Exxon Mobil Corporation

Good morning, everyone. Welcome to ExxonMobil's fourth quarter 2025 earnings call. Today's call is being recorded. We appreciate you joining us. I'm Jim Chapman, Vice President, Treasurer, and Investor Relations. This quarter's presentation and prerecorded remarks are available on the Investors section of our website. They are meant to accompany the fourth quarter earnings press release, which is posted in the same location. 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 two. You can find more information on the risks and uncertainties that apply to any forward-looking statements in our SEC filings on our website. 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 Darren for opening remarks.

Good morning, and thank you for joining us. In 2018, we set out to transform ExxonMobil to fully leverage our unique competitive advantages. Results we share today demonstrate the significant progress we've made. We've built a higher return, lower cost, technology-led company, one that delivers superior results across market cycles. Our strategy, our advantages, and the structural value we're creating puts us in a league of our own. 2025 was a year of exceptional execution and technology-driven differentiation. We continue to deliver strong safety and reliability performance, reflecting the commitment and operating discipline of our workforce. We've already achieved our 2030 emission reduction plans for GHG emissions and flaring intensity. As of 2025, we've reduced our corporate GHG intensity by more than 20%, reduced upstream GHG intensity by more than 40%, and reduced corporate flaring intensity by more than 60%. We expect to reach our 2030 methane intensity reductions by the end of this year. Upstream production averaged 4.7 million oil equivalent barrels per day, with unit earnings more than double those in 2019 on a constant price basis. We successfully delivered all 10 key 2025 projects, further strengthening our portfolio and positioning us for long-term profitable growth. and we continue to high-grade the portfolio by maintaining our disciplined approach. That approach, the same as it's been since we rolled out our strategy, increases investments in an advantaged portfolio, divests non-strategic assets, and significantly lowers cost. Bottom line, we're improving our mix and structurally reshaping the business. The results are clear. Industry-leading earnings power, stronger cash flow potential, and more profitable barrels and products. In the upstream, production from Advantage assets, including the Permian, Guyana, and LNG, continues to grow. These assets have lower cost of supply, lower emissions intensity, and higher returns. We expect them to make up roughly 65% of total production by 2030. In product solutions, we're strengthening the portfolio with Advantage project startups and high-value product growth. transforming lower value molecules into higher value products. These projects are expected to drive meaningful earnings growth through 2030, with 60% coming from assets already online. We're delivering consistent, rateable, organic growth. anchored by our advantage assets and projects that are expanding earnings power over time. Our fourth quarter and full year 2025 financial results reaffirm that our transformation is driving improved earnings power across a broad range of metrics. Over the past five years, our annualized shareholder return of 29% has led the industry supported by $150 billion of distributions to shareholders during that period. Earnings, cash flow, and return on capital employed remain among the strongest in the sector, with higher upstream earnings per barrel and structurally higher returns. We continue to increase our structural cost savings in 2025, significantly outpacing competitors. In fact, our captured savings is greater than all other IOC savings combined over the same period. These improvements continue to deliver industry-leading earnings and cash flow, even in periods of lower commodity prices. Our industry-leading balance sheet, structurally lower break-evens, and level of short cycle investments give us unmatched flexibility through the cycle. During the year, we completed $20 billion in share repurchases, retiring shares equivalent to one-third of those issued during the Pioneer transaction, significantly reducing dilutive impacts of the acquisition. Let me turn to two of our most advantaged growth engines, Guyana and the Permian, which both continue to set records. In Guyana, we continue to deliver results never before seen in our industry and have set new standards for operational excellence. Our most recent project, Yellowtail, came online ahead of schedule, raising gross production in the fourth quarter to roughly 875,000 barrels per day. Altogether, our first four FPSOs are now producing 100,000 barrels a day above the investment basis. reflecting operational performance to date and the value of this advantaged asset. turning to the permian we delivered a new production record in the fourth quarter 1.8 million oil equivalent barrels per day driving the highest annual company production in over 40 years at 4.7 million oil equivalent barrels per day technology deployment continues to be our primary focus with lightweight profit deployed during 2025 in roughly 25 percent of wells we expect that number to reach 50 percent of new wells by the end of this year with more than 40 stackable technologies in various stages of testing and deployment We expect to continue growing production at lower capital costs far into the future. Simply put, there is no near-term peak Permian for us. Our growth trajectory remains robust, and we expect to exceed 2.5 million oil equivalent barrels a day beyond 2030. The role of technology in growing value can be seen across all of our businesses. For instance, Proxima Systems continues to scale. We've more than tripled capacity this year, with growing opportunities across rebar, coatings, automotive, and oil and gas applications. Our Proxima-based rebar delivers a 40% improvement in installation efficiency versus steel. and deliver superior strength, lightness, and corrosion resistance. We recently leveraged Proxima-based rebar to build the foundation for a new overpass at our curl site after our technology team in India worked with our upstream team to qualify it in a heavy industrial application. In carbon materials, our advanced battery anode graphite program is showing exceptional performance, delivering 30% faster charging, up to 30% higher available capacity, and up to four times the battery life. In Singapore, our residual upgrade project demonstrated full capacity performance, validating proprietary catalyst technology to convert low-value fuel oil into higher-value lubricants and diesel. Our carbon capture network continues to advance. We made progress on the ROSE permit, brought our first third-party CCS project online, capable of storing up to 2 million tons per year, and secured our seventh CCS contract. Taken together, these projects represent approximately 9 million tons per year of sequestered CO2. As you've heard me say before, execution excellence remains a hallmark of ExxonMobil. We commence startup activities for all 10 key projects meeting our 2025 goal. These included Golden Pass LNG and the Proxima Systems expansion. This was a record year for us in project startups, and each will play an important role in further strengthening our global portfolio and supporting long-term shareholder value. On average, our global projects organization executes about three times as many megaprojects as the nearest competitor. They do this at up to 20% lower cost and 20% faster delivery schedules than the industry average. This is a testament to our disciplined approach and organizational expertise. Our transformed company will continue to build on this success in 2026 with higher structural earnings power, stronger mix, lower break-evens, and a portfolio designed to perform across commodity cycles. Our strategy is working, and the benefits are evident in operating performance. cash generation, and shareholder returns. We're capturing more value from every barrel and molecule we produce and building growth platforms with scale. We're focused on high-margin technology-differentiated markets where our integration, process expertise, and global footprint give us a durable, material competitive advantage. Our capital priorities remain consistent and disciplined. Invest in competitively advantaged opportunities, maintain financial strength, and return surplus cash to shareholders. We're maintaining a measured pace of share repurchases subject to reasonable market conditions while preserving flexibility to invest through the cycle. Underpinning all of this is a new enterprise-wide process and data platform that is changing how the company operates with redesigned end-to-end processes and connected data, transactions, and decision-making across every business, geography, and function. It will enable us to learn and act faster and better leverage our scale, accelerate the adoption of artificial intelligence, and integrate new solutions. It's already delivering results with much more to come. 2025 again demonstrated that the advantages we've built, the capabilities we've developed, and the performance we're delivering is creating industry-leading value for our shareholders today and far into the future.

Thank you, Darren. Before we move to Q&A, I have a few quick announcements to share. First, on February 2nd, we're launching a new individual investor-oriented page, which can be found within the main investor section of the ExxonMobil website. Our individual investors make up nearly 40% of our shareholder base, and this new site caters directly to their needs. And then on February 20th, we'll be releasing a refreshed version of our company overview presentation, Both of these can be found on the investor section of our website, and we encourage you to take a look. With that, we'll move to our Q&A session. Please note that we ask each analyst to limit themselves to one question as a courtesy to others. And operator, please open the line for our first question.