Q3 2025 Exxon Mobil Corp Earnings Call

And Investor Relations.

And I am joined by Darren Woods, Chairman and Chief Executive Officer.

And Kathy Michaels Senior Vice President and Chief Financial Officer.

This quarters presentation, and prerecorded remarks are available on the investors section of our website.

Good morning, everyone. Welcome to Exxon Mobil's third quarter 2025 earnings call. Today's call is being recorded. We appreciate you joining us.

They are meant to accompany that third quarter earnings press release, which is posted in the same location.

I'm Jim Chapman, Vice President, Treasurer, and Investor Relations.

And I'm joined by Darren Woods, chairman and chief executive officer.

During today's presentation, we will make forward looking remarks, including comments on our long term plans, which are subject to risks and uncertainties.

And Captain Michaels, Senior Vice President and Chief Financial Officer.

This quarter's presentation and pre-recorded remarks are available on the investors section of our website.

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.

They are meant to accompany the third quarter earnings press release, which is posted in the same location.

In our SEC filings on our web site.

We also provide supplemental information at the end of our earnings slides, which are also posted on our website and now I'll turn it over to Darin for opening remarks.

During today's presentation, we'll make forward-looking remarks including comments on our long-term plans which are subject to risks and uncertainties.

Please read our cautionary statement on slide 2.

Good morning, and thanks for joining us.

You can find more information on the risks and uncertainties that apply to any forward-looking statements.

Last December we reviewed our corporate plan under the theme of a league of our own.

Darren Woods: We also provide 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. Good morning, and thanks for joining us. Last December, we reviewed our corporate plan under the theme of "A League of Our Own." The results we've delivered since then continue to support that theme. From the technologies we're deploying to the major projects we're delivering to the structural cost savings we're capturing and the value we're creating, our results are truly in "A League of Their Own." In fact, in Q3, we delivered our highest earnings per share compared to other quarters in a similar price environment. Let's start in Guyana, where we're breaking records with production of more than 700,000 barrels per day in the quarter. We brought Yellowtail online four months ahead of schedule.

And our SEC filings are available on our website.

The results. We've delivered since then continues to support that theme from the technologies, we're deploying to the major projects we are delivering to.

We also provide 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.

Good morning and thanks for joining us.

To the structural cost savings, we're capturing and the value we're creating our results are truly in a league of their own.

Last December, we reviewed our corporate plan under the theme of "A League of Our Own."

In fact in the third quarter, we delivered our highest earnings per share compared to other quarters and a similar price environment.

The results we've delivered since then continues to support that theme.

From the Technologies. We're deploying to the major projects. We're delivering

Dart in Guyana, where we're breaking records.

With production of more than 700000 barrels per day in the quarter.

To the structural cost savings, we're capturing and the value. We're creating our results are truly in A League of Their Own.

We brought yellow tell online four months ahead of schedule, it's our fourth and largest development with production capacity of 250000 barrels per day, yes.

Yellow tail was delivered at nearly the same time as previous F. P. S. O's, despite a 70% increase in facility weight from its higher production capacity and improvements in G. H G performance we.

In fact, in the third quarter, we delivered our highest earnings per share compared to other quarters in a similar price environment. Let's start in Guyana, where we're breaking records with the production of more than 700,000 barrels per day in the quarter.

Darren Woods: It's our fourth and largest development, with production capacity of 250,000 barrels per day. Yellowtail was delivered at nearly the same time as previous FPSOs, despite a 70% increase in facility weight from its higher production capacity and improvements in GHG performance. We also sanctioned our seventh development, Hammerhead, which is expected to begin production in 2029. Importantly, we're making a positive and growing local impact. Guyanese now make up over two-thirds of the country's oil and gas workforce, more than 6,000 people, with more than 2,000 local businesses engaged. In the Permian Basin, another advantaged asset, we set yet another production record of nearly 1.7 million oil-equivalent barrels per day. We also acquired more than 80,000 net high-quality acres in the Midland Basin from Sinicon Petroleum. The transaction provides control of drilling locations and opportunities to further deploy our technology to drive greater returns.

We also sanctioned our seventh development hammerhead, which is expected to begin production in 2029.

And importantly, we're making a positive and growing local impact.

Guyanese now make up over two thirds of the country's oil and gas workforce.

It's our fourth and largest development, with a production capacity of 250,000 barrels per day. Yotel was delivered in nearly the same time as previous FPSOs, despite a 70% increase in facility weight from its higher production capacity and improvements in GHG performance.

More than 6000 people with more than 2000 local businesses engaged.

We also sanctioned our seventh development Hammerhead, which is expected to begin production in 2029.

In the Permian basin, another advantaged asset we set yet another production record of nearly $1 7 million oil equivalent barrels per day. We also acquired more than 80000 net high quality acres in the Midland Basin.

And importantly, we're making a positive and growing local impact.

Gains now make up over two-thirds of the country's oil and gas workforce.

More than 6,000 people.

Signing and petroleum.

With more than 2,000 local businesses engaged.

<unk> provides control of drilling locations and opportunities to further deploy our technology to drive greater returns.

It's another example of bringing our portfolio advantages to an acquisition ensuring that one plus one equals three or more.

In the Permian Basin, we set yet another production record of nearly 1.7 million oil equivalent barrels per day. We also acquired more than 80,000 net high-quality acres in the Midland Basin from Sonic and Petroleum.

In addition, during the quarter multiple third parties published reports validating the benefits of our lightweight proppant.

Darren Woods: It's another example of bringing our portfolio advantages to an acquisition, ensuring that one plus one equals three or more. In addition, during the quarter, multiple third parties published reports validating the benefits of our lightweight proppant. Last December, we shared how we're using low-cost refinery coke as a proppant that penetrates deeper into fracs. This improves access and flow, which increases well recoveries by up to 20%. Wood Mackenzie reported that our proprietary proppant is delivering significant improvements in resource recovery, supporting our own results. They acknowledged that our upstream integration with refining operations creates a strategic advantage that's difficult for others to replicate. That lightweight proppant is just one of many innovations we're developing to maximize upstream recoveries and grow the value of our unconventional business.

The transaction provides control of drilling locations, and opportunities to further deploy. Our technology to drive greater returns.

Last December we shared how we're using low cost refinery coke is a proppant that penetrates deeper into fracs.

It's another example of bringing our portfolio advantages to an acquisition ensuring that 1 plus 1 equals 3 or more

This improves access and flow, which increases well recoveries by up to 20%.

Wood Mackenzie reported that our proprietary proppant is delivering significant improvements in resource recovery supporting our own results.

In addition, during the quarter, multiple third parties published reports validating the benefits of our lightweight proppant.

They acknowledged that our upstream integration with refining operations create a strategic advantage that is difficult for others to replicate.

Last December, we shared how we're using low-cost Refinery Coke as a prompt to penetrates deeper into fracks.

This improves access and flow, which increases recoveries by up to 20%.

And that lightweight proppant is just one of many innovations, we're developing to maximize upstream recoveries and grow the value of our unconventional business.

With McKenzie reported that our proprietary profit is delivering significant improvements in resource recovery supporting our own results.

This year, we expect about a quarter of our wells, we use our new patented proppant and.

They acknowledge their upstream integration with refining operations, creating strategic advantage. This is difficult for others to replicate.

And roughly 50% of new wells by the end of 2026.

This along with our cube development.

Pipeline of new technologies, and deep inventory of quality acreage is why our Permian production continues to grow well into the next decade.

Darren Woods: This year, we expect about a quarter of our wells will use our new patented proppant and roughly 50% of new wells by the end of 2026. This, along with our cube development pipeline of new technologies and deep inventory of quality acreage, is why our Permian production continues to grow well into the next decade. This is an important point as it clearly differentiates us from our competitors, who are talking about reduced investments, peak production, or a shift to harvest mode. In our corporate plan update in December, we'll share more on our Permian success and how it's strengthening the value proposition of our broader portfolio. Many of the world technologies are also playing a critical role, albeit on a slightly longer time frame, in our product solutions business. We're making solid progress with new products based on our Proxxima systems. This year, we're tripling production capacity.

And that lightweight propping is just 1 of many Innovations. We're developing to maximize Upstream recoveries and grow the value of our unconventional business.

This year, we expect about a quarter of our wells to use our new patented proppant.

This is an important point as it clearly differentiates us from our competitors are talking about reduced investments peak production or a shift to harvest mode.

And roughly 50% of new wells by the end of 2026.

This along with our Cube development.

Pipeline of new technologies.

And our corporate plan update in December we will share more on our Permian success, and how it's strengthening the value proposition of our broader portfolio.

And deep inventory of quality acreage is why our permanent production continues to grow well into the next decade.

New to the World Technologies are also playing a critical role, albeit on a slightly longer timeframe in our product solutions business.

This is an important Point as it clearly differentiates us from our competitors who are talking about reduced Investments Peak production, or a shift to harvest mode.

We're making solid progress with new products based on approximate systems.

This year, we're tripling production capacity at the same time, we're continuing to demonstrate significant value in use.

Our corporate Plan update in December, will share more on our permanent success and how it's strengthening the value proposition of our broader portfolio.

With our approximate based rebar, we've demonstrated a 40% improvement in installation efficiency compared to steel.

Move the world. Technologies are also playing a critical role, albeit on a slightly longer time frame, in our product solutions business.

We're making solid progress with new products based on our approximate systems.

We've also introduced a new one code solution for marine cargo tanks that replaces the standard three coat process.

Darren Woods: At the same time, we're continuing to demonstrate significant value in use. With our Proxxima-based rebar, we've demonstrated a 40% improvement in installation efficiency compared to steel. We've also introduced a new one-coat solution for marine cargo tanks that replaces the standard three-coat process. This cuts coating time in half, speeds up return to service, and delivers significant cost savings. These performance gains are helping us penetrate large established markets and key segments, where we're building the foundation of a strong pipeline of opportunities. We've had significant interest in our Proxxima battery enclosures from Tier 1 auto OEM suppliers, based on the fast production speed and light weighting provided by our product. In 2026, we have the opportunity to demonstrate the superior subsea insulation and installation characteristics of our Proxxima products in the oil and gas sector on our own hammerhead development FPSO.

This year, we're tripling production capacity while continuing to demonstrate significant value and use.

This cuts coding time in half speeds up returned to service and deliver significant cost savings.

With our proximal based rebar, we've demonstrated a 40% Improvement in installation, efficiency compared to steel.

These performance gains are helping us penetrate large established markets in key segments.

Where we're building the foundation of a strong pipeline of opportunities.

We've also introduced a new 1 Cote solution for marine cargo tanks that replaces the standard 3 coat process.

We've had significant interest in our proxima battery and closures.

From tier one auto OEM suppliers based on the fast production speed and light weighting provided by our product.

This Cuts coding time in half, speeds up return to service and delivers significant cost savings.

These performance gains are helping us penetrate large established markets and key segments.

In 2026, we have the opportunity to demonstrate the superior subsea installation and installation characteristics of our approximate products in the oil and gas sector, our own hammerhead F. P. S O.

We're building the foundation of a strong pipeline of opportunities.

We've had significant interest in our Proxima battery enclosures.

From Tier 1 auto OEM suppliers.

And then our rebar infrastructure opportunities are expected to yield approximately 20000 tons of sales by 2027.

Based on the fast production speed and lighting provided by our product.

Through our signed Mou with mass Darren go all steel investments in proximate based rebar manufacturing facilities will grow over the next two years.

Darren Woods: Our rebar and infrastructure opportunities are expected to yield approximately 20,000 tons of cells by 2027. Through our signed MOUs with Masdar and Goel Steel, investments in Proxxima-based rebar manufacturing facilities will grow over the next two years. This will allow us to scale quickly into these fast-growing markets. In Singapore, we successfully started up our resid upgrade project and are converting low-value fuel oil into high-value lubricant products and diesel using a proprietary catalyst at scale. Project utilization is currently around 80%, ramping to full capacity by year-end, with our new world base stock on-grade and delivered to customers. We've also progressed the development of our revolutionary battery anode graphite that can deliver breakthrough improvements in battery performance. Early feedback from leading auto OEMs and battery producers has been promising.

In 2026, we have the opportunity to demonstrate the superior subk, insulation, and installation characteristics of our proximal products in the oil and gas sector our own hammerhead fpso.

This will allow us to scale quickly into these fast growing markets.

In Singapore, we successfully started up our reserve upgrade project and are converting low value fuel oil into high value lubricant products and diesel using a proprietary catalyst at scale.

and then our rebar infrastructure opportunities are expected to yield approximately 20,000, tons of cells by 2027

Project utilization is currently around 80% ramping to full capacity by year end.

Through our signed mous with masdar and goel steel investments. In proximal based rebar manufacturing facilities will grow over the next 2 years. This will allow us to scale quickly into these fast growing markets.

With our new to the World base stock on grade and deliver to customers.

We've also progressed the development of our revolutionary battery anode graphite that can deliver breakthrough improvements in battery performance.

In Singapore, we successfully started up our res upgrade project and are converting low-value fuel oil into high-value, lubricant products and Diesel using a proprietary Catalyst at scale.

Early feedback from leading auto Oems and battery producers has been promising.

Project utilization is currently around 80% ramping to full capacity by year end.

With our newer world based stock on grade and delivered to customers.

They're testing shows the batteries can be charged 30% faster.

Divide a 30% increase in effective range and last up to four times longer.

Breakthrough improvements in battery performance.

This quarter, we also announced the acquisition of key assets from superior graphite a leader in the graphite and specialty carbon market.

Darren Woods: Their testing shows the batteries can be charged 30% faster, providing a 30% increase in effective range, and last up to four times longer. This quarter, we also announced the acquisition of key assets from Superior Graphite, a leader in the graphite and specialty carbon market. Working with their team and incorporating their proprietary technology, we will develop and scale a differentiated graphitization process. That is higher throughput, 50% more energy efficient, and significantly lower cost than available industry alternatives today. We also commissioned our newest supercomputer, Discovery 6. Developed with Hewlett Packard Enterprise and NVIDIA, delivering a step change in exploration and seismic processing. This is the world's 17th most powerful computer. Seismic processing that used to take months now takes just weeks.

Early feedback from leading auto OEMs and battery producers has been promising.

Working with their team and incorporating their proprietary technology, we will develop and scale a differentiated graphic <unk> process as higher throughput, 50% more energy efficient and significantly lower cost than available industry alternatives today.

their testing shows the batteries can be charged 30% faster, provide a 30% increase in effective range and last up, to 4 times longer,

This quarter, we also announced the acquisition of key assets from Superior graphite, a leader in the graphite, and Specialty carbon Market.

We also commissioned our newest supercomputer discovery six.

Developed with Hewlett Packard enterprise and <unk>, delivering a step change in exploration and seismic processing.

This is the world's 17th most powerful computer.

Working with 13 and incorporating their proprietary technology. We will develop and scale a differentiated graphitization process that is higher throughput. 50% more energy, efficient and significantly lower cost than available industry Alternatives today.

Seismic processing that used to take months now takes just weeks.

We also commissioned our newest supercomputer, Discovery 6.

As already having impact in Guyana.

Enabling more than $1 billion in potential value capture from increased resource recovery at our first six F dsos and the stay broke block.

Developed with Hulett Packard Enterprise and Nvidia delivering a step change in exploration in seismic processing.

This is the world's 17th most powerful computer.

Our longstanding focus on and investment in technical innovation is paying dividends when coupled with the capabilities. We've developed an execution excellence.

Darren Woods: It's already having an impact in Guyana, enabling more than $1 billion in potential value capture from increased resource recovery at our first six FPSOs in the Stabroek block. Our longstanding focus on and investment in technical innovation is paying dividends. When coupled with the capabilities we've developed in execution excellence, we deliver results that others can't match. You've seen it this year with our global projects organization and the eight key startups we've highlighted to date, which includes some of the industry's largest and most complex projects. Our Proxxima systems expansion and Golden Pass LNG project both remain on track for startup around year-end, completing the last two of our 10 key 2025 startups. Together, these 10 projects establish an important foundation to our 2030 earnings and cash flow growth plans. They're expected to drive more than $3 billion in earnings contributions next year at constant prices and margin.

Seismic processing that used to take months now takes just weeks.

Is already having an impact in Guyana?

We deliver results that others can't match.

You've seen it this year with our global projects organization and the eight key startups, we've highlighted to date.

Enabling more than a billion dollars in potential value, capture from increased resource recovery at our first 6 FPS O's in the stabber block.

Which includes some of the industry's largest and most complex projects are approximate systems expansion and Golden pass LNG project. Both remain on track for start up around year end <unk>.

Our long-standing focus on an investment in technical Innovation, is paying dividends when coupled with the capabilities we've developed in execution excellence.

We deliver results that others can't match.

Completing the last two of our 10 key 2025 startups together. These 10 projects established an important foundation to our 2030 earnings and cash flow growth plans.

You see it this year with our Global projects organization and the 8 key startups, we've highlighted to date.

They are expected to drive more than $3 billion in earnings contributions next year at constant prices and margin.

Which includes some of the industry's largest and most complex projects. Our approximate systems expansion in the Golden Pass LNG project both remain on track for startup around year-end.

Before closing I want to briefly touch on our new tool, we introduced in the quarter to make it easier for our retail shareholders to support their company and vote their shares.

Completing the last two of our ten key 2025 startups together. These ten projects establish an important foundation for our 2030 earnings in cash flow. Growth plans.

In September we introduced a first of its kind free often voting program for our millions of retail shareholders.

Darren Woods: Before closing, I want to briefly touch on a new tool we introduced in the quarter to make it easier for our retail shareholders to support their company and vote their shares. In September, we introduced a first-of-its-kind, free opt-in voting program for our millions of retail shareholders. Typically, only about a quarter of them, who own almost 40% of the company, vote at our annual meetings. We think shareholder participation should be the norm, not the exception. Our program, approved by the U.S. Securities and Exchange Commission, allows participants who choose to opt in to have their shares automatically voted to support management's recommendations. The program is completely optional, and participants can easily change their votes or opt out at any time.

they're expected to drive more than 3 billion dollars in earnings contributions next year at constant prices and margin.

Typically only about a quarter of them growing almost 40% of the company vote at our annual meetings.

Before closing, I want to briefly touch on a new tool we introduced in the quarter to make it easier for our retail shareholders to support their company and vote their shares.

We think shareholder participation should be the norm not the exception.

In September, we introduced a first of its kind.

Our program approved by the U S Securities and Exchange Commission.

Free opt-in voting program for our millions of retail shareholders.

How's participants who choose to opt in to have their shares automatically voted support management's recommendations.

Typically, only about a quarter of them go, while almost 40% of the company votes at our annual meetings.

The program is completely optional and participants can easily change their votes or opt out at any time.

We think shareholder participation should be the norm, not the exception.

Since implementing it we've been very encouraged by the positive feedback we've received.

Especially from other companies looking to replicate the program and make it easier for the voices of their retail shareholders to be heard. This is just one more example of the work we're doing to grow shareholder benefits and value.

Our program, approved by the U.S. Securities and Exchange Commission, allows participants who choose to opt in to have their shares automatically voted to support management's recommendations.

Darren Woods: Since implementing it, we've been very encouraged by the positive feedback we've received, especially from other companies looking to replicate the program and make it easier for the voices of their retail shareholders to be heard. This is just one more example of the work we are doing to grow shareholder benefits and value. Stepping back, looking at the quarter and reflecting on the year-to-date results, we feel good about the progress we're making. We're delivering on all the challenging commitments we made, consistent with our track record since the pandemic and setting the pace for industry. We're deploying innovative technologies that are delivering new world approaches, processes, and products that drive industry-unique value. We're transforming how and where we work to improve our effectiveness and deliver structural cost reductions that exceed all of our competition.

The program is completely optional, and participants can easily change their votes or opt out at any time.

Stepping back looking at the quarter and reflecting on the year to date results.

We feel good about the progress we're making.

We're delivering on all the challenge of commitments, we made consistent with our track record since the pandemic and.

Since implementing it, we've been very encouraged by the positive feedback. We've received, especially from other companies looking to replicate the program, and make it easier for the voices of their retail shareholders to be heard.

This is just one more example of the work we are doing to grow shareholder benefits.

In setting the pace for industry.

And value.

Deploying innovative technologies that are delivering new the world approaches processes and products that drive industry unique value.

Stepping back. Looking at the quarter and reflecting on the year results. We feel good about the progress we're making.

We're transforming how and where we work to improve our effectiveness and deliver structural cost reductions that exceed all of our competition.

We're delivering on all the challenge and commitments, we made consistent with our track record since the pandemic.

And setting the pace for the industry.

Finding the industry benchmark and project execution for schedule and cost.

On an unmatched number of projects.

For deploying innovative technologies that are delivering new approaches to processes and products, we drive industry-unique value.

Most importantly, we're strengthening our competitive advantages and frankly, all aspects of our business to deliver earnings and cash flow growth now and far into the future.

Darren Woods: We're defining the industry benchmark in project execution for schedule and cost on an unmatched number of projects. Most importantly, we're strengthening our competitive advantages and, frankly, all aspects of our business to deliver earnings and cash flow growth now and far into the future. Looking forward, I'm confident we will remain in a league of our own. With that, we're happy to answer your questions. Thank you, Darren. Before we move to Q&A, I have a quick announcement to share. Please mark your calendar for our annual corporate plan update, a virtual event this year, for Tuesday, December 9 at 9:00 A.M. Central Time. With that, we'll move to Q&A. Please note that we ask each analyst to limit themselves to one question as a courtesy to others. Operator, please open the line for our first question. Thank you. The question and answer session will be conducted electronically.

We're transforming how and where we work to improve our Effectiveness and deliver structural cost, reductions that exceed all of our competition.

We're defining the industry Benchmark in Project, execution for schedule and cost.

Looking forward I am confident we will remain in a league of our own.

On an unmatched number of projects.

With that we're happy to answer your questions.

Thank you Dara.

Before we move to Q&A I have a quick announcement. This year. Please mark your calendar for our annual corporate plan update a virtual event. This year for Tuesday December night at nine a M central time.

And most importantly, we're striving our competitive advantages. And frankly all aspects of our business to deliver earnings and cash flow growth. Now, and foreign to the Future.

Looking forward, I’m confident we will remain in a league of our own.

With that, we're happy to answer your questions.

With that we'll move to Q&A. Please note that we ask each analyst to limit themselves to one question as a courtesy to others.

Thank you. Darren.

Before we move to the Q&A, I have a quick announcement to share.

And operator, please open line for our first question.

Please mark, the calendar for our annual corporate Plan, update a virtual event this year.

Thank you the question and answer session will be conducted electronically maybe you'd like to ask a question. Please do so by pressing the star key although by the digit one on your telephone.

For Tuesday, December 9th at 9:00 a.m. Central Time,

With that, we'll move to Q&A. Please note that we asked each analyst to limit themselves to one question as a courtesy to others.

The first question comes from Neil Mehta of Goldman Sachs.

And operator, please open the line for our first question.

Darren Woods: If you'd 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. Yeah, good morning, Darren, and good morning, team. I just wanted to pick up on the capital spend point. You are indicating that you're going to be below the range this year, and of course, we'll get a little more color on December 9 about how you're thinking about 2026. Could you talk about the moving pieces? Is it about capturing deflation? Is it about deferring investment, particularly around some of the low-carbon solutions? How should we be thinking about the drivers of that? Sure. Good morning, Neil. Thanks for calling in. I may take you back to the corporate plan presentation we gave last December where we talked about our CapEx spend.

Yes, good morning, Darren and good morning team I just wanted to pick up on the capital spend point, you are indicating that youre going to be below.

Thank you. The question and answer session will be conducted electronically. If you'd like to ask a question, please do so by pressing the star key, followed by the digit 1 on your telephone.

The range this year and of course, we'll get more color on December 9th about how youre thinking about 2026, but could you talk about the moving pieces is about capturing deflation is it deferring investments, particularly around some of the low carbon solutions, how should we be thinking about the drivers of that sure.

The first question comes from Nil, Meta of Goldman Sachs.

Neil.

Thanks for calling in.

Yeah, Let me take you back to the corporate plan presentation. We gave last December when we talked about our capex spend and we broke it excuse me we've broken down between the base and then some of the things that we're pursuing where.

Yeah, good morning Darren and, and good morning team. I I just wanted to pick up on on the capital spend Point. Uh, you are indicating that you're going to be below, uh, the the range, uh, this year. And, of course, we'll get a little more color on December 9th about how you're thinking about 2026, but could you talk about the moving pieces? Is it about capturing? Deflation is it about uh, deferring investment, particularly around some of the low carbon Solutions. How should we be thinking about, uh, the drivers of that?

We had to develop the markets has developed a sales we're looking at policy coming in place and we indicated at the time that that capital would move depending on what we saw in the market and how those markets developed and that's exactly what we're seeing as we've gone forward and some of these new ventures, particularly low carbon Soc solution portfolio Mark has not developed.

Sure. Good morning. Neil. Um, thanks for calling in.

Darren Woods: We broke it down between the base and then some of the things that we were pursuing where we had to develop the markets, had to develop the sales. We're looking at policy coming in place. We indicated at the time that that capital would move depending on what we saw in the market and how those markets developed. That's exactly what we're seeing as we've gone forward in some of these new ventures, particularly low-carbon solution portfolio. Market's not developing as fast as we had planned for, and we are pacing the spend in that as consistent with what we talked about. From my perspective, it's much easier to plan on doing something and then pull back than it is to not plan on something and then try to rush into it.

Ping as fast as we had planned for and so we are pacing the spend and that is consistent with what we talked about.

From my perspective, it's much easier to plan on doing something and then pulled back than it is to not plan on something and then try to rush into it. So we feel really good about where we're at with that and continue to watch and we'll continue to pace the.

The market as it develops and as we see the demand for some of those products grow. The other point I would just make is we provide that range going out in time and that reflects really the uncertainty around exactly when all of the projects in our portfolio get F I need or get as they progress and when exactly those things happen.

Darren Woods: We feel really good about where we're at with that and continue to watch, and we'll continue to pace the market as it develops and as we see the demand for some of those products grow. The other part I would just make is we provide that range going out in time, and that reflects really the uncertainty around exactly when all the projects in our portfolio get FIDed or as they progress. When exactly those things happen are hard to call far into the future. We give ourselves—we recognize that variability and make sure that we encompass that in the range that we provide. I would expect as we go forward, you'll see some of that movement, just frankly, because you can't predict exactly when that capital spend will happen as you're executing a project. We feel good about where we're at.

Yeah, it may take you back to the corporate plan. Presentation, we gave last December, where we talked about our capex spend, and we broke it. Excuse me, we broke it down between the base and then some of the things that we were pursuing where, um, we had to develop the markets, had to develop the sales, we're looking at policy coming in place and we indicated at the time that that Capital would move depending on what we saw in the market and how those markets developed. And that's exactly what we're seeing as we've gone forward in some of these new Ventures, uh, particularly low carbon sole solution, portfolio, markets, not developing as fast as we had planned for. And so, we are pacing the spend and that as consistent with what we talked about, you know, from our my my perspective, it's much easier to plan on doing something and then pull back than it is to not plan on something, and then try to

Hard to call far into the future. So we give ourselves and we recognize that variability and make sure that we accomplished that in the range that we provide and so I would expect as we go forward, you'll see some of that movement, just frankly, because you can't.

Predict exactly when that capital spend will happen as you're executing a project, but we feel good about where we're at we feel good about where that underwriting is coming from I would also say, we're getting a really good productivity on the capital we're spending in the Permian as well.

Which is a benefit.

Rush into it. So we feel really good about, uh, where we're at with that and continue to watch. And we'll continue to Pace, uh, the market as, as it develops and as we see the demand for some of those products grow, the other part, I would just make is we provide that range uh, going out in time and that reflects really the uncertainty around exactly when all the projects in our portfolio, get FID or get, you know, as they progress and when exactly those things happen, are hard to call far into the future, but so we give ourselves. So we recognize that variability and make sure that we Encompass, that in the range that we provide. And so I would expect as we go forward. You'll see some of that movement, just frankly because you can't

And then all I would add to that is obviously, we had an acquisition.

Darren Woods: We feel good about where that underrun is coming from. I'd also say we're getting a really good productivity on the capital we're spending in the Permian as well, which is a benefit. All I would add to that is, obviously, we had an acquisition, actually a couple of acquisitions this quarter in total, $2.4 billion. When we gave that guidance that we expect to be a bit below the low end of the $27 to $29 billion cash CapEx, that's excluding those M&A transactions. We obviously don't plan for those transactions, so that's why we excluded them. Thanks, Darren. Thanks, Kathy. Sure. Thank you, Neil. The next question is from Devin McDermott of Morgan Stanley. Hey, good morning. Thanks for taking my question. Sure. Good morning, Devin. Good morning. Wanted to dive into the Permian a bit more. It's record production results in the quarter.

A couple of acquisitions this quarter and total $2 $4 billion. So when we gave that guidance that we expect to be a bit below the low end of that $27 million to $29 million cash capex, that's excluding those M&A transactions and we obviously don't plan for those transactions.

Predict exactly when that capital spend will happen as you're executing a project. But we feel good about where we're at. We feel good about where that underground is coming from. I'd also say we're getting really good productivity on the capital. We're spending in the permitting as well, which is a benefit.

That's why we excluded them.

Thanks, Dara Thanks, Cathy sure. Thank you Neil.

The next question is from Devin Mcdermott of Morgan Stanley.

Hey, good morning, Thanks for taking my question sure good morning Devin.

And then all I would add to that is obviously we had an acquisition, uh, actually a couple of Acquisitions this quarter in total 2.4 billion dollars. So when we gave that guidance, that we expect to be a bit below, the low end of the 27 to 29 billion dollar cash, capex, that's excluding, uh, those m&a transactions and we obviously don't plan for those transactions so that's why we excluded them.

Wanted to.

Thanks Darren. Thanks Kathy.

I wanted to dive into the Permian a bit more its record production results in the quarter. You also raised the guide for the full year I was hoping you could unpack the drivers for us a little bit more are we already seeing some outperformance is a result of your advanced proppant rollout different other changes you've made your development space.

Sure, thank you. Neil.

The next question is from Devin McDermott of Morgan Stanley.

Hey, good morning. Thanks for taking my question.

Darren Woods: You also raised the guide for the full year. I was hoping you could unpack the drivers for us a little bit more. Are we already seeing some outperformance as a result of your advanced proppant rollout? Have there been other changes you've made to development or spacing? How does this all impact how you're thinking about the capital and activity requirements to achieve your multi-year growth targets? Yeah, thanks, Devin. I would say if you look at what we're doing in the Permian and the. Innovation that's occurring with that organization. It is hard to predict the improvements when you're planning ahead of time. What the team is constantly doing is looking for how they can improve and evaluating what they've been doing and then making changes on the fly.

And how does it at all impact how you're thinking about the capital and activity requirements to achieve your multi year growth targets. Yeah. Thanks, Devin and I would say if you look at what we're doing in the Permian and the.

Innovation, that's occurring with that organization.

It is hard to predict the improvements when Youre planning ahead of time, but what the team is constantly doing is looking for how they can improve and evaluating what they've been doing and then making changes on the fly we've been testing.

Good morning. Wanted to dive into the puran a bit more. It's record production. Results in the quarter. You also raised the guide for the full year. I was hoping you could unpack the drivers for us a little bit more. Are we already seeing some outperformance as a result of your Advanced profit roll out, have there been other changes you've made to development or spacing? And how does this all Impact how you're thinking about the capital and activity? Requirements to achieve your multi-year growth targets?

Yeah, thanks, Devin. And I would say, if you look at what we're doing in the Permian, um, and the...

A whole pipeline of potential technology.

Options that will unlock resource lower our capital costs and were seeing improvements across a range of those technologies as we implement them. So we feel really good about the productivity of what we're seeing in the Permian I feel really good about what the team is looking at to grow the production and when we talk.

Darren Woods: We've been testing a whole pipeline of potential technology options that will unlock resource, lower our capital cost, and we're seeing improvements across the range of those technologies as we implement them. We feel really good about the productivity of what we're seeing in the Permian. I feel really good about what the team is looking at to grow the production. When we talk to you in December with the plan, you'll see that every year we're looking to kind of build that improvement into the plan outlook. It's not any one single thing. It is a function of a lot of hard work by the team, a lot of innovation, and the technology organization continuing to bring good ideas into the field that is resulting in better production, more effective capital deployment. Look forward to learning more in December. Thanks. Sure. Thank you.

Innovation, that's occurring with that organization. Uh, it is hard to predict the improvements, uh, when you're planning ahead of time. But what the team is constantly doing is looking for how they can improve and evaluating what they've been doing. And, and then making changes on the Fly. We've been, uh, testing a a whole pipeline of potential technology. Um,

To you in December with the plan, you'll see that we every year, we're looking to kind of build that improvement into the plan outlook. So it's hard to it's not any one single thing. It is a function of a lot of hard work by the team a lot of innovation in the technology organization continuing to bring a good ideas into the.

Field that is resulting in better production more effective capital deployment.

Look forward to learning more in December. Thank you. Thank you.

The next question is from Iran. Ziram of J P. Morgan.

Yeah. Good morning, I had a little bit of a bigger picture question Exxon recently published its global outlook through 2050.

Deployment.

Look forward to learning more in December. Thanks.

Sure, thank you.

Darren Woods: The next question is from Arun Zayaram of JPMorgan. Yeah, good morning. I had a little bit of a bigger picture question. ExxonMobil recently published its global outlook through 2050, and it includes around 5% oil growth, 20% gas growth, and a doubling of LNG demand called over the next 25 years. I was wondering if you could talk about how this outlook informs your strategy and how should we think about where the puck will go in terms of future organic or inorganic opportunities for the company? Yeah. Thanks for the question, Arun. With respect to the first part of your question, the global outlook is the foundation on which we think about our strategy and then build our plans. Obviously, it's difficult to predict with precision how things are going to move, particularly in the short term.

And includes around 5% oil growth, 20% gas growth.

The next question is from Arun zaram of JP Morgan.

And a doubling of LNG demand call. It over the next 25 years I was wondering if you could talk about how this outlook.

Informs your strategy and how should we think about.

Yeah, good morning. I had a little bit of a bigger picture question. Uh, Exxon recently published its Global Outlook through 2050, and it includes around 5% oil growth.

Where the puck will go in terms of future organic or inorganic opportunities for the company.

Yeah sure. Thanks for the question around it is with respect to the first part of your question. The global outlook is the foundation on which we.

20% gas growth in a doubling of LNG demand called over the next 25 years. I was wondering if you could talk about how this outlook.

Think about our strategy and then build our plans obviously, it's difficult to predict with precision how things are going to move, particularly in the short term, but longer term, we focus on the fundamentals where the economic growth is happening to what level is happening how technologies developing what policies are being put in place and then.

Informs your strategy, and how should we think about, you know, where the puck will go in terms of future organic or inorganic opportunities for the company?

Try to synthesize all of that into an outlook and have been doing that for as long as I can remember in this company.

Darren Woods: Longer term, we focus on the fundamentals where the economic growth is happening, to what level it's happening, how technology is developing, what policies are being put in place, and then try to synthesize all that into an outlook. We have been doing that for as long as I can remember in this company. It doesn't change a whole lot year to year, but it does form the foundation of how we think about things. You may recall back during the pandemic when people were extrapolating from a very unusual market condition. We remained focused on what our long-term outlook was telling us and continued to make investments when a lot of other people have pulled back during that time. That has proven to be the right approach as time moved on.

It doesn't change a whole lot year to year, but it is a it does form the foundation of how we think about things you may recall back during the pandemic when people were extrapolating from a very unusual market condition. We remain focused on what our long term outlook was telling us and continue to make investments when a lot of other people have paid.

Yeah, sure. Thanks for the question or room it. It is with respect to the first part of your question. The global Outlook is the foundation on which, uh, we think about our strategy and then build our plans. Obviously, uh, it's difficult to predict with Precision how things are going to move particularly in the short term. But longer term, we focus on the fundamentals, where the economic growth is happening to what level it's happening. Uh, how Technologies developing what policies are being put in place, and then try to synthesize all that into an Outlook and have been doing that. Uh, well for, as long as I, I can remember in this company,

Pulled back during that time and that that that has proven to be the right. The right approach as time moved on and so we think about it in those terms and the growth in LNG is what underpins our continued interest in finding low cost advantaged LNG production the recognition of economies growing in peoples.

Darren Woods: We think about it in those terms, and the growth in LNG is what underpins our continued interest in finding low-cost, advantaged LNG production. The recognition of economies growing and people's livelihoods improving and the energy demand required to facilitate that underpins continued growth in oil and gas. We continue to look for cost-advantaged oil production as well. I think people often forget that there is a depletion rate here. If you aren't continuing to invest and find new resources, your supply will rapidly decline, particularly given the role that unconventional production now plays in the global supply. That depletes a lot quicker. The depletion curve is a lot steeper. The industry has to bring more barrels on to just stand still.

Livelihood is improving and the energy demand required to facilitate that underpins continued growth in oil and gas and so we continue to to look for cost advantaged oil production as well I think people often forget that.

There is a depletion rate here and so if you're if you arent continuing to invest and find new resources that your supply will rapidly decline, particularly given the role that unconventional production now plays in the global supply that depletes a lot quicker therefore, the depletion curve as a lot steeper therefore.

Doesn't change a whole lot year to year, but it is, uh, it does form the foundation of how we think about things. You may recall back during the pandemic. When people were extrapolating from a very unusual Market condition, we remain focused on what our long-term Outlook was telling us and continue to make investments when a lot of other people have paid, uh, pulled back during that time and that, that, that has proven to be the right right approach As Time moved on. And so we think about in those terms and the growth in LNG is what underpins uh our continued interest in finding low cost advantaged LNG production, the recognition of economies growing and people's, um, livelihoods improving. And that the energy demand required to facilitate that, uh, underpins continued growth in, in oil, and gas. And so we continue to to look for uh, cost Advantage, uh, oil production as well. I think people often forget that.

The industry has to bring more more barrels on to just to stand still and so all of that kind of goes into our thinking in terms of what's needed from an investment standpoint, and really keeps our focused on the medium to long term rather than the very short term.

Darren Woods: All of that goes into our thinking in terms of what's needed from an investment standpoint and really keeps our focus on the medium to long term rather than the very short term. Great. Thanks. You bet. The next question is from Doug Leggett of Wolf Research. Thank you. Good morning, Darren. I listened to you talk about being in a class of your own, and I think about all the growth you've had in free cash flow and the reduction in the dividend break-even. Yet your dividend growth rate remains quite pedestrian. Frankly, I think that's probably holding back market recognition of value. I wonder if you can address that. At what point do you think the free cash flow expansion translates to a more competitive, let's say, versus a broader market dividend growth rate? Yeah. I'm happy to take that question, Doug.

Great. Thanks, you bet.

The next question is from Doug Leggate of Wolfe Wolfe Research.

There is a depletion rate here and so if you, if you aren't continuing to invest and find, uh, new resources that your supply will rapidly decline particularly given the the role that unconventional production. Now plays in the global Supply that depletes a lot quicker. Therefore, the depletion curve is a lot steeper. Therefore, the industry has to bring more more barrels on to just stand still. And so, all of that kind of goes into our thinking uh in terms of what's needed from an investment standpoint and really

Thank you good morning Darren.

Keeps us focused on the medium to long term rather than the very short term.

You know I.

Great, thanks.

And listen to you talk about in a class of your own and I think about all the growth your pod and free cash flow.

You bet.

The next question is from Doug legit of wolf wolf research.

And the reduction in the dividend breakeven, but.

But yet your dividend growth rate remains quite pedestrian and frankly, I think that's probably holding bike market recognition of value. So I wonder if you can address that at what point do you think the free cash flow expansion translates to a more competitive let's say versus the broader market dividend growth rate.

Uh, thank you. Good morning Darren. Um,

You know, I I I I I listen to you talk about, um, in a class of your own, and I think about all the growth you've had in free cash flow.

And the reduction in the dividend break even.

I'm happy to take that question that we look at our overall dividend growth rate and we constantly think about sustainability right. We think about competitive and as we think about growth and when we measure it on those three.

But yet your dividend growth rate remains quite pedestrian, and frankly, I think that's probably holding back market recognition of value. So, I wonder if you can address that. At what point do you think the free cash flow expansion translates to a more competitive, let's say, versus a broader market dividend growth rate?

Pretty important qualitative factors, we feel pretty happy with where we've ended up and interestingly I would tell you as we speak to investors, how we tend to get positive commentary about our dividend growth rate about our overall approach to delivering growth and about our overall approach to Natchez dividend growth.

Darren Woods: We look at our overall dividend growth rate, and we constantly think about sustainability, right? We think about competitiveness. We think about growth. When we measure it on those three pretty important qualitative factors, we feel pretty happy with where we've ended up. Interestingly, I would tell you, as we speak to investors, we tend to get positive commentary about our dividend growth rate, about our overall approach to dividend growth, and about our overall approach to not just dividend growth, but obviously to a more consistent program with regard to share buybacks as well. We look at the dividend growth rate over a long period of time. We look at it both relative to IOC competitors. We look at it relative to general S&P. We look at it relative to industrials.

But obviously to a more consistent program with regard to share buybacks as well. So we look at the dividend growth rate over a long period of time, we look at it both relative to IOC competitors. When we look at it relative to general S&P, we look at it relative to industrials and when we measure it against those.

Yeah. Um, I'm happy to take that question, Doug. You know, we look at our overall dividend growth rate and we constantly think about sustainability, right? We think about competitiveness, we think about growth, and when we measure it, on those 3, uh, pretty important qualitative factors. Uh, we feel pretty happy with where We've Ended up. And interestingly, I would tell you as we speak to investors. Uh, we tend to get positive commentary about our dividend growth rate about our overall approach to different growth and about our overall approach to not just dividend growth.

Here I would say we come up with an answer that says we feel like we're in a pretty good place and generally speaking we get positive commentary from investors on our approach with regard to our dividend growth rate, yes, I would add to that Doug that we're very mindful of the commitment we have.

Darren Woods: When we measure it against those criteria, I would say we come up with an answer that says we feel like we're in a pretty good place. Generally speaking, we get positive commentary from investors on our approach with regard to our dividend growth rate. I would add to that, Doug, that we're very mindful of the commitment we have on our dividend and the context in which that commitment will play out over the years as you move through commodity cycles. We think it pays to be confident with what we're doing and thinking through where the cycles are going. We all know the prices are going to go up, and we know they're going to go down.

On our dividend and.

The context in which that commitment will play out over the years and as you move through commodity cycles, and so we think it pays to be.

Confident with what we're doing and thinking through where the cycles are going we all know the prices are going to go up and we know theyre going to go down and making sure that we build a business that can reliably deliver across any price environment is a critical part of how we think about.

Commentary from investors on our approach with regard to our dividend growth rate. Yeah. And I, I would add to that Doug that, you know, we're very mindful of the commitment we have, uh, on our dividend and, uh, the context in which that commitment will play out over the years and as you move through commodity cycles. And so we think it it pays to be, um,

The things that we do in the company.

And the last thing I'd say is we now have 43 consecutive years.

Darren Woods: Making sure that we build a business that can reliably deliver across any price environment is a critical part of how we think about the things that we do in the company. The last thing I'd say is we now have 43 consecutive years of annual dividend growth. That puts us in a category of less than 5% of S&P 500 companies. I'd say that's a track record we're quite proud of. Thank you, guys. You bet. The next question is from Bob Brackett of Bernstein Research. Good morning. I'd like to talk a bit about Superior Graphite. I'm curious what exactly you acquired from them. Was it their facilities in the U.S. and Europe or more technology? I'm also curious how tightly integrated would that be into your existing refining petrochemical strategy? I'll tack on what do you think that total addressable market might be? Thank you, Bob.

Of annual dividend growth that puts us in any category of less than 5% of S&P 500 companies I'd say.

That's a track record we're quite proud of.

Confident with what we're doing and thinking through, you know, where the Cycles are going, we all know the prices are going to go up, and we know they're going to go down and making sure that we build a business that can reliably deliver across any price. Environment is a critical part of how we think about, um, the things that we do in the company.

and the last thing I,

Alright. Thank you guys you bet.

Yeah.

The next question is from Bob Brackett Bernstein research.

Good morning, I'd like to talk a bit about superior graphic graphite I'm curious what exactly you acquired from them was that their facilities in the U S and Europe are more technology and also curious how tightly integrated would that be engineer existing refining.

We now have 43 consecutive years of annual dividend growth that puts us in a category of less than 5% of S&P 500 companies. I'd say that's a track record we're quite proud of.

All right, thank you guys.

You bet.

The next question is from Bob bracket of Bernstein research.

<unk> strategy and then I'll attack on what do you think that total addressable market might be.

Yeah. Thank you, but I appreciate the question.

We talked about now for some time the work we've been doing from a technology standpoint, leveraging our capabilities to manipulate and transform molecules to make products that the world needs into <unk>.

Good morning. I'd like to talk a bit about Superior Graphite. I'm curious: what exactly you acquired from them? Was that their facilities in the U.S. and Europe, or more technology? I'm also curious how tightly integrated that would be into your existing refining and petrochemical strategy. And then I'll tack on: what do you think that total addressable market is?

Possible Market might be.

Darren Woods: Appreciate the question. We talked about now for some time the work we've been doing from a technology standpoint, leveraging our capabilities to manipulate and transform molecules to make products that the world needs and to address gaps and grow value. One of those pieces of work was around what can we do with carbon molecules, particularly given the drive, the necessary drive to reduce emissions and CO2 out of the atmosphere that leads to more and more carbon. We saw a trend of a cheap feedstock that's growing and what can we make out of it. Our technologists have come up with a unique carbon molecule that we see the opportunity to graphitize and then put into batteries as anodes. As I said in my comments.

Address gaps and grow value one of those that piece of work was around what can we do with carbon molecules, particularly given the drive of the necessary drive to reduce emissions in the C. O two out of the atmosphere that leads to more and more carbon so we saw a trend of.

A cheap feedstock, that's growing and what can we make out of it and so our technologists have come up with a unique carbon molecule.

That we see the opportunity to Graphitize and then put into batteries is anodes as I said in my comments.

The work that we've done with our pilot plants have led to our demonstrated significant.

Really step change improvements in lithium ion batteries, 30% faster charging 30% more range and then extends the battery life cycle by four times. The current technology. So we see it as a huge opportunity.

Yeah, thank you, Bob appreciate the question, you know, uh we talked about now, for some time the work we've been doing uh, from a technology standpoint leveraging, our capabilities to manipulate and transform molecules to make products that the world needs into, uh, address, um, gaps and and grow value, 1 of those that piece of work was around. What can we do with carbon molecules, particularly given the, the drive the necessary drive to reduce emissions and the CO2 out of the atmosphere that leads to more and more carbon. So we saw a trend of, uh, a cheap feed stock that's growing. And what can we make out of it? And so our technologists have come up with a unique, uh, carbon molecule.

Darren Woods: The work that we've done with our pilot plants have led to or demonstrated significant, really step-change improvements in lithium-ion batteries: 30% faster charging, 30% more range, and then extends the battery lifecycle by four times the current technology. We see it as a huge opportunity. The TAM on that could be up to $40 billion. That's, in our mind, a market worth going after. One of the challenges beyond designing the molecule is the graphitization process. If you look at what the industry norm is in that space, it is a very, very old technology that dates back to the 1800s and takes close to a month, frankly, to develop the product. We said we've got to bring that into current times. We are looking for a technology that really leveraged our process technology capabilities.

That we see the opportunity to graph and then put in to batteries as anodes as I said in my comments.

The Tam on that could be up to $40 billion.

So that's in our mind a market worth going after one of the challenges beyond the mall and designing the molecule is.

As the graph position process and if you look at what the industry norm is in that space. It is a very very old technology that dates back to the 18 hundreds and takes.

Close to a month frankly too.

Developed.

The work that we've done with our pilot plants have led to or demonstrated significant, uh, really step, change improvements in Lithium-ion batteries, 30% faster, charging, uh, 30%, uh, more range and then extends the battery uh life cycle by 4 times, the current technology. So we see it as a huge opportunity uh The Tam on that could be up to 40 billion dollars. Um so that's in our mind a market worth going after 1 of the challenges uh beyond the M designing the molecule is the graphic.

<unk>.

We said, we've got to bring that into.

Current times and so we're looking for a technology, they really leveraged our process technology capabilities and superior graph graphite head of technology and some assets that working with them, we could adapt to this and we think.

The action process, and if you look at what the industry norm is in that space, it is a very, very old technology that dates back to the 1800s and takes close to a month to develop the product.

<unk> mentally revolutionize is making.

In making this material for the battery market and so that's the approach.

Darren Woods: Superior Graphite had a technology and some assets that, working with them, we could adapt to this. We think it fundamentally revolutionizes making this material for the battery market. That's the approach. We purchased the key assets, have the technology rights to those assets, and we'll be working with the folks to convert that technology and grow it at scale so we can begin to produce anode material at a much higher rate and a much lower cost. Really, really importantly, outcompete the Chinese. This market is dominated by the Chinese. We are very cognizant of anything that we do here for the long run has to be on the very low end of the cost of supply curve. This technology is going to help us achieve that. You're very clear. Thanks for that. You bet. The next question is from Sam Margolin of Wells Fargo.

We purchased the key assets have the right technology rights to those assets and we'll be working with the folks too.

Convert that that technology and grow it at scale. So we can begin to produce.

Annual material at a much higher rate and a much lower cost and really really importantly outcome.

Our compete to Chinese this market is dominated by the Chinese and so we're very cognizant of anything that we do here for the long run has to be on the very low end of the cost of supply curve. This technology is going to help us achieve that.

Okay very clear thanks for that you bet.

The next question is from Sam Margolin of Wells Fargo.

We said we've got to bring that into uh, you know, a current times. And so we're looking for a technology that really leveraged our uh process technology capabilities, and Superior graphite had a technology in some assets that working with them, we could adapt to this. And we think, uh, fundamentally revolutionizes, um, making this material, uh, for the battery market. And so that's the approach. Um, we purchased uh, the key assets. Have the right technology, the rights to those assets. And we'll be working with the folks to, um, convert that that technology grow it at scale. So we can begin to produce, um, annual material at at a much higher rate at a much lower cost and really, really importantly, uh, out compete. The Chinese, um, this Market is dominated by the Chinese and so we're very cognizant of anything that we do here for the long run has to be on the very low end of the cost of supply curve. This technology is going to help us achieve that.

Very clear. Thanks for that.

You bet.

Sam do we have you.

Operator, maybe we should come back sorry can you hear me now go now with you Yeah I'm here sorry about that.

The next question is from Sam Margolin of Wells Fargo.

Thanks for taking the question sorry sure.

So yeah I wanted to ask about the organic or the inorganic strategy a little bit.

Darren Woods: Sam, do we have you? Oh, sorry. I figured maybe we should come back to Sam. Oh, there we go. Now we do. Yep. Go ahead. Sorry about that. Okay. Thanks for taking the question. Sorry. Sure. Yeah, I wanted to ask about the inorganic strategy a little bit. It seems like it's accommodated kind of by two factors. The first is capital efficiency in the business, and the second is the balance sheet, which is leading among peers. The question is, given all these tailwinds in the business and in the capital structure, do you feel like you can step up inorganic activity even more now and set the table for additional opportunities beyond what's in your pipeline today? Yeah. Thanks, Sam.

Sandra. We have you.

It seems like it's accommodated kind of by two factors. The first is capital efficiency in the business and the second is the balance sheet, which is leading among peers.

So the question is you know given all these tailwind in the business and in the capital structure do you feel like you can step up in organic activity even more now.

And set the table for additional opportunities beyond what's what's in your pipeline today.

Strategy a little bit. Um, you know, it seems like it's accommodated kind of by two factors. The first is capital efficiency in the business, and the second is the balance sheet, which is leading among peers.

Yeah, Thanks, Sam or why I tell you. If you go back in time, when we first started talking about our strategy. It was very much focused on our core competitive advantages and strengthening those advantages and growing them and that in my mind, not only allowed us to improve and drive profitability in our base business.

And so the question is, you know, given all these tailwinds in the business and in the capital structure,

Do you feel like you can step up in organic activity even more now?

And you know, set the table for additional opportunities beyond what's in your pipeline today?

Darren Woods: If you go back in time when we first started talking about our strategy, it was very much focused on our core competitive advantages and strengthening those advantages and growing them. That, in my mind, not only allowed us to improve and drive profitability in our base business, but it opened up the opportunity for inorganic transactions where we could take advantage of those core competencies, leverage them in an acquisition, and bring more value than either company could do on its own. That's kind of the foundation of the 1 plus 1 equals 3, which we've been talking about for quite some time. I think the Pioneer acquisition is a great example of that, where we brought in a very good organization, very good people, very good assets, combined them with our good people, our assets, and technology, and together, we're doing more than either company could have before.

But it opened up the opportunity for inorganic.

Transactions that took advantage of where we could take advantage of those.

Core competencies leverage them in in an acquisition and bring more value than either company could do on its own and that's that's kind of the foundation of the one plus one equals three which we've been talking about for quite some time I think the pioneer acquisition is a great example of that where we brought in a very good organization very good people very good.

Assets combine them with our good people, our assets and technology and together, we're doing more than either company could have before that that drive and our efforts to find those opportunities do not ebb and flow with the.

The commodity price cycle. It is a constant for us and I made that point in the second quarter I make it here in the third quarter. We are as we develop these and grow our technology capabilities. Our project capabilities really all the advantages that we bring into the business. How can we leverage those to grow more value organically and inorganic or inorganically and it's just a function of.

Darren Woods: That drive and our efforts to find those opportunities do not ebb and flow with the commodity price cycle. It is a constant force. I made that point in the second quarter. I make it here in the third quarter. As we develop these and grow our technology capabilities, our project capabilities, really all the advantages that we bring to the business, how can we leverage those to grow more value organically and inorganically? It's just a function of continuing to look for and find those opportunities. It's a constant, I'd say, focus of ours, and it's really a question of what are the opportunities that present themselves. That'll happen over time. We don't have a specific plan for when things show up, but it's this constant effort, which I think any good company with the advantages that we have would be very focused on that.

Yeah, thanks, Sam. While I tell you, you know, if you go back in time when we first started talking about our strategy, it was very much focused on our core competitive advantages and strengthening those advantages and, and growing them and that in my mind, not only allowed us to improve and drive, uh, profitability in our base business. But it, it opened up the opportunity for integrant, um, uh, transactions, that took advantage where we could take advantage of those, um, core competencies, leverage them in in an acquisition and bring more value than either company could do on its own. And that's that's kind of the foundation of the 1 plus 1 equals 3, which we've been talking about uh for quite some time. I think the Pioneer acquisition is a great example of that where we brought in a a very good organization, very good people, very good assets combined them with our good people, our assets and technology and together, we're doing more than either company could have before that that drop

Continuing to look for and find those opportunities. So it's a it's a constant I would say a focus of ours and its really a question of what are the opportunities that present themselves and that will happen.

Over time, I don't we don't have a.

A specific plan for when things show up but it's this constant effort, which I think.

Any good company with the advantages that we have would be very focused on that and just the thing I would add to that we look at a lot of things a lot of things as you would expect us to we transact on very few things because they have to meet our criteria as we said one one.

Uh, and, and our efforts to find those opportunities do not have and flow with, um, the commodity price cycle. It is a constant force and I made that point in the second quarter. I make it here in the third quarter, we are, as we develop these and grow our technology capabilities, our project capabilities, really all the advantages that we bring to the business. How can we leverage those to grow more value, organically and inorganic or inorganically? And it's just a function of continuing to look for and find those opportunities. So it's a it's a constant I'd say, uh, focus of ours and it's, it's really a question of, you know, what are the opportunities that present themselves and that will happen? Um, you know, over time I don't we don't have a

Darren Woods: The thing I would add to that, we look at a lot of things, a lot of things, as you would expect us to. We transact on very few things because they have to meet our criteria. As we said, 1 plus 1 has to equal more than 3, right? We've got to bring advantages to the table, scale, integration, unrivaled technology, things that are going to create synergies that are going to allow transactions to really generate strong returns. I think Pioneer is a great example of that. You should expect that we would look at a lot of things, but we transact on very few, and it's the ones where we have a high degree of confidence that we can earn very good returns. I think bottom line in that is we buy value, not volume. I think that differentiates us from many in the industry.

Plus one has to equal more than three right. We've got to bring advantages to the table scale integration unrivaled technology things that are going to create synergies.

Specific plan for when things show up, but it's this constant effort, which I think, um, any good company with the advantages that we have would be very focused on that. And just the thing I would add to that: we look at a lot of things, a lot of things.

Allow transactions to really generate strong returns and I think pioneer is a great example of that so you should expect that we would look at a lot of things but.

But we transact on very few and it's the ones, where we have a high degree of confidence that we can earn very good returns.

I think bottom line and that is we buy value not volume.

Too. We transact on very few things because they have to meet our criteria as we said, 1 1 plus 1 has to equal more than 3, right? We've got to bring advantages to the table, scale, integration on Rival technology, things that are going to create synergies that are going to allow transactions to really generate uh strong returns. And I think Pioneer is a great example of that. So

Think that differentiates us from many in the industry and so if we can't see the path to very high returns on transactions, we wont pursue them.

Okay.

So you should expect that. We would look at a lot of things. Um, but we transact on very few and it's the ones where we have a high degree of confidence that we can earn very good returns.

Thank you so much thank you.

Yeah, I think the bottom line in that is we buy value, not volume.

Darren Woods: If we can't see the path to very high returns on transactions, we won't pursue them. Thank you so much. Thank you. The next question is from Paul Cheng of Scotiabank. Good morning. Darren and Kathy, I'm just curious, I mean, you just have a round of maybe headcount reduction, but I'm trying to understand that. You've been doing a lot of different projects. You're probably doing far more than any of your peers at this point. Should we assume that at this moment you are pretty much running up against your organizational capability in the moment, or that you think your ability to even increase the pace of investment is just a function of opportunity set but not limited by your capability? Thank you. Yeah. Thank you, Paul.

The next question is from Paul Cheng of Scotiabank.

Hi, good morning.

With Devon, and Kathy I, just curious that I mean, you just have a.

I think that differentiates us from many in the industry, and so, if we can't see the path to very high returns on transactions, we won't pursue them.

Thank you so much.

Hey, why on loss costs.

Thank you.

Head count reduction, but I'm trying to understand that.

The next question is from Paul Chang of Scotia Bank.

You've been doing a lot of different projects that means your puppy doing far more than any of your peers at this point so.

Should we assume that at this moment you are pre one thing up against your organizational capability or that you think youll ability there to even increasing the pace of investment is just a function of opportunities that are not limited by your capability. Thank you.

Yes. Thank you Paul just to your point about the reductions that you referenced that was really.

The next step in a continuum of work we've been pursuing for.

For some time now we've worked really hard at transforming the how of what we do.

Uh, good morning, um, Darren and Cathy I just curious that. I mean you you just have a um a round of uh course. Uh may maybe had come reduction, but I'm trying to understand that. Um you've been doing a lot of different projects, I mean you probably doing far more than any of your peers at this point. So should we assume that at this moment you are pretty running up against your uh organizational capabilities in the middle or that you think your ability that to even increasing the pace of the investment is, just a function of opportunity set but not the limited by your capability. Thank you.

Darren Woods: Just to your point about the reductions that you referenced, that was really the next step in a continuum of work we've been pursuing for some time now. We've worked really hard at transforming the how of what we do, and that has led to much improved effectiveness, and it's also led to the efficiencies that we've been racking up. If you look since 2019 when we started this work on the strategy, implementing the strategy, we're over $14 billion of structural cost reductions. That's on average about $2.5 billion of structural cost reductions every year. My expectation is we'll see something similar to that this year. Frankly, going forward, we continue to see additional opportunities to become more effective and through that then get more efficient.

And that has led to much improved effectiveness and its also led to the efficiencies that we've been racking up if you look since 2019, when we started this work on the strategy.

Yeah, thank you. Paul, just to your point about the reductions that you referenced, you know, that was really...

Implementing the strategy were over $14 billion of structural cost reductions is on average about $2 5 billion cost reduction structural cost reductions every year my expectations, we'll see something similar to that this year and frankly going forward, we continue to see.

the next step in a Continuum of work. We've been pursuing uh, for some time now we've we've worked really hard at transforming the how of what we do. Uh, and that has led to much improved Effectiveness and it's also led to the efficiencies that we've been racking up and if you look, you know, since 2019, when we started this, uh, work on the strategy.

Additional opportunities to become more effective and through that then get more efficient.

The ability in terms of the capability. We've got now is limited by the opportunity set because of the high criteria that we put on it and the and.

Insistence that the projects that we bring in are advantaged versus industry on the low end of the cost of supply curve. So that's resilient and delivered robust returns across every part of the commodity cycle.

Darren Woods: The ability in terms of the capability we've got now is limited by the opportunity set because of the high criteria that we put on it and the insistence that the projects that we bring in are advantaged versus industry on the low end of the cost of supply curve. It's resilient and delivers robust returns across every part of the commodity cycle. That criteria set tends to narrow the pipeline down pretty quickly as we're looking at things. To date, we haven't hit that limit. I would also tell you as we continue to learn, sharpen our pencils, the opportunity set that we see across our technology organizations, our project organization, we think there's still untapped opportunity sets to get even better in that space. We're not at a limit yet. Frankly, I don't see a limit. Maybe one day we'll get there.

Million dollars of structural cost reductions that's on average about 2 and a half billion dollars of cost. Reductions structural cost reductions every year my expectations will see something similar to that this year. And frankly going forward, we continue to see uh additional opportunities to become more effective and through that, then get more efficient.

That criteria set tends to.

The, um, ability. In terms of the capability we've got now is uh, limited by the opportunity set because of the high criteria that we put on it. And, uh, the um,

Narrow the pipeline down pretty quickly as we're looking at things. So to date, we haven't hit that limit, but I would also tell you. The as we continue to learn sharpen our pencils the opportunity set that we see across our technology organizations. Our project organization, we think Theres still.

Untapped opportunity sets to get even better in that space. So we're not at a limit yet and frankly I don't see a limit.

Maybe one day, we'll get there, but when you combine the.

Insistence that the projects that we bring in our advantage versus industry on the low end of the cost of supply curve. So it's resilient and delivers robust returns across every part of the commodity cycle. That criteria set tends to, um, narrow the, the pipeline down, uh, pretty quickly as we're looking at things. So today, we haven't hit that limit. But I would also tell you, the, as we continue to learn sharpen, our pencils, the opportunity set that we see,

The high hurdles to clear sort of take to get into the portfolio.

With the existing capabilities set that we've got I feel pretty good about the ability to execute and I would point to what we did this year is probably the best example of that that are 10 projects. We've been talking about the eight of them that we've delivered to date. If you look in total the gross capital associated with those 10 projects is on the order of $50 billion.

Darren Woods: When you combine the high hurdle you have to clear in order to get into the portfolio. With the existing capability set that we've got, I feel pretty good about the ability to execute. I would point to what we did this year as probably the best example of that. The 10 projects we've been talking about, the 8 of them that we've delivered to date, if you look in total, the gross capital associated with those 10 projects is on the order of $50 billion. I don't think there's a company in our industry at any point in history that has successfully delivered that many projects in the timeframe that we're doing. I think that's just a great example of what we're capable of.

Across our technology organizations, our project organization, we think they're still, untapped opportunity sets to get even better in that space. So, uh, we're not at a limit yet and frankly, I don't see a limit, um, maybe 1 day we'll get there. But when you combine the the uh, High, the high hurdle, you have to clear in order to to get into the portfolio with the existing capability set that we've got. I feel pretty good about the the

I don't think Theres a company in our industry at any point in history that has successfully delivered that many projects in.

And the timeframe that we're doing and so I think that's just a great example of what we're capable of it.

And like I said.

Ability to execute and I would point to what we did this year as probably the best example of that. You know the 10 projects we've been talking about the 8 of them that we've delivered today. If you look in total the gross Capital associated with those 10. Projects is on the order of 50 billion dollars.

We've got a lot of ideas in the hopper in terms of how we can improve the technical aspects of what we're doing on with the execution aspects.

That's great I suppose that that's why you're not just bought the discovery sakes.

Darren Woods: Like I said, we've got a lot of ideas in the hopper in terms of how we can improve the technical aspects of what we're doing along with the execution aspects. That's great. I suppose that's why you just bought the Discovery 6. That's part of that, improving your maybe capability and efficiency going forward. Absolutely. I think I said the 17th most powerful computer in the world. If you look at the data that we have to process, if you look at the opportunities that we have, it's allowing us to do things in weeks that used to take us months and months. It just speeds that cycle up. If you just look at what we're doing in driving efficiencies, it is unmatched across the industry. You look at just what we put up this quarter, $14.3 billion now in structural cost savings compared to 2019.

I don't think there's a company in our industry at any point in history that has successfully delivered that many projects uh in the time frame that we're doing. And so I think that's just a great example of of what we're capable of. And like I said, um,

Part of that improving your.

Maybe it capability and efficiency going forward, absolutely I mean, that's why I think I said, the 17th most powerful computer in the world.

We got a lot of ideas in the hopper in terms of how we can improve the technical aspects of what we're doing, along with the execution aspects.

And if you look at the data that we have to process. If you look at the opportunities that we have it's allowing us to do things in the weeks that used to take us months and months of just speeds that cycle up.

That's great. I I suppose that that's why you just bought the discovery 6. Uh, that's part of that uh, improving your uh, maybe capability and efficiency going forward.

And I think if you just look at what we're doing and driving efficiencies right. It is unmatched across the industry. I mean, you look at just what we put up this quarter $14 3 billion now instructional cost savings compared to 2019, our track record in this regard I think is bar none.

Absolutely. I mean, that's—it's, well, I think I said the 17th most powerful computer in the world. If you look at the data that we have to process, if you look at the opportunities that we have, it's allowing us to do things in weeks that used to take us months and months. So it just speeds that cycle up.

And we see more opportunity there.

Thank you.

Darren Woods: Our track record in this regard, I think, is bar none. We see more opportunity there. Thank you. The next question is from Biraj Borkhataria with RBC. Hi. Thanks for taking my question. I wanted to ask about Mozambique and the onshore development. There were some reports suggesting you were targeting FID in the first quarter of 2026, but then I read there was a meeting with the government which was then deferred. Could you just talk about where you are with that project, maybe the security situation, and then whether an FID in early 2026 is likely? Thank you. Yeah. Sure. I would say where we're at with Mozambique right now is in a very good place. We've got very strong relationships with the government there. We've got a really good project concept working our way through that. The security situation there has improved dramatically.

The next question is from Matt BRAF buckets ARIA with RBC.

Alright, Thanks for taking my question.

And I think if you just look at what we're doing and driving efficiencies, right? It is unmatched across the industry. I mean, you look at just what we put up this quarter 14.3 billion. Now, in structural cost savings compared to 2019, uh, our track record in this regard. I think is Bar None and we see more opportunity there.

You asked about.

And the onshore development there were some reports.

Testing you are targeting.

First quarter 2026, but then I read it was amazing.

The next question is from B borsha with RBC.

Our meeting with the government, which was then if so could you just talk about why.

You are with that project, maybe the security situation and then whether.

In early 2006 is likely thank you.

Yes, sure we are I would say, where we're at with Mozambique right. Now is in a very good place. We've got a very strong relationships with the governor of the government. There. We've got a really good project concept are working our way through that the security situation there has improved dramatically.

Hi, thanks for taking my question. Um, I wanted to ask about Mozambique. Um, as part of the onshore development, there were some reports suggesting you were targeting FID in the first quarter of 2026. But then I read there was a meeting with the government which was then deferred. So could you just talk about where you are with that project? Uh, maybe the security situation and then whether an FID in early '26 is likely. Thank you.

Total just lifted their force measure we're looking at and are in the process of trying to do the same and so I would say.

That project is now moving ahead, and we feel really good about that and as it does the government of Guyana, and we're working very closely with total on that so I think it's in a really good place.

Darren Woods: I think Total just lifted their force majeure. We're looking at and in the process of trying to do the same. I would say. That project is now moving ahead, and we feel really good about that, as does the government of Guyana. We are working very closely with Total on that. I think it's in a really good place. The press reports that you're reading, I would just say you can't read everything that you believe or infer anything that you take from that. Just this week, we had the president and his team here on the campus and took them through what we're doing here and showed them some of our capabilities. It was a really productive session that I think both of us got a lot out of. Understood. Thank you. Thank you, Raj. The next question is from Ryan Todd of Piper Sandler. Thanks.

The press reports that you're reading I would just say you can't read everything that you believe or and for anything that you take from that and just this week, we had the president and his team here on the campus and took them through what we're doing here and show them some of our capabilities and it was a really productive session I think both of US got a lot out of.

Yeah, sure, we we, uh, I would say where we're at with MOS and Beak right now, is in a very good place. We've got a very strong relationships with the government. Uh, the government there. We've got a really good, uh, project concept, uh, working our way through that, the security situation there has improved dramatically. Uh I think total just lifted their force majour uh, we're looking at and in the process of trying to do the same. And so I would say we're

Understood. Thank you. Thank you Raj.

The next question is from Ryan Todd of Piper Sandler.

That project is now uh, moving ahead. And we feel really good about that and as does the government of Guyana and we're working very closely with total on that. So I think it's in a really good place. Uh, I think the the Press reports that you're reading, I would just say, you can't read everything that you believe or infer. Uh, anything that you take from that. And just this week, we had the president and his team here on the campus, and took them through what we're doing here, and showed them some of our capabilities. And it was a really productive session. I think both of us got a lot out of

Hey, thanks.

Maybe one on exploration you've been.

Understood, thank you.

I think increasingly active on this front.

Thank you, Raj.

And everything can you.

Can you talk about opportunities on the horizon over the next 12 to 24 months and how if at all.

Handler.

Darren Woods: Maybe one on exploration. You've been, I think, increasingly active on this front in recent years. Can you talk about opportunities on the horizon over the next 12 to 24 months and how, if at all, you believe your approach to exploration may have changed relative to maybe times in the past? Yeah. Sure. Maybe just put exploration in the context. I think when we talk about what we're trying to do in the upstream and grow production in the context of the depletion rate that we see, it is a huge challenge. We have been very focused on what we see as the three key levers of filling the hole created by depletion and at the same time growing that, which is, for the things that you have, you got to squeeze more juice out of it.

Do you believe your approach to exploration may have changed relative to maybe times in the past.

thanks, um, maybe 1 on expiration, you've been

Yes, sure maybe just put exploration in the context I think.

When we talk about what we're trying to do in the.

Uh, I think we are increasingly active on this front in recent years. Can you talk about opportunities on the horizon over the next 12 to 24 months and how, if at all,

The upstream and grow production in the context of the.

Uh, I believe you're approached; expiration may have changed relative to maybe times in the past.

Depletion rate that we see it as a huge challenge and so we've been very focused on what we see as the three key levers.

Of filling the hole created by depletion and at the same time growing that which as you know.

Yeah, sure. Maybe just put exploration in in the context. I think, you know, when we talk about what we're trying to do and um,

For the things that you you have.

You got to get squeeze more juice out of it and so a lot of work we've been doing around for the for the fields and the resources that we're currently developing how do we get more effective at producing.

The upstream and grow production in the context of the depletion rate that we see it is a huge Challenge. And so we've been very focused on what we see as the 3 key levers.

More resources from those fields, and that's driven a lot by the projects organization, our technology organization and the hard work of our operations teams.

Darren Woods: A lot of work we've been doing around for the fields and the resources that we're currently developing is how do we get more effective at producing more resources from those fields. That's driven a lot by our project organization, our technology organization, and the hard work of our operations teams. You've got to grow your advantages so that you can buy things and take advantage of the inorganic opportunities that we just talked about. One of the reasons why, as Kathy said, we're constantly looking at a lot of opportunities is we recognize if we can take our advantages and create unique value through an inorganic opportunity, that's really important, and it helps us, again, fill this challenge of the depletion curve. The final point is you've got to find new things that you can develop.

You've got to grow your advantages. So that you can take it you know you can buy things and take advantage of the inorganic opportunities that we just talked about and so one of the reasons why as Kathy said, we're constantly looking at a lot of opportunities. We recognize if we can take our advantages and create unique value through inorganic opportunity, that's really important and it helps us again fill this.

<unk> of the depletion curve and then the final point is you've got to find new things that you can develop and so that's always been a part of the.

Of fill in the hole created by depletion and at the same time growing that which is, you know, for the the things that you you have, um, you got to, you got to squeeze more juice out of it. And so, a lot of work we've been doing around for the, for the fields and the resources that we're currently developing. How do we get more effective at producing, uh, more resources from those fields? And that's driven a lot by the projects organization, our technology organization and the hard work of our operations teams. Uh you've got to grow your advantages so that you can take it. You know you can buy things and take advantage of the inorganic opportunities that we just talked about. And so 1 of the reasons why, as Kathy said, we're constantly looking at a lot of opportunities as we recognize

Equation for addressing the challenges of the upstream what we've been very very focused on is really.

Narrowing what we're doing in the exploration to make sure that things that we're looking for them going after have the opportunity to be material.

Darren Woods: That's always been a part of the equation for addressing the challenges of the upstream. What we've been very, very focused on is really. Narrowing what we're doing in the exploration to make sure that things that we're looking for and going after have the opportunity to be material, be commercially attractive, compete in our. We still got to demonstrate and translate that into results and success in terms of finding things. Thank you. We'll take our next question from Betty Jiang with Barclays. Good morning. Thank you for taking my question. Darren, Google just recently signed a power contract with a gas power plant with carbon capture. It's really great to see developments on that front. Wondering how your conversation is evolving.

If we can take our advantages and create unique value through inorganic opportunity, that's really important and it helps us again. Fill this challenge of the depletion curve and then the final point is, um, you got to find new things that you can develop. And so that's always been a part of the

<unk> commercially attractive competed in our portfolios.

So we focus that I think we've put a lot of effort.

And how we interpret the seismic and what we can do there and so we feel pretty good about the opportunity set that we've got we feel pretty good about the technology that we're going to bring into that space, but I would also tell you that you know it starts with getting the opportunity to go look at things.

Equation for addressing the challenges of the Upstream. Uh, what we've been very, very focused on is really a narrowing, uh, what we're doing in the exploration, to make sure that things that we're looking for and going after having the opportunity to, um, be material, be commercially attractive, competing in our

We still got to demonstrate and translate that into results and success in terms of finding things finding things.

Thank you you bet.

Okay.

We'll take our next question from Betty Zhang with Barclays.

we still got to demonstrate and translate that into, um,

Good morning, Thank you for taking my question.

results and success, in terms of finding things,

Yeah, Darrin, so Google just recently signed a power contract.

Thank you.

With gas power plant.

Sure so really great to see developments on that front wondering how your conversation.

We'll take our next question from Betty Jiang with Barclays.

Is evolving.

And I know Exxon has consistently talked about.

Good morning, thank you for taking my question. Um,

Only interested in power from a molecule perspective, but just given how quickly the power demand is growing and just how quickly that scale is going on as well.

Curious if there's any appetite.

Darren Woods: I know ExxonMobil has consistently talked about you're only interested in power from a molecule's perspective, but just given how quickly that power demand is growing and just how quickly that scale is growing as well, curious if there's any appetite to start offering maybe traditional power first and then adding on carbon capture capabilities later on. Yeah. Thank you, Betty. It is an area where there's a lot of interest and activity, and we're very, very engaged with most of the hyperscalers on the opportunity set. As you pointed out, we're very focused on the carbon capture side, the carbon abated power side of the equation. The fact that power is growing and there's a lot of opportunities there doesn't translate into a value proposition unless you can bring a unique advantage to that space. Frankly, that's not the business that we're in.

To start offering maybe traditional powershares and then adding on carbon capture capabilities later on.

Thank you Betty and it isn't an area that where there's a lot of.

Bob.

Interest in activity and we're very very engaged with.

Darren. So, Google just recently, signed a, a power contract of, with gas power, plant with carbon capture. So, it's really great to see development on that front wondering how your conversation, um, is evolving. And, and I know Excel has consistently talked about your only interesting in power, from a molecule's perspective, but just given how quickly that power demand is growing and just how quickly that scale is growing as well.

Most of the Hyperscale or is on the opportunity set but as you pointed out we're very focused on.

curious if there's any appetite to start offering, maybe traditional power first, and then adding on carbon capture capabilities later on

The carbon capture side, the carbon abated power side of the equation. The fact that power is growing and there's a lot of opportunities there doesn't translate into a value proposition.

Yeah, thank you, Betty. It is an area that there's a lot of, um.

Unless you can bring a unique advantage to that space and frankly, that's not the business that we're in and so it is very much around providing decarbonize natural gas to power stations and then capturing the the <unk>.

Carbon and emissions on the back end of that so that we can offer a low carbon data centers, where we know more than 90% of the emissions are captured and abated. So that's the value proposition that we're pursuing there is a lot of interest in that space and we are also working with independent power producers too.

Interesting interest in in activity and we're very, very engaged with uh, uh, most of the hyperscalers on the opportunity set. But you you pointed out we're very focused on, um, the carbon capture side, the the, uh, carbon abated power side of the equation. The fact that power is growing and there's a lot of opportunities there does

Darren Woods: It is very much around providing decarbonized natural gas to power stations and then capturing the carbon and the emissions on the back end of that so that we can offer low-carbon data centers where more than 90% of the emissions are captured and abated. That's the value proposition that we're pursuing. There's a lot of interest in that space, and we are also working with independent power producers to work with them to provide the electron side of the equation while we provide the molecule side of the equation. I think we got out ahead of this. Frankly, as this started to break, we secured locations. We've got the existing infrastructure. We certainly have the know-how in the technology in terms of capturing, transporting, and storing it. We're in a pretty good place right now. We're pretty advanced in the conversations.

Work with them to provide the elektron side of the equation, while we provide the molecule side of the equation I think we got out ahead of this frankly as things as this started to break we we secured locations. We've got the existing infrastructure. We certainly have the knowhow in terms of the technology in terms of capturing transporting and storing it so we're in a pretty good.

Place right now are pretty advanced in the conversations I'm hopeful that many of these hyperscale is our sincere when they talk about the desire to decarbonize have low emission facilities, because certainly in the near to medium term.

We're probably the only realistic game in town to accomplish that I think we can do it pretty effectively and we can partner with these folks.

Darren Woods: I'm hopeful that many of these hyperscalers are sincere when they talk about the desire to decarbonize, have low-emission facilities because certainly in the near to medium term, we're probably the only realistic game in town to accomplish that. I think we can do it pretty effectively, and we can partner with these folks to continue that, to grow that, frankly, over time. That's where we stand. I'm optimistic at this point, but we're early in the game, and we'll see what gets translated into actual contracts and then into construction. I'm hopeful as well. Thank you very much for the color. You bet. The next question is from Jean Ann Salisbury with Bank of America. Good morning. I wanted to go back to the Proxxima. As you referenced in your prepared remarks, the first 12 to 18-month well results have started to come out, the Wood Mackenzie study.

To continue that.

To grow that frankly overtime.

So that's that's where we stand with I'm optimistic at this point, but we're early in the game and we'll see.

Kind of what gets translated into actual contracts and then into construction.

I'm hopeful as well thank you very much for the color that.

Has this started to break. We we secured locations. Uh, we've got the existing infrastructure, we certainly have the know-how in terms of in the technology in terms of capturing transporting and storing it. So we're in a pretty good place right now. We're pretty advanced in the conversations. I'm hopeful that, uh, many of these hyperscalers, uh, are sincere. When they talk about the desire to decarbonize have low emission facilities because uh, certainly in the near to medium-term. Uh, we're we're probably the only realistic game in town to accomplish that and I think we can do it pretty effectively. And we can partner with these folks. Um,

The next question is from Jean Ann Salisbury with Bank of America.

Good morning, I wanted to go back to the proppant.

To continue that uh, to grow that frankly over time. Um, so that's that's where we stand. I'm I'm optimistic at this point but we're early in the game and we'll see, uh, kind of what what gets translated into actual contracts and then into Construction,

Referenced in your prepared remarks, the first like 12 to 18 month well results have started to come out to the Woodmac study and the results have been really positive and as you've been able to get more data. This year is there any other granularity you can share on where you think you are able to improve recovery at the most and like for example.

Um hopeful as well. Thank you very much for the color.

You bet.

The next question is from Jean.

Elizabeth.

America.

<unk>.

The deeper zone et cetera, and is there anything you can comment on how you see the strength of your patents or other barriers to entry are keeping others from copying it.

Darren Woods: The results have been really positive. As you've been able to get more data this year, is there any other granularity you can share on where you think you're able to improve recovery the most, for example, gassier zones, oilier zones, deeper zones, etc.? Is there anything you can comment on how you see the strength of your patent or other barriers to entry keeping others from copying it? Sure. I think to come back to the Proxxima itself. Remember, what we're doing here is, as you get the fracs, finding ways to get Proxxima deeper penetration into those cracks. It's really a function of, I'd say, the rock and the properties of the rock and the ability to flow the material that has made this as successful as it is. I would also tell you that we're continuing to optimize and fine-tune that.

Sure I think to come back to.

The proppant itself remember what we're doing here is as.

Good morning. Um, I wanted to go back to the province, uh, as you referenced in your prepared remarks, uh, the first like 12 to 18 months. Well, results have started to come out, uh, the woodmaxx study. Um, and you know, there is also been really positive, um, as you've been able to get more data this year, is there any other granularity you can share on where your think you're able to improve recovery the most, um, like

As you get the Fracs finding ways to get proppant deeper.

Deeper penetration into those cracks so it's really a function of I'd say, the rock and the properties of the rock and the ability to flow the material.

For example, a gas year zones, oilier zones, deeper zones, Etc, and is there anything you can comment on how you see the strength of your patent or other barriers to entry uh keeping others from copying it?

Has made this.

As successful as it is I would also tell you that we're continuing to optimize and.

Fine tune that so I don't know that we're at the we're certainly not at the end of the learning curve with that and so I hope to see continued improvements in that space. I would also tell you that it is just one of a number of technologies that we are pursuing along that whole production process to try to improve recoveries lower.

Darren Woods: I don't know that we're at the—we're certainly not at the end of the learning curve with that. I hope to see continued improvements in that space. I would also tell you that it is just one of a number of technologies that we are pursuing along that whole production process to try to improve recoveries, lower our capital. The pipeline's pretty promising, and we're going to hopefully give you a perspective on that in December when we talk about the plan going forward. I would think about the lightweight Proxxima as just one of a number of levers that we're pursuing. We feel good about what we see there. We think there's additional potential. I would also say that we see other technologies that will work in conjunction with those and be additive with respect to recovery. You remember I challenged our technology organization to double recovery.

Sure. I think, you know, to come back to uh, the prop in itself. Remember, what we're doing here is, uh, as you get the facts finding ways to get profit, uh, deeper, you know, deeper penetration into those cracks. So, it's really a function of of, I'd say the Rock and the properties of The Rock and and the ability to flow the material that has made this, uh, this successful as it is. I would also tell you that we're continuing to optimize and uh,

Our capital and the pipeline's pretty promising and we were going to hopefully give you a perspective on that in December when we talk about the plan going forward, but I would I would think about the lightweight proppant is just one of a number of levers that we're pursuing we feel good about what we see there. We think there is potential additional potential but I would also.

Fine-tune that so I don't know that we're at the we're certainly not at the end of the the learning curve with that and so I hope to see continued improvements in that space. I would also tell you that it is just 1.

Say that we see other technologies that will work in conjunction with those and be additive with respect to recovery, you'll remember I challenged our technology organization to double rig.

Recovery and at the time, we did that.

We didn't have a path or a line of sight to how we would do it but we just recognize given how early we are we were in the technology cycle, there should be opportunities there and our job was to go find them I would say today that we've got a pipeline and certainly a line of sight to how we might do that.

Of a number of technologies that we are pursuing along that whole, uh, production process to try to improve, uh, recoveries lower our capital, and the pipelines, uh, pretty promising. And we we're going to hopefully give you a prospective on that in December when we talk about the plan going forward but I would I would think about the lightweight propping is just 1 of a number of levers that we're pursuing. We feel good about what we see there. We think there's at additional potential but I would also say that we see other technologies that will work in in conjunction with those in.

Darren Woods: At the time we did that, we didn't have a path or a line of sight to how we would do it. We just recognized, given how early we were in the technology cycle, there should be opportunities there, and our job was to go find them. I would say today that we've got a pipeline and certainly a line of sight to how we might do that. We've got a number of things we've got to make work and a number of technologies that have to prove themselves. We've come from kind of a white sheet of paper to one that's now filled out with a lot of ideas that we're pursuing. I would say we're well on the way to making some of that a reality. With respect to protecting it, we feel pretty good about the patent.

Be additive with respect to recovery. You remember, I challenged our technology organization to double

We've got a number of things we've got to make work in a number of technologies that have to prove themselves, but we've come from kind of a white sheet of paper to one that's now filled out with a lot of ideas that we're pursuing so.

I would say, where we're well on our way to.

Making some of that a reality.

With respect to.

Protecting it but we feel pretty good about the patent we feel pretty good about the supply of the raw materials that that.

The patent covers and everything that we're pursuing in this space, we're very focused on protecting because we do feel the technology proprietary and the benefits of the technology, therefore should be proprietary to exxonmobil.

Recovery. And at the time we did that, um, we didn't have a a path or a line of sight to how we would do it. But we just recognize given how early we are. We were in the technology cycle, there should be opportunities there in our job, was to go find them. I would say today, uh, that we've got a pipeline and certainly a line of sight to how we might do that. We've got a, we've got a number of things, we've got to make work and a number of technologies that have to prove themselves. But we've come from uh, kind of a white sheet of paper to to 1. That's now filled out with a lot of ideas that were pursuing. So

Darren Woods: We feel pretty good about the supply of the raw materials that the patent covers. Everything that we're pursuing in this space, we're very focused on protecting because we do feel the technology is proprietary, and the benefits of that technology, therefore, should be proprietary to ExxonMobil. Great. Thank you. You bet. The next question is from Jason Gabelman of TD Cowen. Morning. Thanks for taking my question. I want to go back to the exploration discussion because it was notable since we last spoke. You've entered into multiple new blocks to expand exploration. It's not only ExxonMobil pursuing additional exploration efforts, but you're seeing peers advertise their kind of exploration intentions also. The question is really, what do you think is driving this industry trend, and do you see competition to enter?

Great. Thank you you bet.

The next question is from Jason Gere Bowman of TD Cowen.

Good morning, Thanks for taking my question.

I wanted to go back to the exploration discussion because it was.

I would say we're we're we're we're well on the way to uh making some of that a reality and um with respect to um protecting it, we feel pretty good about the patent. We feel pretty good about the, uh, the supply of the, the raw materials that that uh the patent covers and everything that we're pursuing in this space. We're very focused on protecting because we do feel, the technology is proprietary, and the benefits of that technology, therefore should be proprietary to Exxon Mobil.

Notable since we last spoke you've you've entered into multiple new blocks to expand exploration and it's not only <unk>.

Great. Thank you.

You bet.

The next question is from Jason Gableman of TD Cowen.

Exxon pursuing additional exploration efforts, but youre seeing.

Peers advertise their kind of ex exploration intentions also so the question is really what what do you think is driving this and industry trend and do you see competition to enter into new blocks.

Becoming more competitive and I'm thinking given exxon's view that that shale is going so I guess in the next five to 10 years is that.

Decent part of why you've you've seen kind of the industry focus more on exploration.

Operator: New blocks, becoming more competitive. I'm thinking, given ExxonMobil's view that shale is going to the toe, I guess, in the next 5 to 10 years, is that a decent part of why you've seen kind of the industry focus more on exploration? Thanks.

Yes sure.

So I think going all the way back I can remember.

I'm talking in this form in 2020, when the industry had sharply pulled back and we were somewhat in isolation with continue our investment program, making the point in the case that with the depletion curve. The industry has to continue to think long term invest and find resources.

The new blocks are becoming more competitive, and I'm thinking, given Exxon’s view, that Shell is going to toe the line. I guess in the next 5 to 10 years, is that a decent part of why you've seen kind of the industry focus more on exploration? Thanks.

Jim Chapman: Yeah, sure. I think going all the way back, I can remember talking in this forum in 2020 when the industry had sharply pulled back and we were somewhat in isolation with continuing our investment program, making the point in the case that with the depletion curve, the industry has to continue to think long-term, invest, and find resources. I think you're now seeing that play out. The unconventional that you mentioned obviously filled a hole in the short term, but like all resources, there's a finite life, particularly when you don't have the technology portfolio that we do where we can advance and grow the recoveries. Unlike many of our competitors in the unconventional space, where they see maybe production plateauing or even declining, we continue to see an opportunity to grow production with the technologies that I've been referencing.

That I think you've now seen play out the unconventional that you mentioned, obviously filled a hole in the short term, but like all resources, there's a finite life, particularly when you don't have the technology portfolio that we do where we can advance and grow the recoveries and so unlike many of our competitors in the unconventional space where they.

See maybe production plateauing or even declining declining we continue to see an opportunity to grow production with the technologies that I've been referencing so I think as an industry as a whole I think people see that that resource in the horizon of it and so are shifting now to the longer term.

Longer cycle.

Projects out there.

From my perspective, we've never taken our eye off of that continue to work. It it's always been a very competitive space and frankly from my perspective.

Jim Chapman: I think as an industry as a whole, people see that resource and the horizon of it. We're shifting now to the longer term, longer cycle projects that are out there. From my perspective, we've never taken our eye off of that, continued to work it. It's always been a very competitive space. Frankly, from my perspective, the way you succeed in a very competitive environment is to bring unique capabilities and advantage. It keeps coming back to the things that we've been working on. Resource owners want to see cost-efficient development. They want to see developments that happen quickly, that are on schedule, don't have overruns, so that they can start accruing the benefits of that resource development quickly. Guyana is a great example of that.

Yeah sure. Um so I think going all the way back? I can remember uh talking in this form in 2020 when you know the industry had sharply pulled back and we were uh somewhat in isolation with continue our investment program. Making the point in the case that with the depletion curve the industry has to continue to think long term invest and find resources um that I think you're now seeing play out the the unconventional that you mentioned. Obviously filled a hole in the short term but like all resources there's a finite life particularly when you don't have the technology Port portfolio that we do where we can advance and grow the recovery. And so unlike many of our competitors in the unconventional space where they see maybe production plateauing or even declining, declining, we continue to see an opportunity to grow uh, production with the technologies that I've been referencing. So I think as an industry, as a whole, I think people see that.

Way you succeed in a very competitive environment is to bring unique capabilities, an advantage and so it keeps coming back to the things that we've been working on resource owners want to see a cost efficient development. They want to see developments that happened quickly that are on scheduled don't have overruns and so that they can start accruing the benefits of that.

That resource is in the horizon of it. And so, we are shifting now to the longer term, uh, longer cycle projects that are out there.

Resource development quickly of Guyana is a great example of that so our work has been on improving our abilities to.

Bring a unique set of skills technology projects capabilities. So that we can develop resources more cost effectively which resource owners ultimately pay for so.

They like that and to bring it out quicker so that they can.

Jim Chapman: Our work has been on improving our abilities to bring a unique set of skills, technology, project capabilities so that we can develop resources more cost-effectively, which resource owners ultimately pay for. They like that and to bring it on quicker so that they can benefit from the resource development in a sooner time frame. All those things play to our strengths. I think that gives us a competitive advantage. Importantly, they know that we have been steadfast in our focus in this space. We don't blow with the winds. We don't come in and out of this. They know when we commit to something that we're going to deliver on that. Those things I think give us a bit of an edge, an advantage in the discussions.

Benefit from the resource development in a sooner timeframe. So all those things play to our strengths I think that gives us a competitive advantage I think importantly, too. They know that we have been steadfast in our focus in this space, we don't blow with the wins, we don't come in and out of this and so they know when we commit to something that we're going to deliver on that so though.

These things I think give us a bit of an edge an advantage in the discussions and I think you see that manifesting itself in some of the announcements that we've made with some of the opportunities that we're pursuing.

Um from my perspective we've never taken our eye off of that continue to work. It it's always been a very competitive space and and frankly from my perspective uh the way you succeed in a very competitive environment is to bring unique capabilities and advantage and so it keeps coming back to the things that we've been working on. Uh resource owners. Want to see uh, cost efficient development, they want to see developments that happen. Quickly, that are on schedule, don't have overruns and so that they can start accruing, the benefits of that resource development. Uh, quickly Guyana is a great example of that. So our work has been on improving our abilities to um, bring a unique set of skills, uh, technology projects capabilities so that we can develop resources more cost-effectively which resource owners ultimately pay for. So, uh, they like that and to bring it on quicker so that they can, um, benefit from the resource development and the sooner time frame. So, all those things,

Yeah.

Alright, thanks for the color Darren you bet.

The next question is from Paul Sankey of Thank you research.

Jim Chapman: I think you see that manifesting itself in some of the announcements that we've made with some of the opportunities that we're pursuing.

Good morning, everyone.

You've referenced a lot of this already on this call, but I wondered if you could give exxon mobil's perspective on the current AI Capex boom.

Operator: Great. Thanks for the color, Darren.

Play to our strengths. I think that gives us a competitive Advantage. I think importantly, too. They know that we have been steadfast in our focus in this space, we don't blow with the winds. Uh, we don't come in and out of this and so they know when we commit to something that we're going to deliver on that. So those things I think give us a bit of an edge uh, an advantage in the discussions. And I think you see that manifesting itself and some of the announcements that we've made with some of the opportunities that we're pursuing

Jim Chapman: You bet.

Great. Thanks for the caller D.

You bet.

Especially as you're bringing down your capex guidance today.

Darren Woods: The next question is from Paul Sankey of Sankey Research.

And it's sort of a process and strategy question a high level.

Kathy Mikells: Morning, everyone. You've referenced a lot of this already on this call, but I wondered if you could give ExxonMobil's perspective on the current AI CapEx boom, especially as you're bringing down your CapEx guidance today. It's sort of a process and strategy question, high level. Your CapEx, your peak CapEx spending at ExxonMobil in around 2013 was over $30 billion a year, which would be about $40 billion in today's dollars. If we look at Meta alone, they've got a trailing run rate of your peak $30 billion and are going to $70 billion this year and next. Could you talk about, Darren, the challenges that you envisage for that kind of capital deployment from a management perspective, firstly? Secondly, I wondered, given the speed of this, what are the impacts directly on your business? What are the areas where this boom is either challenging or benefiting you?

The next question is from Paul sanki of sanki research.

Youll Capex Youll peak Capex spending of Exxon and around 2013 was over $30 billion a year.

Which would be about $40 billion in today's dollars.

Good morning everyone. Um, you've referenced a lot of this already on this call, but I wondered, if you could give Exxon Mobile's perspective on the current AI capex, boom.

If we look at meta alone the good a trailing run rate of your peak 30 billion.

On a go into 70 billion this year and next could you talk about the challenges that you envisage.

So that kind of capital deployment from a management perspective, Firstly and secondly, I wanted to given the speed of this what are the impacts directly on your business what are the areas where this boom is are the challenging well benefiting it. Thank you.

Yeah sure Paul I can't say I can speak with much insight on.

What some of the hyperscale or as Youre doing your med is doing with their capital I will just say generically that it is very difficult to effectively and efficiently.

Uh, especially as you bringing down your capex guidance today, and it's sort of a a process and strategy question a high level. Um, you'll capex your Peak capex spending at Exxon and around 2013 was over 30 billion dollars a year, which would be about forty billion dollars in today's dollars. If we look at meta alone, they've got a trailing run rate of your Peak 30 billion and are going to 70 billion this year. And next could you talk about down the the challenges that you envisage uh for that kind of capital deployment from a management perspective. Firstly and secondly I wanted to give them the speed of this. What are the

Kathy Mikells: Thank you.

Swing capitals from from one level to another level.

Impacts directly on your business. What are the areas where this boom is either challenging or benefiting you? Thank you.

Jim Chapman: Yeah, sure, Paul. I can't say I can speak with much insight on what some of the hyperscalers are doing or Meta is doing with their capital. I will just say generically that it is very difficult to effectively and efficiently swing capital from, you know, one level to another level that's, you know, materially different. I mean, our approach is to have long-term plans, as you know, to basically meticulously develop plans with rigor and then execute those with excellence. That's how we think about it. The lower guidance that you heard, that we've talked about today, is not a function of a change in activity set. We're still pursuing the same opportunities, the same businesses. It is very consistent with what we talked about last year, which is there are things that we've built in the plan that have more uncertainty than our base business.

See materially different. So we are our approach is to have long term plans as you know to basically.

Meticulously develop plans with rigor and then execute those with excellence and that's how we think about it the lower guidance that you're you heard that we've talked about today is not a function of a change in activity said, we're still pursuing the same opportunity. The same businesses. It is and it is very <unk>.

System with what we talked about.

Last year, which is there are things that we built in the plan that has more uncertainty than our base business. These new things that we're developing new businesses data centers are one of them a low carbon solutions are another carbon material ventures proximal all of these things where you are.

Going into new markets that are at the very early stages of their growth is theres a lot of uncertainty as to when those things actually materialize into concrete.

We've talked about today is not a function of a change in Activity Set. We're still pursuing the same opportunity the same businesses. It is in. It is very consistent with what we talked about.

Jim Chapman: These new things that we're developing, new businesses, data centers are one of them, low carbon solutions are another, the carbon material ventures, Proxxima, all these things where you're, you know, going into new markets that are at the very early stages of their growth, there's a lot of uncertainty as to when those things actually materialize into concrete opportunities. We talked about that last year. What you see happening is as that market evolves and those opportunities begin to materialize and the schedule gets clearer and clearer, we're shifting our capital in line with that to make sure that when we do make the investments, we generate the returns that we expect of ourselves that are advantageous versus the rest of the industry.

Opportunities and we talked about that last year and what you see happening is as that market evolves and those material those opportunities begin to materialize in the schedule gets clearer and clearer we're shifting our capital in line with that to make sure that when we do make the investments we generate the returns that we expect of ourselves that are advantaged versus the rest of industry and so I would really.

<unk>.

Just caution everyone to take the changes in the Capex that you're hearing today is a reflection of in my mind, what we referred to as disciplined capital spending which is not cutting capex, but spending it in a wise way.

With respect to the AI piece of it.

Jim Chapman: I would really just caution everyone to take the changes in the CapEx that you're hearing today as a reflection of, in my mind, what we refer to as disciplined capital spending, which is not cutting CapEx, but spending it in a wise way. With respect to the AI piece of it, we certainly see the business opportunity there with the low carbon data centers. As I said earlier, there is a lot of interest in what we could bring to this space, particularly in the near term, and so we're continuing to pursue that. My gut tells me that those opportunities will materialize and they'll become a part of our portfolio. We'll leverage the Denbury acquisition that we made some time ago to really help accelerate decarbonization of data centers.

We certainly see.

The business opportunity there with the low carbon data centers and as I said earlier there is a lot of interest in what we can bring to this space, particularly in the near term and so we're continuing to pursue that my my gut tells me that that those opportunities will materialize and there'll be become a part of our portfolio and we will leverage the denburg acquisition that.

Um, last year, which is, there are things that we've built in the plan that has more more uncertainty than our base business. These new things that we're developing new businesses data centers, are 1 of them, a low. Carbon Solutions are another uh the carbon material of Interest Proxima. All these things where you're, you know, going into new markets. Uh, that are at the very early stages of, uh, their growth is, there's a lot of uncertainty as to when those things actually materialize into concrete, uh, opportunities. And we, we talked about that last year. And what you see happening is as that market evolves, and those material, those opportunities begin to materialize and the schedule gets clearer and clearer. We're shifting our capital in line with that. To make sure that when we do make the Investments, we generate the returns that we expect of ourselves that our advantage versus the rest of industry. And so, I would really

I just caution everyone to take the changes in the CapEx that you're hearing today as a reflection of, in my mind, what we refer to as disciplined capital spending, which is not cutting CapEx, but spending it in a wise way.

We made some time ago to really help accelerate.

De carbonization of data centers, and then within within our own four walls here with our centralized technology organization.

Which has.

I T and artificial intelligence and the whole technology set around digital is part of that integrated technology organization, we see huge opportunities with AI and in fact, we're deploying that today, we're deploying it downhole and the work that we're doing in the Permian, we're deploying it in or.

Jim Chapman: Within our own four walls here with our centralized technology organization, which has IT and artificial intelligence and the whole technology set around digital as part of that integrated technology organization, we see huge opportunities with AI. In fact, we're deploying that today. We're deploying it downhole and the work that we're doing in the Permian, we're deploying it in our operating sites around the world. Anywhere we've got a lot of data, we're using AI to help make sure that we're learning as much as we can from that data and optimizing our production. We see a lot of value coming from that today and a lot more value coming forward in the future. I will say we're taking maybe a slightly different approach than many of the folks I see out there, which is, we've stepped back and said, you know, what moves the needle?

With respect to the AI piece of it. Uh, we certainly see, uh, the business opportunity there with the low carbon data centers. And as I said earlier, there is a lot of interest in, in what we could bring to this space, particularly in the, the near-term. Uh, and so we're continuing to pursue that my, my gut tells me that that those opportunities will materialize. And they'll be become a part of our portfolio and we'll leverage the Denver acquisition that we made some time ago to, to really help accelerate, um, decarbonization of data centers, and then within within our uh, own uh, 4 Walls here with our centralized technology organization.

Operating sites around the world anything where we've got a lot of data.

We're using AI.

To help make sure that we're learning as much as we can from that data and optimizing our production and so we see a lot of value coming from that today in a lot more value coming forward in the future I will say, we're taking maybe a slightly different approach than many of our many of the folks I see out there, which is we've stepped back and said you know what moves the needle.

Uh which has um it and and artificial intelligence, and the whole technology set around uh digital is part of that integrated technology organization, we see huge opportunities with AI. And in fact, uh, we're deploying that today, we're we're deploying it downhole and and the work that we're doing and the Permian we're deploying it.

In our operating sites around the world, anything where we've got a lot of data, we're using AI.

Where do we want to focus this effort. So it's it is not a <unk>.

Scattershot approach here. It is a very focused and material movement in the areas that will make a big difference to the corporation and we're making great progress in that space.

Jim Chapman: Where do we want to focus this effort? It is not a scattershot approach here. It is a very focused and material movement in the areas that will make a big difference to the corporation. We're making great progress in that space. Thank you. You bet. Thank you.

Thank you you bet. Thank you.

To help make sure that we're learning as much as we can from that data and optimizing our production. And so we see a lot of value coming from that today. And a lot more value coming forth in the future. I will say, we're taking maybe a slightly different approach, uh, than than many of our, uh, many of the folks, I see out there which is, uh, We've stepped back and said, you know what moves the needle? Where do we want to focus?

This effort—so it is not a, um,

We have time for one more question. Our final question will be from Phillip Jungwirth of BMO.

Hi, Thanks, Thanks for taking the question.

Refining margins have been pretty supportive this year and were a contributor to sequential earnings growth in the quarter.

Scattershot approach here. It is a very focused and material movement in the areas that will make a big difference to the corporation, and we're making great progress in that space.

Thank you.

Darren Woods: We have time for one more question. Our final question will be from Philip Jungwirth of BMO.

You bet. Thank you.

A lot of moving pieces here at the moment with just hoping you could touch on how you see the market considering OPEC unwind.

We have time for one more question. Our final question will be from Philip Jung of BMO.

[Analyst]: Thanks for taking the question. Refining margins have been pretty supportive this year, and were a contributor to sequential earnings growth in the quarter. A lot of moving pieces here at the moment. I was just hoping you could touch on how you see the market, considering OPEC unwinds, supply disruptions, resilient demand, and then also touch on the Baytown project you FID'd this quarter and just how you're positioning the business based on the longer-term outlook.

Fly disruption resilient demand and then also touch on the Baytown projects this quarter and just how youre positioning the business based on the longer term outlook.

Sure. So I guess, the first context to set with respect to this as the demand for petroleum products and while ultimately that backs up into crude I think it's really important to them.

Point out that there are two supply demand balances at play here. One is on the crude side, which is the feed that goes into the refinery and then there's the other on the product side and they are those are two separate supply demand.

I think thanks for taking the question. Uh we're finding margins have been pretty supportive this year and we're a contributor to sequential learnings growth in the quarter. Uh a lot of moving pieces here at the moment was just hoping you could touch on how you see the market considering OPEC unwinds, apply to disruptions resilient demand, and then also touch on the The Baytown project uid this quarter and just how your position in the business based on the longer term Outlook.

Jim Chapman: Sure. I guess the first context to set with respect to this is the demand for petroleum products. While ultimately that backs up into crude, I think it's really important to point out that there are two supply-demand balances at play here. One is on the crude side, which is the feed that goes into the refinery. Then there's the other on the product side. Those are two separate supply-demand balances that have an impact on refining margins. What we've seen here of late is a looser crude market, and therefore the feed side of the equation has been looser and prices have come down. You've got cheaper feedstock. On the product side of the equation, we've seen capacity coming offline and supply disruptions around the world. That is tightening the product side of the equation, the supply-demand balance. We see prices going up.

Our balances that have.

<unk> have an impact on refining margins and so what we've seen here of late is a looser crude market and therefore, the feed side of the equations.

Been looser and prices have come down so you've got cheaper feedstock and then on the product side of the equation, we've seen capacity coming offline and supply disruptions around the world and that is tightening.

The product side of the equation the supply demand balance and so we see prices going up and so that has benefited the refining industry as a whole and so for those of those companies that have refineries that are up and running reliably.

Sure. So I guess the the first context to set with respect to this is the demand for petroleum products and while ultimately that backs up into crude, I think it's really important to, uh, point out that there are 2, Supply demand balances at play here. Uh, 1 is on the crude side, which is the feed that goes into the refinery and then there's the other on the product side and they are those are 2 separate, uh, Supply demand, uh, balances that, uh, have an impact on refining margins. And so, what we've seen here of late is, uh, a looser, uh,

They've added significantly to the bottom line and frankly for the work that we've been doing in our company third quarter. We saw the highest reliability that we've ever had so the work that we've done with our centralized global operations organization is really paying off not only driving down significantly driving down our maintenance costs at the same time were drive.

Jim Chapman: That has benefited the refining industry as a whole. For those companies that have refineries that are up and running reliably, they've added significantly to the bottom line. Frankly, for the work that we've been doing in our company, the third quarter, we saw the highest reliability that we've ever had. The work that we've done with the centralized global operations organization is really paying off. Not only are we significantly driving down our maintenance cost, at the same time, we're driving our portfolio reliability to very high levels. On top of that, as you know, we've been very focused on really making sure that we're high-grading our refinery footprint and putting our efforts and investments in the sites that have diversified product offerings that have advantaged conversion and that have low cost so that they will be resilient to a number of potential supply-demand environments.

<unk>, our portfolio reliability to very high levels on top of that as you know we've been very focused on.

Really making sure that we're high grading our refinery footprint and.

Putting our efforts and investments in the sites that have diversified our product offerings.

That have advantage conversion and that have a low cost so that they will be resilient to a number of.

Organization is really paying off. Not only are we driving down our maintenance costs significantly, but at the same time we're driving our portfolio reliability to very high levels. On top of that, as you know, we've been very focused on.

Potential.

Supply demand environment. So as a result of that we have much much fewer refineries today that are much much.

More effective at converting crude to the products that society needs and so we've really upgraded the footprint of the refinery and then the last point, which you touched on is within those refineries that we say are strategic and have an advantage in the base case, how do we continue to grow that that advantage and it really is a function of high grading.

Jim Chapman: As a result of that, we have much fewer refineries today that are much more effective at converting crude to the products that society needs. We've really upgraded the footprint of the refinery. The last point, which you touched on, is within those refineries that we say are strategic and have an advantage in the base case, how do we continue to grow that advantage? It really is a function of high-grading the molecules in the refineries. We're taking the low-value products that come out of a barrel of crude and putting in the conversion capacity to make those high-value products.

The molecules and the refineries were taking the low value products that come out of a barrel of crude and putting in the conversion capacity to make those high value products.

The most recent and significant example of that is what we did in Singapore with our Crisp project, where we took the lowest value product residue and fuel oil make and converted that to some of our highest value products with a brand new to the world of lubricant base stocks and additional diesel and so a great example of a proprietary new the world.

Really making sure that we're high-grading our Refinery footprint and putting our efforts and investments in the sites that have Diversified, uh, product offerings, that that have Advantage conversion and that have low cost so that they will be resilient to, uh, a number of, uh, potential, uh, Supply demand, uh, environments. So, as a result of that, we have a much much fewer refineries today that are much much, uh, more effective at converting crude to the products that Society needs. And so we've really upgraded the footprint of the refinery and then the last point which you touched on is within those refineries that, we say our strategic and have an advantage in the base case, how do we continue to grow the that advantage? And it really is a function of high-grading.

Jim Chapman: The most recent and significant example of that is what we did in Singapore with our resid upgrade project, where we took the lowest-value product, residue and fuel oil make, and converted that to some of our highest-value products with a brand new to the world lubricant base stocks and additional diesel. A great example of a proprietary new-to-the-world process to make higher-value products, in fact, new-to-the-world products with respect to one of our base stocks. A great example of what we're trying to do there, the Baytown project is a continued step in that direction, which is find a way to high-grade the molecule and the conversion that you have in the refinery. We've got really good opportunities with that asset base, and we're pursuing them aggressively. They come with very good returns and very resilient returns.

The molecules and the refined rates—we're taking the low-value products that come out of a barrel of crude and putting in the conversion capacity to make those high-value products.

<unk> to make a higher value products and in fact, new to the world products with respect to one of our base stocks and so.

Great example of what we're trying to do there. The Baytown project is a continued step in that direction, which is find a way to high grade the molecule and the conversion that you have in the refinery and we've got really good opportunities with that asset base, and we're pursuing them aggressively and they come with very.

Good returns and very resilient returns.

Okay Bill Thank you and thanks, everybody for joining this call and for all the questions.

We will post a transcript of this call to the investors section of our website early next week.

And we look forward to connecting on December 9th for our corporate plan update and have a good weekend.

The most recent and significant example of that is what we did in Singapore with our crisp project where we took the lowest value product, uh, residue and fuel oil, make and converted that to some of our highest value products with a brand new to the world, a lubricant base, stocks and additional Diesel. And so a great example of a proprietary new the world process to make a higher value products. In fact, new to the World products with respect to 1 of our base stocks. And so a great example of what we're trying to do there The Baytown, uh, project is a continued step in that direction which is find a way to high-grade the molecule in the conversion that you have in the refinery. And we've got really good opportunities with that asset base and uh, we're pursuing a aggressively and they they they come with very uh good returns and very resilient returns

[Company Representative]: Okay, Phil, thank you. Thank you to everybody for joining this call and for all the questions. We will post the transcript of this call to the investors section of our website early next week. We look forward to connecting on December 9th for our corporate plan update. Have a good weekend.

Call them for all the questions.

We will post the transcript of this call to the investors section of our website early next week.

And we look forward to connecting on December 9th for our corporate Plan update.

And have a good weekend.