding Identified
 Items (1)
 United States                    3,450               663                5,826             1,026
 Non-U.S.                         7,622             2,522               12,989             4,713
 Total                           11,072             3,185               18,815             5,739


              Upstream Second Quarter Earnings Factor Analysis
              (millions of dollars)


                     [[Image Removed: xom-20220630_g2.jpg]]

Prizes – Higher Achievements increased income from $7,900 million while the average realizations for crude oil increased by 71%, while the realizations for natural gas increased by 186%.

Volume/Mix – Higher volumes increased the profits of $440 millionreflecting the growth of Guyana and Permian and easing reductions, partially offset by downtime, lower fees and decline.

Other – All other items decreased earnings by $450 million due to write-downs related to the disposal and the absence of one-off tax impacts from the previous year.

Identified items (1) – 2Q 2022 $299 million gain on the sale of Barnett American Shale assets.

(1) Refer to Functional Revenue Summary for definition of identified items and profit (loss) excluding identified items.

                                       20
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              Upstream Year-to-Date Earnings Factor Analysis
              (millions of dollars)


                     [[Image Removed: xom-20220630_g3.jpg]]
Price - Higher realizations increased earnings by $13,830 million as average
realizations for crude oil increased 69% and natural gas realizations increased
161%.

Volume/Mix – Unfavorable volume and mix effects reduced the earnings of $380 millionreflecting the impacts of the reduction of Groningen’s gas production limit in
Netherlandsincreased downtime, including weather effects in the first quarter, and lower duties due to pricing, partially offset by growth in the Permian and Guyana.

Other – All other items decreased earnings by $370 million due to depreciation related to the disposal and the absence of one-off tax impacts on the previous year.


Identified Items (1) - 2022 $(2,956) million loss as a result of the company's
plans to discontinue operations on the Russia Sakhalin-1 project, partly offset
by a gain on the sale of U.S. Barnett Shale assets.

(1) Refer to Functional Revenue Summary for definition of identified items and profit (loss) excluding identified items.

                                       21
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Upstream Operational
Results

                            Three Months Ended June 30,                 Six Months Ended June 30,
                                     2022                       2021                            2022        2021
Net production of
crude oil, natural
gas liquids, bitumen
and synthetic oil
(thousands of
barrels daily)
United States                  777                             687                            765          676
Canada/Other                   556                             529                            516          552
Americas
Europe                           4                              16                              4           25
Africa                         224                             254                            240          254
Asia                           691                             669                            714          680
Australia/Oceania               46                              45                             43           42
Worldwide                    2,298                           2,200                          2,282        2,229

Net natural gas
production available
for sale
(millions of cubic
feet daily)
United States                2,699                           2,804                          2,738        2,786
Canada/Other                   180                             189                            180          203
Americas
Europe                         825                             654                            798        1,026
Africa                          67                              46                             63           35
Asia                         3,320                           3,433                          3,330        3,515
Australia/Oceania            1,515                           1,168                          1,421        1,166
Worldwide                    8,606                           8,294                          8,530        8,731


Oil-equivalent
production (1)
(thousands of                3,732                           3,582                             3,704       3,684
oil-equivalent
barrels daily)

(1) Natural gas is converted to oil equivalent at six million cubic feet per thousand barrels.



2Q 2022 versus 2Q 2021

Liquids production - 2.3 million barrels per day increased 98 thousand barrels
per day from 2Q 2021, reflecting growth in Permian and Guyana and easing
government-mandated curtailments, partly offset by lower entitlements due to
higher prices, higher downtime, and divestments.

Natural gas production available for sale – 8.6 billion cubic feet per day increased by 312 million cubic feet per day compared to 2Q 2021, reflecting reduced planned maintenance, partially offset by lower rights and fees. disposals.

YTD 2022 vs. YTD 2021


Liquids production - 2.3 million barrels per day increased 53 thousand barrels
per day from 2021, reflecting growth in Permian and Guyana and easing
government-mandated curtailments, partly offset by lower entitlements due to
higher prices, higher downtime including the effects of weather in the first
quarter of 2022, and divestments.

Natural gas production available for sale – 8.5 billion cubic feet per day decreased by 201 million cubic feet per day compared to 2021, reflecting the impacts of the Groningen production limit reduction, divestitures and Rights.

                                       22
--------------------------------------------------------------------------------

Additional Upstream Information


                                                            Three Months    

Semester completed

  (thousands of barrels daily)                              Ended June 30              June 30

Reconciliation of volumes (oil equivalent

manufacturing) (1)

 2021                                                                 3,582                   3,684
 Entitlements - Net Interest                                           (27)                    (29)
 Entitlements - Price / Spend / Other                                  (57)                    (48)
 Government Mandates                                                     90                     101
 Divestments                                                           (28)                    (46)
 Other                                                                  172                      42
 2022                                                                 3,732                   3,704

(1) Natural gas is converted into oil equivalent at six million cubic

feet per thousand barrels.

Below are descriptions of ExxonMobil volume reconciliation factors that are provided to help understand 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 as
a result of temporary non-operational production limits or sanctions imposed by
governments, generally upon a country, 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.

Other 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.

                                       23
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ENERGY PRODUCTS

 Energy
 Products
 Financial
 Results

 (millions of        Three Months Ended June 30,                Six Months Ended June 30,
 dollars)                     2022                      2021                            2022         2021
 Earnings
 (loss) (U.S.
 GAAP)
 United
 States               2,655                           (278)                         3,144          (510)
 Non-U.S.             2,617                           (578)                         1,933        (1,267)
 Total                5,273                           (856)                         5,077        (1,777)

 Earnings
 (loss)
 excluding
 Identified
 Items (1)
 United
 States               2,655                           (278)                         3,144          (510)
 Non-U.S.             2,617                           (578)                         1,933        (1,267)
 Total                5,273                           (856)                         5,077        (1,777)

(1) Refer to Functional Revenue Summary for definition of identified items and revenue

(loss) excluding identified items.



            Energy Products Second Quarter Earnings Factor Analysis
            (millions of dollars)


                     [[Image Removed: xom-20220630_g4.jpg]]

Margins – Higher margins increased profit by $5,770 million due to the improvement in industry refining margins and the favorable effects of mark-to-market valuation of derivatives.

Volume/Mix – Favorable volume and mix effects increased earnings from $280 millionmainly due to lower scheduled maintenance and overhaul activities.

Other – All other items increased earnings by $80 million.

                                       24
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           Energy Products Year-to-Date Earnings Factor Analysis
           (millions of dollars)


                     [[Image Removed: xom-20220630_g5.jpg]]

Margins – Higher margins increased profit by $5,960 million driven by an increase in industry refining margins.

Volume/Mix – Favorable volume and mix effects increased earnings from $580 millionmainly due to lower scheduled maintenance and overhaul activities.

Other – All other items increased earnings by $310 millionmainly due to the absence of terminal translation impacts during the previous year.



 Energy Products
 Operational Results

 (thousands of barrels          Three Months Ended June 30,           Six Months Ended June 30,
 daily)                                  2022              2021                 2022          2021
 Refinery throughput
 United States                   1,686             1,532                1,686             1,532
 Canada                            413               332                  406               348
 Europe                          1,164             1,223                1,179             1,188
 Asia Pacific                      532               607                  534               576
 Other                             193               164                  180               161
 Worldwide                       3,988             3,858                3,985             3,805

 Energy Products sales
 (1)
 United States                   2,452             2,230                2,358             2,153
 Non-U.S.                        2,858             2,776                2,853             2,766
 Worldwide                       5,310             5,006                5,211             4,920

 Gasoline, naphthas              2,208             2,117                2,161             2,057
 Heating oils, kerosene,
 diesel oils                     1,755             1,704                1,739             1,698
 Aviation fuels                    350               201                  319               192
 Heavy fuels                       228               275                  238               266
 Other energy products             769               709                  753               707

(1) Data published net of purchase/sale contracts with the same counterparty.





                                       25
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CHEMICAL PRODUCTS

 Chemical
 Products
 Financial
 Results

 (millions of        Three Months Ended June 30,                 Six Months Ended June 30,
 dollars)                     2022                       2021                            2022        2021
 Earnings
 (loss) (U.S.
 GAAP)
 United                        625
 States                                               1,149                          1,395        1,803
 Non-U.S.                      450                    1,051                          1,086        1,788
 Total                1,076                           2,200                          2,481        3,591

 Earnings
 (loss)
 excluding
 Identified
 Items (1)
 United
 States                 625                           1,149                          1,395        1,803
 Non-U.S.               450                           1,051                          1,086        1,788
 Total                1,076                           2,200                          2,481        3,591

(1) Refer to Functional Revenue Summary for definition of identified items and revenue

(loss) excluding identified items.



        Chemical Products Second Quarter Earnings Factor Analysis
        (millions of dollars)


                     [[Image Removed: xom-20220630_g6.jpg]]

Margins – Lower margins reduced earnings from $960 millionreflecting rising feed and energy costs, which are only partially offset by price increases.

Volume/Mix – Higher volumes increased the profits of $40 million.

Other – All other items decreased earnings by $200 millionprimarily due to an unfavorable foreign exchange rate, increased growth-related expenses and increased planned maintenance.

                                       26
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            Chemical Products Year-to-Date Earnings Factor Analysis
            (millions of dollars)


                     [[Image Removed: xom-20220630_g7.jpg]]

Margins – Lower margins reduced earnings from $910 millionreflecting higher feed and energy costs, partially offset by price increases.

Volume/Mix – Higher volumes increased the profits of $130 millionmainly due to WE sales including the start-up of the chemical complex of Corpus Christi, Texas.


Other - All other items decreased earnings by $330 million, primarily driven by
higher growth-related expenses, increased planned maintenance, and unfavorable
foreign exchange effects.


Chemical
Products
Operational
Results

(thousands of         Three Months Ended June 30,                 Six Months Ended June 30,
metric tons)                   2022                       2021                            2022        2021
Chemical
Products sales
(1)
United States          1,998                           1,782                          4,030        3,403
Non-U.S.               2,812                           2,949                          5,798        6,093
Worldwide              4,811                           4,731                          9,829        9,496

(1) Data published net of purchase/sale contracts with the same counterparty.




                                       27
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SPECIALTY PRODUCTS

  Specialty
  Products
  Financial
  Results

  (millions of        Three Months Ended June 30,               Six Months Ended June 30,
  dollars)                     2022                     2021                            2022        2021
  Earnings
  (loss) (U.S.
  GAAP)
  United
  States                 232                           262                            478          442
  Non-U.S.               185                           487                            415          862
  Total                  417                           750                            893        1,304

  Earnings
  (loss)
  excluding
  Identified
  Items (1)
  United
  States                 232                           262                            478          442
  Non-U.S.               185                           487                            415          862
  Total                  417                           750                            893        1,304

(1) Refer to Functional Revenue Summary for definition of identified items and revenue

  (loss) excluding Identified Items.



        Specialty Products Second Quarter Earnings Factor Analysis
        (millions of dollars)


                     [[Image Removed: xom-20220630_g8.jpg]]

Margins – Lower margins reduced earnings from $210 millionprimarily related to lower industry base inventory margins.

Volume/Mix – Unfavorable volume mix effects reduced the benefit of $90 millionmainly due to higher planned maintenance.

Other – All other items decreased earnings by $30 million.

                                       28
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            Specialty Products Year-to-Date Earnings Factor Analysis
            (millions of dollars)


                     [[Image Removed: xom-20220630_g9.jpg]]

Margins – Lower margins reduced earnings from $360 millionprimarily related to lower industry base inventory margins due to higher feed costs.

Volume/Mix – Unfavorable volume mix effects reduced the benefit of $60 million
driven by higher scheduled maintenance.

Other – All other items increased earnings by $10 million.


Specialty
Products
Operational
Results

(thousands of         Three Months Ended June 30,                 Six Months Ended June 30,
metric tons)                   2022                       2021                            2022        2021
Specialty
Products sales
(1)
United States            590                             495                          1,111        1,005
Non-U.S.               1,511                           1,447                          2,995        2,932
Worldwide              2,100                           1,942                          4,107        3,936

(1) Data reported net of purchases/sales contracts with the same counterparty.



CORPORATE AND FINANCING

Corporate
and
Financing
Financial
Results

(millions of        Three Months Ended June 30,                Six Months Ended June 30,
dollars)                     2022                      2021                            2022          2021

Earnings
(loss) (U.S.          (286)                          (588)                          (980)        (1,437)
GAAP)
Identified               -                            (12)                           (98)           (43)
Items (1)
Earnings
(loss)
excluding             (286)                          (576)                          (882)        (1,394)
Identified
Items (1)

(1) Refer to Functional Revenue Summary for definition of identified items and profit (loss) excluding identified items.



Corporate and Financing expenses were $286 million for the second quarter of
2022, $302 million lower than the second quarter of 2021, reflecting favorable
one-time tax impacts.

General and financing costs were $980 million for the first six months of 2022, $457 million less than 2021.

                                       29
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CASH AND CAPITAL RESOURCES

(millions of dollars)         Three Months Ended June 30,                 Six Months Ended June 30,
                                       2022                       2021                            2022          2021
Net cash provided
by/(used in)
Operating activities                                                                         34,751         18,914
Investing activities                                                                         (7,009)        (5,071)
Financing activities                                                                        (15,384)       (14,807)
Effect of exchange                                                                             (299)            65
rate changes
Increase/(decrease) in
cash and cash                                                                                12,059           (899)
equivalents

Cash and cash
equivalents (at end of                                                                       18,861          3,465
period)

Cash flow from
operations and asset
sales
Net cash provided by
operating activities          19,963                           9,650                         34,751         18,914
(U.S. GAAP)
Proceeds associated
with sales of
subsidiaries,
property, plant &
equipment, and sales
and returns of
investments                      939                             250                          1,232            557
Cash flow from
operations and asset          20,902                           9,900                         35,983         19,471
sales

Due to the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider the proceeds associated with the sale of assets as well as the cash provided by investment activities. operations when assessing cash available for business investment and financing activities, including distributions to shareholders. .

Cash flow from operations and asset sales in the second quarter of 2022 was
$20.9 billionan augmentation of $11.0 billion compared to the comparable period of 2021, mainly reflecting higher profits.


Cash provided by operating activities totaled $34.8 billion for the first six
months of 2022, $15.8 billion higher than 2021. Net income including
noncontrolling interests was $24.3 billion, an increase of $16.7 billion from
the prior year period. The adjustment for the noncash provision of $13.3 billion
for depreciation and depletion was up $3.4 billion from 2021. Changes in
operational working capital were a reduction of $1.7 billion, compared to a
contribution of $1.6 billion in the prior year period. All other items net
decreased cash flows by $1.2 billion in 2022 versus a reduction of $0.2 billion
in 2021. See the Condensed Consolidated Statement of Cash Flows for additional
details.

Investing activities for the first six months of 2022 used net cash of $7.0
billion, an increase of $1.9 billion compared to the prior year. Spending for
additions to property, plant and equipment of $7.7 billion was $2.6 billion
higher than 2021. Proceeds from asset sales were $1.2 billion compared to $0.6
billion in the prior year period. Net investments and advances were essentially
flat with prior year.

Net cash used in financing activities was $15.4 billion in the first six months
of 2022, including $6.1 billion for the purchase of 71.1 million shares of
ExxonMobil stock, as part of the previously announced buyback program. This
compares to net cash used in financing activities of $14.8 billion in the prior
year, reflecting long-term debt repayments of $7.0 billion during the first six
months of 2021.

Total debt at the end of the second quarter of 2022 was $46.9 billion compared
to $47.7 billion at year-end 2021. The Corporation's debt to total capital ratio
was 20.3 percent at the end of the second quarter of 2022 compared to 21.4
percent at year-end 2021. The net debt to capital ratio was 13.2 percent at the
end of the second quarter, a decrease of 5.7 percentage points from year-end
2021. The Corporation's capital allocation priorities continue to be investing
in advantaged projects, strengthening the balance sheet and paying a reliable
dividend.

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. Cash and cash equivalents was $18.9 billion at the
end of the second quarter of 2022. The Corporation had undrawn short-term
committed lines of credit of $10.6 billion, of which $10 billion will expire
without renewal in the third quarter, and undrawn long-term committed lines of
credit of $0.4 billion as of second quarter 2022.

The Company distributed a total of $7.5 billion to shareholders in the first six months of 2022 through dividends.


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. 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.

Litigation and other contingencies are discussed in Note 3 to the unaudited condensed consolidated financial statements.

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TAXES
                                            Three Months              Six Months Ended June
(millions of dollars)                      Ended June 30,                      30,
                                                    2022         2021                  2022          2021
Income taxes                                    6,359        1,526                 9,165         2,322
Effective income tax                               31  %        30  %                 34  %         31  %
rate
Total other taxes and                           7,779        8,441                16,228        15,724
duties (1)
Total                                          14,138        9,967                25,393        18,046

(1) Includes “Other taxes and duties” plus taxes which are included in “Production and manufacturing expenses” and “Selling, general and administrative expenses”.



Total taxes were $14.1 billion for the second quarter of 2022, an increase of
$4.2 billion from 2021. Income tax expense was $6.4 billion compared to $1.5
billion in the prior year reflecting higher commodity prices. The effective
income tax rate of 31 percent compared to 30 percent in the prior year period.
Total other taxes and duties decreased by $0.7 billion to $7.8 billion.

Total taxes were $25.4 billion for the first six months of 2022, an increase of
$7.3 billion from 2021. Income tax expense increased by $6.8 billion to $9.2
billion reflecting higher commodity prices. The effective income tax rate of 34
percent compared to 31 percent in the prior year period primarily due to a
change in mix of results in jurisdictions with varying tax rates and the impact
of one-time items. Total other taxes and duties increased by $0.5 billion to
$16.2 billion.

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 district court (District Court) with respect to the positions at
issue for those years. 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 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
Appeals for the Fifth Circuit (Fifth Circuit). Proceedings in the Fifth Circuit
are continuing.

On March 4, 2022, the Corporation also filed a refund suit for tax years
2010-2011 in District Court with respect to the positions at issue for those
years. The Corporation has not recognized asserted penalties for 2010-2011 as an
expense because the Corporation does not expect the penalties to be sustained
under applicable law. 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.


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CAPITAL AND EXPLORATION EXPENSES

(millions of         Three Months Ended June 30,                 Six Months Ended June 30,
dollars)                      2022                       2021                            2022        2021
Upstream
(including            3,627                           2,817                          7,506        5,174
exploration
expenses)
Energy                  506                             429                          1,072          878
Products
Chemical                419                             512                            855          811
Products
Specialty                56                              44                             79           72
Products
Other                     1                               1                              1            1
Total                 4,609                           3,803                          9,513        6,936

Capital and exploration expenditures in the second quarter of 2022 were $4.6 billionup 21% compared to the second quarter of 2021.


Capital and exploration expenditures in the first six months of 2022 were $9.5
billion, up 37 percent from the first six months of 2021. The Corporation plans
to invest in the range of $21 billion to $24 billion in 2022. Actual spending
could vary depending on the progress of individual projects and property
acquisitions.


FORWARD-LOOKING STATEMENTS

Statements related to outlooks; projections; descriptions of strategic,
operating, and financial plans and objectives; statements of future ambitions
and plans; and other statements of future events or conditions, are
forward-looking statements. Actual future results, including financial and
operating performance; total capital expenditures and mix, including allocations
of capital to low carbon solutions; cost reductions and efficiency gains,
including the ability to offset inflationary pressure; plans to reduce future
emissions and emissions intensity; timing and outcome of projects to capture and
store CO2, produced biofuels, and use of plastic waste as recycling feedstock;
timing and outcome of hydrogen projects; cash flow, dividends and shareholder
returns, including the timing and amounts of share repurchases; future debt
levels and credit ratings; business and project plans, timing, costs, capacities
and returns; and resource recoveries and production rates 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 conditions that impact prices and differentials for our
products; variable impacts of trading activities on our margins and results each
quarter; actions of competitors and commercial counterparties; the outcome of
commercial negotiations, including final agreed terms and conditions; the
ability to access debt markets; the ultimate impacts of COVID-19, including the
extent and nature of further outbreaks and the effects of government responses
on people and economies; reservoir performance, including variability and timing
factors applicable to unconventional resources; the outcome of exploration
projects and decisions to invest in future reserves; timely completion of
development and other construction projects; final management approval of future
projects and any changes in the scope, terms, or costs of such projects as
approved; changes in law, taxes, or regulation including environmental
regulations, trade sanctions, and timely granting of governmental permits and
certifications; government policies and support and market demand for low carbon
technologies; war, and other political or security disturbances; opportunities
for potential investments or divestments and satisfaction of applicable
conditions to closing, including regulatory approvals; the capture of
efficiencies within and between business lines and the ability to maintain
near-term cost reductions as ongoing efficiencies; unforeseen technical or
operating difficulties and unplanned maintenance; the development and
competitiveness of alternative energy and emission reduction technologies; the
results of research programs and the ability to bring new technologies to
commercial scale on a cost-competitive basis; and other factors discussed under
Item 1A. Risk Factors of ExxonMobil's 2021 Form 10-K.

Forward-looking and other statements regarding our environmental, social and
other sustainability efforts and aspirations are not an indication that these
statements are necessarily material to investors or requiring disclosure in our
filing with the SEC. In addition, historical, current, and forward-looking
environmental, social and sustainability-related statements may be based on
standards for measuring progress that are still developing, internal controls
and processes that continue to evolve, and assumptions that are subject to
change in the future, including future rule-making.

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.

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