EXXON MOBIL CORP - Quarter Report: 2025 March (Form 10-Q)

Condensed Consolidated Statement of Changes in Equity - Three months ended March 31, 2025 and 2024

Notes to Condensed Consolidated Financial Statements

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Item 4. Controls and Procedures

PART II. OTHER INFORMATIONItem 1. Legal Proceedings

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

Item 5. Other Information

Item 6. Exhibits

Index to Exhibits

Signature

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PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS


CONDENSED CONSOLIDATED STATEMENT OF INCOME


2025			2024
Revenues and other income
Sales and other operating revenue
Income from equity affiliates
Other income
Total revenues and other income
Costs and other deductions
Crude oil and product purchases
Production and manufacturing expenses
Selling, general and administrative expenses
Depreciation and depletion (includes impairments)
Exploration expenses, including dry holes
Non-service pension and postretirement benefit expense
Interest expense
Other taxes and duties
Total costs and other deductions
Income (loss) before income taxes
Income tax expense (benefit)
Net income (loss) including noncontrolling interests
Net income (loss) attributable to noncontrolling interests
Net income (loss) attributable to ExxonMobil

Earnings (loss) per common share (dollars)

Earnings (loss) per common share - assuming dilution (dollars)

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME


2025	2024
Net income (loss) including noncontrolling interests

Other comprehensive income (net of income taxes)
Foreign exchange translation adjustment		()

Postretirement benefits reserves adjustment (excluding amortization)	()	()
Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs
Total other comprehensive income (loss)		()
Comprehensive income (loss) including noncontrolling interests
Comprehensive income (loss) attributable to noncontrolling interests
Comprehensive income (loss) attributable to ExxonMobil

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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CONDENSED CONSOLIDATED BALANCE SHEET


(millions of dollars, unless noted)	March 31, 2025	December 31, 2024

ASSETS
Current assets
Cash and cash equivalents
Cash and cash equivalents – restricted
Notes and accounts receivable – net
Inventories
Crude oil, products and merchandise
Materials and supplies
Other current assets
Total current assets
Investments, advances and long-term receivables
Property, plant and equipment – net
Other assets, including intangibles – net
Total Assets

LIABILITIES
Current liabilities
Notes and loans payable
Accounts payable and accrued liabilities
Income taxes payable
Total current liabilities
Long-term debt
Postretirement benefits reserves
Deferred income tax liabilities
Long-term obligations to equity companies
Other long-term obligations
Total Liabilities

Commitments and contingencies (Note 3)

EQUITY
Common stock without par value ( million shares authorized, million shares issued)
Earnings reinvested
Accumulated other comprehensive income	()	()
Common stock held in treasury ( million shares at March 31, 2025 and million shares at December 31, 2024)	()	()
ExxonMobil share of equity
Noncontrolling interests
Total Equity
Total Liabilities and Equity

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS


(millions of dollars)	Three Months Ended March 31,
	2025	2024

CASH FLOWS FROM OPERATING ACTIVITIES
Net income (loss) including noncontrolling interests
Depreciation and depletion (includes impairments)
Changes in operational working capital, excluding cash and debt	()
All other items – net		()
Net cash provided by operating activities

CASH FLOWS FROM INVESTING ACTIVITIES
Additions to property, plant and equipment	()	()
Proceeds from asset sales and returns of investments
Additional investments and advances	()	()
Other investing activities including collection of advances

Net cash used in investing activities	()	()

CASH FLOWS FROM FINANCING ACTIVITIES
Additions to long-term debt
Reductions in long-term debt	()

Reductions in short-term debt	()	()
Additions/(reductions) in debt with three months or less maturity	()	()

Cash dividends to ExxonMobil shareholders	()	()
Cash dividends to noncontrolling interests	()	()
Changes in noncontrolling interests	()	()
Inflows from noncontrolling interests for major projects
Common stock acquired	()	()
Net cash used in financing activities	()	()

Effects of exchange rate changes on cash		()
Increase/(decrease) in cash and cash equivalents (including restricted)	()
Cash and cash equivalents at beginning of period (including restricted)
Cash and cash equivalents at end of period (including restricted)

SUPPLEMENTAL DISCLOSURES
Income taxes paid
Cash interest paid
Included in cash flows from operating activities
Capitalized, included in cash flows from investing activities
Total cash interest paid

Noncash right of use assets recorded in exchange for lease liabilities
Operating leases
Finance leases



The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

ExxonMobil Share of Equity

(millions of dollars, unless noted)

Common Stock

Earnings Reinvested

Accumulated Other Comprehensive Income

Common Stock Held
in Treasury

ExxonMobil Share of Equity

Non-controlling Interests

Total
Equity

Balance as of December 31, 2023

()

Amortization of stock-based awards

—

Other

()

—

()

Net income (loss) for the period

—

Dividends - common shares

—

()

—

()

Other comprehensive income (loss)

—

()

—

()

Share repurchases, at cost

—

()

—

()

Dispositions

—

Balance as of March 31, 2024

()

Balance as of December 31, 2024

()

Amortization of stock-based awards

—

Other

()

—

()

Net income (loss) for the period

—

Dividends - common shares

—

()

—

()

Other comprehensive income (loss)

—

Share repurchases, at cost

—

()

—

()

Dispositions

—

Balance as of March 31, 2025

()

Three Months Ended March 31, 2025

Three Months Ended March 31, 2024

Common Stock Share Activity

(millions of shares)

Issued

Held in Treasury

Outstanding

Issued

Held in Treasury

Outstanding

Balance as of December 31

()

Share repurchases, at cost

—

()

—

()

Dispositions

—

Balance as of March 31

()

The information in the Notes to Condensed Consolidated Financial Statements is an integral part of these statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

million shares of ExxonMobil common stock having a fair value of $ billion on the acquisition date, and assumed debt with a fair value of $ billion.

The transaction was accounted for as a business combination in accordance with ASC 805, which requires that assets acquired and liabilities assumed be recognized at their fair values as of the acquisition date.

Other non-current assets

Property, plant & equipment (2)

Total identifiable assets acquired

Current liabilities (1)

Long-term debt (3)

Deferred income tax liabilities (4)

Other non-current liabilities Total liabilities assumed Net identifiable assets acquired

Goodwill (5)

Net assets (6)

(1) Current assets and current liabilities consist primarily of accounts receivable and payable, with their respective fair values approximating historical values given their short-term duration, expectation of insignificant bad debt expense, and our credit rating.

(2) Property, plant and equipment, of which a significant portion relates to crude oil and natural gas properties, was primarily valued using the income approach. Significant inputs and assumptions used in the income approach included estimates for commodity prices, future oil and gas production volumes, drilling and development costs, and risk-adjusted discount rates. Collectively, these inputs are level 3 inputs.

(3) Long-term debt was valued using market prices as of the acquisition date, which reflects the use of level 1 inputs.

(4) Deferred income taxes represent the tax effects of differences in the tax basis and acquisition date fair values of assets acquired and liabilities assumed.

(5) Goodwill was allocated to the Upstream segment.

(6) Provisional fair value measurements were made for assets acquired and liabilities assumed. Adjustments to those measurements may be made in subsequent periods, up to one year from the date of acquisition, as we continue to evaluate the information necessary to complete the analysis.

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% Convertible Senior Notes due May 2025 (1)

% Senior Notes due January 2026

% Senior Notes due March 2026

% Senior Notes due January 2028

% Senior Notes due February 2028

% Senior Notes due August 2030

% Senior Notes due January 2031

(1) In June 2024, the Corporation redeemed in full all of the Convertible Senior Notes assumed from Pioneer for an amount consistent with the acquisition date fair value.

State and local governments and other entities in various jurisdictions across the United States and its territories have filed a number of legal proceedings against several oil and gas companies, including ExxonMobil, requesting unprecedented legal and equitable relief for various alleged injuries purportedly connected to climate change. These lawsuits assert a variety of novel, untested claims under statutory and common law. Additional such lawsuits may be filed. We believe the legal and factual theories set forth in these proceedings are meritless and represent an inappropriate attempt to use the court system to usurp the proper role of policymakers in addressing the societal challenges of climate change.

Local governments in Louisiana have filed unprecedented legal proceedings against a number of oil and gas companies, including ExxonMobil, requesting compensation for the restoration of coastal marsh erosion in the state. We believe the factual and legal theories set forth in these proceedings are meritless.

While the outcome of any litigation can be unpredictable, we believe the likelihood is remote that the ultimate outcomes of these lawsuits will have a material adverse effect on the Corporation’s operations, financial condition, or financial statements taken as a whole. We will continue to defend vigorously against these claims.

Other Contingencies

The Corporation and certain of its consolidated subsidiaries were contingently liable at March 31, 2025, for guarantees relating to notes, loans and performance under contracts. Where guarantees for environmental remediation and other similar matters do not include a stated cap, the amounts reflect management’s estimate of the maximum potential exposure. Where it is not possible to make a reasonable estimation of the maximum potential amount of future payments, future performance is expected to be either immaterial or have only a remote chance of occurrence.

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Other Total

(1) ExxonMobil share.

Additionally, the Corporation and its affiliates have numerous long-term sales and purchase commitments in their various business activities, all of which are expected to be fulfilled with no adverse consequences material to the Corporation’s operations or financial condition.

) ()

Current period change excluding amounts reclassified from accumulated other comprehensive income (2)

()()()Amounts reclassified from accumulated other comprehensive income Total change in accumulated other comprehensive income()()()Balance as of March 31, 2024() ()Balance as of December 31, 2024() ()

Current period change excluding amounts reclassified from accumulated other comprehensive income (2)

() Amounts reclassified from accumulated other comprehensive income Total change in accumulated other comprehensive income () Balance as of March 31, 2025() ()

(2) Cumulative Foreign Exchange Translation Adjustment includes net investment hedge gain/(loss) net of taxes of $() million and $ million in 2025 and 2024, respectively.

)()

()Postretirement benefits reserves adjustment (excluding amortization) Amortization and settlement of postretirement benefits reserves adjustment included in net periodic benefit costs()()Total ()

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Weighted-average number of common shares outstanding (millions of shares) (1)

Earnings (loss) per common share (dollars) (2)

Dividends paid per common share (dollars)

(1) Includes restricted shares not vested.

(2) Earnings (loss) per common share and earnings (loss) per common share – assuming dilution are the same in each period shown.

Interest cost Expected return on plan assets()()Amortization of actuarial loss/(gain) Amortization of prior service cost()()Net pension enhancement and curtailment/settlement cost Net benefit cost Pension Benefits - Non-U.S.Service cost Interest cost Expected return on plan assets()()Amortization of actuarial loss/(gain) Amortization of prior service cost Net benefit cost Other Postretirement BenefitsService cost Interest cost Expected return on plan assets()()Amortization of actuarial loss/(gain)()()Amortization of prior service cost()()Net benefit cost

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— ()()—

Advances to/receivables from equity companies (2)(6)

— — —

Other long-term financial assets (3)

— — — Liabilities

Derivative liabilities (4)

— ()()—

Long-term debt (5)

— — —

Long-term obligations to equity companies (6)

— — — — ()

Other long-term financial liabilities (7)

— — — —

December 31, 2024

Fair Value

(millions of dollars)

Level 1

Level 2

Level 3

Total Gross Assets
& Liabilities

Effect of
Counterparty Netting

Effect of
Collateral
Netting

Difference in Carrying Value and Fair Value

Net
Carrying
Value

Assets

Derivative assets (1)

—

()

—

Advances to/receivables from equity companies (2)(6)

—

Other long-term financial assets (3)

—

Liabilities

Derivative liabilities (4)

—

()

—

Long-term debt (5)

—

Long-term obligations to equity companies (6)

—

()

Other long-term financial liabilities (7)

—


(1) Included in the Balance Sheet lines: Notes and accounts receivable - net and Other assets, including intangibles - net.
(2) Included in the Balance Sheet line: Investments, advances and long-term receivables.
(3) Included in the Balance Sheet lines: Investments, advances and long-term receivables and Other assets, including intangibles - net.
(4) Included in the Balance Sheet lines: Accounts payable and accrued liabilities and Other long-term obligations.
(5) Excluding finance lease obligations.
(6) Advances to/receivables from equity companies and long-term obligations to equity companies are mainly designated as hierarchy level 3 inputs. The fair value is calculated by discounting the remaining obligations by a rate consistent with the credit quality and industry of the equity company.
(7) Included in the Balance Sheet line: Other long-term obligations. Includes contingent consideration related to a prior year acquisition where fair value is based on expected drilling activities and discount rates.

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million and $ million of collateral under master netting arrangements not offset against the derivatives on the Condensed Consolidated Balance Sheet, primarily related to initial margin requirements.

As of March 31, 2025, the Corporation has designated $ billion of its Euro-denominated debt and related accrued interest as a net investment hedge of its European business. The net investment hedge is deemed to be perfectly effective.

The Corporation had undrawn short-term committed lines of credit of $ billion and undrawn long-term committed lines of credit of $ billion as of the end of first quarter 2025.

Derivative Instruments

The Corporation’s size, strong capital structure, geographic diversity, and the complementary nature of its business segments reduce the Corporation’s enterprise-wide risk from changes in commodity prices, currency rates and interest rates. In addition, the Corporation uses commodity-based contracts, including derivatives, to manage commodity price risk and to generate returns from trading. Commodity contracts held for trading purposes are presented in the Condensed Consolidated Statement of Income on a net basis in the line “Sales and other operating revenue" and in the Consolidated Statement of Cash Flows in “Cash Flows from Operating Activities”. The Corporation’s commodity derivatives are not accounted for under hedge accounting. At times, the Corporation also enters into currency and interest rate derivatives, none of which are material to the Corporation’s financial position as of March 31, 2025 and December 31, 2024, or results of operations for the periods ended March 31, 2025 and 2024.

The Corporation operates a program to hedge certain of its fixed-rate debt instruments against changes in fair value due to changes in the designated benchmark interest rate. This program utilizes fair value hedge accounting. The derivative (hedging) instruments are fixed-for-floating interest rate swaps, with settlement dates that correspond to the interest payments associated with the fixed-rate debt (hedged item). Changes in the fair values of the hedging instruments are perfectly offset by changes in the fair values of the hedged items; the effects of these changes in fair values are recorded in "Interest expense" in the Consolidated Statement of Income. This program was not material to the Consolidated Financial Statements as of the end of first quarter 2025.

Credit risk associated with the Corporation’s derivative position is mitigated by several factors, including the use of derivative clearing exchanges and the quality of and financial limits placed on derivative counterparties. The Corporation maintains a system of controls that includes the authorization, reporting, and monitoring of derivative activity.

Petroleum products (barrels)()()Natural gas (MMBTUs)()() ()Crude oil and product purchases Total ()

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Income from equity affiliates () Intersegment revenue Other income() () Segment revenues and other income Costs and other itemsCrude oil and product purchases

Operating expenses, excl. depreciation and depletion (1)

Depreciation and depletion (includes impairments) Interest expense Other taxes and duties Total costs and other deductions

Segment income (loss) before income taxes

Income tax expense (benefit) () Segment net income (loss) incl. noncontrolling interests Net income (loss) attributable to noncontrolling interests Segment income (loss)

Reconciliation of consolidated revenues

Segment revenues and other income

Other revenues (2)

Elimination of intersegment revenues()Total consolidated revenues and other income Reconciliation of income (loss) attributable to ExxonMobilTotal segment income (loss) Corporate and Financing income (loss)()Net income (loss) attributable to ExxonMobil (millions of dollars)UpstreamEnergy ProductsChemical ProductsSpecialty ProductsSegment TotalU.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.U.S.Non-U.S.Three Months Ended March 31, 2025

Additions to property, plant and equipment (3)

As of March 31, 2025Investments in equity companies Total assets Reconciliation to Corporate TotalSegment TotalCorporate and FinancingCorporate TotalThree Months Ended March 31, 2025

Additions to property, plant and equipment (3)

As of March 31, 2025Investments in equity companies () Total assets

(1) Operating expenses, excl. depreciation and depletion includes the following GAAP line items, as reflected on the Income Statement: Production and manufacturing expenses; Selling, general and administrative expenses; Exploration expenses, including dry holes; and Non-service pension and postretirement benefit expense.

(2) Primarily Corporate and Financing Interest revenue of $ million.

(3) Includes non-cash additions.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

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Income from equity affiliates() () Intersegment revenue Other income() Segment revenues and other income Costs and other itemsCrude oil and product purchases

Operating expenses, excl. depreciation and depletion (1)

Depreciation and depletion expense Interest expense Other taxes and duties Total costs and other deductions Segment income (loss) before income taxes Income tax expense (benefit) Segment net income (loss) incl. noncontrolling interests Net income (loss) attributable to noncontrolling interests Segment income (loss)

Reconciliation of consolidated revenues

Segment revenues and other income

Other revenues (2)

Additions to property, plant and equipment (3)

As of December 31, 2024Investments in equity companies Total assets Reconciliation to Corporate TotalSegment TotalCorporate and FinancingCorporate TotalThree Months Ended March 31, 2024

Additions to property, plant and equipment (3)

As of December 31, 2024Investments in equity companies () Total assets

(2) Primarily Corporate and Financing Interest revenue of $ million.

(3) Includes non-cash additions.

Due to rounding, numbers presented may not add up precisely to the totals indicated.

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Revenue outside the scope of ASC 606 Total

Non-U.S. Total

Significant Non-U.S. revenue sources include: (1)

Canada United Kingdom Singapore

(1) Revenue is determined by primary country of operations. Excludes certain sales and other operating revenues in non-U.S. operations where attribution to a specific country is not practicable.

billion and net after-tax earnings of approximately $ billion from its divestment activities. This included the sale of select conventional assets in Texas and New Mexico, Mobil Argentina S.A., as well as other smaller divestments.

In 2024, the Corporation realized proceeds of approximately $ billion and recognized net after-tax earnings of approximately $ billion from its divestment activities. This included the sale of the Santa Ynez Unit and associated facilities in California, Mobil Producing Nigeria Unlimited, ExxonMobil Exploration Argentina, the Fos-sur-Mer Refinery (France), the Adriatic LNG terminal (Italy), and certain conventional and unconventional assets in the United States, as well as other smaller divestments.

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ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Overview

During the first quarter of 2025, the price of crude oil remained roughly flat relative to fourth quarter 2024 and near the middle of the 10-year historical range (2010-2019). Natural gas prices improved during the quarter and moved above the 10-year range on stronger global demand, driven by colder weather in the U.S. and Europe. Global industry refining margins declined and moved below the low end of the 10-year range, driven by weakness in Asia Pacific from capacity additions and higher regional feed costs. The Corporation benefited from its relatively large refining footprint in North America where industry margins improved as a result of turnarounds and industry outages. Chemical margins remained at bottom of cycle conditions, and well below the 10-year range, as growing demand was met by continued capacity additions.

During 2025, the U.S. announced a variety of trade-related actions, including the imposition of tariffs on imports from several countries. In response, many countries announced their own retaliatory tariffs. Certain tariffs were paused for a period of time but have not been withdrawn. The global trade environment continues to be volatile. The likelihood of the U.S. or its trading partners resuming tariffs, imposing new or reciprocal tariffs, export restrictions, or other forms of trade-related sanctions is highly uncertain. Additionally, significant uncertainty exists as to what effects these actions will ultimately have on the Corporation, our suppliers and our customers, as well as on the overall macroeconomic environment. We continually monitor the global trade environment and work to mitigate potential impacts.

Selected Earnings Driver Definitions

The earnings drivers provide additional visibility into our business results. The Company evaluates these drivers periodically to determine if any enhancements may provide helpful insights to the market. Listed below are descriptions of the earnings drivers:

Advantaged Volume Growth. Represents earnings impacts from change in volume/mix from advantaged assets, advantaged projects, and high-value products.

•Advantaged Assets (Advantaged growth projects). Includes Permian, Guyana, and LNG.

•Advantaged Projects. Includes capital projects and programs of work that contribute to Energy, Chemical, and/or Specialty Products segments that drive integration of segments/businesses, increase yield of higher value products, or deliver higher than average returns.

•High-Value Products. Includes performance products and lower-emission fuels. Performance products (performance chemicals, performance lubricants) refers to products that provide differentiated performance for multiple applications through enhanced properties versus commodity alternatives and bring significant additional value to customers and end-users. Lower-emission fuels refers to fuels with lower life cycle emissions than conventional transportation fuels for gasoline, diesel and jet transport.

Base Volume. Represents all volume/mix drivers not included in Advantaged Volume Growth defined above.

Structural Cost Savings. Represents after-tax earnings effects of Structural Cost Savings as defined on page 19, including cash operating expenses related to divestments.

Expenses. Represents all expenses otherwise not included in other earnings drivers.

Timing Effects. Represents timing effects that are primarily related to unsettled derivatives (mark-to-market) and other earnings impacts driven by timing differences between the settlement of derivatives and their offsetting physical commodity realizations (due to LIFO inventory accounting).

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Earnings (loss) excluding Identified Items (Non-GAAP)

Earnings (loss) excluding Identified Items are earnings (loss) excluding individually significant non-operational events with, typically, an absolute corporate total earnings impact of at least $250 million in a given quarter. The earnings (loss) impact of an Identified Item for an individual segment may be less than $250 million when the item impacts several segments or several periods. Earnings (loss) excluding Identified Items does include non-operational earnings events or impacts that are generally below the $250 million threshold utilized for Identified Items. Management uses these figures to improve comparability of the underlying business across multiple periods by isolating and removing significant non-operational events from business results. The Corporation believes this view provides investors increased transparency into business results and trends, and provides investors with a view of the business as seen through the eyes of management. Earnings (loss) excluding Identified Items is not meant to be viewed in isolation or as a substitute for net income (loss) attributable to ExxonMobil as prepared in accordance with U.S. GAAP.






























Three Months Ended March 31, 2025	Upstream		Energy Products		Chemical Products		Specialty Products		Corporate and Financing	Total
(millions of dollars)	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.
Earnings (loss) (U.S. GAAP)	1,870	4,886	297	530	255	18	322	333	(798)	7,713








Total Identified Items	—	—	—	—	—	—	—	—	—	—
Earnings (loss) excluding Identified Items (Non-GAAP)	1,870	4,886	297	530	255	18	322	333	(798)	7,713

Three Months Ended March 31, 2024	Upstream		Energy Products		Chemical Products		Specialty Products		Corporate and Financing	Total
(millions of dollars)	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.	U.S.	Non-U.S.
Earnings (loss) (U.S. GAAP)	1,054	4,606	836	540	504	281	404	357	(362)	8,220








Total Identified Items	—	—	—	—	—	—	—	—	—	—
Earnings (loss) excluding Identified Items (Non-GAAP)	1,054	4,606	836	540	504	281	404	357	(362)	8,220

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

Due to rounding, numbers presented may not add up precisely to the totals indicated.

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Structural Cost Savings (Non-GAAP)

Structural Cost Savings describes decreases in cash opex excluding energy and production taxes as a result of operational efficiencies, workforce reductions, divestment-related reductions, and other cost-savings measures that are expected to be sustainable compared to 2019 levels. Relative to 2019, estimated cumulative Structural Cost Savings totaled $12.7 billion, which included an additional $0.6 billion in the first three months of 2025. The total change between periods in expenses below will reflect both Structural Cost Savings and other changes in spend, including market factors, such as inflation and foreign exchange impacts, as well as changes in activity levels and costs associated with new operations, mergers and acquisitions, new business venture development, and early-stage projects. Structural Cost Savings from new operations, mergers and acquisitions, and new business venture developments are included in the cumulative Structural Cost Savings. Estimates of cumulative annual structural savings may be revised depending on whether cost reductions realized in prior periods are determined to be sustainable compared to 2019 levels. Structural Cost Savings are stewarded internally to support management's oversight of spending over time. This measure is useful for investors to understand the Corporation's efforts to optimize spending through disciplined expense management.


Dollars in billions (unless otherwise noted)	Twelve Months Ended December 31,		Three Months Ended March 31,
	2019	2024	2024	2025
Components of Operating Costs
From ExxonMobil’s Consolidated Statement of Income (U.S. GAAP)
Production and manufacturing expenses	36.8	39.6	9.1	10.1
Selling, general and administrative expenses	11.4	10.0	2.5	2.5
Depreciation and depletion (includes impairments)	19.0	23.4	4.8	5.7
Exploration expenses, including dry holes	1.3	0.8	0.1	0.1
Non-service pension and postretirement benefit expense	1.2	0.1	—	0.1
Subtotal	69.7	74.0	16.5	18.5
ExxonMobil’s share of equity company expenses (Non-GAAP)	9.1	9.6	2.4	2.6
Total Adjusted Operating Costs (Non-GAAP)	78.8	83.6	18.9	21.1

Total Adjusted Operating Costs (Non-GAAP)	78.8	83.6	18.9	21.1
Less:
Depreciation and depletion (includes impairments)	19.0	23.4	4.8	5.7
Non-service pension and postretirement benefit expense	1.2	0.1	—	0.1
Other adjustments (includes equity company depreciation and depletion)	3.6	3.7	0.9	1.3
Total Cash Operating Expenses (Cash Opex) (Non-GAAP)	55.0	56.4	13.2	14.1

Energy and production taxes (Non-GAAP)	11.0	13.9	3.4	3.9
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP)	44.0	42.5	9.8	10.2

		Change vs 2019		Change vs 2024	Estimated Cumulative vs 2019
Total Cash Operating Expenses (Cash Opex) excluding Energy and Production Taxes (Non-GAAP)		-1.5		+0.4

Market		+4.0		+0.0
Activity / Other		+6.6		+1.0
Structural Cost Savings		-12.1		-0.6	-12.7

Due to rounding, numbers presented may not add up precisely to the totals indicated.

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REVIEW OF FIRST QUARTER 2025 RESULTS

ExxonMobil’s first quarter 2025 earnings were $7.7 billion, compared to $8.2 billion a year earlier. The decrease in earnings was mainly driven by a significant decline in industry refining margins, weaker crude prices, lower base volumes from divestments, and higher expenses driven by growth initiatives, partly offset by increased volumes from advantaged Upstream investments in the Permian and Guyana, favorable timing effects from derivatives mark-to-market impacts and Structural Cost Savings. Cash capital expenditures were $5.9 billion, up $0.7 billion from first quarter 2024.

UPSTREAM


Upstream Financial Results

2025	2024
Earnings (loss) (U.S. GAAP)
United States	1,870	1,054
Non-U.S.	4,886	4,606
Total	6,756	5,660






Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States	1,870	1,054
Non-U.S.	4,886	4,606
Total	6,756	5,660

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Upstream First Quarter Earnings Driver Analysis

(millions of dollars)

Price – Price impacts decreased earnings by $450 million, driven by a decrease in liquids realizations, partly offset by an increase in natural gas realizations.

Advantaged Volume Growth – Higher volumes from advantaged assets increased earnings by $920 million, driven by growing production in Permian, including the Pioneer acquisition, and Guyana.

Base Volume – Base volumes from divestments decreased earnings by $180 million.

Structural Cost Savings – Increased earnings by $310 million.

Expenses – Higher expenses decreased earnings by $180 million from higher depreciation.

Other – All other items increased earnings by $400 million, mainly driven by divestments.

Timing Effects – Favorable timing effects, mainly from derivatives mark-to-market impacts, increased earnings by $280 million.

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Upstream Operational Results

	2025	2024
Net production of crude oil, natural gas liquids, bitumen and synthetic oil (thousands of barrels daily)
United States	1,418	816
Canada/Other Americas	760	772
Europe	4	4
Africa	137	224
Asia	796	711
Australia/Oceania	24	30
Worldwide	3,139	2,557

Net natural gas production available for sale (millions of cubic feet daily)
United States	3,266	2,241
Canada/Other Americas	42	94
Europe	331	377
Africa	118	150
Asia	3,457	3,274
Australia/Oceania	1,256	1,226
Worldwide	8,470	7,362


Oil-equivalent production (1) (thousands of oil-equivalent barrels daily)	4,551	3,784

(1) Natural gas is converted to an oil-equivalent basis at six million cubic feet per one thousand barrels.
Due to rounding, numbers presented may not add up precisely to the totals indicated.

1Q 2025

versus

1Q 2024

1Q 2025 production of 4.6 million oil-equivalent barrels per day increased 767 thousand oil-equivalent barrels per day from 1Q 2024, driven by the Pioneer acquisition.

Listed below are descriptions of ExxonMobil’s volumes reconciliation drivers which are provided to facilitate understanding of the terms.

Entitlements - Net Interest are changes to ExxonMobil’s share of production volumes caused by non-operational changes to volume-determining drivers. These drivers consist of net interest changes specified in Production Sharing Contracts (PSCs), which typically occur when cumulative investment returns or production volumes achieve defined thresholds, changes in equity upon achieving pay-out in partner investment carry situations, equity redeterminations as specified in venture agreements, or as a result of the termination or expiry of a concession. Once a net interest change has occurred, it typically will not be reversed by subsequent events, such as lower crude oil prices.

Entitlements - Price, Spend and Other are changes to ExxonMobil’s share of production volumes resulting from temporary changes to non-operational volume-determining drivers. These drivers include changes in oil and gas prices or spending levels from one period to another. According to the terms of contractual arrangements or government royalty regimes, price or spending variability can increase or decrease royalty burdens and/or volumes attributable to ExxonMobil. For example, at higher prices, fewer barrels are required for ExxonMobil to recover its costs. These effects generally vary from period to period with field spending patterns or market prices for oil and natural gas. Such drivers can also include other temporary changes in net interest as dictated by specific provisions in production agreements.

Government Mandates are changes to ExxonMobil's sustainable production levels as a result of production limits or sanctions imposed by governments.

Divestments are reductions in ExxonMobil’s production arising from commercial arrangements to fully or partially reduce equity in a field or asset in exchange for financial or other economic consideration.

Growth and Other comprise all other operational and non-operational drivers not covered by the above definitions that may affect volumes attributable to ExxonMobil. Such drivers include, but are not limited to, production enhancements from project and work program activities, acquisitions including additions from asset exchanges, downtime, market demand, natural field decline, and any fiscal or commercial terms that do not affect entitlements.

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ENERGY PRODUCTS


Energy Products Financial Results

2025	2024
Earnings (loss) (U.S. GAAP)
United States	297	836
Non-U.S.	530	540
Total	827	1,376






Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States	297	836
Non-U.S.	530	540
Total	827	1,376

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Energy Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Industry refining margins decreased earnings by $1,290 million, normalizing from historically high levels.

Advantaged Volume Growth – Higher volumes from advantaged projects increased earnings by $10 million.

Base Volume – Lower base volumes decreased earnings by $70 million.

Structural Cost Savings – Increased earnings by $110 million.

Expenses – Lower expenses increased earnings by $60 million.

Other – All other items increased earnings by $200 million, reflecting favorable forex and inventory impacts.

Timing Effects – Favorable timing effects, mainly from the absence of prior year unfavorable derivatives mark-to-market impacts, increased earnings by $430 million.

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Energy Products Operational Results

2025	2024
Refinery throughput
United States	1,789	1,900
Canada	397	407
Europe	986	954
Asia Pacific	447	402
Other	191	180
Worldwide	3,810	3,843

Energy Products sales (1)
United States	2,728	2,576
Non-U.S.	2,555	2,656
Worldwide	5,283	5,232

Gasoline, naphthas	2,162	2,178
Heating oils, kerosene, diesel	1,724	1,742
Aviation fuels	366	339
Heavy fuels	158	214
Other energy products	873	759
Worldwide	5,283	5,232

(1) Data reported net of purchases/sales contracts with the same counterparty.
Due to rounding, numbers presented may not add up precisely to the totals indicated.

CHEMICAL PRODUCTS


Chemical Products Financial Results

2025	2024
Earnings (loss) (U.S. GAAP)
United States	255	504
Non-U.S.	18	281
Total	273	785






Earnings (loss) excluding Identified Items (2) (Non-GAAP)
United States	255	504
Non-U.S.	18	281
Total	273	785

(2) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

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Chemical Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Weaker margins decreased earnings by $290 million, driven by higher feed costs in North America.

Advantaged Volume Growth – High-value product sales growth increased earnings by $10 million.

Base Volume – Lower base volumes decreased earnings by $70 million, driven by absence of prior year opportunistic sales.

Structural Cost Savings – Increased earnings by $30 million.

Expenses – Higher spend on advantaged projects and turnaround activity decreased earnings by $130 million.

Other – All other items decreased earnings by $60 million.


Chemical Products Operational Results

2025	2024
Chemical Products sales (1)
United States	1,706	1,847
Non-U.S.	3,070	3,207
Worldwide	4,776	5,054

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

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SPECIALTY PRODUCTS


Specialty Products Financial Results

(millions of dollars)	Three Months Ended March 31,
	2025	2024
Earnings (loss) (U.S. GAAP)
United States	322	404
Non-U.S.	333	357
Total	655	761






Earnings (loss) excluding Identified Items (1) (Non-GAAP)
United States	322	404
Non-U.S.	333	357
Total	655	761

(1) Refer to page 18 for definition of Identified Items and earnings (loss) excluding Identified Items.

Specialty Products First Quarter Earnings Driver Analysis

(millions of dollars)

Margin – Stronger margins increased earnings by $10 million.

Advantaged Volume – Earnings remained flat.

Base Volume – Lower base volumes decreased earnings by $30 million.

Structural Cost Savings – Increased earnings by $40 million.

Expenses – Higher expenses mainly related to new product development costs, decreased earnings by $70 million.

Other – All other items decreased earnings by $60 million, mainly driven by unfavorable forex effects.

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Specialty Products Operational Results

2025	2024
Specialty Products sales (1)
United States	473	495
Non-U.S.	1,463	1,464
Worldwide	1,936	1,959

Due to rounding, numbers presented may not add up precisely to the totals indicated.

CORPORATE AND FINANCING


Corporate and Financing Financial Results

2025	2024
Earnings (loss) (U.S. GAAP)	(798)	(362)

Earnings (loss) excluding Identified Items (2) (Non-GAAP)	(798)	(362)

Because of the ongoing nature of our asset management and divestment program, we believe it is useful for investors to consider proceeds associated with asset sales together with cash provided by operating activities when evaluating cash available for investment in the business and financing activities, including shareholder distributions.

Cash flow from operations and asset sales in the first quarter of 2025 was $14.8 billion, a decrease of $0.6 billion from the comparable 2024 period primarily due to unfavorable working capital.

Cash provided by operating activities totaled $13.0 billion for the first three months of 2025, $1.7 billion lower than 2024. Net income including noncontrolling interests was $8.0 billion, a decrease of $0.5 billion from the prior year period. The adjustment for the noncash provision of $5.7 billion for depreciation and depletion was up $0.9 billion from 2024. Changes in operational working capital were a reduction of $0.9 billion during the period. All other items net increased cash flows by $96 million in 2025 versus a decrease of $0.7 billion in 2024. See the Condensed Consolidated Statement of Cash Flows for additional details.

Investing activities for the first three months of 2025 used net cash of $4.1 billion, a decrease of $0.4 billion compared to the prior year. Spending for additions to property, plant and equipment of $5.9 billion was $0.8 billion higher than 2024. Proceeds from asset sales were $1.8 billion, an increase of $1.1 billion compared to the prior year. Net investments and advances decreased $0.1 billion from $0.2 billion in 2024.

Net cash used in financing activities was $13.6 billion in the first three months of 2025, including $4.8 billion for the purchase of 43.4 million shares of ExxonMobil stock, as part of the previously announced buyback program. This compares to net cash used in financing activities of $8.0 billion in the prior year. Total debt at the end of the first quarter of 2025 was $37.6 billion compared to $41.7 billion at year-end 2024. The Corporation's debt to total capital ratio was 12.2 percent at the end of the first quarter of 2025 compared to 13.4 percent at year-end 2024. The net debt to capital ratio (1) was 7.1 percent at the end of the first quarter, an increase of 0.6 percentage points from year-end 2024. The Corporation's capital allocation priorities are investing in competitively advantaged, high-return projects; maintaining a strong balance sheet; and sharing our success with our shareholders through more consistent share repurchases and a growing dividend. The Corporation distributed a total of $4.3 billion to shareholders in the first three months of 2025 through dividends.

The Corporation has access to significant capacity of long-term and short-term liquidity. Internally generated funds are expected to cover the majority of financial requirements, supplemented by long-term and short-term debt. The Corporation had undrawn short-term committed lines of credit of $0.2 billion and undrawn long-term committed lines of credit of $1.0 billion as of the end of first quarter 2025.

The Corporation, as part of its ongoing asset management program, continues to evaluate its mix of assets for potential upgrade. Because of the ongoing nature of this program, dispositions will continue to be made from time to time which will result in either gains or losses. Additionally, the Corporation continues to evaluate opportunities to enhance its business portfolio through acquisitions of assets or companies, and enters into such transactions from time to time. Key criteria for evaluating acquisitions include strategic fit, cost synergies, potential for future growth, low cost of supply, and attractive valuations. Acquisitions may be made with cash, shares of the Corporation’s common stock, or both.

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

(1) Net debt is total debt of $37.6 billion less $17.0 billion of cash and cash equivalents excluding restricted cash . Net debt to capital ratio is net debt divided by net debt plus total equity of $269.8 billion. Total debt is the sum of notes and loans payable and long-term debt, as reported in the consolidated balance sheet.

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TAXES


2025	2024
Income taxes	3,567		3,803
Effective income tax rate	34	%	36	%
Total other taxes and duties (1)	7,066		7,160
Total	10,633		10,963

(1) Includes “Other taxes and duties” plus taxes that are included in “Production and manufacturing expenses” and “Selling, general and administrative expenses”, each from the Consolidated Statement of Income.

Total taxes were $10.6 billion for the first quarter of 2025, a decrease of $0.3 billion from 2024. Income tax expense was $3.6 billion compared to $3.8 billion in the prior year. The effective income tax rate, which is calculated based on consolidated company income taxes and ExxonMobil's share of equity company income taxes, was 34 percent. This decreased from the 36 percent rate in the prior year period due primarily to a change in mix of results in jurisdictions with varying tax rates. Total other taxes and duties decreased by $0.1 billion to $7.1 billion.

CASH CAPITAL EXPENDITURES (Non-GAAP)

Cash capital expenditures (Cash Capex) is the sum of Additions to property, plant and equipment; Additional investments and advances; and Other investing activities including collection of advances; reduced by Inflows from noncontrolling interests for major projects, each from the Consolidated Statement of Cash Flows. This measure is useful for investors to understand the current period cash impact of investments in the business.


2025	2024
Additions to property, plant and equipment	5,898	5,074
Additional investments and advances	153	421
Other investing activities including collection of advances	(93)	(215)
Inflows from noncontrolling interests for major projects	(22)	(12)
Total Cash Capex (Non-GAAP)	5,936	5,268

Cash capex in the first quarter of 2025 was $5.9 billion, up $0.7 billion from the first quarter of 2024.


2025	2024
Upstream	4,993	4,105
Energy Products	378	517
Chemical Products	291	340
Specialty Products	110	80
Other	164	226
Total Cash Capex (Non-GAAP)	5,936	5,268

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.


	EXXON MOBIL CORPORATION
Date: May 5, 2025	By:	/s/ LEN M. FOX
		Len M. Fox
		Vice President, Controller and Tax (Principal Accounting Officer)

EXXON MOBIL CORP - Quarter Report: 2025 March (Form 10-Q)

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