Q2 2024 Exxon Mobil Corp Earnings Call

Operator: Please stand by; we are about to begin. Good day, everyone, and welcome to this Exxon Mobil Corporation second quarter 2024 earnings call. Today's call is being recorded. At this time, I would like to turn the call over to the Vice President of Investor Relations, Mrs. Jennifer Driscoll. Please go ahead, ma'am.

Operator: Please stand by; we are about to begin. Good day, everyone, and welcome to this Exxon Mobil Corp. 2nd quarter, 2024 earnings call.

Please standby we're about to begin.

Good day, everyone and welcome to this Exxon Mobil Corporation second quarter, 'twenty 'twenty four earnings call.

Operator: Today's call is being recorded.

Today's call is being recorded.

Jennifer Driscoll: At this time, I would like to turn the call over to the Vice President of Investor Relations, Mrs. Jennifer Driscoll.

At this time I would like to turn the call over to the Vice President of Investor Relations. Mr. Jennifer Driscoll. Please go ahead ma'am.

Operator: Please go ahead, ma'am.

Okay.

James Chapman: Good morning, everyone. Welcome to Exxon Mobil's 2nd quarter 2024 earnings call. We appreciate you're joining us.

Jennifer Driscoll: Hey everyone, welcome to Exxon Mobil's second quarter 2024 earnings call. We appreciate you joining us.

Good morning, everyone welcome to Exxon Mobiles second quarter 2024 earnings call.

Jim Chapman: I'm Jim Chapman, Vice President, Treasurer, and Investor Relations. I'm joined by Darren Woods, Chairman and CEO, and Kathy Michaels, Senior Vice President, and CFO. This presentation and pre-recorded remarks are available on the investors section of our website. They are meant to accompany the second quarter earnings news release, which is posted in the same location. During today's presentation, we'll make forward-looking comments, including discussions of our long-term plans and integration efforts, which are still being developed and which are subject to risks and uncertainties.

We appreciate your joining us I'm, Jim Chapman, Vice President Treasurer, and Investor Relations I'm joined by Darren Woods, Chairman and CEO, and Kathy Michael Senior Vice President and CFO.

James Chapman: I'm Jim Chapman, Vice President, Treasurer, and Investor Relations. I'm joined by Darren Woods, chairman, and CEO, and Kathy Michaels, senior vice president, and CFO. This presentation and prerecorded remarks are available on the Investor section of our website. They are meant to accompany the 2nd quarter earnings news release, which is posted in the same location.

Speaker Change: This presentation and pre recorded remarks are available on the investors section of our website.

Speaker Change: They are meant to accompany this second quarter earnings news release, which is posted in the same location.

James Chapman: During today's presentation, we'll make forward-looking comments, including discussions of our long-term plans and integration efforts, which are still being developed and which are subject to risks and uncertainties. Please read our cautionary statement on Slide 2. You can find more information on the risks and uncertainties that apply to any forward-looking statements in our SEC filings on our website. Note that we also provided supplemental information at the end of our earnings slides, which are also posted on the website.

During today's presentation, we will make forward looking comments, including discussions of our long term plans and integration efforts, which are still being developed and which are subject to risks and uncertainties.

Jim Chapman: Please read our cautionary statement on slide two. You can find more information on the risks and uncertainties that apply to any forward-looking statements in our SEC filings on our website. Note that we also provided supplemental information at the end of our earnings slides, which are also posted on our website. Now, I'll turn it over to Darren for opening remarks.

Speaker Change: Please read our cautionary statement on slide two.

Speaker Change: You can find more information on the risks and uncertainties that apply to any forward looking statements in our SEC filings on our website.

Speaker Change: Note that we also provided supplemental information at the end of our earnings slides, which are also posted on the website.

Darren Woods: And now I'll turn it over to Darren for opening remarks. Good morning, and thanks for joining us. Exxon Mobil's performance remained strong. In the 2nd quarter, we delivered earnings of $9.2 billion. Our 2nd best, 2nd quarter results in the last 10 years. Just as important, we continue to improve the fundamental earnings power of the company, as Kathy covers and her prepared remarks are available on our website. All overall market conditions were soft in the 2nd quarter. Well prices remained firm. As a reminder, at Brent between $60 and $80 a barrel reel, and 10-year average refinery and chemical margins, we expect to generate between $80 and $140 billion in Q&A.

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

Darren Woods: Good morning, and thanks for joining us. Exxon Mobil's performance remains strong. In the second quarter, we delivered earnings of $9.2 billion, our second best second quarter results in the last 10 years. Just as important, we continue to improve the fundamental earnings power of the company, as Kathy covers in her prepared remarks available on our website. However, overall market conditions were softer in the second quarter.

Darren Woods: Good morning, and thanks for joining us.

Exxonmobil performance remains strong.

Darren Woods: In the second quarter, we delivered earnings of $9 $2 billion, our second best second quarter results in the last 10 years.

Darren Woods: Just as important we continue to improve as our fundamental earnings power of the company.

Kathy Michael: Kathy cars in her prepared remarks available on our website.

Darren Woods: Oil prices remained firm. As a reminder, at Brent, between $60 and $80 a barrel, and 10-year average refinery and chemical margins. We expect to generate between $80 and $140 billion in cumulative surplus cash from 2024 to 2027, and the Pioneer acquisition increases that even further. In the quarter, we once again set production records from our advantage assets in Guyana and the Permian. Including Pioneer, our premium production surged to 1.2 million barrels per day.

Kathy Michael: Overall market conditions were soft in the second quarter oil prices remain firm.

Kathy Michael: As a reminder.

Kathy Michael: And Brent between 60 and $80 a barrel real.

Kathy Michael: And 10 year average refinery and chemical margins.

Kathy Michael: We expect to generate between 80 and $140 billion in cumulative surplus cash from 'twenty 'twenty four to 'twenty 'twenty seven.

Darren Woods: The cumulative surplus cash from 2024 to 2027. The pioneer acquisition increases that even further. In the quarter, we once again set production records from our advantage assets in Guyana and the Permian, including Pioneer. Our Permian production surged to $1.2 million per day. In product solutions, our sales of high return performance products rose 5% sequentially to a new record. Our strong performance in the quarter continues to support our capital allocation priorities, including the distribution of $9.5 billion to shareholders, of which $4.3 billion was in dividends. With the close of the Pioneer transaction, our shareholders now include the former owners of Pioneer stock, who've begun to benefit from the strength of our combined companies.

Kathy Michael: The pioneer acquisition increases that even further.

In the quarter, we once again set production records from our advantage assets in Guyana and the Permian.

Kathy Michael: Including pioneer our Permian production surged to 1.2 million barrels per day.

Darren Woods: In product solutions, our sales of high-performance products rose 5% sequentially to a new record. Our strong performance in the quarter continues to support our capital allocation priorities, including the distribution of $9.5 billion to shareholders, of which $4.3 billion was in dividends.

Kathy Michael: And product solutions ourselves in high return performance products rose, 5% sequentially to new record.

Kathy Michael: Our strong performance in the quarter continues to support our capital allocation priorities.

Kathy Michael: Including the distribution of $9 $5 billion to shareholders of which $4 3 billion plus in dividends.

Darren Woods: At the close of the Pioneer transaction, our shareholders now include the former owners of Pioneer stock, who have begun to benefit from the strength of our combined companies. We welcome them to Exxon Mobil, just as we do the talented people of Pioneer, who bring a strong entrepreneurial mindset and deep expertise in unconventional resource development. I also want to recognize the combined transaction team for their excellence in execution. The average time to complete this type of merger over the last several years has been more than 11 months. We closed Pioneer in six.

Kathy Michael: To close the pioneer transaction our shareholders now includes the former owners of pioneer stock.

Kathy Michael: Going to benefit from the strength of our combined companies.

Darren Woods: We welcome them to ExxonMobil, just as we do the talented people of Pioneer, who bring a strong entrepreneurial mindset and deep expertise in unconventional resource development. I also want to recognize the combined transaction team for their excellence in execution. The average time to complete this type of merger over the last several years has been more than 11 months. We close Pioneer in six. Once again demonstrating the strength of our organization and effectively executing large, complicated projects, including large acquisitions. It is challenging work requiring deep thinking, a highly structured approach, and disciplined action, areas where we excel.

Kathy Michael: We welcome them to Exxonmobil, just as we do the talented people of pioneer who bring a strong.

Kathy Michael: For neuro mindset and deep expertise in unconventional resource development.

Kathy Michael: I also want to recognize the combined transaction team for their excellence in execution.

The average time to complete this type of merger over the last several years has been more than 11 months.

Kathy Michael: We closed a pioneer in six.

Darren Woods: Once again, demonstrating the strength of our organization and effectively executing large, complicated projects, including large acquisitions. It is challenging work, requiring deep thinking. A highly structured approach and disciplined action, areas where we excel. Although it's still early days, the integration is exceeding our expectations, and I'm confident we'll deliver even more synergies than we've announced. The team looks forward to sharing these details and all the other work we're doing to significantly grow value at our corporate plan update and upstream spotlight in December. As we look ahead,

Once again, demonstrating the strength of our organization and effectively executing large complicated projects.

Kathy Michael: Large acquisitions.

Kathy Michael: It is challenging work requiring deep thinking yeah.

Kathy Michael: Highly structured approach and disciplined action.

Kathy Michael: Areas, where we excel.

Darren Woods: Although it's still early days, the integration is exceeding our expectations, and I'm confident we'll deliver even more synergies than we've announced. The team looks forward to sharing these details and all the other work we're doing to significantly grow value at a corporate plan update and upstream spotlight in December. As we look ahead, we see opportunities to grow value not only through our corporate plan period, but long into the future. Later this month, we'll publish our global outlook, which projects global energy demand 15% higher in 2050 than it is today. We see old demand holding steady at around 100 million barrels per day in 2050.

Kathy Michael: Although it's still early days the integration is exceeding our expectations and I'm confident we'll deliver even more synergies than we've announced.

Kathy Michael: The team looks forward to sharing these details and all the other work we're doing to significantly grow value.

Kathy Michael: Corporate plan update and upstream spotlight in December.

Kathy Michael: As we look ahead we.

Darren Woods: We see opportunities to grow value not only through our corporate plan period but long into the future. Later this month, we'll publish our Global Outlook, which projects global energy demand 15% higher in 2050 than it is today. We see oil demand holding steady at around 100 million barrels per day in 2050.

Kathy Michael: We see opportunities to grow value not only through our corporate plan period, but long into the future.

Kathy Michael: Later this month, we will publish our global outlook.

Which projects global energy demand at 15% higher than 2050 than it is today.

Kathy Michael: We see the older man holding steady at around 100 million barrels per day in 2015.

Darren Woods: The demand for renewables and natural gas grows considerably. An energy abundant future driven by economic growth and rising levels of prosperity creates opportunity for ExxonMobil, no matter the speed or direction of the energy transition. Over time, as it becomes more and more obvious that heavy industry and commercial transportation will not be meaningfully powered by renewables, the world will come to rely more on technologies where we have an advantage, including hydrogen, biofuels, and carbon capture and storage. A serious approach to the transition should focus on moving the world from high carbon to low carbon energy, not simply from oil and gas to wind and solar.

Darren Woods: Demand for renewables and natural gas is growing considerably. An energy-abundant future driven by economic growth and rising levels of prosperity creates opportunity for ExxonMobil, no matter the speed or direction of the energy transition.

Kathy Michael: While demand for renewables and natural gas gross considerably.

Kathy Michael: And energy abundant future driven by economic growth.

Kathy Michael: Rising levels of prosperity creates opportunity for Exxonmobil.

Kathy Michael: The speed or direction of the energy transition.

Darren Woods: Over time, it will become more and more obvious that heavy industry and commercial transportation will not be meaningfully powered by renewables. The world will come to rely more on technologies for which we have an advantage, including hydrogen, biofuels, and carbon capture and storage. A serious approach to the transition should focus on moving the world from high carbon to low carbon energy, not simply from oil and gas to wind and solar. The data, science, and economics all support this as fundamentally necessary.

Kathy Michael: Overtime as it becomes more and more obvious.

Kathy Michael: Heavy industry and commercial transportation will not be meaningfully powered by renewables.

Speaker Change: World will come to rely more on technologies, where we have an advantage.

Speaker Change: Including hydrogen biofuels and carbon capture and storage.

Speaker Change: A serious approach to the transition should focus on moving the world from high carbon to low carbon energy.

Speaker Change: Not simply from oil and gas to wind and solar.

Darren Woods: The data, science, and economics all support this as fundamentally necessary. Our strategy reflects this reality, and since we're realizing the same corporate capabilities and advantages under any scenario, it is extremely flexible, delivering strong profitability irrespective of the path society takes. As a technology company, it transforms molecules to meet society's needs. We're not defined by our existing product suite. We began as a maker of kerosene for lamps. Today, no one thinks of ExxonMobil as a kerosene company serving the lamp industry. In the future, ExxonMobil will be defined by the technologies and products it is producing to meet the world's future needs.

Speaker Change: The data science and economics, all support this as fundamentally necessary.

Darren Woods: Our strategy reflects this reality, and since it relies on the same corporate capabilities and advantages under any scenario, it is extremely flexible, delivering strong profitability irrespective of the path society takes. As a technology company that transforms molecules to meet society's needs, we're not defined by our existing product suite. We began as a maker of kerosene for lamps. Today, no one thinks of Exxon Mobil as a kerosene company serving the lamp industry in the future.

Speaker Change: Our strategy reflects this reality.

Speaker Change: And since it relies on the same corporate capabilities and advantages under any scenario. It is extremely flexible.

Speaker Change: Delivering strong profitability irrespective of the past Society takes.

Speaker Change: As a technology company that transforms molecules to meet society's needs, we're not defined by our existing product suite.

Speaker Change: We began as a maker of kerosene for labs.

Speaker Change: Today.

Speaker Change: No one thinks of Exxonmobil as a kerosene company Sir.

Speaker Change: The lamp industry.

Speaker Change: In the future.

Darren Woods: Exxon Mobil will be defined by the technologies and products it is producing to meet the world's future needs, and as always, by drawing on our unique combination of competitive advantages. We shared with you a variety of technologies and products we're developing to more effectively meet existing needs while helping the world achieve a lower carbon future. Two examples where I see significant new market potential are Proxima and carbon materials. With Proxima, we transform lower-value gasoline molecules into a high-performance, high-value thermoset resin that can be used in coatings.

Speaker Change: Exxonmobil will be defined by the technologies and products. It is producing to meet the world's future needs.

Darren Woods: As always, by drawing on our unique combination of competitive advantages, we're shared with you a variety of technologies and products we're developing to more effectively meet existing needs while helping the world achieve a lower carbon future. Two examples where I see significant new market potential are Proxima in carbon materials. With Proxima, we transform lower-value gasoline molecules into a high-performance, high-value thermoset resin that can be used in coatings, lightweight construction materials, and advanced composites for cars and trucks, including battery boxes for electric vehicles. In March, we showcase the automotive uses of Proxima at the world's leading international composite exhibition in Paris.

As always by drawing on our unique combination of competitive advantages.

Speaker Change: We shared with you a variety of technologies and products, we're developing to more effectively meet existing needs, while helping the world achieve a lower carbon future.

Speaker Change: Two examples where I see significant new market potential approximate carbon materials.

Speaker Change: With Proxima, we transform lower value gasoline molecules into a high performance high value thermostat resin that can be used in coatings.

Darren Woods: Lightweight Construction Materials, Advanced Composites for Cars and Trucks, including battery boxes for electric vehicles. Materials made with Proxima are lighter, stronger, more durable, and produced with significantly fewer GHG emissions than traditional alternatives. In March, we showcased the automotive uses of Proxima at the world's leading international composite exhibition in Paris.

Speaker Change: <unk> construction materials and advanced composites for cars and trucks.

Speaker Change: Including battery boxes for electric vehicles.

Speaker Change: Materials, maybe with proxima are wider stronger more durable and produced with significantly fewer J she emissions than traditional alternatives.

Speaker Change: In March we showcased the automotive uses approximately at the world's leading international composite exhibition in Paris.

Darren Woods: We're progressing projects in Texas with startups planned in 2025 that will significantly expand a production of Proxima. We see the total addressable market for Proxima at 5 million tons and $30 billion by 2030, with demand growing faster than GDP and returns above 15%. That's an exciting new business opportunity with significant profit potential, where we have unique and hard-to-replicate advantages consistent with our strategy and core capabilities. We also see a sizeable opportunity in carbon materials, transforming the molecular structure of low-value carbon-rich feeds from our refining processes and the high-value products for a range of applications. We're targeting market segments with margins of several thousand dollars per ton and growth rates outpacing GDP.

Darren Woods: We're progressing projects in Texas with startups planned in 2025 that will significantly expand our production at Proxima. We see the total addressable market for Proxima at 5 million tons and $30 billion by 2030, with demand growing faster than GDP and returns above 15%. That's an exciting new business opportunity with significant profit potential, but we have unique and hard to replicate advantages consistent with our strategy and core capabilities. We also see a sizable opportunity in carbon materials, transforming the molecular structure of low-value, carbon-rich feeds from our refining processes into high-value products for a range of applications. We're targeting market segments with margins of several thousand dollars per ton and growth rates outpacing GDP. These include carbon fiber, polymer additives, and battery materials.

Speaker Change: We're progressing projects in Texas with startups planned in 2025 that will significantly expand our production of approximately.

Speaker Change: We see the total addressable market for approximately at 5 million tonnes and $30 billion by 2030.

Speaker Change: With demand growing faster than GDP and returns above 15%.

That's an exciting new business opportunity.

Speaker Change: With significant profit potential.

Speaker Change: We have unique and hard to replicate advantages consistent with our strategy and core capabilities.

Speaker Change: We also see a sizable opportunity in carbon materials.

Speaker Change: Transforming the molecular structure of low value carbon rich feeds from our refining processes and the high value products for a range of applications.

Speaker Change: We're targeting market segments with margins of several thousand dollars per ton and growth rates outpacing GDP.

Darren Woods: These include carbon fiber, polymer additives, and battery materials. Our competitive advantages of scale, technology, and integration, combined with our North American manufacturing footprint, provides a foundation for building these compelling new high-margin businesses. I've challenged a product solutions team to lean into those opportunities and develop plans to accelerate the growth of both of these profitable new businesses. I hope we can ramp up investments to make the meaningful part of our overall portfolio sooner, which will help further diversify earnings and significantly grow shareholder value for decades to come. Exxon Mobil has a long history of successfully establishing new high-value used products for established and growing markets.

Speaker Change: These include carbon fiber polymer additives and battery materials.

Darren Woods: Our competitive advantages of scale, technology, and integration, combined with our North American manufacturing footprint, provide a foundation for building these compelling new high-margin businesses. I've challenged the product solutions team to lean into those opportunities and develop plans to accelerate the growth of both of these profitable new businesses. I hope we can ramp up investments to make them a meaningful part of our overall portfolio sooner, which will help further diversify earnings and significantly grow shareholder value for decades to come.

Speaker Change: Our competitive advantages of scale technology and integration.

Speaker Change: Combined with our North American manufacturing footprint provides a foundation.

Speaker Change: Foundation for building these compelling new high margin businesses.

Speaker Change: I've challenged the product solutions team to lean into those opportunities and develop plans to accelerate the growth of both of these profitable new businesses.

Speaker Change: I hope, we can ramp up investments to make them a meaningful part of our overall portfolio sooner.

Speaker Change: Help further diversify earnings and significantly grow shareholder value for decades to come.

Darren Woods: Exxon Mobil has a long history of successfully establishing new, high-value-in-use products for established and growing markets. Consider Vistamax, which we launched to enhance the performance of everything from auto parts and construction materials to personal care products and packaging. We've grown our Vista Max Performance Polymer from 5 grades to 20, and total annual production capacity is 700,000 metric tons per annum, with highly attractive returns and significantly more growth potential, of course, consistent with the track record we've established over the last seven years. The hurdle for investing will be high. Any investment will have to generate competitive returns, possess clear competitive advantages, and be resilient to the bottom of any commodity cycle.

Speaker Change: Exxonmobil has a long history of successfully establishing new high value end use products for established and growing markets.

Darren Woods: Consider Vista Max, which we launched to enhance the performance of everything from auto parts and construction materials to personal care products and packaging. We've grown our Vista Max performance polymer from five grades to 20, and total annual production capacity is 700,000 metric tons per annum. We've highly attracted returns and significantly more growth potential. Of course, consistent with the track record we've established over the last seven years, the hurdle for investing will be high. Any investment will have to generate competitive returns, possess clear competitive advantages, and be resilient to the bottom of any commodity cycle. As we've demonstrated, our capital allocation decisions have generated robust earnings, cash flow, and shareholder returns.

Speaker Change: Consider Vista, Max, which we launched to enhance the performance of everything from auto parts and construction materials to personal care products and packaging.

Speaker Change: We've grown our Vista Max performance polymer from five grades to 'twenty and total annual production capacity of 700000 metric tons per annum.

Speaker Change: With highly attractive returns.

Speaker Change: And significantly more growth potential.

Speaker Change: Of course, consistent with the track record we've established over the last seven years to.

Speaker Change: The hurdle for investing will be high.

Speaker Change: Any investment will have to generate competitive returns.

Speaker Change: Possessed clear competitive advantages can.

Speaker Change: Can be resilient to the bottom of any commodity cycle.

Darren Woods: As we've demonstrated, our capital allocation decisions have generated robust earnings, cash flow, and shareholder returns. I look forward to sharing more about our growth opportunities in December. In closing, we have a lot to feel good about. Our performance is strong. Our merger with Pioneer is already creating tremendous value, with more to come. And we continue to develop products and build businesses that will enable us to grow profitably, far into the future, across a wide range of scenarios, including a rapid energy transition. With that, we'd be happy to take your questions.

Speaker Change: As we've demonstrated.

Speaker Change: Our capital allocation decisions have generated robust earnings cash flow and shareholder returns.

Darren Woods: I look forward to sharing more about our growth opportunities in December.

Speaker Change: I look forward to sharing more about our growth opportunities in December.

Darren Woods: In closing, we have a lot to feel good about. Our performance is strong. Our merger with Pioneer is already creating tremendous value, with more to come. And we continue to develop products and build businesses that will enable us to grow profitably far into the future across a wide range of scenarios, including a rapid energy transition.

Speaker Change: In closing we have a lot to feel good about.

Speaker Change: Our performance is strong.

Speaker Change: Our merger with pioneer is already creating tremendous value with more to come.

Speaker Change: And we continue to develop products and build businesses.

Speaker Change: Will enable us to grow profitably far.

Speaker Change: Far into the future across a wide range of scenarios, including a rapid energy transition.

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

Speaker Change: With that we'd be happy to take your questions.

Operator: Thank you, Darren.

Darren Woods: Thank you Darren.

Operator: Now, let's move to our Q&A session. As a reminder, we asked each participant to keep it to just one question. And with that, operator will ask you to please open the line for our first question. Thank you. That question and the answer session will be conducted electronically.

Operator: Now we move to our Q&A session. As a reminder, we ask each participant to keep it to just one question. And with that, operator, we'll ask you to please open the line for our first question. Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star key followed by the digit one on your telephone. The first question comes from Neil Mehta.

Speaker Change: Now, let's move to our Q&A session.

Speaker Change: As a reminder, we ask each participant to keep it to just one question and with that operator, we will ask you to please open the line for our first question.

Operator: Thank you. The question and answer session will be conducted electronically. If you would like to ask a question, please do so by pressing the star key followed by the digit one on your telephone. The first question comes from Neil Mehta of Goldman Sachs. Your line is open, please go ahead.

Speaker Change: Thank you that question and answer session will be conducted electronically. If you would like to ask a question. Please do so by pressing the star key followed by the digit one on your telephone.

Operator: If you would like to ask a question, please do so by pressing the star key followed by the digit one on your telephone.

Neil Mehta: The first question comes from Neil Metta, Goldman Sachs. Your line is open. Please go ahead.

Speaker Change: The first question comes from Neil Mehta of Goldman Sachs. Your line is open. Please go ahead.

Neil Mehta: Good morning, Darren and team. And thanks for the update. I want to build on your comments on Pioneer. Now that it's under your umbrella, can you build on some of your comments around?

Neil Mehta: Good morning, Darren and team and thanks for the update I want to build on your comments on on pioneer now that it's under your umbrella can you build on on some of your comments around one how is the asset performing from a volume and type curve perspective relative to.

Neil Mehta: One, how is the asset performing from a volume and type curve perspective relative to expectations? And two, you alluded to synergies tracking ahead of expectations. Can you help delineate what those buckets without performance are?

Speaker Change: And two you alluded to synergies tracking ahead of expectations can you help delineate what those buckets of outperformance there.

Darren Woods: Yeah. Good morning, Neil. I'll start with a few comments, and then let Kathy kind of add on top of that.

Darren Woods: Yeah, good morning, Neil. I'll start with a few comments and then let Kathy kind of add on top of that. I would say it is early days yet, two months in, but the work of the team prior to the change in control and then what we've seen since then is extremely encouraging. As we've stated, the Pioneer assets basically delivered a record performance in the second quarter. And if you think about the context of doing that with all the change that was going on, with respect to the merger, I think it is a real testament to the quality of the people there and the work that they've been doing. So I'd say the vectors are all pointing up.

Yeah. Good morning, Yeah, I'll start with a few comments and then let Cathy.

Speaker Change: Kind of add on top of that I would say our early days yet two months in but the work of the team prior to the change in control and then what we've seen since then is extremely encouraged encouraging as we've stated.

Darren Woods: I would say early days yet, two months in, but the work of the team prior to the change in control and then what we've seen since then is extremely encouraging. As we stated, the pioneer assets basically delivered a record performance in the second quarter. And if you think about the context of doing that with all the change that was going on with respect to the merger, I think a real testament to the quality of the people there and the work that they've been doing. So I'd say vectors are all pointing up.

Speaker Change: Ryanair assets basically delivered a record performance in the second quarter and if you think about the context of doing that with all the change that was going on with respect to the merger I think a real testament to the quality of the people there and the work that they've been doing so I would say vectors are all pointing up I think.

Darren Woods: I think it was probably better than what we had anticipated. But I would also say it's early in the process. The teams today are working very well together, which has led to, frankly, identifying a lot more value opportunities than, frankly, I think either of us could see when we were on opposite sides of the fence. And now that we're working together, we see essentially a lot of opportunities to transfer the best practices of Exxon Mobil into Pioneer, and likewise, to transfer a number of best practices from Pioneer into the Exxon Mobil base, which when you think about our size, has some tremendous leverage associated with it.

Darren Woods: I think probably better than what we had anticipated, but I would also say it's early in the process that teams today are working very well together, which has led to, frankly, identifying a lot more value opportunities than, frankly, I think either of us could see when we were on opposite sides of the fence, and now that we're together working, we see essentially a lot of opportunities to transfer the best practices of ExxonMobil into Pioneer. And likewise, to transfer a number of best practices from Pioneer into the ExxonMobil base, which when you think about our size has some tremendous leverage associated with it.

Speaker Change: Probably better than what we had anticipated, but I would also say it's early in the process. The teams today are working very well together, which has led to a frankly identifying a lot more.

Value opportunities and frankly, I think either of us could.

See when we were on opposite sides of the fence and now that we're together working we see.

Speaker Change: Essentially a lot of opportunities to transfer the best practices of Exxonmobil and to pioneer and likewise to transfer a number of best practices from.

Speaker Change: Pioneer into the Exxonmobil base, which when you think about our size has some tremendous leverage associated with it and so that's all being worked through in detail as you know when we.

Darren Woods: And so that's all being worked through in detail. As you know, when we commit to some of our objectives, they're based on some very detailed plans that sit behind them. The organization today is working on those plans, but we already see significant upside potential, not only in the magnitude, but in the pace at which we'll be able to deliver them. So I think a really positive story there. And I'll let Kathy maybe add some additional details. OK, Kathy?

Darren Woods: And so that's all being worked through in detail. As you know, when we commit to some of our objectives, they are based on some very detailed plans that sit behind them. The organization today is working those plans, but we already see significant upside potential not only in the magnitude, but in the pace of which we'll be able to deliver them.

Kathy Michael: Commit to some of our objectives are based by some very detailed plans that sit behind them. The organization today is working those plans, but we already see significant upside potential not only in the magnitude, but in the pace of which will be able to deliver them. So I think a really positive story, there and I'll, let Kathy maybe add some additional details.

Kathy Michaels: So I think a really positive story there, not like Kathy. Maybe add some additional details, Kathy. Sure, I think one of the things we've been really pleased by is the number of learnings that we've already had from Pioneer. And so not only will we bring our technology and cube development to them, but they're bringing a bunch of learnings to us. So we're already utilizing their Remote Logistics Operations Center in our own drilling and completions operations in order to improve supply chain. They've done some things on the procurement side, I'd say, that we think can help us to kind of leverage up our expertise.

Kathy Michaels: Sure, I think one of the things we've been really pleased with is the number of learnings that we've already had from Pioneer. And so not only will we bring, you know, our technology and cube development to them, but they're bringing a bunch of learnings to us. So we're already utilizing their remote logistics Operations Center in our own drilling and completions operations in order to improve the supply chain. They've done some things on the procurement side, I'd say, you know, that we think can help us to kind of leverage our expertise. They've been really good at blocking up their acreage over the years.

Kathy Michael: Kathy sure I think one of the things we've been really pleased.

Kathy Michael: The number of learnings that we've already had from pioneer and so not only will we bring.

Kathy Michael: Technology and cube development.

Kathy Michael: They are bringing a bunch of learnings to us. So we're already utilizing their remote logistics operation center in our own drilling and completions operations in order to improve supply chain they've done some things on the procurement side.

Kathy Michael: You know that that we think can help us to kind of leverage up our expertise.

Kathy Michaels: They've been really good over the years of blocking up their acreage. So we think that's another thing that ultimately we can benefit from. And then, as I think everyone knows, they've got a quite large water structure in the middle and basin, and we'll be looking to also leverage that. So we've been really pleased with what they bring to the table, and we're off to a really good start as we look at building and integration development plan with them that fully utilizes the technology that we bring to the table.

Kathy Michael: <unk> been really good over the years of blocking up our acreage.

Kathy Michaels: You know, so we think that's another thing that, ultimately, we can benefit from. And then, as I think everyone knows, they've got a, you know, quite large water infrastructure in the Midland Basin, and we'll be looking to also leverage that. So we've been really pleased with what they bring to the table. And we're off to a really good start, you know, as we look at building an integration development plan with them that fully utilizes the technology that we bring to the table.

Kathy Michael: So we think that's another thing that ultimately we can benefit from and then.

Kathy Michael: I think everyone knows they've got a.

Kathy Michael: Quite large water infrastructure.

Kathy Michael: A Midland basin, and we'll be looking to also leverage that so we've been really pleased with what they bring to the table and we're off to a really good start.

Kathy Michael: Look at building an integration development plan with them that fully utilizes the technology that we bring to the table and so we're going to have a corporate plan update in December we're going to do a spotlight on the upstream and well update where we're at with our synergies and how we're looking forward at that time.

Kathy Michaels: And so we're going to have a corporate plan update in December. We're going to do a spotlight on the upstream, and we'll update where we're at with the synergies and how we're looking forward at that time. Yeah, I just, I guess, cap it off, Neil, with what we said at the time.

Kathy Michaels: And so we're going to have a corporate plan update.

Darren Woods: In December, we're going to do a spotlight on the upstream and world update where we're at with the synergies and how we're looking forward at the. Yeah, I guess cap it off, Neil, with, you know, we said at the time we announced the acquisition that we were going to produce more barrels at a lower cost and a more environmentally friendly way. That continues to be the case. That's obviously good for our company. But more importantly, as we said at the time, we continue to emphasize it's good for the US. It's good for the US economy.

Darren Woods: Yeah, I guess I'll cap it off, Neil, by saying at the time we announced the acquisition that we were going to produce more barrels at a lower cost and in a more environmentally friendly way. And that continues to be the case.

I guess cap it off Neil with you know, we said at the time, we announced the.

Neil Mehta: The acquisition that we were going to produce more barrels at a lower cost and in a more environment friendly environmentally friendly way that continues to be the case, that's obviously.

Speaker Change: Good for our company, but more importantly, as we said at the time that we would continue to emphasize its good for the U S. It's good for the U S economy.

Darren Woods: That's obviously good for our company. But more importantly, as we said at the time, and we continue to emphasize, it's good for the U.S. It's good for the U.S. economy. It's good for the people living in the U.S. It's good for U.S. businesses. And, critically, it's good for U.S. energy security.

Darren Woods: It's good for the people living in the US. It's good for U.S. businesses. And critically, it's good for you. US Energy security. So I think this is, as I said at the time, I'm going to be a win-win proposition for all.

Speaker Change: Good for the people living in the U S is good for U S businesses and critically it's good for U S Energy security. So I think this is as I said at the time going to be a win win proposition for for all.

Unknown Speaker: So I think this is, as I said at the time, going to be a win-win proposition for all. All right. Thank you, Darren. Thank you, Kathy. The next question is from Betty Jang with Barclays. Darren, Kathy, good morning. Since I was...

Darren Woods: Alright, thank you, Darren. Thank you, Kathy.

Speaker Change: Alright, Thank you Darren Thank you Kevin.

Betty Jane: The next question is from Betty Jane with Barkley.

Unknown Speaker: The next question is from Betty Jang with Barclays. Darren, Kathy, good morning.

Speaker Change: The next question is from Betty Jang with Barclays.

Betty Jane: Darren, Kathy, Good morning. Since we just talked about Permiel, we'll hit on the other region that's also hitting record production. So Guyanne of Values continued to exceed expectations, and the FPSO just continued to produce well above capacity. We'd love to just get an understanding of, do you think this type of performance is likely to continue and is that translatable for what you would expect for the future projects that you have to come?

Darrin: Darrin Kathy good morning.

Speaker Change: Since I just talked about Perm yellow head on the other region. That's also hitting record production.

Speaker Change: So Glenn if volumes continue to exceed expectations and be the Fps. So just continue to produce well above capacity would love to just get an understanding of do you think this type of performance is.

Glenn: Likely to continue and does that translate a bull for where you would expect for the future projects, that's yet to come.

Darren Woods: Sure, I'll take that, Betty. Thank you and good morning. Good to hear from you again. I would say, you know, what you're seeing is the collective effort of our organization focusing on what is a very high-value development and making sure that we are taking advantage of all the opportunities we can find to safely grow production. And, as you commented, you know, we're seeing some significant improvements with production rates well above what we had based the investment decision on. And that's continuing across the whole three of them. We try to take that into account as we develop the next.

Darren Woods: Sure, I'll take that, Betty. Thank you and good morning. Good to hear from you again. I would say, you know, what you're seeing is the collective effort of our organization focusing on what is a very high-value development and making sure that we are taking advantage of all the opportunities we can find to safely grow production. And as you commented, you know, we're seeing some significant improvements with production rates well above what we had based the investment decision on.

Glenn: Sure I'll I'll I'll take that Betty Thank you and good morning, good to hear from you again I would say you know what youre seeing as you are.

Darren Woods: And that's continuing across all three of them. We try to take that into account as we develop the next one. And so, in theory, you would think we build that into the base and don't continue to see that. But frankly, our experience is telling us otherwise, which is that this organization, complemented by the work that we're doing with our technology organization, our global operations, and sustainability organization, every element of the organization that we have now created and functionalized is very focused on maximizing values.

Speaker Change: The collective effort of our organization focusing on what is a very high value.

Speaker Change: Development and making sure that we are.

Speaker Change: Taking advantage of all the opportunities we can find to safely grow production and as you commented you know we're seeing some significant <unk>.

Speaker Change: Improvements with production rates well above what we had based the investment decision on and that's continuing across the all three of them.

Speaker Change: We try to take that into account as we develop the next and so in theory, you would think we build that into the base and.

Darren Woods: And so, in theory, you would think we build that into the base and don't continue to see that. But frankly, our experience is telling us otherwise, which is this organization, complemented by the work that we're doing with our technology organization, our global operations and sustainability organization. Every element of the organization that we have now created and functionalized is very focused on maximizing values. And so, with these new organizations and that focus, they continue to find additional opportunities. So I would bet that we'll continue to see how performance versus the basis on which we have ID, but I would also tell you that every development is unique unto itself.

Speaker Change: Don't don't continue to see that but frankly, our experience is telling us otherwise which is disorganization.

Speaker Change: Complemented by the work that we're doing with our technology organization, our global operations and sustainability organization every element of the organization that we have now created and function wise is very focused on maximizing value and so with these new organizations and that focus they continue to find additional opportunity.

Darren Woods: And so, with these new organizations and that focus, they continue to find additional opportunities. So, I would bet that we will continue to see how performance versus the basis on which we FID, but I would also tell you that every development is unique unto itself. And obviously, we got to get it up and running and then let the teams get after it and find opportunities to safely increase its capacity. But, I would tell you, I would bet on our people to find that. We've got a long history of doing it, and it's clearly demonstrating itself with this unique and valuable opportunity here.

Speaker Change: So.

Speaker Change: I would bet.

Speaker Change: That will continue to see outperformance versus the basis on which we have but I would also tell you that every development is unique unto itself and obviously, we got to get it up and running and then let the teams get after it and.

Darren Woods: And obviously we got to get it up and running, and then let the teams get after it and find the opportunities to safely increase its capacity. But I would just tell you, I would bet on our people to find that we've got a long history of doing it. And it's clearly demonstrating itself with this unique and valuable opportunity here.

Speaker Change: Find the opportunities to safely increase its capacity but.

Speaker Change: I would just tell you I would bet on our people to find that we've got a long history of doing it and it's clearly demonstrating itself with this unique and valuable opportunity here.

Betty Jane: Thank you. Thank you, Betty.

Speaker Change: Thank you.

Betty Jang: Thank you Betty.

Doug Ligat: The next question comes from Doug Ligat with both research. Hey, good morning. Thanks for taking my questions. Good morning, Darren and Kathy. Morning. Yeah.

Unknown Speaker: The next question comes from Douglas Leggate with Wolf Research.

Douglas <unk>: The next question comes from Douglas <unk> with Wolfe Research.

Unknown Speaker: Hey, good morning. Thanks for taking my questions. Good morning, Darren and Kathy. Good morning. I'm still getting used to the new moniker, Darren, but thanks for having me on.

Hey, good morning, Thanks for taking my questions good morning, Darren and Kathy.

Kathy Michael: Good morning.

Doug Ligat: I'm still getting used to the new monitor, Darren, but thanks for having me on. So I wonder if I could ask a question about portfolio now that you've got Pioneer in the door. You've got a lot of things that are perhaps you could discourage, is maybe non-core. A lot of pales in the portfolio. And I'm just curious; we haven't really heard much on the asset disposal front in a while. And I'm curious if now that you've got two very significant concentrated assets to some extent the permanent Guyana. What it means for the portfolio in terms of high grading opportunities going forward.

Douglas <unk>: Yeah.

Douglas <unk>: I'm still getting used to the new moniker Darren but thanks for having me on.

Unknown Speaker: So I wonder if I could ask a question about your portfolio now that you've got Pioneer in the door. You've got a lot of things that perhaps you could characterize as maybe non-core, a lot of tails in the portfolio. And I'm just curious, we haven't really heard much on the asset disposal front in a while, and I'm curious if now that you've got two very significant concentrated assets to a certain extent, the Permian and Guyana, what that means for the portfolio in terms of high-grading opportunities going forward.

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

Speaker Change: You've kind of you've got a lot of things that are perhaps you could characterize as maybe non core a lot of appeals in the portfolio.

Speaker Change: I'm just curious we haven't really heard much on the asset disposal front in a while and I'm curious if now that you got.

Speaker Change: Two very significant concentrated access to some extent, the Permian and Guyana, what it means for the portfolio in terms of high grading opportunities going forward.

Doug Ligat: And I'm just curious; we haven't really heard much on the asset disposal front in a while.

Darren Woods: Yeah, I'll start with that and then I'll let Kathy add anything she wants to, but I would say... Actually, we've been fairly aggressively going after the tail. You remember, I think back in 2019, we had announced that we were going to divest about $15 billion. But over time, of course, we got into the pandemic.

Darren Woods: I'll start with that, and then I'll let Kathy add anything she wants to. But I would say, actually, we've been fairly aggressively going after the tell. You remember, I think back in 2019, we had announced that we were going to divest about 15 billion dollars over time. Of course, we got into the pandemic, and we say we're not going to, you know, this is not a forced march. We're going to basically divest when the market conditions ensure that we can realize the value that we think the assets that we are marketing can be realized. And frankly, that's what we've been doing. So as you look at where we're at to date, second quarter this year, I think we've basically gotten to the 15 billion dollars in the upstream. And then if you look at what we've been doing in the downstream, there's another few billion dollars that we've added on top of that. So frankly, from a cleaning up the tail standpoint, we've made significant progress. Obviously, there's a few more things that we're working on, and we'll continue to assess every one of the assets in the portfolio, make sure that they are competitively advantaged. And frankly, as we look at new investments, we force those investments to compete on an industry-wide basis and make sure that their advantage versus the industry and therefore can be supply product at low cost to supply. We also do that with all of our existing assets, and if they're not competitively positioned on an industry supply curve, then the organization has two options: either we come up with an advantaged investment that makes them more competitive and moves them to the left of the cost on the cost of supply curve, or we look to divest. And that process has been ongoing across all of our businesses. And then, obviously, the timing of when we then take action is a function of realizing the value that we think those investments should bring. And we're patient; we're not going to rush that process. And I would just say, staying after it, being very steady, waiting for the market to be where it needs to be in order for us to be evaluated has paid off significantly. And basically, we're delivering what we said we were going to do, and we'll continue to look at it. But I wouldn't, I don't see any big step changes here in the medium term.

Speaker Change: Yeah, I'll I'll start with that and then I'll, let Kathy add anything she wants to but I would say.

Speaker Change: Actually we've been fairly aggressively going after the tail you remember I think back in 2019, we had announced.

Speaker Change: That we were going to divest about $15 billion over time of course, we got into the pandemic and we said we're not going to you know this is not a forced march we're going to basically divest when the market conditions and ensure that we can realize the value that we think the assets that we are marketing can be realized.

Darren Woods: And we said, we're not going to, you know, this is not a forced march; we're going to basically divest when the market conditions ensure that we can realize the value that we think the assets that we are marketing can be realized. And frankly, that's what we've been doing. So as you look at where we're at today, in the second quarter this year, I think we've basically gotten to $15 billion in the

Speaker Change: And frankly, that's what we've been doing so as you look at where we're at to date second quarter. This year I think we've basically gotten to the $15 billion in the upstream and then if you look at what we've been doing in the.

Darren Woods: And then if you look at what we've been doing, and the downstream, there's another few billion dollars that we've added on top of that. So, frankly, from a cleaning up the tail standpoint, we've made significant progress.

Speaker Change: The downstream there's another few billion dollars that we've added on top of that so frankly from a cleaning up the tail standpoint, we've made significant progress.

Speaker Change: Obviously, there's a few more things that we're working on and will continue to assess every one of the assets in the portfolio and make sure that.

Darren Woods: Obviously, there are a few more things that we're working on, and we'll continue to assess every one of the assets in the portfolio to make sure that they are competitively advantaged. And, you know, frankly, As we look at new investments, we force those investments to compete on an industry-wide basis and make sure that their advantage versus the industry and therefore can be a supply product at a low cost to supply. We also do that with all of our existing assets.

Speaker Change: They are a competitively advantaged.

Speaker Change: Frankly.

Speaker Change: As we look at new investments we force.

Speaker Change: There's investments to compete on an industry wide basis, and make sure that their advantage versus the industry and therefore can be.

Speaker Change: Supply product at low cost to supply, we also do that with all of our existing assets.

Darren Woods: And if they're not competitively positioned on an industry supply curve, then the organization has two options. Either we come up with an advantaged investment that makes them more competitive and moves them to the left on the cost of supply curve, or we look to divest. And that process has been ongoing across all of our businesses. And then, obviously, the timing of when we then take action is a function of realizing the value that we think those divestments should bring.

Speaker Change: And if theyre not competitively positioned on an industry supply curve.

Speaker Change: Then the organization has two options either we come up with an advantaged investment that makes them more.

Speaker Change: Competitive and moves them to the left of the cost on a cost of supply curve or we look to divest and that that process has been ongoing across all of our businesses and then obviously the timing of when we then take action as a function of.

Darren Woods: And we're patient. We're not going to rush that process. I would just say, you know, staying after it, being very steady, waiting for the market to meet, you know, to be where it needs to be in order for us to reevaluate has paid off significantly. And basically, we're delivering on what we said we were going to do, and we'll continue to look at it. But I wouldn't, I don't see any big step changes here in the medium term.

Speaker Change: Realizing the value that we think those those divestments should bring and we're patient we're not going to rush that process.

Speaker Change: I would just say that you are staying after it being very steady waiting for the market to meet.

Speaker Change: To be where it needs to be in order for us to reevaluate has paid off significantly and basically we are delivering on what we said we were going to do and we'll continue to look at it but I wouldn't I don't see any big step changes here in the.

Speaker Change: In the medium term.

Kathy Michaels: And the only other thing I'd note, Neil, is, you know, you can see in our cash flow bridges every quarter. Doug I'm sorry, Doug. I'm sorry. But you can see in our cash flow bridges, you know, we're pretty consistently every quarter bringing in more proceeds from the divestments that are occurring. In the first half of the year, that was $1.6 billion. And that was a lot of earnings coming in from divestments, only partially offset by the one-off costs associated with Pioneer.

Kathy Michaels: And the only other thing I'd note now is you know you can see in our cash flow bridges. Doug, Doug. Sorry, I'm sorry, but you can see in our cash flow bridges, you know we're pretty consistently, every quarter, bringing in more proceeds from the divestments that are occurring. You know, in the first half of the year, that was $1.6 billion, and then I would just know we had a lot of activity and upstream. And so that generated some positive earnings for us in the quarter, and so if you look at my prepared remarks, you know that we published earlier this morning, I talk about sort of 380 million in the upstream being kind of these other one-off items, and that was a lot of earnings coming in from divestments, only partially offset by the one-off cost associated with Pioneer.

Speaker Change: And the only other thing I'd note now.

Speaker Change: You can see in our cash flow.

Speaker Change: Doug.

Doug: [laughter] yeah, sorry.

Speaker Change: But you can see in our cash flow bridges, you know, we're pretty consistently every quarter of bringing in more proceeds from the divestments that are occurring in the first half of the year that was $1.6 billion and then I would just note. While we had a lot of activity in upstream and so that generated some positive earnings for us.

In the quarter and so if you look at my prepared remarks.

Speaker Change: That we published earlier this morning, I talk about sort of $380 million in the upstream.

Speaker Change: And tied to these other one off items and that was a lot of earnings coming in from divestments, only partially offset by the one off costs associated with pioneer.

Kathy Michaels: Terrific. It would have been worse if you'd called me Jennifer, Kathy, but thanks so much. I appreciate it.

Doug Ligat: So I think it would have been worse if you called me Jennifer Kathy, but thanks so much. I appreciate that. Sorry about that, Doug.

Kathy Michael: Terrific. It would have been worse, if he called me Jennifer Kathy, but thanks, so much I appreciate it.

Unknown Speaker: Yeah, good. I appreciate that. Sorry about that, Doug.

Speaker Change: Yeah. Good appreciate that sorry about that.

Unknown Speaker: Doug, congratulations on the new shop and the new platform. And to you, Jim. Thanks so much.

Operator: Doug, congratulations on the new shop, new platform. I'm Steve Eugene. Thanks so much.

Speaker Change: Doug Congratulations on the new on the new shop to new platform.

Unknown Speaker: And to you, Jim. Thanks so much.

Jim Chapman: Jim Thanks, so much.

Devin Mcdermott: The next question is from Devin McDermott, with Morgan Stanley. Hey, good morning. It's taken my question. So, Darren, you had a lot of good updates, and you prepared remarks on some of the low carbon initiatives. There's been a lot of progress there. It seems over the past few months and quarters, which is great to see. Now, I think back to the corporate plan you laid out late last year. This is a growing wedge of your overall capital spending in each of the next few years. So I was wondering, if you're some of the investment, more about what minds you're looking to actually allocate more capital to these areas.

Unknown Speaker: The next question is from Devin McDermott with Morgan Stanley.

Jim Chapman: The next question is from Devin Mcdermott with Morgan Stanley.

Unknown Speaker: Hey, good morning. It's taking my question.

Devin Mcdermott: Hey, good morning, it's taking my question.

Darren Woods: So Darren, you gave a lot of good updates and your prepared remarks on some of the low carbon initiatives. There's been a lot of progress there, it seems, over the past few months and quarters, which is great to see. Now, I think back to the corporate plan you laid out late last year; this is a growing wedge of your overall capital spending in each of the next few years. So I was wondering, for some of the investment opportunities, Transcription by Transcription Outsourcing, LLC. Carbon High Quality or move forward with carbon materials or build the scale you talked about in lithium production? Is it more commercialization and uptake, technology development, regulatory clarity, or something else?

Devin Mcdermott: So Darren you had a lot of good updates in your prepared remarks on some of the low carbon initiatives and there's been a lot of progress there. It seems over the past few months and quarters, which is great to see.

Speaker Change: Back to the corporate plan you laid out late last year. This is a growing wedge of your overall capital spending in each of the next few years. So I was wondering.

Speaker Change: For some of the investment.

Speaker Change: Okay more about what youre focused on actually allocate more capital to these areas. So what's needed to make final investment decision on both parts.

Devin Mcdermott: So what needed to make final investment decision on the carbon high quality or move forward with carbon materials or build a scale. You talked about in lithium production. Is it more commercial? Should it all take technology development, regulatory clarity, something else? Sure. Yeah, you broke up just a little bit on that, Devin, but I think I got to just your question. If I don't hit the mark. Then please steer me in a slightly different direction. Sorry about that.

Bill: Hi, Bill.

Bill: Your move toward carbon materials or build the scale you talked about in lithium production is it more commercialization luftig technology development regulatory clarity something else.

Darren Woods: Sure. Yeah, you broke up just a little bit on that, Devin, but I think I got the gist of your question. If I don't hit the mark, then please steer me in a slightly different direction. Sorry about that.

Bill: Sure. Yeah, you broke up just a little bit on that Devin, but I think I got digestive. Your question if I don't hit the market in please.

Devin Mcdermott: Steer me in a slightly different direction, sorry about that thank.

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

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

Speaker Change: Thank you. Your question around you know, what's what's required to kind of continue to move along and our investments in the low carbon solution across the portfolio of products that we've been talking about.

Speaker Change: Yeah, I would just say fundamentally.

Speaker Change: We expect and the low carbon businesses and in fact, some of these new products that while they contribute to a lower carbon future. They also bring significant value and use in todays application. They have to compete in the portfolio they have to be.

Speaker Change: <unk> advantaged versus what's out there today and they have to basically generate good returns across the commodity cycles and so the fundamental philosophy that we've been applying in the base business also is required in these.

Darren Woods: And so the fundamental philosophy that we've been applying in the base business also is required in the new businesses that we're trying to generate. So that's foundational, what each of – and, you know, Dan Hammond in particular, but then the stuff that's coming out of the product solutions organization has also got to meet that initial hurdle. And then, as you look across each of them, the hurdles to clear to deliver on that expectation, very little bit. I would say in Dan's business with the carbon capture and storage, you know, he and his team are building a brand new business.

Darren Woods: And so the fundamental philosophy that we've been applying in the base business also is required in these new businesses that we're trying to generate. So that's a foundational what each of and Dan Hammond in particular, but then the stuff that's coming out of the product solutions organization has also got to meet that initial hurdle. And then, as you look across each of them, the hurdles to clear to deliver on that expectation very little bit. I would say in Dan's business with the carbon capture and storage. You know, he's in his team are building a brand new business.

Dan Ammann: The new businesses that we're trying to generate so that's foundational what each of Dan Ammann and particular, but then the stuff that's coming out of the product solutions organization has also got to meet.

Dan Ammann: That initial hurdle and then as you look across each of them.

Dan Ammann: The hurdles to clear to deliver on that expectation.

Dan Ammann: Little bit I would say in Dan's business with the carbon capture and storage.

Speaker Change: Yeah, he's he's and his team are building a brand new business and so there are very few I think examples of where the company is not only developing the technology and the infrastructure and logistics system, but also developing.

Darren Woods: And so there are very few, I think, examples of where the company is not only developing the technology in the infrastructure and logistics system but also developing the capacity to supply while developing the demand and developing the market, in general, and advocating for, you know, what I would say are the initial policies needed to get things kicked off.

Darren Woods: And so there are very few, I think, examples of where the company is not only developing the technology and the infrastructure logistics system, but also developing the capacity to supply while developing the demand and developing the market in general. And advocating on, you know, what I would say are the initial policies needed to get things kick started. So there are a lot of moving parts. I would say the broader industry and business community; I frankly haven't gotten far enough along this to truly appreciate just how complicated it is. But I would say leveraging the capacity and capability that we've built over the decades doing this in other parts of our company, particularly in the upstream, that we're leveraging those capabilities and making really good progress there.

Speaker Change: The capacity to supply, while developing the demand and developing the market in general and advocating on you know what I would say are the the initial policies needed to get things kick started so there are a lot of moving parts I would say.

Darren Woods: So there are a lot of moving parts, I would say, the broader industry and business community. I, frankly, haven't gotten far enough along this to truly appreciate just how complicated it is. But I would say leveraging the capacity and capability that we've built over the decades doing this and other parts of our company, particularly in the upstream, we're leveraging those capabilities and making really good progress there. On the Blue Hydrogen Project, you know, as we've worked through the engineering and we've got a really good line of sight to what that project can deliver, obviously, a critical element of that is getting the IRA legislation translated into final regulations, and that's a process that's been ongoing.

Speaker Change: The broader.

Industry and business community I, frankly haven't gotten far enough along in this to truly appreciate just how complicated it is but I would say leveraging the capacity and capability that we've built over the decades doing this in other parts of our company, particularly in the upstream that we're leveraging those capabilities.

Speaker Change: These and making really good progress there on.

Darren Woods: On the blue hydrogen project, you know, as we've worked through the engineering and we've got a really good line of sight to what that project can deliver. Obviously, a critical element of that is getting the IRA legislation translated into final regulations. And that's a process that's been ongoing. We're optimistic that the regulations will reflect the intent of the legislation. And if it does, I think we'll have a very attractive project that we can then FID. here once those regulations are finalized. So I'm optimistic in that space, and as you may have seen, we've just added another 500,000 tons of carbon capture and storage into Dan's portfolio.

Speaker Change: On the Blue Hydrant Blue hydrogen project.

Speaker Change: As we've worked through the the engineering and we've got a really good line of sight to what that project can deliver obviously a critical element of that is.

Speaker Change: Getting the IRA legislation translated into final regulations, and that's a process. That's been ongoing we're optimistic that the regulations will reflect the intent of the legislation and if it does I think we'll have a very attractive project that we can then.

Darren Woods: We're optimistic that the regulations will reflect the intent of the legislation, and if it does, I think we'll have a very attractive project that we can then FID once finalized. So I'm optimistic in that space. And as you may have seen, we've just added Capture and Storage to Dan's portfolio, and there's a pipeline that the team continues to work on. So we see continued opportunity and growth with good returns on the carbon capture side of the equation. On the lithium, same thing.

Speaker Change: Here once the regulations are finalized so I'm I'm optimistic in that space and as you may have seen we've just added another 500000 tons of carbon.

Speaker Change: Capturing storage and to Dan's portfolio and there is a pipeline that the team continues to work. So we see continued opportunity and growth with good returns and the carbon capture side of the equation on the lithium same thing you know we're well lithium is an established market. It's it's fairly.

Darren Woods: And there's a pipeline that the team continues to work.

Darren Woods: So we see continued opportunity and growth with good returns in the carbon capture side of the equation. On the lithium same thing. While lithium is an established market, it's fairly small with respect to what its ultimate potential is. And of course, we're bringing on a new production method with some new technology. And so again, doing the work to understand what the investments required there are and to establish and ensure that we've got a real advantage versus what else is out there and what else needs to come on to meet the growing demand in lithium. But again, I feel good about that.

Darren Woods: You know, while lithium is an established market, it's fairly small with respect to what its ultimate potential is. And, of course, we're bringing in a new production method with some new technology. And so, again, doing the work to understand what the investments required there are and to establish and ensure that we've got a real advantage versus what else is out there, and what else needs to come on to meet the growing demand for lithium. But again, I feel good about that.

Speaker Change: Small with respect to what its ultimate potential is and of course, we're bringing on a new production method with some new technology and so again doing the work to understand what the investments required there are and to establish and ensure that we've got a real advantage versus.

Speaker Change:

Speaker Change: What else is out there and what else needs to come on to meet the growing demand in lithium, but again I feel good about that we've told the team don't you know, we're not looking to rush this through and get something.

Darren Woods: We've told the team, don't, you know, we're not looking to rush this through and get something, get money spent. We're looking to make sure that we build a very strong long-term foundation. So none of the work that we're doing in these new businesses is scheduled-driven. It's all about establishing successful long-term foundations.

Darren Woods: We've told the team, don't you know, we're not looking to rush this through and get something get money spent. We're looking to make sure that we build a very strong long-term foundation. So none of the work that we're doing in these new businesses is schedule driven.

Speaker Change: Get money spent where we're looking to make sure that we build a very strong long term foundation. So none of the work that we're doing in these new businesses as scheduled driven it's all about establishing a successful long term foundations and then maybe just briefly touch on.

Darren Woods: It's all about establishing a successful long-term foundation, and then maybe just briefly touch on Proxima and Carbon Ventures, which is, you know, that's a broader effort that we've been on for quite some time, which is to say, leverage our technical capabilities to transform molecules and apply that to markets that exist with unmet needs. And I think we're making really good progress with Proxima.

Darren Woods: And then maybe just briefly touch on Proxima and the carbon ventures, which, you know, that's a broader effort that we've been on for quite some time, which is to say leverage our technical capabilities to transform molecules and apply that to markets that exist with unmet needs. And I think we're making really good progress with Proxima. We've got some, I think, very high barriers to entry and competitive advantages there. And so I'm anxious to kind of prosecute that business and establish it as quickly as we can because we see real potential there. And saying with carbon ventures again, leveraging our ability to transform the molecule, shape the molecules, and get some structures that improve performance.

Speaker Change: Approximate in the carbon ventures, which.

Speaker Change: Our broader effort that we've.

Speaker Change: <unk> been on for quite some time, which is to say leverage our technical capabilities to transform molecules and apply that.

Speaker Change: Two markets that exist with unmet needs and I think we're making really good progress with proxima. We've got some I think very high barriers to entry and competitive advantages there and so I'm.

Darren Woods: We've got some, I think, very high barriers to entry and competitive advantages there. And so I'm anxious to kind of prosecute that business and establish it as quickly as we can because we see real potential there. And same with Carbon Ventures, again, leveraging our ability to transform the molecule shape the molecules and get some structures that improve performance. I think there's a big opportunity there. So, but that's, you know, I would say carbon ventures are still early in the technology cycle.

Speaker Change: Anxious to kind of prosecute that business and establish it as quickly as we can because we see real potential there and same with carbon ventures again, leveraging our ability to.

Speaker Change: Transform the molecule shaped to molecules and get some structures that.

Speaker Change: Prove performance I think there's a big opportunity there so but that's you know I would say carbon ventures is still early in the technology cycle, but I think we've gone far enough along to see some real opportunity there and as I said in my prepared remarks, the challenge I've given the product solutions organization as you know, what's what's a realist.

Darren Woods: I think there's a big opportunity there. But that's, you know, I would say Carbon Ventures is still early in the technology cycle, but I think we've gone far enough along to see some real opportunity there. And as I said in my prepared remarks, the challenge I've given the product solutions organization is, you know, what's a realistic but aggressive business plan look like and what would be the investment required to establish that. And that's good because it grows value today, but it also positions as well as those molecules become less demanded in their traditional applications. It becomes a much lower feed stock to these new applications.

Darren Woods: But I think we've gone far enough along to see some real opportunity there. And as I said in my prepared remarks, the challenge I've given the product solutions organization is, you know, what would a realistic but aggressive business plan look like? And what would the investment required to establish that?

Speaker Change: But aggressive business plan look like and what would be the investment required to establish that and that's good because it grows value today, but it also positions as well as those molecules become.

Darren Woods: And that's good because it grows value today, but it also positions us as well, as those molecules become less demanded in their traditional applications, they become a much lower feedstock to these new applications. And so there's a lot of opportunity to diversify the slate and protect the business or diversify the business as we move through the transition. So, long answer, but there are a lot of variables at play here, but frankly, all variables that we feel very comfortable managing. And I think the progress we're making there demonstrates our capability to manage those things.

Speaker Change: Less demanded in their traditional applications it becomes a much lower feedstock to these new applications and so theres a lot of opportunity to diversify the slate protect the business or diversify the business as we move through the transition so long answer, but a lot of variables at play here, but.

Darren Woods: And so there's a lot of opportunity to diversify this lake, protect the business, or diversify the business as we move from the transition. So long answer, but a lot of variables that play here, but frankly, all variables that we feel very comfortable managing. And I think the progress we're making there demonstrates our capability to manage those things.

Speaker Change: Frankly, all variables that we feel very comfortable managing and I think the progress we're making there demonstrates our capability to manage those things.

Unknown Speaker: Great, thanks Darren. I appreciate all the detail. Thank you. The next question is from John Royall with J.P. Morgan. Hi, good morning. Thanks for taking my question.

Devin Mcdermott: Great. Thanks, Darren. Appreciate all the detail.

Speaker Change: Great. Thanks, Darren I appreciate all the detail thank.

John Royal: Thank you. The next question is from John Royal with JP Morgan. Hi, good morning. Thanks for taking my question. Some questions on the CapEx guidance update. We see that you move to the legacy CapEx up to the top end of the prior range.

Speaker Change: Thank you.

Unknown Speaker: The next question is from John Royall of J.P. Morgan.

Speaker Change: The next question is from John Royall with Jpmorgan.

John Royall: Hi, good morning, Thanks for taking my question.

John Royall: Question is on the Capex guidance update.

Speaker Change: We see that you moved to the legacy Capex up to the top end of the prior range.

Darren Woods: And then obviously you learned in Pioneer as well, but can you talk about the drivers of the legacy CapEx bumping up to 25 billion for the year. Yeah, good morning, John. I'll start with that and then let Kathy finish up. So the reason we put a range out on the CapEx is as we build these plans and the previous year starting around this time in the summer time and then kind of lock and load them in October. And obviously there's a lot of things that develop and evolve from the middle of the previous year as we go into this year.

Speaker Change: And then obviously you layered in pioneer as well, but can you talk about the drivers of the legacy Capex bumping up to 25 billion for the year.

Darren Woods: Yeah, good morning, John. I'll start with that and then let Kathy finish up. But that the way the reason we put a range out on the capex is, as we you know, we build these plans and the previous year starting around this time in the summertime, and then kind of lock and load them in October. And obviously, there's a lot of things that Development Evolved from, you know, the middle of the previous year to as we go into this year. That range is not meant to have you guys slice it down the middle and fix on a number.

Cathy: Yeah. Good morning, John I'll start with that and then let Cathy finish up but.

Speaker Change: So the way the reason, we put a range out on.

Speaker Change: On the Capex is as we build these plans and the previous year starting around this time in the summertime and then kind of lock and load them in October and obviously theres a lot of things that.

Speaker Change: Develop and evolve from the middle of the previous year or two as we go into this year that range is not meant to have you guys slice it down the middle and fixed on a number the range is to say, we've got optionality here and as things evolve we may reduce some of the spending or if we find that the opportunities.

Kathy Michaels: That range is not meant to have you guys slice it down the middle and fix on a number. The range is to say we've got optionality here, and as things evolve, we may reduce some of the spending, or if we find that the opportunities are panning out the way we expect, we may be on the other end. So that range is truly where we expect to be somewhere in, depending on how things evolve and what the opportunities that looks like. I mean, the key focus here is to make sure that we are investing in highly advantaged, highly profitable projects, and basically, as we worked our way from October of last year into this year, we see a lot of attractive opportunities that we continue to invest in, which puts us at the top end of that, consistent with what we understood the opportunity set could look like as we went into the plan process last year.

Darren Woods: The range is to say that we've got optionality here, and as things evolve, we may reduce some of the spending, or if we find that the opportunities are panning out the way we expect, we may be on the other end. So that range is truly where we expect to be somewhere, depending on how things evolve and what the opportunity set looks like. I mean, the key focus here is to make sure that we are investing in highly advantageous, highly profitable projects.

Speaker Change: We're panning out the way we expect we may be on the other end. So that range is truly where we expect to be somewhere in depending on how things evolve and what the opportunity set looks like.

Speaker Change: The key focus here is to make sure that we are investing in highly advantaged highly profitable.

Speaker Change: Projects and basically as we worked our way from October of last year into this year, we see a lot of attractive opportunities that we continue to invest in which puts us at the top end of that consistent with what we understood. The opportunity set could look like as we went in to the plan process last year that's why.

Darren Woods: And basically, as we worked our way from October of last year into this year, we saw a lot of attractive opportunities that we continue to invest in, which puts us at the top end of that, consistent with what we understood the opportunity set could look like as we went in.

Kathy Michaels: That's why we're coming in at 25, and of course we're using the pioneer number to add on top of that, but I'll get anything to add to that.

We're coming in at 25, and then of course, we're using the pioneer number to add on top of that but Kathy anything to add to that.

Kathy Michaels: No, I would just say, obviously, we have a lot of projects coming online in 2025. And the exact pace of all of those, and therefore, you know, making sure that we provide it sort of enough room, I would say in the initial guidance, to support all of those projects that are coming online in 2025. You know, we can't pinpoint pinpoint predict all of that as we put our plans together for the year.

Kathy Michaels: No, I would just say obviously we have a lot of projects coming online in 2025, and the exact pace of all of those, and therefore making sure that we provide it sort of enough room. I would say in the initial guidance supporting of all of those projects that are coming online in 20, 25 you know we can't pinpoint predict all that as we put our plans together for the year and so you know just as an example, China ones a huge project. It's going to be coming online early next year as an example, so there's always a little bit of give and take, which is why we give the range to start with.

Kathy Michael: Just say obviously.

Kathy Michael: We have a lot of projects coming online in 2025, and the exact pace of all of those and therefore.

Kathy Michael: Making sure that we provide it sort of enough room I would say in our initial guidance supporting of all of those projects that are coming on line in 2025.

Kathy Michael: Can you pinpoint pinpoint forget all of that as we put our plans together for the year and so just as an example, China one is a huge project.

Kathy Michaels: And so, you know, just as an example, China is one huge project; it's going to be coming online early next year, as an example. So there's always a little bit of give and take, which is why we give the range to start with.

Kathy Michael: It can be coming online early next year as an example, so theres always a little bit of give and take which is why we gave the range to start with.

Jason Gabelman: Thank you. The next question is from Jason Gabelman with TD Cowan. Hey, good morning. Thanks for taking my questions. I actually wanted to follow up on the 2025 project started that you just mentioned, and thanks for a little bit more detail on the China Chemicals Complex. As I look to the other projects coming online, I think the largest earnings contributors include the Permian crude pipeline and then in the upstream golden path and then the next guy on a boat.

John Royall: Thanks, John.

Unknown Speaker: The next question is from Jason Gabelman with TD Cowen.

Jason <unk>: The next question is from Jason <unk> with TD Cowen.

Unknown Speaker: Hey morning. Thanks for taking my questions. I actually wanted to follow up on the 2025 project startups that you just mentioned, and thanks for a little bit more detail on the China Chemicals Complex. But as I look at the other projects coming online, I think the largest earnings contributors include the Permian Crude Pipeline, and then in the upstream, Golden Pass, and then the next Guyana Boat. So I was just wondering if you could provide a little more color on those projects in terms of how they're progressing and kind of progressing through the year. Thanks.

Jason <unk>: Hey, good morning, Thanks for taking my questions.

Jason <unk>: I actually wanted to follow up on the 2025 projects startups that you just mentioned and thanks for a little bit more detail on the China chemicals complex, but as I look to the other projects coming online I think the largest earnings contributors include the Permian crude pipeline and then in the upstream.

Speaker Change: Golden Pass and then the next kind of Guyana boat. So I was just wondering if you could provide a little more color.

Darren Woods: So I'm just wondering if you could provide a little more color on those projects in terms of how they're progressing and kind of phasing through the year next. So I would say consistent with the plans that we put out, the projects are all, with obviously the exception of Golden Pass, moving consistent with the plan, developed and in the announced dates that we talked about. All of them I think you feel really good about in terms of the work that we're doing and the case for. The contributions, the returns, the earnings that we expect to get out of those projects, I think we continue to feel good about.

Speaker Change: All of those projects in terms of how they're progressing and kind of phasing through the year. Thanks.

Darren Woods: So I would say, consistent with the plans that we put out, the projects are all, with the exception of Golden Pass moving, Consistent with the plan development and the announced dates that we talked about all of them, I think you feel really good about in terms of the work that we're doing and the case for. The contributions, the returns, the earnings that we expect to get out of those projects. I think we continue to feel good about, you know, underp We've actually found that if you look at the investments we've made since 2018, and have brought online, if you look at the aggregate return of that portfolio, it's exceeding the basis on which we FID those projects. Even as we've been, say, in the chemical business at the bottom of cycle conditions.

Speaker Change: So I would say consistent with the plans that we put out the projects are all.

Speaker Change: Obviously, the exception of Golden pass moving.

Speaker Change: Consistent with the plan.

Speaker Change: Development in the announced dates that we talked about all of them I think.

Speaker Change: We feel really good about in terms of the.

Speaker Change: The work that we're doing and the case for.

Speaker Change: The contributions the returns the earnings that we expect to get out of those projects I think we continue to feel good about you know.

Darren Woods: Underpinning all the projects is we never try to take a position on where we're going to be in the market cycle, but instead make sure that these projects, when they come on, can compete in any of the areas of the cycle. We've actually found that if you look at the investments we've made since 2018. We have brought online; if you look at the aggregate return of that portfolio, it's exceeding the basis in which we FID those projects. Even as we've been, say in the chemical business, it's bottom of cycle condition, so I think we continue to demonstrate to ourselves the time we spend to make sure these projects are advantaged in the base case is paying off, and then of course our global project organization is really continuing to drive very effectively at the end of the day.

Speaker Change: Underpinning all of the projects is we've never tried to take a position on where we're going to be in the market cycle, but instead make sure that these projects when they come on cash.

Speaker Change: Can.

Speaker Change: Compete in any of the areas of the cyclone we've actually found that if you look at the investments we've made since 2018.

We have brought online if you look at the aggregate return of that portfolio, it's exceeding the basis in which we need those projects, even as we've been saying in the chemical business at bottom of cycle conditions. So I think we continue to demonstrate to ourselves. The time, we spend to make sure. These projects are advantaged in the base case.

Kathy Michaels: So I think we continue to demonstrate to ourselves the time we spend to make sure these projects are advantageous in the base case is paying off. And then, of course, our global project organization is really continuing to drive the portfolio by keeping our costs well within the FID basis and generally delivering them faster and, therefore, bringing more value sooner. Yeah, and I would just note it's an especially big year for our EMPS business. So, you know, I already mentioned China One, and you mentioned a couple of projects.

Is paying off and then of course, our global project organization is really continuing to drive.

Speaker Change: Very effective execution of.

Darren Woods: The execution of the portfolio with keeping our cost well within the FID basis and generally delivering it faster and therefore bringing more value sooner.

Speaker Change: The portfolio with keeping our cost well within.

Speaker Change: The <unk> basis, and generally delivering it faster and therefore, bringing more value sooner.

Kathy Michaels: And I would just note it's especially a big year for our EMPF business, so I already noted China 1. You noted a couple of projects. I mean the Singapore Resid Upgrade Project is a pretty big project. We have an upgrade project at Folly in order to bring on ultra low sulfur diesel. We've got the Stratcona Project for Renewable Diesel coming online in 2025, so really big year for the EMPF business in terms of the number of projects we have coming online, and then we're going to continue to expand our advanced recycling. So we'll be adding more capacity as well next year.

Speaker Change: Definitely yes.

Speaker Change: And then especially.

Speaker Change: Sorry.

Speaker Change: So.

Speaker Change: I already noted China. One you noted a couple of projects I mean, the Singapore Reserve upgrade project is a pretty big project.

Kathy Michaels: I mean, the Singapore ReVid upgrade project is a pretty big project. You know, we have an upgrade project at Solly in order to bring in, you know, ultra-low sulfur diesel. We've got the Strathcona project for renewable diesel coming online in 2025. So, you know, a really big year for the EMPS business in terms of the number of projects we have coming online. And then we're going to continue to expand our advanced recycling.

Speaker Change: We have a upgrade project at Farley in order to bring on.

Speaker Change: Altra low sulfur diesel we've got the strength Kona project for renewable diesel coming online in 2025, so really big year for that.

Speaker Change: Business in terms of the number of projects, we have coming online and then we're going to continue to expand our advanced recycling. So we'll be adding more capacity as well next year or so.

Kathy Michaels: So we'll be adding more capacity as well next year. So, you know, we noted, you know, again, if you look at our IR slides, we talk about projects being a big driver of underlying earnings growth in the EMPS business. And you see that supported by everything coming on in 2025.

Kathy Michaels: So we know it, again if you look at our IR slides we talk about projects being a big driver of underlying earnings growth in the EMPF business, and you see that support it by everything coming on in 2025.

Speaker Change: Note. It again, if you look at our IR slides, we talk about projects being a big driver of underlying earnings growth in the NPS business and you see that supported by everything coming on in 2025.

Biraj Borkhataria: Thank you. The next question is from Bureau of Borkateria with RBC. Your line is open. Please go ahead.

Speaker Change: Thanks.

Unknown Speaker: The next question is from Biraj Borkhataria with RBC. Your line is open. Please go ahead.

Speaker Change: The next question is from B Riley <unk> with RBC. Your line is open. Please go ahead.

Biraj Borkhataria: Hi there. Thanks for taking my question. Just wanted to follow up on Jason's question and more specifically on Golden Pass. So I guess at this point, are you able to confirm updated scheduled guidance for the startup? And then, the second question is just going to some of your prepared remarks. If I think about your upstream portfolio, a lot of your growth is liquids or liquids price linked through LNG. I think you say 80% of your upstream is now linked to liquids. So I was thinking, as you're building out your LNG portfolio and your trading function, is there any desire to diversify that sales mix a bit more, or is this intentional and where you want to be?

Unknown Speaker: Hi there. Thanks for taking my question. I just wanted to follow up on Jason's question and more specifically on GoldenPath. So I guess at this point, are you able to confirm updated scheduled guidance for the startup? And then the second question is just going through some of your prepared remarks. If I think about your upstream portfolio, a lot of your growth is liquids or liquids price linked through LNG. I think you say 80% of your upstream is now linked to liquids.

Speaker Change: Hi, there.

B Riley: Thanks for taking my question just wanted to follow up on Jason's question and more specifically on Golden pass So I guess.

Speaker Change: At this point.

Speaker Change: Are you able to confirm our updated schedule guidance for the startup.

Speaker Change: And then second question is just going to some of your prepared remarks, if I think about your upstream portfolio.

B Riley: Your growth is is liquids or liquids price linked through LNG.

Speaker Change: You say, 80% of your upstream is that linked to the grid.

Unknown Speaker: So I was wondering, as you're building out your LNG portfolio and your trading function, is there any desire to diversify that sales mix a bit more, or is this intentional and where you want to be? Thank you.

Speaker Change: I was thinking as you're building out your LNG portfolio and you're trading function is there any desire to diversify that sales mix a bit more or is it intentional on where you want to be thank you.

Darren Woods: Thank you. Yeah, sure. I'll start with the last part of the question, which is it is a conscious decision to get weighted on liquid prices. And frankly, if you look at the LNG market and when you're building large LNG projects, you tend to sell those out and sign contracts in advance of the investment, which the market today is linked to oil. And so we continue to have a desire to walk in a significant portion of those developments, so we've got surety on the sale side of the equation as we bring those projects up. So my expectation is we'll continue to be weighted on that, and we're very comfortable with that.

Darren Woods: Yeah, sure. I'll start with the last part of the question, which is It is a conscious decision to get weighted on liquid prices and frankly if you look at the LNG market and when you're building large LNG projects you tend to sell those out and sign contracts in advance of the investments which the market today is linked to oil and so we continue to have a desire to lock in a significant portion of those developments so we've got surety on the sales side of the equation as we bring those projects up so my expectation is we'll continue to be weighted on that and we're very comfortable with that in fact there's been a huge drive since I've been in this job and brought Neil into the upstream to basically shift the portfolio and get a little heavier weighting in the oil side.

Speaker Change: Yes, sure I'll start with the last part of the question which is.

Speaker Change: It is a conscious decision to get weighted on liquid prices and frankly, if you look at the LNG.

Speaker Change: Market and when you are building large LNG projects you tend to.

Speaker Change: Sell those out and signed contracts in advance of the investments, which the market today is linked to oil and so we continue to have a desire to.

Speaker Change: Walk in a significant portion of those developments that we've got surety on the sales side of the equation as we bring those projects up. So my expectation is we will continue to be weighted on that and we're very comfortable with that in fact, there has been a huge drive.

Darren Woods: In fact, there's been a huge drive since I've been in this job and brought needle into the upstream to basically shift the portfolio and get a little heavier weighting in the oil side. As I mentioned on this morning on CNBC, if you look at the oil that we're producing today, we're producing more oil than at any time since the merger of Exxon Mobil, so that strategy is beginning to manifest itself.

Speaker Change: Vince.

Vince: I've been in this job and brought needle into the upstream to basically shift the portfolio and get a little heavier weighting in the oil side.

Darren Woods: As I mentioned this morning on CNBC, if you look at the oil that we're producing today, we're producing more oil than at any time since the merger of Exxon and Mobil, so that strategy is beginning to manifest itself. On your golden path, the project, so we've just gotten through, the venture just reached a settlement with Zachary, and so that venture's in the process of kind of restaffing and getting started back up again.

Speaker Change: As I mentioned.

Vince: This morning on CNBC, if you look at the oil that we're producing today, we're producing more and more oil than at any time since the merger of Exxon and Mobil. So that strategy is beginning to manifest itself.

Darren Woods: On your golden past the project, so we've just gotten through the venture just reached a settlement with Zachary, and so that ventures in the product of the process of kind of re-staffing and getting started back up again. Obviously, we're in the very early days of that, so there's still more work to be done, and of course the teams are very focused on getting back to work effectively executing and bringing that project in as quickly as they can and as close to the original schedule as they can. Right now our estimate is we're going to see about a six-month slippage, so we had anticipated kind of first LNG, the middle of the next year, and we're now looking at probably the back end of 2025 for first LNG, and that's kind of where the current schedule is, but I would just condition that with the teams are just getting back up and running, and they have a clear mandate to try to bring that up.

Speaker Change: On your Golden Pass project. So we've just gotten through reached the venture just reached the settlement with.

Speaker Change: Zachary and so.

Speaker Change: That ventures in the process of kind of re staffing and getting started back up again, obviously, we're in the very early days of that.

Darren Woods: Obviously, we're in the very early days of that, so there's still more work to be done, and of course, the teams are very focused on getting back to work, effectively executing, and bringing that project in as quickly as they can and as close to the original schedule as they can. Right now, our estimate is we're going to see about a six-month period. [inaudible] kind of first LNG in the middle of

Speaker Change: So theres still more work to be done and of course. The teams are very focused on getting back to work effectively executing and bringing that project is.

Speaker Change: Quickly as they can and as close to the original schedule as they can right now our estimate is were going to see about a six month.

Vince: Slippage, so we had anticipated.

Darren Woods: We are now looking at probably the back end of 2025 for first LNG. That's kind of where the current schedule is, but I would just condition that on the teams are just getting back up. In running, and you know, they have a clear mandate to try to bring that in as effectively as they can. And my, again, my expectation is they'll do better than we currently think. But we've got work to do.

Speaker Change: Kind of first LNG the middle of next year.

Speaker Change: We now are looking at probably the backend of 2025 for first LNG.

Speaker Change: And that's kind of where the current schedule is but I would just condition that with the teams are just getting back up.

Speaker Change: And running.

Speaker Change: They have a clear mandate to.

Darren Woods: We're going to bring that in as effectively as they can, and again my expectation is it'll do better than we currently think, but we've got work to do.

Speaker Change: Tried to bring that in.

Speaker Change: As effectively as they can and my again my expectation is they'll do better than we currently think but we've got work to do.

Biraj Borkhataria: Okay, understood. Thank you very much. Thank you, Ross.

Speaker Change: Yes.

Unknown Speaker: Understood. Thank you very much. Thank you.

Speaker Change: Okay understood. Thank you very much thank you Raj.

Stephen Richardson: The next question is from Stephen Richardson with Evercore. Hi, thank you. It's one of a good circle back, appreciate all the conversation about projects and project execution, and how you've got a number of really important and interesting projects coming on in the downstream in short order.

Unknown Speaker: The next question is from Stephen Richardson with Evercore.

Speaker Change: The next question is from Stephen Richardson with Evercore.

Unknown Speaker: Hi, thank you. I was wondering if we could circle back. I appreciate all the conversation about projects and project execution and how you've got, you know, a number of really important and interesting projects coming on in the downstream, you know, in short order. I'm just wondering, you know, you've added, you know, quite a bit of length to your upstream portfolio over the last number of years. And as you think out beyond 26, 27, Darren, are the teams continuing to bring you new and interesting projects in EMPS?

Stephen Richardson: Hi, Thank you.

Stephen Richardson: I was wonder if you could circle back I appreciate all the conversation about the about projects and project execution and.

Speaker Change: And how you've got a number of really important and interesting projects coming on in the downstream.

Darren Woods: And in short order I'm, just wondering if you've added seemingly quite a bit of length to your upstream portfolio over the last number of years and as you think out beyond 'twenty six 'twenty seven Darren or are the teams continuing to bring you.

Darren Woods: You've added seemingly quite a bit of length to your upstream portfolio over the last number of years, and as you think out beyond 2627, the teams continuing to bring you new and interesting projects in the MPS, and do you think continuing that kind of pace of integration out in the plan horizon is still interesting. Maybe you could just talk about that in terms of the investment mix and the opportunities, and maybe address MPS and chemicals as well. Sure, no, I appreciate the question, Steve, because I think you touched on a really important point. I think one of the advantages of the restructuring that we've done is we no longer identify our business with the products that we're making.

Darren Woods: New and interesting projects any NPS and do you think you know continuing that kind of pace of integration out.

Unknown Speaker: And do you think, you know, continuing that kind of pace of integration out, you know, in the plan horizon is still interesting? Maybe you could just talk about that in terms of the investment mix and the opportunities and maybe address EMPS and chemicals as well. Sure. No, I appreciate the question, Steve, because I think you touched on...

Speaker Change: The plan Horizon is still interesting maybe you can just talk about that in terms of the investment mix and the opportunities and maybe address.

Speaker Change: <unk> and chemicals as well.

Darren Woods: Sure. No, I appreciate the question, Steve, because I think you're touching on a really important point.

Speaker Change: Sure No I appreciate the question, Steve because I think you've touched on a really important point I think one of the advantages of the restructuring that we've done.

Darren Woods: I think one of the advantages of the restructuring that we've done is we no longer identify our business with the products that we're making. So if you go back in time, the functional organizations that we established, we had a refining organization that was producing refining products, and we had a fuels marketing organization that was marketing fuels, and we had a chemical company that was marketing chemicals. We've now combined all that into a product solutions organization which is supported by a technology organization which is again not organized around any of our heritage businesses or heritage products but instead is organized around core capabilities, and core technical capabilities to deliver value to the businesses that they support.

Speaker Change: As we no longer identify our business with the products that we're making.

Darren Woods: So if you go back in time, the functional organizations that we established had refining organization that was producing refining products, and we had a fuels marketing organization that was marketing fuels, and we had a chemical company that's marketing chemicals. We've now combined all that into a product solutions organization, which is supported by a technology organization, which again is not organized around any of our heritage businesses or heritage products. But instead, we're going to organize around core capabilities, core technical capabilities, to deliver value to the businesses that they support. So while it may not be intuitively obvious that change in structure.

Speaker Change: So if you go back in time, the functional organizations that we establish new head refining organization that was producing refining products and we had a fuels marketing organization that was marketing fuels.

Speaker Change: And we had a chemical company as marketing chemicals, we've now combine all that into a product solutions organization.

Speaker Change: Which is supported by a.

Speaker Change: Our technology organization, which again is not organized around any of our heritage businesses or heritage products, but instead is Oregon are organized around core capabilities core technical capabilities to deliver value to the businesses that they support so while it may or may not be too.

Darren Woods: So while it may not be intuitively obvious, that change in structure and the way we think about and talk about the business has also opened up a lot of White Space in terms of, you know, the challenge here is how do we take our core advantages and core capabilities. Some of that includes our existing footprint, but a lot of it includes our ability to upsell and to identify value and use applications and combine that with a technology organization that's very focused on applying core technology capabilities to business challenges and business opportunities, which is starting to unlock applications that, frankly, in the past wouldn't have been identified because they didn't fit in the context of the organizations that we had in place.

Speaker Change: The obvious that change in structure.

Darren Woods: and the way we think about and talk about the business has also opened up a lot of white space. in terms of the challenge here is how do we take our core advantages, core capabilities. Some of it includes our existing footprint, but a lot of it includes our ability to upsell and to identify value and use applications and combine that with a technology organization that's very focused on applying core technology capabilities to business challenges and business opportunities, which is starting to unlock applications that frankly in the past wouldn't have been identified because they didn't fit in the context of the organizations that we had in place. But today the aperture is much broader and the playing field is much, much bigger, and so we see that with Proxima and Carbon Ventures. My expectation is as we go forward we'll continue to talk about those markets and we'll talk about the applications.

Speaker Change: And the way, we think about and talk about the business has also opened up.

Speaker Change: A lot of.

Speaker Change: White space in terms of you know the challenge here is how do we take our core advantages core capabilities.

Speaker Change: Some of it includes our existing footprint, but a lot of it includes our ability to upsell and to identify value and use applications and combine that with a technology organization. That's very focused on applying core technology capabilities to business challenges and business opportunities, which is starting to unlock.

Speaker Change: The applications that frankly in the past wouldn't have been identified because they didn't fit in the context of the organizations that we had in place but today.

Darren Woods: But today, the aperture is much wider, and the playing field is much, much bigger. And so we see that with Proxima and Carbon Ventures. My expectation is that as we go forward, we'll continue to talk about those markets, and we'll talk about the applications that we're developing. And the technology organization is continuing to look at how else can we use our capabilities in manipulating molecules, and particularly hydrogen and carbon molecules, to make products that society needs and, at the same time, reduce emissions.

Speaker Change: The aperture is much broader than the playing field is much.

Speaker Change: Much much bigger and so we see that with approximate in carbon ventures. My expectation is as we go forward. We will continue to talk about those markets and we will talk about the applications that we're developing and the technology organization is continuing to look at how else can we use.

Darren Woods: And the technology organization is continuing to look at how else can we use our capabilities and manipulating the molecules and particularly hydrogen and carbon molecules to make products that society needs and at the same time reduce emissions. So I think that organization has been given a license, hunting license to go out and find how we can lean into and create more value out there and grow earnings. So my expectation is as we go forward, well beyond the 2027 time frame, we're going to continue to bring in opportunity sets as we unlock them through the work of both our product solutions organization but also our technology organization.

Speaker Change: Our capabilities and manipulating the molecules, particularly hydrogen and carbon molecules to make products that society needs and at the same time reduce emissions. So I think that organization has been given a license a hunting license to go out and find how we can lean into and create more value out there.

Darren Woods: So I think that organization has been given a license, a hunting license, to go out and find how we can lean into and create more value out there and grow earnings. So my expectation is, as we go forward well beyond the 2027 time frame, we're going to continue to bring in opportunity sets as we unlock them through the work of both our product solutions organization and also our technology organization. Then, of course, we can take advantage of our project organizations, then go off and build these things at scale and do it at a lower cost than anybody else.

Speaker Change: Grow earnings. So my expectation is as we go forward well beyond the 2027 timeframe, we're going to continue to bring in opportunity sets as we unlock them through the work of both our product solutions organization, but also our technology organization and then of course, we can take advantage of our projects organizations didn't go off.

Darren Woods: Then, of course, we can take advantage of our project organizations, and then go off and build these things at scale and do it at a lower cost than anybody else. So I think there's a really powerful combination there.

Speaker Change: Build these things at scale and do it at a lower cost than anybody else. So I think there's a really powerful combination there and our horizon extends well beyond.

Darren Woods: So I think there's a really powerful combination there. And our horizon extends well beyond, you know, 2027 in terms of thinking through the pipeline and making sure that we're positioned to be successful well into the future. And I would just quickly add then, and that's true for product solutions, which have the chemical portfolio, our specialties portfolio, and then what I would say are the energy portfolio, but more specifically the molecules that go into energy that we expect to become feedstocks of the future like they are today for our carbon ventures and the Proxima venture.

Darren Woods: And our horizon extends well beyond, you know, the 2027, in terms of thinking through the pipeline and making sure that we're positioned to be successful well into the future. And I would just quickly add then, and that's true for product solutions, which has got the chemical portfolio, especially portfolio, and then what I would say are the energy portfolio, but more specifically the molecules that go into energy that we expect to become feedstocks of the future like they are today. So that's a way for Carbon Ventures and Approximate Ventures. On the upstream side we've got a lot of obviously growth potential through the back end of this decade, but we, you know, this is the depletion business we recognize that and so that organization continues to look well beyond the 2027 2030 time horizon, making sure that we have got a good understanding of what is going to take to keep that pipeline full.

Speaker Change: The 2027 in terms of thinking through the pipeline and making sure that we're positioned to be successful well into the future and I would just quickly add then and Thats true for product solutions, which has got the chemical portfolio. Our specialties portfolio and then what I would say of the energy portfolio, but more specifically the mall.

Speaker Change: Fuel as they go into energy that we expect to become feedstocks are the future like they are today for carbon ventures, an approximate ventures.

Darren Woods: On the upstream side, we've got a lot of growth potential through the back end of this decade, but we, you know, this is a depletion business. We recognize that. And so that organization continues to look well beyond the 2027 2030 time horizon, making sure that we have got a good understanding of what it's going to take to keep that pipeline full. So I feel really good about that. I think the way we've organized the businesses and the central organizations that we've put in place to serve those businesses are going to have huge payoffs here in this space.

Speaker Change: On the upstream side.

Speaker Change: We've got a lot of obviously.

Speaker Change: Growth potential through the back end of this decade, but.

Speaker Change: This is a depletion business, we recognize that and so that organization continues to look well beyond the 2027 2003 time horizons, making sure that we have got a good understanding of what it's going to take to keep that pipeline full so I feel really good about that I think the way we organize the.

Darren Woods: So I feel really good about that. I think the way we've organized the businesses and the central organizations that we've put in place to serve those businesses are going to have huge payoffs here in this space.

Speaker Change: The businesses in.

Speaker Change: The central organizations that we've put in place to serve those businesses is going to have huge pay.

Speaker Change: Payoffs here in this space.

Roger Reed: The next question is from Roger Reed with Wells Fargo. Yeah, thank you. Good morning.

Unknown Speaker: The next question is from Roger Read with Wells Fargo. Yeah, thank you. Good morning. Unknown Speaker 1 Okay.

Unknown Speaker: The next question is from Roger Read with Wells Fargo.

Roger Read: The next question is from Roger read with Wells Fargo.

Roger Read: Yes. Thank you good morning.

Roger Reed: Since you all have probably the most geographically diverse set of operations of anyone we cover, I was just curious, you know, the most recent news this morning shows maybe a few cracks in the economy. You could kind of give us an idea as you look across the products and the chemical side, thinking, you know, that's where we really see the demand parts. What you're seeing, you know, kind of let's say China back around to our side of the globe.

Unknown Speaker: Thank you. We'll see you next time. Bye. Since y'all have

Roger Read: Since you all have probably the most geographically diverse set of operations with anyone we cover.

Roger Read: I was just curious you know the most recent news. This morning shows maybe a few cracks in the economy, you could kind of give us an idea as you look across the products and the chemical side thinking that's where we really see the demand parts, what youre seeing kind of.

Speaker Change: Let's say, China back around to our side of the globe.

Darren Woods: Sure, good morning, Roger. I think the key message I would leave you with across our businesses, when you look at kind of pricing in margins, is there's two pieces, two halves to the equation. There's the demand side, and there's the supply side. On the demand side, frankly, to start with chemicals, we see the demand basically returning to the kind of growth that we've seen prior to the pandemic. So basically growing at one to two percent above GDP. And so that's back on track from a growth standpoint. Certainly, that's what we're seeing at the first half of this year.

Unknown Speaker: Sure. Good morning, Roger.

Roger Read: Sure Good morning, Roger I think.

Darren Woods: I think the key message I would leave you with across our businesses when you look at pricing and margins is that there's two pieces, two halves to the equation. There's the demand side, and there's the supply side. On the demand side, frankly, let's start with chemicals. We see demand basically returning to the kind of growth that we saw prior to the pandemic. So basically, growing at one to 2% above GDP. And so that's back on track from a growth standpoint. And certainly, that's what we're seeing in the first half of this year.

Speaker Change: The key message I would leave you with across our businesses.

Speaker Change: When you look at kind of pricing and margins is theres two pieces two halves to the equation, there's the demand side and there is a supply side on the demand side frankly.

Darren Woods: The challenge in that business with the margins has been, frankly, from the supply side of the equation, a lot of capacity coming on and a queue of capacity yet to come on. And so that's been more of the story in chemicals, less of a demand and growth story and more of a supply story and a lot of supply coming on in the short term and as in the past. The challenge in the chemical business, given the large chunks of capacity that come on in discreet times, is that you've got to grow through that capacity to get your margins back up again. One of the reasons why we stay so very focused on low cost of supply, feed advantage, and importantly, performance products is to make sure that we've got advantages above and beyond the commodity cycle.

Speaker Change: To start with chemicals.

Speaker Change: We see the demand basically returning to the kind of growth that we've seen prior to the pandemic, so basically growing at 1% to 2% above GDP and so that's.

Speaker Change: Back on track from a growth standpoint, certainly that's what we're seeing in the first half of this year the challenge in that business with the margins has been frankly from the supply side of the equation with a lot of capacity.

Darren Woods: The challenge in that business with the margins has been, frankly, from the supply side of the equation, with a lot of capacity coming on and a queue of capacity yet to come on. And so that's been more of the story, and chemicals, less of a demand and growth story and more of a supply story, and a lot of supply coming on in short term. And like the past, the challenge in the chemical business, given the large chunks of capacity to come on and discrete times that you've got to grow your, got to grow through that capacity to get your margins back up again.

Speaker Change: Coming on in a queue of capacity yet to come on and so.

Speaker Change: That's been more of the story in chemicals less of a demand and growth story and more of a.

Speaker Change: Supply story, and a lot of supply coming on in the short term. Unlike the past the challenge in the chemical business given the large chunks of capacity to come on in discrete.

Speaker Change: Times that you've got to grow your Gotta go grow through that capacity to get your margins back up again.

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

Darren Woods: And you see that playing out now in our chemical business with earnings that, frankly, are well above what would be expected given the challenging market conditions that we see in the margin environment. China is growing, you know, despite maybe some of the not growing at the rates that we've seen historically, the very high rates, but still growing at a healthy, healthy clip. And as you come around to the US, we're seeing kind of reasonable economic conditions and growth in the US as well.

Speaker Change: One of the reasons why we stay still very focused on low cost of supply feed advantage and importantly performance products is to make sure that we've got advantages above and beyond the commodity cycle and you see that playing out now in our chemical business.

Speaker Change: With earnings that frankly are well above what would be expected given the challenging market conditions that we see in the margin environment, China is growing despite maybe some of it is not growing at the rates that we've seen historically is at very high rates, but it's still growing at a at a healthy healthy clip.

Darren Woods: Europe, I think, is probably the most challenged area of the globe. And frankly, with some of the policies we see Europe implementing, my expectation is it will become even more challenging, quite frankly, and, unfortunately, particularly unfortunate for the folks living in Europe, given the, I think, the drag that the policies they're putting in place is going to put on their economy. I think China's looking reasonable.

Darren Woods: And as you come around to the US, we're seeing kind of reasonable economic conditions and growth in the US as well.

Speaker Change: And as you come around to the U S. We're seeing kind of reasonable economic conditions and growth in the U S as well.

Darren Woods: Europe, I think, is probably the most challenged area of the globe, and frankly, with some of the policies we see Europe implementing. My expectation is it becoming more challenging, quite frankly and unfortunately, particularly unfortunate for the folks living in Europe, given the, I think, the drag that the policy they're putting in place is going to put on their economy. But I think China is looking reasonable; India is growing, and it looks very, very healthy. The US is looking reasonable with good growth. Demand for on the energy side of the equation with petroleum products continues to be very high, record levels of demand around the world.

Speaker Change: Europe I think is probably the most challenged area of the globe and frankly with some of the policies. We see Europe implementing my expectation is it becoming more challenging quite frankly, and unfortunately, particularly unfortunate for the folks living in Europe, given the I think the drag that the policy. They are putting in place is going to put on there.

Speaker Change: <unk>.

Speaker Change:

Speaker Change: So I think China is looking reasonable.

Speaker Change: Andy is growing and it looks very very healthy the U S is looking reasonable with good growth demand for on the energy side of the equation with petroleum products continues.

Darren Woods: India is growing, and it looks very, very healthy. The U.S. is looking reasonable with good growth. Demand for, on the energy side of the equation with petroleum products, continues to be very high, with record levels of demand around the world. And again, I think very good supply coming into the equation there, which is keeping margins from those very high levels that we've seen in the first quarter and then back into last year, and we're now getting back down into more typical ranges. And frankly, all of our plans anticipated that it's always difficult to call the timing of it.

Speaker Change: <unk> continues to be very high record levels of demand around the world and again I think very good supply.

Darren Woods: And again, I think very good supply coming into the equation there, which is keeping, you know, has brought margins from those very high levels that we've seen in the first quarter. And then back into last year, we're now getting back down into a more typical range. and all of our plans anticipated that. It's always difficult to call the timing of it, but we certainly knew that the elevated margins that we were seeing in the refining business would ultimately come back into normal ranges. And if you look at the work we've been doing to high-grade that portfolio, we've taken out a lot of the low-margin, less-advantage refineries and are now focused on the integrated refineries that have a mix of high-value products that we're producing in our advantage from a size and scale and cost standpoint.

Speaker Change: Coming in to the equation, there, which is keeping has brought margins from those very high levels that we've seen in the first quarter and then back into last year, we're now getting back down into more typical ranges and frankly all of our plans anticipated that it's always difficult to call the timing of it but we certainly knew that the.

Darren Woods: But we certainly knew that the elevated margins that we were seeing in the refining business would ultimately come back, back into normal ranges. My expectation going forward, then, is that we'll continue to see what I would say is historical volatility levels in that we'll see times when the margins spike, and we'll see times when the margins are challenging. But again, we've built our refining business to be robust for those. And if you look at the work we've been doing to high-grade that portfolio, we've taken out a lot of the low margin, less advantaged refineries and are now focused on the integrated refineries that have a mix of high value products that we're producing and are advantaged from a size, scale, and cost standpoint. And then on the gas side of the equation and the oil side of the equation. Oil demand continues to be at record levels. Last year was a record.

Speaker Change: Elevated margins that we were seeing in the refining business would ultimately come back back into normal ranges. My expectation going forward. Then is we will continue to see what I would say is historical volatility levels and that we will see times when the margin Spike and we will see times and the margins are challenging but again, we built our.

Speaker Change: <unk> business to be robust to those and if you look at the work we've been doing too.

Speaker Change: High grade that portfolio, we've taken out a lot of the low margin less advantaged refineries and are now focused on the integrated refineries that have a mix of high value.

Speaker Change: <unk> that we're producing.

Speaker Change: And our.

Speaker Change: Advantage from a size and scale and cost standpoint, and then on the.

Darren Woods: And then on the gas out of the equation and the oil side equation, oil demand continues to be at record levels. Last year was a record. We anticipate this year will be a record, and then next year will be a record. So demand continues to be fairly healthy from an oil standpoint. It's just a question of working through the supply that's coming on, most of that led by what's happening in the Americas. And then on gas, you know, that's going to continue to grow in demand, and it's another, again, a function of the capacity is coming on.

Speaker Change: Gas side of the equation in the oil side of the equation oil demand continues to be at record levels last year was a record. We anticipate this year will be a record and then next year will be a record so demand continues to be fairly healthy from a.

Darren Woods: We anticipate this year will be a record and then next year will be a record. So demand continues to be fairly healthy from an oil standpoint. It's just a question of working through the supply that's coming on, most of that led by what's happening in the Americas.

Speaker Change: Oil standpoint, it's just a question of working through the supply that's coming on most of that led by what's happening in the Americas.

Unknown Speaker: And then on gas, you know, that's going to continue to grow in demand. And it's another function of the capacities coming on. So I think the good news is we're seeing the industry be very responsive to demand. And, frankly, it's very consistent with the foundation of the strategy that we put together, which is you got to be low cost; you got to be on the left-hand side of the cost of supply. Thanks, Roger. The next question is from Josh Silverstein with UBS. Thanks for watching!

Speaker Change: And then on gas.

Speaker Change: Just going to continue to grow and demand in and it's another again a function of the capacity is coming on so I think good news is we're seeing the industry be very responsive to the demand and frankly, it's very consistent with the foundation of the strategy. We put together, which is you've got to be low cost you gotta be.

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

Speaker Change: On the left hand side of the cost of supply curve.

Roger Reed: Thanks, Roger.

Roger Read: Thanks Roger.

Joshua Silverstein: The next question is from Josh Silverstein with UBS. Thanks, Warren, Darren, and Kathy. You continue to make good progress on the cost savings front. It looks like there was an up thick of about 600 million dollars quencially. It looks like you would call that kind of a 200 million dollar turnaround savings and energy products.

Unknown Speaker: The next question is from Josh Silverstein with UBS.

Speaker Change: The next question is from Josh Silverstein with UBS.

Josh Silverstein: Hey, Thanks, good morning, Darren and Cathy.

Speaker Change: You continue to make good progress on the cost savings front. It looks like there was an uptick of about $600 million sequentially.

Speaker Change: It looks like you had called out kind of a $200 million turnaround savings in energy products.

Kathy Michaels: I just wanted to see if you can provide some more examples of what's driving the improvement and how you take the current kind of 10, 7 to the 15 billion over the next few years. Thanks.

Speaker Change: Just wanted to see if you can provide some more examples of what what's driving the improvement and how you take the current kind of 10, 7% to the 15 billion over the next few years. Thanks.

Kathy Michaels: Great. Thanks very much for the question. And so you're right. If we look on an after-tax basis, we had about 600 million dollars overall on a pre-tax basis for the year-to-date work. Our structural cost savings is about a billion dollars, so making really good progress. Continuing to optimize maintenance is a big driver of overall savings. We gave a number of 200 million in energy products in terms of my prepared remarks. And that was just noting that in the half, we had a particularly heavy turnaround slate. And if we looked back at that same turnaround slate, the last time we did it, we did it much more quickly.

Unknown Speaker: Great. Thanks very much for the question. And so you're right.

Speaker Change: Great. Thanks, very much for the question and so Youre right. If we look on an after tax basis, we had about $600 million overall on a pretax basis for the year to date were our structural cost savings is about $1 billion.

Speaker Change: So we're making really good progress.

Kathy Michaels: If we look on an after-tax basis, we had about $600 million overall on a pre-tax basis for the year-to-date, where our structural cost savings are about a billion dollars. So we're making really good progress. Continuing to optimize maintenance is a big driver of overall savings. We gave a number of $200 million in energy products in terms of my prepared remarks, and that was just noting that in the half, we had a particularly heavy turnaround slate.

Speaker Change: To optimize maintenance is a big driver of overall savings we gave a number of 200 million in energy products in terms of my prepared remarks, and that was just noting that in the half we had a particularly heavy turnaround slate and if we looked back at that same turnarounds.

Speaker Change: The last time, we did it we did it much more quickly and we did it at lower cost, hence the $200 million savings number that.

Kathy Michaels: And we did it at lower cost, 10 to the 200 million dollar savings number that you mentioned. You know, we're also obviously driving savings in terms of supply chain, you know, and looking to get more efficient there. And all of our centralized organizations, which we've kind of stood up over the last couple of years, are really responsible for driving savings into the business. So whether that's global business solutions or whether that's supply chain or, you know, our global operating and sustainability group who works on our maintenance activities, we're really starting to see the up. tick from the benefit that those organizations can bring by simplifying things and standardizing things and bringing better data analytics to optimize our overall organization.

Speaker Change: That you mentioned you know we're also obviously.

Speaker Change: Savings in terms of.

Speaker Change: Supply chain.

Speaker Change: And looking to get more efficient there and all of our centralized organizations, which we've kind of stood up over the last couple of years are really responsible for driving savings into the business, so whether that global business solutions or whether that supply chain or.

Speaker Change: Mobile operating and sustainability Graham who works on our maintenance activities, we're really starting to see the uptick from the benefit that those organizations can bring.

Kathy Michaels: and standardizing things and bringing better data analytics to optimize our overall organization. So that's what you're going to continue to see on a go-forward basis. And then, I would say, longer term, as those centralized organizations start to standardize processes for the company, which, you know, are quite disparate as we sit here today, we'll be able to apply more technology to get, I would say, even more automated in the things that we do, which will drive further efficiencies for us long term.

Graham: Simplifying and standardizing things and bringing better data analytics.

Speaker Change: Optimize our overall organization. So that's what you're going to continue to see on a go forward basis, and then I would say longer term.

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

Kathy Michaels: And then I would say longer term, as those centralized organizations start to standardize processes for the company, which you know are quite disparate as we sit here today, we'll be able to apply more technology to get, I would say, even more automated in the things that we do, which will drive further efficiencies for us long term. So, you know, whether it's getting more efficient on logistics or getting more efficient because, you know, we're standardizing now between ourselves and Pioneer, standardizing all the materials and things that we're buying. Those are the types of things that'll continue to drive savings.

Speaker Change: Centralized organization start to standardize processes for the company, which are quite disparate as we sit here today.

Speaker Change: We'll be able to apply more technology.

Speaker Change: To get I would say, even more automated and the things that we do which will drive further efficiencies for us long term so.

Kathy Michaels: So, you know, whether it's getting more efficient in logistics or getting more efficient because, you know, we're standardizing now between ourselves and Pioneer, standardizing all the materials and things that we're buying, those are the types of things that will continue to drive savings. And I think we have both the largest program by far, you know, of anybody in the industry, and now a very proven track record that we feel quite good about, you know, typically over-delivering on the initial plan that we developed.

Speaker Change: Whether it's getting more efficient on logistics, we're getting more efficient because we're standardizing now between ourselves and pioneer.

Speaker Change: Standardizing all the materials and things that were buying those are the types of things that will continue to drive savings and I think we have both the largest program by far.

Kathy Michaels: So we're feeling good about the progress we're making and that, you know, overall target to get to $15 billion in savings between 2019 and 2027. Yeah, I just, I guess, have one other way to think about it.

Kathy Michaels: And I think we have both the largest program by far, you know, of anybody in the industry. And now a very proven track record that we feel quite good about, you know, typically over-delivering on the initial plans that we develop. So we're feeling good about the progress we're making and that, you know, overall target to get to $15 billion in savings between 2019 and 2027.

Speaker Change: Of anybody in the industry and now a very proven track record that we feel quite good about.

Speaker Change: Typically over delivering on the initial plan that we developed so we're feeling good about the progress we're making in that.

Speaker Change: We're all targeted to get to $15 billion in savings between 2019 and 2027.

Darren Woods: Yeah, I guess one of the ways to think about it, Josh is, for the first time in the history of our corporation, we've organized ourselves to focus on every aspect of delivering the business, irrespective of what that business is, look at where the synergies exist, and are now taking the experience, the collective experience of the corporation, and the expertise in each of those areas and focusing it on an opportunity set. So the size of our business gives us a huge advantage.

Darren Woods: Yeah, I would just, I guess, one of the way to think about it, Josh, is, you know, for the first time in the history of our corporation, we've organized ourselves to take, to focus on area aspect of delivering the business, irrespective of what that business is, looked at where the synergies exist and are now taking the experience, the collective experience of the corporation and the expertise in each of those areas and focusing it on the opportunity set. So the size of our business, it gives us a huge advantage here, and so a lot of these things you're seeing are accruing by basically taking the best thinking that had occurred in other, you know, around the organization, around the world and then applying that uniformly everywhere it's relevant, and that's happening time and time and time again.

Speaker Change: I would just just I guess, one other way to think about it Josh is for.

Speaker Change: For the first time in the history of our Corporation, we've organized ourselves to take.

Speaker Change: To focus on every aspect of delivering the business irrespective of what that business has looked at where the synergies exist and are now taking.

Speaker Change: The experience the collective experience of the corporation and the expertise in each of those areas and focusing it on an opportunity set so the size of our business.

Speaker Change: Gives us a huge advantage here and so a lot of these things you are seeing are accruing by basically taking the best thinking.

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

Speaker Change: That had occurred in other you know around the organization around the world and then applying that uniformly everywhere, it's relevant and thats happening time, and time and time again, and so I think a very unique capability and capacity that frankly, others can't match and.

Darren Woods: And so I think a very unique capability and capacity that frankly others can't match, and the benefits are showing up in these structural cost savings for sure, also showing up on the revenue side of the equation with respect to, you know, better marketing, better ability to sell into value. So there's a huge benefit to the changes we've been making.

Darren Woods: And so I think it is a very unique capability and capacity that, frankly, others can't match. And the benefits are showing up in these structural cost savings for sure, but also showing up on the revenue side of the equation with respect to, you know, better marketing, and a better ability to sell into value. So there's a huge benefit to the changes we've been making. Now, we have time for one more question. Our final question will be from Bob Brackett.

Speaker Change: The benefits are showing up and these structural cost savings for sure also showing up on the revenue side of the equation with respect.

Speaker Change: Better marketing better ability to sell into value. So there is a huge benefit to the changes we've been making.

Speaker Change: Okay.

Bob Brackett: We have time for one more question. Our final question will be from Bob Brackett with Bernstein Research. Good morning. I'd like to paraphrase for a comment, Darren made, that lithium complexity is misunderstood by the industry, and I'm intrigued. Is that a comment around the marketing and the relative youth of the downstream side, or is it a comment around maybe the upstream and the complexity of processing?

Unknown Speaker: We have time for one more question. Our final question will be from Bob Brackett with Bernstein Research.

Bob Brackett: We have time for one more question. Our final question will be from Bob Brackett with Bernstein research.

Bob Brackett: Good morning, I'd like to paraphrase it creates a comment Darren made that lithium complexity is misunderstood by the industry and I'm intrigued is that a comment around the marketing and the relative youth of.

Speaker Change: On the downstream side or is it a comment around maybe the upstream and the complexity of processing.

Darren Woods: Good morning, Bob. Yeah, that comment I meant to imply for more broadly the whole low-carbon solutions business set; whereas you look at each of those businesses, they've got their unique set of complexities. For lithium in particular, you're taking what is essentially a brand new technology, marrying that with some established technologies for subsurface, some established technologies, you know, above surface, you know, consistent with our processing experiences and refining and chemicals. And so putting those things together in a new business to make a product, I wouldn't say has complexities that people can't comprehend. I would just say they're new, and there haven't been very many people who have worked their way through that.

Darren Woods: Good morning, Bob. Yeah, that comment I meant to apply more broadly to the whole low carbon solutions business set, where as you look at each of those businesses, they've got their unique sets of complexities. For lithium, in particular, you're taking what is essentially a brand new technology, marrying that with some established technologies for subsurface mining, some established technologies, you know, above surface, you know; it's consistent with our processing experiences and refining and chemicals.

Bob Brackett: Good morning, Bob Yeah that comment.

Bob Brackett: To.

Bob Brackett: Imply for more broadly the whole of low carbon solutions business set where as you look at each of those businesses they've got their unique set of complexities for lithium in particular, you're taking what is essentially a brand new technology marrying that with some established technologies for sub service some established.

Bob Brackett: <unk> technologies.

Bob Brackett: Above surface is consistent with our.

Darren Woods: And so putting those things together in a new business to make a product, I wouldn't say it has complexities that people can't comprehend; I would just say they're new. And there haven't been very many people have worked their way through that, where some really unique challenges are in building brand new value chains. And the carbon capture market, as an example, where there is just not an existing market today that pays for carbon removal as being incentivized with government policy; government policy is being formed.

Speaker Change: Processing experiences in refining and chemicals, and so putting those things together in a new business to make a product I wouldn't say has complexities that people can't comprehend I would just say there are new and there haven't been very many people have worked their way through that where some really unique challenges are.

Darren Woods: Where some really unique challenges are, is in the building brand new value chains and the carbon capture market as an example, where there's just, there's not an existing market today that pays for carbon removal as being incentivized with government policy. Government policy is forming. Well, at the same time, you're trying to build the infrastructure to support, you know, that market, the logistics, the supply. And then, at the same time, develop a customer base. And so the complexity that I see in the low carbon space, that's a particularly challenging one because of all the moving parts and all the work that has to be done to try to piece those things together to come up with.

Bob Brackett: As in the built building brand new value chains, and the carbon capture market as an example, where there's just there's not an existing market today that pays for carbon removal is being incentivized with government policy government policy is forming while at the same time you are trying to build the infrastructure to support.

Darren Woods: Well, at the same time, you're trying to build the infrastructure to support, you know, that market, the logistics, the supply, and then, at the same time, develop a customer base. And so the complexity that I see in the low carbon space is a particularly challenging one because of all the moving parts and all the work that has to be done to try to piece those things together to come up with, frankly, a business and business model that is sustainable for the long term and two that generates returns that are competitive in the portfolio. But I have to say, we're geared to do that kind of work, you know; our experience lends itself to that.

Speaker Change: That market the logistics the supply and then at the same time develop a customer base and so the complexity that I see in the low carbon space.

Bob Brackett: That's a particularly challenging one because of all the moving parts and all the work that has to be done to try to piece those things together to come up with frankly, a business and business model that one is sustainable for the long term.

Darren Woods: Frankly, a business and business model that one is sustainable for the long term and two that generates returns that are competitive in the portfolio. But I have to say we're geared to do that kind of work. Our experience, it lends itself to that. And frankly, what Dan and the team is accomplishing, leaning on a lot of the core capabilities of the organization. and we're tackling those challenges and making it really good progress. I think on the hydrogen side of the equation, there's not a real vibrant market or a strongly economic market for a low, virtually carbon-free hydrogen, so that's being developed.

Darren Woods: And frankly, what Dan and the team are accomplishing, leaning on a lot of the core capabilities of the organization, we're tackling those challenges and making really good progress. I think on the hydrogen side of the equation, you know, there's not a... A real vibrant market or a strongly economic market for low, virtually carbon-free hydrogen. So that's being developed.

Dan Ammann: Two that generates returns that are competitive in the portfolio, but I have to say, where we're geared to do that kind of work our experiences it lends itself to that and frankly, what Dan and the team is accomplishing leaning on a lot of the core capabilities of the organization.

Speaker Change: We're tackling those challenges and making really good progress I think on the hydrogen side of the equation you know there's not a.

Speaker Change: A real vibrant market or.

Speaker Change: Strongly economic market for a low virtually carbon free hydrogen so that's being developed obviously the government incentives are supporting that in the short term, but we've got to work our way to a market driven.

Darren Woods: Obviously, government incentives are supporting that in the short term, but we've got to work our way to market-driven forces so that we are competing in an open market and not relying on government subsidies. So that's, I think, one of the challenges in that space. But I think my comment was more generally that there's a lot of...

Darren Woods: Obviously, the government incentives are supporting that in the short term, but we've got to work our way to a market-driven forces so that we are competing in an open market and not relying on government subsidies. So that's, I think, one of the challenges in that space. But I think my comment was more generally that there's a lot of optimism around the low-carbon businesses in general, but if you think about where progress has been made today, most of that's been in the wind and solar and EV areas, and all those are playing into well-established markets. Our generation market is very well-established.

Speaker Change: Forces. So that we are competing in an open market and not relying on government subsidies. So that's I think one of the challenges in that space, but I think my comment was more generally that.

Bob Brackett: There's a lot of.

Darren Woods: Optimism around low-carbon solutions, low-carbon businesses in general, but if you think about where progress has been made to date, most of that's been in the wind and solar and EV areas, and all those are playing into a well-established market. The power generation market is very well established. The automotive industry is very well established. Now they're bringing in new technologies that have some of their own unique challenges, but they're not building brand new markets. In our case, and in some businesses, we're building brand new markets.

Speaker Change: Our optimism around the low carbon solutions low carbon businesses in general, but if you think about where progress has been made to date most of that's been in the wind and solar and EV.

Bob Brackett: Areas and all of those are playing into well established markets power generation market is very well established the automotive industry is very well established now they're bringing in new technologies that have some of their own unique challenges, but theyre not building brand new markets.

Bob Brackett: The automotive industry is very well-established. Now, they bring in new technologies that have some of their own unique challenges, but they're not building brand-new markets. In our case, and some of the businesses, we're building brand new markets. Yeah, that's very clear. Thanks for that. You've had a good talk.

Bob Brackett: In our case.

Bob Brackett: Some of the businesses, we are building brand new markets.

Speaker Change: Yes, that's very clear thanks, a lot.

Speaker Change: You bet.

Operator: Thank you, Bob. And thanks, everybody, for joining the call and for your questions.

Bob Brackett: Thank you Bob.

Operator: And thanks everybody for joining the call. And for your questions; we're going to post the transcript of this call in the investors section of our website by early next week. But before we wrap up, I want to draw your attention to a couple of topics. First, a reminder, later this month we will be issuing our annual Global Outlook, which includes our latest views on energy demand and supply through 2050 and which forms the basis for our business planning.

Speaker Change: And thanks, everybody for joining the call and for your questions. We're going to post the transcript of this call to the investors section of our website by early next week.

Operator: We're going to post the transcript of this call to the investors' section of our website by early next week. But before we wrap, I want to draw your attention to a couple of topics.

Operator: And second, please mark your calendars for our corporate plan update and upstream spotlight. This is going to be on Wednesday, December 11th, and for more information on that, again, please see the investors section of our website. With that, have a nice weekend, and I'll turn it back to the operator to conclude.

Bob Brackett: But before I wrap I want to draw your attention to a couple of topics.

Operator: First, a reminder: later this month, we will be issuing our annual global outlook, which includes our latest views on energy demand and supply through 2050, and which forms the basis for our business planning.

Speaker Change: First a reminder.

Bob Brackett: Later this month, we will be issuing our annual global outlook.

Bob Brackett: Which includes our latest views on energy demand and supply through 2050, and which forms the basis for our business planning and second.

Operator: And second, please mark your calendars for our corporate plan update and upstream spotlight, which is going to be on Wednesday, December 11, and for more information on that. Again, please see the investor section of our website.

Bob Brackett: Please mark your calendars for our corporate plan update and upstream spotlight.

Bob Brackett: Which is going to be a Wednesday December 11th and for more information on that.

Bob Brackett: Please see the investors section of our website.

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

Speaker Change: So with that last weekend and I'll turn it back to the operator to conclude.

Operator: Thank you.

Operator: Thank you. This concludes today's call. We thank everyone again for their participation. You may disconnect at this time.

Speaker Change: Thank you. This concludes today's call. We thank everyone again for their participation you may disconnect at this time.

Operator: This concludes today's call. We thank everyone again for their participation. You may disconnect at this time.

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Bob Brackett: Okay.

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